Consolidated Half-Year Financial Report June 30, 2021

GROUP STRUCTURE	page 3
COMPOSITION OF CORPORATE BODIES	page 4
REPORT ON OPERATIONS	page 5
CONSOLIDATED FINANCIAL STATEMENTS	page 19
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flow
Changes in Consolidated Shareholders' Equity

EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS page 26

Information on the Statement of Financial Position

Information on the Income Statement

ANNEXES

Certification by the Manager in charge of drawing up the Company's accounting statements
Consolidation Area
Restatement of Segment Disclosure
Reconciliation of Alternative Performance Indicators

DISCLAIMER

This document includes forward‐looking statements, related to future events and Group operating, economic and financial results. These statements include risk and uncertainty elements as they depend on the occurrence of events and future developments. The actual results may deviate, even to a significant extent, from the expected outcome due to multiple factors, most of which are beyond the Group's control.

GROUP STRUCTURE

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 Roberto Pisa Independent Director

Board of Statutory Auditors (3)

Salvatore Fiorenza Chairman Elena Lancellotti Statutory Auditor Roberto Santagostino Statutory Auditor

Ines Gandini Alternate Statutory Auditor Eugenio Burani Alternate Statutory Auditor Patrizia Cornale Alternate Statutory Auditor

Audit and Risk, Remuneration and Appointments Committee

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

Independent Auditor (4)

Deloitte & Touche S.p.A.

(1) The Board of Directors will remain in office until the Shareholders' Meeting held for the approval of the financial statements as at 31 December 2023.

(2) Legal representative as regards third parties.

(3) The Board of Statutory Auditors will remain in office until the Shareholders' Meeting held for the approval of the financial statements as at 31 December 2021.
(4) Deloitte & Touche S.p.A. was appointed Independent Auditor for the nine‐year period from 2019 to 2027 by the Shareholders' Meeting held on 30 April 2019 and will remain in office until the Shareholders' Meeting held for the approval of the financial statements as at 31 December 2027.

Report on Operations

REPORT ON OPERATIONS

INTRODUCTION

This Consolidated Half‐Year Financial Report as at 30 June 2021 was drawn up pursuant to Art. 154 of Consolidated Law on Finance (T.U.F.) and was prepared in compliance with the international accounting standards (IAS/IFRS) endorsed by the European Union.

The amounts reported in the tables of the Report on Operations are expressed in thousands of Euro. The notes to the accounts are expressed in millions of Euro.

GROUP PROFILE

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

HIGHLIGHTS OF THE PERIOD

The following table summarises the Datalogic Group's key operating and financial results as at 30 June 2021 in comparison with the same period a year earlier.

The income statement and balance sheet data as at 30 June 2021 include the balances of the MD Group consolidated from 1 March 2021.

		Half year ended
	30.06.2021	% on Revenues	30.06.2020	% on Revenues	Change	% change	% ch. net FX

Revenues	292,010	100.0%	230,414	100.0%	61,596	26.7%	31.2%
Adjusted EBITDA	46,840	16.0%	18,365	8.0%	28,475	155.1%	142.3%
EBIT	28,216	9.7%	334	0.1%	27,882	8,347.9%	7,472.1%
Profit/(Loss) for the period	23,534	8.1%	(13)	0.0%	23,547	n.a.	n.a.
Net financial position (NFP)	(18,198)		(15,383)		(2,815)

As at 30 June 2021, the Group reported Revenues at €292.0 million, increasing by €61.6 million, 26.7% (31.2% at constant exchange rates) higher than the €230.4 million recorded in the first half of 2020. Organic growth (net of the exchange rate effect and of the acquisition of the MD Group) in the first half of the year was 26.3%, showing signs of consolidation of the post‐Covid 19 economic recovery in all geographic areas, and gaining more than ten percentage points sequentially compared to the first quarter of the year.

Despite the inflationary trends, progressively more marked in the second half of the semester, operating margins consolidated, closing on 30 June 2021 with an Adjusted EBITDA of €46.8 million and an Adjusted EBITDA margin of 16.0% (8.0% at 30 June 2020).

Net profit at €23.5 million (8.1% of revenues) marked the Group's gradual return to pre‐pandemic results, after the break‐even result of the first half of 2020.

Thanks to solid cash generation in the semester, the Group closed the 30 June 2021 with a Net Financial Debt of €18.2 million. Net of the acquisition of the MD Group, which generated a financial outlay of €35.0 million, the net financial position of the Group would have been a positive €16.8 million. In the first half of 2020, the Group's NFP was a negative €15.4 million, while at 31 December 2020 it was a positive €8.2 million.

ALTERNATIVE PERFORMANCE INDICATORS (NON-GAAP MEASURES)

The management uses certain performance indicators, not identified as accounting measures under IFRS (NON‐GAAP measures), to permit better assessment of the Group's performance. The measurement criterion applied by the Group might not be the same asthat adopted by other groups and the indicators might not be comparable with theirindicators. These performance indicators, in accordance with the provisions in the Guidelines on Alternative 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 accounting period that is the object of this Consolidated Half‐Year Financial Report and the periods it is compared to. The performance indicators must be considered as supplementary and do not supersede the information provided pursuant to the IFRS standards. The main indicators adopted are described below.

EBIT (Earnings Before Interest, Taxes): this indicator is defined as Profit/Loss for the period from continuing operations before financial expenses and income (including foreign exchange gains and losses and profits and losses from associated companies) and income taxes.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation): this indicator is defined as Profit/Loss for the period from continuing operations before depreciation and amortisation of tangible and intangible assets and rights of use, financial income and expenses(including foreign exchange gains and losses and profits and losses from associated companies) and the income taxes.
Adjusted EBITDA: this indicator is defined as Profit/Loss for the period from continuing operations before depreciation and amortisation of tangible and intangible assets and rights of use, financial income and expenses (including foreign exchange gains and losses and profits and losses from associated companies) and income taxes, as well as costs and revenues considered by the Management as non‐recurring (see Annex 4).
Net Trade Working Capital: this indicator is calculated as the sum of Inventories and Trade Receivables, less Trade Payables.
Net Working Capital: this indicator is calculated as the sum of Net Trade Working Capital and Other Current Assets and Liabilities including short‐term Provisions for Risks and Charges.
Net Invested Capital: this indicator is 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): this indicator is calculated in accordance with the provisions of "Consob Notice no. 5/21" of 29 April 2021.
Free Cash Flow: thisindicator is calculated asthe cash flow from operating activities, net of investmentsin tangible and intangible assets (excluding right‐of‐use assets recognised over the period in accordance with IFRS 16) and financial and tax income and expenses for operating activities.

GROUP RECLASSIFIED ECONOMIC RESULTS

The following table showsthe main economic components of the period compared with the same period of the previous year:

	Half year ended
	30.06.2021		30.06.2020		Change	% change
Revenues	292,010	100.0%	230,414	100.0%	61,596	26.7%
Cost of goods sold	(158,319)	‐54.2%	(124,535)	‐54.0%	(33,784)	27.1%
Gross Operating Margin	133,691	45.8%	105,879	46.0%	27,812	26.3%
Research and Development expenses	(28,130)	‐9.6%	(29,162)	‐12.7%	1,032	‐3.5%
Distribution expenses	(47,937)	‐16.4%	(51,136)	‐22.2%	3,199	‐6.3%
General and administrative expenses	(23,562)	‐8.1%	(20,818)	‐9.0%	(2,744)	13.2%
Other operating (expenses)/income	(669)	‐0.2%	1,633	0.7%	(2,302)	n.a.
Total operating expenses and other charges	(100,298)	-34.3%	(99,483)	-43.2%	(815)	0.8%
Non‐recurring costs and revenues	(3,212)	‐1.1%	(3,595)	‐1.6%	383	‐10.7%
Amortisation and depreciation from acquisitions	(1,965)	‐0.7%	(2,467)	‐1.1%	502	‐20.3%
EBIT	28,216	9.7%	334	0.1%	27,882	8347.9%
Financial Income/(Expenses)	(1,334)	‐0.5%	(1,980)	‐0.9%	646	‐32.6%
Foreign exchange gains/(losses)	977	0.3%	(3,178)	‐1.4%	4,155	n.a.
EBT	27,859	9.5%	(4,824)	-2.1%	32,683	n.a.
Taxes	(4,325)	‐1.5%	4,345	1.9%	(8,670)	n.a.
Net Profit/(Loss) for the period from continuing operations	23,534	8.1%	(479)	-0.2%	24,013	n.a.
Net Profit/(Loss) for the period from discontinued operations	-		466	0.2%	(466)	-100.0%
Profit/(Loss) for the period	23,534	8.1%	(13)	0.0%	23,547	n.a.
Non‐recurring costs and revenues	(3,212)	‐1.1%	(3,595)	‐1.6%	383	‐10.7%
Depreciation of tangible assets and rights of use	(8,393)	‐2.9%	(8,898)	‐3.9%	505	‐5.7%
Amortisation of intangible assets	(7,019)	‐2.4%	(5,538)	‐2.4%	(1,481)	26.7%
Adjusted EBITDA	46,840	16.0%	18,365	8.0%	28,475	155.1%

Consolidated revenues, amounting to €292.0 million, as at 30 June 2021 recorded overall growth of 26.7% (+ 31.2% net of the exchange rate effect and + 26.3% at organic level) compared to €230.4 million achieved in the first half of 2020, with double‐digit performance in all geographic areas.

The following table showsthe breakdown by geographic area of Group revenues achieved as at 30 June 2021, compared to the same period of the previous year:

	Half year ended
	30.06.2021	%	30.06.2020	%	Change	% change	% ch. net
			Restated				FX
Italy	29,121	10.0%	20,928	9.1%	8,193	39.1%	39.2%
EMEAI (excluding Italy)	133,698	45.8%	97,909	42.5%	35,789	36.6%	37.9%
Total EMEAI	162,819	55.8%	118,837	51.6%	43,982	37.0%	38.1%
Americas	85,637	29.3%	76,348	33.1%	9,289	12.2%	22.5%
APAC	43,555	14.9%	35,230	15.3%	8,325	23.6%	26.9%
Total Revenues	292,010	100.0%	230,414	100.0%	61,596	26.7%	31.2%

The EMEAI region closed the first half of the year with an increase in revenues of 37.0% (+38.1% net of the exchange rate effect and +30.4% organic) compared to 30 June 2020. For the third consecutive quarter, Italy confirmed a very positive performance with double‐digit growth, followed by Benelux and Spain. In the other countries of the area, the first half of 2021 saw solid and widespread growth with better trends in the DACH and Eastern Europe areas.

Americas, the Group's second market, began to record strong signs of recovery after the pandemic in the second half of the period, achieving a 22.5% growth at constant exchange rates. Double‐digit growth was recorded in the main regions of the market, most marked in Latin America, where the acceleration of the economic recovery was less intense in the first part of the year.

APAC grew by 23.6% (+ 26.9% at constant exchange rates) compared to the first half of 2020, thanks to China, the Group's largest market in the area, but with growth trends of more than thirty percentage points also in Japan and Korea.

Gross Operating Margin, equal to €133.7 million, with an incidence on turnover of 45.8% (46.0% at 30 June 2020), was affected by the inflationary effects resulting from the shortage of critical materials and logistics expenses not entirely offset by pricing and productivity in this phase of fast economic recovery after the pandemic.

Operating expenses and other charges, amounting to €100.3 million, were essentially stable compared to €99.5 million recorded in the first half of 2020. The operating expenses cost control strategy defined in 2020 in response to the changed macroeconomic scenario enabled the Group to achieve both structural and temporary efficiencies, which allowed it to invest resources more selectively in strategic activities, continuing to support growth, especially in the economic recovery phase. This plan, associated with the recovery in volumes, contributed to the 8.9% improvement in the incidence of operating expenses, whose impact on turnover improved from 43.2% to 34.3%.

Research and Development expenses at €28.1 million (€29.2 million at 30 June 2020), with an incidence on Revenues of 9.6%, compared to the 12.7% of the first half the previous year, thanks to a strategy of selectivity on investments and the conclusion of major product development projects in the mobile segment. Total Research and Development costs, including capital expenditures, amounted to €29.3 million, €4.9 million lower compared to the same period of 2020, reaching 10.0% on Revenues compared to the 14.8% of the previous period, with a decrease of 4.8 percentage points.

Distribution expenses amounted to €47.9 million, decreased by 6.3% compared to the first half of 2020 (€51.1 million in 2020), with an incidence on revenues of 16.4% compared to 22.2% as at 30 June 2020, thanks to the efficiencies achieved on sales, distribution and marketing costs and as a result of the new sales organisation model as well as the postponement of commercial events and trade fairs that were still limited, at least for most of the first half of 2021, by the restrictive Covid measures.

Adjusted EBITDA amounted to €46.8 million, an increase of €28.5 million compared to the first half of 2020. The Adjusted EBITDA margin as at 30 June 2021 was 16.0% compared to 8.0% recorded in the same period of the previous year, increased for the fourth consecutive quarter, returning to pre‐Covid‐19 levels thanks to the recovery of volumes, which allowed the partial offsetting of pricing and inflation effects caused by the shortage of materials in a recovering but still complex market.

EBIT was €28.2 million, 9.7% on revenues, confirming return to pre‐pandemic levels.

Net financial charges, negative for €0.4 million, recorded an improvement of €4.8 million compared to the first half of last year, when were impacted by the negative effects of foreign exchange rate differences and by the performance of financial markets, which penalised the fair values of cash investments.

		Half year ended
	30.06.2021	30.06.2020	Change
Net Financial Income/(Expenses)	(908)	(1,103)	195
Foreign exchange gains/losses	977	(3,179)	4,156
Investment Fair Value	102	(672)	774
Bank expenses	(608)	(423)	(185)
Dividends	114	84	30
Others	(34)	135	(169)
Total Net Financial Income/(Expenses)	(357)	(5,158)	4,801

Net profit for the period was €23.5 million, equal to 8.1% of Revenues, while in the first half of 2020 the Group broke even.

GROUP ECONOMIC RESULTS BY DIVISION FOR THE PERIOD

Operating segments are identified based on the management reporting used by senior management to allocate resources and evaluate results. The operating segments are indicated below:

Datalogic represents the Group's core business and designs and produces bar code scanners, mobile computers, detection, measurement and security sensors, vision and laser marking and RFID systems that contribute to increase the efficiency and quality of processes in the areas of Retail, Manufacturing, Transportation & Logistics and Healthcare, along the entire value chain. As described in the Explanatory Notes, M.D. Micro Detectors S.p.A. and its subsidiaries, operating in the design, production and sale of industrial sensors, have been included in this operating segment.
Informatics sells and distributes products and solutions for the management of inventories and mobile assets tailored to small and medium‐sized companies.

The following tables compare the divisional Revenues and Adjusted EBITDA achieved in the first half of 2021 compared with the same period of the previous year:

Half year ended
	30.06.2021	%	30.06.2020	%	Change	%	% ch. net FX
Datalogic	283,460	97.1%	223,184	96.9%	60,276	27.0%	31.3%
Informatics	8,978	3.1%	7,864	3.4%	1,114	14.2%	23.9%
Adjustments	(428)	‐0.1%	(634)	‐0.3%	206
Total Revenues	292,010	100.0%	230,414	100.0%	61,596	26.7%	31.2%

REVENUES BY DIVISION

		Half year ended
	30.06.2021	% on revenues	30.06.2020	% on revenues	Change	%
Datalogic	45,565	16.1%	18,411	8.2%	27,154	147.5%
Informatics	1,258	14.0%	(81)	‐1.0%	1,339	n.a.
Adjustments	17		35		(18)
Total Adjusted EBITDA	46,840	16.0%	18,365	8.0%	28,475	155.1%

EBITDA BY DIVISION

DATALOGIC DIVISION

As at 30 June 2021, the Datalogic division recorded €283.5 million Revenues, increasing by 27.0% compared to 30 June 2020 (+ 31.3% at constant exchange rates). The Adjusted EBITDA of the division was €45.6 million, 16.1% on Revenues (8.2% as at 30 June 2020). Below is the breakdown by business sector of the Datalogic Division's revenues:

Half year ended
	30.06.2021	%	30.06.2020	%	Change	%	% ch.
			Restated				net FX
Retail	101,769	35.9%	98,903	44.3%	2,866	2.9%	7.2%
Manufacturing	76,206	26.9%	54,689	24.5%	21,518	39.3%	42.3%
Transportation & Logistics	39,099	13.8%	22,278	10.0%	16,821	75.5%	82.2%
Healthcare	7,966	2.8%	6,974	3.1%	992	14.3%	19.5%
Channel	58,420	20.6%	40,341	18.1%	18,079	44.8%	49.3%
Total Revenues	283,460	100%	223,184	100.0%	60,276	27.0%	31.3%

Retail

The Retail sector, the main segment for the Group with 35.9% of divisional turnover (44.3% as at 30 June 2020), recorded a slight increase of 2.9% compared to the same period of 2020, penalised by the exchange rate effect (+7.2% at constant exchange rates). The segment recorded double‐digit growth in APAC (+26.5% at constant exchange rates) and 10.6% (+12.0% at constant exchange rates) in EMEAI. In this segment, the food sector, less impacted by the contraction in demand due to Covid, saw a greater acceleration of the recovery compared to the non‐food sector, to which the Group is less exposed.

Manufacturing

The Manufacturing sector grew by 39.3% (42.3% at constant exchange rates, +28.3% at organic level), with a very positive trend in all geographical areas: EMEAI +52.4% (+53.4% at constant exchange rates), Americas +35.1% (+46.8% at constant exchange rates), APAC +18.2% (+21.6% at constant exchange rates) driven by the recovery of investments in the Automotive sector followed by Packaging. MD Microdetectors contributed around 14.0% of the sector's growth in the semester.

Transportation & Logistics

The Transportation & Logistics sector closed the first quarter of the year with an overall growth of 75.5% (+82.2% at constant exchange rates) compared to the first quarter of 2020, with double‐digit increases in all areas, particularly in EMEAI and APAC, thanks to the Courier Express Parcel and Logistics and Airport segments, where the Group was awarded new projects.

Healthcare

The Healthcare sector continued its positive and progressive growth trend, recording an increase of +14.3% compared to the first half of 2020 (+19.5% at constant exchange rates) with positive trends especially in EMEAI and APAC in the hospital sectors, thanks to the anti‐microbial and disinfectant ready solutions, and to pharmaceutical distribution.

Channel

Sales through the distribution channel to small and medium‐sized customers benefited from the post‐pandemic economic recovery with an increase of 44.8% (49.3% at constant exchange rates) compared to the first half of 2020, with an excellent performance in EMEAI (+58.2%), followed by the Americas (+50.4%).

INFORMATICS DIVISION

The Informatics Division achieved turnover of €9.0 million in the first half of 2021 (€7.9 million as at 30 June 2020), an increase of 14.2% compared to the same period of the previous year (+23.9% at constant exchange rates). The Adjusted EBITDA margin was 14.0%, compared to the negative ‐1.0% of the first half of 2020. The division was able to take advantage of the first signs of recovery in the American market, continuing the positive performance already begun in the fourth quarter of 2020. The overall increase in volumes and a mix that sees growth in particular in the services segment (SaaS), that, combined with operating efficiencies, led to a gradual improvement in the division's profitability.

GROUP RECLASSIFIED ECONOMIC RESULTS FOR THE SECOND QUARTER

The following table summarises the Datalogic Group's key operating and financial results of the second quarter of 2021 in comparison with the same quarter of the previous year:

	2Q 2021	% on	2Q 2020	% on	Change	%	% ch.
		Revenues		Revenues		change	net FX
Revenues	156,597	100.0%	111,226	100.0%	45,371	40.8%	46.0%
Adjusted EBITDA	25,238	16.1%	11,144	10.0%	14,094	126.5%	119.4%
Operating result (EBIT)	15,152	9.7%	1,628	1.5%	13,524	830.5%	762.8%
Profit/(Loss) for the period	14,505	9.3%	4,252	3.8%	10,253	241.1%	215.1%

In the second quarter of 2021, Revenuesincreased by €45.4 million, equal to 40.8% (+38.5% at organic level, and +46.0% net of the exchange rate effect), totalling €156.6 million.

The following table shows the breakdown by geographic area of Group revenues achieved in the second quarter of 2021, compared with the same quarter of 2020:

	2Q 2021	%	2Q 2020	%	Change	%
			Restated				% ch. net FX
Italy	15,071	9.6%	9,172	8.2%	5,900	64.3%	64.3%
EMEAI (excluding Italy)	66,363	42.4%	38,407	34.5%	27,956	72.8%	74.4%
Total EMEAI	81,435	52.0%	47,579	42.8%	33,856	71.2%	72.5%
Americas	49,625	31.7%	41,561	37.4%	8,064	19.4%	30.5%
APAC	25,536	16.3%	22,087	19.9%	3,450	15.6%	17.9%
Total Revenues	156,597	100.0%	111,226	100.0%	45,370	40.8%	46.0%

The region that achieved the best performance, even higher than the pre‐pandemic scenario, was EMEAI, which achieved growth of +71.2% (+53.8% net of the contribution of the MD acquisition) in the second quarter of 2021. Excellent signs of recovery also for the Americas, which achieved organic growth of 30.5%, followed by APAC which, net of the exchange rate effect, recorded an increase of 17.9%.

Adjusted EBITDA, equal to €25.2 million (16.1% of revenues), recovered by more than six percentage points compared to the same quarter of the previous year when it reached an incidence on turnover of 10.0%. The higher volumes and structural efficiencies achieved in 2020 protected operating margins, despite the increase of inflationary effects.

The Net Profit for the quarter of €14.5 million (9.3% of turnover), recorded in the second quarter of the year, was the best performance of the last years before the pandemic.

GROUP DIVISIONAL ECONOMIC RESULTS FOR THE SECOND QUARTER

The following tables show the breakdown of divisional Revenues and Adjusted EBITDA achieved in the second quarter of 2021, compared with the same period of 2020:

REVENUES BY DIVISION

	2Q 2021	%	2Q 2020	%	Change	%	% ch. net FX
Datalogic	152,297	97.3%	107,932	97.0%	44,365	41.1%	46.1%
Informatics	4,553	2.9%	3,677	3.3%	877	23.8%	34.6%
Adjustments	(253)	‐0.2%	(382)	‐0.3%	129
Total Revenues	156,597	100.0%	111,226	100.0%	45,371	40.8%	46.0%

EBITDA BY DIVISION

	2Q 2021	% on revenues	2Q 2020	% on revenues	Change	%
Datalogic	24,517	16.1%	11,437	10.6%	13,080	114.4%
Informatics	713	15.7%	(299)	‐8.1%	1,012	n.a.
Adjustments	8		6		2	33.3%
Total Adjusted EBITDA	25,238	16.1%	11,144	10.0%	14,094	126.5%

DATALOGIC DIVISION

In the second quarter of 2021, the Datalogic Division reported a turnover of €152.3 million, an increase of 41.1%(+46.1% at constant exchange rates) in aggregate compared to the same period of 2020. The geographical area that made the greatest contribution to this was EMEAI, where the division achieved 53.5% of turnover in the second quarter of 2021, compared to 44.1% in the same period of 2020, an increase of 9.4%.

The division's Adjusted EBITDA amounted to €24.5 million, in turnaround with respect the same quarter of 2020 (+ 114.4%) when the pandemic recorded the most negative effects of the first lock down. The EBITDA incidence on Revenues rose to 16.1% compared to 10.6% in the second quarter of 2020, confirming the profitability trend already achieved in the previous three quarters, despite inflationary phenomena caused by shortage and increase in logistic costs.

2Q ²⁰²¹ % 2Q ²⁰²⁰ Restated % Change % % ch. net FX Retail 52,122 34.2% 48,325 44.8% 3,797 7.9% 12.6% Manufacturing 43,054 28.3% 27,934 25.9% 15,120 54.1% 57.3% Transportation & Logistics 23,616 15.5% 12,923 12.0% 10,693 82.7% 90.2% Healthcare 3,394 2.2% 3,424 3.2% (30) ‐0.9% 3.2% Channel 30,111 19.8% 15,326 14.2% 14,785 96.5% 103.7% Total Revenues 152,297 100% 107,932 100.0% 44,365 41.1% 46.1%

Below is the breakdown of the Datalogic Division's revenues by business sector:

Retail

The Retail sector recorded an overall increase of 7.9% (+12.6% at constant exchange rates) compared to the same quarter last year, with an increase in APAC +17.0%, in EMEAI +14.1% while in Americasthe trend was less favourable due to the exchange rate effect.

Manufacturing

The Manufacturing sector recorded growth of 54.1% compared to the same quarter of 2020. The all areas recovery was particularly strong in EMEAI (+90.9%) and in the Americas (+76.1%), while in APAC, which had already recorded particularly positive results compared to the other regions in the second quarter of 2020, it increased by 5.4%.

Transportation & Logistics

The Transportation & Logistics sector recorded an increase of 82.7% (+90.2% at constant exchange rates) compared to the second quarter of 2020, with growth in all geographical areas: EMEAI +107.3%, APAC +92.0% and America +57.5%.

Healthcare

The Healthcare sector was stable compared to the same period of comparison, with more appreciable results in EMEAI.

Channel

Sales through channels recorded a particularly positive performance compared to the same quarter of 2020 and equal to +96.5%, which reached +103.7% at constant exchange rates, where the EMEAI region more than tripled its 2020 result with +308.2%, followed by the Americas, which recorded an increase of 29.2% (+41.0% at constant exchange rates).

INFORMATICS DIVISION

The Informatics Division recorded a 23.8% increase in revenues in the second quarter of 2021: turnover totalled €4.6 million compared to €3.7 million in the second quarter of 2020. The improvement in divisional margins continues, with an EBITDA of €0.7 million at 15.7% of revenues (negative by €0.3 million in the second quarter of 2020) gaining 3.4% compared to the first quarter of 2021.

GROUP RECLASSIFIED STATEMENT OF FINANCIAL POSITION FOR THE PERIOD

The following table shows the main financial and equity items as at 30 June 2021, compared with 31 December 2020.

	30.06.2021	31.12.2020	Change	% change

Intangible assets	61,140	59,175	1,965	3.3%
Goodwill	202,337	171,372	30,965	18.1%
Tangible assets	105,160	103,406	1,754	1.7%
Financial assets and investments in associates	9,650	8,723	927	10.6%
Other non‐current assets	54,635	42,265	12,370	29.3%
Total Fixed Assets	432,922	384,941	47,981	12.5%
Trade receivables	91,503	66,563	24,940	37.5%
Trade payables	(131,418)	(97,006)	(34,412)	35.5%
Inventories	112,013	78,271	33,742	43.1%
Net Trade Working Capital	72,098	47,828	24,270	50.7%
Other current assets	28,365	28,274	91	0.3%
Other current liabilities and provisions for risks	(74,197)	(53,708)	(20,489)	38.1%
Net Working Capital	26,266	22,394	3,872	17.3%
Other non‐current liabilities	(34,644)	(33,958)	(686)	2.0%
Post‐employment benefits	(7,085)	(6,862)	(223)	3.2%
Non‐current Provisions for risks	(4,590)	(4,375)	(215)	4.9%
Net Invested Capital	412,869	362,140	50,729	14.0%
Shareholders' Equity	(394,671)	(370,358)	(24,313)	6.6%
Net financial position (NFP)	(18,198)	8,218	(26,416)	-321.4%

Net Trade Working Capital as at 30 June 2021 amounted to €72.1 million, an increase of €24.3 million compared to 31 December 2020, of which €7.9 million as a result of the change in the consolidation area following the acquisition of MD Group.

The percentage incidence on turnover rose from 10.0% on December 31, 2020 to 13.3% in 2021 and, on a like for like basis, to 12.6%, in line with June 30, 2020. The change in the period, including the acquired MD Microdetectors net trade working capital, is mainly due to the combined effect of the increase in demand and of the shortage of some electronic components and plastics, which required a €33.7 million increase in inventories, and a consequent greater trade exposure to suppliers of €34.4 million, as well as an increase of €24.9 million in trade receivables.

Net Invested Capital, at €412.9 million (€362.1 million as at 31 December 2020), increased overall by €50.7 million of which €48.0 million represented fixed assets and €3.9 million net working capital.

Fixed assets increased primarily due to the business combination relating to the MD acquisition, represented for €2.6 million by tangible assets and for €26.6 million by intangible assets, of which €25.6 million for the recognition of Goodwill, and exchange rate effects for €8.4 million.

The Net Financial Position as of 30 June 2021 was negative for €18.2 million; the €26.4 million change in the period was due to the €35 million cash disbursement for the investment in the MD acquisition, net of which the net financial position would have been positive for €16.8 million, compared to €8.2 million as of 31 December 2020.

Compared to the first half of 2020, cash flow from operations improved by around €20.5 million thanks to the recovery of volumes and margins combined to the selectivity on investments.

The cash flows, which brought about the change in consolidated Net Financial Position as at 30 June 2021, are detailed below:

	30.06.2021	30.06.2020	Change
Net Financial Position/(Net Financial Debt) at the beginning of the period	8,218	13,365	(5,147)
EBITDA	46,840	18,365	28,475
Change in net trade working capital	(15,748)	8,951	(24,699)
Other changes in net working capital	3,997	(3,891)	7,888
Net investments	(13,554)	(20,568)	7,014
Change in taxes	(2,983)	(2,031)	(952)
Net financial income (expenses)	(357)	(3,107)	2,750
Dividend distribution	(9,638)	(17,007)	7,369
Sale (Purchase) of treasury shares	‐	(6,811)	6,811
Change in consolidation area ‐ Disposals (Acquisitions)	(34,972)	(2,649)	(32,323)
Change in Net Financial Position	(26,416)	(28,747)	2,331
Net Financial Position/(Net Financial Debt) at year end	(18,198)	(15,383)	(2,816)

In the first half of 2021, the operating cash generated amounted to €18.2 million, and while on the one hand more working capital was absorbed than in the same period of 2020, as a result of more procurement and the acceleration in demand, on the other it benefited from the greaterselectivity on investments and the lower negative impact of financial management.

As at 30 June 2021, the net financial debt/(net financial position) is broken down as follows:

	30.06.2021	31.12.2020
A. Cash	113,807	137,440
B. Cash equivalents	11	11
L. Other current financial assets	2,114	12,189
D. Cash and cash equivalents (A) + (B) + (C)	115,932	149,640
E. Current financial debt	4,811	4,906
E1. Lease payables	3,500	3,375
F. Current portion of non‐current financial debt	70,870	52,860
G. Current financial debt (E) + (F)	75,681	57,766
H. Current Net Financial Debt (Financial Position) (G) - (D)	(40,251)	(91,874)
I. Non‐current financial debt	58,449	83,656
I1. Lease payables	6,219	5,763
J. Debt instruments	‐	‐
K. Trade and other payables	‐	‐
L. Non-current financial Debt (I) + (J) + (K)	58,449	83,656
M. Net Financial Debt/(Net Financial Position) (H) + (L)	18,198	(8,218)

As at 30 June 2021, the Group had credit lines in place for a total of €291.0 million, of which €164.0 million unused, including €85.0 million long‐term and €79.0 million short‐term.

Indirect debt subject to conditions as of 30 June 2021 is equal to €7,085 thousand and it is exclusively related to the Group's Post‐employment benefits.

SIGNIFICANT EVENTS DURING THE PERIOD

On 1 March 2021, the acquisition of the entire share capital of the Finmasi Group's M.D. Micro Detectors S.p.A. was completed through the subsidiary Datalogic S.r.l. M.D. Micro Detectors S.p.A. is a company with registered office in Italy operating in the design, production and sale of industrial sensors. The consideration for the sale was approximately €37 million.

On 29 April 2021, the Shareholders' Meeting appointed the new Board of Directors, to hold office for the financial years 2021‐2023, and resolved to distribute an ordinary unit dividend of €0.17 per share, after legal withholdings, for an overall amount of €9.6 million.

SUBSEQUENT EVENTS

Nothing to report.

BUSINESS OUTLOOK

The second quarter of the year marked an exceptional growth of the order intake in all geographical areas and in all the main market segments in which the Group operates. Despite the constraints imposed by the component and material shortage that impacted the industry, the Datalogic Group achieved a growth exceeding the 40% in the second quarter and pre‐pandemic profitability.

The vaccination campaigns, the management of new waves of the pandemic with more localised restrictive measures, and the actions to support the economy, are enabling a record acceleration of the recovery. However, some elements of uncertainty remain at global level, related to both the health emergency and the shortage phenomena that are affecting the sector, particularly in relation to components and to logistics costs.

Despite these elements of uncertainty, the growth rate of the order intake in all geographical areas, and a backlog that is exceptionally greater than in the same period of 2020,set up the basisfor very positive expectationsfor the remainder of the year. Assuming that the pandemic crisis, supply shortages and the resulting inflation do not escalate further, the Group confirmsfor the current year itsrevenue growth target of between 16% and 20%, with an improvement in EBITDA margin between 2 and 3 percentage points compared to 2020.

SECONDARY LOCATIONS

The Parent Company has no secondary locations.

The Chairman of the Board of Directors

(Mr. Romano Volta)

Consolidated Financial Statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS (€/000)	Notes	30.06.2021	31.12.2020
A) Non-current assets (1+2+3+4+5+6+7+8)		432,922	384,941
1) Tangible assets		95,981	94,358
Land	1	10,334	10,066
Buildings	1	49,139	48,192
Other assets	1	32,400	32,725
Assets in progress and payments on account	1	4,108	3,375
2) Intangible assets		263,477	230,547
Goodwill	2	202,337	171,372
Development costs	2	22,751	22,108
Other	2	21,926	24,417
Assets in progress and payments on account	2	16,463	12,650
3) Right-of-use assets	3	9,179	9,048
4) Equity investments in associates	4	539	900
5) Financial assets		9,111	7,823
Equity investments	6	9,111	7,823
6) Non-current financial receivables		-	-
7) Trade and other receivables	7	886	1,164
8) Deferred tax assets	13	53,749	41,101
B) Current assets (9+10+11+12+13+14+15)		347,813	322,748
9) Inventories		112,013	78,271
Raw and ancillary materials and consumables	8	61,734	37,633
Work in progress and semi‐finished products	8	19,809	15,012
Finished products and goods	8	30,470	25,626
10) Trade and other receivables		108,670	82,833
Trade receivables	7	91,503	66,563
of which from associates	7	1,836	1,313
of which from related parties	7	9	7
Other receivables, accrued income and prepaid expenses	7	17,167	16,270
11) Tax receivables	9	11,198	12,004
of which to Parent Company		1,424	641
12) Financial assets		10	10,152
Other	6	10	10,152
13) Current financial receivables		2,104	2,037
14) Financial assets - Derivative instruments	6	-	-
15) Cash and cash equivalents		113,818	137,451
Total Assets (A+B)		780,735	707,689

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

LIABILITIES (€/000)	Notes	30.06.2021	31.12.2020
A) Total Shareholders' Equity (1+2+3+4+5+6)	10	394,671	370,358
1) Share capital	10	30,392	30,392
2) Reserves	10	108,713	98,415
3) Retained earnings	10	229,778	225,816
4) Profit/(Loss) for the period	10	23,164	13,582
5) Group Shareholders' Equity	10	392,047	368,205
Profit/Loss for the period Minorities	10	370	300
Minority share capital	10	2,254	1,853
6) Minority interests		2,624	2,153
B) Non-current liabilities (7+8+9+10+11+12+13)		104,768	128,851
7) Non-current financial payables	11	58,449	83,656
8) Non-current financial liabilities		- -
9) Tax payables		1,832	1,671
10) Deferred tax liabilities	12	17,005	16,217
11) Post-employment benefits	13	7,085	6,862
12) Provisions for risks and charges, non-current	14	4,590	4,375
13) Other liabilities	15	15,807	16,070
C) Current liabilities (14+15+16+17+18)		281,296	208,480
14) Trade and other payables		181,649	139,181
Trade payables	15	131,418	97,006
of which to associates	15	25	194
of which to related parties		‐	50
Other payables, accrued liabilities and deferred income	15	50,231	42,175
15) Tax payables	9	20,002	7,681
of which to Parent Company		7,733	1,700
16) Provisions for risks and charges, current	14	3,964	3,852
18) Current financial payables	11	75,681	57,766
Total Liabilities (A+B+C)		780,735	707,689

CONSOLIDATED INCOME STATEMENT

(€/000)	Notes	30.06.2021	30.06.2020
1) Revenues	16	292,010	230,414
Revenues from sale of products		273,411	212,032
Revenues from services		18,599	18,382
of which to related parties and associates		4,382	2,576
2) Cost of goods sold	17	158,459	126,172
of which to related parties and associates		311	251
Gross Operating Margin (1-2)		133,551	104,242
3) Other operating revenues	18	711	2,691
4) Research and development expenses	17	28,909	29,317
of which to related parties and associates		272	274
5) Distribution expenses	17	48,567	51,601
of which to related parties and associates		62	23
6) General and administrative expenses	17	27,094	24,329
of which to related parties and associates		110	119
7) Other operating expenses	17	1,477	1,353
Total operating costs		106,047	106,599
Operating result		28,216	334
8) Financial income	19	9,684	10,103
9) Financial expenses	19	10,041	15,261
Financial income/(expenses) (8-9)		(357)	(5,158)
10) Profits from associates			- -
Profit/(Loss) before taxes from continuing operations		27,859	(4,824)
Income taxes	20	4,325	(4,345)
Profit/(Loss) for the period from continuing operations		23,534	(479)
Net Profit/(Loss) from discontinued operations		-	466
Net Profit/(Loss) for the period		23,534	(13)
Basic earnings/(loss) per share (€)	21		0.41 0.00
Diluted earnings/(loss) per share (€)	21		0.40 0.00

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(€/000)	Notes	30.06.2021	30.06.2020
Net Profit/(Loss) for the period		23,534	(13)
Other components of the statement of comprehensive income:

Other components of the statement of comprehensive income which will be
subsequently reclassified to Profit/(Loss) for the period:

Profit/(Loss) on derivative financial instruments (cash flow hedge)	10	70	105
Profit/(Loss) due to translation of the accounts of foreign companies	10	7,589	252
Profit/(Loss) from financial assets at FVOCI	10	835	(2,117)
of which tax effect		(11)	24

Total other components of the statement of comprehensive income which will		8,494	(1,760)
be subsequently reclassified to Profit/(Loss) for the period

Other components of the statement of comprehensive income which will not
be subsequently reclassified to Profit/(Loss) for the period


Actuarial gains (losses) on defined‐benefit plans
of which tax effect

Total other components of the statement of comprehensive income which will
not be subsequently reclassified to Profit/(Loss) for the period

Total profit/(loss) of Comprehensive Income Statement		8,494	(1,760)

Total comprehensive Profit/(Loss) for the period		32,028	(1,773)
Attributable to:
Shareholders of the Parent Company		31,658	(1,878)
Minority interests		370	105

CONSOLIDATED STATEMENT OF CASH FLOW

(€/000)	Notes	30.06.2021	30.06.2020
Profit/(Loss) before taxes		27,859	(4,186)
Depreciation of tangible assets and write‐downs	1, 2	6,296	6,148
Amortisation of intangible assets and write‐downs	1, 2	7,019	5,537
Depreciation of right‐of‐use assets	3	2,097	2,750
Losses (Gains) from sale of fixed assets	18, 19	115	(14)
Change in provisions for risks and charges	15	164	(326)
Change in bad debt provisions	18	9	1,131
Change in employee benefits reserve	14	(246)	(174)
Other non‐monetary changes		5,016	4,992
Cash flow generated (absorbed) from operations before changes in working capital		48,329	15,858
Change in trade receivables	7	(18,491)	16,129
Change in final inventories	8	(28,566)	(1,099)
Change in trade payables	16	31,300	(6,050)
Change in other current assets	7	(135)	3,996
Change in other current liabilities	16	6,713	(3,659)
Change in other non‐current assets	7	278	‐
Change in other non‐current liabilities	16	(263)	(823)
Cash flow generated (absorbed) from operations after changes in working capital		39,165	24,352
Change in taxes		(2,983)	(2,031)
Interest paid		(1,603)	(1,577)
Interest collected		268	281
Cash flow generated (absorbed) from operations (A)		34,847	21,025
Increase in intangible assets	2	(7,561)	(9,755)
Decrease in intangible assets	2	‐	‐
Increase in tangible assets	1	(3,755)	(7,283)
Decrease in tangible assets	1	(63)	24
Cash paid for business acquisition, net of cash acquired		(34,972)	‐
Change in investments and non‐current financial assets	5	8	82
Change in investments and current financial assets		10,142	8,753
Cash flow generated (absorbed) from investments (B)		(36,201)	(8,179)
Change in financial payables	12, 6	(9,697)	(25,515)
Repayment of lease financial payables		(2,081)	(2,774)
(Purchase)/sale of treasury shares	11	‐	(6,811)
Dividend payment	11	(9,638)	(17,007)
Effect of change in cash and cash equivalents		(863)	(1,753)
Cash flow generated (absorbed) from financial activity (C)		(22,279)	(53,860)
Net increase (decrease) in available cash (A+B+C)	10	(23,633)	(41,014)
Net cash and cash equivalents at beginning of period	10	137,451	151,841
Net cash and cash equivalents from assets available-for-sale		‐	(402)
Net cash and cash equivalents at end of period	10	113,818	110,425

CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY

ip ion De t sc r	ha S re l ita ca p	ha S re ium p re m res erv e	Tr ry s ea su ha res	la ion Tr t an s res erv e	he O t r res erv es	ine d Re ta ing ea rn s	Gr p Pr ou it ( f o ) Lo ss	Gr p S ou ha ' Eq ho l de re rs ity u	f it ( Pr o ) M Lo ss ino ity r	ity s ino M r ha l ita re ca p	it ( f Pr o ) Lo ss	ha ' Eq ho l de S re rs ity u
0 1. 0 1. 2 0 2 1	3 0, 3 9 2	1 1 1, 9 7 7	( ) 2 1, 8 9 9	2, 3 3 1	6, 2 0 4	2 2 8 1 6 5,	1 3, 8 2 5	3 6 8, 2 0 5	3 0 0	2, 1 3 5	1 3, 8 8 2	3 0, 3 8 7 5
l loc ion f e ing A at o ar n s						1 3, 5 8 2	( ) 1 3, 5 8 2		( ) 3 0 0	3 0 0	( ) 1 3, 8 8 2	‐
de ds D iv i n						( ) 9, 6 3 8		( ) 9, 6 3 8				( ) 9, 6 3 8
ha Tr ea su ry s res												‐
Sto k Gr ts c an					1, 8 0 4			1, 8 0 4				1, 8 0 4
he ha Ot c r ng es						1 8		1 8		1 0 1		1 1 9
/ f it ( ) fo he io d Pr Lo t o ss r p er							2 3, 1 6 4	2 3, 1 6 4	3 7 0	2, 2 5 4	2 3, 5 3 4	2 3, 5 3 4
he f he Ot ts t sta te nt c r om p on en o me f he ive inc o c om p re ns om e				7, 5 8 9	9 0 5			8, 4 9 4				8, 4 9 4
l he f ( ) To ive Pr it Lo ta c om p re ns o ss				7, 5 8 9	9 0 5		2 3, 1 6 4	3 1, 6 5 8	3 7 0	2, 2 5 4	2 3, 5 3 4	3 2, 0 2 8
3 0. 0 6. 2 0 2 1	3 0, 3 9 2	1 1 1, 7 7 9	( ) 2 1, 8 9 9	9, 9 2 0	8, 9 1 3	2 2 9, 7 7 8	2 3, 1 6 4	3 9 2, 0 4 7	3 7 0	2, 2 5 4	2 3, 5 3 4	3 9 4, 6 7 1

De ip ion t sc r	ha S re ita l ca p	ha S re ium p re m res erv e	Tr ea su r ha s res y	la ion Tr t an s res erv e	he O t r res erv es	ine d Re ta ing ea rn s	Gr p Pr ou f it ( o ) Lo ss	Gr p S ou ha ' Eq ho l de re rs ity u	it ( f Pr o ) M Lo ss ino ity r	ity s M ino r ha ita l re ca p	f it ( Pr o ) Lo ss	ha ' Eq ho l de S re rs ity u
0 0 2 0 2 0 1. 1.	3 0, 3 9 2	9 1 1 1, 7 7	( ) 3 1 5, 1 1	2 6, 3 0 5	6 5, 7 7	9 2, 8 8 1 5	0, 0 6 9 5	0 2, 3 8 4 1	2 2 1	8 3 1, 5	0, 2 8 5 1	0 4 4, 1 7 1
l loc f e A ion ing at o ar n s						5 0, 0 6 9	( ) 5 0, 0 6 9		( ) 2 1 2		( ) 5 0, 2 8 1	‐
de ds D iv i n						( ) 1 7, 0 0 7		( ) 1 7, 0 0 7				( ) 1 7, 0 0 7
ha Tr ea su ry s res			( ) 6, 8 1 1					( ) 6, 8 1 1				( ) 6, 8 1 1
Sto k Gr ts c an					3 9 1			3 9 1				3 9 1
he ha Ot c r ng es						( ) 4		( ) 4		( ) 2 4		( ) 2 8
/ f ( ) fo he d Pr it Lo io t o ss r p er							( ) 1 1 8	( ) 1 1 8	1 0 5	1 0 5	( ) 1 3	( ) 1 3
he f he Ot ts t c r om p on en o
f c he ive sta te nt me o om p re ns				2 5 2	( ) 2, 0 1 2			( ) 1, 7 6 0				( ) 1, 7 6 0
inc om e
l he f ( ) To ive Pr it Lo ta c om p re ns o ss				2 5 2	( ) 2, 0 1 2		( ) 1 1 8	( ) 1, 8 7 8	1 0 5	1 0 5		( ) 1, 7 7 3
3 0. 0 6. 2 0 2 0	3 0, 3 9 2	9 1 1 1, 7 7	( ) 2 9 2 1, 4	2 6, 8 2 7	3, 9 0 3	2 2 9 3 5, 4	( ) 8 1 1	3 6, 6 3 9 7	0 1 5	9 3 3 1,	( ) 3 1	3 8, 6 9 0 7

Explanatory Notes

EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

GENERAL INFORMATION

The Datalogic Group is the global leader in the markets of automatic data capture and process automation. The Group isspecialised in the design and production of bar code readers, mobile computers, detection, measurement and security sensors, vision and laser marking systems and RFID.

Its pioneering solutions contribute to 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 in the STAR segment of the Italian Stock Exchange managed by Borsa Italiana S.p.A., with its registered office in Italy. The address of the registered office is Via Candini, 2 ‐ Lippo di Calderara (BO).

This consolidated half‐year report as at 30 June 2021 include the figures of the Parent Company and its subsidiaries (defined hereinafter as the "Group") and its minority interests in associated companies.

The publication of the Datalogic Group's Consolidated Half‐Year Financial Report as at 30 June 2021 was authorised by resolution of the Board of Directors on 5 August 2021.

BASIS OF PRESENTATION

1) General criteria

This Consolidated Half‐Year Financial Report was drawn up pursuant to Art. 154‐ter of Italian Legislative Decree 58 (TUF) of 24 February 1998, as subsequent amendments and supplemented, as well as to the Consob Issuer Regulation. These drafting criteria comply with IAS 34 "Interim Financial Statements", providing the abbreviated notes required by this international accounting standard, supplemented to provide additional information as necessary.

This Consolidated Half‐Year Financial Report must therefore be read together with the Consolidated Financial Statements as at 31 December 2020, which were prepared in accordance with the IFRS accounting standards, endorsed by the European Union, approved by the Board of Directors on 9 March 2021 and available in the Investor Relations section of the Group's website (www.Datalogic.com).

This Consolidated Half‐Year Financial Report is drawn up in thousands of euro, which is the Group's functional and presentation currency.

2) Financial statements

The financial statements adopted are compliant with those required by IAS 1 and were used in the Consolidated Financial Statements for the year ended on 31 December 2020, in particular:

current and non‐current assets, as well as current and non‐current liabilities are disclosed 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 Group's normal operational cycle; current liabilities are those whose extinction is envisaged during the Group's normal operating cycle or in the 12 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 meaningful for comprehension of the Group's business result;
the Statement of Comprehensive Income presents the components that determine profit/(loss) for the period and the costs and revenues reported directly under shareholders' equity;
the Statement of Cash Flow is presented using the indirect method.

3) New accounting standards, interpretations and amendments adopted by the Group

On 1 January 2021, the following amendments to the accounting standards currently in force entered into effect:

On 28 May 2020, the IASB issued an amendment entitled "Covid‐19 Related Rent Concessions (Amendment to IFRS 16)". The document envisages for lessees to recognise Covid‐19 related rent reductions without having to measure, through the analysis of contracts, whether the definition of lease modification of IFRS 16 is complied with.
On 28 May 2020, the IASB published an amendment entitled "Extension of the Temporary Exemption from Applying IFRS 9 (Amendmentsto IFRS 4)". The amendments allow for the temporary exemption of the IFRS 9 application until 1 January 2023.
On 27 August 2020, the IASB published, in light of the reform on interbank interest rates such as the IBOR, the document "Interest Rate Benchmark Reform — Phase 2" which contains amendments to the following standards:
‐ IFRS 9 Financial Instruments;
‐ IAS 39 Financial Instruments: Recognition and Measurement;
‐ IFRS 7 Financial Instruments: Disclosures;
‐ IFRS 4 Insurance Contracts; and
‐ IFRS 16 Leases.

The adoption of these amendments had no impact on the Group's Consolidated Financial Statements.

4) New accounting standards issued but still not in force

At the reporting date of this Half‐Year Financial Report, some accounting criteria were issued but are not yet applicable, as described in the Group Consolidated Financial Statements as at 31 December 2020, to which reference is made. The Group intends to adopt these standards and interpretations, if applicable, when they will enter into force. Moreover, following the approval of the Consolidated Financial Statements as at 31 December 2020, new accounting standards were issued but still not in force:

On 12 February 2021, the IASB published two amendments called "Disclosure of Accounting Policies ‐ Amendments to IAS 1 and IFRS Practice Statement 2" and "Definition of Accounting Estimates ‐ Amendments to IAS 8". The amendments are aimed at improving disclosure on accounting policies in order to provide more useful information to investors and other primary users of financial statements, as well as to help companies distinguish between changes in accounting estimates and changes in accounting policies. The amendments will apply from 1 January 2023.

On 31 March 2021, the IASB published an amendment called "Covid‐19‐Related Rent Concessions beyond 30 June 2021 (Amendments to IFRS 16)", extending by one year the period of application of the amendment to IFRS 16 on the accounting treatment of the concessions granted to tenants due to Covid‐19.
On 7 May 2021, the IASB published an amendment entitled "Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction". The document clarifies how deferred taxes on certain transactions that may generate assets and liabilities of the same amount, such as leases and dismantling obligations, must be accounted for. The amendments will apply from 1 January 2023.

The directors do not expect the adoption of these amendments to have any significant impact on the Group's consolidated financial statements.

5) Use of estimates and assumptions

The preparation of the IFRS‐compliant Consolidated Half‐Year Financial Report requires directors to apply accounting standards and methodologies that, in some cases, are based on valuations and estimates, which in turn refer to historic experience and assumptions based on specific circumstances at any given time. The application of such estimates and assumptions affects the amounts related to revenues, costs, assets and liabilities, as well as contingent liabilities disclosed and any relevant information. The actual amounts of accounting items, for which these estimates and assumptions have been used, might be different from those reported due to the uncertainty characterising the assumptions and conditions on which estimates are based.

6) Consolidation area

This Consolidated Half‐Year Financial Report as at 30 June 2021 includes the income statement and balance sheet data of Datalogic S.p.A. and all the companies that it directly or indirectly controls.

The list of equity investmentsincluded in the consolidation area, with an indication of the methodology used, isincluded in Annex 2 of the Explanatory Notes.

As at 30 June 2021, there was a change in the consolidation area due to the acquisition, on 1 March 2021, of the entire share capital of M.D. Micro Detectors S.p.A. and its subsidiaries M.D. Micro Detectors Tianjin Co. Ltd. and Micro Detectors Iberica S.A.U. on 1 March 2021.

7) Translation criteria of items in foreign currency

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

Currency (ISO Code)	Quantity of currency for 1 Euro
	June 2021	June 2021	December 2020	June 2020
	Final exchange	Average	Final exchange	Average
	rate	exchange rate for	rate	exchange rate for
		the period		the period
US Dollar (USD)	1.1884	1.2053	1.2271	1.1020
British Pound Sterling (GBP)	0.8581	0.8680	0.8990	0.8746
Swedish Krona (SEK)	10.1110	10.1308	10.0343	10.6599
Singapore Dollar (SGD)	1.5976	1.6059	1.6218	1.5411
Japanese Yen (JPY)	131.4300	129.8681	126.4900	119.2668
Australian Dollar (AUD)	1.5853	1.5626	1.5896	1.6775
Hong Kong Dollar (HKD)	9.2293	9.3551	9.5142	8.5531
Chinese Renminbi (CNY)	7.6742	7.7960	8.0225	7.7509
Brazilian Real (BRL)	5.9050	6.4902	6.3735	5.4104
Mexican Peso (MXN)	23.5784	24.3270	24.4160	23.8430
Hungarian Forint (HUF)	351.6800	357.8797	363.8900	345.2607

BUSINESS COMBINATION

On 1 March 2021, the acquisition of the entire share capital of the Finmasi Group's M.D. Micro Detectors S.p.A. was completed through the subsidiary Datalogic S.r.l.

M.D. Micro Detectors S.p.A. is a company with registered office in Italy operating in the design, production and sale of industrial sensors.

The following table shows preliminary fair value as at 30 June 2021 of the assets and liabilities of the acquisition, the preliminary goodwill deriving from the transaction and the net cash used for the acquisition:

Provisional PPA as at 30 June 2021	Amounts acquired	Fair value
Tangible assets	2,595	2,595
Intangible assets	985	985
Other receivables	342	342
Inventories	5,176	5,176
Trade and other receivables	7,312	7,312
Cash and cash equivalents	2,028	2,028
Financial liabilities	(1,667)	(1,667)
Liabilities for defined employee benefits	(469)	(469)
Trade payables	(3,108)	(3,108)
Other payables	(1,954)	(1,954)
Net assets at acquisition date	11,240	11,240
% pertaining to Group	100%	100%
Group net assets	11,240	11,240
Acquisition cost		37,000
Goodwill at acquisition date		25,760

Net cash used in acquisition:
Cash and cash equivalents of acquiree	[A]	2,028
Payments made to the seller	[B]	37,000
Acquisition cost		37,000
Net cash used in acquisition	[A] - [B]	34,972

Since the acquisition is a business combination, the Group has recognised it using the purchase method, pursuant to the revised IFRS 3. The cost of an acquisition is determined as the sum of the consideration transferred, measured at fair value on the acquisition date.

The preliminary goodwill emerging from this transaction amounted to €25,760 thousand. It is worth noting that, for the purposes of preparing this Half‐Year Financial Report, the initial recognition of the business combination was temporarily determined, as the activities aimed at the determination of the fair value of assets, liabilities or potential liabilities are in progress. As envisaged by IFRS 3, any possible adjustments shall be recognised within 12 months from the acquisition date.

SEGMENT DISCLOSURE

Operating segments are identified based on the management reporting used by senior management to allocate resources and evaluate results. Sales transactions amongst the operating segments indicated hereunder are executed at arm's length conditions, based on the Group transfer pricing policies. From the year 2020, following the sale of the Solution Net Systems Inc. division, the operating segments are as follows:

Datalogic, which represents the Group's core business, designs and produces bar code scanners, mobile computers, detection, measurement and security sensors, vision and laser marking and RFID systems that contribute to increase the efficiency and quality of processes in the areas of Retail, Manufacturing, Transportation & Logistics and Healthcare. M.D. Micro Detectors S.p.A. and itssubsidiaries active in the design, production and sale of industrial sensors have been included by Directors within this segment;
Informatics sells and distributes products and solutions for the management of inventories and mobile assets tailored to small and medium‐sized companies.

The financial information related to operating segments as at 30 June 2021 and 30 June 2020 are as follows:
-------------------------------------------------------------------------------------------------------------	--

Segment economic position	Datalogic Business	Informatics	Adjustments	Total Group 30.06.2021
Revenues	283,460	8,978	(428)	292,010
EBITDA	45,565	1,258	17	46,840
% Revenues	16.07%	14.01%		16.04%
EBIT	27,098	1,101	17	28,216

Segment economic position	Datalogic Business	Informatics	Adjustments	Total Group 30.06.2020
Revenues	223,184	7,864	(634)	230,414
EBITDA	18,411	(81)	35	18,365
% Revenues	8.25%	‐1.03%		7.97%
EBIT	634	(335)	35	334

The equity information related to operating segments as at 30 June 2021 and 30 June 2020 are as follows.

Segment financial position	Datalogic Business	Informatics	Adjustments	Total Group 30.06.2021
Total Assets	787,301	21,512	(28,078)	780,735
Total Liabilities	377,667	6,083	2,314	386,064
Shareholders' Equity	409,634	15,429	(30,392)	394,671

Segment financial position	Datalogic Business	Informatics	Adjustments	Total Group 31.12.2020
Total Assets	713,680	20,043	(26,034)	707,689
Total Liabilities	332,641	5,827	(1,136)	337,332
Shareholders' Equity	381,039	14,216	(24,897)	370,358

INFORMATION ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS

Note 1. Tangible assets

Over the period, net investments of €3,704 thousand, contributionsresulting from acquisitionsfor €2,594 thousand and depreciation of €6,296 thousand were recognised, while the exchange rate differences were positive for €1,621 thousand. The breakdown of the item as at 30 June 2021 and 31 December 2020 is as follows:

	30.06.2021	31.12.2020	Change
Land	10,334	10,066	268
Buildings	49,139	48,192	947
Other assets	32,400	32,725	(325)
Assets in progress and payments on account	4,108	3,375	733
Total	95,981	94,358	1,623

In addition to the recognition of exchange rate differences of €813 thousand, the increase in the item "Buildings" is mainly represented by the contribution from the acquisition of the company M.D. Micro Detectors S.p.A. and its subsidiaries (€581 thousand).

The "Other assets" item as at 30 June 2021 includesthe following categories: industrial equipment and moulds(€12,275 thousand), plant and machinery (€9,402 thousand), office furniture and machines (€7,082 thousand), general plants related to buildings (€2,157 thousand), light constructions (€612 thousand), commercial equipment and demo rooms (€544 thousand), maintenance on third‐party assets (€307 thousand), and motor vehicles (€18 thousand). Overall, the contribution from the acquisition amounts to €1,923 thousand.

The balance of item "Assets in progress and payments on account", equal to €4,108 thousand, is composed primarily of €2,960 thousand for moulds under construction and €1,115 thousand for equipment and self‐built production lines.

Note 2. Intangible assets

Over the period, recognised net investments amounted to €7,537 thousand, and amortisation amounted to €7,019 thousand, while the exchange rate differences were negative for €5,643 thousand. The contribution deriving from the acquisition amounted to €1,008 thousand. The breakdown of the item as at 30 June 2021 and 31 December 2020 is as follows:

	30.06.2021	31.12.2020	Change
Goodwill	202,337	171,372	30,965
Development costs	22,751	22,108	643
Other	21,926	24,417	(2,491)
Assets in progress and payments on account	16,463	12,650	3,813
Total	263,477	230,547	32,930

Goodwill

"Goodwill", totalling €202,337 thousand, consisted of the following items:

	30.06.2021	31.12.2020	Change
Datalogic CGU	189,440	158,794	30,646
Informatics CGU	12,897	12,578	319
Total	202,337	171,372	30,965

The change in the "Goodwill" item, compared to 31 December 2020, is due to translation differences in the amount of €5,205 thousand, and to goodwill that emerged in the first consolidation of the MD Group following the posting of the provisional Purchase Price Allocation (PPA) attributed to the Datalogic CGU, in the amount of €25,760 thousand.

This Goodwill has been allocated to the CGUs (Cash Generating Units) represented by the individual companies and/or sub‐groups to which they refer.

At 30 June 2021, the Directors considered the assumptions underlying the impairment tests carried out with reference to the aforementioned CGUs as at 31 December 2020 and the related multi‐year plans still valid and, therefore, did not identify any impairment indicators with reference to Goodwill. In carrying out this assessment, the Directors took into account the final results as at 30 June 2021 and expected for 2021.

As reported in the information relating to the Consolidated Financial Statements as of 31 December 2020, the financial plans prepared by Management and used for the impairment test, at that date, considered the changed context due to the spread of the Covid‐19 pandemic, as well as the actions adopted and planned by the Group to address the related short and medium term uncertainties. In particular, in consideration of the aforementioned context of uncertainty, the Directors forecasted multi‐scenario assumptions, sensitivity analysis and stress tests from which no issue emerged.

Development costs, Other intangible assets and Assets in progress and payments on account

The "Development costs" item, amounting to €22,751 thousand, is composed of product development projects, of which €958 thousand deriving from the consolidation of the company M.D. Micro Detectors S.p.A.

The "Other" item, amounting to €21,926 thousand (of which €46 thousand resulting from the contribution of the acquired company), consists primarily of intangible assets acquired through business combinations carried out by the Group in previous years, and software implementations. The details are shown below:

	30.06.2021	31.12.2020	Change
Patents	9,734	10,275	(541)
Know‐how	1,212	1,675	(463)
Licence agreement	1,095	1,714	(619)
Software	9,885	10,753	(868)
Total	21,926	24,417	(2,491)

The "Assets in progress and payments on account" item, equal to €16,463 thousand, is attributable, in the amount of €15,683 thousand, to the capitalisation of costs relating to Research and Development projects that are currently underway, as well as, in the amount of €780 thousand, to software implementations that are not yet completed.

Note 3. Right‐of‐use assets

Over the period, recognised net investments amounted to €1,791 thousand, and depreciation amounted to €2,097 thousand, while the exchange rate differences were positive for €95 thousand. The breakdown of the item as at 30 June 2021 and 31 December 2020 is as follows:

	30.06.2021	31.12.2020	Change
Buildings	7,121	6,716	405
Vehicles	1,933	2,214	(281)
Office equipment	125	118	7
Total	9,179	9,048	131

Note 4. Equity investments in associates

The non‐controlling interests held by the Group as at 30 June 2021 amounted to €539 thousand. During the period, the stake of 40% of the share capital of the company Specialvideo S.r.l. was sold for a consideration of €200 thousand, after collection of a dividend of €200 thousand, resulting in a capital gain of around €40 thousand.

Note 5. Financial assets and liabilities by category

The following table provides a breakdown of "Financial assets and liabilities", according to provisions set out by IFRS 9:

Financial assets

	Financial assets at amortised cost	Financial assets at FV through profit or loss	Financial assets at FV through OCI	31.12.2020
Non-current financial assets	1,164	947	6,876	8,987
Financial assets ‐ Investments		947	6,876	7,823
Other receivables	1,164			1,164
Current financial assets	220,284	12,189		232,473
Trade receivables	66,563			66,563
Other receivables	16,270			16,270
Financial assets ‐ Other		10,152		10,152
Financial assets ‐ Loans		2,037		2,037
Cash and cash equivalents	137,451			137,451
Total	221,448	13,136	6,876	241,460

	Financial assets at amortised cost	Financial assets at FV through profit or loss	Financial assets at FV through OCI	30.06.2021
Non-current financial assets	886	1,194	7,917	9,997
Financial assets ‐ Investments		1,194	7,917	9,111
Other receivables	886			886
Current financial assets	222,488	2,114	-	224,602

Trade receivables	91,503			91,503
Other receivables	17,167			17,167
Financial assets ‐ Other		10		10
Financial assets ‐ Loans		2,104		2,104
Cash and cash equivalents	113,818			113,818
Total	223,374	3,308	7,917	234,599

Financial liabilities

	Derivatives	Financial liabilities at amortised cost	31.12.2020
Non-current financial liabilities	-	99,726	99,726
Financial payables		83,656	83,656
Other payables		16,070	16,070
Current financial liabilities	-	196,947	196,947
Trade payables		97,006	97,006
Other payables		42,175	42,175
Short‐term financial payables		57,766	57,766
Total	-	296,673	296,673

	Derivatives	Financial liabilities
		at amortised cost	30.06.2021
Non-current financial liabilities	-	74,256	74,256
Financial payables		58,449	58,449
Other payables		15,807	15,807
Current financial liabilities	-	257,330	257,330
Trade payables		131,418	131,418
Other payables		50,231	50,231
Short‐term financial payables		75,681	75,681
Total	-	331,586	331,586

The fair value of financial assets and financial liabilities is determined according to methods that can be classified in the various levels of the fair value hierarchy as defined by IFRS 13. In particular, the Group has adopted internal valuation models that are generally used in finance and based on prices supplied by market operators, or prices taken from active markets.

Fair value ‐ hierarchy

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

Level 1: market prices;

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

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

	Level 1	Level 3	30.06.2021
Assets measured at fair value
Financial assets ‐ Investments	7,917	1,194	9,111
Financial assets ‐ Other	10	2,104	2,114
Total Assets measured at fair value	7,927	3,298	11,225

Note 6. Financial assets

The financial assets include the following:

	30.06.2021	31.12.2020	Change
Non‐current financial assets	9,111	7,823	1,289
Current financial assets	2,114	12,189	(10,075)
Total	11,225	20,012	(8,787)

The "Current financial assets" item mainly consists of investments in corporate cash. The change refers to disinvestments made at market values.

The change in the item "Non‐current financial assets" is detailed below:

	2021	2020
As at 1 January	7,823	9,465
Investments/Divestments	430	(82)
Acquisitions	3	‐
Profits/losses recognised in OCI	834	(2,131)
Gains/losses recognised in the income statement	(3)	‐
Exchange rate adjustment	24	72
As at 30 June	9,111	7,324

The item mainly comprises the 1.2% investment in the share capital of Japanese company Idec Corporation, listed on the Tokyo Stock Exchange. The change in the period relates to exchange rate and fair value adjustments. During the period, an investment was made in the company Point Mobile Co., Ltd for €207 thousand, and whose valuation at 30 June 2021 is equal to €282 thousand.

Note 7. Trade and other receivables

The breakdown of the item as at 30 June 2021 and 31 December 2020 is as follows:

	30.06.2021	31.12.2020	Change
Third‐party trade receivables	83,702	64,440	19,262
Contract‐related assets	8,600	3,068	5,532
Less: bad debt provisions	(2,644)	(2,262)	(382)
Net third-party trade receivables	89,658	65,246	26,412
Receivables from associates	1,836	1,313	523
Receivables from related parties	9	7	2
Total Trade receivables	91,503	66,563	24,940
Other receivables ‐ current accrued income and prepaid expenses	17,167	16,270	897
Other receivables ‐ non‐current accrued income and prepaid expenses	886	1,164	(278)
Total Other receivables - accrued income and prepaid expenses	18,053	17,434	619
Less: non‐current portion	886	1,164	(278)
Trade and other receivables - current	108,670	82,833	25,837

Trade receivables

"Trade receivables" as at 30 June 2021 amounted to €91,503 thousand, of which €7,163 thousand deriving from Group MD. As at 30 June 2021, factored trade receivables amounted to €25,930 thousand (compared to €30,349 thousand at the end of 2020). Trade receivables from associates arise from commercial transactions carried out at arm's length conditions.

Other receivables - accrued income and prepaid expenses

The details of the "Other receivables ‐ accrued income and prepaid expenses" item is shown below.

	30.06.2021	31.12.2020	Change
Other receivables ‐ current	1,850	1,702	148
Other receivables ‐ non‐current	886	1,164	(278)
VAT receivables	11,708	11,324	384
Accrued income and prepaid expenses	3,609	3,244	365
Total	18,053	17,434	619

The "Accrued income and prepaid expenses" item is mainly composed of insurance, as well as hardware and software fees. The increase in the period is mainly due to the change in the consolidation area.

Note 8. Inventories

	30.06.2021	31.12.2020	Change
Raw and ancillary materials and consumables	61,734	37,633	24,101
Work in progress and semi‐finished products	19,809	15,012	4,797
Finished products and goods	30,470	25,626	4,844
Total	112,013	78,271	33,742

Inventories are posted net of an obsolescence provision totalling €11,355 thousand as at 30 June 2021 (€10,187 thousand as at 31 December 2020). Movements in the obsolescence provision as at 30 June 2021 and at 30 June 2020 are reported below:

	2021	2020
As at 1 January	10,187	10,121
Foreign exchange gains/losses	119	(88)
Provisions	379	2,500
Acquisitions	1,055	‐
Releases	(385)	(1,442)
As at 30 June	11,355	11,091

Inventories, amounting to €112,013 thousand, increased during the period by €33,742 thousand, of which €5,674 thousand as a result of the change in the consolidation area; increasing is attributable to more procurement to meet the growth in demand in a context of shortages of electronic and plastic components.

Note 9. Tax payables and receivables

	30.06.2021	31.12.2020	Change
Tax receivables	11,198	12,004	(806)
of which from Parent Company	1,424	641	783
Tax payables	(20,002)	(7,681)	(12,321)
of which to Parent Company	(7,733)	(1,700)	(6,033)
Total	(8,804)	4,323	(13,127)

As at 30 June 2021, the "Tax receivables" item amounted to €11,198 thousand, decreasing by €806 thousand compared to end of 2020 (€12,004 thousand as at 31 December 2020). The receivables for IRES tax from the Parent Company Hydra S.p.A. generated within the tax consolidation regime and equal to €1,424 thousand (€641 thousand as at 31 December 2020) are classified under this item.

The "Tax payables" item amounted to €20,002 thousand at 30 June 2021, increasing by €12,321 thousand (€7,681 thousand as at 31 December 2020). The payables for IRES tax to the Parent Company Hydra S.p.A., generated within the tax consolidation regime and equal to €7,733 thousand (€1,700 thousand as at 31 December 2020) are classified under this item.

LIABILITIES AND SHAREHOLDERS' EQUITY

Note 10. Shareholders' Equity

The Shareholders' Equity is broken down up as follows.

	30.06.2021	31.12.2020	Change
Share capital	30,392	30,392	‐
Share premium reserve	111,779	111,779	‐
Treasury shares held	(21,899)	(21,899)	‐
Share capital and capital reserves	120,272	120,272	-
Translation reserve	9,920	2,331	7,589
Other reserves	8,913	6,204	2,709
Retained earnings	229,778	225,816	3,962
Profit/(Loss) for the period	23,164	13,582	9,582
Total Group shareholders' equity	392,047	368,205	23,842
Profit/Loss for the period ‐ Minority	370	300	70
Minority share capital	2,254	1,853	401
Total consolidated Shareholders' Equity	394,671	370,358	24,313

Share capital

As at 30 June 2021, the share capital of €30,392 thousand represents the share capital fully subscribed and paid by the Parent Company Datalogic S.p.A. It comprises a total number of ordinary shares of 58,446,491, of which 1,754,131 are held as treasury shares for a value of €21,899 thousand, and therefore the outstanding shares as at that date amounted to 56,692,360; in addition, 507,220 shares were also allocated to the Stock Grant plan. The shares have a nominal unit value of €0.52 each.

Other Reserves

As at 30 June 2021, the main changes in other reserves could be broken down as follows:

positive change in the translation reserve of €7,589 thousand;
positive change in the cash flow hedge reserve of €70 thousand;
positive change in financial assets reserve, measured at FVOCI, amounting to €835 thousand;
positive change in the stock grant reserve of €1,804 thousand.

With reference to the change in the stock grant reserve, it should be noted that it relates to the recognition of the medium/long‐term incentive plan based on shares approved by the Shareholders' Meeting on 30 April 2019. The rights to receive, in the event the achievement of the performance objectives set, the shares of the Company were assigned to the beneficiaries by the Directors on 25 June 2019 (grant date).

The aforementioned increase in equity was recognised, for the portion pertaining to the period, on the basis of the fair value assessment of the entire plan, carried out by a leading expert in the sector.

Note 11. Financial payables

The financial payables are broken down as follows:

	30.06.2021	31.12.2020	Change
Non‐current financial payables	58,449	83,656	(25,207)
Current financial payables	75,681	57,766	17,915
Total	134,130	141,422	(7,292)

The breakdown of this item is detailed below:

	30.06.2021	31.12.2020	Change
Borrowings from bank	123,100	130,753	(7,653)
Leasing financial payables	9,719	9,138	581
Payables to factoring companies	1,115	1,500	(385)
Bank overdrafts	196	31	165
Total	134,130	141,422	(7,292)

The increase in borrowings from bank in the period is mainly due to repayments of instalments due in the half‐year, net of the MD Group's contribution acquired during the period, amounting to €1,544 thousand at 30 June 2021.

Covenants

Some loan agreements require the Group to comply with financial covenants, measured on a half‐yearly basis as at 30 June and 31 December, summarised in the following table:

Bank	Company	Covenants		Frequency	Reference financial statements
Club Deal	Datalogic S.p.A.	NFP/EBITDA 2.75		Half‐year	Consolidated
E.I.B.	Datalogic S.p.A.	NFP/EBITDA 2.75		Half‐year	Consolidated

As at 30 June 2021, all the covenants were fulfilled.

Note 12. Net deferred taxes

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 in compliance with the assumptions of the future recoverability of the temporary differences from which they originated, i.e. on the basis of strategic plans of an economic and tax nature.

The temporary differencesthat generate deferred tax assets are mainly represented by tax losses and taxes paid abroad, provisions for risks and charges, and exchange rate adjustments. Deferred tax liabilities are mainly attributable to temporary differences for exchange rate adjustments and statutory and tax differences of the amortisation/depreciation schedules of tangible and intangible assets.

	30.06.2021	31.12.2020	Change
Deferred tax assets	53,749	41,101	12,648
Deferred tax liabilities	(17,005)	(16,217)	(788)
Net deferred taxes	36,744	24,884	11,860

Change in deferred taxes is mainly due to the release of deferred taxes recognised on incomes which has become taxable over the year, represented by gains on exchange rates and dividends from investee companies, as well as exchange rate effects.

The increase in deferred tax assets compared to the previous year is attributable to the revaluation of some patents by the subsidiary Datalogic IP Tech S.r.l. pursuant to art. 110, co. 1 ‐ 7, of Legislative Decree 104/2020 (the so‐called "August Decree", hereinafter also the "Revaluation Law"), converted with amendments by Law 126/2020. This revaluation, allowed by the national accounting standards adopted by the subsidiary, was eliminated in the preparation of these consolidated financial statements resulting in the registration of deferred tax assets for €10,636 thousand.

Deferred tax assets include assets related to receivables for taxes paid abroad, the recoverability of which is subject to time limits. Group Management reviewed the estimates of taxable income, based on the information currently available, in order to check the recoverability of the recorded assets. After having completed these analyses, the Directors deemed that, to the date, no recoverability risks are present.

Note 13. Post‐employment benefits

The breakdown of changes in the "Post‐employment benefits" item as at 30 June 2021 and 30 June 2020 is shown below:

	2021	2020
As at 1 January	6,862	7,026
Accrual	928	903
Payments	(1,110)	(726)
Acquisitions	460	‐
Social security receivables for post‐employment benefits	(77)	(351)
Other movements	22	‐
As at 30 June	7,085	6,852

Note 14. Provisions for risks and charges

The breakdown of the "Provisions for risks and charges" item is as follows:

	30.06.2021	31.12.2020	Change
Provisions for risks and charges, current	3,964	3,852	112
Provisions for risks and charges, non‐current	4,590	4,375	215
Total	8,554	8,227	327

The detailed breakdown of and changes in this item are presented below:

	31.12.2020	Increases	(Uses) and	Acquisitions	Exchange	30.06.2021
			(Releases)		diff.
Product warranty provision	7,225	192	(71)	5	2	7,353
Others	1,003	420	(372)	163	(13)	1,201
Total	8,227	612	(443)	168	(11)	8,554

The "Product warranty provision" item covers the estimated cost of repairing products sold up to 30 June 2021 and covered by a warranty period. It amounts to €7,353 thousand (of which €4,090 thousand long‐term) and is considered sufficient in relation to the specific risk it covers. The increase compared to the previous year is related to the increase in sales volumes for the period.

The "Others" item includes primarily allocations made against possible tax liabilities, employment disputes and agents' supplementary indemnity. The Group is currently involved in some minor disputes, the risk of which has been assessed by the Group's experts as possible, and no allocations were made in relation to them, as provided for by IAS 37.

Note 15. Trade and other payables

	30.06.2021	31.12.2020	Change
Trade payables	129,337	95,455	33,882
Contract liabilities ‐ customer advances	2,056	1,307	749
Third-party trade payables	131,393	96,762	34,631
Payables to associates	25	194	(169)
Payables to related parties	-	50	(50)
Total Trade payables	131,418	97,006	34,412
Other payables ‐ current accrued liabilities and deferred income	50,231	42,175	8,056
Other payables ‐ non‐current accrued liabilities and deferred income	15,807	16,070	(263)
Total Other payables - accrued income and prepaid expenses	66,038	58,245	7,793
Less: non‐current portion	15,807	16,070	(263)
Current portion	181,649	139,181	42,468

Trade payables amounted to €131,418 thousand, increased by €34,412 thousand compared to the end of the previous year. The amount relating to the company MD Microdetectors is € 4,900 thousand. The increase in the period is attributable to the recovery in the volumes of purchases, especially of materials, related to the growth in revenues.

Other payables – accrued liabilities and deferred income

The detailed breakdown of this item is as follows:

	30.06.2021	31.12.2020	Change
Non‐current accrued liabilities and deferred income	15,807	16,070	(263)
Other short‐term payables:	29,785	23,152	6,633
Payables to employees	21,358	15,177	6,181
Payables to pension and social security agencies	6,204	5,808	396
Other payables	2,223	2,167	56
VAT payables	3,413	3,217	196
Current accrued liabilities and deferred income	17,033	15,806	1,227
Total	66,038	58,245	7,793

Payables to employees represents the amount due for salaries and vacations accrued by employees as at 30 June 2021, as well as variable components of remuneration.

The item "Accrued liabilities and deferred income" is mainly composed of deferred income related to multi‐annual maintenance contracts. The increase in the period is due to the signing of new contracts.

INFORMATION ON THE INCOME STATEMENT

Note 16. Revenues

Revenues divided by type are shown in the following table:

		Half year ended
	30.06.2021	30.06.2020	Change
Revenues from sale of products	273,411	212,032	61,379
Revenues from services	18,599	18,382	217
Total Revenues	292,010	230,414	61,596

In the first half of 2021, consolidated net revenues amounted to €292,010 thousand, increasing by 26.7% compared to €230,414 thousand in the same period of 2020. The Group's revenues, divided by recognition method and business segment, are broken down as follows:

Revenues broken down by recognition method	Datalogic	Informatics	Adjustments	30.06.2021
Revenues from the sale of goods and services ‐ point in time		258,287 6,482	(428)	264,341
Revenues from the sale of goods and services ‐ over time		25,173 2,496		27,669
Total	283,460	8,978	(428)	292,010

Revenues broken down by recognition method	Datalogic	Informatics	Adjustments	30.06.2020
Revenues from the sale of goods and services ‐ point in time		203,510 5,865	(634)	208,741
Revenues from the sale of goods and services ‐ over time		19,674 1,999		21,673
Total	223,184	7,864	(634)	230,414

The Group recognisesrevenuesfrom the sale of goods and servicesin a specific moment, when the control of the assets has been transferred to the customer, generally upon delivery of the good or the rendering of the service.

Conversely, revenues are generally recognised over time, based on the stage of completion of contract performance obligations. This item includes revenues resulting from contracts and postponement contracts related to multi‐annual warranties.

Revenues broken down by type	Datalogic	Informatics	Adjustments	30.06.2021
Sale of goods		267,697 6,142	(428)	273,411
Sale of services		15,763 2,836		18,599
Total	283,460	8,978	(428)	292,010

Revenues broken down by type	Datalogic	Informatics	Adjustments	30.06.2020
Sale of goods		207,211 5,453		(632) 212,032
Sale of services		15,973 2,411	(2)	18,382
Total	223,184	7,864	(634)	230,414

Note 17. Cost of goods sold and operating costs

The following table shows the trends in cost of goods sold and operating costs as at 30 June 2021, compared with the same period of the previous year, including non‐recurring costs and revenues.

	Half year ended
	30.06.2021	30.06.2020	Change
Cost of goods sold	158,459	126,172	32,287
Operating costs	106,047	106,599	(553)
Research and development expenses	28,909	29,317	(408)
Distribution expenses	48,567	51,601	(3,034)
General and administrative expenses	27,094	24,328	2,766
Other operating expenses	1,477	1,353	124
Total	264,505	232,771	31,734

Cost of goods sold

The Cost of goods sold as at 30 June 2021 amounted to €158,459 thousand and, compared to the first half of 2020, increased by 25.6% although the incidence on revenues remained substantially unchanged, from 54.8% in the first half of 2020 to 54.3%. The change compared to the same half of the previous year benefited from the efficiencies achieved on the cost of materials, partially absorbed by the greater impact of procurement undertaken to cope with the shortage of certain electronic components.

Operating costs

Thanks to the cost control plan implemented as from 2020, Operating Costs are in line with the first half of 2020. The incidence on turnover fell from 46.3% to 36.3%, an improvement of 10.0%.

"Research and development expenses" amounted to €28,909 thousand and were slightly lower than in the same period of the previous year, with a percentage incidence on turnover of 9.9% (12.7% in the first half of the previous year), in addition to efficiencies, including of a structural nature; the decrease in spending is attributable to the completion of some development projects in the mobile segment and the strategy of selectivity of investments in a rapidly evolving market context.

"Distribution expenses" totalled €48,567 thousand, a significant decrease compared to the same half of 2020, partly due to the greater efficiencies of the new organisational model of the sales structure, and to the postponement of trade fairs and commercial events that have still not resumed due to the current pandemic situation.

"Administrative and general expenses" amounted to €27,094 thousand, an increase of 11.4%, with a lower incidence on turnover, which reduced from 10.6% to 9.3%.

"Other operating expenses", totalling €1,477 thousand, were essentially in line with the same period of the previous year and are represented by taxes (excluding on income) and other operating costs.

Breakdown of costs by type

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

	Half year ended
	30.06.2021	30.06.2020	Change
Purchases	150,621	96,926	53,695
Change in inventories	(32,966)	(1,796)	(31,170)
Labour cost	87,685	80,349	7,336
Amortisation, depreciation and write‐downs	15,412	14,436	976
Goods receipt and shipment expenses	15,241	8,657	6,584
Legal, tax and other advisory consultancies	3,679	2,545	1,134
Consumables and R&D material	3,219	3,461	(242)
Repairs and warranty provision accrual	2,122	1,350	772
EDP expenses	2,576	2,742	(166)
Travel and meetings expenses	1,593	2,703	(1,110)
Royalties	1,461	1,466	(5)
Building expenses	1,150	1,402	(252)
R&D technical consultancies	1,123	2,690	(1,567)
Marketing expenses	1,102	2,509	(1,407)
Directors' remuneration	1,070	398	672
Utilities	1,036	1,001	35
Telephone expenses	883	1,105	(222)
Sundry service costs	811	762	49
Commissions	779	543	236
Expenses for plant and machinery and other assets	724	820	(96)
Quality certification expenses	664	2,969	(2,305)
Audit Fees	525	511	14
Recruitment Fees	517	312	205
Subcontracted work	510	91	419
Insurances	449	427	22
Vehicle expenses	410	440	(30)
Entertainment expenses	184	367	(183)
Others	1,925	3,585	(1,660)
Total Cost of goods sold and operating costs	264,505	232,771	31,734

Costs for purchases and the change in inventories increased by €22,525 thousand (+23.7%) compared to the same period of 2020, while the incidence on turnover was substantially in line due to the higher volumes achieved with the resumption of the market despite the higher levels of procurement needed to deal with the shortage of the components.

Personnel costs amounted to €87,685 thousand (€80,349 thousand in the first half of 2020) increased by €7,336 thousand compared to the previous period (+9.1%), of which €3,466 thousand attributable to the change in the consolidation area following the acquisition of MD.

In the comparison period, the Group had recourse to socialshock absorbers as well asto the use of holiday entitlements which it did not benefit from in the first half of 2021. The incidence of labour costs on turnover decreased by ‐4.8% compared to the first half of 2020.

The detailed breakdown of labour costs is as follows:

	Half year ended
	30.06.2021	30.06.2020	Change
Wages and salaries	67,637	62,674	4,963
Social security charges	13,847	12,657	1,190
Post‐employment benefits	1,353	1,112	241
Severance indemnities and similar benefits	835	866	(31)
Other labour costs	4,013	3,040	973
Total	87,685	80,349	7,336

The item "amortisation, depreciation and write-downs", amounting to €15,412 thousand, increased by €976 thousand, due to higher investments and the consolidation of MD Group.

"Goods receipt and shipment expenses", amounting to €15,241 thousand, increased by €6,584 thousand compared to the same period of the previous year, with a slight increase in the percentage on turnover, which stood at 5.0% (4.0% in the first half of 2020). The trend is attributable to the greater cost of logistics management in part due to the pandemic situation and in part to procurement of materials for which there was a shortage, which require further differentiation of supply channels.

"Quality Certification Expenses", amounting to €664 thousand, decreased by €2,305 thousand compared to 2020, following the lower number of certifications required in the first half of 2021 for the completion of the various product development projects concluded at the end of 2020.

Expenses for "R&D technical consultancies" amounted to €1,123 thousand, down by €1,567 thousand compared to the previous year due to the different stages of development of the ongoing projects.

The "Travel and meetings expenses" item, amounting to €1,593 thousand, recorded a 41.0% decrease, with a better percentage incidence on turnover compared to the previous period (‐0.6%), following the restrictive measures imposed by the pandemic, which are still limiting site visits to customers, events and trade fairs.

Note 18. Other revenues

	Half year ended
	30.06.2021	30.06.2020	Change
Grants to Research and Development expenses	49	1,179	(1,130)
Miscellaneous income and revenues	510	1,417	(907)
Rents	13	53	(40)
Income on disposal of fixed assets	79	16	63
Contingent assets	28	0	28
Others	33	26	7
Total	712	2,691	(1,979)

The change in the "Grants to Research and Development expenses" item compared to the first half of 2020 is mainly due to the tax receivables for R&D activities.

Note 19. Financial Income/(Expenses)

	Half year ended
	30.06.2021	30.06.2020	Change
Financial income/(expenses)	(908)	(1,103)	195
Foreign exchange gains/losses	977	(3,179)	4,156
Fair value	102	(672)	774
Bank expenses	(608)	(423)	(185)
Dividends	114	84	30
Others	(34)	135	(169)
Total Net Financial Income/(Expenses)	(357)	(5,158)	4,801

The net financial income/(expenses) item was negative for €357 thousand, an improvement of €4,801 thousand compared to a negative €5,158 thousand in the same period of 2020, due mainly to the favourable trend of exchange rates and an improvement in the Fair value of investments item, which was negative in the first half of 2020 for €672 thousand.

Note 20. Taxes

	Half year ended
	30.06.2021	30.06.2020	Change
Profit/(Loss) before taxes from continuing operations	27,859	(4,824)	32,683
Income taxes	13,220	(273)	13,493
Deferred taxes	(8,895)	(4,072)	(4,823)
Total	4,325	(4,345)	8,670
Tax Rate	15.5%	90.1%	-74.5%

The tax rate as at 30 June 2021, equal to 15.5% (90.1% as at 30 June 2020), reflects the distribution of the net operating margin for the period among the various geographical areas in which the Group operates. The tax burden in the first half of 2020 was positive mainly due to the total tax losses recorded in the period. The Deferred taxes include the increase in deferred tax assets relating to the revaluation of some patents by the subsidiary Datalogic IP Tech S.r.l. as described above.

Note 21. Earnings/loss per share

Earnings/loss per share

As required by IAS 33, information on data used to calculate the earning/loss per share is provided below. Basic EPS is calculated by dividing the profit and/or loss for the period, attributable to the shareholders of the Parent Company, by the weighted average number of ordinary shares outstanding during the reference period. For the purposes of calculation of diluted EPS, the weighted average number of outstanding shares is determined assuming translation of all potential shares with a dilutive effects (such as the Share Plan), and the Group's net profit is adjusted for the post‐ tax effects of translation.

	Half year ended
	30.06.2021	30.06.2020
Group profit/(loss) for the period	23,534	(13)
Average number of shares (thousands)	57,904	57,578
Basic earnings/(loss) per share	0.41	0.00
Group profit/(loss) for the period	23,534	(13)
Average number of shares (thousands) ‐ Diluted effect	58,644	57,347
Diluted earnings/(loss) per share	0.40	0.00

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

For the definition of "Related parties", see both IAS 24, approved by EC Regulation no. 1725/2003, and the Procedure for Transactions with Related Parties approved by the Board of Directors on 4 November 2010 (most recently amended on 24 July 2015), available on the Company's website www.datalogic.com. The Parent Company of the Datalogic Group is Hydra S.p.A.

Intercompany transactions are executed as part of the ordinary operations and at arm'slength conditions. Furthermore, there are other relationships with related parties, always carried out as part of ordinary operations and at arm's length conditions, of an immaterial amount and in accordance with the "Procedure for Transactions with Related Parties", chiefly with Hydra S.p.A. or entities under joint control (with Datalogic S.p.A.), or with individuals that carry out the coordination and management of Datalogic S.p.A. (including entities controlled by the same and close relatives).

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

Pursuant to art. 5, paragraph 8, of the Consob Regulations, it should be noted that, over the period 01.01.2021 – 30.06.2021, the Company's Board of Directors did not approve any relevant transaction, as set out by art. 3, paragraph 1, letter b) of the Consob Regulations, or any transaction with minority related parties that had a significant impact on the Group's equity position or profit/(loss).

	Parent Company	Company controlled by Chairman of BoD	Companies not consolidated on a line-by line basis	30.06.2021
Equity investments	‐	‐	539	539
Trade receivables and other, accrued income, prepaid expenses	‐	9	1,836	1,845
Receivables pursuant to tax consolidation	1,424	‐	‐	1,424
Payables pursuant to tax consolidation	7,733	‐	‐	7,733
Trade payables and other, accrued liabilities, deferred income	‐	‐	25	25
Operating expenses	‐	596	159	755
Revenues and other operating revenues	‐	‐	4,382	4,382
Other revenues	‐	0	107	107

NUMBER OF EMPLOYEES

	30.06.2021	30.06.2020	Change
Datalogic	2,929	2,863	66
Solution Net Systems	0	33	(33)
Informatics	75	76	(1)
Total	3,004	2,972	32

The Chairman of the Board of Directors (Mr. Romano Volta)

ANNEXES

ANNEX 1

Certification pursuant to Art. 81‐ter of CONSOB Regulation no. 11971 of 14 May 1999 and following amendments and supplements

1. The undersigned, Ms Valentina Volta, as Chief Executive Officer, and Ms Laura Bernardelli, as Manager in charge of drawing up Datalogic S.p.A.'s accounting statements, and also taking account of provisions set forth by art. 154‐bis, par. 3 and 4, of Italian Legislative Decree no. 58 of 24 February 1998, hereby certify:
the adequacy of the information on Company operations and
the actual application of the administrative and accounting procedures for the formation of the condensed half‐year financial statements, during the first half of 2021.
1. The assessment of the adequacy of the administrative and accounting procedures for the formation of the condensed half‐year financial statements as at 30 June 2021 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.
1. We also certify that:
3.1. The Condensed Half‐Year Financial Statements:
- a) were prepared in accordance with international accounting standards (IFRS), recognised in the European Union pursuant to Regulation (EC) no. 1606/2002 of the European Parliament and the Council of 19 July 2002;
- b) correspond to the accounting records;
- 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 other companies included in the consolidation.
3.2 The Half‐Year Financial Report includes references to key events, which occurred in the first six months of the financial year, and their impact on the condensed half‐year financial statements, together with a description of the main risks and uncertainties for the remaining six months of the year. The Half‐Year Financial Report includes also a reliable analysis on information on significant transactions with related parties.

Lippo di Calderara di Reno, 5 August 2021

Chief Executive Officer

Valentina Volta

Manager in charge of drawing up the accounting statements

Laura Bernardelli

ANNEXES

ANNEX 2

CONSOLIDATION AREA

The Consolidated Half‐Year Financial Report includes interim reports of the Parent Company and the companies that are directly and/orindirectly controlled by the Parent Company or on which the latter has a significant influence. Reports of subsidiaries were duly adjusted, as necessary, to render them consistent with the accounting criteria of the Parent Company. The companies included in the scope of consolidation as at 30 June 2021, consolidated on a line‐by‐line basis, are disclosed hereunder:

Company	Registered office	Share capital		Total Shareholders' Equity (€/000)	Profit/loss for the period (€/000)	% Ownership
Datalogic S.p.A.	Bologna – Italy	€	30,392,175	348,350	6,429
Datalogic Real Estate France Sas	Courtabeuf Cedex – France	€	2,227,500	3,810	43	100%
Datalogic Real Estate UK Ltd.	Redbourn ‐ England	GBP	3,500,000	4,637	26	100%
Datalogic IP Tech S.r.l.	Bologna – Italy	€	65,677	36,247	10,316	100%
Informatics Holdings, Inc.	Plano, Texas ‐ USA	USD	1,568	15,162	728	100%
Wasp Barcode Technologies Ltd	Redbourn ‐ England	GBP	0	268	9	100%
Datalogic (Shenzhen) Industrial Automation Co. Ltd.	Shenzhen ‐ China	CNY	2,136,696	3,851	133	100%
Datalogic Hungary Kft	Balatonboglar ‐ Hungary	HUF	3,000,000	3,142	798	100%
Datalogic S.r.l.	Bologna – Italy	€	10,000,000	169,228	27,149	100%
Datalogic Slovakia S.r.o.	Trnava ‐ Slovakia	€	66,388	2,204	681	100%
Datalogic USA Inc.	Eugene, OR ‐ USA	USD	100	215,832	1,726	100%
Datalogic do Brazil Comercio de Equipamentos e Automacao Ltda.	Sao Paulo ‐ Brazil	BRL	20,257,000	170	71	100%
Datalogic Technologia de Mexico S.r.l.	Colonia Cuauhtemoc ‐ Mexico	MXN	0	(345)	(28)	100%
Datalogic Scanning Eastern Europe GmbH	Langen ‐ Germany	€	25,000	3,761	(118)	100%
Datalogic Australia Pty Ltd	Mount Waverley (Melbourne) ‐ Australia	AUD	3,188,120	1,140	68	100%
Datalogic Vietnam LLC	Vietnam	USD	3,000,000	15,688	2,495	100%
Datalogic Singapore Asia Pacific Pte Ltd.	Singapore	SGD	3	2,378	355	100%
M.D. Micro Detectors S.p.A.	Modena ‐ Italy	€	2,000,000	11,920	802	100%
M.D. Micro Detectors (TIANJIN) CO., LTD.	Tianjin ‐ China	CNY	13,065,721	1,071	138	100%
Micro Detectors Ibérica, S.A.U.	Barcelona ‐ Spain	€	120,000	1,018	88	100%
Suzhou Mobydata Smart System Co. Ltd.	Suzhou, JiangSu ‐ China	CNY	161,224	5,251	756	51%

The following companies were consolidated using the equity method as at 30 June 2021:

Company	Registered office		Share capital	Total Shareholders' Equity (€/000)	Profit/loss for the period (€/000)	% Ownership
Datasensor Gmbh (*)	Otterfing ‐ Germany	€	150,000	12	10	30%
CAEN RFID S.r.l. (***)	Viareggio (LU) ‐ Italy	€		150,000 870	(233)	20%
R4I S.r.l. (***)	Benevento ‐ Italy	€		131,250 430	1	20%
Datalogic Automation AB (**)	Malmö, Sweden	SEK		100,000 1,128	618	20%
Solution Net Systems, Inc.(*)	Quakertown, PA ‐ USA	USD		5,904	1,583	15%

(*) data as at ³¹ December ²⁰¹⁹

(**) data as at ³⁰ June ²⁰²⁰

(***) data as at ³¹ December ²⁰²⁰

ANNEXES

ANNEX 3

RESTATEMENT OF SEGMENT DISCLOSURE

As envisaged by the International Accounting Standards on segment reporting, in the event of a reorganisation of the business segments, the comparative periods are restated to allow a like‐for‐like comparison. Below are the restated results for 2020 following the reorganisation of the commercial function launched in the first quarter and finalised in the fourth quarter of 2020, in which some revenue allocation logics to geographical areas and business segments have been partially redefined to ensure coverage of the various types of end‐user and partner customers, as well as geographical areas.

REVENUES BY GEOGRAPHICAL AREA

	30.06.2020 Reported	Restatement	30.06.2020 Restated
Italy	18,743	2,185	20,928
EMEAI (excluding Italy)	100,081	(2,172)	97,909
Total EMEAI	118,824	13	118,837
Americas	76,360	(13)	76,348
APAC	35,230		35,230
Total Revenues	230,414		230,414

REVENUES BY BUSINESS SEGMENT

	30.06.2020 Reported	Restatement	30.06.2020 Restated
Retail	90,858	(8,045)	98,903
Manufacturing	53,388	(1,301)	54,689
Transportation & Logistics	20,731	(1,547)	22,278
Healthcare	8,294	1,320	6,974
Channel	49,912	9,571	40,341
Total Revenues	223,184		223,184

Within of the reorganisation of the commercial function, the revenue allocation criteria were partially modified, assigning sales to the end‐users of partner customers, and previously classified in the industries, according to a criterion of predominance of turnover as communicated by the distribution network, to the Channel sector. This category includesrevenues not directly attributable to the other identified segments. The new approach allows for an even more accurate measurement of the performance of the individual sectors, to which only the revenues relating to direct sales made to end‐user customers based on their respective segment are attributed. The rationale behind the change in approach is guided by the desire to make the measurement of market trends of the individual sectors more accurate and prompter in order to strengthen the effectiveness and timeliness of the strategic decisions of go to market.

ANNEXES

ANNEX 4

RECONCILIATION OF ALTERNATIVE PERFORMANCE INDICATORS (NON-GAAP MEASURES)

The following table shows the reconciliation between EBITDA and Adjusted EBITDA as at 30 June 2021, compared with 30 June 2020.

	30.06.2021		30.06.2020		Change
Adjusted EBITDA	46,840	16.04%	18,365	7.97%	28,475
Cost of goods sold	140	0.05%	1,637	0.71%	(1,497)
Research and Development expenses	779	0.27%	102	0.04%	677
Distribution expenses	630	0.22%	465	0.20%	165
General and administrative expenses	1,567	0.54%	1,096	0.48%	471
Other operating (expenses)/income	97	0.03%	295	0.13%	(198)
Non-recurring costs/revenues	3,212	1.10%	3,595	1.56%	(383)

EBITDA	43,628	14.94%	14,770	6.41%	28,858

Non‐recurring costs and revenues are shown hereunder.

	30.06.2021	30.06.2020	Change
Covid‐19	0	1943	(1,943)
Reorganisation	2,839	1191	1,648
Other	374	461	(87)
Total	3,212	3,595	(383)

Non‐recurring costs and revenues refer to income and charges recognised and incurred in relation to some reorganisation processes targeted at the optimisation of the sales structure, of the industrial footprint and the offices. These processes involved an assessment of the existing organisational structure in the aforementioned areas, as well as the execution of the plans to implement the new model, which involved, among other things, also some modifications to internal processes, information systems and the management control model.

AI Terminal

Datalogic

4452_10-q_2021-08-05_53635c0f-a137-484d-ad3c-66cc5743fd00.pdf

TABLE OF CONTENTS

EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS page 26

ANNEXES

DISCLAIMER

GROUP STRUCTURE

COMPOSITION OF CORPORATE BODIES

Board of Directors (1)

Board of Statutory Auditors (3)

Audit and Risk, Remuneration and Appointments Committee

Independent Auditor (4)

Report on Operations

REPORT ON OPERATIONS

INTRODUCTION

GROUP PROFILE

HIGHLIGHTS OF THE PERIOD

ALTERNATIVE PERFORMANCE INDICATORS (NON-GAAP MEASURES)

GROUP RECLASSIFIED ECONOMIC RESULTS

GROUP ECONOMIC RESULTS BY DIVISION FOR THE PERIOD

REVENUES BY DIVISION

EBITDA BY DIVISION

DATALOGIC DIVISION

Retail

Manufacturing

Transportation & Logistics

Healthcare

Channel

INFORMATICS DIVISION

GROUP RECLASSIFIED ECONOMIC RESULTS FOR THE SECOND QUARTER

GROUP DIVISIONAL ECONOMIC RESULTS FOR THE SECOND QUARTER

REVENUES BY DIVISION

EBITDA BY DIVISION

DATALOGIC DIVISION

Retail

Manufacturing

Transportation & Logistics

Healthcare

Channel

INFORMATICS DIVISION

GROUP RECLASSIFIED STATEMENT OF FINANCIAL POSITION FOR THE PERIOD

SIGNIFICANT EVENTS DURING THE PERIOD

SUBSEQUENT EVENTS

BUSINESS OUTLOOK

SECONDARY LOCATIONS

Consolidated Financial Statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF CASH FLOW

CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY

Explanatory Notes

EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

GENERAL INFORMATION

BASIS OF PRESENTATION

1) General criteria

2) Financial statements

3) New accounting standards, interpretations and amendments adopted by the Group

4) New accounting standards issued but still not in force

5) Use of estimates and assumptions

6) Consolidation area

7) Translation criteria of items in foreign currency

BUSINESS COMBINATION

SEGMENT DISCLOSURE

INFORMATION ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS

Note 1. Tangible assets

Note 2. Intangible assets

Goodwill

Development costs, Other intangible assets and Assets in progress and payments on account

Note 3. Right‐of‐use assets

Note 4. Equity investments in associates

Note 5. Financial assets and liabilities by category

Financial assets

Financial liabilities

Fair value ‐ hierarchy

Note 6. Financial assets

Note 7. Trade and other receivables