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Datalogic
Interim / Quarterly Report • Nov 11, 2022
4452_ir_2022-11-11_34358586-0436-4fa2-8e3e-16ea52ec1a38.pdf
Interim / Quarterly Report
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Consolidated Interim Report as of September 30, 2022
Consolidated Interim Report September 30, 2022
DATALOGIC GROUP 1
TABLE OF CONTENTS
| STRUCTURE OF THE GROUP | page 3 |
|---|---|
| COMPOSITION OF THE 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
- ⋅ Reconciliation of Alternative Performance Indicators
- ⋅ Restatement 2021
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 Chair (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 Maria Grazia Filippini Independent Director Pietro Todescato Executive Director
Board of Statutory Auditors(3)
Diana Rizzo Chair Elena Lancellotti Statutory Auditor Roberto Santagostino Statutory Auditor
Giulia De Martino Alternate Statutory Auditor Eugenio Burani Alternate Statutory Auditor Patrizia Cornale Alternate Statutory Auditor
Audit and Risk, Remuneration and Appointments Committee
Angelo Manaresi Chair 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 of December 31, 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 of December 31, 2024.
- (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 April 30, 2019 and will remain in office until the Shareholders' Meeting held for the approval of the financial statements as of December 31, 2027.
Report on Operations
Consolidated Interim Report as of September 30, 2022
DATALOGIC GROUP 5
REPORT ON OPERATIONS
INTRODUCTION
This Consolidated Interim Report as of September 30, 2022 was drawn up pursuant to Art. 154 of the T.U.F. (Consolidated Law on Finance) and was prepared in compliance with the International Accounting Standards (IAS/IFRS) endorsed by the European Union.
The amounts included in 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 a global technological leader in the markets of automatic data capture and process automation markets. 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 the 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 Datalogic Group's key operating and financial results as of September 30, 2022 and the comparison with the same period of the previous year. The results from that period have been restated in compliance with accounting principle IAS 1 (for details refer to Annex 4 of this document).
| 30.09.2022 | % on | 30.09.2021 | % on | Change | % Ch. | % Ch. | |
|---|---|---|---|---|---|---|---|
| Revenues | Restated | Revenues | net FX | ||||
| Revenues | 476,496 | 100.0% | 431,945 | 100.0% | 44,551 | 10.3% | 4.8% |
| Adjusted EBITDA | 56,288 | 11.8% | 66,155 | 15.3% | (9,867) | -14.9% | -8.8% |
| Adjusted EBIT | 33,263 | 7.0% | 45,849 | 10.6% | (12,586) | -27.5% | -17.4% |
| EBIT | 28,092 | 5.9% | 37,402 | 8.7% | (9,310) | -24.9% | -12.6% |
| Net Profit/(Loss) for the period | 15,839 | 3.3% | 30,275 | 7.0% | (14,436) | -47.7% | -32.4% |
| Net financial position (NFP) | (83,640) | (38,039) | (45,601) |
The income statement and balance sheet figures as of September 30, 2022 include the balances of Pekat Vision, consolidated following the acquisition completed on March 21, 2022.
As of September 30, 2022, the Group achieved revenues of €476.5 million, with a growth of 10.3% (4.8% at constant exchange rates) compared to €431.9 million recorded in the same period of 2021. Organic growth net of exchange rate effect was 3.5%.
Turnover related to the sale of new products (Vitality Index) reached 15.5% of total turnover as of September 30, 2022, compared with 11.8% in the comparison period.
Adjusted EBITDA margin of 11.8% (15.3% in the same period of 2021), although improving compared to the result of the first half of 2022, continues to be negatively impacted by inflationary phenomena and reduced supply chain availability, which have increased production and distribution costs since the second half of 2021, although partially offset by progressive sales price adjustment actions.
Adjusted EBITstood at 7.0% of revenues due to the same dynamics and amounted to €33.3 million (€45.8 million as of September 30, 2021).
Net profit for the period was €15.8 million (3.3% of revenues), compared to €30.3 million for the nine months of 2021 (7.0% of revenues).
Net Debt as of September 30, 2022 is €83.6 million (€26.1 million as of December 31, 2021),with a negative change of €57.6 million, mainly due to cash absorption of working capital, but also due to investments and acquisitionsfor a total of €31,8 million, as well as dividends distribution for€16.9 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 as that adopted by other groups and the indicators might not be comparable with their indicators. 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 December 3, 2015, refer only to the performance of the accounting period that is the object of this Consolidated Interim Report on Operations 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.
- Special Items: items resulting from non-recurring operations, restructuring activities, business reorganisations, fixed assets, devaluation, additional costs linked to business acquisitions or disposals including amortisation resulting from the recognition of the purchase price allocation and any other items not related to the ordinary course of business.
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) or Gross Operating Margin: this indicator is defined as the profit/(loss) for the period from continuing operations before depreciation and amortisation of tangible and intangible assets and rights of use, financial income/expenses and income taxes.
- Adjusted EBITDA: this indicator is defined as the 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, income taxes and special Items.
- EBIT (Earnings Before Interest, Taxes) or Operating Result: this indicator is defined as the profit/(loss) for the period from continuing operations before financial income/expenses and income taxes.
- Adjusted EBIT: this indicator is defined as the profit/(loss) for the period from continuing operations before financial income/expenses, income taxes and special Items.
- 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 current 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 Debt): this indicator is calculated in accordance with the provisions of "Notice no. 5/21" of April 29, 2021 issued by Consob and referring to ESMA Guideline 32-382-1138 of March 4, 2021.
- Free Cash Flow: this indicator is calculated as the cash flow from operating activities, net of investments in 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 shows the main economic components of the period compared with the same previous period:
| 30.09.2022 | 30.09.2021 Restated |
Change | % Ch. | |||
|---|---|---|---|---|---|---|
| Revenues | 476,496 | 100.0% | 431,945 100.0% | 44,551 | 10.3% | |
| Cost of goods sold | (275,515) | -57.8% | (238,332) | -55.2% | (37,183) | 15.6% |
| Gross Operating Margin | 200,981 | 42.2% | 193,613 | 44.8% | 7,368 | 3.8% |
| Research and Development expenses | (45,682) | -9.6% | (41,205) | -9.5% | (4,477) | 10.9% |
| Distribution expenses | (81,673) | -17.1% | (72,665) | -16.8% | (9,008) | 12.4% |
| General and administrative expenses | (39,807) | -8.4% | (35,305) | -8.2% | (4,502) | 12.8% |
| Other (Expenses) and Income | (556) | -0.1% | 1,411 | 0.3% | (1,967) | n.a. |
| Total operating expenses and other costs | (167,718) | -35.2% | (147,764) | -34.2% | (19,954) | 13.5% |
| Adjusted EBIT | 33,263 | 7.0% | 45,849 | 10.6% | (12,586) | -27.5% |
| Special Items -Other (Expenses) and Income | (1,777) | -0.4% | (4,563) | -1.1% | 2,786 | -61.1% |
| Special Items - D&A from acquisitions | (3,394) | -0.7% | (3,884) | -0.9% | 490 | -12.6% |
| EBIT | 28,092 | 5.9% | 37,402 | 8.7% | (9,310) | -24.9% |
| Financial income/(expenses) | (2,109) | -0.4% | (2,034) | -0.5% | (75) | 3.7% |
| Foreign exchange gains/(losses) | (6,667) | -1.4% | 767 | 0.2% | (7,434) | n.a. |
| EBT | 19,316 | 4.1% | 36,135 | 8.4% | (16,819) | -46.5% |
| Taxes | (3,477) | -0.7% | (5,860) | -1.4% | 2,383 | -40.7% |
| Net Profit/(Loss) for the period | 15,839 | 3.3% | 30,275 | 7.0% | (14,436) | -47.7% |
| Special Items -Other (Expenses) and Income | (1,777) | -0.4% | (4,563) | -1.1% | 2,786 | -61.1% |
| Special Items - D&A from acquisitions | (3,394) | -0.7% | (3,884) | -0.9% | 490 | -12.6% |
| Depreciation of tangible assets and rights of use |
(13,513) | -2.8% | (12,647) | -2.9% | (866) | 6.8% |
| Amortisation of intangible assets | (9,512) | -2.0% | (7,659) | -1.8% | (1,853) | 24.2% |
| Adjusted EBITDA | 56,288 | 11.8% | 66,155 | 15.3% | (9,867) | -14.9% |
Consolidated revenues at€476.5 million as of September 30, 2022, grew 10.3% compared to €431.9 million achieved as of September 30, 2021; at constant exchange rates, revenues were increased by 4.8%.
The breakdown by geographical area of Group's revenues, compared with the same period of the previous year, is reported below:
| 30.09.2022 | % | 30.09.2021 | % | Change | % Ch. | % Ch. net FX | |
|---|---|---|---|---|---|---|---|
| Restated | |||||||
| Italy | 46,656 | 9.8% | 43,652 | 10.1% | 3,004 | 6.9% | 6.9% |
| EMEAI (excluding Italy) | 209,318 | 43.9% | 197,667 | 45.8% | 11,651 | 5.9% | 4.8% |
| Total EMEAI | 255,974 | 53.7% | 241,319 | 55.9% | 14,655 | 6.1% | 5.2% |
| Americas | 148,813 | 31.2% | 123,984 | 28.7% | 24,830 | 20.0% | 6.9% |
| APAC | 71,709 | 15.0% | 66,642 | 15.4% | 5,066 | 7.6% | -0.7% |
| Total Revenues | 476,496 100.0% | 431,945 100.0% | 44,551 | 10.3% | 4.8% |
Americas drive Group revenues growth with a rate of 20%. EMEAI region closes with a 6.1% increase in revenues compared to the same period in 2021, with Italy increasing of 6.9%.
Gross operating margin, at €201.0 million (42.2% of turnover) compared to €193.6 million as of September 30, 2021 (44.8% of turnover), was eroded by 2.6 percentage points compared to the same period in 2021, due to the widely
known inflationary phenomena on procurement, although gap on the same period of previous year decreased compared to that made in the first semester.
Operating expenses and other costswere €167.7 million (€147.8 million as of September 30, 2021), slightly increasing by a percentage point as a percentage of turnover,from 34.2% to 35.2%.
Research and development expenses were €45.7 million, reaching an incidence on revenues of 9.6%, substantially in line with September 30, 2021, when the incidence was 9.5%. Total Research and Development spending, gross of investments, amounted to €47.0 million (€42.3 million in the same period of the previous year) with a percentage on turnover of 9.9%, in line with the same period in 2021 (9.8%).
Distribution expenseswere €81.7 million, increased by 12.4% from September 30, 2021 (€72.7 million in 2021) with a percentage on turnover increasing by 0.3 percentage points, from 16.8% to 17.1%. The change in the period is due to more commercial and marketing activities, as well as the resumption of participation in trade fairs and events and visits to customers, compared to the previous year in which expenses werestill limited from pandemic effects.
General and Administrative Expenseswere €39.8 million as of September 30, 2022, recording a slight increase in the incidence on turnover of approximately 0.2 percentage points, from 8.2% to 8.4%, mainly due to the increase in costs of utilities, EDP and depreciations.
Adjusted EBITDA was €56.3 million, with an Adjusted EBITDA margin at 11.8% of the turnover, marking a decline of 3.5 percentage points from the 15.3% recorded in the nine months of 2021. Despite continuing inflationary phenomena and critical supply issues, starting in the second quarter of the year, the Group gradually recovered operating margins thanks to actions on sales prices.
Adjusted EBIT was €33.3 million, 7.0% of revenues (10.6% as of September 30, 2021), also this in progressive improvement compared to the first part of the year, but still not in line with pre-inflationary conjuncture.
Net financial charges negative by €8.8 million, worsened by €7.5 million compared to September 30, 2021 as a result of a particularly unfavourable trend in exchange rate differences, mainly due to a strong US Dollar.
| Financial Income/(Expenses) | 30.09.2022 | 30.09.2021 | Change |
|---|---|---|---|
| Financial income/(expenses) | (1,327) | (1,337) | 10 |
| Foreign exchange differences | (6,667) | 767 | (7,434) |
| Fair value investments | (85) | 129 | (214) |
| Bank expenses | (1,044) | (912) | (132) |
| Dividends | 177 | 114 | 63 |
| Others | 170 | (28) | 198 |
| Total Net Financial Income/(Expenses) | (8,776) | (1,267) | (7,509) |
Net profit for the period was €15.8 million (3.3% of revenues), compared to €30.3 million on nine months of 2021(7.0% of revenues).
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 readers, 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, the newly acquired Pekat S.r.o. was 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 tables illustrated below show the comparison of the Revenues and Adjusted EBITDA achieved during the period compared with the same period of the previous year.
REVENUES BY DIVISION
| 30.09.2022 | % | 30.09.2021 Restated |
% | Change | % Ch. | % Ch. net FX |
|
|---|---|---|---|---|---|---|---|
| Datalogic | 464,195 | 97.4% | 419,131 | 97.0% | 45,064 | 10.8% | 5.4% |
| Informatics | 13,734 | 2.9% | 13,699 | 3.2% | 35 | 0.3% | -10.4% |
| Eliminations | (1,433) | -0.3% | (885) | -0.2% | (548) | ||
| Total Revenues | 476,496 | 100.0% | 431,945 | 100.0% | 44,551 | 10.3% | 4.8% |
ADJUSTED EBITDA BY DIVISION
| 30.09.2022 | % on | 30.09.2021 | % on | Change | % Ch. | |
|---|---|---|---|---|---|---|
| Revenues | Revenues | |||||
| Datalogic | 54,717 | 11.8% | 64,209 | 15.3% | (9,492) | -14.8% |
| Informatics | 1,813 | 13.2% | 1,965 | 14.3% | (152) | -7.7% |
| Eliminations | (242) | (19) | (223) | |||
| Total Adjusted EBITDA | 56,288 | 11.8% | 66,155 | 15.3% | (9,867) | -14.9% |
DATALOGIC DIVISION
As of September 30, 2022, Datalogic division recorded Revenues of €464.2 million, increasing by 10.8% compared to the same period of 2021. Adjusted EBITDA of the division amounted to €54.7 million, reaching 11.8% of the turnover (15.3% as of September 30, 2021). Below is the breakdown of Datalogic Division's revenues by industry:
| 30.09.2022 | % | 30.09.2021 | % | Change | % Ch. | % ch. net | |
|---|---|---|---|---|---|---|---|
| Restated | FX | ||||||
| Retail | 168,842 | 36.4% | 153,169 | 36.5% | 15,673 | 10.2% | 3.6% |
| Manufacturing | 132,850 | 28.6% | 120,507 | 28.8% | 12,343 | 10.2% | 6.2% |
| Transportation & Logistics | 68,936 | 14.9% | 58,762 | 14.0% | 10,174 | 17.3% | 11.5% |
| Healthcare | 12,266 | 2.6% | 13,921 | 3.3% | (1,655) | -11.9% | -16.8% |
| Channel | 81,300 | 17.5% | 72,772 | 17.4% | 8,528 | 11.7% | 7.1% |
| Total Revenues | 464,195 | 100.0% | 419,131 | 100.0% | 45,064 | 10.8% | 5.4% |
Retail sector, the main segment for the Group with 36.4% of divisional turnover (36.5% as of September 30, 2021) recorded an increase of 10.2% compared with the nine months of 2021, with a very positive trend both in the Asian area (+39.7%) and in the Americas, which closes the period with 29.6% growth, while EMEI is decreasing.
Manufacturing
Manufacturing sector achieved 10.2% growth as of September 30, 2022, driven mainly by last year's acquisition of the MD Group (now Datasensing), which enabled the completion of the range of sensors and safety devices. Americas and EMEAI lead the sector's performance, recording growth of 34.3% and 12.9%, respectively; APAC is slightly down, recording -4.7% compared to last year. Organic growth in the Manufacturing sector is 6.6%.
Transportation & Logistics
Transportation & Logistics is the fastest-growing segment globally where the Group reported overall growth of 17.3% (+11.5% at constant exchange rates) over the same period in 2021, with double-digit growths in all geographical areas.
Healthcare
Compared to the same period in 2021, the Healthcare sector declined by 11.9%, despite the positive result achieved in EMEAI (+4.4%), which failed to offset the slowdown in other geographical areas.
Channel
Sales through the distribution channel to small and medium-sized customers grew compared to the same period in 2021 (+11.7%), with positive performance in all geographic areas, particularly in EMEAI (+13.5%), followed by Americas (+11.6%).
INFORMATICS DIVISION
Informatics division achieved turnover of €13.7 million as of September 30, 2022 (€13.7 million as of September 30, 2021)substantiallyin line with the comparison period, thanks in particular to the exchange rate effect, net of which it recorded a decrease of 10.4%, completely due to exit from the "System ID" market and as a result of the company's strategic repositioning on higher valuebusiness segments, including the services segment, with the offer of Software as a Service (SaaS).
Adjusted EBITDA margin realised as of September 30, 2022 was 13.2%, a slight deterioration of 1.1 percentage points from 14.3% in the same period of the previous year, despite the decline in volumes, offset by improved margins in the higher-value segments on which the company has refined its strategic repositioning.
GROUP RECLASSIFIED ECONOMIC RESULTS FOR THE QUARTER
The following table summarises the Datalogic Group's key operating and financial results of the third quarter of 2022 in comparison with the same quarter of the previous year:
| Quarter ended | |||||||
|---|---|---|---|---|---|---|---|
| 30.09.2022 | % on | 30.09.2021 | % on | Change | % Ch. | % ch. | |
| Revenues | Restated | Revenues | net | ||||
| FX | |||||||
| Revenues | 161,897 | 100.0% | 141,869 | 100.0% | 20,028 | 14.1% | 6.9% |
| Adjusted EBITDA | 22,031 | 13.6% | 19,315 | 13.6% | 2,716 | 14.1% | 26.5% |
| Adjusted EBIT | 14,044 | 8.7% | 12,456 | 8.8% | 1,588 | 12.7% | 34.0% |
| EBIT | 12,465 | 7.7% | 9,708 | 6.8% | 2,757 | 28.4% | 55.7% |
| Net Profit/(Loss) for the period | 6,741 | 4.2% | 7,107 | 5.0% | (366) | -5.2% | 32.0% |
In the third quarter of 2022, revenues increased by €20.0 million, + 14.1% (+6.9% at constant exchange rates) reaching €161.9 million.
Following is the breakdown by geographical area of the Group revenues recorded in the third quarter of 2022, compared with the same quarter of 2021:
| 30.09.2022 | % | 30.09.2021 Restated |
% | Change | % Ch. | % ch. net FX |
|
|---|---|---|---|---|---|---|---|
| Italy | 14,947 | 9.2% | 14,350 | 10.1% | 597 | 4.2% | 4.0% |
| EMEAI (excluding Italy) | 70,874 | 43.8% | 65,873 | 46.4% | 5,001 | 7.6% | 6.3% |
| Total EMEAI | 85,821 | 53.0% | 80,223 | 56.5% | 5,598 | 7.0% | 5.9% |
| Americas | 51,992 | 32.1% | 38,702 | 27.3% | 13,290 | 34.3% | 15.7% |
| APAC | 24,085 | 14.9% | 22,945 | 16.2% | 1,140 | 5.0% | -4.4% |
| Total Revenues | 161,897 | 100.0% | 141,869 | 100.0% | 20,028 | 14.1% | 6.9% |
Americas recorded the highest growth with a 34.3% increase in turnover (15.7% at constant exchange rates). EMEAI and APAC ended the quarter up 7.0% (5.9% at constant exchange rates) and 5.0% (-4.4% at constant exchange rates), respectively.
Adjusted EBITDA for the quarter, of €22.0 million (13.6% of revenues), is substantially in line in percentage values and improving compared to the same period of previous year, mainly due to sales price actions and to the mix which compensate inflationary effects on procurement and negative exchange effect.
Net profit for the quarter was €6.7 million (4.2% on turnover); €7.1 million in the third quarter of 2021 (5.0% of turnover).
ECONOMIC RESULTS BY DIVISION FOR THE QUARTER
The tables below show the trend in Revenues and Adjusted EBITDA by division achieved in the third quarter of 2022 compared to the same quarter of 2021:
REVENUES BY DIVISION
| Quarter ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| 30.09.2022 | % 30.09.2021 |
% | Change | % Ch. | % ch. net | |||
| Restated | FX | |||||||
| Datalogic | 157,540 | 97.3% | 137,603 | 97.0% | 19,937 | 14.5% | 7.5% | |
| Informatics | 5,222 | 3.2% | 4,723 | 3.3% | 499 | 10.6% | -4.1% | |
| Eliminations | (865) | (457) | (408) | |||||
| Total Revenues | 161,897 | 100.0% | 141,869 100.0% | 20,028 | 14.1% | 6.9% |
ADJUSTED EBITDA BY DIVISION
| Quarter ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 30.09.2022 | % on | 30.09.2021 | % on | Change | % Ch. | ||||
| Revenues | Restated | Revenues | |||||||
| Datalogic | 21,824 | 13.9% | 18,644 | 13.5% | 3,180 | 17.1% | |||
| Informatics | 390 | 7.5% | 707 | 15.0% | (317) | -44.8% | |||
| Eliminations | (183) | (36) | (147) | 408.3% | |||||
| Total Adjusted EBITDA | 22,031 | 13.6% | 19,315 | 13.6% | 2,716 | 14.1% |
DATALOGIC DIVISION
In the third quarter of 2022, the DatalogicDivision reported a turnover of €157.5 million, with a total increase of 14.5% (+7.5% at constant exchange rates) compared to the same quarter of 2021. The geographic area that contributed most to the increase was Americas with +38.3% (19.1% at constant exchange rates) followed by EMEAIwith 7.0% (+5.9% at constant exchange rates).
The Adjusted EBITDA of the division was €21.8 million or 13.9% of turnover (13.5% in the third quarter of 2021), an improvement of 0.4 percentage points compared to the third quarter of 2021 and progressively increasing compared to the first part of the year.
Below is the breakdown by industry of Datalogic Division's revenues:
| Quarter ended | |||||||
|---|---|---|---|---|---|---|---|
| 30.09.2022 | % | 30.09.2021 | % | Change | % Ch. | % ch. net | |
| Restated | FX | ||||||
| Retail | 59,269 | 37.6% | 51,083 | 37.1% | 8,187 | 16.0% | 7.6% |
| Manufacturing | 44,589 | 28.3% | 42,859 | 31.1% | 1,730 | 4.0% | -0.7% |
| Transportation & Logistics | 22,442 | 14.2% | 19,828 | 14.4% | 2,614 | 13.2% | 6.2% |
| Healthcare | 3,974 | 2.5% | 4,801 | 3.5% | (827) | -17.2% | -23.9% |
| Channel | 27,266 | 17.3% | 19,032 | 13.8% | 8,234 | 43.3% | 34.9% |
| Total Revenues | 157,540 | 100.0% | 137,603 | 100.0% | 19,937 | 14.5% | 7.5% |
In the third quarter of 2022, all main sectors are growing, driven by double digit increase in in Retail and Transportation & Logistics and in the distribution channel. Downturn in Healthcare.
INFORMATICS DIVISION
The Informatics Division recorded an increase in revenues in the third quarter of 2022 of 10.6% (-4.1% at constant exchange rates). EBITDA amounted to €0.4 million at 7.5% of revenues (€0.7 million in the third quarter of 2021, 15.0% of revenues).
GROUP RECLASSIFIED STATEMENT OF FINANCIAL POSITION FOR THE PERIOD
The following table shows the main financial and equity items as of September 30, 2022 compared with December 31, 2021.
| 30.09.2022 | 31.12.2021 | Change | % Ch. | |
|---|---|---|---|---|
| Intangible assets | 81,834 | 81,631 | 203 | 0.2% |
| Goodwill | 237,545 | 193,497 | 44,048 | 22.8% |
| Tangible assets | 118,255 | 118,918 | (663) | -0.6% |
| Financial assets and investments in associates | 9,249 | 12,335 | (3,086) | -25.0% |
| Other non-current assets | 55,289 | 50,889 | 4,400 | 8.6% |
| Fixed Assets | 502,172 | 457,270 | 44,902 | 9.8% |
| Trade receivables | 95,151 | 87,279 | 7,872 | 9.0% |
| Trade payables | (109,960) | (139,121) | 29,161 | -21.0% |
| Inventories | 157,781 | 136,721 | 21,060 | 15.4% |
| Net Trade Working Capital | 142,972 | 84,879 | 58,093 | 68.4% |
| Other current assets | 35,546 | 29,309 | 6,237 | 21.3% |
| Other current liabilities and provisions for risks | (70,614) | (67,349) | (3,265) | 4.8% |
| Net Working Capital | 107,904 | 46,839 | 61,065 | 130.4% |
| Other non-current liabilities | (48,118) | (44,923) | (3,195) | 7.1% |
| Post-employment benefits | (6,898) | (7,088) | 190 | -2.7% |
| Non-current Provisions for risks | (4,499) | (4,314) | (185) | 4.3% |
| Net Invested Capital | 550,561 | 447,784 | 102,777 | 23.0% |
| Shareholders' Equity | (466,921) | (421,724) | (45,197) | 10.7% |
| Net financial position (NFP) | (83,640) | (26,060) | (57,580) | 221.0% |
Net Invested Capital was €550.6 million (€447.8 million as of December 31, 2021), increasing by €102.8 million, of which €61.1 million in Net Working Capital and €44.9 million in Fixed Assets.
Fixed assets, amounting to €502.2 million (€457.3 million as of December 31, 2021), showed an increase of €44.9 million attributable mainly to exchange rate differences of €39.7 million (of which €28.3 million was recognised in relation to goodwill) and the provisional recognition of goodwill from the acquisition of Pekat Vision for approximately €15.8 million.
Net Trade Working Capital as of September 30, 2022 was €143.0 million, increasing by €58.1 million compared to December 31, 2021, with a percentage impact on turnover rising from 14.2% as of December 31, 2021 to 22.3% as of September 30, 2022. The change in the period is influenced by the increase in inventories, necessary to cope with both the shortage phenomena and the lengthening of order processing times caused by the shortage itself, as well as from higher payments to suppliers.
Net Financial Position as of September 30, 2022 was negative by €83.6 million. Cash flows, which brought about the change in consolidated Net Financial Position compared to December 31, 2021, are summarised as follows:
| 30.09.2022 | 30.09.2021 | Change | |
|---|---|---|---|
| Net Financial Position (Net Debt) at the beginning of the period | (26,060) | 8,218 | (34,278) |
| Adjusted EBITDA | 56,288 | 66,156 | (9,868) |
| Change in net trade working capital | (58,093) | (43,247) | (14,846) |
| Other changes in net working capital | (3,781) | 4,835 | (8,615) |
| Net investments | (15,853) | (17,735) | 1,882 |
| Taxes paid | (4,203) | (9,191) | 4,988 |
| Net financial income (expenses) | (4,703) | (1,267) | (3,436) |
| Dividend distribution | (16,934) | (9,638) | (7,296) |
| Sale (Purchase) of treasury shares | - | (1,197) | 1,197 |
| Disinvestment financial assets | 5,693 | - | - |
| Acquisitions | (15,994) | (34,972) | 18,978 |
| Change in Net Financial Position | (57,580) | (46,257) | (11,323) |
| Net Financial Position (Net Debt) at the end of the period | (83,640) | (38,039) | (45,601) |
Cash generated from operations was absorbed more than in the comparison period mainly due to the decline in margins and to the higher absorption of working capital, while the investments for the period are slightly decreasing compared to the previous year.
During 2022, the acquisition of Pekat Vision was completed, which involved a financial outlay of approximately €16.0 million, and Dividends of €16.9 million were also distributed.
As of September 30, 2022, the net financial debt is broken down as follows:
| 30.09.2022 | 31.12.2021 | |
|---|---|---|
| A. Cash | 81,037 | 106,068 |
| B. Cash equivalents | 14 | 12 |
| C. Other current financial assets | - | 2,207 |
| D. Cash and cash equivalents (A) + (B) + (C) | 81,051 | 108,287 |
| E. Current financial debt | 50,398 | 8,041 |
| E1. of which lease payables | 4,193 | 4,446 |
| F. Current portion of non-current financial debt | 53,001 | 62,888 |
| G. Current financial debt (E) + (F) | 103,399 | 70,929 |
| H. Current Net Debt (Net Financial Position) (G) -(D) | 22,348 | (37,358) |
| I. Non-current financial debt | 61,292 | 63,418 |
| I1. of which lease payables | 12,117 | 13,100 |
| J. Debt instruments | - | - |
| K. Trade and other non-current payables | - | - |
| L. Non-current financial Debt (I) + (J) + (K) | 61,292 | 63,418 |
| M. Net Debt/(Net Financial Position) (H) + (L) | 83,640 | 26,060 |
As of September 30, 2022, the Group had outstanding financial credit lines of approximately €255.0 million, of which approximately €200.0 million were committed. Unused and immediately available financial lines amount to €110.0 million.
Indirect debt subject to conditions as of September 30, 2022 is represented exclusively by the provision for Group postemployment benefits, amounting to €6.9 million.
SIGNIFICANT EVENTS DURING THE PERIOD
ACQUISITION OF PEKAT VISION
On March 21, 2022, the acquisition of the entire share capital of Pekat S.r.o., a company based in Brno in the Czech Republic, through the subsidiary Datalogic S.r.l., was finalised. Pekat Vision is a start-up that develops proprietary machine and deep learning algorithms in vision systems for process automation mainly in the Manufacturing and T&L sectors, with further potential in the Retail sector. Pekat solutions, highly innovative and performing, are interoperable and easily integrated with devices and platforms in different application areas. The acquisition, which took place for a consideration of €16.0 million, enables the Group to pursue its strategic objectives of growth and technological innovation, enhancing the Datalogic offer with cutting-edge solutions based on Artificial Intelligence (AI).
GOVERNANCE
On April 29, 2022, the Shareholders' Meeting resolved to distribute an ordinary unit dividend, gross of legal withholdings, of 30 Euro cents per share, for a maximum total amount of €17.5 million.
The same Shareholders' Meeting also resolved to
- − confirm, pursuant to and for the purposes of art. 2386, paragraph 1, of the Italian Civil Code and art. 15 of the Articles of Association, Ms. Maria Grazia Filippini as a Director of the Company, providing that she remains in office until the expiry of the term of office of the other current Directors and, therefore, until the date of the Shareholders' Meeting called to approve the financial statements as of December 31, 2023;
- − set the number of members of the Board of Directors at eight and consequently appoint a new director of the Company, in the person of Mr. Pietro Todescato, providing that he remains in office until the expiry of the term of office of the other current Directors and, therefore, until the date of the Shareholders' Meeting called to approve the financial statements as of December 31, 2023;
- − to appoint the Board of Statutory Auditors and the Chair of the Board of Statutory Auditors for a period of three financial years and therefore up to the date of the Shareholders' Meeting which will be called to approve the financial statements as of December 31, 2024, in the persons of: Diana Rizzo, Chair; Elena Lancellotti, Standing Auditor; Roberto Santagostino, Standing Auditor; Giulia De Martino, Alternate Auditor; Patrizia Cornale, Alternate Auditor; Eugenio Burani, Alternate Auditor.
RUSSIAN-UKRAINIAN CONFLICT
Socio-political tensions that resulted in a conflict between Russia and Ukraine on February 24, 2022, the developments of which at present are not yet predictable, led Western countries to enact economic sanctions against Russia. The Group does not have offices in the countries currently directly affected by the conflict, nor do these represent significant outlet or supply markets for the same. The potential effects of this event on the Group's economic and equity results are however subject to constant monitoring.
SUBSEQUENT EVENTS
Nothing to report.
BUSINESS OUTLOOK
The firstnine monthsresults, a stillsolid backlog and the actions undertaken on both pricing and supply chain, allow us to remain confident in achieving the expected results in the last quarter of 2022, with sales growing compared to previous year and operating profitability in line with that recorded in the first nine months. This is despite persisting issues on supply chain, a still negative booking trend also in the third quarter and increasing uncertainties over demand following the deterioration on the economic environment.
SECONDARY LOCATIONS
The Parent Company has no secondary locations.
The Chair of the Board of Directors (Mr Romano Volta)
Consolidated Financial Statements
Consolidated Interim Report as of September 30, 2022
DATALOGIC GROUP 19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| ASSETS (€/000) | Notes | 30.09.2022 | 31.12.2021 |
|---|---|---|---|
| A) Non-current assets (1+2+3+4+5+6+7) | 502,172 | 457,270 | |
| 1) Tangible assets | 102,362 | 101,780 | |
| Land | 1 | 13,208 | 12,524 |
| Buildings | 1 | 54,312 | 52,649 |
| Other assets | 1 | 31,683 | 32,600 |
| Assets in progress and payments on account | 1 | 3,159 | 4,007 |
| 2) Intangible assets | 319,379 | 275,128 | |
| Goodwill | 2 | 237,545 | 193,497 |
| Development costs | 2 | 26,490 | 21,786 |
| Other | 2 | 35,828 | 39,703 |
| Assets in progress and payments on account | 2 | 19,516 | 20,142 |
| 3) Right-of-use assets | 3 | 15,893 | 17,138 |
| 4) Equity investments in associates | 4 | 463 | 530 |
| 5) Non-current financial assets | 8,786 | 11,805 | |
| Equity investments | 6 | 8,786 | 11,805 |
| 6) Trade and other receivables | 7 | 795 | 821 |
| 7) Deferred tax assets | 12 | 54,494 | 50,068 |
| B) Current assets (8+9+10+11+12) | 369,529 | 361,596 | |
| 8) Inventories | 157,781 | 136,721 | |
| Raw and ancillary materials and consumables | 8 | 83,909 | 83,681 |
| Work in progress and semi-finished products | 8 | 32,196 | 19,865 |
| Finished products and goods | 8 | 41,676 | 33,175 |
| 9) Trade and other receivables | 118,288 | 105,145 | |
| Trade receivables | 7 | 95,151 | 87,279 |
| of which from associates | 7 | 3,401 | 2,435 |
| of which from related parties | 7 | - | 7 |
| Other receivables, accrued income and prepaid expenses | 7 | 23,137 | 17,866 |
| 10) Tax receivables | 9 | 12,409 | 11,443 |
| of which to Parent Company | 1,807 | 1,807 | |
| 11) Current financial receivables | 6 | - | 2,207 |
| 12) Cash and cash equivalents | 81,051 | 106,080 | |
| Total Assets (A+B) | 871,701 | 818,866 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| LIABILITIES (€/000) | Notes | 30.09.2022 | 31.12.2021 |
|---|---|---|---|
| A) Total Shareholders' Equity (1+2+3+4+5+6) | 10 | 466,921 | 421,724 |
| 1) Share capital | 10 | 30,392 | 30,392 |
| 2) Reserves | 10 | 161,968 | 119,668 |
| 3) Retained earnings (losses) | 10 | 255,577 | 229,691 |
| 4) Profit/(Loss) for the period | 10 | 15,574 | 38,913 |
| 5) Group Shareholders' Equity | 10 | 463,511 | 418,665 |
| Profit/Loss for the period of Minority interests | 10 | 265 | 627 |
| Shareholders' Equity of Minority interests | 10 | 3,145 | 2,432 |
| 6) Minority interests | 3,410 | 3,060 | |
| B) Non-current liabilities (7+8+9+10+11+12) | 120,807 | 119,743 | |
| 7) Non-current financial payables | 11 | 61,292 | 63,418 |
| 8) Tax payables | - | 793 | |
| 9) Deferred tax liabilities | 12 | 27,778 | 25,844 |
| 10) Post-employment benefits | 13 | 6,898 | 7,088 |
| 11) Provisions for risks and charges, non-current | 14 | 4,499 | 4,314 |
| 12) Other liabilities | 15 | 20,340 | 18,286 |
| C) Current liabilities (13+14+15+16) | 283,973 | 277,399 | |
| 13) Trade and other payables | 166,889 | 190,566 | |
| Trade payables | 15 | 109,960 | 139,121 |
| of which from associates | 15 | 77 | 156 |
| of which from related parties | - | 105 | |
| Other payables, accrued liabilities and deferred income | 15 | 56,929 | 51,445 |
| 14) Tax payables | 9 | 10,272 | 12,420 |
| of which to Parent Company | 3,453 | 3,450 | |
| 15) Provisions for risks and charges, current | 14 | 3,413 | 3,484 |
| 16) Current financial payables | 11 | 103,399 | 70,929 |
| Total Liabilities (A+B+C) | 871,701 | 818,866 |
CONSOLIDATED INCOME STATEMENT
| (€/000) | Notes | 30.09.2022 | 30.09.2021 |
|---|---|---|---|
| Restated | |||
| 1) Revenues | 16 | 476,496 | 431,945 |
| Revenues from sale of products | 442,691 | 403,356 | |
| Revenues from services | 33,805 | 28,589 | |
| of which to related parties and associates | 9,736 | 7,259 | |
| 2) Cost of goods sold | 17 | 275,930 | 238,619 |
| of which to related parties and associates | 380 | 532 | |
| Gross Operating Margin (1-2) | 200,566 | 193,326 | |
| 3) Other revenues | 18 | 1,152 | 3,265 |
| 4) Research and development expenses | 17 | 46,140 | 42,435 |
| of which to related parties and associates | 463 | 408 | |
| 5) Distribution expenses | 17 | 82,980 | 73,926 |
| of which to related parties and associates | 139 | 39 | |
| 6) General and administrative expenses | 17 | 42,798 | 40,878 |
| of which to related parties and associates | 146 | 257 | |
| of which to Parent Company | 90 | - | |
| 7) Other operating expenses | 17 | 1,708 | 1,950 |
| Total operating costs | 173,626 | 159,190 | |
| Operating result | 28,092 | 37,402 | |
| 8) Financial income | 19 | 33,533 | 14,025 |
| 9) Financial expenses | 19 | 42,309 | 15,292 |
| Financial income/(expenses) (8-9) | (8,776) | (1,267) | |
| 10) Profits from associates | - | - | |
| Profit/(Loss) before taxes for the period | 19,316 | 36,135 | |
| Income taxes | 20 | 3,477 | 6,390 |
| Net Profit/(Loss) for the period | 15,839 | 30,275 | |
| Basic earnings/(loss) per share (€) | 21 | 0.28 | 0.54 |
| Diluted earnings/(loss) per share (€) | 21 | 0.28 | 0.54 |
| Attributable to: | ||
|---|---|---|
| Shareholders of the Parent Company | 15,574 | 29,804 |
| Minority interests | 265 | 471 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| (€/000) | 30.09.2022 | 30.09.2021 | |
|---|---|---|---|
| Restated | |||
| Net Profit/(Loss) for the period | 15,839 | 30,275 | |
| 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 hedging financial instruments (cash flow hedge) | 10 | 71 | (183) |
| Profit/(Loss) due to translation of the accounts of foreign companies | 10 | 46,306 | 14,265 |
| Total other components of the Statement of comprehensive income which will be subsequently reclassified to Profit/(Loss) for the period |
46,377 | 14,082 | |
| 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 | |||
| Profit/(Loss) from financial assets at FVOCI | 10 | (4,099) | 1,273 |
| of which tax effect | 48 | (13) | |
| Total other components of the Statement of comprehensive income which will not be subsequently reclassified to Profit/(Loss) for the period |
(4,099) | 1,273 | |
| Total profit/(loss) in the Statement of comprehensive Income | 42,278 | 15,355 | |
| Total comprehensive Profit/(Loss) for the period | 58,117 | 45,630 | |
| Attributable to: | |||
| Shareholders of the Parent Company | 57,736 | 45,159 | |
| Minority interests | 380 | 471 |
CONSOLIDATED STATEMENT OF CASH FLOW
| 30.09.2022 | 30.09.2021 | ||
|---|---|---|---|
| (€/000) | Notes | Restated | |
| Profit/(Loss) before taxes | 19,316 | 36,135 | |
| Depreciation of tangible assets and write-downs | 1, 2 | 10,166 | 9,547 |
| Amortisation of intangible assets and write-downs | 1, 2 | 12,864 | 11,191 |
| Depreciation of right-of-use assets | 3 | 3,391 | 3,135 |
| Losses (Gains) from sale of fixed assets | 17, 18 | (22) | 18 |
| Change in provisions for risks and charges | 14 | 100 | 38 |
| Change in provision for obsolescence | 1,782 | - | |
| Financial Income/(Expenses) | 19 | 8,776 | 1,267 |
| Other non-monetary changes | 800 | 3,792 | |
| Cash flow generated (absorbed) from operations before changes in | 57,173 | 65,123 | |
| working capital | |||
| Change in trade receivables | 7 | (3,389) | (9,539) |
| Change in inventories | 8 | (14,451) | (56,530) |
| Change in trade payables | 15 | (36,642) | 22,804 |
| Change in other current assets | 7 | (4,265) | (2,511) |
| Change in other current liabilities | 15 | 2,437 | 10,126 |
| Change in other non-current assets | 6 | 40 | 323 |
| Change in other non-current liabilities | 5 | 821 | 918 |
| Cash flow generated (absorbed) from operations after changes in working | 1,725 | 30,714 | |
| capital | |||
| Change in tax assets and liabilities | (6,991) | (5,286) | |
| Interest paid | (2,286) | (2,319) | |
| Interest collected | 229 | 279 | |
| Cash flow generated (absorbed) from operations (A) | (7,323) | 23,388 | |
| Increase in intangible assets | 2 | (11,146) | (10,641) |
| Decrease in intangible assets | 2 | 13 | - |
| Increase in tangible assets | 1 | (5,899) | (5,846) |
| Decrease in tangible assets | 1 | (61) | 41 |
| Cash paid for business acquisition, net of cash acquired | (15,994) | (34,972) | |
| Change in investments and current and non-current financial assets | 5 | 5,336 | 10,001 |
| Cash flow generated (absorbed) from investments (B) | (27,751) | (41,417) | |
| Payment of financial liabilities | 11 | (101,452) | (25,272) |
| New financial liabilities | 11 | 135,000 | 18,000 |
| Other changes in financial liabilities | 11 | (1,521) | (122) |
| Payments of financial liabilities for leasing | (3,545) | (2,947) | |
| (Purchase)/sale of treasury shares | 10 | - | (1,197) |
| Dividend payment | 10 | (16,934) | (9,638) |
| Effect of change in cash and cash equivalents | 2,599 | (1,308) | |
| Other changes | (4,102) | - | |
| Cash flow generated (absorbed) from financial activity (C) | 10,045 | (22,483) | |
| Net increase (decrease) in available cash (A+B+C) | (25,029) | (40,512) | |
| Net cash and cash equivalents at beginning of period | 106,080 | 137,451 | |
| Net cash and cash equivalents at end of period | 81,051 | 96,939 |
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
| Share | Share | Treasury | Translation | Other | Retained | Group | Group | Profit | Minority | Minority | Profit | Shareholders' | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| capital | premium | shares | reserve | reserves | earnings | Profit | Shareholders' | (Loss) | interest | interests | (Loss) | Equity | |
| Description | reserve | (Loss) | Equity | of | capital | ||||||||
| Minority | and | ||||||||||||
| interests | reserve | ||||||||||||
| 01.01.2022 | 30,392 | 111,779 | (26,096) | 22,746 | 11,239 | 229,692 | 38,913 | 418,665 | 627 | 2,432 | 3,060 | 39,540 | 421,724 |
| Allocation of earnings | - | - | - | - | - | 38,912 | (38,912) | - | (627) | 627 | - | (39,540) | - |
| Dividends Treasury shares |
- - |
- - |
- - |
- - |
- - |
(16,934) - |
- - |
(16,934) - |
- - |
- - |
- - |
- - |
(16,934) - |
| Share-based incentive plan Other changes |
- - |
- - |
4,698 - |
- - |
(4,793) 233 |
235 3,673 |
- - |
140 3,906 |
- - |
- (29) |
- (29) |
- - |
140 3,877 |
| Net Profit/(Loss) for the period | - | - | - | - | - | - | 15,574 | 15,574 | 265 | - | 265 | 15,839 | 15,839 |
| Other components of the Statement | - | - | - | 46,191 | (4,028) | - | - | 42,163 | 115 | 115 | - | 42,278 | |
| of comprehensive income Total comprehensive Profit (Loss) |
- | - | - | 46,191 | (4,028) | - | 15,574 | 57,737 | 265 | 115 | 380 | 15,839 | 58,117 |
| 30.09.2022 | 30,392 | 111,779 | (21,398) | 68,936 | 2,651 | 255,577 | 15,574 | 463,511 | 265 | 3,145 | 3,410 | 15,839 | 466,921 |
| Share | Share | Treasury | Translation | Other | Retained | Restated | Restated | Profit | Minority | Minority | Profit | Shareholders' | |
| capital | premium | shares | reserve | reserves | earnings | Group | Group | (Loss) | interest | interests | (Loss) | Equity | |
| Description | reserve | Profit | Shareholders' | of | capital | Restated | Restated | ||||||
| (Loss) | Equity | Minority | and | ||||||||||
| interests | reserve | ||||||||||||
| 01.01.2021 | 30,392 | 111,779 | (21,899) | 2,331 | 6,204 | 225,816 | 13,582 | 368,205 | 300 | 1,853 | 2,153 | 13,882 | 370,358 |
| Allocation of earnings | - | - | - | - | - | 13,582 | (13,582) | - | (300) | 300 | - | (13,882) | - |
| Dividends | - | - | - | - | - | (9,638) | - | (9,638) | - | - | - | - | (9,638) |
| Treasury shares | - | - | (1,197) | - | - | - | - | (1,197) | - | - | - | - | (1,197) |
| Share-based incentive plan | - | - | - | - | 1,804 | - | - | 1,804 | - | - | - | - | 1,804 |
| Other changes | - | - | - | - | - | (96) | - | (96) | - | 167 | 167 | - | 71 |
| Net Profit/(Loss) for the period | - | - | - | - | - | 29,804 | 29,804 | 471 | - | 471 | 30,275 | 30,275 | |
| Other components of the Statement | |||||||||||||
| of comprehensive income | - | - | - | 14,265 | 1,090 | - | 15,355 | - | - | - | - | 15,355 | |
| Total comprehensive Profit (Loss) | - | - | - | 14,265 | 1,090 | - | 29,804 | 45,159 | 471 | - | 471 | 30,275 | 45,630 |
| 30.09.2021 | 30,392 | 111,779 | (23,096) | 16,596 | 9,098 | 229,664 | 29,804 | 404,237 | 471 | 2,320 | 2,791 | 30,275 | 407,028 |
Explanatory Notes
Consolidated Interim Report as of September 30, 2022
DATALOGIC GROUP 26
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 Company is specialised in the design and production of bar code readers, mobile computers, sensor, measurement and security sensors, vision and laser marking and RFID systems.
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 on Euronext STAR Milan of Borsa Italiana S.p.A. and is headquartered in Italy. The address of the registered office is Via Candini, 2 - Lippo di Calderara (BO).
This Consolidated Interim Report as of September 30, 2022 includes the figures of the Parent Company and its subsidiaries (defined hereinafter as the "Group"), as well as its minority interests in associates.
The publication of the Consolidated Interim Report, as of September 30, 2022, of the Datalogic Group was authorised by resolution of the Board of Directors dated November 10, 2022.
BASIS OF PRESENTATION
1) General criteria
This Consolidated Interim Report was drawn up pursuant to Art. 154-ter of Legislative Decree no. 58 (T.U.F.) of February 24, 1998 and following amendments and supplements, as well as to the Consob's 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 Interim Report must therefore be read together with the Consolidated Financial Statements as of December 31, 2021, which were prepared in accordance with the IFRS accounting standards, endorsed by the European Union, approved at the Meeting of the Board of Directors held on March 10, 2022 and available in the section Investor Relations in the Group's website (www.datalogic.com).
This Consolidated Interim 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 as of December 31, 2021, 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 end of the period;
- with regard to the Income Statement, cost and revenue items are disclosed based on grouping by function, as this classification was deemed more explanatory for understanding the Group's economic 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, amendments and IFRS interpretations adopted by the Group
On January 1, 2022, the following amendments to the accounting standards currently in force entered into effect:
- Amendments to IFRS 3 Business Combinations: the purpose of the amendments is to update the reference in IFRS 3 to the revised Conceptual Framework, without this leading to changes in the provisions of the principle.
- Amendments to IAS 16 Property, Plant and Equipment: the purpose of the amendments is not to allow the amount received from the sale of assets produced in the test phase of the asset to be deducted from the cost of tangible assets. These sales revenues and the related costs will therefore be recognised in the income statement.
- Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: the amendment clarifies that in the estimate of the possible cost of a contract, all costs directly attributable to the contract must be considered. Consequently, the assessment of the possible cost of a contract includes not only the incremental costs (such as, for example, the cost of the direct material used in the processing), but also all the costs that the company cannot avoid since it has stipulated the contract (such as, for example, the portion of depreciation of the machinery used to fulfil the contract obligations).
- Annual Improvements 2018-2020: the amendments were made to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples of 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
As of the date of preparation of this Consolidated Interim Report, some accounting standards illustrated in the Consolidated Financial Statements as of December 31, 2021, to which reference should be made, had been issued but have not yet entered into force. The Group intends to adopt these standards and interpretations, if applicable, when they will enter into force.
5) Use of estimates and assumptions
The preparation of the Consolidated Interim Report in application of the IFRS requires the directors to apply accounting principles and methodologies which, in certain circumstances, are based on valuations and estimates based on historical experience and assumptions that are assessed from time to time according to specific circumstances. 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 Interim Report on Operations as of September 30, 2022 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 investments included in the consolidation area is included in Annex 2 of the Explanatory Notes, with an indication of the methodology used.
As of September 30, 2022, there was a change in the scope of consolidation due to the acquisition, on March 21, 2022, of the entire share capital of the company Pekat S.r.o.
7) Translation criteria of foreign currency financial statements
The exchange rates used to determine the countervalue in Euro of financial statements expressed in foreign currency of subsidiaries (currency for 1 Euro) are shown hereunder:
| Currency (ISO Code) | Quantity of currency for 1 Euro | ||||||
|---|---|---|---|---|---|---|---|
| September 2022 | September 2022 | December 2021 | September 2021 | ||||
| Final exchange change |
Average exchange rate for the period |
Final exchange change |
Average exchange rate for the period |
||||
| US Dollar (USD) | 0.97 | 1.06 | 1.13 | 1.16 | |||
| British Pound Sterling (GBP) | 0.88 | 0.85 | 0.84 | 0.86 | |||
| Swedish Krona (SEK) | 10.90 | 10.53 | 10.25 | 10.17 | |||
| Singapore Dollar (SGD) | 1.40 | 1.46 | 1.53 | 1.58 | |||
| Japanese Yen (JPY) | 141.01 | 135.97 | 130.38 | 129.67 | |||
| Australian Dollar (AUD) | 1.51 | 1.50 | 1.56 | 1.61 | |||
| Hong Kong Dollar (HKD) | 7.65 | 8.33 | 8.83 | 9.02 | |||
| Chinese Renminbi (CNY) | 6.94 | 7.02 | 7.19 | 7.48 | |||
| Brazilian Real (BRL) | 5.26 | 5.46 | 6.31 | 6.26 | |||
| Mexican Peso (MXN) | 19.64 | 21.55 | 23.14 | 23.74 | |||
| Hungarian Forint (HUF) | 422.18 | 384.81 | 369.19 | 360.19 | |||
| Czech crown (CZK) | 24.55 | 24.62 | n.a. | n.a. |
BUSINESS COMBINATION
On March 21, 2022, the acquisition of the entire share capital through the subsidiary Datalogic S.r.l. of the company Pekat S.r.o. was completed.
Pekat S.r.o. is a company based in Brno in the Czech Republic that develops machine learning and deep learning algorithms for applications in the supply chain and industrial automation areas.
The following table shows preliminary fair value as of September 30, 2022 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 of September 30, 2022 | Book value | Fair value |
|---|---|---|
| Tangible assets | 7 | 7 |
| Intangible assets | 384 | 384 |
| Other non-current receivables | - | - |
| Inventories | - | - |
| Trade and other current receivables | 77 | 77 |
| Cash and cash equivalents | 6 | 6 |
| Financial liabilities | - | - |
| Liabilities for defined employee benefits | - | - |
| Deferred tax liabilities | - | - |
| Trade payables | (63) | (63) |
| Other payables | (191) | (191) |
| Net assets at acquisition date | 221 | 221 |
| % pertaining to Group | 100% | 100% |
| Group net assets | 221 | 221 |
| Consideration | 16,000 | 16,000 |
| Goodwill at acquisition date | 15,779 | 15,779 |
| Net cash used in acquisition: | ||
| Cash and cash equivalents of acquiree | [A] | 6 |
| Payments made to the seller | [B] | 16,000 |
| Consideration | 15,994 | |
| Net cash used in acquisition | [A] -[B] | 15,994 |
Since the acquisition is a business combination, the Group has recognised it using the purchase method, in its accounting, pursuant to the revised IFRS 3. The cost of an acquisition is measured as the sum of the consideration transferred, measured at fair value on the acquisition date.
The preliminary goodwill emerging from this transaction amounted to €15,779 thousand. It should be noted that for the purposes of preparing this Consolidated Interim Report, the accounting for the above-mentioned business combination was carried out on a provisional basis as the activities aimed at determining the fair value of assets, liabilities or contingent liabilities are in progress. As envisaged by IFRS 3, any possible adjustments will 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. For 2022, the operating segments are identified 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. The newly acquired Pekat S.r.o. was included in this operating sector.
- Informaticssells and distributes products and solutions for the management of inventories and mobile assets tailored to small and medium-sized companies.
The income statement informationrelated to operating segments as of September 30, 2022 and September 30, 2021 are as follows:
| Segment economic position | Datalogic Business |
Informatics | Adjustments | Total Group 30.09.2022 |
|---|---|---|---|---|
| Revenues | 464,195 | 13,734 | (1,433) | 476,496 |
| Adjusted EBITDA | 54,717 | 1,813 | (242) | 56,288 |
| % Revenues | 11.79% | 13.20% | 11.81% | |
| EBIT | 26,787 | 1,546 | (242) | 28,092 |
| Segment economic position | Datalogic Business |
Informatics | Adjustments | Total Group 30.09.2021 Restated |
|---|---|---|---|---|
| Revenues | 419,131 | 13,699 | (885) | 431,945 |
| Adjusted EBITDA | 64,209 | 1,965 | (19) | 66,155 |
| % Revenues | 15.32% | 14.34% | 15.32% | |
| EBIT | 35,676 | 1,743 | (17) | 37,402 |
The balance sheet information related to operating segments as of September 30, 2022 and December 31, 2021 are as follows:
| Datalogic | Informatics | Adjustments | Total Group |
|---|---|---|---|
| Business | 30.09.2022 | ||
| 873,816 | 29,936 | (32,051) | 871,701 |
| 403,197 | 8,990 | (7,407) | 404,780 |
| 470,619 | 20,946 | (24,644) | 466,921 |
| Segment financial position | Datalogic Business |
Informatics | Adjustments | Total Group 31.12.2021 |
|---|---|---|---|---|
| Total Assets | 824,658 | 24,891 | (30,683) | 818,866 |
| Total Liabilities | 395,093 | 7,784 | (5,735) | 397,142 |
| Shareholders' Equity | 429,565 | 17,107 | (24,948) | 421,724 |
INFORMATION ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
Note 1. Tangible assets
Tangible assets as of September 30, 2022 amounted to €102,362 thousand. Over the period, investments at €5,982 thousand and depreciation and amortisation at €10,166 thousand were recognised, while translation differences of balances in foreign currencies were positive for the amount of €4,759 thousand. The following is a breakdown of tangible assets as of September 30, 2022, compared with December 31, 2021.
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Land | 13,208 | 12,524 | 684 |
| Buildings | 54,312 | 52,649 | 1,663 |
| Other assets | 31,683 | 32,600 | (917) |
| Assets in progress and payments on account | 3,159 | 4,007 | (848) |
| Total | 102,362 | 101,780 | 582 |
The "Other assets" item as of September 30, 2022 includes the following categories: industrial equipment and moulds (€12,545 thousand), plant and machinery (€8,859 thousand), office furniture and machines (€6,337 thousand), general plants related to buildings (€2,413 thousand), light constructions (€432 thousand), commercial equipment and demo rooms (€650 thousand), maintenance on third-party assets (€362 thousand), and motor vehicles (€85 thousand).
The item "Assets in progress and payments on account", equal to €3,159 thousand, includes €1,869 thousand for moulds under construction, €830 thousand for equipment and production lines built in house and €367 thousand for improvements to owned buildings.
Note 2. Intangible assets
Intangible assets as of September 30, 2022 amounted to €319,379 thousand. During the reporting period, the following were recognised: investments at€11,133 thousand, entries of new goodwill from acquisitions following the provisional accounting of the purchase price allocation of Pekat Vision for €15,779 thousand, and depreciation and amortisation at €12,864 thousand, while exchange rate effects were positive and amounted to €29,818 thousand. The following is a breakdown of intangible assets as of September 30, 2022, compared with December 31, 2021:
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Goodwill | 237,545 | 193,497 | 44,048 |
| Development costs | 26,490 | 21,786 | 4,704 |
| Other | 35,828 | 39,703 | (3,875) |
| Assets in progress and payments on account | 19,516 | 20,142 | (626) |
| Total | 319,379 | 275,128 | 44,251 |
Goodwill
Goodwill, amounting to €237,549 thousand, shows an overall increase of €44,052 thousand in the nine months of 2022, €28,273 of which can be attributed to translation differences and €15,779 to goodwill recognised upon first consolidation of the newly acquired Pekat S.r.o.
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Datalogic CGU | 222,432 | 180,101 | 42,331 |
| Informatics CGU | 15,117 | 13,396 | 1,721 |
| Total | 237,549 | 193,497 | 44,052 |
Goodwill has been allocated to the CGUs (Cash Generating Units) represented by the individual companies and/or subgroups to which they refer. The estimated recoverable value of each cash generating unit (CGU), associated with each Goodwill being measured, is estimated through the corresponding value in use. In accordance with IAS 36, the Datalogic Group estimates value in use by discounting operating cash flows at a rate equal to the weighted average cost of debt and capital (Weighted Average Cost of Capital or "WACC") in order to determine the Enterprise Value.
Development costs, Other intangible assets and Assets in progress and payments on account
The item Development costs, amounting to €26,490 thousand as of September 30, 2022, consists of product development projects; the change for the period at 4,704 is determined by investments at €2,178 thousand, reclassifications of projects completed in the period at€9,020 thousand, previously recorded under assets in progress, and depreciation for the period at €6,494 thousand.
The "Other" item, amounting to €35,828 thousand, 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:
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Patents | 8,546 | 9,056 | (510) |
| Know-how | 5,517 | 6,307 | (790) |
| Customer list | 12,067 | 12,742 | (675) |
| Licences | 252 | 440 | (188) |
| Software | 9,446 | 11,158 | (1,712) |
| Total | 35,828 | 39,703 | (3,875) |
Assets in progress and payments on account, equal to €19,516 thousand, is mainly composed of the capitalisation of costs related to ongoing product development projects for the amount of €18,890 thousand (€19,955 thousand as of December 31, 2021) and €600 thousand related to software implementations not yet completed. The change for the period is mainly represented by €9,141 thousand from the reclassification of ongoing projects under 'Development Costs' and new investments for the period for €8,670 thousand.
Note 3. Right-of-use assets
Over the period, net investments amounted to €1,964 thousand and depreciation to €3,391 thousand, while the exchange rate effects were positive for €182 thousand. Details of the item as of September 30, 2022 and December 31, 2021 are as follows:
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Buildings | 13,719 | 14,989 | (1,270) |
| Vehicles | 1,977 | 1,974 | 3 |
| Office equipment | 197 | 175 | 22 |
| Total | 15,893 | 17,138 | (1,245) |
Note 4. Equity investments in associates
Equity investments in associates held by the Group, details of which can be found in Annex 2, amounted to €463 thousand as of September 30, 2022.
Note 5. Financial assets and liabilities by category
The following table provides a breakdown of "Financial assets and liabilities", reported according to IFRS 9.
Financial assets
| Financial assets at amortised cost |
Financial assets at FV through Profit and Loss |
Financial assets at FV through OCI |
30.09.2022 | |
|---|---|---|---|---|
| Non-current financial assets | 795 | 4,324 | 4,462 | 9,581 |
| Financial assets - Equity investments | - | 4,324 | 4,462 | 8,786 |
| Other receivables | 795 | - | - | 795 |
| Current financial assets | 199,339 | - | - | 199,339 |
| Trade receivables | 95,151 | - | - | 95,151 |
| Other receivables | 23,137 | - | - | 23,137 |
| Financial assets - Loans | - | - | - | - |
| Cash and cash equivalents | 81,051 | - | - | 81,051 |
| Total | 200,134 | 4,324 | 4,462 | 208,920 |
| Financial assets at amortised cost |
Financial assets at FV through Profit and Loss |
Financial assets at FV through OCI |
31.12.2021 | |
|---|---|---|---|---|
| Non-current financial assets | 821 | 1,301 | 10,504 | 12,626 |
| Financial assets - Equity investments | - | 1,301 | 10,504 | 11,805 |
| Other receivables | 821 | - | - | 821 |
| Current financial assets | 211,225 | 2,207 | - | 213,432 |
| Trade receivables | 87,279 | - | - | 87,279 |
| Other receivables | 17,866 | - | - | 17,866 |
| Financial assets - Loans | - | 2,207 | - | 2,207 |
| Cash and cash equivalents | 106,080 | - | - | 106,080 |
| Total | 212,046 | 3,508 | 10,504 | 226,058 |
Financial liabilities
| Derivatives | Financial liabilities at amortised cost |
30.09.2022 | |
|---|---|---|---|
| Non-current financial liabilities | - | 81,632 | 81,632 |
| Financial payables | - | 61,292 | 61,292 |
| Other payables | - | 20,340 | 20,340 |
| Current financial liabilities | - | 270,288 | 270,288 |
| Trade payables | - | 109,960 | 109,960 |
| Other payables | - | 56,929 | 56,929 |
| Current financial payables | - | 103,399 | 103,399 |
| Total | - | 351,920 | 351,920 |
| Derivatives | Financial liabilities at amortised cost |
31.12.2021 | |
|---|---|---|---|
| Non-current financial liabilities | - | 81,704 | 81,704 |
| Financial payables | - | 63,418 | 63,418 |
| Other payables | - | 18,286 | 18,286 |
| Current financial liabilities | - | 261,495 | 261,495 |
| Trade payables | - | 139,121 | 139,121 |
| Other payables | - | 51,445 | 51,445 |
| Current financial payables | - | 70,929 | 70,929 |
| Total | - | 343,199 | 343,199 |
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).
| Assets measured at fair value | Level 1 | Level 2 | Level 3 | 30.09.2022 |
|---|---|---|---|---|
| Financial assets - Equity investments | 4,462 | - | 4,324 | 8,786 |
| Financial assets -Other | - | - | - | - |
| Total | 4,462 | - | 4,324 | 8,786 |
Note 6. Financial assets and current financial receivables
Financial assets include the following:
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Non-current financial assets | 8,786 | 11,805 | (3,019) |
| Current financial assets | - | 2,207 | (2,207) |
| Total | 8,786 | 14,012 | (5,226) |
Financial assets amounted to €8,786 thousand and consisted of €4,287 thousand from the investment in 0.6% of the capital of the Japanese company Idec Corporation, €2,565 thousand from the investment in a financial instrument convertible into capital issued by the company AWM Smart Shelf, investment funds for €1,440 thousand and investments in capital instruments in other companies for €474 thousand.
The change in the item "Non-current financial assets" is detailed below:
| 30.09.2022 | 30.09.2021 | |
|---|---|---|
| As of January 1 | 11,805 | 7,823 |
| Investments (Divestments) | (5,594) | 524 |
| Reclassifications | 2,565 | - |
| Change in consolidation area | - | 3 |
| Profits/losses recognised in OCI | (99) | 1,273 |
| Gains/(losses) recognised in the Income Statement | (18) | - |
| Exchange rate adjustments | 128 | 43 |
| At September 30 | 8,786 | 9,666 |
The change in the period is mainly determined by disinvestment of financial assets.
Note 7. Trade and other receivables
The following is a breakdown of "Trade and other receivables" as of September 30, 2022, compared with December 31, 2021:
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Trade receivables | 84,971 | 80,389 | 4,582 |
| Contract assets - Invoices to be issued | 9,979 | 7,105 | 2,874 |
| Bad debt provisions | (3,200) | (2,657) | (543) |
| Net trade receivables | 91,750 | 84,837 | 6,913 |
| Receivables from associates | 3,401 | 2,435 | 966 |
| Receivables from related parties | - | 7 | (7) |
| Sub-total - Trade receivables | 95,151 | 87,279 | 7,872 |
| Other receivables - current accrued income and prepaid expenses | 23,137 | 17,866 | 5,271 |
| Other receivables - non-current accrued income and prepaid expenses | 795 | 821 | (26) |
| Sub-total -Other receivables - accrued income and prepaid expenses | 23,932 | 18,687 | 5,245 |
| Less: non-current portion | 795 | 821 | (26) |
| Trade and other receivables - current | 118,288 | 105,145 | 13,143 |
Trade receivables
Trade receivables, which amounted to €95,151 thousand as of September 30, 2022, showed an increase of €7,872 thousand compared to December 31, 2021. As of September 30, 2022, trade receivables factored without recourse amounted to €31,628 thousand (compared to €33,052 thousand as of December 31, 2021). 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 "Other receivables - accrued income and prepaid expenses" are shown below.
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Other current receivables | 3,328 | 1,763 | 1,565 |
| Other non-current receivables | 795 | 821 | (26) |
| VAT receivables | 14,643 | 12,632 | 2,011 |
| Accrued income and prepaid expenses | 5,166 | 3,471 | 1,695 |
| Total | 23,932 | 18,687 | 5,245 |
The increase in "Other current receivables" is mainly attributable to advances, guarantee deposits and INAIL receivables related to Italian companies.
The "VAT credit" amounting to €14,643 thousand relates to commercial transactions; the increase is due to the higher turnover in the period.
"Accrued income and prepaid expenses" item is mainly composed of the recognition of insurance contracts and hardware and software licenses, the change in the period is attributable to contractual renewals of license contracts.
Note 8. Inventories
Inventories amounting to €157,781 thousand show an increase of €21,060 thousand in the period. The change in the period is caused by exchange rate effects of €8,406 thousand, while for the residual value, the change is caused by an increase in inventories induced by procurement policies implemented to cope with the shortage of critical components.
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Raw and ancillary materials and consumables | 83,909 | 83,681 | 228 |
| Work in progress and semi-finished products | 32,196 | 19,865 | 12,331 |
| Finished products and goods | 41,676 | 33,175 | 8,501 |
| Total | 157,781 | 136,721 | 21,060 |
Inventories are disclosed net of an obsolescence provision totalling €12,891 thousand as of September 30, 2022 (€10,777 thousand as of December 31, 2021).
Note 9. Tax payables and receivables
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Tax receivables | 12,409 | 11,443 | 966 |
| of which to Parent Company | 1,807 | 1,807 | - |
| Tax payables | (10,272) | (12,420) | 2,148 |
| of which to Parent Company | (3,453) | (3,450) | (3) |
| Total | 2,137 | (977) | 3,114 |
As of September 30, 2022, the net balance of "Tax receivables and payables" was positive and equal to €2,137 thousand, showing a change of €3,144 thousand compared to December 31, 2021. The change in the period is due to the settlement of withholding tax liabilities as well as advance payments from Italian companies.
LIABILITIES AND SHAREHOLDERS' EQUITY
Note 10. Shareholders' Equity
The composition of the Shareholders' Equity as of September 30, 2022 is shown below:
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Share capital | 30,392 | 30,392 | - |
| Share premium reserve | 111,779 | 111,779 | - |
| Treasury shares held in portfolio | (21,398) | (26,096) | 4,698 |
| Share capital and reserves | 120,773 | 116,075 | 4,698 |
| Translation reserve | 68,936 | 22,746 | 46,190 |
| Other reserves | 2,651 | 11,239 | (8,588) |
| Retained earnings | 255,577 | 229,691 | 25,886 |
| Profit for the period | 15,574 | 38,913 | (23,339) |
| Total Group Shareholders' equity | 463,511 | 418,664 | 44,847 |
| Profit/Loss for the period of Minority interests | 265 | 627 | (362) |
| Shareholders' Equity of Minority interests | 3,145 | 2,433 | 712 |
| Total consolidated Shareholders' Equity | 466,921 | 421,724 | 45,197 |
Share capital
As of September 30, 2022, the share capital at €30,392 thousand represents the share capital fully subscribed and paid in by the Parent Company Datalogic S.p.A. It comprises a total number of ordinary shares at 58,446,491, of which 1,735,853 are held as treasury shares for a value of €21,398 thousand,for which the outstanding shares as of that date amounted to 56,710,638. The shares have a nominal value of €0.52 each.
Other Reserves
As of September 30, 2022, there was a change in the 'Treasury share reserve' of €4,698 thousand following the completion of the 2019-2021 share-based incentive plan.
Translation reserve marks an incremental change of €46,190 thousand in the reference period, in particular due to the effects of the US dollar trend, currency to which the Group is mainly exposed.
As of September 30, 2022, "Other reserves" amounted to €2,651 thousand, marking a decrease of €8,588 thousand due to the release of the reserve related to the share-based incentive plan concluded in the year, as well as the adjustment of the "Held-for-sale financial assets reserve" as a result of the IDEC sale.
Consolidated Interim Report as of September 30, 2022
Note 11. Financial payables
Financial payables as of September 30, 2022 amounted to €164,691 thousand, recording an increase of €30,344 thousand as detailed below.
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Bank borrowings | 147,175 | 113,206 | 33,969 |
| Lease financial payables | 16,310 | 17,546 | (1,236) |
| Payables to factoring companies | 1,119 | 2,537 | (1,418) |
| Other financial liabilities | 53 | 998 | (945) |
| Bank overdrafts | 34 | 60 | (26) |
| Total | 164,691 | 134,347 | 30,344 |
The change in Bank borrowings for the period is a result of the draw down of credit lines of €135,000 thousand, of which €55,000 thousand are long-term on 'Roller Coaster' and 'RCF' loans and €80,000 thousand on short-term 'Hot Money' lines. Loans and credit lines repaid during the nine-month period totalled €101,452 thousand.
| 30.09.2022 | 30.09.2021 | |
|---|---|---|
| As of January 1 | 113,206 | 130,753 |
| Increases | 135,000 | 18,000 |
| Change in consolidation area | - | 1,544 |
| Decreases for borrowing repayments | (101,452) | (24,853) |
| Other changes | 421 | 122 |
| At September 30 | 147,175 | 125,566 |
The breakdown of financial payables divided between current and non-current portion is shown below:
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Non-current financial payables | 61,292 | 63,418 | (2,126) |
| Current financial payables | 103,399 | 70,929 | 32,470 |
| Total | 164,691 | 134,347 | 30,344 |
Covenants
Some loan agreements require the Group to comply with financial covenants, measured on a half-yearly basis as of June 30 and December 31, summarised in the following table:
| Financing | Company | Covenants | Frequency | Reference financial statements |
|
|---|---|---|---|---|---|
| Club Deal | Datalogic S.p.A. | NFP/EBITDA | 2.75 | Half-year | Consolidated |
| RCF | Datalogic S.p.A. | NFP/EBITDA | 2.75 | Half-year | Consolidated |
| Roller Coaster | Datalogic S.p.A. | NFP/EBITDA | 3.00 | Half-year | Consolidated |
As of June 30, 2022, all requirements under the covenants had been met.
Note 12. Net deferred taxes
Deferred tax assets and liabilities derive both from positive components already posted to the income statement, the taxation of which is deferred in application of current tax regulations, and from temporary differences between the book value of the assets and liabilities postedto the financial statements and their relative value for tax purposes.
Deferred tax assets are recorded in accordance 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 differences that generate deferred tax assets are mainly represented by tax losses and taxes paid in foreign countries, provisions for risks and charges and exchange rate differences. Deferred tax liabilities are mainly attributable to temporary differences for exchange rate differences and statutory and tax differences of the amortisation/depreciation of tangible and intangible assets, as well as to fair value measurements of assets as part of business combinations carried out by the Group.
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Deferred tax assets | 54,494 | 50,068 | 4,426 |
| Deferred tax liabilities | (27,778) | (25,844) | (1,934) |
| Net deferred taxes | 26,716 | 24,224 | 2,492 |
The change in deferred taxes is linked to exchange rate effects that more than offset the release of deferred taxes recognised on income and charges that have become fiscally relevant in the period.
Deferred tax assets include assets related to receivables for taxes paid in foreign countries, the recoverability of which is subject to time limits. Estimates of taxable income are periodically reviewed in order to verify the recoverability of assets recorded in the balance sheet.
Note 13. Post-employment and retirement benefits
The breakdown of changes in the "Post-employment benefits" as of September 30, 2022 and September 30, 2021 is shown below:
| 30.09.2022 | 30.09.2021 | |
|---|---|---|
| As of January 1 | 7,088 | 6,862 |
| Accruals | 2,800 | 1,385 |
| Payments | (1,825) | (1,379) |
| Change in consolidation area | - | 460 |
| Receivable from INPS (Social Security Agencies) | (1,205) | (271) |
| Other movements | - | 3 |
| Exchange rate adjustments | 40 | - |
| At September 30 | 6,898 | 7,060 |
Note 14. Provisions for risks and charges
As of September 30, 2022, the "Provisions for risks and charges" amounted to €7,912 thousand (€7,798 thousand as of December 31, 2021) and are represented by the best estimate of the contingent liabilities to which the Group is exposed in relation to contractual obligations for product warranties, as well as contingent liabilities of a tax, labour law and agents' supplementary indemnity nature, as illustrated below.
| 31.12.2021 | Increases | (Uses) and (Releases) |
Currency exchange differences |
30.09.2022 | |
|---|---|---|---|---|---|
| Product warranty provision | 6,844 | 166 | (84) | 5 | 6,931 |
| Other provisions | 954 | 20 | (2) | 9 | 981 |
| Total | 7,798 | 186 | (86) | 14 | 7,912 |
The "Product warranty provision" covers the estimated cost of repairing products sold up to September 30, 2022 and covered by a warranty period; said provision amounted to €6,931 thousand (of which €3,948 thousand long-term).
The "Others" item as of September30, 2022 amounted to €981 thousand and is composed primarily of allocations made against agents' supplementary indemnity and for contingent liabilities of a fiscal and labour law nature.
The breakdown of provisions for risks is shown below, broken down into current and non-current portions:
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Provisions for risks and charges, current | 3,413 | 3,484 | (71) |
| Provisions for risks and charges, non-current | 4,499 | 4,314 | 185 |
| Total | 7,912 | 7,798 | 114 |
Note 15. Trade payables and other payables, accrued liabilities and deferred income
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Trade payables | 105,068 | 135,427 | (30,360) |
| Contractual liabilities - customer advances | 4,815 | 3,433 | 1,383 |
| Trade payables | 109,883 | 138,860 | (28,977) |
| Payables to associates | 77 | 156 | (79) |
| Payables to related parties | - | 105 | (105) |
| Total Trade payables | 109,960 | 139,121 | (29,161) |
| Other current liabilities | 35,199 | 33,091 | 2,108 |
| Current accrued liabilities and deferred income | 21,730 | 18,354 | 3,376 |
| Non-current accrued liabilities and deferred income | 20,340 | 18,286 | 2,054 |
| Total Other payables - accrued liabilities and deferred income | 77,269 | 69,731 | 7,538 |
| Less: non-current portion | 20,340 | 18,286 | 2,054 |
| Current portion | 166,889 | 190,566 | (23,677) |
Trade payables
Trade payables amounted to €109,960 thousand, decreasing by €29,161 thousand compared to the previous year.
Other current liabilities
| 30.09.2022 | 31.12.2021 | Change | |
|---|---|---|---|
| Payables to employees | 22,731 | 20,402 | 2,329 |
| Payables to pension and social security | 6,565 | 7,028 | (463) |
| Other payables | 2,518 | 2,525 | (7) |
| VAT payables | 3,385 | 3,136 | 249 |
| Total | 35,199 | 33,091 | 2,108 |
The item "Other current liabilities", amounting to €35,199 thousand as of September 30, 2022, is mainly represented by "Payables to employees" for the fixed and variable component of remuneration, for holidays, as well as the related "Payables to pension and social security" for the related social security contributions. The change in the period is mainly attributable to accruals for thirteenth-month bonuses, unused holiday entitlements and currency exchange effects.
Accrued liabilities and deferred income
The item "Accrued liabilities and deferred income", amounting to €42,070 thousand as of September 30, 2022 is mainly composed of deferred revenues related to the Ease of Care multi-year maintenance contracts. The increase for the period of €5,430 thousand (€36,640 thousand as of December 31, 2021) is due to the execution of new contracts especially related to American companies.
INFORMATION ON THE INCOME STATEMENT
Note 16. Revenues
Revenues classified by type are shown in the following table:
| 30.09.2022 | 30.09.2021 Restated |
Change | |
|---|---|---|---|
| Revenues from sale of products | 442,691 | 403,356 | 39,335 |
| Revenues from services | 33,805 | 28,589 | 5,216 |
| Total Revenues | 476,496 | 431,945 | 44,551 |
As of September 30, 2022, consolidated net revenues amounted to €476,496 thousand, with a growth of 10.3% compared with €431,945 thousand in the same period of 2021. The Group's revenues, classified by recognition method and business segment, are broken down as follows:
| Revenues broken down by recognition method | Datalogic | Informatics | Adjustments | 30.09.2022 |
|---|---|---|---|---|
| Revenues from sale of goods and services - point in time | 424,080 | 10,269 | (1,433) | 432,916 |
| Revenues from sale of goods and services - over the time | 40,115 | 3,465 | - | 43,580 |
| Total | 464,195 | 13,734 | (1,433) | 476,496 |
| Revenues broken down by recognition method | Datalogic | Informatics | Adjustments | 30.09.2021 Restated |
|---|---|---|---|---|
| Revenues from sale of goods and services - point in time | 382,828 | 9,340 | (884) | 391,284 |
| Revenues from sale of goods and services - over the time | 36,303 | 4,359 | (1) | 40,661 |
| Total | 419,131 | 13,699 | (885) | 431,945 |
The Group recognises revenues from the sale of goods and services in a specific moment, i.e. when the control of the assets has been transferred to the customer, generally upon delivery of the goods or the rendering of the service. Revenue is recognised over time instead, based on the stage of completion of the contractual obligations, when the service does not create an asset that has an alternative use for the Group and the Group has the right to payment of the completed service until the date in question.
| Revenues broken down by type | Datalogic | Informatics | Adjustments | 30.09.2022 |
|---|---|---|---|---|
| Sale of goods | 435,925 | 8,016 | (1,250) | 442,691 |
| Sale of services | 28,270 | 5,718 | (183) | 33,805 |
| Total | 464,195 | 13,734 | (1,433) | 476,496 |
| Revenues broken down by type | Datalogic | Informatics | Adjustments | 30.09.2021 Restated |
|---|---|---|---|---|
| Sale of goods | 394,994 | 9,246 | (884) | 403,356 |
| Sale of services | 24,137 | 4,453 | (1) | 28,589 |
| Total | 419,131 | 13,699 | (885) | 431,945 |
Note 17. Cost of goods sold and operating expenses
The following table shows the trends in cost of goods sold and operating costs as of September 30, 2022, compared with the same period of the previous year, including non-recurring costs and expenses.
| 30.09.2022 | 30.09.2021 | Change | |
|---|---|---|---|
| Restated | |||
| Cost of goods sold | 275,930 | 238,619 | 37,311 |
| Operating expenses | 173,626 | 159,189 | 14,437 |
| Research and development expenses | 46,140 | 42,435 | 3,705 |
| Distribution expenses | 82,980 | 73,926 | 9,054 |
| General and administrative expenses | 42,798 | 40,878 | 1,920 |
| Other operating expenses | 1,708 | 1,950 | (242) |
| Total | 449,556 | 397,808 | 51,748 |
Cost of goods sold
Cost of goods sold as of September 30, 2022 was €275,930 thousand, a change for the period of 15.6% mainly related to the increase in volumes. As a percentage of revenues, the ratio increased from 55.2% to 57.9%, recording a deterioration of 2.7 percentage points, as a result of inflationary phenomena, which, starting in the second half of 2021, progressively led to a higher cost of procurement of materials and components.
Operating expenses
Operating expenses, amounting to €173,626 thousand, increased by €14,437 thousand (+9.1%) in the period, compared to the same period in 2021, with the incidence on turnover slightly improving from 36.9% to 36.4%.
"Research and development expenses", which amounted to €46,140 thousandas of September 30, 2022, showed an increase of €3,705 thousand compared with the same period of the previous year, accounting for a stable 9.7% of turnover (9.8% in the same period of the previous year). The increase in the period is mainly attributable to higher depreciation costs and technical consulting services due to ongoing development projects.
"Distribution expenses" amounted to €82,980 thousand, increasing compared to the same period of 2021 by €9,054 thousand (+12.2%). The incidence on turnover increased from 17.1% to 17.4%, with the increase for the period driven particularly by marketing expenses, business travel and visits to customers, trade fairs and commercial events, which were still contained in the previous year due to the pandemic.
"General and administrative expenses" amounted to €42,798 thousand as of September 30, 2022, an increase of €1,920 thousand compared to the same period in 2021, with the incidence on turnover improving from 9.5% to 9.0%.
"Other operating expenses", amounting to €1,708 thousand, were down from the same period in the previous year. These are mainly represented by taxes (excluding on income) and other operating costs; the decrease for the period is mainly due to lower capital losses related to the disposal of assets with multi-year utility.
Breakdown of costs by nature
The following table provides the details of total costs (cost of goods sold and total operating expenses) by nature:
| 30.09.2022 | 30.09.20201 Restated |
Change | |
|---|---|---|---|
| Purchases | 222,528 | 234,898 | (12,371) |
| Change in inventories | (16,485) | (59,483) | 42,998 |
| Personnel costs | 136,837 | 129,710 | 7,127 |
| Amortisation, depreciation and write-downs | 26,419 | 24,192 | 2,226 |
| Goods receipt and shipment expenses | 25,440 | 23,976 | 1,464 |
| Travel and meetings expenses | 5,614 | 2,728 | 2,886 |
| Consumables and R&D material | 5,411 | 4,826 | 585 |
| EDP expenses | 5,264 | 4,121 | 1,143 |
| Legal, tax and other advisory consultancies | 3,837 | 5,710 | (1,873) |
| Marketing expenses | 3,487 | 1,969 | 1,518 |
| Utilities | 3,257 | 1,646 | 1,611 |
| R&D technical consultancies | 2,895 | 1,884 | 1,011 |
| Royalties | 2,370 | 2,116 | 254 |
| Building expenses | 1,804 | 1,473 | 331 |
| Directors' remuneration | 1,739 | 1,632 | 107 |
| Repairs and warranty provision accrual | 1,616 | 1,844 | (228) |
| Installations | 1,528 | 882 | 646 |
| Telephone expenses | 1,473 | 1,400 | 73 |
| Sundry service costs | 1,383 | 1,228 | 155 |
| Expenses for plant and machinery and other assets | 1,365 | 1,073 | 292 |
| Commissions | 1,310 | 1,174 | 136 |
| Recruitment Fees | 1,276 | 939 | 337 |
| Repairs not under warranty | 1,069 | 788 | 281 |
| Quality certification expenses | 945 | 981 | (36) |
| Insurance | 937 | 723 | 214 |
| Vehicle expenses | 920 | 677 | 243 |
| Audit Fees | 740 | 723 | 17 |
| Subcontracted work | 611 | 702 | (91) |
| Entertainment expenses | 486 | 377 | 109 |
| Others | 3,478 | 2,899 | 579 |
| Total Cost of goods sold and operating costs | 449,556 | 397,808 | 51,748 |
Costs for purchases and changes in inventories are up €30,628 thousand (+17.5%) compared with the nine months of 2021. The incidence on turnover is 43.2%, up from the same period of 2021 when it was 40.6%, due to the increase in material and procurement costs.
Personnel costs, at€136,837 thousand (€129,710 thousand in the nine months of 2021) increased by €7,127 thousand compared to the same period of the previous year (+5.5%), although improving as a percentage compared to the same period of 2021, from 30.0% to 28.7%. The change in the period is mainly attributable to foreign exchange effects of approximately €6,800 thousand, the change in the consolidation area of approximately €1,050 thousand, offset by a lower impact of the variable compensation component. The detailed breakdown of personnel costs is as follows:
| 30.09.2022 | 30.09.2021 | Change | |
|---|---|---|---|
| Wages and salaries | 106,136 | 98,747 | 7,389 |
| Social security charges | 21,206 | 20,329 | 877 |
| Post-employment benefits | 1,990 | 1,964 | 26 |
| Severance indemnities and similar benefits | 1,501 | 1,238 | 263 |
| Other labour costs | 6,004 | 7,432 | (1,428) |
| Total | 136,837 | 129,710 | 7,127 |
The item "amortisation, depreciation and write-downs", amounting to €26,419 thousand, increased by €2,226 thousand, due to increased investment in recent years and to the changes in the consolidation area and exchange rate effects of approximately €800 thousand.
"Goods receipt and shipment expenses", equal to €25,440 thousand, increased by €1,464 thousand compared to the same period of the previous year. The incidence on turnover improved to stand at 5.3% (5.6% in the nine months of 2021).
"Travel and meeting expenses" and "Marketing expenses", €5,614 thousand and €3,487 thousand respectively, increased overall by €4,404 thousand compared to the same period of the previous year, following the resumption of site visits to customers, events and trade fairs, suspended for most of 2021 due to the pandemic.
"Utilities", equal to €3,257 thousand, up by €1,611 thousand compared to the same period of the previous year, reflect the increase in the cost of energy in the current economic climate.
"Consumables and R&D material", "R&D technical consultancies," overall increased by €1,596 thousand compared to the same period of the previous year in relation to the development of ongoing R&D projects.
"EDP expenses" show an increase of €1,143 thousand, mainly due to activities to strengthen cybersecurity and outsourcing of a number of IT support services.
Note 18. Other revenues
As of September 30, 2022, "Other revenues"amounted to €1,152 thousand, and is mainly represented by indemnities and reimbursements received from Group companies. Below is the breakdown of other revenues:
| 30.09.2022 | 30.09.2021 | Change | |
|---|---|---|---|
| Grants to Research and Development expenses | 130 | 2,505 | (2,375) |
| Miscellaneous income and revenues | 839 | 427 | 412 |
| Rents | 82 | 20 | 62 |
| Income on disposal of fixed assets | 42 | 207 | (165) |
| Contingent assets | 28 | 55 | (27) |
| Others | 31 | 51 | (20) |
| Total | 1,152 | 3,265 | (2,113) |
The change in the item is mainly related to the recognition in the previous period of the tax credit for R&D activities for the amount of €2,292 thousand.
Note 19. Financial income/(expenses)
| 30.09.2022 | 30.09.2021 | Change | |
|---|---|---|---|
| Financial income/(expenses) | (1,327) | (1,337) | 10 |
| Foreign exchange differences | (6,667) | 767 | (7,434) |
| Fair Value investments | (85) | 129 | (214) |
| Bank expenses | (1,044) | (912) | (132) |
| Dividends | 177 | 114 | 63 |
| Others | 170 | (28) | 198 |
| Total Net Financial Income/(Expenses) | (8,776) | (1,267) | (7,509) |
Net financial income/(Expenses) was negative by €8,776 thousand, worsening by €7,509 thousand compared to the same period in the previous year, the change in the period is mainly determined by the unfavourable trend in currency exchange differences due to the appreciation of the US dollar against the euro.
Note 20. Taxes
The Group's total tax burden as of September 30, 2022 was a negative €3,477 thousand, with a Tax Rate of 18.0%, compared with 17.7% recorded in the nine months of 2021. Current and deferred taxes recognised in the period, as value lower than previous period, were affected by the geographic mix of operating margins that macroeconomic dynamics allowed Group Companies to achieve in the markets in which they operated. Itshould be noted that in the previous year an extraordinary and non-recurring positive component was reported for taxation resulting from the revaluation of patents.
| 30.09.2022 | 30.09.2021 Restated |
Change | |
|---|---|---|---|
| Profit/(Loss) before taxes | 19,316 | 36,135 | (16,819) |
| Tax income (expenses) - for current taxes | 2,155 | 13,242 | (11,087) |
| Tax income (expenses) - for deferred and advance taxes | 1,322 | (6,852) | 8,174 |
| Total Taxes | 3,477 | 6,390 | (2,913) |
| Tax rate | 18.0% | 17.7% | 0.3% |
The tax rate as of September 30, 2022 reflects the best estimate of the effective tax rate expected for the entire financial year.
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 effect (such as the stock-based incentive plan), and the Group's net profit is adjusted for the post-tax effects of translation.
| 30.09.2022 | 30.09.2021 | |
|---|---|---|
| Restated | ||
| Group profit/(loss) for the period | 15,839 | 30,275 |
| Average number of shares (thousands) | 56,539 | 56,331 |
| Basic earnings/(loss) per share | 0.28 | 0.54 |
| Group profit/(loss) for the period | 15,839 | 30,275 |
| Average number of shares (thousands) - Diluted effect | 56,136 | 55,567 |
| Diluted earnings/(loss) per share | 0.28 | 0.54 |
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 November 4, 2010 (most recently amended on June 23, 2021), 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's length conditions. Furthermore, there are other relationships with related parties, always carried out as partof 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 01.01.2022 – 30.09.2022, 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 | Companies | ||
|---|---|---|---|---|
| Company | controlled by Chair |
not consolidated |
30.09.2022 | |
| of B.o.D. | on a line-by | |||
| line basis | ||||
| Equity investments | - | - | 463 | 463 |
| Trade receivables and other, accrued income, prepaid expenses | - | - | 3,401 | 3,401 |
| Receivables pursuant to tax consolidation | 1,807 | - | - | 1,807 |
| Financial receivables | - | - | - | - |
| Payables pursuant to tax consolidation | 3,453 | - | - | 3,453 |
| Trade payables and other, accrued liabilities, deferred income | - | - | 77 | 77 |
| Financial payables | - | - | - | - |
| Commercial and service costs | 90 | 870 | 258 | 1,218 |
| Revenues and other operating revenues | - | - | 9,736 | 9,736 |
| Other revenues | - | - | 106 | 106 |
NUMBER OF EMPLOYEES
| 30.09.2022 | 30.09.2021 | Change | |
|---|---|---|---|
| Datalogic | 3,009 | 2,934 | 75 |
| Informatics | 70 | 75 | (5) |
| Total | 3,079 | 3,009 | 70 |
The Chairman of the Board of Directors (Mr Romano Volta)
Consolidated Interim Report as of September 30, 2022
ANNEXES
ANNEX 1
STATEMENT PURSUANT TO ARTICLE 154-BIS, PARAGRAPH 2, LEGISLATIVE DECREE N. 58/1998
INTERIM REPORT ON OPERATIONS AS OF SEPTEMBER 30, 2022
The undersigned Mr. Alessandro D'Aniello, as Manager in charge of drawing up Datalogic S.p.A.'s accounting statements, hereby certifies that, pursuant to the provision set out by paragraph 2 of Art. 154 bis, of Legislative Decree no. 58 of February 24, 1998, the Consolidated Interim Report as of September 30, 2022 is consistent with the documentary results, the books and accounting records.
Lippo di Calderara di Reno (BO), November 10, 2022
Manager in charge of drawing up the accounting statements
Alessandro D'Aniello
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/or indirectly 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 consolidation area as of September 30, 2022, 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 | 363,086 | 31,900 | |||
| Datalogic Real Estate France Sas | Courtabeuf Cedex – France | € | 2,227,500 | 3,893 | 59 | 100% | ||
| Datalogic Real Estate UK Ltd. | Redbourn - United Kingdom of Great Britain |
GBP | 3,500,000 | 4,688 | 29 | 100% | ||
| Datalogic IP Tech S.r.l. | Bologna – Italy | € | 65,677 | 34,743 | (2,732) | 100% | ||
| Informatics Holdings, Inc. | Plano, Texas - USA | USD | 1,568 | 20,681 | 1,000 | 100% | ||
| Wasp Barcode Technologies Ltd | Redbourn - United Kingdom of Great Britain |
GBP | 0 | 265 | 31 | 100% | ||
| Datalogic (Shenzhen) Industrial Automation Co. Ltd. |
Shenzhen - China | CNY | 2,136,696 | 5,959 | 1,225 | 100% | ||
| Datalogic Hungary Kft | Balatonboglar - Hungary | HUF | 3,000,000 | (7,354) | (9,592) | 100% | ||
| Datalogic S.r.l. | Bologna – Italy | € | 10,000,000 | 154,746 | 12,588 | 100% | ||
| Datalogic Slovakia S.r.o. | Trnava - Slovakia | € | 66,388 | 2,091 | 543 | 100% | ||
| Datalogic USA Inc. | Eugene, OR - USA | USD | 100 | 265,384 | 4,894 | 100% | ||
| Datalogic do Brazil Comercio de Equipamentos e Automacao Ltda. |
Sao Paulo - Brazil | BRL | 20,257,000 | 534 | 177 | 100% | ||
| Datalogic Technologia de Mexico S.r.l. | Colonia Cuauhtemoc - Mexico | MXN | 0 | (420) | (7) | 100% | ||
| Datalogic Scanning Eastern Europe GmbH |
Langen - Germany | € | 25,000 | 3,891 | (66) | 100% | ||
| Datalogic Australia Pty Ltd | Mount Waverley (Melbourne) - Australia |
AUD | 3,188,120 | 1,491 | 169 | 100% | ||
| Datalogic Vietnam LLC | Vietnam | USD | 3,000,000 | 30,046 | 5,020 | 100% | ||
| Datalogic Singapore Asia Pacific Pte Ltd. | Singapore | SGD | 3 | 3,928 | 508 | 100% | ||
| Datasensing S.r.l. | Modena - Italy | € | 2,500,000 | 18,347 | 1,532 | 100% | ||
| M.D. Micro Detectors (TIANJIN) CO., LTD. | Tianjin - China | CNY | 13,049,982 | 1,215 | (130) | 100% | ||
| Micro Detectors Ibérica, S.A.U. | Barcelona - Spain | € | 120,000 | 1,794 | 627 | 100% | ||
| Datalogic Japan Co., Ltd. | Tokyo - Japan | JPY | 9,900,000 | 6 | (66) | 100% | ||
| PEKAT s.r.o. | Brno - Czech Republic | CKZ | 202,000 | (286) | (649) | 100% | ||
| Suzhou Mobydata Smart System Co. Ltd. | Suzhou, JiangSu - China | CNY | 161,224 | 6,852 | 540 | 51% |
The following companies were consolidated using the Equity Method as of September 30, 2022:
| Company | Registered office | Share capital | Total Shareholders' Equity (€/000) |
Profit/loss for the period (€/000) |
% Ownership |
|
|---|---|---|---|---|---|---|
| Datasensor Gmbh (*) | Otterfing - Germany | € | 150,000 | 1 | 10 | 30% |
| CAEN RFID S.r.l. (***) | Viareggio LU - Italy | € | 150,000 | 756 | (114) | 20% |
| R4I S.r.l. (***) | Benevento - Italy | € | 131,250 | 279 | (108) | 20% |
| Datalogic Automation AB (**) | Malmö, Sweden | SEK | 100,000 | 1,253 | 498 | 20% |
(*) data as of December 31, 2020
(**) data as of June 30, 2021
(***) data as of December 31, 2021
ANNEXES
ANNEX 3
RECONCILIATION OF ALTERNATIVE PERFORMANCE INDICATORS (NON-GAAP MEASURES)
The following table shows the reconciliation between EBIT and AdjustedEBIT as of September 30, 2022 compared with September 30, 2021:
| 30.09.2022 | 30.09.2021 | Change | |||
|---|---|---|---|---|---|
| Restated | |||||
| Adjusted EBIT | 33,263 | 6.98% | 45,849 | 10.61% | (12,586) |
| Special Items -Other Expenses and (Income) | 1,777 | 0.37% | 4,563 | 1.06% | (2,786) |
| Special Items - D&A from acquisitions | 3,394 | 0.71% | 3,884 | 0.90% | (490) |
| Total | 5,171 | 1.09% | 8,447 | 1.96% | (3,276) |
| EBIT | 28,092 | 5.9% | 37,402 | 8.7% | (9,310) |
The following table shows the reconciliation between EBITDA and Adjusted EBITDA as of September 30, 2022, compared with September 30, 2021.
| 30.09.2022 | 30.09.2021 Restated |
Change | |||
|---|---|---|---|---|---|
| Adjusted EBITDA | 56,288 | 11.81% | 66,155 | 15.32% | (9,867) |
| Cost of goods sold | 415 | 0.09% | 287 | 0.07% | 128 |
| Research and Development expenses | - | 0.00% | 874 | 0.20% | (874) |
| Distribution expenses | 632 | 0.13% | 736 | 0.17% | (104) |
| General and administrative expenses | 730 | 0.15% | 2,569 | 0.59% | (1,839) |
| Other (expenses) and income | - | 0.00% | 97 | 0.02% | (97) |
| Total | 1,777 | 0.37% | 4,563 | 1.06% | (2,786) |
| EBITDA | 54,511 | 11.44% | 61,592 | 14.26% | (7,081) |
The alternative performance indicators previously illustrated are adjusted for income components arising from nonrecurring events or transactions, restructuring activities, business reorganisation, write-downs of fixed assets, ancillary expenses related to acquisitions of businesses or companies or their disposals including amortisation resulting from the recognition of the purchase price allocation, any other event not representative of normal business activities.
ANNEXES
ANNEX 4
RESTATEMENT 2021
The comparative results as of September 30, 2022 have been restated as a result of the purchase price allocation (PPA) related to the acquisition of the MD Group, which final accounting took place in the fourth quarter of 2021, as required by the accounting standards IFRS 3 revised and IAS 1, as well as the reclassifications of some balance sheet items in order to ensure full comparability of the 2021 results with the same in 2022.
INCOME STATEMENT RESTATEMENT
The table below shows the reconciliation between the Income Statement presented in the Half-Year Financial Report as of September 30, 2021 and the Income Statement restated at the same date.
| (€/000) | 30.09.2021 | Restatement | 30.09.2021 Restated |
|---|---|---|---|
| 1) Revenues | 434,380 | (2,435) | 431,945 |
| Revenues from sale of products | 405,791 | (2,435) | 403,356 |
| Revenues from services | 28,589 | 28,589 | |
| 2) Cost of goods sold | 241,054 | (2,435) | 238,619 |
| Gross Operating Margin (1-2) | 193,326 | 193,326 | |
| 3) Other revenues | 3,265 | 3,265 | |
| 4) Research and development expenses | 42,079 | 356 | 42,435 |
| 5) Distribution expenses | 73,401 | 525 | 73,926 |
| 6) General and administrative expenses | 40,844 | 33 | 40,878 |
| 7) Other operating expenses | 1,950 | 1,950 | |
| Total operating costs | 158,275 | 914 | 159,190 |
| Operating result | 38,316 | (914) | 37,402 |
| 8) Financial income | 14,025 | 14,025 | |
| 9) Financial expenses | 15,292 | 15,292 | |
| Financial income/(expenses) (8-9) | (1,267) | (1,267) | |
| Profit/(Loss) before taxes for the period | 37,049 | (914) | 36,135 |
| Income taxes | 6,125 | 265 | 6,390 |
| Net Profit/(Loss) for the period | 30,924 | (649) | 30,275 |
| Basic earnings/(loss) per share (€) | 0.54 | (0.01) | 0.55 |
| Diluted earnings/(loss) per share (€) | 0.54 | (0.02) | 0.56 |
| Attributable to: | |||
| Shareholders of the Parent Company | 30,443 | (639) | 29,804 |
Minority interests 481 (10) 471
RESTATEMENT OF SEGMENT DISCLOSURE
GROUP REVENUES BY GEOGRAPHICAL AREA
| 30.09.2021 | Restatement | 30.09.2021 | |
|---|---|---|---|
| Restated | |||
| Italy | 43,306 | 346 | 43,652 |
| EMEAI (excluding Italy) | 200,651 | (2,984) | 197,667 |
| Total EMEAI | 243,957 | (2,638) | 241,319 |
| Americas | 123,973 | 11 | 123,984 |
| APAC | 66,450 | 192 | 66,642 |
| Total Revenues | 434,380 | (2,435) | 431,945 |
DATALOGIC DIVISION REVENUES BY BUSINESS SEGMENT
| 30.09.2021 | Restatement | 30.09.2021 Restated |
|
|---|---|---|---|
| Retail | 152,745 | 424 | 153,169 |
| Manufacturing | 117,257 | 3,250 | 120,507 |
| Transportation & Logistics | 59,271 | (509) | 58,762 |
| Healthcare | 12,335 | 1,586 | 13,921 |
| Channel | 79,956 | (7,184) | 72,772 |
| Total Revenues | 421,564 | (2,433) | 419,131 |
