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Datalogic — Call Transcript 2015
Jul 30, 2015
4452_rns_2015-07-30_bbaf6a51-91bc-4bbd-9211-defe753c4dc3.pdf
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1H 2015 Conference Call
July 30th, 2015
Agenda
1H 2015
Outlook
Highlights 2Q 2015
- Revenues up 16.7% to 135.2 mln Euro (+6.1% at constant exchange rate) thanks to growth in European and Asia Pacific markets
- New products* accounted for 26.4% of quarterly revenues
- EBITDA margin at 13.8% impacted by Forex effect
- Strong reduction of financial costs due to Q1 refinancing
- Recover at net profit level: net profit up 39.4% to 11.6 mln Euro
| €000 | 2Q2015 | 2Q2014 | YoY% | 1Q2015 | QoQ % |
|---|---|---|---|---|---|
| Revenues | 135,169 | 115,782 | 16.7% | 122,316 | 10.5% |
| Gross Operating Profit | 62,687 | 56,458 | 11.0% | 57,099 | 9.8% |
| EBITDA | 18,636 | 18,688 | (0.3%) | 15,690 | 18.8% |
| EBIT | 13,900 | 12,165 | 14.3% | 10,785 | 28.9% |
| Net Profit | 11,558 | 8,293 | 39.4% | 9,893 | 16.8% |
* New products are products launched in the last 24 months
2Q 2015 New Products: ADC
Magellan 9400i and Magellan 9300i scanners
Equipped with digital imager technology in all planes, read both 1D and 2D bar codes.
Available with a dedicated Customer Service Scanner (CSS) for reading cell phones, coupons and loyalty cards.
Entry level wireless scanners for linear bar code scanning applications with QuickScan product family look.
The QuickScan QBT2131 reader employs Bluetooth® Wireless Technology.
2Q 2015 New Products:IA
Identification: XRF410N
The XRF410N, named for its eXtended Reading Field, is a solution based on the new Matrix 410N platform for material handling and sortation in the logistics industry.
Machine Vision: MX-U Series
New line of Vision Processors powered by IMPACT Software, available in three different models.
It features the state of the art USB 3.0 connectivity.
Identification: Matrix 210N
Ultra-compact 2D imager
- 60 frames per second @ WVGA resolution
- Electronic focus control
- Embedded multi-source illuminator for optimized DPM reading
- Embedded Ethernet, EtherNet/IP, industrial PROFINET
Identification: DS8110 and DX8210
DS8110 is the new laser bar code reader offering top class reading performance at any operative conditions.
DX8210 offers an ALL-IN-ONE solution for omnidirectional reading stations.
.
Highlights 1H 2015
- Revenues growth driven by ADC in Europe, North America and fast growing markets thanks to robust investments by retailers and the launch of technologically advanced products
- Signs of recovery of Industrial Automation in Europe and APAC while North America still affected by the BU Systems
- Order from Royal Mail to implement a new Parcel Sorting System in UK. The total value of the deal is around 29 mln Euro.
- Investment in R&D continues to be crucial for the development of the Group
- EBITDA margin affected by forex
- Strong improvement of financial costs thanks to a cheaper financing contract
- Robust growth of net income
| 000€ | 1H2015 | 1H2014 | Var % |
||
|---|---|---|---|---|---|
| Revenues | 257,485 | 100.0% | 224,028 | 100.0% | 14.9% |
| COGS | (137,699) | (53.5%) | (114,950) | (51.3%) | |
| Gross Operating Margin | 119,786 | 46.5% | 109,078 | 48.7% | 9.8% |
| Other revenues | 1,209 | 0.5% | 760 | 0.3% | |
| R&D | (23,449) | (9.1%) | (19,848) | (8.9%) | |
| Distribution Costs | (48,479) | (18.8%) | (40,350) | (18.0%) | |
| Administrative expenses | (19,691) | (7.6%) | (19,961) | (8.9%) | |
| Other operating expenses | (1,042) | (0.4%) | (1,058) | (0.5%) | |
| Total operating expenses and others | (92,661) | (36.0%) | (81,217) | (36.3%) | 14.1% |
| Non recurring costs/rev | (750) | (0.3%) | (2,392) | (1.1%) | |
| Amort. Intang. Assets from acquis. | (2,899) | (1.1%) | (2,775) | (1.2%) | |
| Operating Profit (EBIT) | 24,685 | 9.6% | 23,454 | 10.5% | 5.2% |
| Financial (costs)/rev. | (3,162) | (1.2%) | (4,835) | (2.2%) | |
| Results from equity investments | 97 | 0.0% | (58) | 0.0% | |
| Foreign exchange (costs)/rev. | 3,390 | 1.3% | 203 | 0.1% | |
| EBT | 25,010 | 9.7% | 18,764 | 8.4% | 33.3% |
| Taxes | (3,559) | (1.4%) | (3,520) | (1.6%) | |
| Net Income | 21,451 | 8.3% | 15,244 | 6.8% | 40.7% |
| Depreciation | (3,694) | (1.4%) | (3,471) | (1.5%) | |
| Amortization | (2,298) | (0.9%) | (2,061) | (0.9%) | |
| EBITDA | 34,326 | 13.3% | 34,153 | 15.2% | 0.5% |
| Exchange rate | 1.1158 | 1.3703 |
Revenues Trend by Division
- ADC Division continues to be the driver of the growth in all the reference markets (+19.0%, +8.8% at constant exchange rate).
- Strong contribution of the new products launched like Falcon X3+ mobile and PowerScan 9500 mobile
- The Industrial Automation division up +6.2% (-0.9% at constant exchange rates) but net of the result of the Systems Business Unit, the division's revenue increased by 11.0% (+4.6% at constant exchange rates)
- Improved trend of sales of new products based on imaging technology for the logistics and factory automation sectors
REVENUES BY DIVISION (%)
| REVENUES BY DIVISION | ||||
|---|---|---|---|---|
| €mln | 1H2015 | 1H2014 | Var % |
|
| ADC | 177.4 | 149.1 | 19.0% | |
| IA | 66.6 | 62.7 | 6.2% | |
| - IA excluding BU Systems |
60.4 | 54.4 | 11.0% | |
| Informatics | 14.5 | 13.1 | 10.7% | |
| Corporate and Adjustments | (1.0) | (0.8) | n.m. | |
| Total revenues | 257.5 | 224.0 | 14.9% |
Revenues Trend by Country
| REVENUES BY GEOGRAPHIC AREA | ||||
|---|---|---|---|---|
| €000 | 1H2015 | 1H2014 | Var % |
|
| Europe | 131,976 | 117,680 | 12.1% | |
| North America | 74,750 | 64,605 | 15.7% | |
| Asia Pacific | 33,828 | 26,001 | 30.1% | |
| ROW | 16,931 | 15,742 | 7.6% | |
| Total Revenues |
257,485 | 224,028 | 14.9% |
- Europe continues to be the driver with a double digit growth both in in ADC and IA
- North America: good recovery of ADC driven by Retail with large orders in HHS e FRS (+8% at constant exchange rate) while IA still suffering mainly due to cyclical trend of Postal segment
- Positive booking in North America at 86.1 mln Euro
- Expansion in Asia Pacific continues with the launch of dedicated products
- Focus on Greater China up 50.5% (33.2% at constant exchange rate), with ADC sales almost doubled
- ROW driven by South Africa and Arab Emirates
1H Segment Reporting: GOP and EBITDA
Gross Operating Margin 1H2015 1H2014 ADC 48.6% 51.0% Industrial Automation 42.0% 43.4% Informatics 44.8% 45.1% Total Group 46.5% 48.7%
| EBITDA Margin | 1H2015 | 1H2014 | |
|---|---|---|---|
| ADC | 20.5% | 20.6% | |
| Industrial Automation | 1.0% | 3.0% | |
| Informatics | 0.8% | 6.2% | |
| Total Group | 13.3% | 15.2% |
1H Segment Reporting: R&D and TWC
1H2014 1H2015
| R&D/Revenues | 1H2015 | 1H2014 |
|---|---|---|
| ADC | 8.7% | 9.4% |
| Industrial Automation | 12.7% | 11.5% |
| Informatics | 3.9% | 2.9% |
| Total Group | 9.1% | 8.9% |
| TWC/Annualized Revenues |
1H2015 | 1H2014 |
|---|---|---|
| ADC | 10.7% | 10.1% |
| Industrial Automation | 12.8% | 19.2% |
| Informatics | 10.4% | 15.3% |
| Total Group | 12.3% | 10.5% |
EBITDA: Actual vs Last Year
The variance was the result of the difference between June '15 Actual (1.1158) and June '14 Actual (1.3703) €/USD exchange rate
Consolidated Balance Sheet at 30.06.2015
€mln
TOTAL ASSETS EQUITY AND LIABILITIES
Outlook
Outlook for 2015
- H1 results confirm the positive trend of the Group in the European Market
- Positive trend in revenue booking in H1 at 271.5 mln Euro, +16.8% compared to the same period of 2014.
- In H2 2015 growth in the European and Asian markets and a market recovery in the United States is expected
- The Industrial Automation division would enjoy the benefit of revenue from projects in the Transportation, Logistics and Postal segments (contribution of Royal Mail Order) as well as the Factory Automation sector thanks to the launching of new top of the range products in Q3
- Strong investments in innovation continue, expected at over 9% on revenues
Contacts
IR CONTACTS
CFO and IR Manager Sergio Borgheresi E-mail [email protected]
IR Assistant Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail [email protected]
Via Candini, 2 40012 Lippo di Calderara di Reno Bologna – Italy
IR Consultant Vincenza Colucci CDR Communication Srl Tel. +39 335 6909547 [email protected] www.datalogic.com
NEXT EVENTS
Star Conference London, 5-6th October 2015
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This presentation contains statements that are neither reported financial results nor other historical information. These statements are forwardlooking statements. These forward-looking statements rely on a number of assumptions and are subject to a number of risks and uncertainties, many of which are outside the control of Datalogic S.p.A., that could cause actual results to differ materially from those expressed in or implied by such statements, such as future market conditions, currency fluctuations, the behavior of other market participants and the actions of governmental and state regulators
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Datalogic S.p.A. Via Candini, 2 40012 Lippo di Calderara di Reno Bologna – Italy Tel. +39 051 3147011 Fax +39 051 3147205 E-mail [email protected]