Datalogic

Annual Report • Apr 2, 2025

Consolidated Annual Financial Report at December 31, 2024

2023

Consolidated Annual Financial Report at December 31, 2024

DATALOGIC GROUP 1

TABLE OF CONTENTS

GROUP STRUCTURE	3
COMPOSITION OF CORPORATE BODIES	4
REPORT ON OPERATIONS	5
Consolidated Sustainability Report
CONSOLIDATED FINANCIAL STATEMENTS	78
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Changes in Equity

EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENTS 88

Information on the Statement of Financial Position

Information on the Income Statement

ANNEXES

• Certification by the Manager responsible for the preparation of the Company's financial reports
• Certification of sustainability reporting
• Consolidation scope
• Reconciliation of Alternative Performance Measures
• Restatement 2023

DISCLAIMER

This document contains forward-looking statements relating to future events and operating, income and financial results of the Group. These forecasts have by nature an element of risk and uncertainty, as they depend on the materialisation of future events and developments. Actual results may differ even significantly from those disclosed due to a variety of factors, most of which beyond the Group's control.

The accompanying consolidated financial statements of DATALOGIC Group constitute a non-official version which has not been prepared in accordance with the provisions of the Commission Delegated Regulation (EU) 2019/815

Board of Directors (1)

Romano Volta Executive Chairman (2) Valentina Volta Chief Executive Officer (2) Angelo Manaresi Independent Director Chiara Giovannucci Orlandi Independent Director Filippo Maria Volta Non-Executive Director Vera Negri Zamagni Independent Director Valentina Beatrice Manfredi Independent Director

Board of Statutory Auditors (3)

Diana Rizzo Chair Elena Lancellotti Standing Auditor Roberto Santagostino Standing Auditor

Giulia De Martino Alternate Auditor Eugenio Burani Alternate Auditor

Patrizia Cornale Alternate Auditor

Control, Risk, Remuneration, Appointments and Sustainability Committee

Angelo Manaresi Chairman Chiara Giovannucci Orlandi Independent Director Vera Negri Zamagni Independent Director

Independent Auditors (4)

Deloitte & Touche S.p.A.

(1) The Board of Directors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2026.

(2) Legal representative before third parties.

• (3) The Board of Statutory Auditors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2024.
• (4) Deloitte & Touche S.p.A. were appointed Independent Auditors for the nine-year period from 2019 to 2027 by the Shareholders' Meeting held on April 30, 2019 and will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2027.

on Operations

Report

Consolidated Annual Financial Report at December 31, 2024

Report on Operations

DATALOGIC GROUP 5

REPORT ON OPERATIONS

INTRODUCTION

This Consolidated Annual Financial Report at December 31, 2024 was prepared in accordance with Article 154-ter of the TUF (Consolidated Law on Finance) and was drawn up in compliance with the International Accounting Standards (IAS/IFRS) adopted by the European Union.

The amounts shown in the tables of the Report on Operations are expressed in Euro thousands, while the explanatory notes are expressed in Euro millions.

GROUP PROFILE

Datalogic S.p.A. and its subsidiaries ("Group" or "Datalogic Group") is a global technological leader in the automatic data capture and process automation markets. The Group is specialised in the design and production of barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID. Its pioneering solutions help increase the efficiency and quality of processes along the entire value chain in the Retail, Manufacturing, Transportation & Logistics and Healthcare segments.

HIGHLIGHTS FOR THE YEAR

The following table summarises Datalogic Group's key operating and financial results at December 31, 2024 and the comparison versus the prior year.

The income statement figures at December 31, 2023 have been restated, under IFRS 5, following the transfer of control of Informatics Holdings, Inc. and the resulting reclassification of its operating results as results from discontinued operations and, under IAS 1, following the reclassification of certain commercial costs as a reduction of revenue (details are found in Annex 3 of this document):

	31.12.2024	% on	31.12.2023	% on	Change	% chg.	% chg.
		Revenue	Restated	Revenue			net FX
Revenue	493,767	100.0%	518,693	100.0%	(24,926)	-4.8%	-4.6%
Adjusted EBITDA	44,516	9.0%	45,929	8.9%	(1,413)	-3.1%	-5.4%
Adjusted EBIT	10,895	2.2%	13,589	2.6%	(2,694)	-19.8%	-28.0%
EBIT	2,895	0.6%	6,320	1.2%	(3,425)	-54.2%	-71.8%
Profit/(Loss) for the year	13,722	2.8%	9,486	1.8%	4,236	44.7%	32.9%
Net financial position (NFP)	(9,516)		(35,321)		25,805

The Group ended 2024 achieving Revenue from sales of €493.8 million, down by 4.8% (-4.6% net FX) versus €518.7 million recorded in 2023.

Sales from new products (Vitality Index) in 2024 accounted for 19.7% of revenue (33.9% in fourth quarter 2024), up from 7.4% recorded in 2023.

Adjusted EBITDA came to €44.5 million versus €45.9 million in the prior year, with EBITDA as a percentage of sales increasing slightly to 9.0% (8.9% in 2023), despite declining sales, thanks to productivity improvements and tight control of operating costs.

Adjusted EBIT came to €10.9 million (€13.6 million in 2023).

Net profit for the year amounted to €13.7 million, or 2.8% of revenue (€9.5 million in 2023, or 1.8% of revenue).

Net Financial Debt at December 31, 2024 stood at €9.5 million, an improvement of €25.8 million versus December 31, 2023.

REVENUE PERFORMANCE

The breakdown by geographical area of Group revenue for the year, compared with the prior year, is shown in the table below:

	31.12.2024	%	31.12.2023	%	Change	% chg.	% chg.
			Restated				net FX
Italy	45,172	9.1%	53,586	10.3%	(8,414)	-15.7%	-15.7%
EMEAI (excluding Italy)	226,768	45.9%	236,780	45.6%	(10,012)	-4.2%	-4.3%
Total EMEAI	271,940	55.1%	290,367	56.0%	(18,427)	-6.3%	-6.4%
Americas	164,992	33.4%	160,792	31.0%	4,201	2.6%	2.5%
APAC	56,835	11.5%	67,535	13.0%	(10,700)	-15.8%	-14.1%
Total revenue	493,767	100.0%	518,693	100.0%	(24,926)	-4.8%	-4.6%

Americas was up 2.6%. EMEAI was down 6.3% over the year, with Italy down 15.7%. APAC experienced a steeper decline (-15.8%, -14.1% net FX) versus the prior year.

To better align with its strategic goals and prioritise product and solution offerings, the Group identifies two Market Segments, which feature distinct sales models, customers with varying purchasing needs, and different stakeholders: Data Capture and Industrial Automation.

The following is a breakdown of Group revenue split up by these market segments:

	31.12.2024	%	31.12.2023	%	Change	% chg.	% chg.
			Restated				net FX
Data Capture	331,569	67.2%	318,637	61.4%	12,932	4.1%	4.2%
Industrial Automation	162,198	32.8%	200,056	38.6%	(37,858)	-18.9%	-18.7%
Total revenue	493,767	100.0%	518,693	100.0%	(24,926)	-4.8%	-4.6%

▪ Data Capture

The Data Capture segment, representing 67.2% of sales (61.4% at December 31, 2023), grew by 4.1% versus the prior year, driven particularly by the Americas (+14.4%) and APAC (+5.4%), with a decline in EMEAI (-3.1%).

▪ Industrial Automation

The Industrial Automation segment lost 18.9%, declining across all geographies, APAC in particular.

ALTERNATIVE PERFORMANCE MEASURES (NON-GAAP MEASURES)

Management uses certain performance measures, not identified as accounting measures under IFRS (NON-GAAP measures), to provide a clearer picture of the Group's performance. The measurement criterion applied by the Group might not be the same as the one adopted by other Groups and the measures might not be comparable with theirs. These performance measures, determined according to provisions set out by the Guidelines on performance measures, issued by ESMA/2015/1415 and adopted by CONSOB with Communication no. 92543 of 3 December 2015, refer only to the performance of the year related to this Consolidated Annual Financial Report and the comparison periods. The performance measures must be considered as supplementary and do not supersede the information provided under the IFRS standards. The main measures adopted are described below.

• Special Items (or Non-Recurring Costs): income items arising from non-recurring events or transactions, restructuring activities, business reorganisation, write-downs of fixed assets, ancillary expense from acquisitions of businesses or companies or their disposals, including amortisation resulting from the recognition of purchase price allocation, and any other event deemed by Management not to represent current business activity.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) or Gross Operating Margin: profit/(loss) for the year from continuing operations before depreciation and amortisation of tangible and intangible fixed assets and rights of use, financials (including foreign exchange income and expense) and income tax.
• Adjusted EBITDA or Gross Operating Margin: profit/(loss) for the year from continuing operations before depreciation and amortisation of tangible and intangible fixed assets and rights of use, financials (including foreign exchange income and expense), income tax and Special Items, as defined above.
• EBIT (Earnings Before Interest, Taxes) or Operating Result: profit/(loss) for the year from continuing operations before financials (including foreign exchange income and expense) and income tax.
• Adjusted EBIT or Operating Result: profit/(loss) for the year from continuing operations before financials (including foreign exchange income and expense), income tax and Special Items, as defined above.
• Net Trade Working Capital: the sum of Inventory and Trade Receivables, less Trade Payables.
• Net Working Capital: the sum of Net Trade Working Capital and Other Current Assets and Liabilities including Provisions for Current Risks and Charges.
• Net Invested Capital: the total of Current and Non-Current Assets, excluding financial assets, less Current and Non-Current Liabilities, excluding financial liabilities.
• NFP (Net Financial Position or Net Financial Debt): calculated in accordance with the provisions of "Warning Notice no. 5/21" of April 29, 2021 issued by CONSOB and referring to ESMA guideline 32-382-1138 of March 4, 2021.
• Cash Flow from Operations: the sum of Adjusted EBITDA, changes in Net Trade Working Capital, expenditure in tangible and intangible fixed assets (excluding fixed assets under right of use recognised during the year according to IFRS 16), tax paid, financial expense/income, changes in Other Current Assets and Liabilities, and Special Items, as defined above, while excluding any other changes related to equity (such as dividend distributions and/or the purchase of treasury shares), to transactions of an extraordinary nature, the repayment and/or taking out of bank loans and/or other financial items in the NFP, and any other transaction that cannot be directly attributed to the company's business operations.

GROUP RECLASSIFIED INCOME RESULTS

The following statement shows the main items of the income statement for the year versus the prior year, the results of which have been restated under IFRS 5 and IAS 1, and for details of which reference is made to Annex 3 of this document:

	31.12.2024		31.12.2023		Change	% chg.
			Restated
Revenue	493,767	100.0%	518,693	100.0%	(24,926)	-4.8%
Cost of goods sold	(285,964)	-57.9%	(307,891)	-59.4%	21,927	-7.1%
Gross Operating Margin	207,803	42.1%	210,802	40.6%	(2,999)	-1.4%
Research and Development expense	(66,830)	-13.5%	(63,281)	-12.2%	(3,549)	5.6%
Distribution expense	(86,330)	-17.5%	(87,897)	-16.9%	1,567	-1.8%
Administrative and General expense	(47,440)	-9.6%	(48,323)	-9.3%	883	-1.8%
Other (expense) income	3,692	0.7%	2,288	0.4%	1,404	61.4%
Total operating costs and other expense	(196,908)	-39.9%	(197,213)	-38.0%	305	-0.2%
Adjusted EBIT	10,895	2.2%	13,589	2.6%	(2,694)	-19.8%
Special Items - Other (Expense) and Income	(3,291)	-0.7%	(2,535)	-0.5%	(756)	29.8%
Special Items - D&A from acquisitions	(4,709)	-1.0%	(4,734)	-0.9%	25	-0.5%
EBIT	2,895	0.6%	6,320	1.2%	(3,425)	-54.2%
Net financials	12,823	2.6%	1,738	0.3%	11,085	637.8%
EBT	15,718	3.2%	8,058	1.6%	7,660	95.1%
Tax	(777)	-0.2%	(1,070)	-0.2%	293	-27.4%
Net Profit/(Loss) from continuing operations	14,941	3.0%	6,988	1.3%	7,953	113.8%
Net Profit/(Loss) from discontinued operations	(1,219)	-0.2%	2,498	0.5%	(3,717)	n.a.
Profit/(Loss) for the year	13,722	2.8%	9,486	1.8%	4,236	44.7%
EBIT	2,895	0.6%	6,320	1.2%	(3,425)	-54.2%
Special Items - Other (Expense) and Income	3,291	0.7%	2,535	0.5%	756	29.8%
Special Items - D&A from acquisitions	4,709	1.0%	4,734	0.9%	(25)	-0.5%
Depreciation Tang. Fixed Assets and Rights of Use	14,827	3.0%	15,905	3.1%	(1,078)	-6.8%
Amortisation Intang. Fixed Assets	18,794	3.8%	16,435	3.2%	2,359	14.4%
Adjusted EBITDA	44,516	9.0%	45,929	8.9%	(1,413)	-3.1%

The Gross Operating Margin amounted to €207.8 million, accounting for 42.1% of sales, up 1.4 percentage points, thanks mainly to improved productivity, which more than offset the negative effect of lower revenue on the absorption of fixed costs.

Operating costs and other expense, amounting to €196.9 million (versus €197.2 million at December 31, 2023), decreased in absolute terms but increased as a percentage of sales, from 38.0% to 39.9%.

Research and development expense amounted to €66.8 million, increasing by 5.6% versus the prior year. Total monetary costs in R&D, before capitalisation and net of amortisation and depreciation (R&D Cash Out), amounted to €65.9 million (€64.2 million in the prior year), with a percentage of sales of 13.3% (12.4% in 2023).

Distribution expense of €86.3 million decreased from €87.9 million recorded in 2023, while the percentage of revenue increased to 17.5% versus 16.9% in the prior year.

Administrative and General Expense, amounting to €47.4 million at December 31, 2024, showed a 1.8% decrease versus 2023, with the percentage of sales rising from 9.3% to 9.6%.

Net Financials closed at a positive €12.8 million, improving by €11.1 million versus the prior year, thanks mainly to the proceeds from the sale of Informatics Holdings, Inc.

INCOME RESULTS FOR THE FOURTH QUARTER

The following statement summarises Datalogic Group's key income and financial results of fourth quarter 2024 versus the same period of the prior year.

	31.12.2024	% on	31.12.2023	% on	Change	% chg.	% chg.
		Revenue	Restated	Revenue			net FX
Revenue	127,412	100.0%	115,325	100.0%	12,087	10.5%	10.0%
Adjusted EBITDA	16,699	13.1%	4,932	4.3%	11,767	238.6%	236.5%
Adjusted EBIT	6,618	5.2%	(3,722)	-3.2%	10,340	n.a.	n.a.
EBIT	4,341	3.4%	(5,159)	-4.5%	9,500	n.a.	n.a.
Profit/(Loss) for the period	1,150	0.9%	(1,268)	-1.1%	2,418	n.a.	n.a.

The Group closed fourth quarter 2024 with Revenue from sales of €127.4 million, up by 10.5% (10.0% net FX) versus €115.3 million in fourth quarter 2023.

Adjusted EBITDA reached €16.7 million, up strongly from €4.9 million in fourth quarter 2023, with EBITDA as a percentage of sales rising to 13.1% from 4.3% in fourth quarter 2023.

REVENUE PERFORMANCE

The breakdown by geographical area of Group revenue in the fourth quarter, versus the same period of the prior year, is shown in the table below:

Quarter ended
	31.12.2024	%	31.12.2023	%	Change	% chg.	% chg.
			Restated				net FX
Italy	10,242	8.0%	10,791	9.4%	(549)	-5.1%	-5.1%
EMEAI (excluding Italy)	55,786	43.8%	52,817	45.8%	2,969	5.6%	5.4%
Total EMEAI	66,028	51.8%	63,608	55.2%	2,420	3.8%	3.6%
Americas	48,499	38.1%	38,882	33.7%	9,617	24.7%	23.7%
APAC	12,885	10.1%	12,835	11.1%	50	0.4%	-0.1%
Total revenue	127,412	100.0%	115,325	100.0%	12,087	10.5%	10.00%

The following is a breakdown of Group revenue by market segment:

Quarter ended
	31.12.2024	%	31.12.2023	%	Change	%	% chg. net FX
Data Capture	88,648	69.6%	69,585	60.3%	19,063	27.4%	26.7%
Industrial Automation	38,764	30.4%	45,740	39.7%	(6,976)	-15.3%	-15.5%
Total revenue	127,412	100.0%	115,325	100.0%	12,087	10.5%	10.0%

▪ Data Capture

The Data Capture segment, representing 69.6% of sales (60.3% in fourth quarter 2023), shows a 27.4% increase versus the same period in 2023, with double-digit growth seen across all geographies, even net FX.

▪ Industrial Automation

The Industrial Automation segment recorded a 15.3% drop in fourth quarter 2024, due to declines across all geographies, particularly in APAC and the Americas.

GROUP RECLASSIFIED FINANCIAL POSITION

The following table shows the main financial and equity items at December 31, 2024 versus December 31, 2023.

	31.12.2024	31.12.2023	Change	% chg.
Intangible fixed assets	82,653	88,845	(6,192)	-7.0%
Goodwill	202,349	205,352	(3,003)	-1.5%
Tangible fixed assets and rights of use	104,284	105,486	(1,202)	-1.1%
Financial assets and investments in associates	3,740	5,418	(1,678)	-31.0%
Other fixed assets	63,685	58,103	5,582	9.6%
Fixed Assets	456,711	463,204	(6,493)	-1.4%
Trade receivables	67,039	52,093	14,946	28.7%
Trade payables	(96,133)	(83,515)	(12,618)	15.1%
Inventory	93,470	102,462	(8,992)	-8.8%
Net Trade Working Capital	64,376	71,040	(6,664)	-9.4%
Other current assets	27,897	31,115	(3,218)	-10.3%
Other liabilities and provisions for current risks	(54,454)	(61,624)	7,170	-11.6%
Net Working Capital	37,819	40,531	(2,712)	-6.7%
Other non-current liabilities	(45,223)	(46,327)	1,104	-2.4%
Post-employment benefits	(5,598)	(5,759)	161	-2.8%
Provisions for non-current risks	(3,071)	(5,197)	2,126	-40.9%
Net Invested Capital	440,638	446,452	(5,814)	-1.3%
Equity	(431,122)	(411,131)	(19,991)	4.9%
Net financial position (NFP)	(9,516)	(35,321)	25,805	-73.1%

Net Invested Capital, at €440.6 million (€446.5 million at December 31, 2023), decreased by €5.8 million, attributable mainly to the decrease in Fixed Assets.

Fixed Assets, amounting to €456.7 million (€463.2 million at December 31, 2023), decreased by €6.5 million, due mainly to a reduction in Goodwill following the sale of Informatics Holdings, Inc., as well as depreciation and amortisation for the year of Tangible Fixed Assets and Intangible Fixed Assets.

Net Trade Working Capital at December 31, 2024 amounted to €64.4 million and decreased by €6.7 million versus December 31, 2023. As a percentage of sales, it decreased from 13.2% at December 31, 2023 to 13.0% at December 31, 2024.

The Net Financial Position at December 31, 2024 stood at a negative €9.5 million (a negative € 35.3 million at December 31, 2023). The cash flows that led to the change in the consolidated Net Financial Position versus December 31, 2023 are detailed below.

	31.12.2024	31.12.2023	Change
Net Financial Position (Net Financial Debt) at beginning of year	(35,321)	(42,007)	6,686
Adjusted EBITDA	44,516	49,456	(4,940)
Change in net trade working capital	6,664	38,029	(31,365)
Other changes in net working capital and special items	(10,608)	(20,248)	9,640
Net expenditure	(25,396)	(26,387)	991
Tax paid	(5,547)	(6,052)	505
Net financial income (expense)	(5,024)	(2,281)	(2,743)
Cash Flow from Operations	4,606	32,517	(27,911)
Dividend distribution	(6,408)	(17,034)	10,626
Sale (Purchase) of treasury shares	-	(19,771)	19,771
Disinvestments (investments) of financial assets	-	6,532	(6,532)
Other changes	27,608	4,442	23,166
Change in Net Financial Position	25,805	6,686	19,119
Net Financial Position (Net Financial Debt) at year end	(9,516)	(35,321)	25,805

Cash Flow from Operations closed at a positive €4.6 million at December 31, 2024, decreasing by €27.9 million versus €32.5 million in the prior year. This result is attributable mainly to the change in Net Working Capital, affected by the different seasonality of revenue in 2024 versus 2023. "Other changes" includes income from the sale of Informatics Holdings, Inc.

At December 31, 2024, the Net Financial Debt is broken down as follows:

	31.12.2024	31.12.2023
A. Cash funds	81,436	70,629
B. Cash equivalents	-	-
C. Other current financial assets	-	-
D. Liquid assets (A) + (B) + (C)	81,436	70,629
E. Current financial debt	5,065	5,421
E1. of which lease payables	3,718	3,863
F. Current portion of non-current financial debt	13,842	14,428
G. Current Financial Debt (E) + (F)	18,907	19,849
H. Current Net Financial Debt (Financial Position) (G) - (D)	(62,529)	(50,780)
I. Non-current financial debt	72,045	86,101
I1. of which lease payables	7,352	7,767
J. Debt instruments	-	-
K. Trade and other non-current payables	-	-
L. Non-Current Financial Debt (I) + (J) + (K)	72,045	86,101
M. Total Net Financial Debt/(Net Financial Position) (H) + (L)	9,516	35,321

At December 31, 2024, the Group had outstanding financial credit lines of approximately €268.0 million, of which approximately €179.0 million committed. Undrawn and readily available financial lines amounted to €189.0 million.

RECONCILIATION STATEMENT OF THE RESULT FOR THE YEAR AND EQUITY OF THE PARENT COMPANY AND OF THE GROUP

The Reconciliation Statements of equity and net profit of Datalogic S.p.A. and the corresponding consolidated amounts at December 31, 2024 and December 31, 2023, as envisaged in CONSOB Communication no. DEM/6064293 of July 28, 2006, are shown below.

	December 31, 2024		December 31, 2023
	Total Equity	Profit/(loss) for the year	Total Equity	Profit/(loss) for the year
Parent Company equity and profit	372,024	37,859	340,492	17,087
Equity and result of consolidated companies	137,871	12,233	126,928	(2,533)
Elimination of dividends		(13,886)		(6,977)
Amortisation of intangible fixed assets "business combination"	(15,356)	(2,840)	(12,516)	(2,864)
Effect of acquisition "under common control"	(31,733)		(31,733)
Elimination of capital gain on sale of business unit	(17,067)		(17,067)
Effect on elimination of intercompany transactions	(37,817)	(29,544)	(8,272)	3,981
Adjustment of write-downs and capital gains on	5,517		5,517
investments Goodwill impairment	(1,395)		(1,395)
Other	615		615
Tax effect	18,463	9,901	8,563	793
Group equity and profit	431,122	13,722	411,131	9,487

PARENT COMPANY RECLASSIFIED FINANCIAL POSITION, RESULTS AND CASH FLOWS FOR THE YEAR

The following table shows the main reclassified financial and equity items for the Parent Company Datalogic S.p.A. at December 31, 2024 versus December 31, 2023.

	31.12.2024	31.12.2023	Change	% chg.
Intangible fixed assets	5,252	6,598	(1,346)	-20.4%
Tangible fixed assets	20,131	20,350	(219)	-1.1%
Financial assets and investments in associates	180,227	193,029	(12,802)	-6.6%
Other fixed assets	1,353	1,543	(190)	-12.3%
Fixed Assets	206,963	221,520	(14,557)	-6.6%
Trade receivables	17,800	17,131	669	3.9%
Trade payables	(7,516)	(5,855)	(1,661)	28.4%
Net Trade Working Capital	10,284	11,276	(992)	-8.8%
Other current assets	4,548	5,045	(497)	-9.9%
Other liabilities and provisions for current risks	(16,906)	(18,970)	2,064	-10.9%
Net Working Capital	(2,074)	(2,649)	575	-21.7%
Other non-current liabilities	(1,445)	(2,438)	993	-40.7%
Post-employment benefits	(523)	(788)	265	-33.6%
Net Invested Capital	202,921	215,645	(12,724)	-5.9%
Equity	(372,024)	(340,492)	(31,532)	9.3%
Net financial position (NFP)	169,103	124,847	44,256	35.4%

The following table shows the main reclassified income items of the year versus the prior year:

	31.12.2024		31.12.2023		Change	% chg.
Revenue	32,137	100.0%	32,492	100.0%	(354)	-1.1%
Cost of goods sold	(978)	-3.0%	(1,703)	-5.2%	725	-42.6%
Gross Operating Margin	31,159	97.0%	30,789	94.8%	371	1.2%
Research and Development expense	(918)	-2.9%	(830)	-2.6%	(88)	10.6%
Distribution expense	(2,026)	-6.3%	(2,145)	-6.6%	119	-5.5%
Administrative and General expense	(28,762)	-89.5%	(26,458)	-81.4%	(2,304)	8.7%
Other (expense) income	44	0.1%	429	1.3%	(385)	-89.7%
Total operating costs and other expense	(31,662)	-98.5%	(29,004)	-89.3%	(2,658)	9.2%
EBIT	(502)	-1.6%	1,785	5.5%	(2,287)	-128.1%
Financials	43,676	135.9%	17,890	55.1%	25,786	144.1%
Foreign exchange gains/(losses)	(1,828)	-5.7%	1,105	3.4%	(2,933)	-265.5%
EBT	41,346	128.7%	20,780	64.0%	20,566	99.0%
Tax	3,487	10.9%	3,693	11.4%	(206)	-5.6%
Profit/(Loss) for the year	37,859	117.8%	17,087	52.6%	20,772	121.6%

SHARE PERFORMANCE

Datalogic S.p.A. has been listed on the Italian Stock Exchange since 2001 - Euronext STAR Milan segment (High Requirements Shares Segment) of the Euronext Milan Market of Borsa Italiana, which includes medium-sized companies with a capitalisation between €40 million and €1 billion that are committed to meeting standards of excellence. Starting in 2023, Datalogic S.p.A. became part of Euronext Tech Leaders, a segment comprising over 120 European companies listed on Euronext's high-growth markets and recognised leaders in the technology sector.

In 2024, the share was down by 24.3%. It reached a high of €6.68 per share on August 23 and August 30, 2024, and a low of €4.9850 on December 19, 2024. The average daily volumes exchanged in 2024 were approximately 80,000 shares, down compared to 112,000 average shares reported in the prior year.

STOCK EXCHANGE 2024

Segment	EURONEXT STAR MILAN - EURONEXT MILAN
Bloomberg Code	DAL.IM
Reuters Code	DAL.MI
Number of shares	58,446,491 (of which 4,800,000 treasury shares)
2024 min	€4,985 (December 19, 2024)
2024 high	€6,680 (August 23 and August 30, 2024)
Capitalisation	€299.25 million at December 31, 2024

RELATIONS WITH INSTITUTIONAL INVESTORS AND SHAREHOLDERS

Datalogic actively strives to maintain an ongoing dialogue with shareholders and institutional investors, periodically arranging meetings with representatives of the Italian and international financial community, including annual roadshows organised by Borsa Italiana for companies listed in the Euronext STAR Milan segment.

In 2024, the Company met 68 institutional investors in one to one, lunch meetings and corporate events.

INFORMATION ON OWNERSHIP STRUCTURE/CORPORATE GOVERNANCE REPORT

Pursuant to and in accordance with Article 123-bis, paragraph 3, of Legislative Decree 58 of February 24, 1998 (as subsequently amended and supplemented), the Board of Directors of Datalogic S.p.A. approved a Report on Corporate Governance and Ownership Structure for the year ended December 31, 2024, separate from the Report on Operations, containing information pursuant to paragraphs 1 and 2 of Article 123-bis above. This report is publicly available on the Company website www.datalogic.com.

OTHER INFORMATION

Datalogic S.p.A. indirectly controls a number of companies established and governed by the law of non-European Union countries, that have relevant importance under Article 15 of CONSOB Regulation 20249/2017 (former Article 36 of CONSOB Regulation 16191/2007) on market regulation ("Market Regulation").

Also pursuant to the above regulation, the Company has implemented in-house procedures to monitor the compliance with provisions set out by the CONSOB regulations. Specifically, the relevant corporate departments ensure the timely and periodic identification of relevant "non-EU" companies and, with the cooperation of the companies concerned, ensure the collection of data, information and ascertainment of the circumstances referred to in Article 15 above.

It is, therefore, acknowledged that Datalogic has fully complied with the provisions of Article 15 of the above CONSOB Regulation 20249/2017 and that the conditions required have been met.

The Company adopted the opt-out system set forth in Articles 70, paragraph 8, and 71, paragraph 1-bis, of the Issuer Regulation (adopted by CONSOB with resolution no. 11971 of May 14, 1999 as subsequently amended), by making use of the right to depart from the obligation to publish information documents required on the occasion of significant mergers, demergers, capital increase by non-cash contributions, acquisitions and disposals.

NUMBER AND VALUE OF TREASURY SHARES

At December 31, 2024, the total number of ordinary shares was 58,446,491, including 4,800,000 held as treasury shares, equal to 8.2% of the share capital; hence, the number of outstanding shares at that date is 53,646,491. The shares have a unit par value of €0.52 and are fully paid up.

RELATED-PARTY TRANSACTIONS

Related-party transactions, as disclosed in the reporting formats and described in detail in the related notes to the Income Statement items, to which reference is made, cannot be qualified as atypical or unusual, given that they are part of the normal business of the Group companies, and are governed at arm's length.

With resolution no. 17221 of March 12, 2010, also pursuant to and in accordance with Article 2391-bis of the Italian Civil Code, CONSOB adopted the Regulation with provisions on related-party transactions, later updated with the amendments made by Resolution no. 22144 of December 22, 2021 ("CONSOB Regulations").

Following the adoption of the CONSOB Regulations, in order to ensure transparency as well as substantive and procedural fairness of any transactions entered into by Datalogic with parties qualified as "related parties" under the above CONSOB Regulations, on November 4, 2010, the Company approved a specific and structured procedure for related-party transactions. Subsequently, on July 24, 2015 and June 23, 2021, the governing body made a few changes to it (the document is available in the Corporate Governance section of the website www.datalogic.com.

Pursuant to Article 5, paragraph 8, of the CONSOB Regulations, it should be noted that, over the period 01.01.2024 – 31.12.2024, the Company's Board of Directors did not approve any transaction of greater significance, as set out by Article 3, paragraph 1, letter b) of the CONSOB Regulations, or any related-party transactions of a lesser significance that had a significant impact on the Group's equity position or results.

TAX CONSOLIDATION

With regard to the three-year period 2022-2024, the parent company Datalogic S.p.A., as "Consolidating Company", together with its subsidiaries Datalogic S.r.l. and Datasensing S.r.l., as "Consolidated Companies", opted for the "National Tax Consolidation" (NTC) tax system, under Articles 117 et seq. of the TUIR. However, with regard to the threeyear period 2024-2026, Datalogic S.p.A. (again as "Consolidating Company") and its subsidiary IP Tech S.r.l., as "Consolidated Company", exercised the same option, with the result that 2024 closes with the tax consolidation of the four companies mentioned.

The NTC system results in the transfer by the individual consolidated companies to the consolidating company Datalogic S.p.A. of their respective individual taxable income, in addition to their respective individual receivables, advances and other tax items. The consolidating company's own individual taxable income, in addition to any relevant individual tax items, is also included in this system. The latter will therefore settle the overall tax, valuing a single credit or debit position vis-à-vis the tax authorities.

SIGNIFICANT EVENTS DURING THE YEAR

On March 7, 2024 Datalogic S.p.A. completed the sale of 100% of its non-strategic stake in Informatics Holdings, Inc. (Informatics), a company active in the marketing and distribution of software products and solutions tailored to small and medium-sized companies, headquartered in Plano (Texas, USA). The transaction involved the sale by Datalogic S.p.A. of its stake to a company controlled by the U.S. private equity fund Renovo Capital LLC.

Additionally, effective January 1, 2024, the Board of Directors approved the transfer of the subsidiary Datalogic S.r.l.'s R&D division business unit to the subsidiary Datalogic IP Tech S.r.l.. As a result, the ownership structure of Datalogic IP Tech S.r.l. changed as follows: Datalogic S.r.l.'s stake increased from 50% to 67.16%, whereas the parent company Datalogic S.p.A.'s stake decreased from 50% to 32.84%.

RECLASSIFICATION OF INCOME STATEMENT ITEMS

Starting from the first quarter of the current year, to provide a clearer picture of Group performance, certain costs shown in distribution expense have been classified as a reduction in revenue.

Comparative figures have been consistently restated; reference is made to the table in Annex 3 of this document for details of the amounts.

GOVERNANCE

On April 30, 2024, the Shareholders' Meeting approved the Financial Statements at December 31, 2023, and reviewed the Group's Consolidated Financial Statements at December 31, 2023, and resolved to distribute an ordinary unit dividend, gross of tax, of 12 Euro cents per share, for a maximum total amount of €6.4 million.

The same Meeting also resolved to:

• appoint the Board of Directors for the years 2024-2026, with the election of 6 members from "List No. 1" submitted by the shareholder Hydra S.p.A., which holds a 64.85% stake in the Company's share capital and a 78.65% stake in the Company's voting share capital (37,900,000 ordinary shares), and the election of 1 member from "List No. 2" submitted by a grouping of shareholders holding a total 2.64% stake in the share capital;
• appoint Romano Volta as Chairman of the Board of Directors of the Company, until the date of the Shareholders' Meeting convened to approve the financial statements as of December 31, 2026;
• set, pursuant to and in accordance with Article 20 of the Bylaws, in the amount of €2,500,000.00, the maximum global annual compensation to be granted to all the members of the Board of Directors, including those holding strategic responsibilities for the current year (2024) and for the portion of the following year (2025), until the date of approval of the Company's 2024 financial statements, leaving to the discretion of the Board itself any decision regarding the allocation of the above maximum global amount among the different Directors;
• in implementation of the provisions of Article 123-ter, Legislative Decree No. 58/1998 and 84-quater of CONSOB Regulation No. 11971 of May 14, 1999, to approve the 2024 remuneration policy set out in section one of the Report on the Remuneration Policy and on Compensation Paid and to vote in favour of compensation paid in 2023 set out in section two of the Report;
• revoke, for the unexecuted portion at the date of the Shareholders' Meeting, the authorisation to the Board of Directors to purchase treasury shares resolved by the Shareholders' Meeting on April 27, 2023, and authorise the Board of Directors, pursuant to and in accordance with Article 2357 et seq. of the Italian Civil Code and Article 132 of Legislative Decree No. 58 of February 24, 1998, to carry out transactions to purchase the Company's treasury shares, on one or more occasions, for a period not exceeding 18 months from the date of this resolution.

SUBSEQUENT EVENTS

Nothing to report.

BUSINESS OUTLOOK

The year 2025 will be equally challenging, with a market still affected by global trade, geopolitical, and macroeconomic uncertainties. Despite this environment, we expect growth in revenue and profitability versus the prior year, driven by the Data Capture segment and a recovery in Industrial Automation, particularly in the second half of the year, when a number of major Logistic Automation projects should materialise. Although still cautious about growth developments in 2025, we are confident that the continued investments made in research and development and the introduction of innovative products and solutions, such as the new retail scanner and the new industrial reader, both based on artificial intelligence, will enable the Group to secure major projects and grow structurally in the medium to long term, both in terms of revenue and profitability.

SECONDARY LOCATIONS

The Parent Company has no secondary locations.

Consolidated Sustainability Report

GENERAL INFORMATION

ESRS Standards	Reference	Notes
Preparation criteria
BP-1 - General basis for preparation of the sustainability statements	Methodological Note
BP-2 - Disclosure in relation to specific circumstances	Methodological Note
GOVERNANCE
GOV-1 - The role of administrative, management and supervisory bodies	Board of Directors and statutory bodies
GOV-2 - Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies	Board of Directors and statutory bodies
GOV-3 - Integration of sustainability-related performance in incentive schemes	Remuneration policies
GOV-4 - Statement on due diligence	Statement on due diligence
GOV-5 - Risk management and internal controls over sustainability reporting	Internal control and risk management for sustainability
Strategy
SBM-1 - Strategy, business model and value chain	Business model and value chain
SBM-2 - Interests and views of stakeholders	Stakeholder engagement
SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	Material impacts, risks and opportunities
Impact, risk and opportunity management
IRO-1 - Description of the process to identify and assess material impacts, risks and opportunities	Process of identifying and assessing IROs
IRO-2 - Disclosure requirements in ESRS covered by the undertaking's sustainability statement	Disclosure requirements

METHODOLOGICAL NOTE

General preparation criteria

This document represents Datalogic Group's first Consolidated Sustainability Reporting, covering 2024 and is prepared in accordance with Legislative Decree No. 125 of 6 September 2024, which implements Directive 2022/2464/EU (Corporate Sustainability Reporting Directive), and the ESRS Reporting Standards. [BP-1, 5a].

The Group does not include in its Consolidated Sustainability Reporting information derived from other legislation requiring the disclosure of sustainability information or from other generally accepted standards and frameworks for sustainability reporting, with the exception of the requirements of EU Regulation 2020/852 of the European Parliament and of the Council and its Delegated Regulations in relation to the European Taxonomy for Environmentally Sustainable Activities [BP-2, 15].

Reporting scope

The reporting scope of the data and information in the Consolidated Sustainability Reporting matches the scope of Datalogic Group Consolidated Financial Statements at 31 December 2024. Details of subsidiaries within the scope of Sustainability Reporting are given in Annex 2 of the Annual Financial Report [BP-1, 5b].

The Group has determined that there are no companies not included in the full consolidation scope for which the concept of operational control, as defined by the ESRS Reporting Standards, can be applied.

Value chain inclusion

Consistent with the double materiality analysis performed, the Statement considers information related to the Datalogic Group value chain, including [BP-1, 5c]:

• Impacts, Risks and Opportunities (IROs): the identification of IROs was done by considering both the Group's direct operations and its relationships with upstream and downstream actors in the value chain;
• Corporate policies: Policy on human rights on workers, Policy on environment and sustainable procurement, Policy on customers and end-users;
• Metrics: The only metrics included in this Statement in relation to the value chain relate to indirect greenhouse gas emissions (Scope 3), reported in accordance with ESRS E1-6.

Use of estimates in the value chain

Metrics that include value chain data can be based on indirect sources, such as industry averages or approximation coefficients. These data are clearly identified and accompanied by a description of the methodology adopted for their calculation. Additionally, the level of accuracy associated with the data is indicated, and where necessary, planned actions to improve this accuracy in the future are outlined [BP-2, 10].

Estimation uncertainty

As stated in section 7.2 of ESRS 1, Datalogic Group highlights quantitative metrics and monetary amounts marked by a significant degree of uncertainty. For each metric, the causes of such uncertainty, such as dependence on future events, the calculation methodologies used or the quality of data from the value chain, are specified. The assumptions, approximations and assessments made are described transparently to ensure clarity in the reporting process. The estimates made for this Reporting are not, on the whole, marked by a high level of uncertainty, with the exception of estimates related to the quantification of Scope 3 emissions (ESRS E1-6) and resource inflows (ESRS E5-4). For more details, see the sections "GHG Emissions" and "Resource Inflows" [BP-2, 11].

Application of transitional provisions

In accordance with Paragraph 136 and the guidance of Appendix C of ESRS 1, Datalogic Group omits presenting comparative data in the first year of preparing the sustainability statement, using the option to phase in the following information in future years [BP-2, 17]:

• E1-9: Anticipated financial effects from material physical and transition risks and climate-related opportunities;
• E5-6: Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities;
• S1-7: Characteristics of non-employee workers in the undertaking's own workforce;
• S1-11: Social protection;
• S1-12: Inclusion of persons with disabilities;
• S1-14: Health and safety metrics (non-employee workers only);
• S1-15: Indicators of work-life balance.

STRATEGY

Business model and value chain

Significant products, services and markets

Datalogic S.p.A., a company listed on the Euronext STAR Milan of Borsa Italiana S.p.A. since 2001 and part of the Euronext Tech Leaders segment since 2023, is a world leader in the fields of automatic data capture and industrial automation. Boasting over fifty years of experience, the Group is specialised in the design and production of barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID. Its pioneering solutions help increase the efficiency and quality of processes along the entire value chain in the Retail, Manufacturing, Transportation & Logistics and Healthcare segments.

The Group's production operations focus on component assembly and software development for the manufacture of high-tech products, and have low energy requirements compared to more energy-intensive sectors. The Group has a small number of production staff (blue collars account for only 33% of the Group's workforce), and has a strong focus on R&D, which employs more than 460 people.

Datalogic operates in a competitive global market, competing with major U.S. multinationals in two main market segments: Data Capture and Industrial Automation.

In the Data Capture segment, the main products include hand-held scanners, mobile computers, mobile devices, and fixed on-counter scanners for the retail, logistics, and healthcare sectors. There are many significant breakthroughs recently introduced in this segment, including: the new Datalogic AI Loss Prevention Suite, an advanced platform based on machine learning models, available on Magellan series multi-plane scanners and Mobile Computers designed to support retailers in reducing losses in all in-store operations, from check-out to overall store management. The new advanced self-shopping software ShopEvolution 8, equipped with pre-trained AI and machine learning models, allows checkout audits to be triggered only when necessary and enables purchase behaviour mapping and loss analysis by making data-driven decisions. Unlike others that rely on third-party partnerships, both solutions are based on Datalogic's proprietary AI technology and provide seamless integration, solid performance and unparalleled competitiveness, highlighting Datalogic's commitment to equipping retailers with advanced tools to streamline operations and improve the customer experience.

The Remote Management Solution also enables remote management of the installed product fleet, which not only streamlines operations but also reduces environmental impact by enabling real-time configuration, upgrades, and monitoring, thus minimising on-site interventions, technician travel, and consequently fuel consumption and CO₂ emissions.

Lastly, the new family of laptops Memor, which offers advanced reading performance even for the long range, thanks to Datalogic's new proprietary scan engines. Combined Wi-Fi 6/6E and 5G connectivity provides comprehensive indoor and outdoor connectivity and includes band compatibility for homes and PA. Equipped with Bluetooth 5.3 for faster data transfer speed, longer range, better transmission stability and lower power consumption, the Memor family devices have a strong focus on security by automatically supporting all Android OS updates up to Android 18. They also represent a solution focused on sustainability and a commitment to reducing environmental impact through innovative solutions and eco-friendly materials. In fact, packaging with entirely recycled and recyclable material has been adopted for the entire range of products and accessories, and the volume of containers has also been reduced, for a lower environmental impact also related to the transportation and shipping of products. Advanced power management technology also extends battery life by 20%, optimising clients' power consumption.

All Datalogic solutions aim to optimize energy use and extend the life cycle of devices, minimising replacements and ewaste, enhancing technological sustainability, and supporting circular economy strategies through optimising asset utilization and efficient refurbishment.

In Industrial Automation, the main products include fixed scanners for industrial use, sensors and safety solutions, laser marking systems, and artificial vision solutions

In industrial scanners, Datalogic continues to strengthen its global leadership through constant innovations, the most recent of which include the new family of readers 2D Imager Matrix 220. Prominent among the products in this new family is the new Matrix 220 XAI, the new barcode reader that integrates artificial intelligence to improve traceability and efficiency in production processes. This device is designed to address the challenges of reading codes marked directly on components (DPM) in industries such as automotive, electronics, and packaging. The Matrix 220 XAI stands out for its auto-configuration system, the fastest ever, based on artificial intelligence, developed by Datalogic's R&D Department with input from Pekat Vision, a Group company known for its expertise in artificial intelligence applied to vision systems. This technology, the result of Italian excellence in industrial innovation, uses advanced artificial intelligence algorithms capable of automatically adapting to different surfaces and materials, ensuring accurate reading of even the most damaged or low-quality barcodes. The result is rapid installation, reduced downtime and optimized

reading operations, even under the most challenging conditions. The device is equipped with the DecodeX decoding engine, based on Datalogic's proprietary technology, designed to dynamically adapt to different operating conditions, ensuring accurate barcode reading. This technology aims to set new standards in DPM performance, providing companies with advanced tools to address the challenges of an ever-evolving market. With the Matrix 220 XAI, Datalogic delivers innovative solutions powered by artificial intelligence, paving the way for the next generation of industrial automation and supporting businesses in enhancing traceability and operational efficiency.

In safety solutions, Datalogic has enriched its portfolio with advanced Safety Laser Scanners featuring PROFIsafe and PROFINET integration, meeting the highest safety standards while offering flexibility for industrial applications. These models combine ease of installation with advanced scanner configurability and diagnostics.

The SH4 AP models further complement the SH4 family of safety barriers by introducing variants with a single active unit working with a passive unit, eliminating the need for electrical connections and significantly simplifying installation costs.

Lastly, regarding sensors, Datalogic offers a complete range for factory automation uses, from photoelectric sensors that use the emission and reception of light to detect the presence of objects or their parts, inspect their integrity or proper assembly, measure their size, distance or correct positioning, to the inductive, proximity or ultrasonic sensors, up to the new generations of smart vision sensors enabled with artificial intelligence and enhanced by machine learningassisted setup algorithms, a smart solution for all object presence and orientation detection applications.

Customer proximity and responsiveness to specific needs, coupled with ongoing technological innovation and the delivery of high-quality offerings, have been the cornerstones of Datalogic's success for over fifty years now. With products used extensively in more than one-third of supermarkets and retail outlets worldwide, and in one-third of airports, transportation companies and postal services as well as in major manufacturing industries and hospital facilities globally, Datalogic offers its customers a wide range of solutions that meet all market needs [SBM-1, 40ai]. Meeting customer needs through constant technological innovation and high quality offerings, Datalogic has gradually developed a strong foothold in international markets partly through acquisitions, with a presence in 31 countries in Europe, Asia Pacific, and the United States [SBM-1, 40aii].

Value chain

Datalogic Group sources from a global network of suppliers of varying sizes and geographies, purchasing hardware components, software, and integrated solutions. Materials purchased include printed circuit boards, sensors, microchips, batteries, displays, and other electronic components. Equally important is the procurement of software solutions, firmware, and operating systems, which are essential for the design of end products. Datalogic mainly purchases finished and semi-finished products, which it assembles on its production lines. Suppliers are selected based on their quality, innovation capacity, and ability to meet sustainability criteria. Potential impacts, risks, and opportunities along Datalogic's value chain stem primarily from dependence on global suppliers and the need to ensure business continuity and sustainable sourcing of components. Disruptions in the supply chain, whether from climatic, geopolitical, or regulatory factors, could affect the availability and cost of raw materials. However, adopting sustainability criteria and collaborating with responsible suppliers offers an opportunity to strengthen supply chain resilience and reduce the Group's overall environmental footprint. Downstream, Datalogic offers its products through a global network of distributors and business partners, with a strong focus on direct sales, particularly in the Industrial Automation segment. In addition to distribution, partners also offer installation and after-sales services for Datalogic products. The Group is also committed to complying with product recovery and recycling regulations, following Waste Electrical and Electronic Equipment (WEEE) guidelines, and providing customers with clear information on proper disposal and recycling of products. Datalogic holds a pivotal position in the value chain, coordinating all stages - from component procurement through distribution and after-sales support - ensuring that each stage contributes to an efficient and sustainable product lifecycle [SBM-1, 42c].

The Company collects and manages various data related to its products to optimize production, improve product quality, and ensure customer satisfaction. Data is collected through automated production systems, device performance monitoring in the field, and customer relationship management, particularly feedback on products and services. Data protection is a priority for Datalogic, which implements strict IT security protocols, complies with privacy and data protection regulations such as GDPR, and uses encryption technologies to ensure the integrity and confidentiality of information [SBM-1, 42a].

Datalogic products offer numerous benefits to end customers by providing innovative solutions that improve operational efficiency, safety, and quality in areas like retail, logistics, and industrial automation. Datalogic solutions also help reduce environmental impact by decreasing operational inefficiencies and operating costs. Datalogic is an ever-expanding Group with a strong focus on technological innovation and sustainability.

All stakeholders - including suppliers, business partners, and end customers - benefit from a collaborative business ecosystem that promotes advanced technology adoption, improved product quality, and a commitment to environmental sustainability [SBM-1, 42b].

Sustainability objectives

The Group has established a long-term strategy and a set of sustainability objectives that reflect its commitment to reducing environmental impact, improving product quality, and strengthening social responsibility. These objectives cover key product and service groups, customer categories, geographical regions, and stakeholder relationships, and will evolve over time as specific, measurable targets are introduced.

The Group is focusing its research and development expenditure on reducing product energy consumption, using recycled materials, and certifying eco-labeled products. Solutions that reduce energy consumption and improve the durability and environmental sustainability of products are at the heart of the offering, thanks, for example, to the introduction of recycled plastics in the new generations of several high-sales product lines such as the new Gryphon hand scanner series. Additionally, ongoing packaging optimization, aimed at weight reduction and increased use of recycled materials, meets the growing demand from customers and investors to reduce environmental impact. The goal of implementing a carbon footprint reduction plan is a crucial step in demonstrating the Group's commitment to sustainability, aligning with customer, investor, and regulatory expectations. Sustainability is central to the Group's relationships with key stakeholders, including suppliers and business partners, and is integral to evaluations aimed at promoting a more responsible supply chain. [SBM-1, 40e; SBM-1, 40g].

The Group's new products are designed for greater durability and easy recyclability, aligning with the company's circular economy strategies. With regard to key markets and customer groups. The Group is primarily active in Europe and North America, where demand for sustainable solutions is rapidly increasing, and where regulatory requirements for sustainability are stricter. Datalogic is committed to continuously improving customer satisfaction and consistently measures the Net Promoter Score (NPS): a key, widely recognized indicator for tracking customer satisfaction, which also reflects their growing expectations for sustainability [SBM-1, 40f].

Certified Management Systems

Datalogic adheres to European and internationally recognized standards to evaluate the performance of its products and services. The Group has achieved certifications in quality, environmental management, information security, workplace health and safety, and social responsibility, all with a focus on continuous improvement. The Group's commitment is demonstrated by its adherence to ISO standards, which serve as the benchmark for corporate quality management systems. The data and processes used in sustainability reporting are audited by accredited third-party bodies to certify compliance with the corresponding reference standards [BP-2, RA 2].

Certification	Description	Scope
ISO 9001	Identifies regulations and guidelines that define the requirements for a quality management system in an organization	Datalogic Slovakia Sro, Datalogic SpA, Datalogic Srl, Datalogic USA Inc, Datalogic Vietnam LLC, Datalogic IP Tech srl, Datasensing srl, Datalogic Hungary Kft
ISO 27001	Identifies the requirements for setting up and operating an information security management system	Datalogic Spa, Datalogic Srl, Datalogic USA Inc and Datalogic Vietnam
ISO 14001	Environmental management standard that establishes the requirements of an environmental management system for an organization	Datalogic Slovakia Sro, Datalogic Spa, Datalogic Srl, Datalogic Vietnam LLC, Datasensing srl, Datalogic Hungary Kft
ISO 45001	Establishes formal procedures for managing worker health and safety	Datalogic Slovakia Sro, Datalogic Spa, Datalogic Srl, Datalogic IPTECH Srl, Datalogic Vietnam LLC, Datasensing srl, Datalogic Hungary Kft
SA 8000	Certifies commitment to sustainable development with special regard to social topics: e.g., respect for human rights and respect for labour law	Datalogic SpA, Datalogic IP TECH Srl, Datalogic Srl

Geographical distribution of employees

The Group has a significant global presence, with operations across different geographical areas. The following table shows the breakdown of employees in the various geographical areas [SBM-1, 40aiii].

Geographical area	Headcount
	2024	%
EMEA - Europe, Middle East and Africa	1,666	60.6%
APAC - Asia Pacific	723	26.3%
AMERICAS - North, Central and South America	362	13.2%
Total	2,751	100%

Stakeholder engagement

The Company engages key stakeholders on sustainability aspects to ensure a comprehensive and balanced view across various areas. The engagement process includes both external actors, such as customers, banking institutions, investors, and business partners, and internal actors, such as Group employees. This approach enables the collection of valuable input that can directly influence business strategy and decision-making processes. Additionally, the Shareholder Dialogue Management Policy fosters transparency with the financial community and markets. It ensures the establishment, maintenance, and development of a dialogue with investors regarding sustainability topics [SBM-2, 45a]. In 2024, key stakeholder involvement occurred through targeted meetings and interviews, with feedback contributing to the identification and prioritization of material topics for Datalogic. These stakeholders included customers, suppliers, banks, investors, and research institutions. The Company also distributed questionnaires to gather views from a broader pool of stakeholders, assessing the Group's commitment to sustainability. Internally, a group of selected employees participated in company surveys to provide input for decision-making, promoting an ESG-conscious corporate culture [SBM-2, 45ai, 45aii, 45aiii, 45aiv].

Datalogic recognizes its workforce as central to the stakeholder engagement process. Workers' interests and views are integrated into corporate strategy through tools like questionnaires, meetings, workshops, and focus groups. The internal workforce plays a critical role in guiding corporate decisions and strengthening the company's ethical approach [S1.SBM-2, 12].

Similarly, Datalogic regards value chain workers as key stakeholders. The impacts of business operations on workers throughout the supply chain are carefully assessed (Datalogic subjects each new supplier to a self-assessment questionnaire, including specific ESG questions, and accepting the SA8000 principles), ensuring compliance with international human rights regulations and improving working conditions. This commitment translates into ongoing monitoring and dialogue with business partners to ensure responsible supply chain management. [S2.SBM-2, 9].

Datalogic Group also pays special attention to customers and end-users, recognising them as key stakeholders. Datalogic Group collects and analyses their views through active listening tools like satisfaction surveys, direct feedback at events,

industry trade shows, and on-site visits to Group facilities. Respect for consumer rights is central to the company's strategy, ensuring the provision of safe, reliable products that meet current regulations [S4.SBM.2, 8].

Input from various stakeholders is analysed and discussed at quarterly meetings of the Sustainability Executive Committee, a committee of top executives from relevant sustainability functions. During these meetings, top management evaluates stakeholder requests and monitors progress on sustainability topics. Stakeholder views are thus integrated into the processes of assessing the materiality of sustainability topics and affect the evaluation of corporate strategies and business model, with a view to continuous improvement [SBM-2, 45av, 45b, 45c].

The stakeholder engagement process enables Datalogic to maintain an ongoing and structured dialogue, strengthening transparency and accountability in corporate decisions. Administrative, management, and supervisory bodies are regularly updated on the outcomes of engagement activities, ensuring robust governance aligned with stakeholder expectations [SBM-2, 45d].

GOVERNANCE

Board of Directors and statutory bodies

Board of Directors

The Board of Directors (BoD) of Datalogic S.p.A. is responsible for setting corporate strategies and overseeing operational management.

Name	Role	Gender	Executive	Independent
Romano Volta	Chairman	M	Yes	No
Valentina Volta	Chief Executive Officer	F	Yes	No
Filippo Maria Volta	Director	M	No	No
Angelo Manaresi	Director	M	No	Yes
Chiara Giovannucci Orlandi	Director	F	No	Yes
Vera Negri Zamagni	Director	F	No	Yes
Valentina Beatrice Manfredi	Director	F	No	Yes

At December 31, 2024, the Board is composed of 7 members, of whom 2 have executive positions and 5 are nonexecutive. The composition of the Board ensures diverse expertise in the fields of industrial automation technologies, global markets, and business management. There is no provision for worker representation on the Board of Directors in line with legislation on worker representation in administrative bodies. Within the Board, gender balance is ensured: out of 7 directors, 4 are women (57%) and 3 are men (43%), with a women/men ratio of 1.3. Additionally, 4 out of 7 directors are independent (57%). The independence stated by the Directors is assessed annually according to the recommendations of the Corporate Governance Code [GOV-1, 19, 20a, 21; G1.GOV-1, 5].

The governance of sustainability and risk monitoring is entrusted to the Board of Directors, with the support of the Control, Risk, Remuneration, Appointments and Sustainability Committee (Single Committee), composed exclusively of independent and non-executive members. The Board of Statutory Auditors oversees compliance with regulations and principles of proper administration. Such bodies periodically review the corporate strategy, monitoring the effectiveness of the adopted policies and the achievement of sustainability objectives. Specifically, the results of stakeholder engagement and the analyses of impacts, risks, and opportunities that identified the material sustainability topics for Datalogic were submitted to the Sustainability Executive Committee for a completeness check and subsequently shared with the CEO. The Board of Directors, with the favourable opinion of the Single Committee in its role as sustainability committee and having heard the Board of Statutory Auditors, then approved double materiality [GOV-1, 20b, 20c, 22a, 22b, 22d, 26b].

The Executive Chairman and the Group CEO are responsible for the implementation of governance processes for the various heads of corporate functions and for structuring an integrated internal control system aimed at identifying and managing key risks, under the supervision of the Single Committee and the Board of Directors. The lines of responsibility are clear, with the Sustainability Executive Committee reporting to the CEO and the Executive Chairman. The Executive Chairman and the CEO inform the Board at least four times a year about the exercise of the powers delegated to them by the Board of Directors, ensuring constant monitoring of corporate strategies and their implementation. The Head of Internal Audit reports hierarchically and directly to the Chairman of the Board of Directors.

This ensures a constant update on risk management and the measures taken to mitigate them, guaranteeing the integration of sustainability aspects into strategic decision-making processes [GOV-1, 22c, 22cii, 26a].

The governance bodies address and manage operational and financial risks, including the adjustment of market strategies and sustainability policies, while identifying innovation opportunities in the industrial automation sector. The sustainability strategy is managed by the Group CEO with the support of the Executives through a Sustainability Executive Committee, while the Board, with the support of the Single Committee, approves the long-term objectives and monitors their implementation [GOV-1, 22ci, 26c].

Datalogic has adopted a structured internal control system, with procedures applied by the heads of corporate functions whose activities are subject to periodic internal and external audits; the outcome of these audits is reported to the supervisory bodies. The assessment of the effectiveness of corporate strategies and sustainability impacts takes place through periodic reports provided by the Executive Bodies to the Board of Directors, with the support of the Single Committee and under the supervision of the Board of Statutory Auditors [GOV-1, 22ciii, 26b].

To ensure comprehensive understanding of the sector and sustainability dynamics, the Company has conducted informational activities for its directors and supervisory bodies, with periodic in-depth analyses managed by the executive directors and management [GOV-1, 23].

Control, Risk, Remuneration, Appointments and Sustainability Committee

In carrying out its duties, the Board of Directors relies on the support of the Control, Risk, Remuneration, Appointments and Sustainability Committee, also referred to as the Single Committee, which has expertise in the areas of appointments, remuneration, control, risks, and sustainability. This body, composed internally of independent and nonexecutive Directors, supports the assessments and decisions of the Board regarding the adequacy of the internal control system and risk management, as well as the definition of the related guidelines. Specifically, it assesses the adequacy of non-financial information to accurately present the business model, corporate strategies, the impact of activities, and performance achieved, analysing the material topics for long-term value generation. Additionally, it reviews the content of the Sustainability Reporting for the purposes of the internal control system and risk management.

Name	Role	Gender
Angelo Manaresi	Chairman	M
Chiara Giovannucci Orlandi	Independent Director	F
Vera Negri Zamagni	Independent Director	F

Board of Statutory Auditors

The Board of Statutory Auditors performs supervisory functions regarding compliance with the law and the bylaws, the adequacy of the administrative and accounting organization, and the proper administration of the Company. It coincides with the Internal Control and Audit Committee (CCIRC), which oversees the financial reporting and statutory audit process, ensuring transparency and compliance with good governance principles.

Name	Role	Gender
Diana Rizzo	Chair	F
Elena Lancellotti	Standing Auditor	F
Roberto Santagostino	Standing Auditor	M
Patrizia Cornale	Alternate Auditor	F
Giulia De Martino	Alternate Auditor	F
Eugenio Burani	Alternate Auditor	M

Remuneration policies

Datalogic's Remuneration Policy aims to:

• attract, motivate, and retain high-profile professional and managerial individuals
• incentivize the achievement of the strategic objectives and sustainable growth of the company
• align the overarching objective of creating sustainable shareholder value in the medium to long term with Management's interests, and to uphold the company's mission and values.

The fixed component of remuneration reflects the skills, experience, and contributions required for the assigned role. Non-monetary benefits encourage employee loyalty, while short-term incentives drive the achievement of annual budget objectives. Long-term incentives focus on creating shareholder value and aligning results with the Company's strategy, promoting resource loyalty and engagement [GOV-3, 27, 29a].

Short-term incentives (STI)

The short-term incentive system is divided into three main plans:

• Management Incentive Plan (MIP) For top positions and management, excluding commercial roles. Performance is measured both against corporate targets (Corporate Performance Factors) and individual targets (Individual Performance Factors)
• Individual Performance Bonus (IPB) For middle management and individual contributors in positions of particular importance. Performance is assessed based on the achievement of individual targets
• Sales Incentive Plan (SIP) For staff with commercial functions. Performance is measured against sales targets and strategic targets related to the commercial role.

Long-term incentives (LTI)

The long-term incentive plan, with a three-year time horizon, is reserved for top management and other strategic figures. The Performance Share Plan (PSP) provides for the assignment of Datalogic shares, commensurate with the level of responsibility and the achievement of Group targets defined at the beginning of the period.

Impact of sustainability objectives on performance

The short-term incentive system for management (MIP) includes an ESG objective: the Net Promoter Score (NPS), which measures customer satisfaction. Additionally, for 2024, a sustainability objective was incorporated into the Individual Performance Factors for the CEO, accounting for 15% of the overall individual performance evaluation.

In the long-term incentive plan (PSP), one corporate performance target involves the percentage of female managers and employees, weighted at 5% of the total [GOV-3, 28, 29b, 29c, 29d]. The Group is developing incentive and assessment systems tied to greenhouse gas emission reduction targets [E1.GOV-3, 13].

Approval and updating of incentive systems

Conditions and revisions of incentive systems, detailed in the Remuneration Policy, are approved annually by the Single Committee, then by the Board of Directors and the Shareholders' Meeting, ensuring alignment with corporate strategies and market best practices [GOV-3, 29e].

Statement on due diligence

The following table provides a mapping of the key elements of due diligence and the corresponding paragraphs in the Sustainability Reporting [GOV-4, 30, 31, 32].

	Key elements of due diligence	Paragraphs in the Sustainability Statement
a)	Integrate due diligence into governance, strategy and business model	GOV-2, GOV-3, SBM-1, SBM-3
	b) Involve stakeholders in all the key stages of due diligence	SBM-2, IRO-1
c)	Identify and assess negative impacts	SBM-3, IRO-1
	d) Act to address negative impacts	E1-2, E1-3, E5-1, E5-2, S1-1, S1-4, S2-1, S2-4, S4-1, S4-4, G1-1
e)	Monitor the effectiveness of actions and communicate	E1-4, E5-3, S1-5, S2-5, S4-5

Internal control and risk management for sustainability

Datalogic's internal control and risk management system for sustainability ensures the quality, reliability, and transparency of reported information, complying with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards [GOV-5, 34, 35].

The Procedure for preparing the Group's Sustainability Reporting outlines principles and processes for collecting, verifying, and consolidating sustainability data, guaranteeing accurate reporting of environmental, social, and economic impacts of business activities. The procedure applies to Datalogic S.p.A. and all related entities, excluding affiliates over which operational control is not exercised [GOV-5, 36a].

The approach to risk assessment and prioritization is similar to the process followed for the risk assessment related to Financial Reporting [GOV-5, 36b].

The main identified risks concern the completeness and integrity of sustainability data, the timely availability of information, consistency with regulatory standards, and the management of data from the value chain. To mitigate these risks, Datalogic has implemented a structured data collection system that involves direct engagement with responsible business functions and data owners, who are required to validate the data within their scope of responsibility. These data are then reviewed by the relevant persons in charge, who check for any significant deviations, consistency with available information, and alignment with comparable data [GOV-5, 36c].

Risk assessment is integrated into corporate processes through structured communication between the Sustainability Reporting Department and the main operational functions. The information is analysed to ensure consistency, completeness, and accuracy, and further details are requested from the relevant department heads if needed. The Sustainability Reporting is then reviewed and approved by the Board of Directors [GOV-5, 36d].

Periodic reporting on sustainability aspects and identified risks is ensured through regular meetings with the Board of Directors, the Single Committee, and the Sustainability Executive Committee. The reporting process also includes continuous updates to data collection and analysis methodologies to ensure compliance with current regulations and reference standards. [GOV-5, 36e].

DOUBLE MATERIALITY ANALYSIS

Process of identifying and assessing IROs

Datalogic Group identifies and assesses the impacts, risks, and opportunities related to sustainability using a methodology that integrates both internal and external analyses. After completing the context comprehension phase, which includes analysing the Group's activities, business relationships, the value chain, and relevant stakeholders, a long-list of impacts, risks, and opportunities was identified. This was done in accordance with the list of relevant topics, sub-topics, and sub-sub-topics, as required by application requirement 16 of ESRS 1.

The assessment of material impacts, risks, and opportunities (IROs) is conducted by the reporting unit, which operationally carries out the analysis. The defined methodology is applied to ensure a structured and consistent approach. The assessment considers impacts, risks, and opportunities without accounting for the mitigation actions in place for each. The material IROs were then submitted to the Sustainability Executive Committee, the CEO, and the Single Committee, before being approved by the Board of Directors, with acknowledgment from the Board of Statutory Auditors. The evaluation process is periodically reviewed, factoring in changes in regulatory, market, and operational contexts. The materiality of impacts and risks is updated in line with corporate developments. In this context, climate change and natural resource management factors were incorporated [IRO-1, 53d, 53e, 53g, 53h].

Impacts

The applied methodology enables the identification and prioritization of significant impacts based on their severity and probability, applying due diligence criteria for sustainability purposes [IRO-1, 53a].

This process involves assessing the Group's activities and business relationships, considering geographical factors, activities, and the evolution of regulations [IRO-1, 53bi, 53bii].

The process also included consultation with the stakeholders involved¹ to understand how they might be affected by the Group's activities. The information obtained was integrated into the risk management process. Consultation with environmental experts was used to better assess environmental dynamics and the risks related to natural resources [IRO-1, 53biii].

The Group has adopted an impact assessment system that prioritizes negative impacts based on three main criteria: magnitude, irreversibility, and scope, evaluated on a scale from one to five, along with their probability of occurrence, expressed as a percentage. For positive impacts, these are assessed based on their magnitude, scope, and relating probability, following the impact materiality assessment methodology defined in section 3.4 of ESRS 1 [IRO-1, 53biv]. The severity of an impact's consequences is assessed across five levels. An impact is considered minor if its consequences are negligible or moderate, and significant if its effects are material or highly material. The highest level of significance is assigned to impacts with extreme consequences and crucially material for stakeholders.

¹ See SBM-2

Irreparability reflects how difficult it is to remediate a negative impact. If an impact can be resolved easily in the short term, it is rated low. If it requires more complex, prolonged interventions, the score increases. Difficult-to-mitigate impacts in the medium term receive an intermediate score, while those that are nearly impossible to fix in the long term or irreversible are assigned the highest scores.

Scope measures the extent of the impact, both geographically and in terms of the number of people affected. An impact with limited effects receives the minimum score, while impacts extending to provincial, regional, and national levels are assigned intermediate scores. The highest score is given to impacts with global relevance that affect a large portion of the population or environment.

The probability of an impact occurring is expressed as a percentage, divided into six ranges: minimal (10%), low (20%), medium (30%), high (50%), and maximum (100%), reflecting the estimated frequency of the impact's occurrence.

The overall significance of the impact is determined by the sum of the scores assigned to magnitude, irreparability, and scope, multiplied by the probability of occurrence. This process helps identify priority impacts based on their overall materiality. This methodology allows the Group to identify which sustainability topics are most material for reporting and ensures that significant impacts are addressed appropriately.

The assessment of climate change impacts focused on greenhouse gas emissions from Group operations and the value chain. The methodology includes climate scenarios and projections of environmental vulnerability to estimate the magnitude and probability of negative impacts, such as those related to natural resource management, including water resources [E1.IRO-1, 20a].

The identification of greenhouse gas emission sources and other climate impacts was based on an analysis of operational activities and the value chain, considering the main emission categories. The assessment of the actual and potential impacts of the Group on climate change was based on the quantification of total emissions and the monitoring of environmental performance in line with industry standards.

The Group also assessed potential impacts from pollution, water management, waste generation and management, energy efficiency and resource inflows. In this context, the Group also assessed the potential impact on natural resources along the value chain, looking at higher risk activities and particularly vulnerable geographies.

In identifying material impacts related to business conduct, the Group has adopted an approach based on specific criteria, including the location of operations, the nature of the business, the sector in which it operates, and the structure of the operation. The analysis took into account the regulatory and socioeconomic context of the geographical areas where the Group operates, identifying impacts related to corporate governance, human rights, transparency in business practices, and integrity in supply chain management. [E2.IRO-1, 11a; E3.IRO-1, 8a; E4.IRO-1, 17b; E5.IRO-1, 11a; G1.IRO-1, 6].

While formal consultations with local communities have not been conducted, information regarding potential impacts has been thoroughly analysed and integrated into the risk management process to ensure an accurate and comprehensive assessment of possible consequences [E2.IRO-1, 11b; E3.IRO-1, 8b; E4.IRO-1, 17b; E5.IRO-1, 11b].

Risks and opportunities

Datalogic has implemented a procedure to assess risks and opportunities related to sustainability, considering factors such as climate change, regulatory changes, and market dynamics. Specifically, the connections between the impacts arising from Group activities and dependencies on the value chain have been analysed, taking into account the resources being sourced such as minerals, copper, silicon, and other essential materials for production, as well as the potential vulnerabilities along the value chain. These factors have been considered to understand how risks and opportunities arising from these dependencies along the supply chain can affect business operations.

As part of this process, Datalogic assessed the probability, magnitude, and nature of risks and opportunities by applying qualitative and quantitative thresholds, in line with the requirements of ESRS 1, section 3.3, on financial materiality. The assessment is based on criteria including potential financial impact, resource availability and cost, stakeholder relationships, and the degree of uncertainty involved.

The risk analysis considers potential variations in procurement costs and the availability of resources, ranging from negligible effects to scenarios of permanent depletion of key resources. The potential impact on relationships with stakeholders is also assessed, with effects ranging from minimal to permanent losses of strategic stakeholders or requests for contract renegotiation. On the opportunity side, the analysis looks at possible reductions in procurement costs, new availability of resources on favourable terms, and the potential to acquire new key stakeholders or renegotiate existing contracts favourably.

Financial exposure is measured on a scale from one to five, based on the impact on sales, costs, or assets. Minimal exposure corresponds to a negligible effect, less than three percent of EBITDA, with progressively higher levels assigned to more significant impacts, up to a maximum for impacts exceeding twenty percent of EBITDA.

The overall significance of risks and opportunities is determined by multiplying financial exposure by the probability of occurrence, using the same percentage ranges for impact assessment.

The Group uses risk assessment tools to quantify and monitor exposure to sustainability factors, ensuring that decisionmaking aligns with mitigation and adaptation strategies. The analysis of sustainability risks is integrated into strategic and operational planning processes, ensuring that emerging threats and opportunities are proactively managed. From the analysis, conducted according to the ESRS, no material risks or opportunities have emerged due to the company's dependence on natural and social resources [IRO-1, 53c].

The physical risks related to climate change were also considered, with extreme scenarios such as floods, droughts, and high temperatures taken into account. The assessment used the IPCC SSP5-8.5 scenario to estimate the vulnerability of the Group's assets and the most exposed geographical areas.

The process also included reviewing corporate activities and plans to identify potential sources of future emissions and other climate-related impacts. Additionally, the assessment considered both direct and indirect emissions, as well as the implications of the climate transition on operations and the value chain [E1.IRO-1, 20b, 21, RA 11, RA 15].

The Group also evaluated risks associated with transitioning to a low-carbon economy, particularly the impacts arising from the introduction of new greenhouse gas regulations, decarbonisation policies, and the adoption of clean technologies. These risks include the potential for increased costs to adapt to new regulatory standards, challenges in transforming business models, and adjusting to evolving customer expectations. The analysis also included transition scenarios aimed at limiting global warming to 1.5 °C, focusing on possible changes in customer behaviour and stricter regulations [E1.IRO-1, 20c, 21, RA 12, RA 15].

No risks or opportunities related to biodiversity have been identified, as the operational context and value chain do not highlight elements that require special treatment. The assessments take into account the evolving regulatory framework and industry best practices, ensuring ongoing monitoring of this issue for potential future developments. [E4.IRO-1].

Datalogic has also assessed opportunities arising from the ecological transition and the adoption of clean technologies. Opportunities arise from the growing demand for low-carbon solutions, which could open up new markets and product lines. The shift to a sustainable economy also offers opportunities to improve the efficiency of natural resource usage, such as water and energy, reducing operating costs and improving the Group's resilience to future impacts [IRO-1, 53f]. Furthermore, stricter emission policies and a growing focus on sustainability can create new business areas for the Group, offering a competitive edge advantage in the medium and long term. These opportunities were assessed by considering the impact that innovation and the adoption of more sustainable technologies could have on business operations, improving resource efficiency and reducing operational costs.

Material impacts, risks and opportunities

Datalogic has identified material impacts, risks, and opportunities affecting its business model and the upstream and downstream value chain. Key areas of focus include climate change, circular economy, working conditions with own operations, human rights in the value chain, information and security for customers and end-users, and supplier management, all of which influence corporate strategies and policies. These areas have implications for competitiveness, regulatory compliance, and operational performance [SBM-3, 48a, 48b].

The Group monitors these factors, assessing their positive and negative impacts on persons and the environment, which are analysed over three time horizons: short (<1 year), medium (1-5 years), and long-term (>5 years). The effects materialise directly through business activities and indirectly through relationships with suppliers and customers, making responsible management of the value chain crucial for ensuring operational continuity and compliance with ESG standards [SBM-3, 48c].

The financial implications of these factors can translate into variations in sales, investments, and operating costs, with sustainability and innovation emerging as key opportunities for maintaining competitiveness and mitigating risks. For this reason, Datalogic is taking measures to monitor its business model closely, assessing risk scenarios and sustainable growth strategies from both short-term and long-term perspectives [SBM-3 48f]. Since this is the first year the double materiality analysis has been conducted, a comparison can only be made with the impacts identified for the 2023 year. However, no significant changes have been identified compared to previous findings. For more information on the materiality assessment process, see the section "Process of identifying and assessing IROs" [SBM-3, 48g, 48h]. The material risks and opportunities for the Group did not show significant effects on the income results and on cash flows. [SBM-3 48d].

The Datalogic workforce includes direct employees, freelancers, and third-party staff. The Company monitors potential and current impacts on working conditions, skills development, and pay equity, ensuring compliance with safety standards and equal opportunities [S1.SBM-3, 14a, 14b, 14c]. The transition to more sustainable operations has not had material negative impacts on employment, but it represents an opportunity for retraining and professional development [S1.SBM-3, 14d, 14e].

In the value chain, impacts concern workers involved in sourcing and production. Datalogic applies due diligence processes to prevent human rights violations and ensure compliance with international standards on working

conditions. The positive impacts stem from adopting responsible purchasing practices and aligning with ESG standards [S2.SBM-3, 11].

For customers and end-users, the focus is on product quality and safety, data protection, and the quality of information. Datalogic monitors any risks related to regulatory compliance and the reliability of its solutions, with positive impacts resulting from innovation and improvement of customer experience [S4.SBM-3, 10].

			Impact		Financial
Topic / Subtopic	Positive	Negative	Curren t	Potential	Risk	Opp.	Material IRO description	Value chain	Involvement in impact generation	Time horizon
E1 Climate change
Climate		x	x				Negative impact on climate change caused by direct and indirect greenhouse gas emissions (Scope 1, 2, and 3) generated by business operations	The entire chain	Through its activities and as a result of its business dealings	< 1 year
change mitigation						x	Market appeal through information about its climate performance (e.g., Scope 3)	At Datalogic		between 1 and 5 years
					x		Negative reputation due to failure to meet SBTi targets	At Datalogic		>5
Climate					x		Costs to incur in the event of extreme weather events that may also compromise business continuity	At Datalogic		>5
change adaptation						x	Appeal of expenditure due to a higher percentage of revenue, CapEx and OpEx aligned with the EU taxonomy thanks to the adoption of a climate change adaptation plan	At Datalogic		between 1 and 5 years
Energy	x			x			Monitoring user energy consumption and providing recommendations to enhance energy efficiency throughout the product lifecycle	Downstream	Through its activities	between 1 and 5 years
		x	x				Energy consumption due to business activities	At Datalogic	Through its activities	<1 year
E5 Circular economy
		x	x				Pressure on resources due to the use of virgin materials not from recycled or recyclable sources	Upstream	As a result of its business dealings	<1 year
Resource		x	x				Pressure on resources due to the use of virgin materials not from recycled or recyclable sources	At Datalogic	Through its activities	<1 year
inflows					x		Risk of non-compliance of supplier production components with EU/national legislation and policy on products designed according to circular principles (e.g. proposed regulation on eco-design, right to repair, Agec law, etc.)	Upstream		between 1 and 5 years
		x	x				Generation of waste from production processes, including WEEE	At Datalogic	Through its activities	between 1 and 5 years
					x		Increase in regulatory fees due to the lack of a waste management system and partnerships with selected recycling companies	At Datalogic		between 1 and 5 years
Waste					x		Penalties due to non-compliance with the WEEE directive	At Datalogic		between 1 and 5 years
					x		Reputational harm due to the lack of take-back or recycling options for used or obsolete heating systems and non-compliance with the WEEE Directive	At Datalogic		between 1 and 5 years
S1 Own workforce
		x		x			Impact on the stability and financial security of workers due to the prevalence of temporary contracts	At Datalogic	Through its activities	between 1 and 5 years
		x		x			Failure to comply with contracted working hours	At Datalogic	Through its activities	between 1 and 5 years
Working		x		x			Failure to respect workers' rights regarding social dialogue	At Datalogic	Through its activities	between 1 and 5 years
conditions	x			x			Higher engagement and satisfaction rates among workers thanks to flexible working hours (e.g. smart-working program, part-time)	At Datalogic	Through its activities	between 1 and 5 years
		x		x			Temporary or permanent physical injuries, with potentially fatal consequences, for workers involved in workplace accidents	At Datalogic	Through its activities	<1 year
					x		Reputational harm caused by a poor employee work-life balance	At Datalogic	Through its activities	between 1 and 5 years
		x		x			Wage and/or opportunity gaps between male and female employees	At Datalogic	Through its activities	between 1 and 5 years
Equal treatment	x		x				Improvement of workforce skills thanks to the presence of training and retraining programs	At Datalogic	Through its activities	between 1 and 5 years
and opportunity		x		x			Lack of equal treatment among persons in the company, even in terms of geographical and corporate background	At Datalogic	Through its activities	between 1 and 5 years
for all					x		Risk of difficulties in developing innovative and efficient products due to a lack of critical skills (e.g. STEM)	At Datalogic		between 1 and 5 years
S2 Workers in the value chain
Other work related rights		x		x			Negative impact on workers and their well-being if Datalogic relies on suppliers not subject to due diligence analysis	Upstream	Through its activities and as a result of its business dealings	between 1 and 5 years
S4 Consumers and end-users
Information related		x		x			Potential mismanagement or data loss due to the lack of policies and poor interoperability between the Company's systems and third-party protocols	Downstream	Through its activities and as a result of its business dealings	between 1 and 5 years

impacts for consumers and/or end users	x		x			Positive impacts on customer and installer loyalty thanks to the information made available about the products	Downstream	Through its activities	between 1 and 5 years
					x	Litigation costs in the event of privacy breaches and cybersecurity violations (also due to connected products)	At Datalogic		between 1 and 5 years
Personal		x		x		Health and safety implications due to inadequate product safety and quality controls	Downstream	Through its activities	between 1 and 5 years
safety of consumers	x		x			The production of safety sensors by Datalogic helps improve workplace safety by reducing the risk of accidents among workers	Downstream	Through its activities	between 1 and 5 years
and/or end users					x	Litigation costs, reputational harm, and decline in sales in the case of non-compliant and malfunctioning products	At Datalogic		between 1 and 5 years
G1 Business conduct
Business	x		x			Positive impact on corporate culture thanks to the presence of structured Codes and policies	At Datalogic	Through its activities	>5
culture					x	Reputational harm and reduced appeal of expenditure due to the failure to achieve the sustainability objectives set by the company	At Datalogic		>5
Management of relationships		x		x		Negative repercussions for small and medium-sized suppliers in case of failure to deliver payments on time	Upstream	Through its activities	between 1 and 5 years
with suppliers including payment practices					x	Costs related to the adoption of sustainable practices and policies by suppliers and customers that have a direct impact on the cost of materials used (raw materials or finished products)	At Datalogic		between 1 and 5 years
	x					Ongoing training to employees on corruption	At Datalogic		between 1 and 5 years
Corruption and bribery		x				Damage to external stakeholders as a result of incidents of corruption and extortion within the Company	The entire chain		between 1 and 5 years

DISCLOSURE REQUIREMENTS

Identification of information to be disclosed

Datalogic Group has established the information to be disclosed regarding impacts, risks, and opportunities through a structured process based on double materiality analysis and following the guidelines and mapping tables contained in EFRAG Q&A ID 177, which link sustainability topics to the topical disclosure requirements set out by the ESRS standards. To ensure consistency and adherence to the principle of materiality, thresholds and criteria have been established in accordance with section 3.2 of ESRS 1. This approach allows for the identification and sharing of information that meets both regulatory requirements and stakeholder expectations, ensuring clear and transparent communication [IRO-2, 59].

Methods for submitting information

The report includes a structured ToC, based on the results of the materiality analysis, which lists the relevant paragraphs for each topic addressed. The ToCs, organized by chapters, correspond to the material sustainability topics defined by the ESRS standards and are placed at the beginning of each section of the document. The information is presented together with the information required by the relevant ESRS topical standard.

The following is a summary table that outlines the information required by the EU legislative acts indicated in Appendix B of the ESRS 1, specifying whether these elements have been assessed as not material. In cases where an element is not considered material, the expression "NM" ("Not Material") is used, in accordance with what is provided in paragraph 35 of the ESRS 1 [IRO-2, 54, 55, 56].

Disclosure Requirement and related datapoint		SFDR	Pillar 3	Benchmark s	EU Climate Lax	Location / materiality
ESRS 2 GOV-1	21(d)	Board's gender diversity	x		x
ESRS 2 GOV-1	21(e)	Percentage of board members who are independent			x
ESRS 2 GOV-4	30	Statement on due diligence	x
ESRS 2 SBM-1	40(d)i	Involvement in activities related to fossil fuel activities	x	x	x		NM
ESRS 2 SBM-1	40(d)ii	Involvement in activities related to the production of chemicals	x		x		NM
ESRS 2 SBM-1	40(d)iii	Involvement in activities related to controversial weapons	x		x		NM
ESRS 2 SBM-1	40(d)iv	Involvement in activities related to cultivation and production of tobacco			x		NM

ESRS E1-1	14	Transition plan to reach climate neutrality by 2050				x	NM
ESRS E1-1	16(g)	Undertakings excluded from Paris-aligned Benchmarks		x	x		NM
ESRS E1-4	34	GHG emission reduction targets	x	x	x
ESRS E1-5	38	Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)	x
ESRS E1-5	37	Energy consumption and energy mix	x
ESRS E1-5	40-43	Energy intensity associated with activities in high climate impact sectors	x
ESRS E1-6	44	Gross Scope 1, 2, 3 and Total GHG emissions	x	x	x
ESRS E1-6	53-55	Gross GHG emissions intensity	x	x	x
ESRS E1-7	56	GHG removals and carbon credits				x	NM
ESRS E1-9	66	Exposure of the benchmark portfolio to climate-related physical risks			x		Phase-in
ESRS E1-9	66(a)	Disaggregation of monetary amounts by acute and chronic physical risk		x			Phase-in
ESRS E1-9	66(c)	Location of significant activities at material physical risk		x			Phase-in
ESRS E1-9	67(c)	Breakdown of the carrying value of its real estate assets by energy-efficiency classes		x			Phase-in
ESRS E1-9	69	Degree of exposure of the portfolio to climate related opportunities			x		Phase-in
ESRS E2-4	28	Quantity of each pollutant listed in Annex II of the E-PRTR regulation	x				NM
ESRS E3-1	9	Water and marine resources	x				NM
ESRS E3-1	13	Dedicated policy	x				NM
ESRS E3-1	14	Sustainable oceans and seas	x				NM
ESRS E3-4	28(c)	Total recycled and reused water	x				NM
ESRS E3-4	29	Total water consumption in m3 per net revenue on own operations	x				NM
IRO-1 - E4	16(a)i	-	x				NM
IRO-1 - E4	16(b)	-	x				NM
IRO-1 - E4	16(c)	-	x				NM
ESRS E4-2	24(b)	Sustainable land / agriculture practices or policies paragraph	x				NM
ESRS E4-2	24(c)	Sustainable oceans / seas practices or policies	x				NM
ESRS E4-2	24(d)	Policies to address deforestation	x				NM
ESRS E5-5	37(d)	Non-recycled waste	x
ESRS E5-5	39	Hazardous waste and radioactive waste	x
SBM-3 - S1	14(f)	Risk of forced labour	x
SBM-3 - S1	14(g)	Risk of child labour	x
ESRS S1-1	20	Human rights policy commitments	x
ESRS S1-1	21	Due diligence policies on issues addressed by the fundamental ILO Conventions 1 to 8			x
ESRS S1-1	22	Processes and measures for preventing trafficking in human beings	x
ESRS S1-1	23	Workplace accident prevention policy or management system	x
ESRS S1-3	32(c)	Grievance/complaints handling mechanisms	x
ESRS S1-14	88(b)(c)	Number of fatalities and number and rate of work-related accidents,	x		x
ESRS S1-14	88(e)	Number of days lost to injuries, accidents, fatalities or illness	x
ESRS S1-16	97(a)	Unadjusted gender pay gap	x		x
ESRS S1-16	97(b)	Excessive CEO pay ratio	x
ESRS S1-17	103(a)	Incidents of discrimination	x

ESRS S1-17	104(a)	Non-respect of UNGPs on Business and Human Rights principles and OECD	x	x
SBM-3 - S2	11(b)	Significant risk of child labour or forced labour in the value chain	x
ESRS S2-1	17	Human rights policy commitments	x
ESRS S2-1	18	Policies related to workers in the value chain	x
ESRS S2-1	19	Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines	x	x
ESRS S2-1	19	Due diligence policies on issues addressed by the fundamental ILO Conventions 1 to 8		x
ESRS S2-4	36	Human rights issues and incidents connected to its upstream and downstream value chain	x
ESRS S3-1	16	Human rights policy commitments	x		NM
ESRS S3-1	17	Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines	x	x	NM
ESRS S3-4	36	Human rights issues and incidents	x		NM
ESRS S4-1	16	Policies related to consumers and end-users	x
ESRS S4-1	17	Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines	x	x
ESRS S4-4	35	Human rights issues and incidents	x
ESRS G1-1	10(b)	United Nations Convention Against Corruption	x
ESRS G1-1	10(d)	Protection of whistleblowers	x
ESRS G1-4	24(a)	Fines for violation of anti-corruption and anti bribery laws	x	x
ESRS G1-4	24(b)	Standards of anti-corruption and anti-bribery	x

ENVIRONMENTAL INFORMATION

CLIMATE CHANGE

ESRS Standards	Reference	Notes
GOVERNANCE
ESRS 2 GOV-3 - Integration of sustainability-related performance in incentive schemes		The disclosure is included in ESRS 2 GOV-3, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2.
Strategy
E1-1 - Transition plan for climate change mitigation		To date, Datalogic has not yet adopted a transition plan but intends to prepare an emissions reduction plan for climate change mitigation.
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	Resilience and adaptation to climate change	The disclosure is included in ESRS 2 SBM-3, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2. The disclosure regarding the resilience and adaptation analysis to climate change is instead addressed in this paragraph.
Impact, risk and opportunity management
ESRS 2 IRO-1 - Description of the processes to identify and assess material climate-related impacts, risks and opportunities		The disclosure is included in ESRS 2 IRO-1, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2.
E1-2 - Policies related to climate change mitigation and adaptation	Commitment to reducing carbon footprint

E1-3 - Actions and resources in relation to climate change policies	Climate transition solutions
Metrics and targets
E1-4 - Targets related to climate change	Building goals for a low
mitigation and adaptation	emission future
E1-5 - Energy consumption and energy	Energy consumption and
mix	energy mix
E1-6 - Gross Scope 1, 2, 3 and total GHG emissions	GHG emissions
E1-7 - GHG removals and GHG mitigation projects financed through carbon credits		It was not included in the Sustainability Reporting as Datalogic has not undertaken, nor does it intend to undertake in the short term, activities for the absorption or storage of greenhouse gases resulting from projects related to its own operations or the value chain.
E1-8 - Internal carbon pricing		It is not shown in the Sustainability Reporting, as Datalogic has not implemented an internal carbon pricing system, nor does it plan to do so in the short term.
E1-9 - Anticipated financial effects from material physical and transition risks and potential climate-related opportunities		Phase-in

STRATEGY

Resilience and adaptation to climate change

Datalogic Group has conducted a resilience and adaptation analysis to assess the undertaking's ability to cope with climate change and adapt to the challenges arising from extreme weather events and regulations related to the transition to a low-carbon economy. This analysis followed the principles outlined in the European Taxonomy and TCFD recommendations, considering both short-term (2024) and long-term (2050) climate scenarios.

Scope of resilience analysis

The resilience analysis focused on all the major operations of Datalogic Group, including its production sites. Direct physical risks were identified, such as temperature changes, heatwaves, and hydrological variability. Additionally, transition risks were considered, arising from the introduction of new environmental policies and the shift to lowemission energy sources. While most climate-related risks were covered in the analysis, some local factors, such as the risk of flooding for specific locations, were excluded when deemed not material [E1.SBM-3, 19a].

Methods and timing of the resilience analysis

The analysis was performed by evaluating climate scenarios with the support of third-party models specialized in assessing such risks. The scenarios, particularly the RCP 8.5 scenario, were used to simulate the impacts of climate change on each Datalogic Group site, taking into account the geographical specifics and local operations. The analysis considered both physical risks, such as extreme temperatures and variations in precipitation, and transition risks. While a detailed analysis based on the climate scenarios required by the ESRS standards was not conducted, a qualitative assessment was made, considering regulatory developments, the adoption of new technologies, and the rise of renewable energies. The analysis was conducted over time horizons ranging from 5 to 30 years, with regular reviews to

ensure alignment with scientific and regulatory developments [E1.SBM-3, 18, 19b].

Results of the resilience analysis

The results of the resilience analysis highlighted that Datalogic Group's most significant risks arise mainly from extreme temperatures and hydrological variability, potentially impacting production operations and employee safety. However, the Group has already implemented several adaptation measures, including upgrading air conditioning systems, optimising water resource management, and reviewing emergency plans to reduce remaining risks. Specifically, sites with higher exposure to heatwaves and hydrological variability, such as those in Italy and the United States, have upgraded their cooling systems and emergency plans to ensure operational continuity. The Group is also exploring measures to reduce the vulnerability of its production sites to climate change. Overall, the analysis showed that, despite

uncertainties regarding climate change evolution, Datalogic Group has taken adaptation actions to address future challenges and continues to monitor and update its climate change analyses regularly [E1.SBM-3, 19c, RA8b].

IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Commitment to reducing carbon footprint

Datalogic Group, through its Environmental and Sustainable Sourcing Policy, promotes the adoption of sustainable practices in business operations aimed at reducing environmental impact through energy efficiency and the spread of renewable energy as elements to reduce the carbon footprint.

Datalogic's commitment extends to suppliers and the value chain. The Group promotes the adoption of sustainable and responsible practices among its suppliers, encouraging the use of low environmental impact solutions and the monitoring of greenhouse gas emissions. This approach aims to integrate sustainability along the entire value chain, ensuring that the entire supply ecosystem contributes to Datalogic's sustainability objectives. The highest management level responsible for implementing the policy is the Chief Operating Officer, who ensures the integration of sustainability objectives into procurement processes and along the value chain. [E1-2, 24; MDR-P].

Building goals for a low-emission future

Datalogic currently has not set measurable results-oriented targets related to the impacts, risks, and opportunities associated with climate change, as it is mapping its carbon footprint, a crucial activity to gain a detailed understanding of the starting situation. The mapping will allow the identification of priority intervention areas and the establishment of tangible and measurable targets for emission reduction and energy efficiency improvement [MDR-T, 81bii]. While no specific objectives have been set, Datalogic still monitors the effectiveness of its sustainability policies. The

Group has implemented a continuous monitoring system for energy consumption, emissions, and environmental performance, aiming to collect useful data to define future targets and guide subsequent actions. This monitoring is still evolving, and progress will be measured starting from the baseline period defined once the carbon footprint mapping is completed [MDR-T, 81bi].

Climate transition solutions

Datalogic is dedicated to implementing structured actions based on a clear programmatic approach to reduce emissions and adapt to climate change. The Policy on environment and sustainable sourcing indicates the Group's commitment to defining a plan that includes tangible and measurable targets, once the initial analysis of the carbon footprint is completed and the main areas for intervention are identified [MDR-A, 62]. In 2024 too, Datalogic was committed to sourcing from renewable sources, including the purchase of electricity generated by photovoltaic systems installed on its own facilities by third-party operators. Specifically, the Group granted the use of the plant roof in Vietnam for the installation of solar panels, ensuring a direct supply of renewable energy [MDR-A, 68a, 68b, 68c, 68d]. Actions and allocations of economic resources are being defined [MDR-A, 69].

METRICS

Energy consumption and energy mix

Datalogic's production activities, focused on the assembly of components, have low energy requirement compared to more energy-intensive industrial sectors. However, energy consumption represents one of the most significant environmental aspects for the Group's facilities and locations worldwide. For this reason, the Company constantly monitors its consumption and adopts energy efficiency policies and sourcing from renewable sources to reduce its environmental impact.

Datalogic's energy consumption is divided into direct consumption, resulting from the use of natural gas, diesel, LPG, and petrol for heating and corporate mobility, and indirect consumption, related to the use of electricity. As part of its sustainability strategy, Datalogic is committed to increasing the procurement from renewable sources, including the purchase of electricity generated by photovoltaic systems installed on its own facilities by third-party operators. Specifically, the Group granted the use of the plant roof in Vietnam for the installation of solar panels, ensuring a direct supply of renewable energy [E1-5, 37, 38, 39, RA34].

Energy consumption and mix (MWh)2

	2024
	MWh	%
Fuel consumption from coal and coal products	-
Fuel consumption from crude oil and petroleum products	8,649.2	29.8%
Fuel consumption from natural gas	5,307.6	18.3%
Fuel consumption from other fossil sources	-
Consumption of electricity, heat, steam and cooling purchased or acquired from fossil sources	13,573.7	46.8%
Total energy consumption from fossil sources	27,530.4
Share of fossil sources in total energy consumption		95.0%
Consumption from nuclear sources	-
Share of consumption from nuclear sources in total energy consumption	-
Fuel consumption from renewable sources	-
Consumption of electricity, heat, steam and cooling purchased or acquired from renewable sources	1,454.0	5.0%
Consumption of self-generated non-fuel renewable energy	-
Total energy consumption from renewable sources	1,454.0
Share of renewable sources in total energy consumption		5.0%
Total energy consumption	28,984.4	100%

Energy intensity per net revenue

The energy intensity index was calculated using the revenue figure reported in the Group's consolidated financial statements. Most of Datalogic's companies fall under the definition of high climate impact activities according to the ESRS standard. Since the net revenue of the companies excluded from this classification has a negligible impact versus the Group's total, and to ensure greater reconciliation with the carrying amounts of the consolidated financial statements, the calculation of the energy intensity index was carried out considering the Group's net revenue and the Group's total energy consumption [E1-5, 40, 41, 42, 43].

	2024
Total energy consumption from activities in high climate impact sectors (MWh)	28,984.4
Net revenue from activities in high climate impact sectors (million €)	493.8
Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/ mn €)	58.7

GHG emissions

Datalogic monitors and reports its greenhouse gas (GHG) emissions in accordance with international standards and applicable regulatory requirements. The reporting scope significantly expanded versus last year; however, since no comparative data is provided, no impacts on the comparability of the reported emissions are noted [E1-6, 47].

The choice of emission factors is based on their geographical and sectoral relevance, ensuring accuracy in the estimation of emissions. The details of the methodologies adopted and the emission factors used are reported in the notes at the bottom of the emission tables [E1-6, RA39b].

No significant events or changes have been reported during the reporting period that had a material impact on the Group's overall emissions. However, the ongoing commitment to a more sustainable management of energy

² For the conversion of energy consumption into MWh, conversion factors derived from the DEFRA 2024 database have been applied. For methane gas, the values considered are 12.674 kWh per kilogram and 0.796 kg per cubic meter, while for heating diesel a coefficient of 9.891 kWh per litre has been applied. The LPG intended for heating has been converted using a factor of 12.762 kWh per kilogram.

For diesel used in road transport, the conversion was made using 9.891 kWh per litre, with an emission factor of 2.51279 kgCO₂ per litre and 0.16984 kgCO₂ per kilometre traveled. For automotive petrol, the applied coefficients were 8.969 kWh per litre, 2.0844 kgCO₂ per litre, and 0.1645 kgCO₂ per kilometre. For hybrid vehicles, an emission factor of 0.12607 kgCO₂ per kilometre has been adopted, while for plug-in hybrids, the reference amount is 0.0936 kgCO₂ per kilometre.

In the absence of direct data for certain offices, warehouses, and plants, energy consumption has been estimated using comparable internal parameters within the Group. For the plants, the reference was the plant in Castiglione Messer Raimondo, for the offices the office in Lippo, and for the warehouses the one in Modena.

consumption and the value chain could generate effects in the medium to long term, resulting in a gradual reduction of GHG emissions [E1-6, RA42c].

In this latter area, Datalogic uses contractual tools in conjunction with energy attributes represented by an on-site Power Purchase Agreement (PPA). Specifically, the Group has granted the use of the plant's coverage in Vietnam to a third-party operator, which installed photovoltaic systems from which Datalogic purchases the produced energy. This covers 28.9% of Vietnam's consumption and 5.2% of the Group's total consumption [E1-6, 44, 48, 49, 51, 52, RA46d, RA45d].

Greenhouse gas emissions (tCO2eq)

	2024
	tCO2eq	%
Scope 1 GHG emissions3
Gross Scope 1 GHG emissions	2,643.5	1.3%
Percentage of Scope 1 GHG emissions from regulated emissions trading systems	-	-
Scope 2 GHG emissions4
Gross Scope 2 GHG emissions (location-based)	5,458.4	2.7%
Gross Scope 2 GHG emissions (market-based)	6,756.0	3.3%
Scope 3 GHG emissions
Total gross indirect Scope 3 GHG emissions	192,585.4	95.7%
1. Purchased goods and services	119,544.3	59.4%
2. Capital goods	2,374.7	1.2%
3. Fuel and energy-related activities	265.5	0.1%
4. Upstream transportation and distribution	10,122.8	5.0%
6. Business traveling	3,589.5	1.8%
11. Use of products sold	56,190.7	27.9%
12. End-of-life treatment of products sold	22.9	0.0%
15. Capital expenditure	474.9	0.2%
Total GHG emissions
Total GHG emissions (location-based)	200,687.3	100%
Total GHG emissions (market-based)	201,985.0	100%

Categories of Scope 3 GHG Emissions

The calculation of Datalogic's Scope 3 greenhouse gas (GHG) emissions was carried out according to the principles and requirements of the Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011) of the Greenhouse Gas Protocol. The analysis included an assessment of the 15 categories of Scope 3 emissions, identifying those significant based on the estimated magnitude of emissions, materiality criteria, and the influence of the value chain. The emissions for each significant category were estimated using recognized methodologies⁵ , utilising primary data when available and specific emission factors. Overall, 7.0% of Scope 3 emissions were calculated based on primary data; specifically, Category 4 (Upstream Transportation and Distribution) was fully quantified thanks to data provided directly by logistics

³ Scope 1 emissions have been calculated by applying specific DEFRA 2024 emission factors based on the type of fuel used. For methane gas, a factor of 2,568.16441 kgCO₂ per ton has been adopted, while for diesel the reference amount is 2.51279 kgCO₂ per litre. LPG has been considered with a factor of 2,939.36095 kgCO₂ per ton. Regarding road transport, specific emission factors have been used for each type of fuel: 0.16984 kgCO₂ per kilometre for diesel, 0.1645 kgCO₂ for petrol, 0.12607 kgCO₂ for hybrid vehicles, and 0.0936 kgCO₂ for plug-in hybrid vehicles.

⁴ For the calculation of location-based Scope 2 emissions, the emission factors adopted refer to ISPRA 2024 for Italy, AIB 2023 Production Mix for European countries, TERNA 2019 for Turkey, Australian National Greenhouse Accounts Factors 2024 for Australia, EPA 2024 GHG Emission Factors Hub for the USA, IEA 2024 for Russia and Japan, and IGES Grid Emission Factors v.11.5 for other geographical areas.

In a market-based perspective, the AIB 2023 Residual Mix emission factors for Europe, the Australian National Greenhouse Accounts Factors 2024 for Australia, the Green-e® Residual Mix Emission Rates (2022 Data) for the United States, TERNA 2019 for Turkey, Russia, and Japan, and IGES Grid Emission Factors v.11.5 for the remaining geographical areas have been used.

Scope 2 emissions are shown in tons of CO₂, while the percentage of methane and nitrous oxide is negligible compared to the total greenhouse gas emissions (CO₂ equivalent), as highlighted by the relating technical literature.

⁵ The level of uncertainty in Scope 3 emissions estimates is directly related to the calculation methodology adopted: more specific methods tend to reduce uncertainty, while more generic methods can increase it. The hypotheses and estimates used are described in detail in the relevant section, ensuring transparency in the reporting process.

partners and Category 6 (Business Travel) was provided directly for 94% by corporate travel management systems [E1- 6, RA45g, RA46].

Purchased goods and services

Emissions deriving from the production of materials and services purchased by Datalogic during the relevant year represent one of the main sources of indirect emissions. The analysis was conducted using the spend-based method, applying emission factors to the aggregated spending data for 2024. The purchasing categories have been identified and classified by type of materials and services, allowing the application of specific coefficients for each sector. Emission factors were pulled from the EXIOBASE database, which provides specific values based on expenditure by commodity category.

Capital goods

Emissions derive from the production of capital goods purchased by Datalogic, such as machinery and equipment, excluding emissions resulting from their use (accounted for in Scope 1 and 2). The calculation was carried out using the spend-based method, applying emission factors to spending data taken from the company's asset register for the reporting year. Emission factors were pulled from the EXIOBASE database, with specific values for capital goods categories.

Fuel and energy-related activities

This category includes emissions associated with the production and distribution of fuels and energy purchased by Datalogic and consumed during the reporting period, excluding emissions already reported in Scope 1 and 2. The calculation is based on an activity-based approach, multiplying the volumes of fuel consumed by the corporate fleet by the corresponding emission factors. Wheel-to-tank factors from the DEFRA 2024 database have been applied, considering emissions generated during extraction, refining, and transportation of fuel.

Upstream transportation and distribution

Emissions derive from the transportation and distribution services of purchased materials and products, including inbound transportation from direct suppliers. Emission data was provided directly by the main logistics operators with whom Datalogic collaborates. The supplier-specific method has been applied, using actual data provided by carriers, based on the emissions generated by their services. The data and emission coefficients were provided by Datalogic's main logistics partners, including DHL, Kuehne+Nagel, FedEx, Expeditors, and others.

Business traveling

The emissions derive from the transportation of employees for business activities, including travel by public and private transport. The calculation was made using the distance-based method, based on the extraction of kilometres travelled by employees through the corporate travel management system ZTravel. The data on flights and other movements were collected directly from the travel agency. The conversion factors provided by DEFRA 2024 have been applied, with specific values for each mode of transport (air, train, car, bus).

Use of products sold

This category includes the emissions generated by the use of Datalogic products by end-users during their life cycle. The analysis was carried out by estimating the average energy consumption of the devices sold in 2024, based on the technical specifications of the products and the consumption during the various phases of use and the energy mix in the target markets. The estimate of energy consumption is based on assumptions related to the operating modes of the devices, distinguishing between consumption in active mode and in idle mode, on the usage parameters defined for each product line, including the average number of hours and days of operation, and on the expected lifespan. Such assumptions introduce a margin of uncertainty due to the variability of user behaviours and the actual usage conditions in different application contexts. The emission factors provided by carbonfootprint.com have been applied, which take into account the CO₂ emissions associated with electricity production in the various countries where the products are used.

End-of-life treatment of products sold

The emissions derive from the disposal and treatment of electronic waste (WEEE) generated by Datalogic products at the end of their life. The total weight of the products sold in 2024 has been estimated and divided among the various disposal destinations. For the portion not intended for recycling, the environmental impacts have been calculated based

on recovery and disposal rates in Europe. The applied factors derive from the DEFRA and Eurostat databases, with specific coefficients for the treatment of electronic waste.

Investments

Emissions are associated with Datalogic's investments in associates, including the indirect emissions of the entities in which the Group holds equity stakes. The spend-based method has been applied, allocating the emissions of the affiliates in proportion to Datalogic's stake and using financial data pulled from the financial statements of the investees. The factors were pulled from the EXIOBASE database, selecting the coefficients based on the NACE code of the investees.

Categories of Scope 3 GHG Emissions that are not material

Following the screening exercise of Scope 3 emissions, it has been determined that the following categories of emissions are not material for Datalogic, based on the reasons provided below [E1-6, RA46i].

Category Scope 3	Reason for exclusion
5. Waste generated by business activities	The production activities of the Group focused on assembly generate a small amount of waste and scrap, making this category not material. A benchmark analysis with comparables confirms the irrelevance of this category
7. Employee commuting	The commuting of employees occurs over small distances, making the impact of this category negligible for Datalogic
8. Leased assets	Datalogic does not hold significant leased assets
9. Downstream transportation and distribution	Transportation not arranged by Datalogic, but organized by customers, represents a marginal share, making this category insignificant
10. Processing of products sold	Datalogic does not produce or market intermediate or semi-finished products, thus excluding the materiality of this category
13. Leased-out assets	Datalogic does not provide leased-out assets, therefore this category is not applicable
14. Franchising	As Datalogic does not operate under franchising models, this category is not applicable

GHG intensity per net revenue

The intensity of Datalogic's greenhouse gas (GHG) emissions is calculated by relating the total GHG emissions expressed in metric tons of CO₂ equivalent to the Group's net revenue for the relevant year. This indicator assesses Datalogic's emission efficiency with regard to its economic performance and monitors progress in reducing its carbon footprint. The calculation is made considering both the location-based approach, which reflects the average energy mix of the electricity grid in the countries where Datalogic operates, and the market-based approach, which takes into account the specific energy sources purchased by the Company. To ensure transparency, the net revenue used in the calculation is reconciled with revenue reported in the Group's consolidated financial statements [E1-6, 53, 55, RA55].

	2024
Total GHG emissions (location-based) (tCO2eq)	200,511.4
Total GHG emissions (market-based) (tCO2eq)	202,076.4
Net revenue used to calculate GHG intensity (mn €)	493.8
Total GHG emissions (location-based) per net revenue (tCO2eq/mn €)	406.1
Total GHG emissions (market-based) per net revenue (tCO2eq/mn €)	409.3

CIRCULAR ECONOMY

ESRS Standards	Reference	Notes
Impact, risk and opportunity management
ESRS 2 IRO-1 - Description of the processes to identify and assess material resource use and circular economy related impacts, risks and opportunities		The disclosure is included in ESRS 2 IRO-1, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2
E5-1 - Policies related to resource use and circular economy	Policy for responsible use of resources
E5-2 - Actions and resources in relation to resource use and circular economy	Steps toward circularity
Metrics and targets
E5-3 - Targets related to resource use and circular economy	Circular integration objectives
E5-4 - Resource inflows	Resource inflows
E5-5 - Resource outflows	Waste
E5-6 - Anticipated financial effects from resource use and circular economy related risks and opportunities		Phase-in

IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Policy for responsible use of resources

Datalogic, through its Environmental and Sustainable Sourcing Policy, has begun integrating circular economy principles into corporate guidelines, focusing on resource efficiency, consumption reduction, and sustainable material management. The policy promotes reducing the use of virgin resources by increasing the use of recycled and secondary materials throughout the entire product life cycle. It also includes a commitment to responsible sourcing and the sustainable use of renewable resources to minimize the environmental impact of the Group's operations.

Datalogic's policy supports progressively integrating recycled materials into products and processes, with a focus on reducing non-renewable raw materials. It promotes innovation that factors in material sustainability and product durability, with an emphasis on design optimization to reduce overall resource use. [E5-1, 15a; MDR-P].

Regarding packaging, the policy defines the Group's approach to using recycled materials and reducing the environmental impact of packaging, through design choices that minimize weight and volume while improving logistical efficiency.

The Chief Operating Officer is the highest-ranking manager responsible for implementing the policy, ensuring the integration of circular economy and sustainability principles into procurement strategies and across the value chain [E5- 1, 15b; MDR-P].

Circular integration objectives

To date, Datalogic has not set measurable targets for the use of virgin or secondary resources, or for the procurement of renewable resources. This is because the Group is still developing its sustainable sourcing and recycled material integration strategies. While initiatives such as the introduction of recycled plastics and packaging optimization are ongoing, Datalogic is still in the planning and mapping phase of available opportunities to integrate these materials. The lack of measurable targets is therefore linked to the early stage of these initiatives and the need for a more thorough evaluation of progress to be made, before setting final targets [MDR-T, 81b].

Steps toward circularity

The Company is systematically working on the integration of recycled resources; the process of defining and implementing a circular economy strategy is under development. The Group has indeed launched several initiatives in terms of R&D and sustainable design and is working on defining a comprehensive programmatic plan for the circular

economy that includes defined targets, sustainable sourcing plans, or measurable targets for the use of recycled materials.

Starting 2023, Datalogic has introduced cardboard shredders in its warehouses that allow the reuse of cardboard as filling material for packaging, thus reducing the amount of waste directed to recycling.

Since 2019, Datalogic has been a WEEE Europe and WEEE Europe Battery Affiliate with the aim of promoting recycling and the proper management of end-of-life devices and batteries. The Group is therefore compliant with the WEEE Directive (Waste Electrical and Electronic Equipment 2012/19/EU), which ensures the proper management of waste electrical and electronic equipment (WEEE), marking its products with a specific symbol to facilitate separate collection, recovery, and proper disposal at the end of their life, thus minimising environmental impact. For the monitoring and classification of waste produced, each Group site applies procedures in accordance with current regulations, distinguishing hazardous waste from non-hazardous waste and filing the accompanying registration documents. Datalogic regularly sends data related to the management of products placed on the market and at the end of their life, collaborating with service partners and national registers to ensure full traceability of the waste flows generated [MDR-A, 68a, 68b, 68c, 68d]. Actions and allocations of economic resources are being defined [MDR-A, 69].

METRICS

Resource inflows

Datalogic manages its resource inflows with attention to the quality of materials and operational efficiency. The main resources used in business processes include products, materials, plants, and machinery used both in internal operations and along the upstream value chain.

The main categories of materials purchased include electronic components, including semiconductors, processors and printed circuit boards (PCBs), metal parts, obtained by machining, moulding or extrusion, and plastics, used for bodies and other structural components. This is complemented by cables and wiring, essential for the connectivity of devices, and optics, such as lenses and optical sensors for data reading and capture. Datalogic also sources batteries, used in portable devices, as well as LCD displays, crucial for industrial terminals. The company also uses packaging materials for the protection and distribution of products.

Among the resources used, Datalogic sources semi-finished products that contain critical materials, such as rare earths and strategic metals, used in the production of semiconductors, motor magnets, and advanced electronic components. Regarding infrastructure, Datalogic has manufacturing plants, offices, and research and development centres equipped with high-tech systems and machinery for the assembly and testing of devices. The Group invests in advanced technologies to optimize production processes and ensure high quality standards. The procurement of these resources occurs through a global network of suppliers, with whom Datalogic collaborates to ensure the quality and reliability of the materials used [E5-4, 30].

Resource inflows (t)6		2024
	t	%
Electronic components	1,952.2	12.6%
Metal parts	9,863.9	63.5%
Plastics	394.5	2.5%
Printed circuit boards (PCBs)	11.4	0.1%
Cables	1,579.5	10.2%
Optics	761.0	4.9%
Contract manufacturing	8.3	0.1%
Batteries	57.6	0.4%
Packaging	899.5	5.8%
Display	10.9	0.1%

The data related to the material flows used by Datalogic are derived from estimates, developed based on specific methodologies for each type of resource. ⁶ Specifically, lacking direct data on the mass of the purchased materials, a methodology based on weighing a representative sample of items was adopted, using the average values obtained to estimate the overall weight of the purchase based on the supplied units. This methodology covers 87.3% of the quantity of units purchased. Regarding packaging, the data was estimated through a survey conducted in 2023. The percentage of technical and biological materials varies depending on the type of resource used: for packaging, the share of biological materials is 16.9%, while the recycled material content amounts to 42.5%. For other commodities, given their nature, it is assumed that they are made of technical materials and that their recycled content rate is zero.

Waste

Datalogic manages the production and disposal of waste in compliance with applicable regulations, with the aim of reducing environmental impact and promoting resource reuse. The main waste streams generated by the Group concern materials arising from production processes, maintenance and laboratory activities, as well as from offices and any demolition operations [E5-5, 38a]. Materials in the waste include metals, plastics, electronic components, cardboard and other packaging materials [E5-5, 38b]. The Company does not generate radioactive waste, in accordance with Directive 2011/70/Euratom [E5-5, 39].

Waste (t)⁷ 2024

	T	%
Waste generated	804.9	100%
Hazardous waste not disposed of	1.1	0.1%
Undisposed hazardous waste directed to preparation for reuse	-	-
Undisposed hazardous waste directed to recycling	1.1	0.1%
Undisposed hazardous waste directed to other recovery operations	-	-
Non-hazardous waste not disposed of	702.7	87.3%
Undisposed non-hazardous waste directed to preparation for reuse	13.0	1.6%
Undisposed non-hazardous waste directed to recycling	649.7	80.7%
Non-hazardous undisposed waste directed to other recovery operations	40.0	5.0%
Hazardous waste directed to disposal	20.0	2.5%
Hazardous waste directed to disposal by incineration	18.2	2.3%
Hazardous waste directed to landfill disposal	1.8	0.2%
Hazardous waste directed to disposal through other operations	-	-
Non-hazardous waste directed to disposal	81.1	10.1%
Non-hazardous waste directed to disposal by incineration	9.8	1.2%
Non-hazardous waste directed to landfill disposal	71.3	8.9%
Non-hazardous waste directed to disposal through other operations	-	-
Non-recycled waste	101.1	12.6%

⁷ Lacking direct data, the quantities of waste generated by certain plants and a warehouse have been estimated using comparable internal parameters within the Group, based on facilities with similar characteristics in terms of activities and size. For foreign commercial offices, no estimate of the waste produced has been made, as it consists exclusively of urban waste, and its impact is negligible versus the total reported.

EUROPEAN TAXONOMY

EU Regulation 2020/852, known as the Taxonomy Regulation, came into effect on July 12, 2020. It marks the first European classification system designed to identify sustainable economic activities, aiming to improve transparency and consistency in classifying these activities while reducing the risk of greenwashing.

The regulations outline the criteria for assessing whether an economic activity qualifies as environmentally sustainable, focusing on six objectives: 1) Climate change mitigation - CCM, 2) Climate change adaptation - CCA, 3) Sustainable use and protection of water and marine resources - WTR, 4) Transition to a circular economy - CE, 5) Pollution prevention and control - PPC, 6) Protection and restoration of biodiversity and ecosystems - BIO.

The European Commission has adopted Delegated Acts⁸ in order to identify the economic activities that are eligible and aligned for an environmental objective and the criteria to be assessed, so that each economic activity contributes substantially and does not significantly harm any of the other objectives.

The activities carried out by a company that correspond to those listed in the Taxonomy are defined as eligible if included within the Delegated Acts, regardless of whether they meet the criteria established by it. Such eligible activities represent, therefore, activities that have the potential to align with the technical screening criteria, as they can potentially make a substantial contribution to at least one of the six defined objectives. An eligible economic activity is aligned if according to the fundamental principles:

• it meets the technical screening criteria (so-called "Substantially Contribute") contributing significantly to the achievement of at least one of the six environmental objectives;
• it does not cause any significant harm (so-called "Do no significant harm" or "DNSH") to any of the remaining five environmental objectives;
• it complies with minimum social safeguards (so-called "Minimum Safeguards Criteria" or "MSC"), understood as those policies that ensure compliance with a set of international principles on human and labour rights protection, anti-corruption, fair competition and taxation.

On the other hand, an eligible economic activity that does not comply with the above principles will be considered eligible but not aligned.

Datalogic Group's contribution

The reporting obligations and the general standards for defining KPIs

Article 8 of Regulation EU 2020/852 defines the reporting obligations within the framework of the Taxonomy and clarifies that these requirements apply to any undertaking subject to the publication of the Sustainability Reporting under Article 19-bis or Article 29-bis of Directive 2013/34/EU. The taxonomy requires providing information on how and to what extent own activities are aligned with economic activities considered environmentally sustainable.

Regarding non-financial undertakings, the communication particularly concerns the following metrics (so-called "key performance indicators" or "KPIs"):

• the proportion of revenue derived from products or services associated with economic activities that are considered environmentally sustainable
• the proportion of capital expenditure (CapEx) and the proportion of operating expenditure (OpEx) related to assets or processes associated with economic activities considered environmentally sustainable.

In July 2021, EU Regulation 2021/2178 was published, which supplements Article 8 of EU Regulation 2020/852 to further specify the content and presentation of the aforementioned KPIs, as well as the methodology to be followed for their measurement and the qualitative information that must accompany their reporting. In 2023, the Regulation was amended by Annex V of Regulation 2023/2486, with specific regard to the KPI reporting models.

For the reporting of 2024 KPIs, the Group must report on eligible and aligned economic activities for all six climate and environmental objectives.

Eligibility

In accordance with the regulatory requirements of Regulation 2020/852/EU as amended, for this fourth year of application, non-financial undertakings are required to verify whether their economic activities can be considered eligible or eligible and aligned in relation to environmental objectives (climate change mitigation and adaptation,

⁸ Delegated Act 2021/2139. Delegated Act 2021/2178, Delegated Act 2022/1214, Delegated Act 2023/2485, and Delegated Act 2023/2486.

sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems).

From the analysis carried out, the economic activities for which eligible revenue, capital expenditure, or operating expenditure have been identified with regard to 2024 are as follows:

Objective	Activity	Objective	Description of eligibility	Eligibility	Alignment
6.5 - Transport by motorbikes, passenger cars and light commercial vehicles	Transport by motorbikes, passenger cars and light commercial vehicles	CCM	Expenditure made and operating expense incurred for the renewal of the company car fleet	yes	no
1.2 - Manufacture of electrical and electronic equipment	Manufacture of electrical and electronic equipment	CE	Productions of devices for automatic data capture and industrial automation	yes	yes
4.1 - Provision of data driven IT/OT (information technology/operational technology) solutions	Provision of data-driven IT/OT (information technology/operational technology) solutions	CE	Software development for remote monitoring and predictive maintenance	yes	no
5.1 - Repair, redevelopment and remanufacturing	Repair, redevelopment and remanufacturing	CE	Repair of own devices	yes	no
5.2 - Sale of spare parts	Sale of spare parts	CE	Sale of spare parts	yes	no

Analysis of alignment to Taxonomy

After identifying the eligible economic activities, specific analyses of the technical criteria established by the above Regulations were conducted for each of the identified activities, in order to assess alignment.

The Group downstream of the analysis process has identified aligned activities. The analysis and its findings are given below.

Substantial contribution

The Group checked the technical screening criteria for substantial contribution for all eligible activities, specifically regarding:

• 6.5 Transport by motorbikes, passenger cars and commercial vehicles
• 1.2 Manufacture of electrical and electronic equipment
• 4.1 Provision of data-driven IT/OT (information technology/operational technology) solutions: the economic activity meets the technical screening criteria with regard to the above environmental objective as it complies with the requirements for management, repair, technical consulting, and monitoring
• 5.1 Repair, refurbishment, and remanufacturing: the economic activity meets the technical screening criteria with regard to the above environmental objective as it complies with the requirements related to the possibility of extending the useful life of products through repairs
• 5.2 Sale of spare parts: the economic activity meets the technical assessment criteria regarding the above environmental objective as it complies with the requirements related to the sale of spare parts.

Specifically, with regard to the core business activity 1.2 CE - Manufacturing of electrical and electronic equipment, it was verified that Datalogic products met the technical assessment criteria for substantial contribution. Specifically, the design is conceived for a long lifespan and for repair and warranty purposes, for reuse and remanufacturing, dismantling, recyclability, and does not contain hazardous substances. Additionally, the Company provides customers with all the necessary information about the options of using, repurchasing, selling and recalling the product, and appropriately labels the product with symbols indicating disposal methods for electrical and electronic equipment. Lastly, in terms of manufacturer responsibility, Datalogic complies with the WEEE (Waste Electrical and Electronic Equipment) regulations for the management of waste electrical and electronic equipment in the European Union, which ensures the proper management of waste electrical equipment (WEEE), marking its products with a specific symbol to facilitate recovery and proper disposal at the end of life, thus minimising environmental impact.

DNSH Criteria

For each eligible activity that met the criteria for substantial contribution to at least one of the six environmental objectives, a preliminary analysis was conducted to verify that the activities under review did not cause significant harm

to the other objectives of the Taxonomy, in compliance with the specific DNSH requirements. The Group specifically reviewed the requirements related to activity 1.2 - Manufacture of electrical and electronic equipment, highlighting the following:

• with regard to the DNSH related to the objective of Mitigating climate change, the absence of refrigerants within the products has been verified through screening of the products;
• with regard to the DNSH related to climate change adaptation, as required by "Appendix A" of the Regulation, an analysis of physical climate risks and the related planned mitigation actions has been carried out;
• with regard to the DNSH on the sustainable use and protection of water and marine resources, as required by "Appendix B" of the Regulation, the methods of water use (not provided for in the Group's production processes) and their management and use methods have been considered;
• with regard to the DNSH on the Prevention and reduction of pollution, it has been verified that none of the pollutants listed in "Appendix C" of the Regulation were part of Datalogic's supply and production chain and therefore were not contained in any product;
• with regard to the DNSH on the protection and restoration of biodiversity and ecosystems, a proximity analysis of production sites with regard to protected areas and areas with high biodiversity concentration has been conducted.

Minimum social safeguards

Article 18.1 of the EU Taxonomy Regulation describes the minimum safeguards, such as procedures implemented by a company to ensure that its economic activities are carried out according to internationally recognized principles, as outlined in the OECD Guidelines for Multinational Enterprises and the United Nations Guiding Principles on Business and Human Rights (UNGP). The guidelines identified by the Platform on Sustainable Finance in the "Final Report on Minimum Safeguards" published in October 2022 have also been considered.

Following the analysis, the Group concluded that compliance with the minimum safeguard guarantees has been adequately documented and confirmed. Specifically, the Group has implemented a process aimed at identifying, assessing, and addressing possible emerging risks related to human rights, taxation, fair competition, and the fight against corruption, as provided for in Article 3, letter c) of Regulation 2020/852.

Regarding the above-mentioned topics, the Group has implemented programs aimed at raising employee awareness about the importance of complying with laws and regulations related to such topics.

Following the analyses, the Group is not involved in legal proceedings or convictions related to human rights, tax evasion, unfair competition, or corruption.

Datalogic is dedicated to upholding the fundamental human rights of all its stakeholders: within operations, throughout the supply chain, and within the communities where the company is active. These rights are internationally recognized and enshrined in the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and the Convention on the Rights of the Child. Datalogic's commitment to human rights is reinforced by the achievement of SA8000 certification for Datalogic S.p.A., Datalogic S.r.l., and Datalogic IP Tech S.r.l., the international standard for certifying certain aspects of corporate management regarding corporate social responsibility such as respect for human rights, respect for labour law, protection against child exploitation, and guarantees of safety and health in the workplace. This is complemented by the principles identified in the Code of Conduct and the Human Rights & Social Accountability Policy.

Economic KPIs

In line with the required disclosure requirements, Datalogic has calculated the economic KPIs required by the Regulations, to define the shares of revenue, capital expenditure (CapEx) and operating expenditure (OpEx) attributable to taxonomy eligible and aligned activities. In 2024, 96.8% of revenue was eligible and 89.0% aligned. The proportion of eligible capital expenditure is 84.5% and the aligned proportion 72.7%, while 51.1% of OpEx is eligible and 14.5% aligned.

Contextual information

The following is the qualitative information required by the Regulations on the construction of the economic-financial KPIs required by the Taxonomy. Specifically, it explains how the percentages of revenue, capital expenditure (CapEx) and operating expenditure (OpEx) related to the Group's eligible and aligned activities and defined based on the guidance in Annex 1 to Delegated Act 2178/2021 are established. The present data refer to the Group's performance for 2024, including all Companies included in the reporting scope of the Consolidated Financial Statements. Revenue

• Denominator: total value of net revenue that form the definition of "Revenue" in the Group's Consolidated Financial Statements (493,767 €/000)

449,500.7 €/000 revenue from the sale of products 24,120.7 €/000 revenue from repair and warranty services (EaseOfCare) 2,616.7 €/000 revenue from the sale of spare parts 1,559.3 €/000 revenue from the sale of IT/OT solutions 15,969.8 €/000 revenue from other services and installations

• Numerator: net revenue derived from products and services associated with taxonomy eligible and aligned economic activities:

439,388.6 €/000 revenue from the sale of products

Capital expenditure

• Denominator: total value of capital expenditure that form the definition of the Group's "Total capital expenditure" (27,400.0 €/000). The calculation included increases to tangible and intangible assets in 2024 considered before amortisation, depreciation, write-down, and any write-back, including those resulting from restatements and impairments, for the year under review, and changes in Fair Value were excluded

19,919.0 €/000 capital expenditure in R&D projects 1,878.6 €/000 fixed assets IFRS16 1,365.7 €/000 capital expenditure in IT/OT projects 4,236.6 €/000 fixed assets related to self-built equipment, demo stock, machinery and production facilities, ICT assets, licenses and patents, furnishings, machinery

• Numerator: taxonomy-eligible and -aligned capital expenditure 19,919.0 €/000 capital expenditure in R&D projects

Operating expenditure

• Denominator: total value of operating expenditure, excluding expense considered general, expense for utilities such as electricity, gas, water, expense for fluids or reagents required in the operation of plants, machinery, and real estate, rentals, hydroelectric derivation fees, and expense for environmental offsets
  • 10,091.0€/000 (warranty repair costs)

5,101.5 €/000 non-capitalized R&D expense (such as part of personnel expense, consulting, etc…) 1,409.8 €/000 motor vehicle costs

1,399.7 €/000 non-capitalized R&D expense related to solution (such as part of personnel expense, consulting, etc…)

• Numerator: taxonomy-eligible and -aligned operating expenditure:
  • 5,101.5 €/000 operating expenditure related to the manufacturing of electrical and electronic equipment

Proportion of Revenue derived from products or services associated with taxonomy-aligned economic activities

Financial Year 2024		2024		Substantial contribution criteria						DNSH criteria (do no significant harm) (h)
Economic activities (1)	Co de (2 ) ( a)	Re ve nu e (3 )	Pr op or tio n o f R ev en ue 2 02 4 (4 )	Cl im at e c ha ng e m iti ga tio n (5 )	Cl im at e c ha ng e a da pt at io n (6 )	W at er (7 )	Po llu tio n (8 )	Ci rc ul ar E co no m y (9 )	Bi od ive rsi ty (1 0)	Cl im at e c ha ng e m iti ga tio n (1 1)	Cl im at e c ha ng e a da pt at io n (1 2)	W at er (1 3)	Po llu tio n (1 4)	Ci rc ul ar E co no m y (1 5)	Bi od ive rsi ty (1 6)	M in im um sa fe gu ar ds (1 7)	Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) turnover, 2023 (18)	Enabling activity category (19)	Transition al activity category (20)
		Currency (€ thousands)	%	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes/No	Yes/No	Yes/ No	Yes/ No	Yes/ No	Yes/ No	Yes/ No	%	E	T
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)		€/000
Manufacture of electrical and electronic products	CE - 1.2	439,388.6	89.0%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL	Yes	Yes	Yes	Yes	Yes	Yes	Yes	96.2%
Revenue from environmentally sustainable activities (taxonomy aligned) (A.1)		439,388.6	89.0%					89.0%		Yes	Yes	Yes	Yes	Yes	Yes	Yes	96.2%
Of which enabling		-	0%
Of which transitional		-	0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g)
Manufacture of electrical and electronic products	CE - 1.2	10,112.1	2.0%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL								0%
Provision of data-driven IT/OT (information technology/operational technology) solutions	EC - 4.1	1,559.3	0.3%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL								0%

Consolidated Annual Financial Report at December 31, 2024

Repair, redevelopment and remanufacturing	EC - 5.1	24,120.7	4.9%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL				0%
Sale of spare parts	EC - 5.2	2,616.7	0.5%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL				0%
Revenue from taxonomy eligible but not environmentally sustainable activities (not taxonomy-aligned activities) (A.2)		38,408.8	7.8%	0%	0%	0%	0%	0%	0%				0%
A. Revenue from taxonomy eligible activities (A.1+A.2)		477,797.4	96.8%	0%	0%	0%	0%	96.8%	0%				0%
B. Not taxonomy-eligible activities
Revenue from not taxonomy eligible activities (B)		15,969.8	3.2%
TOTAL (A+B)		493,767.2	100%

	Proportion Revenue/Total Revenue
	Taxonomy-aligned by Objective	Taxonomy-eligible by Objective
CCM	-	-
CCA	-	-
WTR	-	-
CE	89.0%	96.8%
PPC	-	-
BIO	-	-

Proportion of CapEx derived from products or services associated with taxonomy-aligned economic activities

Financial Year 2024		2024				Substantial contribution criteria				DNSH criteria (do no significant harm) (h)
Economic activities (1)	Co de (2 ) ( a)	Ca pE x ( 3)	Pr op or tio n o f C ap Ex 2 02 4 (4 )	Cl im at e c ha ng e m iti ga tio n (5 )	Cl im at e c ha ng e a da pt at io n (6 )	W at er (7 )	Po llu tio n (8 )	Ci rc ul ar E co no m y (9 )	Bi od ive rsi ty (1 0)	Cl im at e c ha ng e m iti ga tio n (1 1)	Cl im at e c ha ng e a da pt at io n (1 2)	W at er (1 3)	Po llu tio n (1 4)	Ci rc ul ar E co no m y (1 5)	Bi od ive rsi ty (1 6)	M in im um sa fe gu ar ds (1 7)	Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) CapEx, 2023 (18)	Enabling activity category (19)	Transitional activity category (20)
		Currency (€ thousands)	%	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes/No	Yes/No	Yes/No	Yes/No	Yes/No	Yes/No	Yes/No	%	E	T
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of electrical and electronic products	CE - 1.2	19,919.0 72.7%		N/EL	N/EL	N/EL	N/EL	Yes	N/EL	Yes	Yes	Yes	Yes	Yes	Yes	Yes	73.7%
CapEx of environmentally sustainable activities (taxonomy aligned) (A.1)		19,919.0 72.7%						72.7%		Yes	Yes	Yes	Yes	Yes	Yes	Yes	73.7%
Of which enabling		-	0%
Of which transitional			0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g)
Transport by motorbikes, passenger cars and light commercial vehicles	CCM - 6.5	1,878.7	6.9%	Yes	N/EL	N/EL	N/EL	N/EL	N/EL								0%
Manufacture of electrical and electronic products	CE - 1.2	-	0.0%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL								0%
Provision of data-driven IT/OT (information technology/operational technology) solutions	EC - 4.1	1,365.7	5.0%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL								0%

Consolidated Annual Financial Report at December 31, 2024

Repair, redevelopment and remanufacturing	EC - 5.1	-	0.0%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL				0%
Sale of spare parts	EC - 5.2	-	0.0%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL				0%
CapEx of taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities) (A.2)		3,244, 4	11.8%	0%	0%	0%	0%	0%	0%				0%
CapEx of Taxonomy-eligible activities A.1+A.2)		23,163.3	84.5%	0%	0%	0%	0%	84.5%	0%				0%
B. Not taxonomy-eligible activities
CapEx of not taxonomy-eligible activities		4,236.7	15.5%
TOTAL		27,400.0	100%

	Proportion CapEx/Total CapEx
	Taxonomy-aligned by Objective	Taxonomy-eligible by Objective
CCM	-	-
CCA	-	-
WTR	-	-
CE	72.7%	84.5%
PPC	-	-
BIO	-	-

Proportion of OpEx derived from products or services associated with taxonomy-aligned economic activities

Financial Year 2024		2024						Substantial contribution criteria		DNSH criteria (do no significant harm) (h)
Economic activities (1)	Co de (2 ) ( a)	Op Ex (3 )	Pr op or tio n o f O pE x, 20 24 (4 )	Cl im at e c ha ng e m iti ga tio n (5 )	Cl im at e c ha ng e a da pt at io n (6 )	W at er (7 )	Po llu tio n (8 )	Ci rc ul ar E co no m y (9 )	Bi od ive rsi ty (1 0)	Cl im at e c ha ng e m iti ga tio n (1 1)	Cl im at e c ha ng e a da pt at io n (1 2)	W at er (1 3)	Po llu tio n (1 4)	Ci rc ul ar E co no m y (1 5)	Bi od ive rsi ty (1 6)	M in im um sa fe gu ar ds (1 7)	Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) OpEx 2023 (18)	Enabling activity category (19)	Transitional activity category (20)
		Currency (€ thousands)	%	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes; No; N/EL; (b)(c)	Yes/No	Yes/No	Yes/No	Yes/No	Yes/No	Yes/No	Yes/No	%	E	T
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of electrical and electronic products	CE - 1.2	5,101.5 14.5%		N/EL	N/EL	N/EL	N/EL	Yes	N/EL	Yes	Yes	Yes	Yes	Yes	Yes	Yes	52.5%
Operating expenditure of environmentally sustainable activities (taxonomy-aligned) (A.1)		5,101.5 14.5%						14.5%		Yes	Yes	Yes	Yes	Yes	Yes	Yes	52.5%
Of which enabling		-	0%														0%
Of which transitional		-	0%														0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g)
Transport by motorbikes, passenger cars and light commercial vehicles	CCM - 6.5	1,409.8	4.0%	Yes	N/EL	N/EL	N/EL	N/EL	N/EL								0%
Manufacture of electrical and electronic products	CE - 1.2	-	0.0%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL								0%

Consolidated Annual Financial Report at December 31, 2024

Provision of data-driven IT/OT (information technology/operational technology) solutions	EC - 4.1	1,399, 7	4.0%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL				0%
Repair, redevelopment and remanufacturing	EC - 5.1	10,091.0 28.6%		N/EL	N/EL	N/EL	N/EL	Yes	N/EL				0%
Sale of spare parts	EC - 5.2	-	0.0%	N/EL	N/EL	N/EL	N/EL	Yes	N/EL				0%
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		12,900.5 36.6%		0%	0%	0%	0%	0%	0%				0%
A. OpEx of Taxonomy eligible activities A.1+A.2)		18,002.0 51.1%		0%	0%	0%	0%	51.5%	0%				0%
B. Not taxonomy-eligible activities
Revenue from not taxonomy eligible activities		17,237.6 48.9%
TOTAL (A+B)		35,239.6 100%

	Total OpEx/OpEx proportion
	Taxonomy-aligned by Objective	Taxonomy-eligible by Objective
CCM	-	-
CCA	-	-
WTR	-	-
CE	14.5%	36.6%
PPC	-	-
BIO	-	-

Model 1 - Nuclear and fossil gas related activities9

	Nuclear energy-related activities
1.	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2.	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3.	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
	Fossil gas-related activities
4.	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
5.	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
6.	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	NO

⁹ Delegated Regulation (EU) 2022_1214

SOCIAL INFORMATION

OWN WORKFORCE

ESRS Standards	Reference	Notes
Strategy
ESRS 2 SBM-2 - Interests and views of stakeholders		The disclosure is included in ESRS 2 SBM-2, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2.
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model		The disclosure is included in ESRS 2 SBM-3, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2.
Impact, risk and opportunity management
S1-1 - Policies related to own workforce	Commitment to the rights of its own workforce
S1-2 - Processes for engaging with own workers and workers' representatives about impacts	Engagement and dialogue with own workforce
S1-3 - Processes to remediate negative impacts and channels for own workers to raise concerns	Listening and resolution processes for own workers
S1-4 - Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	Outlook on own workers' well-being
Metrics and targets
S1-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	Objectives for improving working conditions
S1-6 - Characteristics of the undertaking's employees	Characteristics of the undertaking's employees
S1-7 - Characteristics of non-employee workers in the undertaking's own workforce		Phase-in
S1-8 - Collective bargaining coverage and social dialogue	Collective bargaining coverage and social dialogue
S1-9 - Diversity metrics	Diversity metrics
S1-10 - Adequate Wages	Compensation metrics and appropriate wages
S1-11 - Social protection		Phase-in
S1-12 - Persons with disabilities		Phase-in
S1-13 - Training and skills development metrics	Training and skills development metrics
S1-14 - Health and safety metrics	Health and safety metrics	Phase-in non-employee workers only
S1-15 - Work-life balance metrics		Phase-in
S1-16 - Compensation metrics	Compensation metrics and appropriate wages
S1-17 - Incidents, complaints and severe human rights impacts	Incidents, complaints and severe human rights impacts

IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Commitment to the rights of its own workforce

Datalogic is committed to respecting and promoting the human rights of its own workforce, in line with the principles set forth by the Workers' Human Rights Policy and the Code of Conduct. The Group adopts policies that protect the fundamental rights of workers, preventing and addressing risks related to human rights, including labour rights and the dignity of employees [S1-1, 20a; MDR-P]. The protection of workers is ensured through safe and healthy workplaces, in compliance with international and local health and safety regulations [S1-1, 23; MDR-P].

Specifically, Datalogic expressly prohibits forced labour, human trafficking, and child labour, in accordance with international laws [S1-1, 22; MDR-P]. The Group promotes fair and non-discriminatory treatment of any kind, ensuring equal opportunities at all stages of the work cycle, from selection to training, from remuneration to promotion [S1-1, 24a, 24b; MDR-P]. Any form of discrimination, including harassment and violence, is strictly prohibited, and the Company promotes policies in support of diversity and inclusion [S1-1, 24d; MDR-P].

To ensure that workers' rights are always respected, Datalogic has activated an anonymous and transparent reporting system, which allows for timely addressing of any human rights violations [S1-1, 20c; MDR-P]. The Company also promotes the active involvement of employees, considered crucial for improving working conditions and for Group performance [S1-1, 20b; MDR-P]. The policies adopted are in accordance with the relevant international instruments, including the United Nations Guiding Principles on Business and Human Rights [S1-1, 21; MDR-P].

Datalogic periodically updates its Group policies, in line with evolving regulations and best practices regarding human rights and social responsibility. The Company also requires its suppliers to adhere to the same ethical and social principles, promoting the protection of human rights along the entire supply chain [S1-1, 24c; MDR-P].

Objectives for improving working conditions

Datalogic Group looks to the future with determination and vision, placing the well-being, health, and safety of the people who contribute to its success every day at the core of its strategy. The company is firmly committed to charting a clear and ambitious path aimed at strengthening its positive impact on people and the workplace [MDR-T, 81bi].

With a strong focus on prevention and protection, the Group is committed to maintaining a serious incident rate of zero and steadily lowering the frequency of accidents, reinforcing a corporate culture grounded in safety and shared responsibility. A key pillar of this commitment lies in the ongoing investment in health and safety training, designed to heighten awareness, encourage responsible behaviour, and foster an increasingly secure and inclusive workplace.

In terms of employee engagement, Datalogic has adopted a strategic and methodical approach, launching a focused survey to gauge involvement and satisfaction across the organization. The outcomes of this analysis serve as the basis for shaping targeted action plans aimed at enhancing the employee experience and addressing the specific needs identified.

At the same time, the Group actively champions initiatives that support employee well-being and promote a healthy work-life balance, fully recognising that business success stems from valuing people.

While measurable targets have not yet been formally established, Datalogic consistently tracks progress through key indicators, such as:

• the frequency rate of accidents, as a crucial measure of workplace safety
• the findings of engagement surveys across various dimensions, to monitor satisfaction and pinpoint areas for improvement
• the actions implemented in response to employee input, with a focus on health, well-being, and work-life balance.

The reference period for assessing the evolution of these initiatives has been set annually, with data collection beginning in 2022. This approach not only ensures continuous performance tracking but also enables the agile adjustment of strategies, ensuring actions remain aligned with corporate targets. Datalogic reaffirms its dedication to cultivating a safe, dynamic, and engaging workplace, where employee involvement serves as a strategic force for the sustainable growth of the entire organisation [MDR-T, 81bi].

Outlook on own workers' well-being

The company has already energetically launched several impactful projects, such as continuous health and safety training and the employee engagement survey, underscoring a strong commitment to workforce well-being. Systematic and structured efforts are still in progress, as the organization devotes time and resources to thoughtful planning and the development of initiatives. This approach reflects the intent to ensure that each initiative is fully aligned with corporate priorities and adheres to regulatory standards.

Through SA8000 certification, currently adopted by the Italian companies (Datalogic S.p.A., Datalogic S.r.l., and Datalogic IP Tech S.r.l.), Datalogic strives to ensure working conditions that reflect the highest international standards. Although officially applied in Italy, the SA8000 principles guide the Group's global practices, fostering human rights and fairness in the workplace across all operational areas.

Additionally, Datalogic implements a health and safety management system to maintain a secure workplace in line with applicable regulations. The Group enforces preventive measures and monitoring activities to mitigate workplace accident and illness risks, fostering a culture of safety grounded in continuous training and staff awareness. The Company collects and evaluates data concerning accidents, including injuries, occupational illnesses, and work-related fatalities, also monitoring incidents involving third-party workers on its premises. The management system is regularly updated to enhance prevention and maintain high standards of safety and employee well-being.

Additionally, to improve the satisfaction rate of its employees while also ensuring equal treatment, the Group guarantees a welfare system that applies to all types of employees (including employees on part-time or fixed-term contracts) and in all countries where Datalogic operates, adjusting its elements according to their relevance in each geography. Starting from 2023, new measures aimed at improving the work-life balance were introduced: these included greater flexibility in working hours and the confirmation of a hybrid work model, allowing employees to manage their professional and personal lives more harmoniously; furthermore, "time-saving" services were introduced, such as an internal package delivery point.

In terms again of equal opportunities, in 2024 Datalogic extended its parenting support offerings originally aimed at employees with younger children, with initiatives such as the Kindergarten Bonus and optional maternity supplement, and by introducing new grants such as the Book Bonus targeted specifically at school-age children. The Company also encouraged team bonding through social initiatives, supporting volunteer organizations such as Casa Santa Chiara – Società Cooperativa Sociale in Bologna, La Mongolfiera Volunteer Organization, and the National Tumour Association (ANT).

Through this holistic approach, Datalogic not only reinforces employee engagement and well-being but also nurtures a corporate culture rooted in transparency, attentive listening, and the appreciation of its people. Its clear ambition is to create a workplace that is inclusive, supportive, and sustainable, where every employee feels they actively contribute to the Group's collective success.

Finally, to strengthen skills and mitigate risks tied to poor know-how in addressing the challenges set by the Group in the field of sustainability, several global training sessions were organized in 2024 to educate and raise awareness among workers on ESG-related topics:

• Workshops dedicated to the sustainability plan: in 2024 Datalogic began drafting the sustainability plan integrated into the business, involving top management in numerous two-hour sessions aimed at informing them about how the market and competitors were moving, training on how to translate the corporate plan according to objectives, actions, and targets, and raising awareness about ESG topics within the company.
• Sustainable procurement: the Chief Procurement Officer together with the Sustainability Department organized two days of training for the entire Purchasing Department with the aim of training and informing workers about the regulatory changes mandated by the CSRD and consequently the new actions to be implemented in scouting, selecting and accrediting suppliers, and especially in the selection of procurement materials. Additionally, an overview of all the new topics that interested the company was made, such as measuring the corporate carbon footprint, the sustainability plan, and the new reporting standards.
• R&D Green: promoted by the R&D function, a 4-hour training was provided to the entire R&D department regarding the new topics in the ESG field, the new reporting standards, the progress of the sustainability plan closely tied to the R&D function, and the possible product developments closely related to recycling and reuse.

To monitor the outcomes and effectiveness of the actions implemented by the Group to contribute to positive impacts and mitigate negative ones, Datalogic regularly carries out a series of activities: from active employee listening through climate analysis to performance evaluation. For more information, see the sections on "Listening and resolution processes for own workers" and "Metrics" of this chapter [S1-4, 38a, 38b, 38c, 38d, MDR-A, 68a, 68b, 68c, 68d]. Actions and allocations of economic resources are being defined. [MDR-A, 69]

Engagement and dialogue with own workforce

Datalogic views active employee engagement as a strategic pillar for effectively managing material actual and potential impacts on corporate sustainability. This commitment is supported by a structured process of listening and participation, designed to steer corporate decisions in line with employee expectations, needs, and well-being.

Engagement takes place mainly through direct worker dialogue and trade union representatives. By engaging its people and actively listening to employee feedback, Datalogic aims to create a positive work experience, enabling tangible initiatives.

The engagement process takes place on multiple levels. In Italy and France, the Unit Trade Union Representatives (RSU) are directly elected by the workers according to the provisions of law and contractual agreements, and are actively involved in matters within their remit. In Italy specifically, RSUs are assigned to all Group corporate entities and are present in every location.

Globally, the CEO organizes quarterly "Town Hall" meetings with the entire Group population, along with specific "Mini Town Hall" sessions in all Italian plants, also organized quarterly, for blue-collar workers who do not have access to the company email, to ensure that they are also actively involved in the discussions. After each Town Hall, open questions are collected from employees, with a feedback system to assess the satisfaction of the meeting and improve the effectiveness of engagement [S1-2, 27].

Listening and resolution processes for own workers

Datalogic adopts a strategic approach to workforce engagement, recognising active listening as a key factor in promoting corporate well-being and supporting sustainable growth. Engagement surveys are a central tool for gathering tangible insights into employees' work experiences and turning them into strategic levers to guide the Group's decisions. After conducting surveys in 2021 and 2023, Datalogic launched a pilot initiative in Vietnam in 2024, later expanding the project on a global scale. This development reflects the Company's commitment to fostering ongoing dialogue internationally, ensuring employees' voices are not only acknowledged but also factored into decision-making.

At the same time, Datalogic has set up a structured system to manage workforce impacts, aimed at promptly identifying and resolving any critical issues. The engagement strategy unfolds across multiple, interconnected channels: Quarterly Town Halls, engagement surveys, and an anonymous reporting system. This integrated model enables the early detection of discomfort or risk indicators, allowing for swift and focused interventions [S1-3, 32a, 32b, 33].

Supporting this framework, the Group promotes a culture grounded in transparency and the safeguarding of freedom of expression, reinforced by anti-retaliation policies that apply to all employees, including union representatives. Internal communications (email, notices, and company meetings) help raise awareness of these channels, ensuring every worker knows how to report concerns safely. For further details, see the section "Policy communication and whistleblower protection".

Lastly, the system for monitoring reports and engagement initiatives is designed to ensure effective, timely handling of issues, with a focus on continual process improvement. This integrated approach enables Datalogic not only to mitigate risks but also to reinforce its relationship with employees, laying the groundwork for an inclusive, resilient and forwardlooking workplace [S1-3, 32c, 32d, 32e].

METRICS

Characteristics of the undertaking's employees

Datalogic boasts a highly skilled workforce, with strong expertise in technology and engineering that aligns with the innovation demands of the automatic data capture and industrial automation sectors. The Group operates across multiple countries and ensures an adequate staff organization to manage its global activities, promoting a dynamic and flexible structure capable of responding to market needs [S1-6, 48].

The employment approach focuses on enhancing internal skills, offering professional development opportunities, and encouraging internal mobility. Datalogic implements policies designed to ensure an inclusive and stimulating workplace, with initiatives supporting employee growth and retention. The Company's commitment is reflected in the creation of training programs and the promotion of practices that foster integration and worker well-being [S1-6, 49].

Employee data is reported based on the number of people at the end of the reporting period, without using full-time equivalent (FTE) metrics. The Group does not apply conversion criteria for calculating FTEs, relying on the actual number of employees at 31/12 for reporting occupational data [S1-6, 50d].

Employees by gender

Total	2,751	100%
Men	1,682	61.1%
Women	1,069	38.9%
	2024

Employees by country

	2024
	n	%
Italy	1,047	38.1%
Vietnam	536	19.5%
United States of America	341	12.4%
Hungary	205	7.5%
Slovakia	201	7.3%
China	145	5.3%
Germany	56	2.0%
Spain	38	1.4%
France	32	1.2%
Czech Republic	25	0.9%
United Kingdom	17	0.6%
Netherlands	17	0.6%
Australia	13	0.5%
Japan	11	0.4%
Mexico	10	0.4%
South Korea	9	0.3%
Brazil	8	0.3%
Singapore	7	0.3%
Turkey	6	0.2%
Poland	5	0.2%
Sweden	5	0.2%
Other countries (with fewer than 5 employees)	17	0.5%
Total	2,751	100%

Employees by contract and gender

	EMEA		APAC		AMERICAS		Total
	n	%	n	%	n	%	n	%
Number of employees	1,666	60.60%	723	26.30%	362	13.20%	2,751	100%
Number of permanent employees	1,632	59.30%	519	18.90%	362	13.20%	2,513	91.30%
Number of fixed-term employees	34	1.20%	204	7.40%	-	-	238	8.70%
Number of employees with non-guaranteed
hours	-	-	-	-	-	-	-	-
Number of full-time employees	1,544	56.10%	713	25.90%	358	13.00%	2,615	95.10%
Number of part-time employees	122	4.40%	10	0.40%	4	0.10%	136	4.90%

	2024
	Women		Men		Total
	n	%	n	%	n	%
Number of employees	1,069	38.9%	1,682	61.1%	2,751	100%
Number of permanent employees	967	35.2%	1,546	56.2%	2,513	91.3%
Number of fixed-term employees	102	3.7%	136	4.9%	238	8.7%
Number of employees with non-guaranteed hours	-	-	-	-	-	-
Number of full-time employees	949	34.5%	1,666	60.6%	2,615	95.1%
Number of part-time employees	120	4.4%	16	0.6%	136	4.9%

Employees by gender and geographical area

	2024
	EMEA		APAC		AMERICAS		Total
	n	%	n	%	n	%	n	%
Number of employees	1,666	60.6%	723	26.3%	362	13.2%	2,751	100%
Women	695	41.7%	302	41.8%	72	19.9%	1,069	91.30%
Men	971	58.3%	421	58.2%	290	80.1%	1,682	91.30%

EMEA: Europe, Middle East and Africa APAC: Asia Pacific AMERICAS: North, Central and South America

Turnover

	2024
Total number of employees who left the undertaking during the reporting period	416
Employee turnover rate during the reporting period10	15.1%

The Group also tracks the voluntary turnover rate, which for 2024 stands at 7.2%.

Collective bargaining coverage and social dialogue

Datalogic values collective bargaining (both national and second-level) and social dialogue as essential mechanisms for safeguarding workers' rights and maintaining a fair and collaborative workplace. The Group adheres to local labour regulations, promoting active involvement of social partners and ensuring proper forms of employee representation in the countries where it operates. The Company is dedicated to fostering constructive dialogue between workers and management, supporting open discussions on working conditions, safety, and staff well-being.

At the Group level, approximately 60.7% of employees are covered by a national collective agreement.11 For employees not covered by collective bargaining agreements, Datalogic ensures that consistent standards are applied globally. This is achieved through the implementation of internal policies and the Code of Ethics, which take precedence over any less stringent legislation.

¹⁰ The employee turnover rate is calculated by comparing the number of employees who left the Group during the reporting period, including voluntary resignations, dismissals, retirements, and in-service fatalities, with the total number of employees at the end of the reporting period. ¹¹ Where required by law, 100% of employees are covered by a national collective agreement.

Coverage	Collective bargaining coverage	Social dialogue
rate	Employees - EEA12	Employees - Non-EEA	Workplace representation (EEA only)
		Australia
		China
		Indonesia
		South Korea	Czech Republic
	Czech Republic	Mexico	Germany
	Germany	Russia	Hungary
	Hungary	Singapore	Netherlands
0-19%	Netherlands	Turkey	Slovakia
	Slovakia	United Arab Emirates	Romania
	Romania	United Kingdom	Poland
	Poland	United States of America	Sweden
		Japan	Spain
		Turkey
		Canada
		South Africa
20-39%
40-59%
60-79%
	Italy
	France	Brazil	Italy
80-100%	Spain	Vietnam	France
	Sweden

Diversity metrics

Datalogic monitors gender distribution within its management [S1-9, RA71] and is committed to promoting gender equity and ensuring equal opportunities for professional growth. Additionally, it analyses the age distribution of the entire workforce to assess generational diversification and develop personnel management strategies in line with business needs and the labour market [S1-9, 64].

Number of senior executives by gender

	2024
Women	12	14%
Men	74	86%
Total	86

The low percentage of women in management roles is currently attributable to the concentration of women in Corporate management roles, which are fewer than management roles in Sales and R&D.

Number of employees by age group

	2024	%
Under 30	342	13%
Between 30 and 50	1,657	60%
Over 50	752	27%
Total	2,751

Training and skills development metrics

Average hours of training by gender

Datalogic offers its employees training and professional development opportunities, with the aim of improving skills and promoting continuous growth within the Group. The Company promotes targeted learning programs aimed at

¹² EEA: European Economic Area

strengthening technical and managerial skills, ensuring constant updates in line with technological and market developments. The approach to training is aimed at supporting the long-term employability of employees, contributing to the enhancement of internal talent and the organization's competitive edge [S1-13, 81, 82, 83]. For details on the training delivered in 2024, see the section "Outlook on own workers' well-being". [S1-13, 81, 82, 83]

	2024
	Women	Men	Total
Average number of training hours per employee - white collars	8.1	9.3	9.0
Average number of training hours per employee - blue collars	1.8	3.3	2.4
Average number of training hours per employee	4.9	8.0	6.8

Percentage of employees who participated in periodic performance and career development reviews

The performance evaluation process (PMP- Performance Management Process) based on a goal-oriented mindset and a culture of excellence continued at Datalogic in 2024. Periodic performance and professional development evaluation is provided to 85.3% of eligible employees at the Company. The performance evaluation process is an important time for gathering people's professional aspirations and building individual development plans aimed at sustaining performance over time and professional growth. Employees are evaluated on two aspects: achievement of targets and compliance with the values promoted by the company.

	2024
	Women	Men	Total
Percentage of employees who participated in periodic performance and career development reviews - white collars	84.9%	85.5%	85.3%
Percentage of employees who participated in periodic performance and career development reviews	43.1%	73.0%	61.4%

Health and safety metrics

Datalogic adopts a health and safety management system that covers the entire workforce, ensuring a safe workplace in line with current regulations. The Company collects and evaluates data concerning accidents, including injuries, occupational illnesses, and work-related fatalities, also monitoring incidents involving third-party workers on its premises. The management system is constantly updated to improve prevention and ensure high standards of safety and well-being for all staff [S1-14, 86, 87].

Own workforce
	2024
	Employees
Percentage of own workers covered by a health and safety management system based on legal requirements and (or) recognized standards or guidelines	84.9%
Number of fatalities in own workforce due to work-related accidents and illnesses	-
Number of fatalities in own workforce due to work-related accidents	-
Number of fatalities in own workforce due to work-related illnesses	-
Number of recordable workplace accidents for own workforce	9
Rate of recordable workplace accidents for own workforce13	1.9
Number of recordable incidents of work-related illness of own workforce	1
Number of days lost due to injuries and fatalities at work caused by work-related accidents, occupational diseases, and fatalities resulting from illnesses	97

¹³ Accidents that generate: death, work incapacity (absolute or partial), limitations in transfers, medical treatment, first aid intervention are included, even if they do not generate days of absence from work. Commuting accidents with cars owned by the employee are excluded. Frequency rates for accident indices were calculated as follows: (Number of accidents/Number of hours worked) x 1,000,000.

Other workers operating at the undertaking's sites

	2024
Number of fatalities due to work-related accidents and illnesses of other workers working at the undertaking's sites	-
Number of fatalities due to work-related accidents of other workers working at the undertaking's sites	-
Number of fatalities due to work-related illnesses of other workers working at the undertaking's sites	-

Compensation and salary metrics

Datalogic ensures that all employees receive a fair salary, in line with applicable benchmarks. The Group is committed to maintaining pay standards in accordance with current regulations, ensuring economic conditions that support the well-being and motivation of the workforce [S1-10, 69].

Datalogic monitors and reviews its compensation metrics to ensure fairness and transparency in employee remuneration. The Company reviews the percentage of the pay gap between female and male employees, as well as the ratio between the highest remuneration and the median pay of employees, in order to assess any internal inequalities and identify areas for improvement. This approach allows for understanding the extent of any disparities and promoting a fair and inclusive pay policy [S1-16, 95, 96].

Gender pay gap

The gender pay gap is calculated by including the gross hourly wage of all employees and applying the methodology set out by the ESRS standards. The analysis takes into account the pay differences between men and women, highlighting the changes across different professional levels and geographical areas.

The global presence of the Group significantly impacts the gender gap, with differences between the Italian and international context. Salary dynamics are affected by factors such as market conditions, local regulations, and the composition of the workforce in different countries.

Negative percentages indicate a female average salary higher than the male average, while positive percentages signal a male average salary higher than the female average [S1-16, 97a, 97c].

	Scope Professional category
			2024
Italy	Executive		-73.3%
	Manager		0.8%
	Employee		7.0%
	Worker		-4.0%
Group	Executive		-63.7%
	Manager		18.4%
	Employee		32.6%
	Worker		-7.6%
Total			44.7%

Total remuneration rate

The total annual remuneration rate is calculated by comparing the total annual remuneration of the highest-paid person in the undertaking to the median total annual remuneration of employees, excluding the individual with the highest salary from the calculation. The resulting value represents the rate between the highest pay and the median pay of the organization, providing an indication of the salary distribution within the Group.

The calculation includes all employees and considers the various components of pay, including base salary, allowances, bonuses14, commissions, profit sharing, benefits, and long-term incentives, in accordance with the company's pay policies [S1-16, 97b, 97c].

¹⁴ for the variable part of pay, target values, i.e., 100% of the achievable bonus, were considered

	2024
Total remuneration rate	36.7

Accidents, complaints and human rights impacts

Datalogic confirms that no work-related accidents, complaints, or serious impacts concerning human rights occurred within its workforce during the reporting period. The Group follows a stringent approach to human rights protection, implementing policies and procedures designed to prevent any form of violation and to ensure a secure and respectful workplace. Additionally, no fines, penalties, or compensation claims were reported for these topics, underscoring the effectiveness of the actions implemented to safeguard workers and comply with international standards and applicable regulations [S1-17, 101, 102].

	2024
Number of incidents of discrimination	-
Number of complaints submitted through the reporting channels of own workers	-
Number of complaints submitted to the National Contact Points for OECD multinational enterprises	-
Amount of fines, penalties, and material compensation following violations of social factors and human rights	-
Number of serious human rights issues and incidents related to own workforce	-
Number of serious human rights issues and incidents related to own workforce that represent violations of the United Nations Global Compact Principles and the OECD Guidelines for Multinational Enterprises	-
Amount of fines, penalties, and material compensation for serious human rights issues and incidents related to own workforce	-
Number of serious human rights violations in which the undertaking acted as a guarantor for the persons involved	-

WORKERS IN THE VALUE CHAIN

ESRS Standards	Reference	Notes
Strategy
ESRS 2 SBM-2 - Interests and views of stakeholders		The disclosure is included in ESRS 2 SBM 2, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model		The disclosure is included in ESRS 2 SBM 3, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2
Impact, risk and opportunity management
S2-1 - Policies related to workers in the value chain	Policies for the protection of workers in the value chain
S2-2 - Processes for engaging with value chain workers about impacts	Monitoring and involvement of workers in the supply chain
S2-3 - Processes to remediate negative impacts and channels for value chain workers to raise concerns	Monitoring and involvement of workers in the supply chain
S2-4 - Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions	Actions to develop in the supply chain
Metrics and targets
S2-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material	Objectives for social management of suppliers

risks and opportunities

IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Policies for the protection of workers in the value chain

Datalogic Group is committed to respecting and advancing human rights along the entire value chain, extending the principles of its human rights policy for workers to those of its suppliers. The Group ensures that workers in the value chain are treated with dignity, offering them safe, respectful conditions aligned with international standards [S2-1, 16, 17a; MDR-P]. This commitment includes protection from the risks of human trafficking, forced labour, and child labour, explicitly banning such practices along the entire value chain [S2-1, 18; MDR-P].

The Company values the involvement of both workers and suppliers, encouraging a culture of transparency and cooperation that supports well-being and professional development of workers [S2-1, 17b; MDR-P]. In the event of violations or negative impacts on human rights, Datalogic has put measures in place to promptly resolve them, ensuring effective and appropriate responses [S2-1, 17c; MDR-P].

Datalogic's human rights policy for workers in the value chain aligns with the United Nations Guiding Principles on Business and Human Rights, the ILO's declarations on fundamental principles and rights at work, as well as the OECD Guidelines for Multinational Enterprises. The Group also monitors any incidents of non-compliance with these principles and responds appropriately based on the severity of the reports [S2-1, 19; MDR-P]. Datalogic has also adopted a Supplier Code of Conduct that all its business partners must comply with, which clearly defines the obligations related to the treatment of workers and the respect for human rights. Starting from 2024, suppliers in the accreditation phase must also complete a self-assessment in which the supplier must declare whether they align with the principles related to the Datalogic Code of Conduct, the SA8000 principles, and ESG.

Objectives for social management of suppliers

Datalogic Group has not yet defined specific measurable targets for workers in the value chain. However, the Group has launched a series of initiatives to gradually assess the main impacts of its supply chain on sustainability topics. Among these, a plan provides for the assessment of suppliers' sustainability risks, which will focus on assigning a sustainability rating to suppliers based on risk mapping. Although these plans are under development, tangible measurable targets have not yet been set [MDR-T, 81bi].

Datalogic aims to progressively integrate sustainability risks into supplier evaluation, with the goal of improving supply chain management and minimising negative impacts. Progress will be measured through the sustainability rating assigned to suppliers, and the baseline period for measuring progress will be defined once the risk mapping and rating system is fully operational. To date, the start of this process is expected in the coming years, with the ongoing implementation of the assessment measures [MDR-T, 81bii].

Actions to develop in the supply chain

The Company has not yet adopted structured programmatic actions regarding workers in the value chain, although it has initiated certain developing initiatives, such as the assessment of suppliers' sustainability risks and the creation of a rating system. Starting from 2024 in fact, suppliers in the accreditation phase must complete a self-assessment in which the supplier must declare whether they align with the principles related to the Datalogic Code of Conduct, the SA8000 principles, and ESG. This system marks a first step to monitor the possible impacts related to human rights and the working conditions of workers especially in the upstream part of the value chain. Further specific actions to manage workers' rights along the supply chain are still being implemented, with the aim of defining a monitoring and evaluation system for suppliers that can lead to a more efficient and sustainable management of the workforce in the value chain. The Group is designing and planning these initiatives, which will be followed by the identification of detailed actions and tangible objectives [S2-4 32a, 32b, 32c, MDR-A, 68a, 68b, 68c, 68d]. Actions and allocations of economic resources are being defined. [MDR-A, 69]

Monitoring and involvement of workers in the supply chain

Unlike its own workforce, where engagement occurs through direct channels, Datalogic has not adopted a general process to directly involve workers in the value chain. The Company has chosen instead to focus on assessing the sustainability of suppliers and monitoring supply chain risks [S2-2, 24]. Under this strategy, Datalogic has not provided workers in the value chain with specific channels to express their views.

While there are no direct channels, the Company monitors and assesses the sustainability risks of suppliers, with the aim of mapping risks and assigning a sustainability rating. This approach guides business decisions regarding supply chain management, ensuring that any negative impacts are monitored and addressed. In essence, although lacking direct channels for workers in the value chain, Datalogic is committed to actively monitoring the sustainability of suppliers and managing associated risks [S2-3, 29].

CONSUMERS AND END-USERS

ESRS Standards	Reference	Notes
Strategy
ESRS 2 SBM-2 - Interests and views of stakeholders		The disclosure is included in ESRS 2 SBM-2, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model		The disclosure is included in ESRS 2 SBM-3, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2
Impact, risk and opportunity management
S4-1 - Policies related to consumers and end-users	Commitment to quality and customer protection
S4-2 - Processes for engaging with consumers and end-users about impacts	Engaging and listening to customers
S4-3 - Processes to remediate negative impacts and channels for consumers and end-users to raise concerns	Service channels and customer complaint management
S4-4 - Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions	Action plans for customer support
Metrics and targets
S4-5 - Targets related to managing material negative impacts, advancing positive impacts, and managing material	Monitoring customer satisfaction

risks and opportunities

IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Commitment to quality and customer protection

Datalogic Group, through its Policy on customers and end-users, ensures the quality and safety of its products and services, fully meeting the needs of customers and end-users. The Group is committed to providing high-quality technology solutions that meet strict reliability and performance standards to optimize efficiency and user safety. Additionally, Datalogic is dedicated to ensuring that all product information is clear, comprehensive, and easily accessible, empowering customers to make well-informed decisions.

The Policy on customers and end-users includes provisions for warranty and after-sales support, guaranteeing that customers have access to skilled customer service professionals ready to address any product-related concerns. Datalogic also upholds customer privacy by safeguarding personal data in full compliance with international regulations. This policy is designed to fulfil the needs for quality and transparency toward customers and end-users, while reinforcing the company's commitment to upholding consumer rights. Specifically, Datalogic has implemented measures to remediate any negative impacts on customers, offering return and refund policies, along with ensuring effective management of product and service-related issues. Such measures respond to the Company's commitments to protect consumer rights, including those related to safety, quality, transparency, and privacy [S4-1, 16; MDR-P].

The Policy on customers and end-users fully aligns with internationally recognized standards. Specifically, the protection of consumer rights is a core element of the Group's policy. Datalogic adopts practices in line with the United Nations Guiding Principles on Business and Human Rights, while focusing on protecting customers through quality assurance measures, transparency in information, product safety, and personal data protection. Datalogic ensures that all information provided to customers is complete and accurate, ensuring that business policies respect the rights and needs of consumers according to applicable international and local laws [S4-1, 17; MDR-P].

Monitoring customer satisfaction

The Company has stated its intention to focus on strategic objectives aimed at continually improving the customer experience, with an emphasis on maintaining and increasing customer satisfaction levels. This will be monitored through the Net Promoter Score (NPS), a key indicator of loyalty and satisfaction [MDR-T, 81bi]. The Group plans to progressively enhance the NPS by continuously improving service levels. The measurement base period is set for 2024, and in addition to the Group's overall data, NPS results will be analysed separately for the different business segments (Data Capture and Industrial Automation) [MDR-T, 81bii].

Action plans for customer support

The Group is implementing structured and programmatic actions aimed at achieving customer satisfaction objectives, focusing on the most material areas identified by the NPS. The management of service levels is monitored internally by the functions in charge. The Company plans to develop action plans that will gradually arise from analysing the collected responses. Specifically, Datalogic has implemented measures to remediate any negative impacts on customers, offering return and refund policies, along with ensuring effective management of product and service-related issues. Such measures respond to the Company's commitments to protect consumer rights, including those related to safety, quality, transparency, and privacy [MDR-A, 68a, 68b, 68c, 68d]. Actions and allocations of economic resources are being defined [MDR-A, 69].

Engaging and listening to customers

The Group employs several measures to collect feedback and guide its business decisions, ensuring that customers are central to the decision-making process. Datalogic's primary objective is to maintain high satisfaction levels and continuously improve the quality of its service. The Group directly involves customers, mainly through Net Promoter Score (NPS) activities and satisfaction surveys. While no formal representatives or delegates are involved, Datalogic directly obtains customer perspectives through these initiatives, particularly through survey responses and feedback collection from a selected list of key customers who account for 80% of sales. This approach ensures that customers can freely express their views on product and service quality [S4-2, 20a].

Engagement primarily occurs during post-purchase feedback phases and service quality monitoring. NPS campaigns are conducted annually (from October to January) and are supplemented by periodic surveys and direct surveys, such as those related to customer service and customer satisfaction. The engagement includes multiple-choice questions, but also the opportunity for customers to provide open-ended opinions. Engagement frequency is annual for NPS and ongoing for monitoring customer service performance [S4-2, 20b].

The Customer Support function coordinates and manages the engagement of customers and end-users. The customer service management team ensures that the collected feedback guides company policies and decisions regarding product and service improvements. The results of the surveys are analysed and used to continuously improve the customer experience and the quality of support [S4-2, 20c]. The effectiveness of engagement is assessed primarily through the Net Promoter Score (NPS). Additionally, the survey results are used to define corrective actions and optimize the service. The metrics for NPS and service level KPIs, such as response and complaint resolution times, serve as indicators to measure the success of engagement initiatives [S4-2, 20d]. Datalogic ensures that all customers, regardless of their situation, can access the necessary feedback and support tools to express their views and receive assistance [S4-2, 21].

Service channels and customer complaint management

Datalogic's approach to addressing negative impacts experienced by customers is based on proactive complaint management. If significant product or service problems occur, Datalogic takes immediate steps to resolve the situation, which may include product replacement, refund, or technical support intervention. The effectiveness of these remedies is assessed through continuous monitoring of customer satisfaction and tracking of complaint response and resolution times [S4-3, 25a].

Customers can communicate through the web form on the site, which allows them to direct their request straight to the relevant team (customer support, service team, etc.). Communications are managed through the Dynamics system, which routes tickets based on the relevant area. These channels are made available directly by the Group and are monitored to ensure that concerns are properly addressed [S4-3, 25b].

The Company supports the availability of such channels through its Customer Support team and requires its business partners to ensure that customers can easily access points of contact to express concerns. Complaint management is carried out in close collaboration with suppliers and distributors, who are informed about the support processes and the channels for managing issues [S4-3, 25c].

The issues raised by customers are controlled and monitored through the ticket management system and the continuous feedback received through surveys. Datalogic ensures that all complaints are handled promptly, with constant follow-up to verify their complete resolution. Additionally, periodic quality checks are conducted to ensure that issues are addressed effectively and that communication channels are always accessible and functional [S4-3, 25d]. The Group ensures that customers and end-users are aware of these communication channels through internal communication and the promotion of feedback processes across various channels, such as the website and direct communications via surveys. Additionally, the Group has adopted protection policies against retaliation, ensuring that customers who raise concerns are protected from any negative consequences arising from their feedback activity [S4- 3, 26].

METRICS

Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a globally recognized metric also used by Datalogic to measure customer satisfaction and loyalty, assessing their willingness to recommend the company's products and services to other industry professionals, business partners, or colleagues. The score, ranging from -100 to +100, is calculated by subtracting the percentage of detractors (less satisfied customers) from the percentage of promoters (highly satisfied customers), while neutral or moderately satisfied customers do not influence the result.

The NPS represents a strategic indicator for Datalogic, as it provides a clear view of the perceived value of its products and services in the market. The Group regularly analyses the results of the NPS, although not validated by an external body, to identify areas for improvement, with particular attention to technical support, delivery times, and the quality of the offered solutions. The method allows for simple and direct feedback collection, and Datalogic also sets minimum annual response targets in order to obtain a representative sample to have an accurate picture of market trends [MDR-M, 77].

	2024
Net Promoter Score	47

GOVERNANCE INFORMATION

BUSINESS CONDUCT

ESRS Standards	Reference	Notes
GOVERNANCE
ESRS 2 GOV-1 - The role of administrative, management and supervisory bodies		The disclosure is included in ESRS 2 GOV 1, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2
Impact, risk and opportunity management
ESRS 2 IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities		The disclosure is included in ESRS 2 IRO-1, section 'General Information', in accordance with Appendix C, which sets out the requirements applicable in conjunction with ESRS 2
G1-1 - Business conduct policies and corporate culture	Policies on business culture and conduct
G1-2 - Management of relationships with suppliers	Management of relationships with suppliers
G1-3 – Prevention and detection of corruption and bribery	Policies on business culture and conduct
Metrics and targets
G1-4 - Incidents of corruption or bribery	Confirmed incidents of corruption or bribery
G1-5 - Political influence and lobbying activities		Not material
G1-6 - Payment practices	Payment practices

IMPACT, RISK AND OPPORTUNITY MANAGEMENT

Policies on business culture and conduct

Datalogic promotes a corporate culture based on values of ethics, transparency, integrity, and responsibility. The Code of Conduct and Organizational Model 231 establish the guidelines to ensure business behaviours in compliance with legal and moral standards. These principles are integrated with sustainability objectives, innovation, and respect for human rights, so that every decision and activity is consistent with these values. The corporate culture is continuously promoted through training, communication, and the involvement of all employees, who are encouraged to follow the Group's values in every activity carried out. The functions in charge periodically assess the effectiveness of the ethics and conduct policies to ensure that they meet the required standards of behaviour [G1-1, 9].

Combating corruption and reporting mechanisms

The Company has implemented strict policies to prevent and manage both corruption and bribery, in line with international regulations and the United Nations Convention against Corruption. The company adopts a transparent and proactive approach to managing corruption risks, with a whistleblowing system that allows employees, suppliers, and other stakeholders to report any misconduct or violations of Group regulations safely and possibly anonymously [G1-1, 10a].

The internal procedures to prevent, detect, and manage cases of corruption are structured and well-defined. Datalogic Group has a monitoring system that includes periodic checks and internal audits, aimed at identifying and preventing any unlawful behaviour. If a suspicious behaviour is reported, an independent and impartial investigation is initiated to ensure its independence [G1-3, 18a, 18b]. Any reports are submitted to the administrative, management, and supervisory bodies [G1-3, 18c].

Training on corruption and awareness raising

Datalogic has developed an anti-corruption training program that is delivered to all employees, with particular attention to functions that are more exposed to corruption risks. The program has been designed to raise awareness and train employees on the correct behaviours to adopt, the relevant regulations, and the manners to report any violations. Training is mandatory for all functions at risk of corruption, and 100% of the functions at risk are covered by the training program [G1-3, 21b]. Furthermore, the training is periodically updated and also aimed at members of the internal administrative, management, and supervisory bodies, ensuring that at the managerial and governance level, the corporate culture against corruption is well rooted and applied [G1-3, 21c]. Training programs are conducted annually, and each session includes a level of depth that varies according to the participants' role and responsibilities [G1-3, 21a].

Policy communication and whistleblower protection

The Company has established internal whistleblower reporting channels, which have been made easily accessible to all employees and stakeholders. The Group actively promotes the dissemination of information regarding the existence of these channels through specific training and internal communications. The staff responsible for receiving reports has been adequately designated and trained to ensure that all complaints are handled securely, confidentially, and according to applicable regulations. Employees are also informed about the reporting process and the handling of the received information [G1-1, 10c].

Datalogic has implemented policies to ensure the protection of whistleblowers from any retaliation, in full compliance with Directive 2019/1937/EU on whistleblowing. These policies ensure that those who report illegal behaviour do not suffer negative consequences. The protective measures include the whistleblower's anonymity, confidentiality, and support if needed. Datalogic Group has not found the need for additional protection policies beyond those already implemented, but constantly monitors the effectiveness of the measures in place [G1-1, 10d].

Datalogic Group policies are disclosed to all employees and business partners, ensuring that they are fully aware of the reporting procedures, the protections provided, and corporate expectations. Datalogic promotes a workplace where reporting illegal behaviours is encouraged, and ensures that whistleblowers do not suffer any form of discrimination or retaliation [G1-3, 20].

Management of relationships with suppliers

The Company recognizes the strategic importance of managing relationships with suppliers in a responsible and transparent manner, considering them essential for the success of its supply chain and for achieving sustainability objectives. The supplier selection and qualification process is based on clear principles outlined in the Code of Conduct, and focuses on fair competition, transparency, and compliance with applicable regulations. The qualification of suppliers includes verifying their ability to meet corporate requirements in terms of financials, quality, reliability, and innovation,

as well as compliance with ESG and SA8000 standards. Datalogic assesses risks along the supply chain through audits, self-assessments, and document checks, and implements corrective measures when necessary, to ensure a high level of compliance and sustainability, minimising supply chain disruptions and managing related risks. Additionally, Datalogic ensures compliance with applicable regulations, including REACH and RoHS, for the assessment of environmental and human rights impacts, with special focus on minerals from conflict zones (conflict minerals): the Company ensures that it is not involved in activities that may in any way support armed groups responsible for terrorism or violence in the Democratic Republic of the Congo. As an additional measure, Datalogic has required all suppliers to comply with the Electronic Industry Citizenship Coalition's (EICC) Code of Conduct, ensuring safe working conditions, respect for workers, and ethical and sustainable business activity. Additionally, through "Denied Party Screening", Datalogic uses a computer system to periodically check whether potential trading partners are included in sanctioned or unauthorized party lists, minimising the risk of incurring export regulation violations [G1-2, 15a].

Datalogic promotes long-term relationships with qualified suppliers, based on mutual trust and shared goals. The Group promotes continuous dialogue with suppliers, encouraging them to improve collaboration and promote sustainable development initiatives. Suppliers are involved in awareness-raising activities on sustainability topics, so that they align their practices with the strategic objectives of the Group. The adoption of selection criteria based on transparency and fairness facilitates a trust relationship with partners, ensuring efficient and resilient supply chain management [G1-2, 15b].

Approach to payments to suppliers

Datalogic's Code of Conduct governs and promotes a fair and transparent approach to contractual relationships, although a specific policy to avoid payment delays is not in place. Specifically, the Group is committed to ensuring timely payments, including to small and medium-sized enterprises (SMEs), to maintain collaborative and stable relationships with suppliers. By ensuring timely payments, Datalogic strengthens mutual trust and supports economic stability throughout the supply chain, contributing to healthy cash flow for SMEs and promoting fairness throughout the supplier ecosystem [G1-2, 14].

Social and environmental assessment of suppliers

The Company includes social and environmental criteria when selecting suppliers, assessing their performance through tools such as audits and self-assessment questionnaires. Special attention is given to the risks of irregular work practices, child labour, and environmental violations. The Group avoids engaging suppliers involved in illegal activities or those lacking adequate health and safety standards at work. Datalogic encourages local supplier inclusion and promotes suppliers with certifications, strengthening connections with the territory and fostering sustainable practices. By strictly adhering to its Code of Conduct, the Group contributes to creating a responsible supply chain [G1-2, 15b].

METRICS

Confirmed incidents of corruption or bribery

Datalogic confirms that, during the reporting period, there were no confirmed incidents of corruption or bribery. The Group adopts a zero-tolerance approach to any form of corruption, implementing strict compliance policies and internal controls aimed at preventing and countering unlawful conduct. The Company promotes a corporate culture based on integrity and ethics, reinforced by training and awareness programs aimed at employees and stakeholders. No proceedings, penalties, or outcomes related to incidents of corruption have been recorded, confirming the effectiveness of the measures taken to ensure transparency and compliance with current regulations [G1-4, 22, 23].

	2024
Number of convictions for violation of anti-corruption and anti-bribery laws	-
Amount of fines for violation of anti-corruption and anti-bribery laws	-

Payment practices

Datalogic adopts a responsible governance system, ensuring fairness in the relationships with its suppliers, regardless of their size. The payment terms are defined based on contractual agreements and may include payments on delivery, 30, 60, 90, 120 days, or other specific timelines agreed upon with the counterparts. The payment methods used include bank transfers, electronic payments, and other forms of transactions that ensure efficiency and traceability. Payments

are usually made twice a month. The Group regularly monitors compliance with payment terms to ensure the financial stability of its supply chain [G1-6, 31, 32, 33].

	202415
Average time taken to pay an invoice in number of days16	82.3
Percentage of payments that comply with standard payment terms17	82.1%
Number of legal proceedings currently pending due to late payments	-

Chairman of the Board of Directors

(Romano Volta)

¹⁵ The analysis was conducted on the entire population of invoices, with the exception of MobyData, held 51%.

¹⁶ The average payment time is calculated as the average of the difference between the invoice date and the payment date, weighted by the invoice amount.

¹⁷ Since the Company makes payments twice a month, the percentage of payments that comply with standard payment terms is calculated by considering the number of payments made by the invoice due date, as per the standard terms stated on the invoice, or within the subsequent 15 days, which is the payment cycle immediately following the due date.

Consolidated Annual Financial Report at December 31, 2024

Consolidated Financial Statements

DATALOGIC GROUP 78

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS (Euro/000)	Notes	31.12.2024	31.12.2023
A) Non-current assets (1+2+3+4+5+6+7)		456,711	463,204
1) Tangible fixed assets		93,479	94,040
Land	1	14,432	12,597
Buildings	1	51,381	51,520
Other assets	1	25,488	26,892
Fixed assets under construction and advances	1	2,178	3,031
2) Intangible fixed assets		285,002	294,197
Goodwill	2	202,349	205,352
Development costs	2	42,707	42,034
Other	2	29,174	36,075
Fixed assets under construction and advances	2	10,772	10,736
3) Right of use fixed assets	3	10,805	11,446
4) Investments in associates	4	753	640
5) Non-current financial assets	6	2,987	4,778
6) Trade and other receivables	7	1,385	784
7) Deferred tax assets	12	62,300	57,319
B) Current assets (8+9+10+11)		269,842	256,299
8) Inventory		93,470	102,462
Raw and ancillary materials and consumables	8	37,657	51,002
Work in progress and semi-finished products	8	24,498	18,690
Finished products and goods	8	31,315	32,770
9) Trade and other receivables		91,959	70,546
Trade receivables	7	67,039	52,093
of which Parent Company	7	155	-
of which associates	7	1,302	1,346
of which related parties	7	12	8
Other receivables, accrued income and deferred expense	7	24,920	18,453
10) Tax receivables	9	2,977	12,662
11) Cash and cash equivalents	5	81,436	70,629
Total Assets (A+B)		726,553	719,503

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

LIABILITIES (Euro/000)	Notes	31.12.2024	31.12.2023
A) Total Equity (1+2+3+4+5+6)	10	431,122	411,131
1) Share capital	10	30,392	30,392
2) Reserves	10	110,815	98,212
3) Retained earnings (losses)	10	273,148	269,731
4) Profit (loss) for the year	10	13,626	9,859
5) Group Equity	10	427,981	408,194
Profit (loss) for the year attributable to non-controlling interests	10	96	(373)
Share capital attributable to non-controlling interests	10	3,045	3,310
6) Equity attributable to non-controlling interests		3,141	2,937
B) Non-current liabilities (7+8+9+10+11)		125,937	143,384
7) Non-current financial payables	11	72,045	86,101
8) Deferred tax liabilities	12	25,166	26,334
9) Provisions for post-employment and retirement benefits	13	5,598	5,759
10) Provisions for non-current risks and charges	14	3,071	5,197
11) Other liabilities	15	20,057	19,993
C) Current liabilities (12+13+14+15)		169,494	164,988
12) Trade and other payables		144,982	133,030
Trade payables	15	96,133	83,515
of which Parent Company	15	155	-
of which associates	15	96	92
of which related parties	15	36	21
Other payables, accrued expense and deferred income	15	48,849	49,515
13) Tax payables	9	-	9,388
14) Provisions for current risks and charges	14	5,605	2,721
15) Current financial payables	11	18,907	19,849
Total Liabilities (A+B+C)		726,553	719,503

(Euro/000)	Notes	31.12.2024	31.12.2023 Restated
1) Revenue	16	493,767	518,693
Revenue from sale of products		455,182	479,912
of which related parties and associates		7,167	7,176
Revenue from services		38,585	38,781
of which related parties and associates		176	-
2) Cost of goods sold	17	286,093	308,019
of which related parties and associates		322	314
Gross Operating Margin (1-2)		207,674	210,674
3) Other revenue	18	5,742	4,613
4) Research and development expense	17	69,430	65,420
of which related parties and associates		772	721
5) Distribution expense	17	88,167	89,210
of which related parties and associates		183	223
6) Administrative and general expense	17	50,874	52,012
of which related parties and associates		224	194
7) Other operating expense	17	2,050	2,325
Total operating costs		210,521	208,967
EBIT		2,895	6,320
8) Financial income	19	41,905	24,290
9) Financial expense	19	29,082	22,552
Financials (8-9)		12,823	1,738
Profit/(Loss) before tax from continuing operations		15,718	8,058
Income tax	20	777	1,070
Net Profit/(Loss) from continuing operations		14,941	6,988
Basic earnings/(loss) per share from continuing operations (Euro)	22	0.28	0.13
Diluted earnings/(loss) per share from continuing operations (Euro)	22	0.28	0.13
Net Profit/(Loss) from discontinued operations	21	(1,219)	2,498
Net Profit/(Loss) for the year		13,722	9,486
Basic earnings/(loss) per share (€)	22	0.25	0.18
Diluted earnings/(loss) per share (€)	22	0.25	0.18
Attributable to:
Shareholders of the Parent		13,626	9,859
Non-controlling interests		96	(373)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Euro/000)	Notes	31.12.2024	31.12.2023
Net Profit/(Loss) for the year		13,722	9,486
Other items of the statement of comprehensive income:
Other items of the statement of comprehensive income that will later be
reclassified to Profit/(Loss) for the year
Profit/(Loss) on cash flow hedges (CFH)	10	61	74
Profit (Loss) from the translation of financial statements of foreign companies	10	15,167	(12,058)
Reclassification of recognised foreign exchange differences due to change in the consolidation scope	10	(2,473)	-
Total other items of the statement of comprehensive income that will later be reclassified to Profit/(Loss) for the year		12,755	(11,984)
Other items of the statement of comprehensive income that will not be later
reclassified to Profit/(Loss) for the year
Actuarial gains (losses) on defined-benefit plans		(27)	-
of which tax effect		10	-
Profit/(Loss) from financial assets at FVOCI	10	(17)	(675)
of which tax effect		(1)	8
Total other items of the statement of comprehensive income that will not be
later reclassified to Profit/(Loss) for the year		(44)	(675)
Total profit/(loss) of the statement of comprehensive income		12,711	(12,659)
Net Profit/(Loss) for the year		26,433	(3,173)
Attributable to:
Shareholders of the Parent Company		26,229	(2,591)
Non-controlling interests		204	(582)

CONSOLIDATED STATEMENT OF CASH FLOWS

(Euro/000)	Notes	31.12.2024	31.12.2023
Profit/(Loss) before tax		14,499	11,419
Depreciation of tangible fixed assets and write-downs	1	10,562	11,915
Amortisation of intangible fixed assets and write-downs	2	23,451	20,963
Depreciation of right of use fixed assets	3	4,316	4,178
Losses (Gains) from sale of fixed assets	17, 18	(715)	(146)
Change in provisions for risks and charges	14	688	(387)
Change in provision for obsolescence	8	(575)	3,095
Financials	19	(12,823)	(1,811)
Monetary effect foreign exchange gains (losses)		(1,464)	(1,176)
Other non-monetary changes		(561)	(2,270)
Cash flow generated (absorbed) from operations before changes in
working capital		37,378	45,780
Change in trade receivables	7	(14,514)	39,068
Change in final inventory	8	9,293	23,017
Change in trade payables	15	11,625	(27,228)
Change in other current assets	7	(6,290)	(142)
Change in other current liabilities	15	5,054	(4,353)
Change in other non-current assets	6	(562)	(30)
Change in other non-current liabilities	5	54	(440)
Cash flow generated (absorbed) from operations after changes in		42,038	75,672
working capital
Change in tax assets and liabilities		(5,692)	(8,640)
Interest paid		(2,991)	(3,739)
Interest collected		667	570
dividends collected		91	327
Cash flow generated (absorbed) from operations (A)		34,113	64,190
Increase in intangible fixed assets	2	(17,667)	(18,630)
Decrease in intangible fixed assets	2	15	-
Increase in tangible fixed assets	1	(9,609)	(8,154)
Decrease in tangible fixed assets	1	2,130	281
Change in investments and current and non-current financial assets	5	(150)	6,672
Change in consolidation scope	21	26,671	-
Cash flow generated (absorbed) from investments (B)		1,390	(19,831)
Payment of financial payables	11	(14,035)	(63,189)
New financial payables	11	-	25,000
Other changes in financial payables	11	(114)	(805)
Payments of financial liabilities from leases		(4,560)	(4,416)
(Purchase) sale of treasury shares	10	-	(19,771)
Dividend payment	10	(6,408)	(17,034)
Effect of change in cash and cash funds		421	(997)
Cash flow generated (absorbed) from financing activities (C)		(24,696)	(81,212)
Net increase (decrease) in cash (A+B+C)		10,807	(36,853)
Net cash and cash equivalents at beginning of year		70,629	107,482
Net cash and cash equivalents at year end		81,436	70,629

Consolidated Annual Financial Report at December 31, 2024

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Description	Share capital	Share premium res.	Treasury shares	Translation reserve	Other Reserves	Retained earnings	Profit (Loss) of Group	Group Equity	Profit (Loss) of non controlling interests	Share capital and reserves of non-controlling interests	Equity attributable to non-controlling interests	Profit (Loss)	Equity
01.01.2024	30,392	111,779	(41,962)	27,482	913	269,731	9,859	408,194	(373)	3,310	2,937	9,486	411,131
Allocation of profit	-	-	-	-	-	9,859	(9,859)	-	373	(373)	-	(9,486)	-
Dividends	-	-	-	-	-	(6,438)	-	(6,438)	-	-	-	-	(6,438)
Other changes	-	-	-	-	-	(4)	-	(4)	-	-	-	-	(4)
Profit/(Loss) for the year	-	-	-	-	-	-	13,626	13,626	96	-	96	13,722	13,722
Other items of the statement of comprehensive income	-	-	-	12,587	16	-	-	12,603	-	108	108	-	12,711
Total comprehensive Profit (Loss)	-	-	-	12,587	16	-	13,626	26,229	96	108	204	13,722	26,433
31.12.2024	30,392	111,779	(41,962)	40,069	929	273,148	13,626	427,981	96	3,045	3,141	13,722	431,122

Description	Share capital	Share premium res.	Treasury shares	Translation reserve	Other Reserves	Retained earnings	Profit (Loss) of Group	Group Equity	Profit (Loss) of non controlling interests	Share capital and reserves of non-controlling interests	Equity attributable to non controlling interests	Profit (Loss)	Equity
01.01.2023	30,392	111,779	(22,191)	39,331	3,347	255,840	29,550	448,048	576	2,943	3,519	30,126	451,567
Allocation of profit	-	-	-	-	-	29,550	(29,550)	-	(576)	576	-	(30,126)	-
Dividends	-	-	-	-	-	(17,034)	-	(17,034)	-	-	-	-	(17,034)
Treasury shares	-	-	(19,771)	-	-	-	-	(19,771)	-	-	-	-	(19,771)
Share-based incentive plan	-	-	-	-	(351)	-	-	(351)	-	-	-	-	(351)
Other changes	-	-	-	-	(1,482)	1,375	-	(107)	-	-	-	-	(107)
Profit/(Loss) for the year	-	-	-	-	-	-	9,859	9,859	(373)	-	(373)	9,486	9,486
Other items of the statement of comprehensive income	-	-	-	(11,849)	(601)	-	-	(12,450)	-	(209)	(209)	-	(12,659)
Total comprehensive Profit (Loss)	-	-	-	(11,849)	(601)	-	9,859	(2,591)	(373)	(209)	(582)	9,486	(3,173)
31.12.2023	30,392	111,779	(41,962)	27,482	913	269,731	9,859	408,194	(373)	3,310	2,937	9,486	411,131

Consolidated Annual Financial Report at December 31, 2024

Explanatory Notes

DATALOGIC GROUP 85

EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

GENERAL INFORMATION

Datalogic is a global technological leader in the automatic data capture and process automation markets. The Company is specialised in the design and production of barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID.

Its pioneering solutions help increase efficiency and quality of processes in the areas of Retail, Manufacturing, Transportation & Logistics, and Healthcare, along the entire value chain.

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

This Consolidated Annual Financial Report at December 31, 2024 includes the figures of the Parent Company and its subsidiaries (defined hereinafter as "Group") and the relevant shares in associates.

The publication of this Consolidated Annual Financial Report at December 31, 2024 of Datalogic Group was authorized by resolution of the Board of Directors dated March 20, 2025.

BASIS OF PRESENTATION

1) General criteria

In compliance with European Regulation no. 1606/2002, the Consolidated Annual Financial Report was prepared in accordance with the International Accounting Standards (IAS/IFRS) issued by the IASB - International Accounting Standard Board and endorsed by the European Union pursuant to European Regulation 1725/2003 and subsequent updates, with all the interpretations of the International Financial Reporting Standard Interpretations Committee ("IFRS-IC"), formerly known as the Standing Interpretations Committee ("SIC") endorsed by the European Commission at the date of approval of the draft Financial Statements by the Parent Company's Board of Directors and contained in the relevant E.U. Regulations published on that date and in compliance with the provisions set forth in CONSOB Regulation 11971 of 14/05/99 and subsequent updates.

2) Reporting formats

The reporting formats adopted are compliant with those required by IAS 1 and were used in the Consolidated Annual Financial Report for the year ended December 31, 2023, in particular:

• current and non-current assets, as well as current and non-current liabilities are shown separately in the Statement of Financial Position. Current assets, which include cash and cash equivalents, are those intended to be realised, sold or used during the Group's normal operating cycle; current liabilities are those expected to be settled in the Group's normal operating cycle or in the twelve months following the end of the year;
• with regard to the Income Statement, cost and revenue items are shown based on grouping by function, as this classification was deemed more explanatory for understanding the Group's results of operations;
• the Statement of Comprehensive Income presents the items that determine profit/(loss) for the period and the costs and revenue recognised directly under equity;

• the Statement of Cash Flows is presented using the "indirect method".

This Consolidated Annual Financial Report is drawn up in Euro thousands, which is the Group's "functional" and "presentation" currency as envisaged by IAS 21.

3) Consolidation standards and policies

Subsidiaries

Control is obtained when the Group is exposed or entitled to variable returns, arising from its relationship with the investee and, concurrently, has the ability to affect those returns by exercising its power over that entity, as envisaged by IFRS 10. Specifically, the Group controls an investee if, and only if the Group has:

• power over the investee (i.e., holds valid rights that give it the current ability to direct the relevant activities of the investee);
• exposure, or rights, to variable returns from its involvement with the investee;
• the ability to use its power over the investee to affect the amount of its returns.

There is generally the assumption that a majority of voting rights involves control. To corroborate this assumption, and when the Group holds less than the majority of voting rights (or similar rights), the Group considers all relevant facts and circumstances in order to define whether it controls the investee, including:

• contractual arrangements with other vote holders;
• rights arising from contractual agreements;
• voting rights and potential voting rights of the Group.

The Group reconsiders whether it has control over an investee if the facts and circumstances show that changes occurred in one or more of the three elements used for the definition of control. An investee is consolidated when the Group obtains its control and the consolidation ends when the Group loses control. Assets, liabilities, revenue and costs of the investee acquired or sold during the year are included in the Consolidated Financial Statements at the date on which the Group obtains control until the date on which the Group no longer exercises control over the entity.

In order to ensure consistency with the Group accounting criteria, when necessary, the financial statements of the investees are adequately adjusted. All assets and liabilities, Equity, revenue, costs and intercompany cash flows related to transactions between Group entities are entirely derecognised when consolidated.

Changes in interests in a subsidiary that do not result in loss of control are accounted for in Equity.

If the Group loses control over an investee, all related assets (including goodwill), liabilities, non-controlling interests and other items in Equity must be derecognised, while any possible profit or loss will be recognised in the Income Statement. Any retained interest must be recognised at fair value.

Mutual debt and credit and cost and revenue transactions, between companies within the consolidation scope, as well as the effects of all significant transactions between them, are derecognised. Specifically, unrealized gains with third parties from transactions between Group companies, including those arising from the valuation at the balance sheet date of inventory, were derecognised, if any.

Business combinations

Business combinations are accounted through the acquisition method. The cost of an acquisition is the acquisition-date fair value of the consideration transferred, plus the amount of the non-controlling interest held. For each business combination, the Group assesses whether to measure any non-controlling interest in the acquiree at fair value or in proportion to the non-controlling interest's share of the acquiree's identifiable net assets. The acquisition costs are recognised in the year and classified under administrative expense.

If the business combination is carried out in more than one step, the investment previously held is recalculated at fair value at the acquisition date and any resulting profit or loss is recognised in the Income Statement.

Any contingent consideration, to be recognised, is measured by the purchaser at fair value on the acquisition date. The change in fair value of the contingent consideration classified as financial asset or liability must be recognised in the Income Statement.

Goodwill is initially measured at cost, which is the excess of the consideration paid, as compared to the fair value of the net identifiable assets acquired and the liabilities undertaken by the Group. If the fair value of the net assets acquired exceeds the total consideration paid, the Group checks again whether it has correctly identified all the assets acquired and liabilities incurred and reviews the procedures adopted to determine the amounts to be recorded at the acquisition date. If the new measurement still shows a fair value of the net assets acquired that is higher than the consideration, the difference (profit) is recognised in the Income Statement.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated, from the acquisition date, to each of the Group's cash-generating units that are expected to benefit from the synergies of the combination, regardless of whether other assets or liabilities of the target company are assigned to those units.

Associates

Associates are those companies in which the Group has significant influence, but over which, however, it does not exercise management control. Significant influence is presumed to apply when the Group holds 20% to 50% of voting rights at Shareholders' Meetings. Failing so, the Group assesses specific facts and circumstances to verify the presence of significant influence.

Investments in associates are measured at equity. Under this method, the investment in an associate is initially recognised according to the above acquisition method and the book value is increased or decreased to recognise the investor's share of the profit and loss of the investee after the date of acquisition. Goodwill related to the associate is included in the book value of the investment and is not subject to amortisation.

The Group's share of associates' post-acquisition profits or losses is recognised in the Income Statement, whereas its post-acquisition share of changes in reserves is recognised in reserves. Cumulative post-acquisition changes are included in the book value of the investment.

Unrealized profits relating to transactions between the Group and its associates are derecognised in proportion to the Group's interests in such associates. Unrealized losses are also derecognised unless the loss is considered to represent impairment of the assets transferred. The accounting standards adopted by associates are adapted when necessary to ensure consistency with the policies adopted by the Group.

Upon losing significant influence over an associate, the Group measures and recognises the residual investment at fair value. Any difference between the carrying amount of the investment on the date that significant influence is lost, as well as the fair value of the residual investment and the consideration received must be recognised in the Income Statement.

4) Translation criteria of foreign currency financial statements

Financial statements prepared in currencies other than the currency in which the Group's consolidated financial statements are presented, i.e. the Euro, are consolidated using the method described above, subject to translation into Euro. The translation is carried out as follows:

• The assets and liabilities are translated using the exchange rates in force at the consolidated balance sheet date;
• Costs and revenue are translated at the average exchange rate for the year;
• Exchange rate differences generated from the translation of income statement items at a rate different from the closing rate and from the translation of opening equity at an exchange rate different from the closing rate of the reporting year, are recognised as an item of comprehensive income under "Translation Reserve"; this reserve is recognised in full in the income statement in the year in which the Group relinquishes or loses control of the investee;
• Goodwill and fair value adjustments related to the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rate for the year.

The exchange rates used to determine the value in Euro of financial statements denominated in foreign currency of subsidiaries (currency for 1 Euro) are shown hereunder:

Currency (ISO Code)	Quantity of currency for 1 Euro
	December 2024	December 2024	December 2023	December 2023
	Actual exchange rate	Average exchange rate for the year	Actual exchange rate	Average exchange rate for the year
US Dollar (USD)	1.04	1.08	1.11	1.08
British Pound Sterling (GBP)	0.83	0.85	0.87	0.87
Swedish Krona (SEK)	11.46	11.43	11.10	11.48
Singapore Dollar (SGD)	1.42	1.45	1.46	1.45
Japanese Yen (JPY)	163.06	163.85	156.33	151.99
Australian Dollar (AUD)	1.68	1.64	1.63	1.63
Hong Kong Dollar (HKD)	8.07	8.45	8.63	8.47
Chinese Renminbi (CNY)	7.58	7.79	7.85	7.66
Brazilian Real (BRL)	6.43	5.83	5.36	5.40
Mexican Peso (MXN)	21.55	19.83	18.72	19.18
Hungarian Forint (HUF)	411.35	395.30	382.80	381.85
Czech Crown (CZK)	25.19	25.12	24.72	24.00

5) Accounting policies and standards applied

The following are the policies adopted in the preparation of the Group's Consolidated Financial Statements at December 31, 2024; the Accounting Standards below have been consistently applied by all Group entities.

Tangible fixed assets

Owned tangible fixed assets are recognised at the cost of contribution, purchase, or internal construction. The cost includes all directly attributable costs required to make the asset available for use (including, when relevant and where

there are present obligations, the present value of estimated costs for decommissioning, asset removal, and site remediation), net of trade discounts and rebates.

Certain tangible fixed assets in the "Land and buildings" categories were measured at fair value (market value) at January 1, 2004 (IFRS transition date) and this value was used as the deemed cost. The cost of buildings is depreciated net of the residual value estimated as the realization value obtainable through sale at the end of the useful life of the building.

Costs incurred after purchase are accounted for in the book value of the asset, or are recognised as a separate asset, only if it is believed likely that the future economic benefits associated with the asset will flow to the entity and the asset's cost can be reliably measured. Maintenance and repair costs or replacement costs that do not have the above characteristics are recognised in the income statement in the year in which they are incurred.

Fixed assets are systematically depreciated in each year from the time the fixed asset is available for use, or is potentially able to provide the associated economic benefits, based on economic-technical rates determined with regard to the remaining possibility of use of the assets and taking account of the month of availability for the first year. Land is considered to be an asset with indefinite useful life and therefore not subject to depreciation.

The depreciation rates applied by the Group are as follows:

Asset category	Rates
Property:
Buildings	2% - 3.3%
Land	0%
Plant and equipment:
Automatic operating machines	20% - 14.29%
Furnaces and appurtenances	14%
Generic/specific production plant	20% - 10%
Other assets:
Plants pertaining to buildings	8.33% - 10% - 6.67%
Lightweight constructions	6.67% - 4% - 33.3%
Production equipment & electronic instruments	20% - 10%
Moulds	20%
Electronic office machinery	33% - 20%- 10%
Office furniture and fittings	10% - 6.67% - 5%
Cars	25%
Freight vehicles	14%
Trade show & exhibition equipment	11% - 20%
Leasehold improvements	Contract duration

If a fixed asset suffers an impairment loss, then, regardless of the depreciation already recognised, the value of the fixed asset is accordingly written down; if the reasons for the impairment loss no longer apply in subsequent years, the original value is restored. The residual value and useful life of assets are reviewed at least at each year-end in order to assess any significant changes in value.

Fixed assets held under leases

Assets held by the Group under lease contracts, including operating leases, in accordance with IFRS 16, effective January 1, 2019, are recognised as assets with a financial payable as a balancing entry. Specifically, assets are recognised at a

value equal to the present value of future payments at the date of signing of the contract, discounted using the applicable incremental borrowing rate for each contract, and depreciated over the duration of the underlying contract, taking account of the effects of any extension or early termination clauses whose exercise was deemed reasonably certain.

In compliance with the provisions of IFRS 16, starting from January 1, 2019, the Group identifies contracts for which it obtains the right to use an identifiable asset for a period of time in exchange for a consideration as leases.

For each lease contract, starting from the commencement date, the Group recognises an asset (right of use of the asset) under tangible assets as a balancing entry to a corresponding financial liability (lease payable), with the exception of the following cases: (i) short-term lease contracts; (ii) low-value lease contracts applied to situations in which the leased asset has a value not exceeding €5 thousand (new value).

For short-term and low-value lease contracts, the financial liabilities related to the leases and corresponding right of use are not recognised, but the lease payments are recognised in the income statement on a straight-line basis for the duration of the respective contracts.

In the case of a complex contract that includes a lease component, the latter is always managed separately from the other services included in the contract.

Rights of use are shown in a specific item of the financial statements. At the time of initial recognition of the lease contract, the right of use is recognised at a value corresponding to the lease payable, determined as described above, increased by the instalments paid in advance and the ancillary expense and net of any incentives received. Where applicable, the initial value of the rights of use also includes the related costs of dismantling and restoring the area. The situations involving the recalculation of the lease payable imply a corresponding change in the value of the right of use.

After initial recognition, the right of use is depreciated on a straight-line basis, starting from the commencement date, and subject to write-downs in the event of impairment. Depreciation is carried out over the shorter of the lease term and the useful life of the underlying asset; however, in cases where the lease contract envisages the transfer of

ownership, possibly also as a result of the use of redemption options included in the value of the right of use, depreciation is carried out over the useful life of the asset.

Lease payables are shown in the financial statements under current and non-current financial liabilities, together with the other financial payables of the Group. At the time of initial recognition, the lease payable is recorded on the basis of the present value of the lease instalments to be settled determined using the implicit interest rate of the contract (i.e. the interest rate that forms the present value of the sum of the payments and the residual value equal to the sum of the fair value of the underlying asset and the initial direct costs incurred by the Group); if this rate is not indicated in the contract or easily determinable, the present value is determined using the "incremental borrowing rate", i.e. the incremental interest rate that, in a similar economic context and in order to obtain an amount equal to the value of the right of use, the Group would have paid for a loan with similar duration and collateral.

The lease payments subject to discounting include fixed payments; variable fees due to an index or a rate; the redemption price, if any and if the Group is reasonably certain to use it; the amount of payment envisaged for any issue of collateral on the residual value of the asset; the amount of penalties to be paid in the event of the exercise of options for early termination of the contract, where the Group is reasonably certain to exercise them.

After initial recognition, the lease payable is increased to take account of the interest accrued, determined on the basis of the amortised cost, and decreased against the lease payments paid.

Additionally, the lease payable is subject to restatement, upward or downward, in the event of changes to the contracts or other situations envisaged by IFRS 16 that involve a change in the amount of the instalments and/or the duration of the lease. Specifically, in the presence of situations that involve a change in the estimate of the probability of exercise (or non-exercise) of the options for renewal or early termination of the contract or in the redemption (or not) provisions

of the asset upon expiry of the contract, the lease payable is restated by discounting the new value of the instalments to be paid on the basis of a new discount rate.

Intangible fixed assets

Intangible assets are recognised under assets in the statement of financial position when it is likely that use of the asset will generate future economic benefits and when the asset's costs can be reliably determined. They are initially recognised at the value of contribution or at acquisition or production cost, inclusive of any ancillary expense. If tangible and intangible fixed assets are sold, the date of disposal will be the date when the purchaser obtains the control of the assets, pursuant to requirements set forth on performance obligations by IFRS 15. The profit or loss generated by the consideration is accounted for in the Income Statement and is determined according to requirements to determine the transaction price envisaged by IFRS 15. Subsequent changes to the estimated amount of consideration used to determine profit or loss must be accounted for in accordance with the requirements for changes in transaction pricing in IFRS 15.

Goodwill

Goodwill is recognised in accordance with what was stated above with regard to business combinations in Note 3) Consolidation standards and policies. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Goodwill is allocated to the cash generating units (CGUs) and is tested for impairment annually or more frequently, if specific events or changes in circumstances suggest possible impairment, pursuant to IAS 36 – "Impairment of Assets". If goodwill has been allocated to a cash generating unit (CGU) and the entity disposes of part of this unit, goodwill associated with the sold unit must be included in the book value of the asset when the profit or loss on disposal is determined. Goodwill associated with the discontinued operation must be calculated on the basis of the relating values of the discontinued operation and the retained portion of the cash-generating unit. The same criterion of related values is applied also when the format of the internal reporting is changed and affects the composition of the cash generating units that received the goodwill, in order to define its new allocation.

Research and Development expense

Under IAS 38, research expense is charged to the Income Statement at the time the cost is incurred.

Development costs for projects concerning significantly innovative products or processes are capitalised only if the following can be shown:

• the technical possibility of completing the intangible asset so that it will be available for use or sale;
• the intention to complete the intangible asset and use or sell it;
• the ability to use or sell the intangible asset;
• the ability to reliably measure the cost attributable to the intangible asset during its development;
• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset;
• how the intangible asset will generate probable future economic benefits.

In the absence of any of the above requirements, the costs in question are fully recognised in the Income Statement at the time they are incurred.

Development costs have a finite useful life and are capitalised and amortised on a straight-line basis from the start of the product's commercial production for a period equal to the useful life of the products to which they refer.

Other intangible fixed assets

Other intangible fixed assets include specific intangible assets purchased by the Group, also as part of business combinations, and therefore identified and recognised at fair value at the acquisition date according to the purchase method of accounting mentioned above.

These assets are considered to be intangible assets with finite life and are amortised over their presumable useful life (see the next table).

Amortisation

Intangible fixed assets with finite useful life are amortised systematically in accordance with their expected future use, so that the net value at the end of the year corresponds to their remaining use or the amount recoverable according to the company's plans for carrying out production activities. Amortisation starts when the asset is available for use.

The useful life for each category is detailed below:

DESCRIPTION	Years
Goodwill	Indefinite useful life
Development costs	3/5
Other intangible assets:
- Software licences	3/5
- Patents (formerly PSC)	20
- Patents	10
- Know-how	8/10
- Customer portfolio	15
- SAP licences	10
- User licences	Contract duration

Intangible assets with indefinite useful life are not amortised but tested to identify any impairment annually, or more frequently when there is evidence that the asset may have suffered impairment. The residual values, the useful lives and the amortisation of intangible fixed assets are reviewed at each year end and, where appropriate, adjusted prospectively. The useful lives shown remained unchanged versus the prior year.

Impairment

When there are specific indicators of impairment, and at least annually, with regard to intangible fixed assets and goodwill, tangible and intangible fixed assets are subject to an impairment test.

The aim of this impairment test is to ensure that tangible and intangible fixed assets are not carried at a value exceeding their recoverable value, consisting of the higher of fair value, less costs to sell and the value in use.

Value in use is determined based on the future cash flows expected to originate from the asset or cash-generating unit (hereafter also CGU) to which the asset belongs. Expected cash flows are discounted using a discount rate that reflects the current market estimate referring to the time-related cost of money and the risks specific to the asset or cash generating unit to which the assumed realizable value refers.

If the recoverable value of the asset or CGU, to which it belongs, is less than the net book value, the asset in question is written down to reflect its impairment, with recognition of the latter in the Income Statement for the year.

Impairment losses relating to CGUs are allocated firstly to goodwill and, for the remaining amount, to the other assets on a proportional basis.

An impairment loss, in the event that the assumptions that generated it no longer apply, is reinstated, up to the amount corresponding to the book value that would have been determined, net of amortisation calculated on the historical cost, if no impairment loss had ever been recognised.

Any reinstatements are recognised in the Income Statement. The value of goodwill previously written down cannot be reinstated, as required by International Accounting Standards.

Financial assets and liabilities

The Group measures certain financial assets and liabilities at fair value. Fair value is the price that would be received for the sale of an asset or that would be paid for transfer of a liability in a normal transaction between market participants at the date of measurement.

A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:

• in the principal market of the asset or liability; or
• in the absence of a principal market, in the most advantageous market for the asset or liability.

The principal market or most advantageous market must be accessible for the Group. The fair value of an asset or liability is measured by using the assumptions that market participants would use when pricing the asset or liability, assuming that they act in their economic best interest. A fair value measurement of a non-financial asset takes account of a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses measurement methods that are appropriate to the circumstances, and for which data available to measure fair value are sufficient, maximising the use of material observable inputs and minimising the use of nonobservable inputs. All assets and liabilities measured or recognised at fair value are classified based on a fair value hierarchy and described hereunder:

• Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
• Level 2 inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;
• Level 3 measurement techniques for which input data are unobservable for the asset or liability.

The fair value measurement is classified in its entirety in the same level of the fair value hierarchy as the lowest level input used for the measurement.

As regards assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Group determines whether transfers between hierarchy levels occurred while revising the classification at each annual reporting date.

Financial instruments

A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.

Financial assets

Financial assets are initially recognised at their fair value plus, in the case of a financial asset not at fair value through

profit or loss, any ancillary expense. Exceptions are trade receivables that do not contain a significant financing component for which the Group applies the practical expedient by measuring them at the transaction price determined in accordance with IFRS 15.

Upon recognition, for subsequent measurement purposes, financial assets are classified according to the four possible measurement methods described below:

▪ Financial assets at amortised cost;

• Financial assets at fair value through OCI with reclassification of cumulative gains and losses;
• Financial assets at fair value through OCI without reversal of cumulative gains and losses on derecognition (equity instruments);
• Financial assets at fair value through profit or loss.

The selection of the classification of financial assets depends on the following:

• nature of financial assets, determined primarily by the characteristics of expected contractual cash flows;
• business model that the Group applies to the management of the financial assets in order to generate cash flows, which may result from the collection of contractual cash flows, as well as from the sale of financial assets or from both.

For a financial asset to be classified and measured at amortised cost or at fair value through OCI, it must generate cash flows that depend solely on the principal and interest on the amount of principal to be repaid (so-called solely payments of principal and interest - SPPI). This measurement is referred to as a SPPI test and is performed at the level of each instrument.

Financial assets are derecognised from the financial statements when the right to receive cash ceases, the Group has transferred the right to receive cash flows from the asset or has assumed the contractual obligation to pay them to a third party in their entirety and without delay and (1) has transferred essentially all the risks and benefits of ownership of the financial asset or (2) has not transferred or essentially held all the risks and benefits of the asset, but has transferred control of the asset.

In the cases where the Group has transferred the rights to receive cash flows from an asset or has entered into an arrangement based on which it retains the contractual rights to receive the cash flows of the financial asset, but takes on a contractual obligation to pay the cash flows to one or more beneficiaries (pass-through), it assesses whether and to what extent it has retained the risks and benefits pertaining to ownership.

Valuations are regularly carried out in order to verify whether there is objective evidence that a financial asset or a group of assets may have suffered impairment. If there is objective evidence, the impairment is recognised as a cost in the income statement for the year.

For trade receivables and contract assets, the Group applies a simplified approach to the calculation of expected losses. Therefore, the Group does not monitor changes in credit risk, but the expected loss is fully recognised at each reporting date. The Group has established a matrix system based on historical information, reviewed to consider prospective elements with regard to the specific types of debtors and their economic environment, as a tool for determining expected losses.

Financial liabilities

Financial liabilities are measured using the amortised cost method, recognising expense through the effective interest

rate method in the income statement, except for financial liabilities acquired for trading purposes or derivatives (see next paragraph), or those designated at FVTPL by Management on the date of initial recognition, which are measured at fair value with a balancing entry in the income statement.

Financial guarantees given are agreements envisaging a payment to repay the owner of a debt security against a loss incurred due to a non-payment by the debtor at the contractual maturity term. If the financial guarantees are issued by the Group, they are initially recognised as liabilities at fair value, increased by transaction costs that are directly attributable to the issue of the guarantee itself. The liability is then measured at the higher of the best estimate of the outlay required to meet the guaranteed obligation at the balance sheet date and the amount initially recognised, net of accumulated amortisation.

A financial liability is removed from the balance sheet when the obligation underlying the liability has been discharged, cancelled or satisfied. Where an existing financial liability is exchanged for another from the same lender on substantially different terms, or the terms of an existing liability are substantially changed, such an exchange or change is treated as a derecognition of the original liability and a recognition of a new liability, with any differences between the carrying amounts recognised in the Income Statement. In the event of amendments on financial liabilities defined as irrelevant, the income effects of renegotiation are recognised in the Income Statement.

Offsetting of financial instruments

A financial asset and liability can be offset and the net balance can be shown in the Statement of Financial Position if there is a current legal right to offset the amounts recognised and there is the intention to settle the net remainder, or realize the asset and at the same time settle the liability.

Financial derivatives

Derivatives, including embedded derivatives, separate from the main contract, are initially recognised at fair value.

Derivatives are classified as hedging instruments when the relationship between the derivative and the hedged item is formally documented and the effectiveness of the hedge, assessed periodically, is high.

When hedging derivatives hedge the risk of change in the fair value of the hedged instruments, they are recorded at fair value and the effects are posted to the Income Statement; accordingly, the hedged instruments are adjusted to reflect the changes in fair value associated with the risk hedged.

When derivatives hedge the risk of changes in the cash flows of the hedged instruments (cash flow hedges), the hedges made are designated against exposure to variability in cash flows attributable to risks that may affect the Income Statement at a later date; these risks are generally associated with an asset or liability recognised in the Financial Statements (such as future payments on debt at floating rates).

The effective portion of the change in the fair value of the portion of derivative contracts designated as hedges, in accordance with the requirements of the standard, is recognised as an item of the Statement of Comprehensive Income (Hedging Reserve); this reserve is then charged to income for the year in which the hedged transaction affects the Income Statement.

The ineffective portion of fair value change, as well as the entire fair value change in derivatives that have not been designated as hedge derivatives or that do not have the requirements envisaged in the aforesaid IFRS 9, is instead recognised directly through the Income Statement.

Inventory

Inventory is measured at the lower of cost and net realisable value. Cost is calculated using the weighted average cost method. Finished and semi-finished product costs include the cost of raw materials, direct labour, and other directly and indirectly attributable production costs (charged back based on normal production capacity). For raw and ancillary materials and consumables, the net presumable realisable value is represented by the replacement cost. For finished

and semi-finished products, the net presumable realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the costs necessary to make the sale.

Obsolete and slow turnover inventory is written-down based on its estimated possible use or future sale, through entry in a special provision, adjusted by the value of inventory.

Non-current Assets Held for Sale and Discontinued Operations

The Group classifies non-current assets held for sale as held for sale if their book value will be recovered primarily through a sale transaction, rather than through their continued use. These non-current assets held for sale classified as held for sale are measured at the lower of their book value and their fair value less costs to sell. Costs to sell are any additional costs directly attributable to the sale, excluding financial expense and tax.

The condition for classifying an asset as held for sale is considered met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its current condition. The actions required to conclude the sale should indicate that it is unlikely that significant changes in the sale will occur or that the sale will be cancelled. Management must be engaged in the sale, whose completion should be planned within one year from the date of classification.

The depreciation of property, plant and equipment and amortisation of intangible assets ceases when they are classified as available for sale.

Assets and liabilities classified as held for sale are shown separately under current items in the Financial Statements. Income items related to assets held for sale and discontinued operations, when related to significant business lines or geographical areas of operation, are excluded from the result of continuing operations and are shown in the income statement in a single line as net profit/(loss) from assets held for sale or discontinued operations net of the related tax effect.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, bank and postal deposits, and short-term financial investments (maturity of three months or less after purchase date) that are highly liquid, readily convertible into cash and are subject to insignificant risk of changes in value.

Equity

Share capital consists of the outstanding ordinary shares recorded at par value.

Costs related to the issuance of new shares or options are classified in Equity (net of the associated tax benefit) as a deduction from the proceeds arising from the issuance of these instruments.

Treasury shares

In the case of buyback of treasury shares, the price paid, inclusive of any directly attributable ancillary expense, is deducted from the Group's Equity until such shares are cancelled, re-issued, or sold. When treasury shares are resold or re-issued, the proceeds, net of any directly attributable ancillary expense and related tax effect, are accounted for as Group Equity.

Consequently, no profit or loss is recognised in the consolidated Income Statement at the time of purchase, sale or cancellation of treasury shares.

Liabilities from employee benefits

Post-employment benefits are defined on the basis of plans, which according to their characteristics are divided into "defined-contribution" and "defined-benefit" plans.

Employee benefits substantially include the provisions for severance indemnities of the Group's Italian companies and of retirement provisions.

Defined-contribution plans

Defined-contribution plans are formalised post-employment benefit plans under which a company makes payments to an insurance company or pension fund and will have no legal or implied obligation to pay further contributions if the fund does not have sufficient assets at vesting to pay all employee benefits related to employment in the current and prior years. These contributions, paid in exchange for employee service, are recorded as an expense in the period incurred.

Defined-benefit plans and other long-term benefits

Defined-benefit plans are formalised post-employment benefit plans that constitute a future obligation for the Group. The undertaking bears the actuarial and investment risks associated with the plan.

The Group uses the projected unit credit method to determine the present value of liabilities of the plan and the cost of services.

This actuarial calculation method requires the use of objective actuarial hypotheses, compatible and based on demographic variables (mortality rate, personnel turnover) and financial variables (discount rate, future increases of salaries and wages and benefits). When a defined-benefit plan is entirely or partly financed by contributions paid to a fund, legally separate from the undertaking, or to an insurance company, the plan assets are measured at fair value. The amount of the obligation is thus accounted for, net of the fair value of the plan assets that will be used to settle that obligation directly.

Revaluations, which include actuarial gains and losses, changes in the effect of the asset ceiling (excluding net interest), and the return on plan assets (excluding net interest), are recognised immediately in the Statement of Financial Position by debiting or crediting retained earnings through the other items of the Statement of Comprehensive Income in the year in which they arise. Revaluations are not reclassified in the Income Statement in subsequent years. Other longterm benefits are employee benefits other than post-employment benefits. Accounting is similar to defined-benefit plans.

Provisions for risks and charges

Provisions for risks and charges are set aside to cover liabilities of uncertain amount or due date that must be recognised in the financial statements when the following concurrent conditions are met:

• the undertaking has a present obligation (legal or constructive), i.e. under way at the reporting date, as a result of a past event;
• it is likely that economic resources will be required to fulfil the obligation;
• the amount needed to fulfil the obligation can be reliably estimated;
• risks for which the onset of a liability is merely potential are shown in the notes to the financial statements, in the commentary part of the provisions, without making a provision.

In the case of events that are only remote, i.e., events that have minor chances of occurring, no provision is accounted for, nor is additional or supplementary information provided.

Allocations are booked at the amount representing the best estimate of the amount that the undertaking would pay to pay the obligation or to transfer it to third parties at the reporting date. If the effect of discounting the value of money is significant, allocations are determined by discounting expected future cash flows at a pre-tax discount rate that reflects the current market valuation of the time value of money. When discounting is carried out, the increase in the provision due to the passage of time is recognised as a financial expense.

Provisions are recorded at the present value of the expected financial resources to be used against the obligation. Provisions are periodically updated to reflect changes in cost estimates, timing of implementation, and discounted value, if any; revisions in provision estimates are charged to the same line item in the Income Statement that previously included the allocation and to the Income Statement for the year in which the change occurred.

The Group recognises restructuring provisions if there is an implied obligation to restructure and there is a formal plan for restructuring, which has raised a valid expectation in those affected that it will carry out the restructuring either by starting to implement that plan or because it has announced its main features to those affected by it.

Share-based incentive plan - Equity-settled payment transactions

A number of Group employees receive part of the remuneration as share-based payments, therefore the employees provide services in exchange for shares ("equity settled transactions").

The cost of equity-settled transactions is determined by the fair value on the date the assignment is made using an appropriate valuation method.

This cost is recognised under labour costs for the period in which the conditions related to the achievement of targets and/or the performance of the services are fulfilled, with a corresponding increase in equity as a balancing entry. The cumulative costs recorded for such transactions at the end of each year up to the vesting date are commensurate with the expiry of the vesting period and the best estimate of the number of equity instruments that will actually vest.

Service or performance conditions are not taken into account when defining the fair value of the plan at the grant date. However, the probability of these conditions being met is taken into account when defining the best estimate of the number of equity instruments that will vest. Arm's length conditions are reflected in the fair value at the grant date. Any other conditions attached to the plan that do not involve a service obligation are not considered to be a vesting condition. Non-vesting conditions are reflected in the fair value of the plan and result in the immediate recognition of the cost of the plan, unless there are also service or performance conditions.

No cost is recognised for rights that do not ultimately vest because the performance and/or service conditions have not been met. When rights include a market condition or a non-vesting condition, they are treated as if they had vested regardless of whether the market conditions or other non-vesting conditions they are subject to are met or not, with the understanding that all other performance and/or service conditions must be met.

If the conditions of the plan are changed, the minimum cost to be recognised is the fair value at the grant date in the absence of the plan change, assuming that the original conditions of the plan are met. Additionally, a cost is recognised for any change that results in an increase in the total fair value of the payment plan, or is otherwise favourable to employees; this cost is measured by reference to the date of change. When a plan is cancelled by the entity or the counterpart, any remaining fair value element in the plan is immediately transferred to the income statement.

Income tax

Income tax includes current and deferred tax. Income tax is generally charged to the Income Statement, except when it relates to cases recognised directly in Equity, in which case the tax effect is recognised directly in Equity.

Current income tax is calculated by applying to taxable income the tax rate in force at the reporting date and includes the adjustments to tax related to prior periods.

Deferred tax is calculated using the liability method applied to temporary differences between the amount of assets and liabilities in the consolidated financial statements and the corresponding amounts recognised for tax purposes.

Deferred tax assets are recognised against all deductible temporary differences and unused tax receivables and losses carried forward, to the extent that it is probable that there will be adequate future taxable profits that may make the use of deductible temporary differences and tax receivables and losses carried forward applicable.

Deferred tax is calculated at the tax rate expected to be in force at the time the asset is sold or the liability is settled.

In 2024, the subsidiaries Datalogic S.r.l., Datasensing S.r.l., and IP Tech S.r.l. participate, in a "consolidated" position together with the parent Datalogic S.p.A. in a "consolidating" position, in the optional tax system of the "National Tax Consolidation" (NTC), pursuant to Articles 117 and following of the TUIR. This system determines the transfer by each consolidated company to the consolidating company of their respective individual taxable incomes, whether they are positive or negative. Datalogic S.p.A., by aggregating the individual tax results, including its own, consolidates a single overall tax result, establishing a single credit or debt position with the tax authorities.

Revenue recognition

Revenue is measured at fair value of the amount collected or collectable from the sale of goods or provision of services within the scope of the Group's ordinary business activity. Revenue is shown net of VAT, returns, discounts and rebates and after eliminating sales with Group companies.

Pursuant to IFRS 15, the Group recognises revenue after identifying the contracts with its customers, as well as performance obligations to be fulfilled, determining the consideration it expects to be entitled to in exchange for the sale of goods or provision of services, and after evaluating the manners to satisfy such performance obligations (satisfaction at point in time or over time).

Pursuant to the provisions set out by IFRS 15, the Group recognises revenue only when the following obligations have been met:

• the parties to the contract have approved the contract and are committed to perform their respective obligations;
• each party's rights regarding the goods or services to be transferred can be identified;
• payment terms of transferable goods and services can be identified;
• the contract is of a commercial type;
• consideration in exchange for the goods sold or transferred services is likely to be received.

If the aforesaid requirements are met, the Group recognises revenue by applying the above rules.

Sale of goods

Revenue resulting from the sale of equipment is recognised when the control of the goods is transferred to the customer.

The Group considers whether there are other promises in the contract that represent performance obligations on which a portion of the transaction consideration is to be allocated (e.g., guarantees, customer loyalty plans). In determining the transaction price for the sale of the equipment, the Group considers the impact resulting from the existence of the variable consideration, significant financing items, non-monetary considerations and considerations to be paid to the customer (if applicable).

Datalogic Group grants trade discounts and rebates for achieving certain targets to its customers and accepts returns from them in accordance with existing contractual agreements. These adjustments are recorded as a reduction in revenue. Specifically, the Group grants certain customers the right to return, under certain contractual conditions, goods sold and to receive a full or partial refund of any consideration paid or another product in return. Returns are accounted for in accordance with IFRS 15, recognising:

• as a reduction in revenue, the amount of consideration expected for the return;
• as an increase in liabilities, the amount of future refunds to be paid to the customer as a source of the return under the credit note to be issued;
• as an increase in assets, the amount relating to inventory (and the corresponding adjustment of the cost of sales) for the right to recover the products from the customer upon settlement of the liability for future refunds.

The processes and methods for assessing and determining the estimated portion of discounts to be paid and returns to be received after year end are based on the conditions agreed with the large distributors, as well as on accounting and management data produced internally and received from the sales network.

Provision of services

The Group provides installation, maintenance, repair and technical support services. The services are provided both separately, based on contracts signed with customers, and jointly with the sale of the goods to customers.

As regards contracts related to both the sale of goods and the provision of services, the Group recognises two separate obligations when the promises to transfer equipment and provide services can be divided and identified separately. As a result, the Group allocates the transaction price based on the related prices for the sale of goods and services.

Revenue on construction contract

Contracts that envisage the construction of an asset or the combination of closely related goods and services are recognised over time if the following conditions set out in IFRS 15 are met: (i) the service does not create an asset with an alternative use for the Group, (ii) the Group has an enforceable right to payment for performance completed until the date considered.

Revenue related to these contractual cases is recognised based on the status of performance obligations, when control of the goods and services is transferred to the customer for an amount that reflects the consideration the Group expects to receive in exchange for them.

Their presentation in the Statement of Financial Position is as follows:

• the amount due from customers for contract works is shown as an asset under "trade receivables from third parties", when incurred costs plus margins recognised (less losses recognised) exceed the advances received;
• the amount due to customers for contract works is shown as a liability, under "trade payables to third parties", when advances received exceed costs incurred plus margins recognised (less losses recognised).

Government grants are recognised - regardless of the existence of a formal grant resolution - when there is reasonable certainty that the entity will comply with the conditions attached to the grant and therefore that the grant will be received.

Government grants obtainable as reimbursement for expense and costs already incurred, or for the purpose of providing immediate financial aid to the recipient company with no future related costs, are recognised as income in the period in which they become receivable.

Income from dividends and interest

Income from dividends and interest is respectively recognised as follows:

• dividends, when the right to receive payment is determined (with receivable offset at the time of the distribution resolution);
• interest, applying the effective interest rate method.

Dividends distributed

Dividends are recognised when the right for shareholders to receive payment arises, which normally corresponds to the date of the Annual Shareholders' Meeting that resolves on the distribution of dividends.

The dividends distributable to Group Shareholders are recognised as an equity movement in the year when they are approved by the Shareholders' Meeting.

Earnings per share

Basic

Basic EPS is calculated by dividing the Group's profit by the weighted average number of ordinary shares outstanding during the year, excluding treasury shares.

Diluted

Diluted EPS is calculated by dividing the Group's profit by the weighted average number of ordinary shares outstanding during the year, excluding treasury shares. For the purpose of calculating diluted EPS, the weighted average number of shares outstanding is adjusted by assuming the conversion of all potential shares with dilutive effects, while the Group's net result is adjusted for the after-tax effects of conversion.

Treatment of foreign currency transactions

Functional presentation currency

The financial statement items of each Group entity are shown in the currency of the economic environment in which the entity operates, so-called functional currency. The Consolidated Financial Statements are presented in Euro thousands, the Euro being the Parent Company's functional and presentation currency.

Transactions in currencies other than the functional currency

Transactions in currencies other than the functional currency are initially translated into the functional currency by using the exchange rate at the transaction date. At the end of the reporting period, monetary assets and liabilities denominated in non-functional currencies are translated into the functional currency at the exchange rate in effect on the closing date. Exchange differences realised upon collection of receivables and payment of payables in foreign currencies and those arising from the translation of monetary assets and liabilities into non-functional currencies at the closing date are recorded in the Income Statement under financial income and expense. Non-monetary assets and

liabilities denominated in non-functional currencies that are measured at cost are translated at the exchange rate on the date of the transaction, while those measured at fair value are translated at the exchange rate on the date such value is determined.

Segment disclosure

According to the definition provided in IFRS 8, an operating segment is a component that engages in business activities that generate costs and revenue, whose operating results are regularly reviewed by the entity's top operating decisionmakers for decisions on resource allocation to the segment and performance assessment, and for which separate information is available. A geographical segment pertains to a set of activities that offers products or services within a specific economic environment, which is subject to distinct risks and returns compared to segments operating in other economic environments.

It should be noted that as of the date of these consolidated financial statements, as a result of the sale of Informatics Holdings Inc, no operating segments have been identified that meet all the requirements of IFRS 8 for separate disclosure.

The identification of the operating segments was therefore carried out by providing information regarding the geographical segments in which the Group operates. Specifically:

• revenue from external customers allocated to geographical areas based on which Group management monitors and analyses performance;
• non-current assets other than financial instruments and deferred tax assets broken down using the same approach used for revenue.

6) IFRS accounting standards, amendments and interpretations applied by the Group as from January 1, 2024

The following IFRS international accounting standards, amendments and interpretations have been applied for the first time by the Group as of January 1, 2024:

• On January 23, 2020, the IASB published "Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current" and on October 31, 2022 published "Amendments to IAS 1 Presentation of Financial Statements: Non-Current Liabilities with Covenants". These changes aim to clarify how to classify payables and other short-term or long-term liabilities. Additionally, the amendments also improve the information that an entity must provide when its right to defer settlement of a liability for at least twelve months is subject to meeting certain parameters (i.e., covenants). The adoption of these amendments had no effects on the Group's consolidated financial statements.
• On September 22, 2022, the IASB published "Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback". The document requires the seller-lessee to measure the lease liability arising from a sale & leaseback transaction in a way that it does not recognise the gain or loss that relates to the right of use it retains. The adoption of these amendments had no effects on the Group's consolidated financial statements.
• On May 25, 2023, the IASB published "Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements". The document requires an entity to provide additional information on reverse factoring arrangements that will enable financial statement users to assess how financial arrangements with suppliers may affect the entity's liabilities and cash flows and to understand the effect of such

arrangements on the entity's exposure to liquidity risk. The adoption of these amendments had no effects on the Group's consolidated financial statements.

7) IFRS accounting standards, amendments and interpretations endorsed by the European Union at December 31, 2024, but not yet applied on a compulsory basis and not adopted in advance by the Group at December 31, 2024

At the date of this document, the competent bodies of the European Union have not yet completed the endorsement process required for the adoption of the amendments and the standards described below, but these standards are not applicable on a compulsory basis and have not been adopted in advance by the Group at December 31, 2024:

▪ On August 15, 2023, the IASB published "Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability". The document requires an entity to apply a methodology to be applied consistently in order to ascertain whether one currency can be converted into another and, when this is not feasible, how to determine the exchange rate to be used and the disclosure to be made in the notes to the financial statements. The amendment will apply as of January 1, 2025, but early application is permitted. The directors do not expect any material effect on the Group's consolidated financial statements from the adoption of this amendment.

8) IFRS accounting standards, amendments and interpretations not yet endorsed by the European Union

At the date of this document, the competent bodies of the European Union have not yet completed the endorsement process required for the adoption of the amendments and the standards described below.

• On May 30, 2024, the IASB published "Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7″. The document addresses several issues identified in the post-implementation review of IFRS 9, particularly concerning the accounting treatment of financial assets with returns that fluctuate based on the achievement of ESG targets, such as green bonds. Specifically, the amendments aim to:
  • clarify the classification of financial assets with variable returns and tied to environmental, social and corporate governance (ESG) targets and the criteria to be used for the SPPI test assessment;
  • determine that the date of settlement of liabilities through electronic payment systems is the date on which the liability is settled. However, an entity is permitted to adopt an accounting policy to allow a financial liability to be derecognised before delivering cash on the settlement date under certain specific conditions.

With these amendments, the IASB has also introduced additional disclosure requirements for investments in equity instruments designated to FVOCI in particular.

The amendments will apply from the financial statements of financial years beginning on or after January 1, 2026. The directors do not expect any material effect on the Group's consolidated financial statements from the adoption of this amendment.

• On July 18, 2024, the IASB published "Annual Improvements Volume 11". The document includes clarifications, simplifications, corrections and changes aimed at improving the consistency of several IFRS Accounting Standards. The amended standards are:

  • IFRS 1 First-time Adoption of International Financial Reporting Standards;
  • • IFRS 7 Financial Instruments: Disclosures and related guidance on the implementation of IFRS 7;
  • IFRS 9 Financial Instruments;

• IFRS 10 Consolidated Financial Statements; and

• IAS 7 Statement of Cash Flows.

The amendments will apply as of January 1, 2026, but early application is permitted. The directors will evaluate the possible effects of the introduction of this new standard on the Group's consolidated financial statements in the coming months.

• On December 18, 2024, the IASB published the amendment "Contracts Referencing Nature-dependent Electricity - Amendment to IFRS 9 and IFRS 7.". The document aims to support entities in reporting the financial effects of renewable electricity purchase agreements (often structured as Power Purchase Agreements). Based on these contracts, the amount of electricity generated and purchased can vary based on uncontrollable factors such as weather conditions. The IASB has made targeted amendments to IFRS 9 and IFRS 7. The amendments include:
  • a clarification regarding the application of "own use" requirements to this type of contract;
  • the criteria for allowing such contracts to be accounted for as hedging instruments; and,
  • new disclosure requirements to allow financial statement users to understand the effect of these contracts on an entity's financial performance and cash flows.

The amendment will apply as of January 1, 2026, but early application is permitted. The directors do not expect any material effect on the Group's consolidated financial statements from the adoption of this amendment.

• On April 9, 2024, the IASB published a new standard IFRS 18 Presentation and Disclosure in Financial Statements, which will supersede IAS 1 Presentation of Financial Statements. The new standard aims to improve the presentation of reporting formats, with particular reference to the income statement format. Specifically, the new standard requires the following:
  • to classify revenue and expense into three new categories (operating section, investment section, and financial section), in addition to the tax and discontinued operations categories already in the income statement;
  • to present two new sub-totals, operating profit/loss and profit/loss before interest and tax (i.e. EBIT).

The new standard also:

• requires more information on performance measures defined by management;
• introduces new criteria for information aggregation and disaggregation; and,
• introduces a number of changes to the format of the statement of cash flows, including a requirement to use operating profit/loss as the starting point for the presentation of the statement of cash flows prepared

under the indirect method and the elimination of certain classification options for certain items that currently exist (such as interest paid, interest received, dividends paid and dividends received).

The new standard will take effect on January 1, 2027, but early application is permitted. The directors will evaluate the possible effects of the introduction of this new standard on the Group's consolidated financial statements in the coming months.

9) Consolidation scope

This Consolidated Annual Financial Report at December 31, 2024 includes the income statement and balance sheet data of Datalogic S.p.A. and all the companies that it directly or indirectly controls.

On March 7, 2024, the sale of 100% of the subsidiary Informatics Holdings Inc. was finalised, followed by the deconsolidation of such entity as of that date. The company's results of operations up to the date of deconsolidation were presented in the income statement in a single line as net profit/(loss) from discontinued operations, as Informatics Holdings Inc. represented an operating segment of the Group and corporate goodwill a separate Cash-Generating Unit.

The list of investments included in the consolidation area appears in Annex 2, with an indication of the methodology used.

10) Use of estimates and assumptions

The preparation of the Consolidated Annual Financial Report requires the Directors to apply accounting standards and methods that, in certain cases, are based on valuations and estimates based on historical experience and assumptions that are evaluated from time to time according to the specific cases. The application of these estimates and assumptions affects the amounts of revenue, expense, assets and liabilities and their disclosure, as well as the disclosure of contingent liabilities. The results of financial statement items for which the above estimates and assumptions were used may differ from those shown owing to the uncertainty surrounding the assumptions and conditions on which the estimates are based.

Following are the assumptions regarding the future and other main causes of uncertainty in estimates that, at the reporting date, show a risk of resulting in adjustments to the carrying amounts of assets and liabilities within the next year. The Group has based its assumptions and estimates on parameters available when preparing the Consolidated Financial Statements. The current circumstances and assumptions on future developments may however change upon occurrence of market changes or events beyond the Group's control. Upon their occurrence, these changes are reflected in the assumptions.

Impairment of non-financial assets (Goodwill, Tangible and Intangible Fixed Assets and Rights of Use)

An impairment occurs when the book value of an asset or CGU exceeds its recoverable value, which is the higher of its fair value less costs to sell and its value in use. Fair value less costs to sell is the amount obtainable from the sale of an asset or cash-generating unit in an arm's length transaction between knowledgeable, willing parties, less the costs to sell. The value in use is calculated by using a discounted cash-flow model. Cash flows result from plans. The recoverable value depends significantly on the discounting rate used in the discounted cash flow model, as well as on expected

future cash flows and the growth rate used for extrapolation. Key assumptions used to determine the recoverable value for the various cash generating units, including a sensitivity analysis, are described in Note 2.

Tax

Deferred tax assets are recognised to the extent that it is probable that there will be a taxed profit in the future such that they can be used. Material estimates by Management are required to determine the amount of tax assets that can be recognised based on the level of future taxable profits, the timing of their occurrence, and tax planning strategies. Deferred tax liabilities for tax on retained earnings of subsidiaries, affiliates or joint ventures are not recognised to the extent that it is probable that their distribution will not occur in the foreseeable future. Therefore, estimates by Management are required to determine the amount of tax assets that may be recognised and tax liabilities that may not be recognised based on the level of future taxable profits, the timing of their occurrence, and tax planning strategies. The long-term nature, as well as the complexity of regulations in various jurisdictions, differences arising between actual results and the assumptions made, or future changes in those assumptions, may require future adjustments to income tax and costs and benefits already recorded.

Fair value of financial instruments

When the fair value of a financial asset or liability recognised in the statement of financial position cannot be measured by relying on quotations in an active market, fair value is determined using various valuation techniques. Inputs included in this model are taken from observable markets where possible, otherwise, some degree of estimation is required to define fair values.

Development costs

The Group capitalises costs related to projects for the development of products. The initial cost capitalisation is based on the confirmation by Management of the technical and economic feasibility of the project. In order to determine the amounts to be capitalised, the Directors assess the expected future cash flows related to the project, as well as the discount rates to be applied and the periods when the expected benefits arise.

Share-based incentive plan - Equity-settled payment transactions

Certain employees of the Group receive a portion of their compensation as share-based payments. The cost of equitysettled transactions is determined by the fair value of instruments at the date of the assignment. The cumulative costs recorded for such transactions at the end of each year up to the vesting date are commensurate with the expiry of the vesting period and the best estimate of the number of equity instruments that will actually vest. Evaluation processes and manners, as well as the determination of the abovementioned estimates, are based on assumptions that, for their nature, involve reliance on the judgement of the Directors.

Other (Provisions for risks and charges, doubtful accounts, inventory write-down, revenue, discounts and returns)

Provisions for risks are based on assessments and estimates based on historical experience and assumptions that are deemed reasonable and realistic from time to time depending on the relevant circumstances.

The recognition process of Group revenue includes estimates related to both the amount of revenue, based on the criterion of completion percentage, and the determination of discounts and returns granted to customers, but still unclaimed. Evaluation processes and manners, as well as the determination of such estimates, are based on assumptions that, for their nature, involve reliance on the judgement of the Directors.

MANAGEMENT OF FINANCIAL RISKS

Risk factors

The Group is exposed to various types of financial risks in carrying out its business, including:

• market risk, specifically:
  • foreign exchange risk, relating to operations in currency areas other than the currency of denomination;
  • interest rate risk, connected with the Group's level of exposure to financial instruments, generating interest and recognised in the Statement of Financial Position;
• credit risk, deriving from trade transactions or from financing activities;
• liquidity risk, referring to the availability of financial resources and access to the credit market.

Financial risk management is an integral part of management of Datalogic Group's business activities. Market and liquidity risk management is carried out centrally by the Parent Company through the central treasury, which acts directly on the market possibly also on behalf of subsidiaries and investees. Credit risk management is instead assigned to the Group's operating units.

MARKET RISK

Foreign exchange risk

Datalogic operates internationally and is exposed to translational and transactional foreign exchange risk. Translational risk refers to the translation into Euro during consolidation of the financial statements of foreign companies that have not adopted the Euro as functional and presentation currency. The key currencies are the US dollar and the Chinese Renminbi. Transactional risk refers to trade transactions (foreign currency receivables/payables) and financial transactions (foreign currency borrowings or loans) of Group companies in currencies other than their functional and presentation currency. The currency to which the Group is most exposed is the US dollar.

To enable full understanding of the impact of foreign exchange risk on the Group's consolidated financial statements, a sensitivity analysis of foreign exchange balances to changes in the exchange rate was conducted. The variability parameters applied were identified among the foreign exchange rate differences considered reasonably possible, with all other variables remaining equal.

The following table shows the results of the analysis at December 31, 2024:

USD	Nominal value	Portion exposed to exchange rate risk	5%	-5%
Exchange rates		1.0389	1.0908	0.9870
Financial assets
Cash and cash funds	81,436	30,760	(1,465)	1,619
Trade and other receivables	93,344	39,432	(1,878)	2,075
Financial liabilities
Loans	90,952	435	21	(23)
Trade and other payables	144,982	66,379	3,161	(3,494)
Net impact on Income Statement			(160)	177

CNY Nominal value	Portion exposed to exchange rate risk	5%	-5%
----------------------	------------------------------------------	----	-----

Exchange rates		7.5833	7.9625	7.2041
Financial assets
Cash and cash funds	81,436	4,735	(225)	249
Trade and other receivables	93,344	5,859	(279)	308
Financial liabilities
Loans	90,952	1,859	89	(98)
Trade and other payables	144,982	2,171	103	(114)
Net impact on Income Statement			(313)	344

At December 31, 2024, the Group has no financial instruments to hedge changes in foreign exchange rates.

Interest rate risk

Datalogic Group is exposed to interest rate risk associated with the financial assets and liabilities in place. The aim of interest rate risk management is to limit and stabilize the negative effects on cash flows subject to changes in interest rates. At December 31, 2024, the Group has no financial instruments to hedge changes in interest rates.

To enable full understanding of the potential effects of rate fluctuations the Group is subject to, a sensitivity analysis was carried out on the items most subject to risk, assuming a change in the interest rate for Euro and USD underlyings of 75 basis points and the interest rate for CNY underlyings of 10 basis points. It should be noted that the Group's main bank loan is fixed-rate. The analysis was carried out on reasonable assumptions, and the results are shown below with regard to the date of December 31, 2024:

EUR	Nominal value	Portion exposed to interest rate risk	+75bp	-75bp
Financial assets
Cash and cash funds	81,436	37,487	281	(281)
Financial liabilities
Loans	90,952	87,998	(660)	660
Net impact on Income Statement			(379)	379

USD	Nominal value	Portion exposed to interest rate risk	+75bp	-75bp
Financial assets
Cash and cash funds	81,436	30,760	231	(231)
Financial liabilities
Loans	90,952	435	(3)	3
Net impact on Income Statement			227	(227)

CNY	Nominal value	Portion exposed to interest rate risk	+10bp	-10bp
Financial assets
Cash and cash funds	81,436	4,735	5	(5)
Financial liabilities
Loans	90,952	1,859	(2)	2
Net impact on Income Statement			2	(2)

Credit risk

The Group is exposed to the credit risk associated with commercial transactions and has therefore put in place risk protection measures to minimize non-performing amounts through timely monitoring of overdue receivables, management of customer credit limits, and collection of financial information of companies with higher exposure. Much of Datalogic's business is conveyed on a network of well-known customers/distributors, who statistically have no credit recoverability issues. Customers requesting deferred conditions of payment are subject to screening procedures concerning their creditworthiness (degree of solvency and reliability). Trade receivables are subject to individual impairment testing if they show potential and significant impairment indicators.

The Group protects itself against credit risk also through factoring instruments without recourse. At December 31, 2024, factored trade receivables amounted to €30,408 thousand (€30,218 thousand at end 2023).

The maximum exposure to credit risk on the balance sheet date is the book value of each class of financial asset presented in Note 5.

Liquidity risk

Datalogic Group's liquidity risk is minimized by the timely management by the Parent Company's treasury department. Bank debt and liquidity are managed centrally through financial resource optimization tools, including cash pooling. The Parent Company manages and negotiates medium/long-term loans and credit lines to meet the Group's requirements. Centralized negotiation of credit lines and loans, together with management of the Group's cash resources, are aimed at optimising financing costs.

It should be noted that at December 31, 2024, the Group's liquidity reserve – which includes uncommitted but undrawn credit lines - amounts to €189 million and is considered adequate to meet commitments existing as of the date the financial statements were drawn up.

	December 31, 2024
	0 - 1 year	1 - 5 years	over 5 years	Total
Loans	13,960	64,693		78,653
Financial payables from leases	3,718	5,728	1,624	11,070
Bank overdrafts	37			37
Other financial payables	605			605
Payables to factoring companies	587			587
Trade and other payables	144,982	20,057		165,039
Total	163,889	90,478	1,624	255,991

The following table shows financial liabilities by maturity:

Changes in liabilities resulting from cash flows

The change in financial liabilities is shown below with a distinction between the current (C) and non-current (NC) portions.

Financial liabilities Loans	Bank loans		Factoring payables		Lease payables	Other financial payables	Bank overdrafts	Total
	C	NC	C	C	NC	C	C

01.01.2024	14,428	78,334	592	3,863	7,767	817	149	105,950
New loans				1,854	2,748			4,602
Repayments	(14,035)		(4)	(4,560)		(284)	(112)	(18,995)
Transfers	14,000	(14,000)		3,988	(3,988)			-
Chg. Consolidation scope								-
Exchange differences				(9)				(9)
Chg. Amort. Cost	(433)	359				71		(3)
Other movements				(1,418)	825			(593)
31.12.2024	13,960	64,693	587	3,718	7,352	605	37	90,952

Consolidated Annual Financial Report at December 31, 2024

The Group manages capital with the intention of protecting its own continuity and optimising shareholder value, maintaining an optimal capital structure while reducing its cost. In line with sector practice, the Group monitors capital based on the gearing ratio. This is expressed by the ratio between net debt and total capital as explained below.

	31.12.2024	31.12.2023
Net debt (A)	9,516	35,321
Equity (B)	431,122	411,131
Total capital [(A)+(B)]=C	440,638	446,452
"Gearing ratio" (A)/(C)	2.16%	7.91%

SEGMENT DISCLOSURE

An operating segment is a component of an entity that undertakes revenue-generating business activities and

costs, the operational results of which are reviewed periodically at the highest level of operational decision-making for the purpose of making decisions about resources to be allocated to the sector and evaluating results. A geographical segment pertains to a set of activities that offers products or services within a specific economic environment, which is subject to distinct risks and returns compared to segments operating in other economic environments. It should be noted that as of the date of these consolidated financial statements, as a result of the sale of Informatics Holdings Inc, no operating segments have been identified that meet all the requirements of IFRS 8 for separate disclosure. In accordance with IFRS 8, information on geographical segments is shown below. Specifically:

• revenue from external customers allocated to geographical areas based on which Group management monitors and analyses performance;
• non-current assets other than financial instruments and deferred tax assets broken down using the same approach used for revenue.

	31.12.2024	%	31.12.2023 Restated	%	Change	% chg.
Italy	222,966	45.16%	241,992	46.65%	-19,026	-7.86%
EMEAI (excluding Italy)	59,093	11.97%	61,601	11.88%	-2,508	-4.07%
Total EMEAI	282,059	57.12%	303,594	58.53%	-21,534	-7.09%
Americas	155,322	31.46%	150,305	28.98%	5,017	3.34%
APAC	56,386	11.42%	64,794	12.49%	-8,408	-12.98%
Total revenue	493,767	100.00%	518,693	100.00%	-24,926	-4.81%

The income information at December 31, 2024 and at December 31, 2023 is the following:

The equity information related to the geographical segments at December 31, 2024 and at December 31, 2023 is the following:

	31.12.2024	31.12.2023	Change
Italy	132,366	137,990	(5,624)
EMEAI (excluding Italy)	48,907	50,640	(1,733)
Americas	194,471	200,056	(5,585)
APAC	18,668	17,204	1,464
Total non-current assets	394,412	405,890	(11,478)

Comparative figures include the balances of Informatics.

ASSETS

Note 1. Tangible fixed assets

Tangible fixed assets at December 31, 2024 amounted to €93,479 thousand. The breakdown of the item at December 31, 2024 and at December 31, 2023 is shown below.

	31.12.2024	31.12.2023	Change
Land	14,432	12,597	1,835
Buildings	51,381	51,520	(139)
Other assets	25,488	26,892	(1,404)
Fixed assets under construction and advances	2,178	3,031	(853)
Total	93,479	94,040	(561)

The "Other assets" item at December 31, 2024 includes the following categories: industrial equipment and moulds (€12,042 thousand), plant and machinery (€6,135 thousand), office furniture and machines (€4,117 thousand), generic plant related to buildings (€2,054 thousand), lightweight constructions (€209 thousand), commercial equipment and demo rooms (€572 thousand), leasehold improvements (€204 thousand), and motor vehicles (€155 thousand). The balance of "Fixed assets under construction and advances", equal to €2,178 thousand, is composed primarily of moulds under construction and equipment and production lines built in house, and of improvements to owned buildings.

Details of changes at December 31, 2024 and at December 31, 2023 are as follows:

			Other assets	Fixed assets
	Land			under	Total
	Buildings			construction
				and advances
Historical cost	12,597	63,744	172,809	3,031	252,181
Accumulated depreciation	-	(12,224)	(145,917)		(158,141)
Net book value at 01.01.2024	12,597	51,520	26,892	3,031	94,040
Increases 31.12.2024
Capital expenditure	2,527	41	5,702	1,366	9,636
Change in consolidation scope	-	-	1,065		1,065
Total	2,527	41	6,767	1,366	10,701
Decreases 31.12.2024
Disposals, historical cost	(1,019)	(536)	(2,779)	(1)	(4,335)
Disposals, accum. depreciation	-	225	2,695	-	2,920
Change in consolidation scope	-	-	(1,226)	-	(1,226)
Depreciation	-	(1,087)	(9,475)	-	(10,562)
Total	(1,019)	(1,398)	(10,785)	(1)	(13,203)
Other changes 31.12.2024
Incoming transfers at historical cost	-	(1,057)	2,210	(2,210)	(1,057)
(Outgoing transfers, accum. depreciation)	-	1,057	-	-	1,057
Exchange diff. in historical cost	327	1,376	2,186	(8)	3,881
Exchange diff. in accum. depreciation	-	(158)	(1,782)	-	(1,940)
Total	327	1,218	2,614	(2,218)	1,941
Historical cost	14,432	63,568	181,193	2,178	261,371
Accumulated depreciation	-	(12,187)	(155,705)	-	(167,892)
Net book value at 31.12.2024	14,432	51,381	25,488	2,178	93,479

	Land	Buildings	Other assets	Fixed assets under construction and advances	Total
Historical cost	12,740	63,515	171,586	3,785	251,626
Accumulated depreciation	-	(11,066)	(141,761)	-	(152,827)
Net book value at 01.01.2023	12,740	52,449	29,825	3,785	98,799
Increases 31.12.2023
Capital expenditure	-	743	5,714	1,806	8,263
Total	-	743	5,714	1,806	8,263
Decreases 31.12.2023
Disposals, historical cost	-	-	(5,222)	(6)	(5,228)
Disposals, accum. depreciation		-	5,093	-	5,093
Depreciation		(1,174)	(10,741)	-	(11,915)
Total	-	(1,174)	(10,870)	(6)	(12,050)
Other changes 31.12.2023
Incoming transfers at historical cost	-	-	2,116	(2,568)	(452)
(Outgoing transfers, accum. depreciation)			452	-	452
Exchange diff. in historical cost	(143)	(591)	(1,459)	14	(2,179)
Exchange diff. in accum. depreciation	-	93	1,114	-	1,207
Total	(143)	(498)	2,223	(2,554)	(972)
Historical cost	12,597	63,744	172,809	3,031	252,181
Accumulated depreciation	-	(12,224)	(145,917)	-	(158,141)
Net book value at 31.12.2023	12,597	51,520	26,892	3,031	94,040

Note 2. Intangible fixed assets

Intangible fixed assets at December 31, 2024 amounted to €285,002 thousand. The breakdown of the item at December 31, 2024 and at December 31, 2023 is shown below:

	31.12.2024	31.12.2023	Change
Goodwill	202,349	205,352	(3,003)
Development costs	42,707	42,034	673
Other	29,174	36,075	(6,901)
Fixed assets under construction and advances	10,772	10,736	36
Total	285,002	294,197	(9,195)

Details of changes at December 31, 2024 and at December 31, 2023 are as follows:

	Goodwill	Development	Other	Fixed assets	Total
		costs		under
				construction
				and advances
Historical cost	205,352	96,305	184,970	10,736	497,415
Accumulated amortisation		(54,271)	(148,894)	-	(203,218)
Net book value at 01.01.2024	205,352	42,034	36,076	10,736	294,197
Increases 31.12.2024
Capital expenditure	-	9,101	790	7,871	17,762
Change in consolidation scope	(13,895)	(2,393)	(8,253)		(24,541)
Total	(13,895)	6,708	(7,463)	7,871	(6,779)
Decreases 31.12.2024
Disposals, historical cost	-	(2,192)	(9)	(18)	(2,219)
Disposals, accum. amortisation	-	32	9	-	41
Change in consolidation scope	-	1,616	8,179	-	9,795
Amortisation	-	(13,364)	(7,924)	-	(21,288)
Total		(13,908)	255	(18)	(13,671)
Other changes 31.12.2024
Incoming transfers at historical cost	-	7,748	98	(7,846)	-
Exchange diff. in historical cost	10,892	561	5,748	29	17,230
Exchange diff. in accum. amortisation	-	(436)	(5,540)	-	(5,976)
Total	10,892	7,873	306	(7,817)	11,254
Historical cost	202,349	109,130	183,344	10,772	505,595
Accumulated amortisation	-	(66,423)	(154,170)	-	(220,593)
Net book value at 31.12.2024	202,349	42,707	29,174	10,772	285,002

	Goodwill	Development	Other	Fixed assets	Total
		costs		under
				construction
				and advances
Historical cost	212,043	68,407	190,716	21,556	492,722
Accumulated amortisation	-	(41,198)	(147,510)	-	(188,708)
Net book value at 01.01.2023	212,043	27,209	43,206	21,556	304,014
Increases 31.12.2023
Capital expenditure		7,236	1,713	9,681	18,630
Total		7,236	1,713	9,681	18,630
Decreases 31.12.2023
Disposals, historical cost	-	-	(2,872)	(225)	(3,097)
Disposals, accum. amortisation	-	-	2,871	-	2,871
Amortisation	-	(12,662)	(8,301)	-	(20,963)
Total		(12,662)	(8,302)	(225)	(21,189)
Other changes 31.12.2023
Incoming transfers at historical cost	-	21,011	(786)	(20,225)	-
(Outgoing transfers, accum. amortisation)	-	(729)	729	-	-
Exchange diff. in historical cost	(6,691)	(349)	(3,749)	(51)	(10,840)
Exchange diff. in accum. amortisation	-	318	3,264	-	3,582
Total	(6,691)	20,251	(542)	(20,276)	(7,258)
Historical cost	205,352	96,305	185,022	10,736	497,415
Accumulated amortisation	-	(54,271)	(148,947)	-	(203,218)
Net book value at 31.12.2023	205,352	42,034	36,075	10,736	294,197

Goodwill

"Goodwill" amounted to €202,349 thousand and decreased by €3,003 thousand, of which €13,895 thousand due to the deconsolidation of Informatics Holdings Inc., while FX effects came to a positive €10,892 thousand.

	31.12.2024	31.12.2023	Change
Datalogic CGU	202,349	191,690	10,658
Informatics CGU	-	13,662	(13,662)
Total	202,349	205,352	(3,003)

The estimated recoverable value of the Cash Generating Unit (CGU) associated with the goodwill of the Datalogic CGU being evaluated is the corresponding value in use, calculated by discounting at a rate equal to the weighted average cost of capital or "WACC" the future operating cash flows expected to be generated by the CGU based on the Discounted Cash Flow method.

Cash flows are estimated based on a forecast plan prepared by Management. This plan considers the need to comply with the provisions of IAS 36, and represents the best estimate of the foreseeable outlook, based on the business strategies and growth indicators of the relevant industry and markets.

Based on an Unlevered approach, the Group used, through the DCF method, Unlevered Free Cash Flows from Operations (FCFO). The flows expected for the period 2025 - 2029, subject to an explicit forecast, are complemented by the flows related to so-called Perpetuity, which is representative of the Terminal Value. This was calculated using a 2% growth rate g, which represents the long-term expectations for growth.

The discount rate, consisting of the weighted average cost of invested capital (WACC), was estimated before tax and based on the financial structure of Datalogic Group's industry. The WACC used of 7.10% reflects the return-opportunity for all capital contributions, in whatever capacity made.

The following table shows the values of Goodwill and the discount (WACC) and long-term growth (g) rates used for testing purposes at year-end:

	Datalogic CGU
Goodwill	202,349
Weighted average cost of capital (WACC)	7.10%
Long-term growth rate (G)	2%

The impairment test carried out in the above manners showed no impairment losses, as the recoverable value of the CGU at December 31, 2024 was higher than the corresponding net invested capital (carrying amount).

Following the sale of Informatics Holdings Inc., the Datalogic CGU represents the Group's net invested capital. The impairment test also addresses Datalogic S.p.A.'s market capitalization being lower than the Group's consolidated net equity.

DATALOGIC CGU

The recoverable amount of the Datalogic CGU was determined on the basis of the calculation of the value in use, adopting the cash flow projections from the mentioned plan prepared by Management based on the assumptions

approved by the Board of Directors. The discount rate applied to cash flow projections is 7.10% (8.41% in 2023), and cash flows beyond five years were estimated using a 2% growth rate (3% in 2023). During testing for impairment, goodwill of the Datalogic CGU confirmed its carrying amount.

With regard to this CGU, an alternative worst scenario was also prepared, reducing cash flows from operations compared to the base scenario and keeping WACC and G unchanged, without showing impairment loss situations.

Sensitivity to changes in assumptions

The calculation of value in use for selected CGUs is related to the following assumptions:

• gross margin;

• discount rates;

• growth rate used to calculate cash flows after the forecast period.

Gross margin - The forecast of gross margin over the plan years was prepared by the Directors based on historical data of the Group's CGUs and taking account of expectations of trends in the relevant markets and, within the limits of the relevant standards, the effects of planned strategies. A decrease in demand and deteriorating economic conditions, for example due to inflationary effects, can lead to a reduction in gross margin, and impairment.

Discount rates – Discount rates reflect the market assessment of the specific risk of each cash-generating unit, considering the time value of money and the specific risks of the underlying assets that have not already been included in the cash flow estimate. The calculation of the discount rate is based on Group specific circumstances and its operating segments, and it derives from its weighted average cost of capital (WACC).

Estimates of growth rates – The rates are based on business sector analyses. Management acknowledges that the speed of technological development and the possible entry of new players in the market may have a significant impact on the growth rate.

Sensitivity analyses were based on the changes occurring in certain key assumptions, keeping all other assumptions unchanged.

Specifically, the Directors point out that the sensitivity analyses carried out did not show any critical situations.

The variation of the WACC and G rates that would bring the impairment test to breakeven, keeping the other parameters unchanged, is a WACC of 8.5% and a G of 0% (versus 7.10% and 2%, respectively, used for impairment purposes).

Development costs, Other intangible fixed assets and Fixed assets under construction and advances

"Development costs", amounting to €42,707 thousand at December 31, 2024 (€42,034 thousand at December 31, 2023), consists of product development projects.

"Other", amounting to €29,174 thousand, consists primarily of intangible assets acquired through business combinations carried out by the Group, and software licences as detailed below:

	31.12.2024	31.12.2023	Change
Patents	1,966	3,681	(1,715)
Know-how	10,587	12,533	(1,946)
Customer portfolio	10,044	10,943	(899)
Licences	374	880	(506)
Software	6,203	8,038	(1,835)
Total	29,174	36,075	(6,901)

"Fixed assets under construction and advances", amounting to €10,772 thousand (€10,736 thousand at December 31, 2023), is attributable mainly to the capitalisation of costs for product development projects currently under way.

Note 3. Right of use fixed assets

The breakdown of the item at December 31, 2024 and at December 31, 2023 is shown below.

	31.12.2024	31.12.2023	Change
Buildings	8,149	9,181	(1,032)
Vehicles	2,536	2,122	414
Office equipment	120	143	(23)
Total	10,805	11,446	(641)

Details of changes at December 31, 2024 and at December 31, 2023 are as follows:

	Buildings	Vehicles	Office equipment	Total
Historical cost	17,877	5,031	419	23,327
Accumulated depreciation	(8,696)	(2,909)	(276)	(11,881)
Net book value at 01.01.2024	9,181	2,122	143	11,446
Increases 31.12.2024
Increases from changes in contracts	5,438	1,784	55	7,277
Total	5,438	1,784	55	7,277
Decreases 31.12.2024
Decreases in historical cost from changes in contracts	(5,083)	(825)	-	(5,908)
Decreases in accumulated depreciation from changes in contracts	1,540	716	-	2,256
Depreciation	(2,986)	(1,252)	(78)	(4,316)
Total	(6,529)	(1,361)	(78)	(7,968)
Other changes 31.12.2024
Exchange diff. in historical cost	206	(20)	6	192
Exchange diff. in accum. depreciation	(147)	11	(6)	(142)
Total	59	(9)	-	50
Historical cost	18,438	5,970	480	24,888
Accumulated depreciation	(10,289)	(3,434)	(360)	(14,083)
Net book value at 31.12.2024	8,149	2,536	120	10,805

	Buildings	Vehicles	Office	Total
			equipment
Historical cost	20,748	4,785	374	25,907
Accumulated depreciation	(7,158)	(2,788)	(203)	(10,149)
Net book value at 01.01.2023	13,590	1,997	171	15,758
Increases 31.12.2023
Increases from changes in contracts	7,534	1,392	51	8,977
Total	7,534	1,392	51	8,977
Decreases 31.12.2023
Decreases in historical cost from changes in contracts	(10,086)	(1,161)	-	(11,247)
Decreases in accumulated depreciation from changes in contracts	1,234	1,013	-	2,247
Depreciation	(2,972)	(1,130)	(76)	(4,178)
Total	(11,824)	(1,278)	(76)	(13,178)
Other changes 31.12.2023
Exchange diff. in historical cost	(319)	15	(6)	(310)
Exchange diff. in accum. depreciation	200	(4)	3	199
Total	(119)	11	(3)	(111)
Historical cost	17,877	5,031	419	23,327
Accumulated depreciation	(8,696)	(2,909)	(276)	(11,881)
Net book value at 31.12.2023	9,181	2,122	143	11,446

Note 4. Investments in associates

Non-controlling investments held by the Group, details of which can be found in Annex 2, amounted to €753 thousand December 31, 2024 (€640 thousand at December 31, 2023).

Note 5. Financial assets and liabilities by category

The table below provides a breakdown of "Financial assets and liabilities" under IFRS 9.

Financial assets

	Financial assets at amortised cost	Financial assets at FV through profit and loss	Financial assets at FV through OCI	31.12.2024
Non-current financial assets	1,385	2,906	81	4,372
Non-current financial assets and investments	-	2,906	81	2,987
Other receivables	1,385	-	-	1,385
Current financial assets	173,395	-	-	173,395
Trade receivables	67,039	-	-	67,039
Other receivables	24,920	-	-	24,920
Cash and cash equivalents	81,436	-	-	81,436
Total	174,780	2,906	81	177,767

	Financial assets at amortised cost	Financial assets at FV through profit and loss	Financial assets at FV through OCI	31.12.2023
Non-current financial assets	2,839	2,624	99	5,562
Non-current financial assets and investments	2,055	2,624	99	4,778
Other receivables	784	-	-	784
Current financial assets	141,175	-	-	141,175
Trade receivables	52,093	-	-	52,093
Other receivables	18,453	-	-	18,453
Cash and cash equivalents	70,629	-	-	70,629
Total	144,014	2,624	99	146,737

"Cash and cash equivalents" amounted to €81,436 thousand. Details are found in the Net Financial Debt schedule in the Report on Operations.

Financial liabilities

	Derivatives	Financial liabilities at amortised cost	31.12.2024
Non-current financial liabilities	-	92,102	92,102
Financial payables	-	72,045	72,045
Other payables	-	20,057	20,057
Current financial liabilities	-	163,889	163,889
Trade payables	-	96,133	96,133
Other payables	-	48,849	48,849
Current financial payables	-	18,907	18,907
Total	-	255,991	255,991

	Derivatives	Financial liabilities at amortised cost	31.12.2023
Non-current financial liabilities	-	106,094	106,094
Financial payables	-	86,101	86,101
Other payables	-	19,993	19,993
Current financial liabilities	-	152,879	152,879
Trade payables	-	83,515	83,515
Other payables	-	49,515	49,515
Current financial payables	-	19,849	19,849
Total	-	258,973	258,973

The fair value of financial assets and financial liabilities is determined according to methods classifiable in the various levels of the fair value hierarchy as envisaged by IFRS 13. Specifically, the Group uses internal valuation models generally used in financial practice, based on prices provided by market participants or quotations recorded on active markets.

Fair value - hierarchy

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

Level 1: market prices;

Level 2: valuation techniques (based on observable market data);

Level 3: valuation techniques (not based on observable market data).

Assets measured at fair value	Level 1	Level 2	Level 3	31.12.2024
Non-current financial assets and investments	81	-	2,906	2,987
Total	81	-	2,906	2,987

Note 6. Financial assets and non-current financial receivables

Financial assets include the following:

	31.12.2024	31.12.2023	Change
Non-current financial assets	2,987	4,778	(1,791)
Total	2,987	4,778	(1,791)

Non-current financial assets amounted to €2,987 thousand. The main change refers to the write-down of an investment with uncertain recoverability.

The change in "Non-current financial assets" is detailed below:

	2024	2023
At January 1	4,778	8,119
Acquisitions (Disposals)	150	(2,591)
Write-downs	(1,992)	-
Gains (Losses) recognised in OCI	(17)	(683)
Gains/(Losses) recognised in the income statement	69	(34)
Exchange rate adjustments	-	(27)
At December 31	2,987	4,778

Note 7. Trade and other receivables

The breakdown of the item at December 31, 2024 and at December 31, 2023 is shown below:

	31.12.2024	31.12.2023	Change
Trade receivables	61,163	46,065	15,098
Contract assets - Invoices to be issued	5,472	6,145	(673)
Bad debt provisions	(1,065)	(1,471)	406
Net trade receivables	65,570	50,739	14,831
Receivables from parent	155	-	155
Receivables from associates	1,302	1,346	(44)
Receivables from related parties	12	8	4
Sub-total - Trade receivables	67,039	52,093	14,946
Other receivables - current accrued income and deferred expense	24,920	18,453	6,467
Other receivables - non-current accrued income and deferred expense	1,385	784	601
Sub-total - Other receivables - accrued income and deferred expense	26,305	19,237	7,068
Less: non-current portion	1,385	784	601
Trade and other receivables - current portion	91,959	70,546	21,413

Trade receivables

"Trade receivables" totalled €67,039 thousand, reflecting an increase of €14,946 thousand versus December 31, 2023. This amount is shown net of the estimated portion of credit notes to be issued for discounts to distributors, which stands at €12,058 thousand (€11,242 thousand at December 31, 2023). At December 31, 2024, trade receivables factored without recourse amounted to €30,408 thousand (versus €30,218 thousand at December 31, 2023). Trade receivables from related parties and associates arise from commercial transactions carried out at normal market conditions.

At December 31, 2024, the breakdown of the item by maturity, versus the prior year, was as follows:

	31.12.2024	31.12.2023
Not overdue	60,058	41,506
Past due by 30 days	4,739	8,220
Past due by 31 - 90 days	2,693	3,129
Past due by more than 90 days	614	709
Bad debt provisions	(1,065)	(1,471)
Total	67,039	52,093

The following table shows the breakdown of trade receivables by currency at December 31, 2024 and at December 31, 2023:

	31.12.2024	31.12.2023
US Dollar (USD)	36,638	24,292
€	20,723	18,944
Chinese Renminbi (CNY)	5,277	5,039
British Pound Sterling (GBP)	2,172	1,968
Japanese Yen (JPY)	1,101	1,083
Australian Dollar (AUD)	945	562
Vietnam Dong (VND)	179	115
Czech Crown (CZK)	-	85
Swedish Krona (SEK)	1	4
Hungarian Forint (HUF)	3	1
Total	67,039	52,093

Receivables from customers are entered net of bad debt provisions totalling €1,065 thousand (€1,471 thousand at December 31, 2023). Changes in bad debt provisions during the year were as follows:

	2024	2023	Change
At January 1	1,471	2,838	(1,367)
Exchange difference	(1)	(9)	8
Allocations	7	116	(109)
Change in consolidation scope	(20)	-	(20)
Releases	(169)	(1,389)	1,220
Utilisations	(223)	(85)	(138)
At December 31	1,065	1,471	(406)

Other receivables - accrued income and deferred expense

The details of "Other receivables - accrued income and deferred expense" are shown below.

	31.12.2024	31.12.2023	Change
Other current receivables	5,839	3,232	2,607
Other non-current receivables	1,385	784	601
VAT receivable	16,136	11,889	4,247
Accrued income and deferred expense	2,945	3,332	(387)
Total	26,305	19,237	7,068

The "VAT receivable" of €16,136 thousand refers to normal commercial transactions.

The "Accrued income and deferred expense" item is composed mainly of the recognition of insurance contracts and hardware and software licenses.

Note 8. Inventory

At December 31, 2024, inventory totalled €93,470 thousand, decreasing by €8,992 thousand during the year, including €1,940 thousand from the deconsolidation of Informatics.

	31.12.2024	31.12.2023	Change
Raw and ancillary materials and consumables	37,657	51,002	(13,345)
Work in progress and semi-finished products	24,498	18,690	5,808
Finished products and goods	31,315	32,770	(1,455)
Total	93,470	102,462	(8,992)

Inventory is shown net of an obsolescence provision totalling €14,708 thousand at December 31, 2024 (€15,482 thousand at December 31, 2023).

Changes in the obsolescence provision at December 31, 2024 and at December 31, 2023 are shown below:

	2024	2023
At January 1	15,482	12,387
Exchange differences	(47)	(97)
Allocations	2,029	4,810
Change in consolidation scope	(152)	-
Releases/Utilisations	(2,604)	(1,618)
At December 31	14,708	15,482

Note 9. Tax receivables and payables

	31.12.2024	31.12.2023	Change
Tax receivables	2,977	12,662	(9,685)
Tax payables		(9,388)	9,388
Total	2,977	3,274	(297)

At December 31, 2024, the net balance of "Tax Receivables and Payables" came to a positive €2,977 thousand versus a positive 3,274 thousand at December 31, 2023, marking a negative change of €297 thousand.

LIABILITIES AND EQUITY

Note 10. Equity

Equity at December 31, 2024 is broken down as follows.

	31.12.2024	31.12.2023	Change
Share capital	30,392	30,392	-
Share premium reserve	111,779	111,779	-
Treasury shares held in portfolio	(41,962)	(41,962)	-
Share capital and reserves	100,209	100,209	-
Translation reserve	40,069	27,482	12,587
Other reserves	929	913	16
Retained earnings	273,148	269,731	3,417
Profit for the year	13,626	9,859	3,767
Total Group equity	427,981	408,194	19,787
Profit (loss) for the year attributable to non-controlling interests	96	(373)	469
Share capital attributable to non-controlling interests	3,045	3,310	(265)
Total Equity attributable to non-controlling interests	3,141	2,937	204
Total consolidated equity	431,122	411,131	19,991

Share capital

At December 31, 2024, the share capital of €30,392 thousand represents the fully subscribed and paid-up share capital of the Parent Company Datalogic S.p.A.. It comprises ordinary shares for a total of 58,446,491, of which 4,800,000 held as treasury shares for a value of €41,962 thousand, therefore the outstanding shares at that date amounted to 53,646,491.

	Number of shares	Share capital	Share cancellation reserve	Treasury shares held in portfolio	Treasury share reserve	Share premium reserve	Total
01.01.2024	53,646,491	30,392	2,813	(41,962)	49,417	59,549	100,209
31.12.2024	53,646,491	30,392	2,813	(41,962)	49,417	59,549	100,209

Other Reserves

At December 31, 2024, there was no change in the "Reserve for treasury shares held in portfolio".

The "Translation reserve" shows an increase of € 12,587 thousand, as a result mainly of the performance of the USD, the functional currency of some of the Group's major investees.

At December 31, 2024, "Other reserves" amounted to €929 thousand (€913 thousand at December 31, 2023).

Note 11. Financial payables

"Financial payables" at December 31, 2024 amounted to €90,952 thousand, down by €14,998 thousand as detailed below.

	31.12.2024	31.12.2023	Change
Bank loans	78,653	92,762	(14,109)
Financial payables from leases	11,070	11,630	(560)
Payables to factoring companies	587	592	(5)
Other financial payables	605	817	(212)
Bank overdrafts	37	149	(112)
Total	90,952	105,950	(14,998)

The change in "Bank loans" for the year is attributable mainly to repayment of bank loans of €14,035 thousand.

The breakdown of financial payables, divided into current and non-current portions, is shown below:

	31.12.2024	31.12.2023	Change
Non-current financial payables	72,045	86,101	(14,056)
Current financial payables	18,907	19,849	(942)
Total	90,952	105,950	(14,998)

At December 31, 2024, the Group had outstanding credit lines of approximately €268 million, of which approximately €189.0 million undrawn.

Covenants

Certain loan agreements require the Group to comply with financial covenants, measured on a half-year basis at June 30 and December 31, summarised in the following table:

Loan	Company	Covenants	Frequency	Reference financial statements
RCF	Datalogic S.p.A.	NFP/EBITDA 4.5x; 4.0x *	half-year	Consolidated
Roller Coaster	Datalogic S.p.A.	NFP/EBITDA 3.0x	half-year	Consolidated

* 4.5x at June and 4.0x at December

At December 31, 2024, all covenants were complied with.

Note 12. Net deferred tax

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

Deferred tax assets are accounted for in accordance with the assumptions of future recoverability of the temporary differences they originated from, i.e., on the basis of strategic economic and tax plans.

Temporary differences generating deferred tax assets consist mainly of tax losses and tax paid abroad, provisions for risks and charges, and foreign exchange adjustments. Deferred tax liabilities are attributable mainly to temporary

differences in exchange rate adjustments and statutory and tax differences in the amortisation/depreciation schedules of tangible and intangible fixed assets and fair value measurements of assets as part of business combinations carried out by the Group.

	31.12.2024	31.12.2023	Change
Deferred tax assets	62,300	57,319	4,981
Deferred tax liabilities	(25,166)	(26,334)	1,168
Net deferred tax	37,134	30,985	6,149

Deferred tax assets amounted to €62,300 thousand and included foreign tax receivables attributable mainly to the subsidiary Datalogic USA Inc., deemed recoverable in light of the subsidiary's expected earnings prospects in the coming years.

The Provision for deferred tax liabilities at December 31, 2024 amounted to €25,166 thousand and refers mainly to temporary differences related to asset depreciation/amortisation schedules, as well as tax adjustments resulting from the consolidation processes of recent acquisitions made by the Group.

The main items composing deferred tax assets and deferred tax liabilities and changes during the year are shown below:

Deferred tax assets	31.12.2023	Allocated (released) to Income Stat.	Allocated (released) to Equity	Exchange differences	Change in consolidation scope	31.12.2024
Receivables, foreign tax	18,093	(7,592)	-	403	-	10,904
Exchange differences	1,292	(1,134)	-	18	-	176
Differences Depreciation/Amortisation	7,653	9,689	-	75	-	17,417
Asset write-downs	1,549	84	-	31	-	1,663
Non-deduct. Temp. differences	16,415	(389)	(9)	829	(725)	16,121
Tax losses	8,073	5,307	-	23	-	13,403
Other	245	(16)	19	39	-	288
Adjustments	3,998	(1,671)	-	-	-	2,327
Total	57,318	4,279	10	1,417	(725)	62,300

Deferred tax liabilities	31.12.2023	Allocated (released) to Income Stat.	Exchange differences	Change in consolidation scope	31.12.2024
Prior losses	16				16
Exchange differences	1,541	(1,541)			-
Differences Depreciation/Amortisation	14,335	820	843	(68)	15,930
IAS Reserves	315				315
Non-deduct. temp. differences	1,159			(184)	975
Other	1,055	1			1,056
Adjustments	7,909	(688)		(351)	6,870
Total	26,334	(1,408)	843	(603)	25,166

Note 13. Provisions for post-employment and retirement benefits

The breakdown of changes in "Provisions for post-employment and retirement benefits" at December 31, 2024 and at December 31, 2023 is shown below:

	2024	2023
At January 1	5,759	6,163
Amount allocated in the year	2,242	2,239
Utilisations	(1,844)	(1,958)
Discounting	37	-
Receivable from INPS	(657)	(675)
Other movements	45	-
Exchange rate adjustments	16	(10)
At December 31	5,598	5,759

Note 14. Provisions for risks and charges

"Provisions for risks and charges" at December 31, 2024, amounted to €8,676 thousand (€7,918 thousand at December 31, 2023), represented by the best estimate of the contingent liabilities to which the Group is exposed in relation to contractual obligations for product guarantees and long-term incentive and retention plans for personnel (middle management and key people), as well as contingent liabilities of a tax, labour law and supplementary agents' indemnity nature, as shown below.

	31.12.2023	Increases	(Utilisations) (Releases)	Change in consolidati on scope	Foreign exchange differences	31.12.2024
Product warranty provision	5,845	-	(1,007)	(14)	-	4,824
Provision for staff incentive and retention plans	1,510	1,655	(4)	-	84	3,245
Other provisions	563	100	(56)	-	-	607
Total	7,918	1,755	(1,067)	(14)	84	8,676

The "Product warranty provision" covers the estimated cost of repairing products sold up to December 31, 2024 and covered by a warranty period; said provision amounted to €4,824 thousand (of which €2,725 thousand long-term).

"Provision for staff incentive and retention plans" refers to the estimated bonuses to be paid to staff based on longterm incentive and retention plans accrued at December 31, 2024.

"Other provisions" at December 31, 2024 amounted to €607 thousand and consisted mainly of provisions for supplementary agent's indemnity and for contingent liabilities of a fiscal and labour law nature.

The breakdown of provisions for risks, divided into current and non-current portions, is shown below:

	31.12.2024	31.12.2023	Change
Provisions for risks and charges, current portion	5,605	2,721	2,884
Provisions for risks and charges, non-current portion	3,071	5,197	(2,126)
Total	8,676	7,918	758

Note 15. Trade and other payables, accrued expense and deferred income

	31.12.2024	31.12.2023	Change
Trade payables	92,757	78,859	13,898
Contractual liabilities - customer advances	3,089	4,543	(1,510)
Trade payables	95,846	83,402	12,444
Payables to parent	155	-	155
Payables to associates	96	92	4
Payables to related parties	36	21	15
Total trade payables	96,133	83,515	12,618
Other current payables	31,515	28,310	3,205
Current accrued expense and deferred income	17,334	21,204	(3,870)
Non-current accrued expense and deferred income	20,057	19,993	64
Total Other payables - accrued expense and deferred income	68,906	69,507	(601)
Less: non-current portion	20,057	19,993	64
Current portion	144,982	133,029	11,953

Trade payables

"Trade payables" amounted to €96,133 thousand, increasing by €12,618 thousand versus the end of the prior year.

Other current payables

	31.12.2024	31.12.2023	Change
Payables to employees	19,545	18,418	1,127
Payables to welfare and social security entities	7,668	6,834	834
Other payables	2,603	2,070	533
VAT payables	1,699	988	711
Total	31,515	28,310	3,205

"Other current payables" amounting to €31,515 thousand at December 31, 2024 consists mainly of "Payables to employees" for the fixed and variable components of salaries and holiday entitlements, as well as the related "Payables to welfare and social security entities".

Accrued expense and deferred income

"Accrued expense and deferred income", amounting to €37,391 thousand at December 31, 2024 (€41,197 thousand at December 31, 2023), is composed mainly of deferred revenue related to the Ease of Care long-term maintenance contracts. The difference from the prior year is attributable mainly to the deconsolidation of Informatics.

INFORMATION ON THE INCOME STATEMENT

Note 16. Revenue

Revenue classified by type is shown in the following table:

	31.12.2024	31.12.2023	Change
		Restated
Revenue from sale of products	455,182	479,912	(24,730)
Revenue from services	38,585	38,781	(196)
Total revenue	493,767	518,693	(24,926)

At December 31, 2024, consolidated net revenue amounted to €493,767 thousand, down by 4.8% versus €518,693 thousand in 2023. The Group's revenue, classified by recognition method, is broken down as follows:

Revenue broken down by recognition method	31.12.2024	31.12.2023	Change
		Restated
Revenue from sale of goods and services - point in time	418,461	443,783	(25,322)
Revenue from sale of goods and services - over time	75,306	74,910	396
Total	493,767	518,693	(24,926)

The Group recognises revenue for the sale of goods and services at a specific point in time when control of the assets has been transferred to the customer, usually at the same time as the delivery of the good or provision of the service. Instead, revenue recognition takes place over time, based on the status of performance of contractual obligations, when the performance does not create an asset that has an alternative use for the Group and the Group has the collectible right to payment for the completed performance up to the date considered.

Note 17. Cost of goods sold and operating costs

The following table shows the trends of cost of goods sold and operating costs at December 31, 2024, versus the same period of the prior year, before special items.

	31.12.2024	31.12.2023	Change
		Restated
Cost of goods sold	286,093	308,019	(21,926)
Operating costs	210,521	208,967	1,554
Research and development expense	69,430	65,420	4,010
Distribution expense	88,167	89,210	(1,043)
Administrative and general expense	50,874	52,012	(1,138)
Other operating expense	2,050	2,325	(275)
Total	496,614	516,986	(20,372)

Cost of goods sold

Cost of goods sold at December 31, 2024 was €286,093 thousand. The change versus the prior period is -7.1%, while the percentage of sales improved by 1.4% to 57.9% from 59.4% in the prior year.

Operating costs

"Operating costs", amounting to €210,521 thousand, increased slightly by 0.7%. As a percentage of sales, the item increased by approximately 2.3 percentage points, from 40.3% to 42.6%.

"Research and development expense" at December 31, 2024 amounted to €69,430 thousand, up by 6.1% versus the prior year, representing 14.1% of sales (12.6% in the prior year). The detail items showing the largest percentage increase in relation to sales refer to personnel expense and amortisation.

"Distribution expense" amounted to €88,167 thousand, down versus the comparison period (-1.2%). The percentage of sales increased from 17.2% to 17.9%.

"Administrative and general expense" amounted to €50,874 thousand, down by 2.2% versus 2023, while the percentage of sales increased slightly from 10.0% to 10.3%.

"Other operating expense", amounting to €2,050 thousand, was down by 11.8% versus the prior year.

Costs by nature

The following table provides the details of total costs (cost of goods sold and total operating costs) by nature:

	31.12.2024	31.12.2023	Change
		Restated
Purchases and change in inventory	197,115	221,276	(24,161)
Personnel expense	173,828	171,507	2,321
Amortisation, depreciation and write-downs	38,330	37,076	1,254
Goods receipt and shipment expense	21,606	18,772	2,834
Travel and meetings expense	8,203	9,651	(1,448)
EDP expense	8,001	7,666	335
R&D technical consultancies	6,056	5,509	547
Consumables and R&D material	5,994	7,825	(1,831)
Legal, tax and other consulting	5,126	4,497	629
Building expense	3,504	2,694	810
Marketing expense	2,941	3,403	(462)
Utilities	2,862	3,216	(354)
Royalties	2,588	2,391	197
Directors' fees	2,103	1,512	591
Telephone expense	1,862	1,824	38
Expense for plant and machinery and other assets	1,571	1,772	(201)
Quality certification expense	1,459	1,620	(161)
Vehicle expense	1,446	1,452	(6)
Fees	1,426	1,844	(418)
Non-warranty repairs	1,167	943	224
Sundry service costs	1,167	1,671	(504)
Installations	1,087	1,083	4
Insurance	896	1,238	(342)
Audit fees	870	914	(44)
Repairs and warranty provision accrual	869	878	(9)
Entertainment expense	754	903	(149)
Subcontracted work	620	640	(20)
Recruitment fees	491	984	(493)
Other	2,672	2,225	447
Total cost of goods sold and operating costs	496,614	516,986	(20,372)

The detailed breakdown of personnel expense is as follows:

	31.12.2024	31.12.2023
		Restated
Wages and salaries	130,352	129,789	563
Social security charges	28,699	27,583	1,116
Post-employment benefits	2,343	2,338	5
Retirement benefits and the like	2,006	1,989	17
Other personnel costs	10,428	9,808	620
Total	173,828	171,507	2,321

At December 31, 2024, "Other revenue" amounted to €5,742 thousand, increasing by 24.5% versus €4,613 thousand in 2023. Other revenue is broken down as follows:

	31.12.2024	31.12.2023	Change
		Restated
Grants to Research and Development expense	3,775	2,358	1,417
Miscellaneous income and revenue	872	1,303	(431)
Rents	200	145	55
Gains from disposal of fixed assets	754	196	558
Contingent assets	94	111	(17)
Other	47	500	(453)
Total	5,742	4,613	1,129

Note 19. Financials

Details of net financials are shown in the table below.

	31.12.2024	31.12.2023	Change
		Restated
Financial income/(expense)	(797)	(1,801)	1,004
Foreign exchange differences	(2,967)	511	(3,478)
Bank expense	(1,552)	(1,609)	57
Other	18,139	4,637	13,502
Total net financials	12,823	1,738	11,085

The change from the comparison year is due mainly to the item "Other", as it includes the income from the sale of Informatics Holdings, Inc.

Note 20. Tax

The Group's tax burden at December 31, 2024 is €777 thousand as shown below.

	31.12.2024	31.12.2023	Change
		Restated
Pre-tax profit/(loss)	15,718	8,058	7,660
Tax income (expense) - for current tax	(4,496)	(4,270)	(226)
Tax income (expense) - for deferred and prepaid tax	3,719	3,201	519
Total Tax	(777)	(1,070)	293
Tax rate	-4.9%	-13.2%	8.3%

The tax rate reflects the distribution of profit for the year among the Group's various geographical areas of operation.

The following table shows the reconciliation between the nominal rate in force for the consolidating company, and the effective rate:

	2024		2023
Profit before tax	15,718		8,058
Nominal tax rate	(3,772)	-24.0%	(1,934)	-24.0%
Effects of local tax	(830)	-5.3%	(651)	-8.1%
Effect of disposal of investment	4,010	25.5%	-	0.0%
Cumulative effect of different tax rates applied in foreign countries	609	3.9%	630	7.8%
Tax effects - prior years	(453)	-2.9%	(965)	-12.0%
Other effects	(339)	-2.2%	1,850	23.0%
Consolidated effective tax rate	(777)	-4.9%	(1,070)	-13.2%

The effective tax rate (ETR) at December 31, 2024, stands at 4.9%, reflecting the lower ordinary taxable income of the Group versus the prior year, despite a higher pre-tax profit of €7,660 thousand. The total taxable amount is impacted by the proceeds from the sale of the subsidiary Informatics, which generated a tax benefit of €4,010 thousand. "Other effects", negative by €339 thousand (a decrease of €2,189 thousand), includes movements related to temporary tax differences and the effects of the consolidation process.

Note 21. Profit (Loss) from discontinued operations

As explained earlier, in first quarter 2024, the Group sold its investment in Informatics Holdings Inc.; therefore, in this Annual Financial Report, the income situation of Informatics Holdings Inc. up to the date of sale has been classified in the result of discontinued operations.

The business of Informatics Holdings Inc., which specialises in the marketing and distribution of products and solutions for the management of inventory and mobile assets tailored to small and medium-sized companies, was an operating segment until the date of the sale.

The following summarizes the financial results of Informatics Holdings Inc. for 2024 up to the effective date of the above transaction compared with those for 2023:

INCOME STATEMENT	06.03.2024	31.12.2023
Revenue	2,944	16,977
Cost of goods sold	(766)	(4,910)
Gross Operating Margin	2,178	12,067
Research and development expense	(479)	(2,015)
Distribution expense	(1,101)	(5,101)
Administrative and general expense	(1,849)	(1,597)
Other (expense) income	256	(57)
Total operating costs	(3,173)	(8,770)
EBIT	(995)	3,297
Financials	33	75
Pre-tax profit/(loss)	(962)	3,372
Income tax	(257)	(874)
Profit/(Loss)	(1,219)	2,498

In accordance with the provisions of paragraph 33 of IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations", net cash flows attributable to the operating, investing, and financing activities of discontinued operations may be presented alternately in the reporting formats or in the notes to the financial statements. The Group has chosen the option of presenting total cash flows in the Consolidated Statement of Cash Flows.

Additional information on cash flows from assets held for sale is shown below:

STATEMENT OF CASH FLOWS	31.12.2024	31.12.2023
Cash flow from operations	301	3,325
Cash flow from investing activities	5,971	(519)
Cash flow from financing activities	(13,776)	(267)
Total	(7,504)	2,539

In 2024, cash receipts from investing activities were due primarily to the sale of the property formerly used by the company at Datalogic USA Inc.

Note 22. Earnings/loss per share

As required by IAS 33, information on data used to calculate the net earning/loss per share and from continuing operations is provided below. Basic EPS is calculated by dividing the result for the year, profit and/or loss, attributable to the Shareholders of the Parent Company by the weighted average number of shares outstanding during the reporting period. For the purpose of calculating diluted EPS, the weighted average number of shares outstanding is adjusted by assuming the conversion of all potential shares with dilutive effects (such as the share-based incentive plan), while the Group's net result is adjusted for the after-tax effects of conversion.

Earnings/loss per share from continuing operations

	31.12.2024	31.12.2023
		Restated
Profit/(Loss) for the year from continuing operations		7,361
attributable to the Shareholders of the Parent Company	14,845
Average number of shares (thousands)	53,646	55,789
Basic earnings/(loss) per share from continuing operations	0.28	0.13
Profit/(Loss) for the year from continuing operations
attributable to the Shareholders of the Parent Company	14,845	7,361
Average number of shares (thousands) - Diluted effect	53,646	55,789
Diluted earnings/(loss) per share from continuing operations	0.28	0.13

Earnings/loss per share

	31.12.2024	31.12.2023
		Restated
Profit/(Loss) for the year attributable to the shareholders of the parent	13,626	9,859
Average number of shares (thousands)	53,646	55,789
Basic earnings/(loss) per share	0.25	0.18
Profit/(Loss) for the year attributable to the shareholders of the parent	13,626	9,859
Average number of shares (thousands) - Diluted effect	53,646	55,789
Diluted earnings/(loss) per share	0.25	0.18

Note 23. Audit fees

In accordance with the provisions of Article 149-duodecies of the Issuer Regulation, implementing Legislative Decree no. 58 of February 24, 1998, the following is a table with the fees for 2024 paid to the Independent Auditors.

	2024	2023
Fees for services provided by the Independent Auditors to the Parent Company and to the subsidiaries
Datalogic S.p.A. - auditing	243	211
Italian subsidiaries - auditing	243	273
Foreign subsidiaries - auditing	256	248
Total auditing*	742	732
Non-auditing services**	74	49
Total	816	781

* Fees relating to foreign subsidiaries include €52 thousand for auditing services provided by independent auditors outside the network of the Independent Auditors of the Parent Company (Deloitte & Touche S.p.A.).

**Non-audit services refer to the certification of expense incurred in R&D activities of Italian subsidiaries and GAP Analysis activities performed in regard to the CSRD assignment

Note 24. Fees paid to directors

Reference for this information is made to the remuneration report that will be published pursuant to Article 123-ter of the T.U.F. and made available on the Company website.

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

For the definition of "Related Parties", reference is made not only to IAS 24, approved by EC Regulation no. 1725/2003, but also to the Procedure for Related-Party Transactions approved by the Board of Directors on November 4, 2010 (last amended on June 23, 2021) available on the Company website www.datalogic.com. The parent company of Datalogic Group is Hydra S.p.A..

Intercompany transactions are carried out as part of the ordinary operations and at normal market conditions. Additionally, there are related-party transactions carried out again in the ordinary course of business and at normal market conditions, of an immaterial amount pursuant to and in accordance with the "RPT Procedure", attributable mainly to Hydra S.p.A. or to entities subject (with Datalogic S.p.A.) to common control or to persons exercising administrative and management functions at Datalogic S.p.A. (including entities controlled by them and close family members).

Related-party transactions refer mainly to commercial and property transactions (instrumental and non-instrumental premises for the Group leased or rented out), consulting services, and participation in tax consolidation. None of them are of particular economic or strategic importance to the Group, since receivables, payables, revenue, and expense from related parties do not have a material percentage impact on the total amounts of the financial statements.

Pursuant to Article 5, paragraph 8, of the CONSOB Regulations, it should be noted that, over the period 01.01.2024 – 31.12.2024, the Company's Board of Directors did not approve any transaction of greater significance, as set out by Article 3, paragraph 1, letter b) of the CONSOB Regulations, or any related-party transactions of a lesser significance that had a significant impact on the Group's equity position or results.

Consolidated Annual Financial Report at December 31, 2024

	Parent Company	Company controlled by Chairman of B.o.D.	Companies not consolidated on a line-by-line basis	31.12.2024
Investments	-	-	753	753
Trade receivables - other receivables accrued income and deferred expense	155	12	1,302	1,468
Trade payables - other payables accrued expense and deferred income	155	36	126	317
Commercial and service costs	-	1,289	212	1,501
Trade revenue	-	-	7,342	7,342
Other revenue	-	12	7	19

The Chairman of the Board of Directors (Romano Volta)

Consolidated Annual Financial Report at December 31, 2024

DATALOGIC GROUP 139

Annexes

ANNEX 1

Certification of the Consolidated Financial Statements pursuant to Article 81-ter of CONSOB Regulation no. 11971 of May 14, 1999 as subsequently amended and supplemented

1. The undersigned Valentina Volta, as CEO, and Alessandro D'Aniello, as Manager responsible for the preparation of the financial reports of Datalogic S.p.A., certify, also taking account of the provisions of Article 154-bis, paragraphs 3 and 4, of Legislative Decree no. 58 of February 24, 1998:

2. the adequacy of the characteristics of the Company and

3. the actual application

of the administrative and accounting procedures in preparing the 2024 Consolidated Financial Statements.

1. The assessment of the adequacy of the administrative and accounting procedures for the preparation of the consolidated financial statements at December 31, 2024 was based on a specific process defined by Datalogic S.p.A. consistent with the Internal Control – Integrated Framework model issued by the Committee of Sponsoring Organizations of the Treadway Commission, which groups together a set of general principles of reference generally accepted at the international level.

2. Moreover, the following is certified:

3.1 the Consolidated Financial Statements:

• a) were prepared in accordance with the International Financial Reporting Standards endorsed by the European Union pursuant to EC Regulation no. 1606/2002 of the European Parliament and Council of 19 July 2002;
• b) are consistent with the accounting records and books;
• c) provide a true and fair view of the financial position, the results of operations and the cash flows of the Issuer and of the companies included in the consolidation scope;

3.2 the Report on Operations contains a reliable analysis on performance and the results of operations, as well as on the position of the Issuer and on the companies included in the consolidation scope, together with a description of the main risks and uncertainties they are exposed to.

Lippo di Calderara di Reno (BO), March 20, 2025

Chief Executive Officer Manager responsible for the preparation of the Company's financial reports

Valentina Volta Alessandro D'Aniello

ANNEX 1-BIS

Certification of sustainability reporting pursuant to Article 81-ter, paragraph 1, of CONSOB Regulation No. 11971 of 14 May 1999, as amended and supplemented

1. The undersigned Valentina Volta, as CEO, and Alessandro D'Aniello, as Manager responsible for the preparation of the financial reports of Datalogic S.p.A., certify, pursuant to Article 154-bis, paragraph 5-ter, of Legislative Decree No. 58 of February 24, 1998, that the sustainability reporting included in the Report on Operations was prepared:

2. a) in accordance with the reporting standards applied under Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013, and Legislative Decree No. 125 of 6 September 2024;

3. b) with the specifications adopted under Article 8, paragraph 4 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020.

Lippo di Calderara di Reno (BO), March 20, 2025

Chief Executive Officer Manager responsible for the preparation of the Company's financial reports

Valentina Volta Alessandro D'Aniello

ANNEX 2

CONSOLIDATION SCOPE

The Consolidated Annual Financial Report includes the annual statements of the Parent Company and of the companies in which it directly and/or indirectly has control or significant influence. The statements of the subsidiaries were duly adjusted, where necessary, to make them consistent with the Parent Company's Accounting Standards. The companies included in the consolidation scope at December 31, 2024, consolidated on a line-by-line basis, are shown hereunder:

Company name	Registered office	Share capital				Total equity (Euro/thousands)	Profit (loss) for the year (Euro/thousands)	% Ownership
Datalogic S.p.A.	Bologna – Italy	€	30,392,175	372,024	37,859
Datalogic Real Estate France Sas	Courtabeuf Cedex – France	€	2,227,500	4,228	161	100%
Datalogic Real Estate UK Ltd.	Redbourn - United Kingdom of Great Britain	GBP	3,500,000	5,028	64	100%
Datalogic IP Tech S.r.l.	Bologna – Italy	€	100,000	19,793	(13,842)	100%
Datalogic (Shenzhen) Industrial Automation Co. Ltd.	Shenzhen - China	CNY	2,136,696	6,737	227	100%
Datalogic Hungary Kft	Balatonboglar - Hungary	HUF	3,000,000	(4,024)	(5,969)	100%
Datalogic S.r.l.	Bologna – Italy	€	10,000,000	123,124	(3,242)	100%
Datalogic Slovakia S.r.o.	Trnava - Slovakia	€	66,388	5,175	(1,376)	100%
Datalogic USA Inc.	Eugene OR - Usa	USD	100	316,930	37,768	100%
Datalogic do Brazil Ltda.	Sao Paulo - Brazil	BRL	20,257,000	826	82	100%
Datalogic Technologia de Mexico S. de R. L. de C.V.	Colonia Cuauhtemoc - Mexico	MXN	0	(441)	(41)	100%
Datalogic Scanning Eastern Europe GmbH	Langen - Germany	€	25,000	3,337	(253)	100%
Datalogic Australia Pty Ltd.	Mount Waverley (Melbourne) - Australia	AUD	3,188,120	1,626	144	100%
Datalogic Vietnam LLC	Vietnam	USD	3,000,000	34,856	2,985	100%
Datalogic Singapore Asia Pacific Pte Ltd.	Singapore	SGD	3	4,478	113	100%
Datasensing S.r.l.	Modena - Italy	€	2,500,000	14,486	(3,750)	100%
Datasensing Electronic Components (Tianjin) Ltd.	Tianjin - China	CNY	13,049,982	1,526	113	100%
Datasensing Ibérica, S.A.U.	Barcelona - Spain	€	120,000	1,699	164	100%
Datalogic Japan Co., Ltd.	Tokyo - Japan	JPY	9,913,000	204	56	100%
Suzhou Mobydata Smart System Co. Ltd.	Suzhou, JiangSu - China	CNY	161,224	6,304	197	51%

Companies consolidated by the equity method at December 31, 2024 are as follows:

Company name	Registered office	Share capital				Total equity (Euro/thousands)	Profit (loss) for the year (Euro/thousands)	% Ownership
Datasensor Gmbh (*)	Otterfing - Germany	€	150,000	1	(3)	30%
CAEN RFID S.r.l. (***)	Viareggio LU - Italy	€	310,000	960	19	20%
R4I S.r.l. (***)	Benevento - Italy	€	131,250	254	15	20%
DL Industrial Automation AB (**)	Malmö, Sweden	SEK	100,000	2,391	875	20%

(*) figures at December 31, 2022

(**) figures at June 30, 2024

(***) figures at December 31, 2023

ANNEX 3

RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES (NON-GAAP MEASURES)

Below is a reconciliation of EBIT and adjusted EBIT at December 31, 2024 versus December 31, 2023.

	31.12.2024		31.12.2023 Restated
Adjusted EBIT	10,895	2.2%	13,589	2.6%
Special Items - Other Expense and (Income)	(3,291)	-0.7%	(2,535)	-0.5%
Special Items - D&A from acquisitions	(4,709)	-1.0%	(4,734)	-0.9%
Total	(8,000)	-1.6%	(7,269)	-1.4%
EBIT	2,895	0.6%	6,320	1.2%

Below is a reconciliation of EBITDA and adjusted EBITDA at December 31, 2024 versus December 31, 2023.

	31.12.2024		31.12.2023 Restated
Adjusted EBITDA	44,516	9.0%	45,929	8.9%
Cost of goods sold	(129)	0.0%	(128)	0.0%
Research and Development expense	(717)	-0.1%	(231)	0.0%
Distribution expense	(938)	-0.2%	(414)	-0.1%
Administrative and General expense	(1,507)	-0.3%	(1,762)	-0.3%
Other (expense) income	-	0.0%	-	0.0%
Total	(3,291)	-0.7%	(2,535)	-0.5%
EBITDA	41,225	8.3%	43,394	8.4%

ANNEX 4

RESTATEMENT 2023

Comparative results at December 31, 2024, have been restated following reclassifications of certain items to ensure full comparability of 2023 results with 2024 results.

Restatement of Income Statement

(Euro/000)	31.12.2023	Restatement	31.12.2023
			Restated
1) Revenue	520,206	(1,513)	518,693
Revenue from sale of products	481,425	(1,513)	479,912
Revenue from services	38,781		38,781
2) Cost of goods sold	308,019	-	308,019
Gross Operating Margin (1-2)	212,187	(1,513)	210,674
3) Other revenue	4,613		4,613
4) Research and development expense	65,420		65,420
5) Distribution expense	90,723	(1,513)	89,210
6) Administrative and general expense	52,012		52,012
7) Other operating expense	2,325		2,325
Total operating costs	210,480	(1,513)	208,967
EBIT	6,320	-	6,320
8) Financial income	24,290		24,290
9) Financial expense	22,552		22,552
Financials (8-9)	1,738		1,738
Profit/(Loss) before tax from continuing operations	8,058	-	8,058
Income tax	1,070		1,070
Net Profit/(Loss) from continuing operations	6,988	-	6,988
Net Profit/(Loss) from discontinued operations	2,498	-	2,498
Net Profit/(Loss) for the year	9,486	-	9,486
Basic earnings/(loss) per share (€)	0.18		0.18
Diluted earnings/(loss) per share (€)	0.18		0.18
Attributable to:
Shareholders of the Parent	9,859		9,859
Non-controlling interests	(373)		(373)

Consolidated Annual Financial Report at December 31, 2024

DATALOGIC GROUP 146

Statutory Annual Financial Report at December 31, 2024

Statutory Annual Financial Report at December 31, 2024

DATALOGIC S.p.A. 1

COMPOSITION OF CORPORATE BODIES 3

FINANCIAL STATEMENTS 4

Statement of Financial Position

Income Statement

Statement of Comprehensive Income

Statement of Cash Flows

Changes in Equity

EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 11

Information on the Statement of Financial Position

Information on the Income Statement

ANNEXES

Certification by the Manager responsible for the preparation of the Company's financial reports

List of Investments

COMPOSITION OF CORPORATE BODIES

Board of Directors (1)

Romano Volta Executive Chairman (2) Valentina Volta Chief Executive Officer (2) Angelo Manaresi Independent Director Chiara Giovannucci Orlandi Independent Director Filippo Maria Volta Non-Executive Director Vera Negri Zamagni Independent Director Valentina Beatrice Manfredi Independent Director

Board of Statutory Auditors (3)

Diana Rizzo Chair Elena Lancellotti Standing Auditor Roberto Santagostino Standing Auditor

Giulia De Martino Alternate Auditor Eugenio Burani Alternate Auditor

Patrizia Cornale Alternate Auditor

Control, Risks, Remuneration, Appointments and Sustainability Committee

Angelo Manaresi Chairman Chiara Giovannucci Orlandi Independent Director Vera Negri Zamagni Independent Director

Independent Auditors (4)

Deloitte & Touche S.p.A.

(1) The Board of Directors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2026.

(2) Legal representative before third parties.

• (3) The Board of Statutory Auditors will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2024.
• (4) Deloitte & Touche S.p.A. were appointed Independent Auditors for the nine-year period from 2019 to 2027 by the Shareholders' Meeting held on April 30, 2019 and will remain in office until the Shareholders' Meeting called to approve the financial statements at December 31, 2027.

Statutory Annual Financial Report at December 31, 2024

Parent Company Financial Statements

DATALOGIC S.p.A. 4

STATEMENT OF FINANCIAL POSITION

ASSETS (Euro/000)	Notes	31.12.2024	31.12.2023
A) Non-current assets (1+2+3+4+5+6+7)		206,963	221,520
1) Tangible fixed assets	1	18,695	19,046
Land		2,466	2,466
Buildings		14,360	14,598
Other assets		1,869	1,982
2) Intangible fixed assets	2	5,252	6,598
Software		5,165	6,457
Fixed assets under construction and advances		87	141
3) Right of use fixed assets	3	1,436	1,304
Buildings		1,224	1,143
Vehicles		212	161
4) Investments in subsidiaries and associates	4	178,245	189,256
5) Non-current financial assets	6	1,982	3,773
6) Trade and other receivables		59	209
7) Deferred tax assets	12	1,294	1,334
B) Current assets (8+9+10+11)		388,784	315,740
8) Trade and other receivables		22,348	19,967
Trade receivables	7	17,800	17,131
of which Parent Company		155	-
of which subsidiaries		17,571	17,101
of which related parties		1	-
Other receivables, accrued income and deferred expense	7	4,548	2,836
9) Tax receivables	8	2,224	2,209
of which subsidiaries		262	655
10) Current financial receivables	9	309,726	253,126
Loans to subsidiaries		309,726	253,126
11) Cash and cash equivalents		54,486	40,437
Total Assets (A+B)		595,747	537,260

STATEMENT OF FINANCIAL POSITION

LIABILITIES (Euro/000)	Notes	31.12.2024	31.12.2023
A) Equity (1+2+3+4+5+6)	10	372,024	340,492
1) Share capital		30,392	30,392
2) Share premium reserve		111,779	111,779
3) Treasury shares held in portfolio		(41,962)	(41,962)
4) Other reserves		(148)	(259)
5) Retained earnings (losses carried forward)		234,104	223,455
6) Profit (loss) for the year		37,859	17,087
B) Non-current liabilities (7+8+9+10)		67,795	82,545
7) Non-current financial payables	11	65,827	79,319
8) Deferred tax liabilities	12	1,445	2,280
9) Provisions for post-employment and retirement benefits	13	523	788
10) Provisions for non-current risks and charges	14	-	158
C) Current liabilities (11+12+13+14)		155,927	114,222
11) Trade and other payables		14,872	16,370
Trade payables	15	7,516	5,855
of which Parent Company		155	-
of which subsidiaries		3,100	2,449
of which related parties		4	2
Other payables, accrued expense and deferred income	15	7,356	10,515
of which subsidiaries		2,500	6,069
12) Tax payables	8	11,505	8,455
of which subsidiaries		10,174	6,837
13) Provisions for current risks and charges	14	269	-
14) Current financial payables	11	129,281	89,397
of which subsidiaries		115,040	74,726
Total Liabilities (A+B+C)		595,747	537,260

INCOME STATEMENT

(Euro/000)	Notes	31.12.2024	31.12.2023
1) Revenue from services	17	32,137	32,492
2) Cost of goods sold	18	978	1,703
Gross Operating Margin (1-2)		31,159	30,789
3) Other revenue	19	815	901
of which subsidiaries		643	640
4) Research and development expense	18	918	830
of which subsidiaries		-	-
5) Distribution expense	18	2,026	2,145
of which subsidiaries		-	60
6) Administrative and general expense	18	28,762	26,458
of which Parent Company		-	-
of which related parties		62	58
of which subsidiaries		(197)	(105)
7) Other operating expense	18	771	472
of which related parties		-	-
of which subsidiaries		(505)	(868)
Total operating costs (4+5+6+7)		32,477	29,905
EBIT		(502)	1,785
8) Financial income	20	62,995	30,387
of which subsidiaries		24,448	26,091
9) Financial expense	20	21,147	11,392
of which subsidiaries		10,353	7,254
Financials (8-9)		41,848	18,995
Profit/(Loss) before tax from continuing operations		41,346	20,780
Income tax	21	3,487	3,693
Net Profit/(Loss) for the year		37,859	17,087

STATEMENT OF COMPREHENSIVE INCOME

(Euro/000)	Notes	31.12.2024	31.12.2023
Net Profit/(Loss) for the year		37,859	17,087
Other items of the statement of comprehensive income:
Other items of the statement of comprehensive income that will later be
reclassified to Profit/(Loss) for the year:		0	0
Profit/(Loss) on cash flow hedges (CFH)	10	61	74
Total other items of the statement of comprehensive income that will later be		61	74
reclassified to Profit/(Loss) for the year
Other items of the statement of comprehensive income that will not be later
reclassified to Profit/(Loss) for the year
Actuarial gains (losses) on defined-benefit plans	10	67	0
of which tax effect		(25)	0
Profit/(Loss) from financial assets at FVOCI	10	(17)	(675)
of which tax effect		0	8
Total other items of the statement of comprehensive income that will not be		50	(675)
later reclassified to Profit/(Loss) for the year
Total profit/(loss) of the statement of comprehensive income		111	(601)
Total comprehensive profit/(loss) for the year		37,970	16,486

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS (Euro/000)	31.12.2024	31.12.20223
Profit before tax	41,346	20,780
Amortisation of intangible fixed assets	2,156	2,255
Depreciation of tangible fixed assets	920	1,215
Depreciation of right of use fixed assets	311	303
Losses (Gains) from sale of fixed assets		(4)
Change in provisions for risks and charges		(200)
Change in provision for employee benefits	(501)	(24)
Net financial expense (income)	(41,848)	(18,995)
Allocation to the share-based incentive plan		(241)
Monetary effect foreign exchange losses (gains)	(212)	(201)
Other non-monetary changes	418	270
Cash flow generated (absorbed) from operations before changes in working capital	2,590	5,158
Change in trade receivables	(667)	(1,711)
Change in trade payables	1,652	251
Change in other current assets	(1,712)	1,905
Change in other current liabilities	(3,138)	(7,207)
Change in other non-current assets	150	(15)
Cash flow generated (absorbed) from operations after changes in working capital	(1,125)	(1,619)
Change in tax	(1,272)	(789)
Interest paid	(11,592)	(8,707)
Interest collected	25,086	19,619
Dividends collected	13,890	7,121
Cash flow generated (absorbed) from operations (A)	24,987	15,625
Increase in intangible fixed assets	(810)	(1,319)
Increase in tangible fixed assets	(569)	(431)
Decrease in tangible fixed assets		46
Change in financial fixed assets	29,199	3,425
Cash flow generated (absorbed) from investments (B)	27,820	1,721
Change in financial payables	(119)
Payment of financial payables	(14,000)	(33,042)
New financial payables		25,000
Payments of financial liabilities from leases	(306)	(289)
Changes in cash pooling	(17,904)	28,357
(Purchase) sale of treasury shares		(19,771)
Dividends paid	(6,438)	(17,034)
Effect of change in cash and cash funds	9	14
Cash flow generated (absorbed) from financing activities (C)	(38,758)	(16,765)
Net increase (decrease) in cash (A+B+C)	14,049	582
Net cash and cash equivalents at beginning of year	40,437	39,855
Net cash and cash equivalents at year end	54,486	40,437

CHANGES IN EQUITY

	Share capital	Share premium reserve	Treasury shares held in portfolio	Share capital and reserves	Other reserves	Retained earnings	Profit for the year	Equity
01.01.2024	30,392	111,779	(41,962)	100,209	(259)	223,455	17,087	340,492
Allocation of profit						17,087	(17,087)
Dividends						(6,438)		(6,438)
Sale/purchase of treasury shares
Other changes
Share-based incentive plan
Profit/(loss) at 31.12.2024							37,859	37,859
Other items of the
statement of					111			111
comprehensive income
Total comprehensive Profit (Loss)					111		37,859	37,970
31.12.2024	30,392	111,779	(41,962)	100,209	(148)	234,104	37,859	372,024

	Share capital	Share premium reserve	Treasury shares held in portfolio	Share capital and reserves	Other reserves	Retained earnings	Profit for the year	Equity
01.01.2023	30,392	111,779	(22,191)	119,980	2,848	207,892	30,418	361,137
Allocation of profit						30,418	(30,418)
Dividends						(17,034)		(17,034)
Sale/purchase of treasury shares			(19,771)	(19,771)				(19,771)
Other changes					(2,154)	2,180		26
Share-based incentive plan					(351)			(351)
Profit/(loss) at 31.12.2023							17,087	17,087
Other items of the statement of comprehensive income					(601)			(601)
Total comprehensive Profit (Loss)					(601)		17,087	16,486
31.12.2023	30,392	111,779	(41,962)	100,209	(259)	223,455	17,087	340,492

Statutory Annual Financial Report at December 31, 2024

Explanatory Notes

DATALOGIC S.p.A. 11

EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS

GENERAL INFORMATION

Datalogic S.p.A. (the "Company" or the "Parent Company") is a joint-stock company listed on Euronext STAR Milan of Borsa Italiana S.p.A. and is headquartered in Italy. The registered office is in Via Candini 2, Lippo di Calderara (BO). The Company is a subsidiary of Hydra S.p.A., also based in Bologna.

Datalogic S.p.A. is the Parent Company of Datalogic Group ("Group"), a global technological leader in the automatic data capture and process automation markets. The Company is specialised in the design and production of barcode readers, mobile computers, detection, measurement and safety sensors, vision and laser marking systems and RFID.

The publication of the Company's Financial Statements at December 31, 2024 was authorised by resolution of the Board of Directors dated March 20, 2025.

BASIS OF PRESENTATION

1) General criteria

In compliance with European Regulation no. 1606/2002, the Financial Statements were prepared in accordance with the International Accounting Standards (IAS/IFRS) issued by the IASB - International Accounting Standard Board and endorsed by the European Union pursuant to European Regulation 1725/2003 and subsequent updates, with all the interpretations of the International Financial Reporting Standard Interpretations Committee ("IFRS-IC"), formerly known as the Standing Interpretations Committee ("SIC") endorsed by the European Commission at the date of approval of the draft Financial Statements by the Board of Directors and contained in the relevant E.U. Regulations published on that date and in compliance with the provisions set forth in CONSOB Regulation 11971 of 14/05/99 and subsequent updates.

These Financial Statements were drawn up in Euro thousands, which is the Company's "functional" and "presentation" currency.

2) Reporting formats

The reporting formats adopted comply with those required by IAS 1 and were used in the Financial Statements for the year ended December 31, 2023, in particular:

• current and non-current assets, as well as current and non-current liabilities are shown separately in the Statement of Financial Position. Current assets, which include cash and cash equivalents, are those set to be realised, sold or used during the Company's normal operational cycle; current liabilities are those whose extinction is envisaged during the normal operating cycle or in the twelve months after the reporting date;
• with regard to the Income Statement, cost and revenue items are disclosed based on grouping by function, as this classification was deemed more explanatory for comprehension of the Company's business result;
• the Statement of Comprehensive Income presents the items that determine profit/(loss) for the period and the costs and revenue recognised directly under equity;
• the Statement of Cash Flows is presented using the "indirect method".

The Financial Statements were prepared in accordance with the general criterion of reliable and truthful presentation of the Company's financial position, results of operations and cash flows, in compliance with the general principles of

going concern, accrual basis, consistency of presentation, materiality and aggregation, prohibition of offsetting and comparability of information.

The Statement of Changes in Equity analytically details the changes occurring in the year and in the prior year.

In preparing the Financial Statements, the historic cost principle was adopted for all assets and liabilities, except for certain financial assets for which the fair value principle was applied.

The preparation of IFRS-compliant financial statements requires the use of certain estimates. Reference is made to the section describing the main estimates made in these Financial Statements.

3) Accounting policies and standards applied

The policies adopted for the preparation of the Company's financial statements at December 31, 2024 are shown below.

Tangible fixed assets

Owned tangible fixed assets are recognised at the cost of contribution, purchase, or internal construction. The cost includes all directly attributable costs required to make the asset available for use (including, when relevant and where there are present obligations, the present value of estimated costs for decommissioning, asset removal, and site remediation), net of trade discounts and rebates.

Certain tangible fixed assets in the "Land and buildings" categories were measured at fair value (market value) at January 1, 2004 (date of first-time adoption of IFRS) and this value was used as the deemed cost. The cost of buildings is depreciated net of the residual value estimated as the realisation value obtainable through sale at the end of the useful life of the building.

Costs incurred after purchase are accounted for in the book value of the asset, or are recognised as a separate asset, only if it is believed likely that the future economic benefits associated with the asset will flow to the entity and the asset's cost can be reliably measured. Maintenance and repair costs or replacement costs that do not have the above characteristics are recognised in the income statement in the year in which they are incurred.

Fixed assets are systematically depreciated in each year from the time the fixed asset is available for use, or is potentially able to provide the associated economic benefits, based on economic-technical rates determined with regard to the remaining possibility of use of the assets and taking account of the month of availability for the first year.

The depreciation rates applied by the Company are as follows:

Asset category	Rates
Property:
Buildings	2% - 3.3%
Other assets:
Plants pertaining to buildings	8.33% - 10% - 6.67%
Lightweight constructions	6.67% - 4% - 33.3%
Production equipment & electronic instruments	20% - 10%
Moulds	20%
Electronic office machinery	33% - 20% - 10%
Office furniture and fittings	10% - 6.67% - 5%
Cars	25%
Freight vehicles	14%
Trade show & exhibition equipment	11% - 20%
Leasehold improvements	Contract duration

If a fixed asset suffers an impairment loss, then, regardless of the depreciation already recognised, the value of the fixed asset is accordingly written down; if the reasons for the impairment loss no longer apply in subsequent years, the original value is restored. The residual value and useful life of assets are reviewed at least at each year-end in order to assess any significant changes in value.

Fixed assets held under leases

Assets held by the Company under lease contracts, including operating leases, in accordance with IFRS 16, in force since January 1, 2019, are recorded under assets with a financial payable as a balancing entry. Specifically, assets are recognised at a value equal to the present value of future payments at the date of signing of the contract, discounted using the applicable incremental borrowing rate for each contract, and depreciated over the duration of the underlying contract, taking account of the effects of any extension or early termination clauses whose exercise was deemed reasonably certain.

In compliance with the provisions of IFRS 16, starting from January 1, 2019, the Company identifies contracts for which it obtains the right to use an identifiable asset for a period of time in exchange for a consideration as leases.

For each lease contact, starting from the commencement date, the Company recognises an asset (right of use of the asset) under tangible fixed assets as a balancing entry to a corresponding financial liability (lease payable), with the exception of the following cases: (i) short-term lease contracts; (ii) low-value lease contracts applied to situations where the leased asset has a value not exceeding €5 thousand (new value).

For short-term and low-value lease contracts, the financial liabilities related to the leases and corresponding right of use are not recognised, but the lease payments are recognised in the income statement on a straight-line basis for the duration of the respective contracts.

In the case of a complex contract that includes a lease component, the latter is always managed separately from the other services included in the contract.

Rights of use are shown in a specific item of the financial statements. At the time of initial recognition of the lease contract, the right of use is recognised at a value corresponding to the lease payable, determined as described above, increased by the instalments paid in advance and the ancillary expense and net of any incentives received. Where applicable, the initial value of the rights of use also includes the related costs of dismantling and restoring the area.

The situations involving the recalculation of the lease payable imply a corresponding change in the value of the right of use.

After initial recognition, the right of use is depreciated on a straight-line basis, starting from the commencement date, and subject to write-downs in the event of impairment. Depreciation is carried out over the shorter of the lease term and the useful life of the underlying asset; however, in cases where the lease contract envisages the transfer of ownership, possibly also as a result of the use of redemption options included in the value of the right of use, depreciation is carried out over the useful life of the asset.

Lease payables are shown in the financial statements under current and non-current financial liabilities, together with the Company's other financial payables. At the time of initial recognition, the lease payable is recorded on the basis of the present value of the lease instalments to be settled determined using the implicit interest rate of the contract (i.e. the interest rate that forms the present value of the sum of the payments and the residual value equal to the sum of the fair value of the underlying asset and the initial direct costs incurred by the Company); if this rate is not indicated in the contract or easily determinable, the present value is determined using the "incremental borrowing rate", i.e. the incremental interest rate that, in a similar economic context and in order to obtain an amount equal to the value of the right of use, the Company would have paid for a loan with similar duration and collateral.

The lease payments subject to discounting include fixed payments; variable fees due to an index or a rate; the redemption price, if any and if the Company is reasonably certain to use it; the amount of payment envisaged for any issue of collateral on the residual value of the asset; the amount of penalties to be paid in the event of the exercise of options for early termination of the contract, where the Company is reasonably certain to exercise them.

After initial recognition, the lease payable is increased to take account of the interest accrued, determined on the basis of the amortised cost, and decreased against the lease payments paid.

Additionally, the lease payable is subject to restatement, upward or downward, in the event of changes to the contracts or other situations envisaged by IFRS 16 that involve a change in the amount of the instalments and/or the duration of the lease. Specifically, in the presence of situations that involve a change in the estimate of the probability of exercise (or non-exercise) of the options for renewal or early termination of the contract or in the redemption (or not) provisions of the asset upon expiry of the contract, the lease payable is restated by discounting the new value of the instalments to be paid on the basis of a new discount rate.

Intangible fixed assets

Intangible assets are recognised under assets in the statement of financial position when it is likely that use of the asset will generate future economic benefits and when the asset's costs can be reliably determined. They are initially recognised at the value of contribution or at acquisition or production cost, inclusive of any ancillary expense. If tangible and intangible fixed assets are sold, the date of disposal will be the date when the purchaser obtains the control of the assets, pursuant to requirements set forth on performance obligations by IFRS 15. The profit or loss generated by the consideration is accounted for in the Income Statement and is determined according to requirements to determine the transaction price envisaged by IFRS 15. Subsequent changes to the estimated amount of consideration used to determine profit or loss must be accounted for in accordance with the requirements for changes in transaction pricing in IFRS 15.

Intangible fixed assets with finite useful life are amortised systematically in accordance with their expected future use, so that the net value at the end of the year corresponds to their remaining use or the amount recoverable according to the company's plans for carrying out production activities. Amortisation starts when the asset is available for use. The useful life for each category is detailed below:

Statutory Annual Financial Report at December 31, 2024

emarket sdir scorage
CERTIFIED

DESCRIPTION	Years
Other intangible assets:
- Software licences	3/5
- SAP licences	10
- User licences	Contract duration

The residual values, the useful lives and the amortisation of intangible fixed assets are reviewed at each year end and, where appropriate, adjusted prospectively. The useful lives shown remained unchanged versus the prior year.

Investments

Investments in subsidiaries and associates, not classified as "held for sale", are measured at cost, adjusted for impairment. Where there are indications that investments may be impaired, they are subject to impairment testing and written down if necessary. Impairment is charged to the income statement when there is objective evidence that events have occurred that impact the estimated future cash flows of the investments. Any losses, exceeding the carrying amount of investments, that may arise due to legal obligations or implicit obligations to cover losses of investees, are recognised under Provisions for risks and charges.

The original value is restored in subsequent years if the reasons for the write-downs no longer apply. The related dividends are recorded under financial income from investments at the time the right to receive them is determined, generally coinciding with the resolution taken by the Shareholders' Meeting.

Subsidiaries

Subsidiaries are all those companies over which the Company exercises control by having the power to determine, directly or indirectly, financial and operational policies and obtain benefits from their activities.

Associates

Associates are all those companies over which the Company exercises significant influence but does not have control over management or the power to determine financial and operational policies and obtain benefits from the activities of those companies.

Impairment

If there are specific indicators of impairment, tangible fixed assets, intangible fixed assets and investments are subject to an impairment test.

The aim of the impairment test is to ensure that tangible and intangible fixed assets, as well as investments, are not carried at a value exceeding their recoverable value, consisting of the higher of their fair value, less costs to sell and their value in use.

Value in use is determined based on the future cash flows expected to originate from the asset or cash-generating unit (hereafter also CGU) to which the asset belongs. Expected cash flows are discounted using a discount rate that reflects the current market estimate referring to the time-related cost of money and the risks specific to the asset or cash generating unit to which the assumed realisable value refers.

If the recoverable value of the asset or CGU, to which it belongs, is less than the net book value, the asset in question is written down to reflect its impairment, with recognition of the latter in the Income Statement for the year.

As no goodwill is recognised in the financial statements, impairment losses relating to CGUs are allocated on a proportional basis.

An impairment loss, in the event that the assumptions that generated it no longer apply, is reinstated, up to the amount corresponding to the book value that would have been determined, net of depreciation calculated on the historical cost, if no impairment loss had ever been recognised. Any reinstatements are recognised in the Income Statement.

Financial assets and liabilities

The Company measures certain financial assets and liabilities at fair value. Fair value is the price that would be received for the sale of an asset or that would be paid for transfer of a liability in a normal transaction between market participants at the date of measurement.

A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:

• in the principal market of the asset or liability; or
• in the absence of a principal market, in the most advantageous market for the asset or liability.

The principal market or most advantageous market must be accessible for the Company. The fair value of an asset or liability is measured by using the assumptions that market participants would use when pricing the asset or liability, assuming that they act in their economic best interest. A fair value measurement of a non-financial asset takes account of a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses measurement methods that are appropriate to the circumstances, and for which data available to measure fair value are sufficient, maximising the use of relevant observable inputs and minimising the use of nonobservable inputs. All assets and liabilities measured or recognised at fair value are classified based on a fair value hierarchy and described hereunder:

• Level 1 quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
• Level 2 inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;
• Level 3 measurement techniques for which input data are unobservable for the asset or liability.

The fair value measurement is classified in its entirety in the same level of the fair value hierarchy as the lowest level input used for the measurement.

For assets and liabilities recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels of the hierarchy by reviewing the categorisation at each annual reporting date.

Financial instruments

A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.

Financial assets

Financial assets are initially recognised at their fair value plus, in the case of a financial asset not at fair value through profit or loss, any ancillary expense. Exceptions are trade receivables that do not contain a significant financing component for which the Company applies the practical expedient by measuring them at the transaction price determined in accordance with IFRS 15.

Upon recognition, for subsequent measurement purposes, financial assets are classified according to the four possible measurement methods described below:

• Financial assets at amortised cost;
• Financial assets at fair value through OCI with reclassification of cumulative gains and losses;

• Financial assets at fair value through OCI without reversal of cumulative gains and losses on derecognition (equity instruments);
• Financial assets at fair value through profit or loss.

The selection of the classification of financial assets depends on the following:

• nature of financial assets, determined primarily by the characteristics of expected contractual cash flows;
• business model that the Company applies to the management of the financial assets in order to generate cash flows, which may result from the collection of contractual cash flows, as well as from the sale of financial assets or from both.

In order to classify and measure a financial asset at amortised cost or at fair value through OCI, this asset must generate cash flows that depend solely on payments of principal and interest (SPPI). This measurement is referred to as a SPPI test and is performed at the level of each instrument.

Financial assets are derecognised when the right to receive cash ceases to exist, the Company has transferred to a third party the right to receive cash flows from the asset or has a contractual obligation to pay them in full and without delay, and (1) has transferred substantially all risks and rewards of ownership of the financial asset or (2) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

In the cases where the Company has transferred the rights to receive cash flows from an asset or has signed an agreement based on which it retains the contractual rights to receive the cash flows of the financial asset, but undertakes a contractual obligation to pay the cash flows to one or more beneficiaries (pass-through), it assesses whether and to what extent it has retained the risks and benefits pertaining to ownership.

Valuations are regularly carried out in order to verify whether there is objective evidence that a financial asset or a group of assets may have suffered impairment. If there is objective evidence, the impairment is recognised as a cost in the income statement for the year.

As regards trade receivables, the Company applies a simplified approach in calculating the expected losses. Therefore, the Company does not monitor changes in credit risk, but the expected loss is fully recognised at each reporting date. The Company has established a matrix system based on historical information, reviewed to consider prospective elements with regard to the specific types of debtors and their economic environment, as a tool for determining expected losses.

Financial liabilities

Financial liabilities are measured using the amortised cost method, recognising expense through the effective interest rate method in the income statement, except for financial liabilities acquired for trading purposes or derivatives (see next paragraph), or those designated at FVTPL by Management on the date of initial recognition, which are measured at fair value with a balancing entry in the income statement.

Financial guarantees given are agreements envisaging a payment to repay the owner of a debt security against a loss incurred due to a non-payment by the debtor at the contractual maturity term. When issued by the Company, financial guarantee contracts are initially recognised as liabilities at fair value, increased by transaction costs directly attributable to issuance of the guarantee. The liability is then measured at the higher of the best estimate of the outlay required to meet the guaranteed obligation at the balance sheet date and the amount initially recognised, net of accumulated amortisation.

A financial liability is removed from the balance sheet when the obligation underlying the liability has been discharged,

cancelled or satisfied. Where an existing financial liability is exchanged for another from the same lender on substantially different terms, or the terms of an existing liability are substantially changed, such an exchange or change is treated as a derecognition of the original liability and a recognition of a new liability, with any differences between the carrying amounts recognised in the Income Statement. In the event of amendments on financial liabilities defined as irrelevant, the income effects of renegotiation are recognised in the Income Statement.

Offsetting of financial instruments

A financial asset and liability can be offset and the net balance can be shown in the Statement of Financial Position if there is a current legal right to offset the amounts recognised and there is the intention to settle the net remainder, or realise the asset and at the same time settle the liability.

Financial derivatives

Derivatives, including embedded derivatives, separate from the main contract, are initially recognised at fair value.

Derivatives are classified as hedging instruments when the relationship between the derivative and the hedged item is formally documented and the effectiveness of the hedge, assessed periodically, is high.

When hedging derivatives hedge the risk of changes in fair value of the hedged instruments, they are recognised at fair value, and the effects are charged to the Income Statement; accordingly, the hedged instruments are adjusted to reflect the changes in fair value, associated with the hedged risk.

When derivatives hedge the risk of changes in the cash flows of the hedged instruments (cash flow hedges), the hedges made are designated against exposure to variability in cash flows attributable to risks that may affect the Income Statement at a later date; these risks are generally associated with an asset or liability recognised in the Financial Statements (such as future payments on debt at floating rates).

The effective portion of the change in the fair value of the portion of derivative contracts that have been designated as hedges, in accordance with the requirements of the standard, is recognised as an item of the Statement of Comprehensive Income (Hedging Reserve); this reserve is then charged to the result in the period in which the hedged transaction affects the Income Statement.

The ineffective portion of fair value change, as well as the entire fair value change in derivatives that have not been designated as hedge derivatives or that do not have the requirements envisaged in the aforesaid IFRS 9, is instead recognised directly through the Income Statement.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, bank and postal deposits, and short-term financial investments (maturity of three months or less after purchase date) that are highly liquid, readily convertible into cash and are subject to insignificant risk of changes in value.

Equity

Share capital consists of the outstanding ordinary shares recorded at par value.

Costs related to the issuance of new shares or options are classified in Equity (net of the associated tax benefit) as a deduction from the proceeds arising from the issuance of these instruments.

Treasury shares

In the case of buyback of treasury shares, the price paid, inclusive of any directly attributable ancillary expense, is deducted from the Company's Equity until such shares are cancelled, re-issued, or sold. When these treasury shares are resold or re-issued, the proceeds, net of any directly attributable ancillary expense and related tax effect, are accounted for as Equity of the Company.

Therefore, no profit or loss is recognised in the Income Statement upon the purchase, sale or cancellation of treasury shares.

Liabilities from employee benefits

Post-employment benefits are defined on the basis of plans, which according to their characteristics are divided into "defined-contribution" and "defined-benefit" plans.

Employee benefits substantially include the provisions for severance indemnities of the Company.

Defined-contribution plans

Defined-contribution plans are formalised post-employment benefit plans under which a company makes payments to an insurance company or pension fund and will have no legal or implied obligation to pay further contributions if the fund does not have sufficient assets at vesting to pay all employee benefits related to employment in the current and prior years. These contributions, paid in exchange for employee service, are recorded as an expense in the period incurred.

Defined-benefit plans and other long-term benefits

Defined benefit plans are formalised post-employment benefit plans that constitute a future obligation for the Company. The undertaking bears the actuarial and investment risks associated with the plan.

The Company uses the projected unit credit method to determine the present value of liabilities of the plan and the cost of services.

This actuarial calculation method requires the use of objective actuarial hypotheses, compatible and based on demographic variables (mortality rate, personnel turnover) and financial variables (discount rate, future increases of salaries and wages and benefits). When a defined-benefit plan is entirely or partly financed by contributions paid to a fund, legally separate from the undertaking, or to an insurance company, the plan assets are measured at fair value. The amount of the obligation is thus accounted for, net of the fair value of the plan assets that will be used to settle that obligation directly.

Revaluations, which include actuarial gains and losses, changes in the effect of the asset ceiling (excluding net interest), and the return on plan assets (excluding net interest), are recognised immediately in the Statement of Financial Position by debiting or crediting retained earnings through the other items of the Statement of Comprehensive Income in the year in which they arise. Revaluations are not reclassified in the Income Statement in subsequent years. Other longterm benefits are employee benefits other than post-employment benefits. Accounting is similar to defined-benefit plans.

Provisions for risks and charges

Provisions for risks and charges are set aside to cover liabilities of uncertain amount or due date that must be recognised in the financial statements when the following concurrent conditions are met:

• the undertaking has a present obligation (legal or constructive), i.e. under way at the reporting date, as a result of a past event;
• it is likely that economic resources will be required to fulfil the obligation;
• the amount needed to fulfil the obligation can be reliably estimated;
• risks for which the onset of a liability is merely potential are shown in the notes to the financial statements, in the commentary part of the provisions, without making a provision.

In the case of events that are only remote, i.e., events that have minor chances of occurring, no provision is accounted for, nor is additional or supplementary information provided.

Allocations are booked at the amount representing the best estimate of the amount that the undertaking would pay to pay the obligation or to transfer it to third parties at the reporting date. If the effect of discounting the value of money is significant, allocations are determined by discounting expected future cash flows at a pre-tax discount rate that reflects the current market valuation of the time value of money. When discounting is carried out, the increase in the provision due to the passage of time is recognised as a financial expense.

Provisions are recorded at the present value of the expected financial resources to be used against the obligation. Provisions are periodically updated to reflect changes in cost estimates, timing of implementation, and discounted value, if any; revisions in provision estimates are charged to the same line item in the Income Statement that previously included the allocation and to the Income Statement for the year in which the change occurred.

The Company recognises restructuring provisions if there is an implied obligation to restructure and there is a formal plan for restructuring, which has raised a valid expectation in those affected that it will carry out the restructuring either by starting to implement that plan or because it has announced its main features to those affected by it.

Share-based incentive plan - Equity-settled payment transactions

A number of Company employees receive part of the remuneration as share-based payments, therefore these employees provide services in exchange for shares ("equity settled transactions").

The cost of equity-settled transactions is determined by the fair value on the date the assignment is made using an appropriate valuation method.

This cost is recognised in the case of the Company's employees under personnel costs for the period in which the conditions related to the achievement of targets and/or the performance of services are fulfilled, with a corresponding increase in equity as a balancing entry, while, in the case of employees of other Group companies, directly and indirectly controlled, as an increase in the carrying amount of investments. Cumulative costs and increases in investments recognised in respect of such transactions at the reporting date of each year to the vesting date are commensurate with the maturity of the vesting period and the best estimate of the number of equity instruments that will actually vest.

Service or performance conditions are not taken into account when defining the fair value of the plan at the grant date. However, the probability of these conditions being met is taken into account when defining the best estimate of the number of equity instruments that will vest. Arm's length conditions are reflected in the fair value at the grant date. Any other conditions attached to the plan that do not involve a service obligation are not considered to be a vesting condition. Non-vesting conditions are reflected in the fair value of the plan and result in the immediate recognition of the cost of the plan, unless there are also service or performance conditions.

No cost or increase in investments is recognised for rights that do not ultimately vest because the performance and/or service conditions have not been met. When rights include a market condition or a non-vesting condition, they are treated as if they had vested regardless of whether the market conditions or other non-vesting conditions they are subject to are met or not, with the understanding that all other performance and/or service conditions must be met.

If the conditions of the plan are changed, the minimum cost to be recognised is the fair value at the grant date in the absence of the plan change, assuming that the original conditions of the plan are met. Additionally, a cost is recognised for any change that results in an increase in the total fair value of the payment plan, or is otherwise favourable to employees; this cost is measured by reference to the date of change. When a plan is cancelled by the entity or the counterpart, any remaining fair value element in the plan is immediately transferred to the income statement.

Income tax

Income tax includes current and deferred tax. Income tax is generally charged to the Income Statement, except when it relates to cases recognised directly in Equity, in which case the tax effect is recognised directly in Equity.

Current income tax is calculated by applying to taxable income the tax rate in force at the reporting date and includes the adjustments to tax related to prior periods.

Deferred tax is calculated using the liability method applied to temporary differences between the amount of assets and liabilities in the financial statements and the corresponding amounts recognised for tax purposes.

Deferred tax assets are recognised against all deductible temporary differences and unused tax receivables and losses carried forward, to the extent that it is probable that there will be adequate future taxable profits that may make the use of deductible temporary differences and tax receivables and losses carried forward applicable.

Deferred tax is calculated at the tax rate expected to be in force at the time the asset is sold or the liability is settled.

Datalogic S.p.A. acts as the consolidating company for both the direct subsidiary Datalogic S.r.l. and the indirect subsidiaries Datasensing S.r.l. and Datalogic Ip Tech S.r.l.. This consolidation involves determining the total comprehensive income attributable to all four companies by summing their respective incomes and tax losses.

Revenue recognition

Revenue is measured at fair value of the amount collected or collectable from the provision of services within the scope of the Company's ordinary business activity. Revenue is shown net of VAT, discounts and rebates.

Pursuant to IFRS 15, the Company recognises revenue after identifying the contracts with its customers, as well as performance obligations to be fulfilled, determining the consideration it expects to be entitled to in exchange for the services, and after evaluating the manners to satisfy such performance obligations (satisfaction at point in time or over the time).

Pursuant to the provisions set out by IFRS 15, the Company recognises revenue only when the following obligations have been met:

• the parties to the contract have approved the contract and are committed to perform their respective obligations;
• each party's rights regarding the goods or services to be transferred can be identified;
• payment terms of transferable goods and services can be identified;
• the contract is of a commercial type;
• consideration in exchange for the transferred services is likely to be received.

If the aforesaid requirements are met, the Company recognises revenue by applying the following rules.

Provision of services

The Company provides services to its subsidiaries. The Company recognises revenue from services when it has fulfilled its performance obligation, transferring the promised service (i.e., asset) to the customer. An asset is transferred when the customer obtains control of that asset.

Government grants

Government grants are recognised - regardless of the existence of a formal grant resolution - when there is reasonable certainty that the entity will comply with the conditions attached to the grant and therefore that the grant will be received.

Government grants obtainable as reimbursement for expense and costs already incurred, or for the purpose of providing immediate financial aid to the recipient company with no future related costs, are recognised as income in the year in which they become receivable.

Income from dividends and interest

Income from dividends and interest is respectively recognised as follows:

• dividends, when the right to receive payment is determined (with receivable offset at the time of the distribution resolution);
• interest, applying the effective interest rate method.

Dividends distributed

Dividends are recognised when the right for shareholders to receive payment arises, which normally corresponds to the date of the Annual Shareholders' Meeting that resolves on the distribution of dividends.

The dividends distributable to Company shareholders are recognised as an equity movement in the year when they are approved by the Shareholders' Meeting.

Treatment of foreign currency transactions

Functional presentation currency

The Company's financial statement items are shown in the currency of the economic environment in which the entity operates, so-called functional currency. The Financial Statements are presented in Euro thousands, the Euro being the Company's functional and presentation currency.

Transactions in currencies other than the functional currency

Transactions in currencies other than the functional currency are initially translated into the functional currency by using the exchange rate at the transaction date. At the end of the reporting period, monetary assets and liabilities denominated in non-functional currencies are translated into the functional currency at the exchange rate in effect on the closing date. Exchange differences realised upon collection of receivables and payment of payables in foreign currencies and those arising from the translation of monetary assets and liabilities into non-functional currencies at the closing date are recorded in the Income Statement under financial income and expense. Non-monetary assets and liabilities denominated in non-functional currencies that are measured at cost are translated at the exchange rate on the date of the transaction, while those measured at fair value are translated at the exchange rate on the date such value is determined.

4) IFRS accounting standards, amendments and interpretations applied as from January 1, 2024

The following accounting standards, amendments and IFRS interpretations have been applied by the Company for the first time as from 1 January 2024:

• On January 23, 2020, the IASB published "Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current" and on October 31, 2022 published "Amendments to IAS 1 Presentation of Financial Statements: Non-Current Liabilities with Covenants". These changes aim to clarify how to classify payables and other short-term or long-term liabilities. Additionally, the amendments also improve the information that an entity must provide when its right to defer settlement of a liability for at least twelve months is subject to meeting certain parameters (i.e., covenants). The adoption of these amendments had no impact on the financial statements of the Company.
• On September 22, 2022, the IASB published "Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback". The document requires the seller-lessee to measure the lease liability arising from a sale & leaseback transaction in a way that it does not recognise the gain or loss that relates to the right of use it retains. The adoption of these amendments had no impact on the financial statements of the Company.
• On May 25, 2023, the IASB published "Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements". The document requires an entity to provide additional information on reverse factoring arrangements that will enable financial statement users to assess how financial arrangements with suppliers may affect the entity's liabilities and cash flows and to understand the effect of such arrangements on the entity's exposure to liquidity risk. The adoption of these amendments had no impact on the financial statements of the Company.

5) IFRS accounting standards, amendments and interpretations endorsed by the European Union at December 31, 2024, but not yet applicable on a compulsory basis and not adopted in advance by the Company at December 31, 2024

At the date of this document, the competent bodies of the European Union have not yet completed the endorsement process required for the adoption of the amendments and the standards described below, but these standards are not applicable on a compulsory basis and have not been adopted in advance by the Company at December 31, 2024:

• On August 15, 2023, the IASB published "Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability". The document requires an entity to apply a methodology to be applied consistently in order to ascertain whether one currency can be converted into another and, when this is not feasible, how to determine the exchange rate to be used and the disclosure to be made in the notes to the financial statements. The amendment will apply as of January 1, 2025, but early application is permitted. The directors do not expect any significant effect on the financial statements of the Company from the adoption of this amendment.

6) IFRS accounting standards, amendments and interpretations not yet endorsed by the European Union at December 31, 2024

At the date of this document, the competent bodies of the European Union have not yet completed the endorsement process required for the adoption of the amendments and the standards described below.

• On May 30, 2024, the IASB published "Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7″. The document addresses several issues identified in the post-implementation review of IFRS 9, particularly concerning the accounting treatment of financial assets with returns that fluctuate based on the achievement of ESG targets, such as green bonds. Specifically, the amendments aim to:
  • clarify the classification of financial assets with variable returns and tied to environmental, social and corporate governance (ESG) targets and the criteria to be used for the SPPI test assessment;

• determine that the date of settlement of liabilities through electronic payment systems is the date on which the liability is settled. However, an entity is permitted to adopt an accounting policy to allow a financial liability to be derecognised before delivering cash on the settlement date under certain specific conditions.

With these amendments, the IASB has also introduced additional disclosure requirements for investments in equity instruments designated to FVOCI in particular.

The amendments will apply from the financial statements of financial years beginning on or after January 1, 2026. The directors do not expect any significant effect on the financial statements of the Company from the adoption of this amendment.

• On July 18, 2024, the IASB published "Annual Improvements Volume 11". The document includes clarifications, simplifications, corrections and changes aimed at improving the consistency of several IFRS Accounting Standards. The amended standards are:
  • IFRS 1 First-time Adoption of International Financial Reporting Standards;
  • • IFRS 7 Financial Instruments: Disclosures and related guidance on the implementation of IFRS 7;
  • IFRS 9 Financial Instruments;
  • IFRS 10 Consolidated Financial Statements; and
  • IAS 7 Statement of Cash Flows.

The amendments will apply as of January 1, 2026, but early application is permitted. The directors will evaluate the possible effects of the introduction of this new standard on the Company's financial statements in the coming months.

• On December 18, 2024, the IASB published the amendment "Contracts Referencing Nature-dependent Electricity - Amendment to IFRS 9 and IFRS 7.". The document aims to support entities in reporting the financial effects of renewable electricity purchase agreements (often structured as Power Purchase Agreements). Based on these contracts, the amount of electricity generated and purchased can vary based on uncontrollable factors such as weather conditions. The IASB has made targeted amendments to IFRS 9 and IFRS 7. The amendments include:
  • a clarification regarding the application of "own use" requirements to this type of contract;
  • the criteria for allowing such contracts to be accounted for as hedging instruments; and,
  • new disclosure requirements to allow financial statement users to understand the effect of these contracts on an entity's financial performance and cash flows.

The amendment will apply as of January 1, 2026, but early application is permitted. The directors do not expect any significant effect on the financial statements of the Company from the adoption of this amendment.

• On April 9, 2024, the IASB published a new standard IFRS 18 Presentation and Disclosure in Financial Statements, which will supersede IAS 1 Presentation of Financial Statements. The new standard aims to improve the presentation of reporting formats, with particular reference to the income statement format. Specifically, the new standard requires the following:

• classify revenue and expense into three new categories (operating section, investment section, and financial section), in addition to the tax and discontinued operations categories already in the income statement;
• Present two new sub-totals, operating profit/loss and profit/loss before interest and tax (i.e. EBIT).

The new standard also:

• requires more information on performance measures defined by management;
• introduces new criteria for information aggregation and disaggregation; and,
• introduces a number of changes to the format of the statement of cash flows, including a requirement to use operating profit/loss as the starting point for the presentation of the statement of cash flows prepared under the indirect method and the elimination of certain classification options for certain items that currently exist (such as interest paid, interest received, dividends paid and dividends received).

The new standard will take effect on January 1, 2027, but early application is permitted. The directors will evaluate the possible effects of the introduction of this new standard on the Company's financial statements in the coming months.

7) Use of estimates and assumptions

The preparation of the IFRS-compliant Financial Statements requires the Directors to apply accounting standards and methods that, in certain cases, are based on valuations and estimates based on historical experience and assumptions that are evaluated from time to time according to the specific cases. The application of these estimates and assumptions affects the amounts of revenue, expense, assets and liabilities and their disclosure, as well as the disclosure of contingent liabilities. The results of financial statement items for which the above estimates and assumptions were used may differ from those shown owing to the uncertainty surrounding the assumptions and conditions on which the estimates are based.

Following are the assumptions regarding the future and other main causes of uncertainty in estimates that, at the reporting date, show a risk of resulting in adjustments to the carrying amounts of assets and liabilities within the next year. The Company has based its assumptions and estimates on parameters available when preparing the Financial Statements. The current circumstances and assumptions on future developments may however change upon occurrence of market changes or events beyond the Company's control. Upon their occurrence, these changes are reflected in the assumptions.

Tax

Deferred tax assets are recognised to the extent that it is probable that there will be a taxed profit in the future such that they can be used. Material estimates by Management are required to determine the amount of tax assets that can be recognised based on the level of future taxable profits, the timing of their occurrence, and tax planning strategies. Deferred tax liabilities for tax on retained earnings of subsidiaries, affiliates or joint ventures are not recognised to the extent that it is probable that their distribution will not occur in the foreseeable future. Therefore, estimates by Management are required to determine the amount of tax assets that may be recognised and tax liabilities that may not be recognised based on the level of future taxable profits, the timing of their occurrence, and tax planning strategies. The long-term nature, as well as the complexity of regulations in various jurisdictions, differences arising between actual results and the assumptions made, or future changes in those assumptions, may require future adjustments to income tax and costs and benefits already recorded.

Fair value of financial instruments

When the fair value of a financial asset or liability recognised in the statement of financial position cannot be measured by relying on quotations in an active market, fair value is determined using various valuation techniques. Inputs included in this model are taken from observable markets where possible, otherwise, some degree of estimation is required to define fair values.

Share-based incentive plan - Equity-settled payment transactions

Certain employees of the Company receive a portion of their compensation as share-based payments. The cost of equity-settled transactions is determined by the fair value of instruments at the date of the assignment. The cumulative costs recorded for such transactions at the end of each year up to the vesting date are commensurate with the expiry of the vesting period and the best estimate of the number of equity instruments that will actually vest. Evaluation processes and manners, as well as the determination of the abovementioned estimates, are based on assumptions that, for their nature, involve reliance on the judgement of the Directors.

MANAGEMENT OF FINANCIAL RISKS

Risk factors

The Company is exposed to various types of financial risks in carrying out its business, including:

• market risk, specifically:
  • foreign exchange risk, relating to operations in currency areas other than the currency of denomination;
  • interest rate risk, connected with the Company's level of exposure to financial instruments, generating interest and recognised in the Statement of Financial Position;
• credit risk, deriving from trade transactions or from financing activities;
• liquidity risk, referring to the availability of financial resources and access to the credit market.

The Company specifically monitors each of the abovementioned financial risks, taking prompt action in order to minimise such risks. The sensitivity analysis then shows the potential impact on final results from hypothetical fluctuations in the relevant parameters. Under IFRS 7, the analyses are based on simplified scenarios applied to the figures and, by their very nature, cannot be considered indicators of the actual effects of future changes.

MARKET RISK

Foreign exchange risk

The Company operates internationally and is exposed to transactional foreign exchange risk. Transactional risk relates to the trade (receivables/payables in foreign currencies) and financial (loans drawn or granted in foreign currencies) transactions of the Company in currencies other than the functional and presentation currency. The foreign currency to which the Company is most exposed is the US dollar.

To enable full understanding of the impact of foreign exchange risk on the Company's financial statements, a sensitivity analysis of foreign exchange balances to changes in the exchange rate was conducted. The variability parameters applied were identified among the foreign exchange rate differences considered reasonably possible, with all other variables remaining equal. The following table shows the results of the analysis at December 31, 2024:

USD	Nominal value	Portion exposed to exchange rate	5%	-5%
		risk
Exchange rates		1.0389	1.0908	0.9870
Financial assets
Cash and cash funds	54,486	24,883	(1,185)	1,310
Trade and other receivables	22,348	1,717	(82)	90
Financial assets and loans	309,726	(8,009)	381	(422)
Financial liabilities
Loans	195,109	40,307	1,919	(2,121)
Trade and other payables	14,871	2,376	113	(125)
Net impact on Income Statement			1,147	(1,268)

At December 31, 2024, the Company has no financial instruments to hedge changes in foreign exchange rates.

Interest rate risk

The Company is exposed to interest rate risk associated with the financial assets and liabilities in place. The aim of interest rate risk management is to limit and stabilise the negative effects on cash flows subject to changes in interest rates. At December 31, 2024, the Company has no financial instruments to hedge interest rate changes.

To enable full understanding of the potential effects of rate fluctuations the Company is subject to, a sensitivity analysis was carried out on the items most subject to risk, assuming a change in the interest rate for Euro and USD underlyings of 75 basis points. The analysis was carried out on reasonable assumptions, and the results are shown below with regard to the date of December 31, 2024:

EUR	Nominal value	Portion exposed to interest rate risk	+75bp	-75bp
Financial assets
Cash and cash funds	54,486	29,603	222	(222)
Financial assets and loans	309,726	317,735	2,383	(2,383)
Financial liabilities
Loans	195,109	76,207	(572)	572
Net impact on Income Statement			2,033	(2,033)

USD	Nominal value	Portion exposed to interest rate risk	+75bp	-75bp
Financial assets
Cash and cash funds	54,486	24,883	187	(187)
Financial assets and loans	309,726	(8,010)	(60)	60
Financial liabilities
Loans	195,109	40,307	(302)	302
Net impact on Income Statement			(175)	175

Credit risk

Since the Company has no trade or financial relations with customers outside Datalogic Group, but only with Group Companies, it is not materially exposed to this risk.

Liquidity risk

The Company's liquidity risk is minimised by the timely management by the Treasury department. Bank debt and liquidity are managed through financial resource optimisation tools, including cash pooling. The Company manages and negotiates medium/long-term loans and credit lines to meet the Group's requirements. Centralised negotiation of credit lines and loans, together with the management of the Group's cash resources are aimed at optimising financing costs. The following table shows financial liabilities by maturity:

Financial liabilities by maturity	0 - 1 year	1 - 5 years	over 5 years	Total
Loans	13,938	64,657		78,595
Financial payables from leases	304	919	251	1,474
Financial payables to Group companies	115,040			115,040
Trade and other payables	14,872			14,872
Total	144,154	65,576	251	209,981

INFORMATION ON THE STATEMENT OF FINANCIAL POSITION

ASSETS

Note 1. Tangible fixed assets

Tangible fixed assets at December 31, 2024 amounted to €18,695 thousand; the breakdown of the item at December 31, 2024 and December 31, 2023 is shown below.

	31.12.2024	31.12.2023	Change
Land	2,466	2,466	-
Buildings	14,360	14,598	(238)
Other assets	1,869	1,982	(113)
Total	18,695	19,046	(351)

"Other assets" at December 31, 2024 includes: office furniture and equipment (€1,397 thousand), generic plant related to buildings (€360 thousand), motor vehicles (€79 thousand), and lightweight constructions (€33 thousand). Expenditure made during the year relates mainly to office equipment and refers both to their normal replacement and to upgrades and improvements to the Company's infrastructure.

Details of changes at December 31, 2024 and at December 31, 2023 are as follows:

	Land	Buildings	Other assets	Total
Historical cost	2,466	18,378	16,422	37,266
Accumulated depreciation	-	(3,780)	(14,440)	(18,220)
Net book value at 01.01.2024	2,466	14,598	1,982	19,046
Increases 31.12.2024
Capital expenditure	-	-	568	568
Total	-	-	568	568
Decreases 31.12.2024
Disposals, historical cost	-	-	(30)	(30)
Disposals, accum. depreciation	-	-	30	30
Depreciation	-	(238)	(682)	(920)
Total	-	(238)	(682)	(920)
Historical cost	2,466	18,378	16,960	37,804
Accumulated depreciation	-	(4,018)	(15,091)	(19,109)
Net book value at 31.12.2024	2,466	14,360	1,869	18,695

	Land	Buildings	Other assets	Total
Historical cost	2,466	18,177	16,945	37,588
Accumulated depreciation	-	(3,545)	(14,171)	(17,716)
Net book value at 01.01.2023	2,466	14,632	2,774	19,872
Increases 31.12.2023
Capital expenditure	-	201	230	431
Total	-	201	230	431
Decreases 31.12.2023
Disposals, historical cost	-	-	(753)	(753)
Disposals, accum. depreciation	-	-	711	711
Depreciation	-	(235)	(980)	(1,215)
Total	-	(235)	(1,022)	(1,257)
Historical cost	2,466	18,378	16,422	37,266
Accumulated depreciation	-	(3,780)	(14,440)	(18,220)
Net book value at 31.12.2023	2,466	14,598	1,982	19,046

Note 2. Intangible fixed assets

Intangible fixed assets at December 31, 2024 amounted to €5,252 thousand; the breakdown of the item at December 31, 2024 and December 31, 2023 is shown below.

	31.12.2024	31.12.2023	Change
Software	5,165	6,457	(1,292)
Fixed assets under construction and advances	87	141	(54)
Total	5,252	6,598	(1,346)

"Fixed assets under construction and advances", amounting to €87 thousand, is attributable to the implementation and customisation of proprietary software licenses to be completed.

Details of changes at December 31, 2024 and at December 31, 2023 are as follows:

		Fixed assets under
	Software	Other	construction and	Total
			advances
Historical cost	21,543	1,066	141	22,750
Accumulated amortisation	(15,086)	(1,066)	-	(16,152)
Net book value at 01.01.2024	6,457	-	141	6,598
Increases 31.12.2024
Capital expenditure	723	-	87	810
Total	723	-	87	810
Decreases 31.12.2024
Disposals, historical cost	-		-	-
Disposals, accum. amortisation	-	-	-	-
Amortisation	(2,156)	-	-	(2,156)
Total	(2,156)	-	-	(2,156)
Other changes 31.12.2024
Incoming transfers at historical cost	141	-	(141)	-
Total	141	-	(141)	-
Historical cost	22,407	1,066	87	23,560
Accumulated amortisation	(17,242)	(1,066)	-	(18,308)
Net book value at 31.12.2024	5,165	-	87	5,252

	Fixed assets
	Software	Other	under construction and advances	Total
Historical cost	22,953	1,066	478	24,497
Accumulated amortisation	(15,671)	(1,066)	-	(16,737)
Net book value at 01.01.2023	7,282	-	478	7,760
Increases 31.12.2023
Capital expenditure	1,204	-	115	1,319
Total	1,204	-	115	1,319
Decreases 31.12.2023
Disposals, historical cost	(2,840)		(226)	(3,066)
Disposals, accum. amortisation	2,840	-	-	2,840
Amortisation	(2,255)	-	-	(2,255)
Total	(2,255)	-	(226)	(2,481)
Other changes 31.12.2023
Incoming transfers at historical cost	226	-	(226)	-
Total	226	-	(226)	-
Historical cost	21,543	1,066	141	22,750
Accumulated amortisation	(15,086)	(1,066)	-	(16,152)
Net book value at 31.12.2023	6,457	-	141	6,598

Note 3. Right of use fixed assets

The breakdown of the item at December 31, 2024 and at December 31, 2023 is shown below.

	31.12.2024	31.12.2023	Change
Buildings	1,224	1,143	81
Vehicles	212	161	51
Total	1,436	1,304	132

The increase in "Buildings" is attributable mainly to the signing of new property leases for employees.

Details of changes at December 31, 2024 and at December 31, 2023 are as follows:

	Buildings	Vehicles	Total
Historical cost	1,494	387	1,881
Accumulated depreciation	(351)	(226)	(577)
Net book value at 01.01.2024	1,143	161	1,304
Increases 31.12.2024
Increases from changes in contracts	451	161	612
Total	451	161	612
Decreases 31.12.2024
Decreases in historical cost from changes in contracts	(213)	(82)	(295)
Decreases in accumulated depreciation from changes in contracts	60	66	126
Depreciation	(217)	(94)	(311)
Total	(370)	(110)	(480)
Historical cost	1,732	466	2,198
Accumulated depreciation	(508)	(254)	(762)
Net book value at 31.12.2024	1,224	212	1,436

	Buildings	Vehicles	Total
Historical cost	1,243	529	1,772
Accumulated depreciation	(169)	(300)	(469)
Net book value at 01.01.2023	1,073	229	1,302
Increases 31.12.2023
Increases from changes in contracts	354	54	408
Total	354	54	408
Decreases 31.12.2023
Decreases in historical cost from changes in contracts	(103)	(196)	(299)
Decreases in accumulated depreciation from changes in contracts	19	176	195
Depreciation	(201)	(102)	(303)
Total	(285)	(122)	(407)
Historical cost	1,494	387	1,881
Accumulated depreciation	(351)	(226)	(577)
Net book value at 31.12.2023	1,143	161	1,304

Note 4. Investments in subsidiaries and associates

Investments held by the Company at December 31, 2024 amounted to €178,245 thousand (€189,256 thousand at December 31, 2023).

	31.12.2023	Increases	Decreases	31.12.2024
Subsidiaries	188,524	-	(11,011)	177,513
Associates	732	-	-	732
Total affiliates	189,256	-	(11,011)	178,245

The decrease of €11,011 thousand is related to the sale of Informatics Holdings, Inc.

Information on investments in subsidiaries and associates is shown in Annex 2. Negative differences between pro-rata equity and the carrying amount of certain investments are not deemed to represent impairment losses in relation to the future earnings expectations of the investees and the contribution they are expected to make to the business of the Company and the Group.

Note 5. Financial assets and liabilities by category

The following table provides a breakdown of "Financial assets and liabilities" in accordance with IFRS 9.

Financial assets

	Financial Assets at Amortised Cost	Financial assets at FV through profit and loss	Financial assets at FV through OCI	31.12.2024
Non-current financial assets	59	1,901	81	2,041
Non-current financial assets and investments	-	1,901	81	1,982
Other receivables	59			59
Current financial assets	386,560	-	-	386,560
Trade receivables	17,800			17,800
Other receivables	4,548			4,548
Loans to subsidiaries	309,726			309,726
Cash and cash equivalents	54,486			54,486
Total	386,619	1,901	81	388,601

Statutory Annual Financial Report at December 31, 2024

	Financial Assets at Amortised Cost	Financial assets at FV through profit and loss	Financial assets at FV through OCI	31.12.2023
Non-current financial assets	2,264	1,619	99	3,982
Non-current financial assets and investments	2,055	1,619	99	3,773
Other receivables	209			209
Current financial assets	313,530	-	-	313,530
Trade receivables	17,131			17,131
Other receivables	2,836			2,836
Loans to subsidiaries	253,126			253,126
Financial assets - Loans				-
Cash and cash equivalents	40,437			40,437
Total	315,794	1,619	99	317,512

Financial liabilities

	Derivatives	Financial liabilities at amortised cost	31.12.2024
Non-current financial liabilities	-	65,827	65,827
Non-current financial payables	-	65,827	65,827
Current financial liabilities	-	144,152	144,152
Trade payables	-	7,516	7,516
Other payables	-	7,355	7,355
Current financial payables	-	129,281	129,281
Total	-	209,979	209,979

	Derivatives	Financial liabilities at amortised cost	31.12.2023
Non-current financial liabilities	-	79,319	79,319
Non-current financial payables	-	79,319	79,319
Current financial liabilities	-	105,767	105,767
Trade payables	-	5,855	5,855
Other payables	-	10,515	10,515
Current financial payables	-	89,397	89,397
Total	-	185,086	185,086

The fair value of financial assets and financial liabilities is determined according to methods classifiable in the various levels of the fair value hierarchy as envisaged by IFRS 13. Specifically, the Company uses internal valuation models generally used in financial practice, based on prices provided by market participants or quotations recorded on active markets.

Fair value - hierarchy

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

Level 1: market prices;

Level 2: valuation techniques (based on observable market data);

Level 3: valuation techniques (not based on observable market data).

Assets measured at fair value	Level 1	Level 2	Level 3	31.12.2024
Non-current financial assets and investments	81	-	1,901	1,982
Total assets measured at fair value	81	-	1,901	1,982

Note 6. Financial assets and loans to third parties

Financial assets and loans to third parties include the following:

	31.12.2024	31.12.2023	Change
Non-current financial assets	1,982	3,773	(1,791)
Total	1,982	3,773	(1,791)

Non-current financial assets amounted to €1,982 thousand; the main change refers to the write-down of an investment with uncertain recoverability.

The change in "Non-current financial assets" is detailed below:

	2024	2023	Change
At January 1	3,773	7,948	(4,175)
Acquisitions/Disposals	150	(3,458)	3,608
Write-downs	(1,993)	-	(1,993)
Gains/(Losses) recognised in OCI	(17)	(683)	666
Gains/losses recognised in the Income Statement	69	(34)	103
At December 31	1,982	3,773	(1,791)

Note 7. Trade and other receivables

The breakdown of the item at December 31, 2024 and at December 31, 2023 is shown below:

	31.12.2024	31.12.2023	Change
Trade receivables	17,800	17,131	669
of which Parent Company	155	-	155
of which subsidiaries	17,571	17,101	471
of which related parties	1	-	1
Other receivables - accrued income and prepaid expense	4,607	2,836	1,562
of which subsidiaries	-	134	(134)
Other receivables - current accrued income and deferred expense	4,548	2,836	1,712
Other receivables - non-current accrued income and deferred expense	59	209	(150)
Trade and other receivables - current portion	22,348	19,967	2,381

Trade receivables

Trade receivables at December 31, 2024 amounted to €17,800 thousand and included mainly trade transactions for intercompany services provided to subsidiaries at normal market conditions. At December 31, 2024, the breakdown of the item by maturity, versus the prior year, was as follows:

	31.12.2024	31.12.2023
Not overdue	17,412	11,919
Past due by 30 days	184	4,815
Past due by 31 - 90 days	26	133
Past due by more than 90 days	177	265
Total	17,800	17,131

The following table shows the breakdown of trade receivables by currency at December 31, 2024 and at December 31, 2023:

	31.12.2024	31.12.2023
Euro (EUR)	16,110	15,713
US Dollar (USD)	1,677	1,412
British Pound Sterling (GBP)	5	5
Turkish Lira (TRY)	7	2
Total	17,800	17,131

Other receivables - accrued income and deferred expense

The details of "Other receivables - accrued income and deferred expense" are shown below.

	31.12.2024	31.12.2023	Change
Other current receivables	398	363	35
of which subsidiaries	-	134	(134)
Other non-current receivables	59	209	(150)
VAT receivable	2,516	957	1,559
Accrued income and deferred expense	1,634	1,516	118
Total	4,607	3,045	1,562

"Accrued income and deferred expense" is composed mainly of the recognition of insurance contracts and hardware and software licenses.

Note 8. Tax receivables and payables

	31.12.2024	31.12.2023	Change
Tax receivables	2,224	2,209	15
of which subsidiaries	262	655	(393)
Tax payables	(11,505)	(8,455)	(3,050)
of which subsidiaries	(10,174)	(6,837)	(3,337)
Total	(9,281)	(6,246)	(3,035)

At December 31, 2024, the net balance of "Tax receivables and payables" was negative and amounted to €9,281 thousand, with a negative change of €3,035 thousand versus December 31, 2023, when the net balance showed a payable of €6,246 thousand.

Note 9. Current financial receivables

	31.12.2024	31.12.2023	Change
Loans to subsidiaries	258,477	217,282	41,195
Financial receivables from cash pooling	51,249	35,844	15,405
Total	309,726	253,126	56,600

At December 31, 2024, "Loans to subsidiaries" amounted to €258,477 thousand (€217,282 thousand at December 31, 2023); these loans bear interest determined at normal market conditions. For details on the breakdown of the item by counterparty, reference is made to the following section on related-party transactions.

LIABILITIES AND EQUITY

Note 10. Equity

Equity at December 31, 2024 is broken down as follows:

	31.12.2024	31.12.2023	Change
Share capital	30,392	30,392	-
Share premium reserve	111,779	111,779	-
Treasury shares held in portfolio	(41,962)	(41,962)	-
Share capital and reserves	100,209	100,209	-
Other reserves	(148)	(259)	111
Retained earnings	234,104	223,455	10,649
Profit for the year	37,859	17,087	20,772
Total	372,024	340,492	31,532

Details of the changes in equity items that occurred during the year, and in the prior year, can be found in the appropriate statement in the financial statements.

Share capital

At December 31, 2024, the share capital of €30,392 thousand represents the fully subscribed and paid-up share capital. It is made up of a total number of 58,446,491 ordinary shares, of which 4,800,000 are held as treasury shares for a value of €41,962 thousand, therefore the outstanding shares at that date are 53,646,491. The shares have a par value of €0.52 each.

Other Reserves

At December 31, 2024, "Other reserves" came to a negative €148 thousand.

Note 11. Financial payables

"Financial payables" at December 31, 2024 amounted to €195,109 thousand, increasing by €26,392 thousand as detailed below.

	31.12.2024	31.12.2023	Change
Bank loans	78,595	92,655	(14,060)
Financial payables to subsidiaries	115,040	74,726	40,314
Financial payables from leases	1,474	1,335	139
Total	195,109	168,716	26,393

Financial payables are broken down by maturity date as follows:

	0 - 1 year	1 - 5 years	over 5 years	31.12.2024
Bank loans	13,938	64,657	-	78,595
Financial payables	115,040	-	-	115,040
Financial payables from leases	304	919	251	1,474
Total	129,282	65,576	251	195,109

Bank borrowings at December 31, 2024, totalling €78,595 thousand, were taken out at a fixed rate. The change in the year is due to the repayment of instalments falling due during the year.

	31.12.2024	31.12.2023
At January 1	92,655	100,661
Increases	-	25,000
Decreases from borrowing repayments	(14,000)	(33,042)
Other changes	(60)	36
At December 31	78,595	92,655

Covenants

Certain loan agreements require the Company to comply with financial covenants, measured on a half-year basis at June 30 and December 31, summarised in the following table:

Loan	Company	Covenants	Frequency	Reference financial statements
RCF	Datalogic S.p.A.	NFP/EBITDA 4.5x; 4.0x *	half-year	Consolidated
Roller Coaster	Datalogic S.p.A.	NFP/EBITDA 3.0x	half-year	Consolidated

* 4.5x at June and 4.0x at December

At December 31, 2024, all covenants were met.

Note 12. Net deferred tax

Deferred tax assets and deferred tax liabilities arise both from positive items already recorded in the income statement, the taxation of which is deferred in application of current tax regulations, and from differences of a temporary nature between the value of assets and liabilities recorded in the financial statements for the year and the relevant value for tax purposes.

Deferred tax assets are accounted for in accordance with the assumptions of future recoverability of the temporary differences they originated from, i.e., on the basis of strategic economic and tax plans.

The net balance of prepaid tax assets and deferred tax liabilities came to a negative €151 thousand at December 31, 2024 (a negative €946 thousand at December 31, 2023).

	31.12.2024	31.12.2023	Change
Deferred tax assets	1,294	1,334	(40)
Deferred tax liabilities	(1,445)	(2,280)	835
Net deferred tax	(151)	(946)	795

The main items of deferred tax assets and deferred tax liabilities and their changes during the year are shown below:

Prepaid tax	31.12.2023	Allocated (released) to Income Statement	Allocated (released) to Equity	31.12.2024
Foreign exchange gains/(losses)	525	(525)		-
Differences on amortisation/depreciation	213	(9)		204
Allocations to provisions	369	70		439
Tax losses	73	(73)		-
Other	154	522	(25)	651
Total	1,334	(15)	(25)	1,294

Deferred tax	31.12.2023	Allocated (released) to Income Statement	Allocated (released) to Equity	31.12.2024
Foreign exchange gains/(losses)	835	(835)	-	-
Differences on amortisation/depreciation	1,391	-	-	1,390
Other	55	-	-	55
Total	2,280	(835)	-	1,445

Note 13. Provisions for post-employment and retirement benefits

The breakdown of changes in "Provisions for post-employment and retirement benefits" at December 31, 2024 and at December 31, 2023 is shown below:

	2024	2023	Change
At January 1	788	716	72
Amount allocated in the year	306	332	(27)
Utilisations	(501)	(158)	(343)
Receivables from INPS	52	(157)	209
Discounting	(92)	0	(92)
Other movements	(30)	55	(85)
At December 31	523	788	(266)

Note 14. Provisions for risks and charges

"Provisions for non-current risks and charges" at December 31, 2024 amounted to €269 thousand and refer to the portion accrued during the year in connection with long-term incentive and retention plans for personnel (middle management and key people).

Note 15. Trade and other payables, accrued expense and deferred income

	31.12.2024	31.12.2023	Change
Trade payables	7,516	5,855	1,661
of which Parent Company	155	-	155
of which subsidiaries	3,100	2,449	651
of which related parties	4	2	2
Other current payables	6,974	10,072	(3,098)
of which subsidiaries	2,500	6,069	(3,569)
Current accrued expense and deferred income	381	443	(62)

Trade payables

"Trade payables" amounted to €7,516 thousand, up versus €1,661 thousand at the end of the prior year.

Other current payables

	31.12.2024	31.12.2023	Change
Payables to employees	2,196	2,064	132
Payables to welfare and social security entities	1,403	1,333	70
Other payables	3,375	6,674	(3,299)
Total	6,974	10,072	(3,098)

"Other current payables", amounting to €6,974 thousand at December 31, 2024, is explained below:

• "Payables to employees" for the fixed and variable component of remuneration, for holidays, as well as the related "Payables to welfare and social security entities" regarding social security contributions;
• "Other payables" regards mainly payables to Group companies participating in the "Consolidated VAT" option. The decrease is a result of the lower net turnover recorded in the last quarter by the investees participating in this system.

Note 16. Net financial position

At December 31, 2024, the Net Financial Debt/(Net Financial Position) is broken down as follows:

	31.12.2024	31.12.2023
A. Cash funds	54,486	40,437
B. Cash equivalents	-	-
C. Other current financial assets	309,726	253,126
D. Liquid assets (A) + (B) + (C)	364,212	293,563
E. Current financial debt	115,344	75,005
E1. of which lease payables	304	279
F. Current portion of non-current financial debt	13,938	14,392
G. Current Financial Debt (E) + (F)	129,282	89,397
H. Current Net Financial Debt (Financial Position) (G) - (D)	(234,930)	(204,166)
I. Non-current financial debt	65,827	79,319
I1. of which lease payables	1,170	1,057
J. Debt instruments	-	-
K. Trade and other non-current payables	-	-
L. Non-Current Financial Debt (I) + (J) + (K)	65,827	79,319
M. Total Net Financial Debt/(Net Financial Position) (H) + (L)	(169,103)	(124,847)

The Net Financial Position at December 31, 2024 stood at €169,103 thousand, improving by €44,256 thousand versus the prior year.

At December 31, 2024, the Company had outstanding financial credit lines of approximately €268.0 million, of which approximately €179.0 million committed. Undrawn and readily available financial lines amounted to €189.0 million.

Indirect debt subject to conditions at December 31, 2024 is represented exclusively by the provision for postemployment benefits, amounting to €523 thousand.

INFORMATION ON THE INCOME STATEMENT

Note 17. Revenue

The Company's revenue for the year amounted to €32,137 thousand, down by €355 thousand; revenue consisted of royalties charged to subsidiaries for the use of the Datalogic trademark and billing for intercompany services.

Note 18. Cost of goods sold and operating costs

The following table shows the trends of cost of goods sold and operating costs at December 31, 2024, versus the prior year.

	31.12.2024	31.12.2023	Change
Cost of goods sold	978	1,703	(725)
Operating costs	32,477	29,905	2,572
Research and development expense	918	830	88
Distribution expense	2,026	2,145	(119)
Administrative and general expense	28,762	26,458	2,304
Other operating expense	771	472	299
Total	33,455	31,608	1,847

The Cost of Goods Sold amounted to €978 thousand, down by €725 thousand versus the prior year. Operating costs amounted to €32,477 thousand, up by 8.6% versus the prior year. The breakdown of "Other operating expense" is as follows:

	31.12.2024	31.12.2023	Change
Non-income tax	771	435	336
Other	-	37	(37)
Total	771	472	299

Costs by nature

The following table shows the detail of costs (cost of goods sold and operating costs) by type:

	31.12.2024	31.12.2023	Change
Personnel expense	15,689	15,175	514
Software maintenance and assistance	6,671	6,055	616
Amortisation, depreciation and write-downs	3,371	3,982	(611)
Directors' fees	2,055	1,463	592
Technical, legal and tax consulting	1,619	765	854
Utilities and telephone subscriptions	1,085	1,074	11
Other costs	896	618	278
Stock exchange costs and membership fees	350	355	(5)
Rental and building maintenance	304	282	22
Recruitment costs	292	505	(213)
Travel and accommodation	236	234	2
Audit fees	208	236	(28)
Insurance expense	199	185	14
Advertising and Marketing	144	137	7
Vehicle leasing and maintenance	109	106	3
Expense for personnel training	65	178	(113)
Fees to the Board of Statutory Auditors	60	69	(9)
Entertainment expense	44	74	(30)
Meeting expense	42	33	9
Patents	16	20	(4)
Costs for services provided by subsidiary	0	60	(60)
Total cost of goods sold and operating costs	33,455	31,608	1,847

"Personnel expense" of €15,689 thousand (€15,175 in 2023) increased by €514 thousand versus the prior year. Below are the details:

	31.12.2024	31.12.2023	Change
Wages and salaries	11,440	11,086	354
Social security charges	3,117	3,096	21
Post-employment benefits	312	347	(35)
Retirement benefits and the like	456	434	22
Other costs	364	212	152
Total	15,689	15,175	514

Note 19. Other revenue

	31.12.2024	31.12.2023	Change
Rents	646	643	3
Operating grants	31	43	(12)
Ordinary capital gains	0	1	(1)
Other	138	214	(76)
Total	815	901	(86)

"Other revenue" shows a negative change of €86 thousand.

Note 20. Financials

	31.12.2024	31.12.2023	Change
Financial income (expense)	13,514	10,795	2,719
Foreign exchange differences	(1,828)	1,105	(2,933)
Bank expense	(205)	(182)	(23)
Dividends	13,890	7,121	6,769
Other	16,477	156	16,321
Total net financials	41,848	18,995	22,853

Net financials ended with a positive €41,848 thousand versus €18,995 thousand at December 31, 2023. The change from the comparison year is due mainly to the gain from the sale of the subsidiary Informatics Ltd.

Note 21. Tax

	31.12.2024	31.12.2023	Change
Profit before tax	41,346	20,780	20,566
Income tax	4,308	3,338	969
Deferred tax	(821)	354	(1,175)
Total Tax	3,487	3,693	(206)
Tax rate	8.4%	17.8%	-9.3%

The average tax rate is 8.4% (17.8% at December 31, 2023). The reconciliation for 2024 and 2023 of the nominal tax rate and the actual rate used in the Financial Statements is shown below:

	2024		2023
Profit before tax	41,346		20,780
Nominal tax rate under Italian law	(9,923)	-24.0%	(4,987)	-24.0%
Effects of local tax	(820)	-2.0%	(631)	-3.0%
Effects of intercompany dividend taxation	2,345	5.7%	1,623	7.8%
Tax effects - prior years	12	0.0%	(80)	-0.4%
Other effects	4,901	11.9%	382	1.8%
Actual tax rate	(3,487)	-8.4%	(3,693)	-17.8%

Note 22. Audit fees

In accordance with the provisions of Article 149-duodecis of the Issuer Regulation, implementing Legislative Decree No. 58 of February 24, 1998, the 2024 fees related to the Independent Auditors amounted to €243 thousand.

Note 23. Fees paid to directors and statutory auditors

Reference for this information is made to the remuneration report that will be published pursuant to Article 123-ter of the T.U.F. and made available on www.datalogic.com.

RELATED-PARTY TRANSACTIONS

For the definition of "Related Parties", reference is made not only to IAS 24, approved by EC Regulation no. 1725/2003, but also to the Procedure for Related-Party Transactions approved by the Board of Directors on November 4, 2010 (most recently amended on June 23, 2021) available on the Company website www.datalogic.com. The Company's parent is Hydra S.p.A.. Related-party transactions are conducted in the ordinary course of business and at normal market conditions. Additionally, there are related-party transactions carried out again in the ordinary course of business and at normal market conditions, of an immaterial amount pursuant to and in accordance with the "RPT Procedure", attributable mainly to Hydra S.p.A. or to entities subject (with Datalogic S.p.A.) to common control or to persons exercising administrative and management functions at Datalogic S.p.A. (including entities controlled by them and close family members).

Related-party transactions refer mainly refer to commercial and property transactions (instrumental and noninstrumental premises for the Company leased or rented out), consulting services, and participation in tax consolidation. None of them are of particular economic or strategic importance to the Company, since receivables, payables, revenue, and expense from related parties do not have a material percentage impact on the total amounts of the financial statements. Pursuant to Article 5, paragraph 8 of the CONSOB Regulations, in 2024, the Company's Board of Directors did not approve any transactions of greater significance as defined by Article 3, paragraph 1, letter b) of the CONSOB Regulations, nor any other related-party transactions of minor significance that materially affected the Company's financial position or results.

	Hydra Immobiliare S.n.c.	Datalogic S.r.l.	Subsidiaries of Datalogic S.r.l.	Real Estate Group Companies	Parent Company	Datalogic IP Tech S.r.l.	31.12.2024
Receivables	1	219,517	34,070	150	155	73,822	327,715
Trade receivables	1	14,179	2,169	150	155	1,073	17,727
Receivables from tax consolidation			262				262
Financial receivables from cash pooling		6,838	11,662			32,749	51,249
Loans to subsidiaries		198,500	19,977			40,000	258,477
Payables	4	3,919	114,767	2,841	155	9,287	130,973
Payables from tax consolidation		918				9,256	10,174
Payables from VAT tax consolidation		1,834	554				2,388
Other payables		61	21			29	111
Trade payables	4	1,106	1,975	18	155	2	3,259
Financial payables			112,216	2,824			115,040
Costs	(62)	(4,642)	(4,973)	(82)	-	47	(9,713)
Commercial/service costs	(62)		197				135
Other operating expense		270	188	0	-	47	505
Financial expense		(4,913)	(5,359)	(82)			(10,353)
Revenue	-	47,342	6,156	80	-	3,650	57,228
Trade revenue		28,363	940	80		2,754	32,137
Other revenue		584				58	643
Financial income		18,394	5,216			838	24,448

ALLOCATION OF PROFIT FOR THE YEAR

Shareholders,

given that the Financial Statements of Datalogic S.p.A. show a net profit for the year of €37,858,740, and since the legal reserve has reached one-fifth of the share capital pursuant to Article 2430 of the Italian Civil Code, the Board of Directors proposes the distribution to the Shareholders of an ordinary unit dividend, gross of tax, of 12 Euro cents per share, for a maximum total amount of €6,437,579, drawing from profit for the year, with ex-dividend date of July 14, 2025 (record date July 15, 2025) and payment starting on July 16, 2025, and to allocate the remainder of profit for the year to the retained earnings reserve.

The Chairman of the Board of Directors

(Romano Volta)

Statutory Annual Financial Report at December 31, 2024

DATALOGIC S.p.A. 49

ANNEX 1

Certification of the Financial Statements pursuant to Article 81-ter of CONSOB Regulation no. 11971 of 14 May 1999 as subsequently amended and supplemented

1. The undersigned Valentina Volta, as CEO, and Alessandro D'Aniello, as Manager responsible for the preparation of the financial reports of Datalogic S.p.A., certify, also taking account of the provisions of Article 154-bis, paragraphs 3 and 4, of Legislative Decree no. 58 of February 24, 1998:

2. the adequacy of the characteristics of the Company and

3. the actual application

of the administrative and accounting procedures in preparing the 2024 financial statements.

1. The assessment on the adequacy of the administrative and accounting procedures for the formation of the financial statements as of December 31, 2024 is based on a procedure defined by Datalogic S.p.A. in compliance with the Internal Control – Integrated Framework model, issued by the Committee of Sponsoring Organizations of the Treadway Commission, which is the reference framework generally accepted at international level.

2. Moreover, the following is certified:

3.1 the Financial Statements:

• a) were prepared in accordance with the International Financial Reporting Standards endorsed by the European Union pursuant to EC Regulation no. 1606/2002 of the European Parliament and Council of 19 July 2002;
• b) are consistent with the accounting records and books;
• c) provide a true and fair view of the financial position, the results of operations and the cash flows of the Issuer;

3.2 the Report on Operations contains a reliable analysis on performance and the results of operations, as well as of the position of the Issuer, together with a description of the main risks and uncertainties it is exposed to.

Lippo di Calderara di Reno (BO), March 20, 2025

CEO Manager responsible for the preparation of the Company's financial reports

Valentina Volta Alessandro D'Aniello

ANNEX 2

LIST OF INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES AT DECEMBER 31, 2024

Company name	Registered office	Currency	Share capital in local currency	Equity^	Pro-rata Equity^	Profit/(loss) for the year^	% owned	Carrying amount^	Difference
Datalogic S.r.l.	Bologna - Italy	EUR	10,000,000	122,168	122,168	(4,198)	100%	151,831	(29,663)
Datalogic Real Estate France Sas	Courtabeuf Cedex – France	EUR	2,227,500	4,228	4,228	161	100%	3,919	309
Datalogic Real Estate UK Ltd.	Redbourn - United Kingdom	GBP	3,500,000	5,028	5,028	64	100%	3,668	1,360
Datalogic IP Tech S.r.l.	Bologna - Italy	EUR	100,000	49,642	16,382	(19,998)	33%	18,095	6,726
Total subsidiaries								177,513	(36,274)
CAEN RFID S.r.l*	Viareggio Lu - Italy	EUR	310,000	960	192	19	20%	582	(390)
R4I S.r.l.*	Benevento - Italy	EUR	131,171	254	51	(40)	20%	150	(99)
Total associates								732	(489)
Nomisma S.p.A.	Bologna - Italy	EUR					0.0%	7	0
Conai								0	n.a.
Caaf Ind. Emilia Romagna	Bologna - Italy	EUR					1.0%	4	(4)
T3 LAB Consortium								7	(7)
Crit S.r.l.	Modena - Italy	EUR					0.0%	52	(52)
IDEC Corporation	Osaka - Japan	YEN					0.0%	81	n.a.
Mandarin III	Luxembourg	EUR						1,831	n.a.
Consorzio Esperienza Energia Scrl	Bologna - Italy	EUR						0
Total other companies								1,983	(63)

* at 31.12.2023

^ amounts in Euro thousands

Statutory Annual Financial Report at December 31, 2024

DATALOGIC S.p.A. 52