Datalogic — Investor Presentation 2016

Mar 15, 2016

Star Conference

Milan, March 15th 2016

Disclaimer

This document has been prepared by Datalogic S.p.A. (the "Company") for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company.

Neither the Company nor any of its subsidiaries, affiliates, branches, representative offices (the "Group"), as well as any of their directors, officers, employees, advisers or agents (the "Group Representatives") accepts any responsibility for/or makes any representation or warranty, express or implied, as to the accuracy, timeliness or completeness of the information set out herein or any other related information regarding the Group, whether written, oral or in visual or electronic form, transmitted or made available.

This document may contain forward-looking statements about the Company and/or the Group based on current expectations and opinions developed by the Company, as well as based on current plans, estimates, projections and projects of the Group. These forward-looking statements are subject to significant risks and uncertainties (many of which are outside the control of the Company and/or the Group) which could cause a material difference between forward-looking information and actual future results.

The information set out in this document is provided as of the date indicated herein. Except as required by applicable laws and regulations, the Company assumes no obligation to provide updates of any of the aforesaid forward-looking statements.

Under no circumstances shall the Group and/or any of the Group Representatives be held liable (for negligence or otherwise) for any loss or damage howsoever arising from any use of this document or its contents or otherwise in connection with the document or the aforesaid forward-looking statements.

This document does not constitute an offer to sell or a solicitation to buy or subscribe to Company shares and neither this entire document or a portion of it may constitute a recommendation to effect any transaction or to conclude any legal act of any kind whatsoever.

This document may not be reproduced or distributed, in whole or in part, by any person other than the Company. By viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations.

Agenda

• Group Overview
• Market Outlook
• Business & Strategy
• Financial Highlights

Group Overview

Datalogic at a glance

• Global leader of barcode readers, mobile computers, sensors, vision systems and laser marking systems with innovative solutions in verticals market: Retail, Transportation & Logistics, Factory Automation, Healthcare Industries
• Founded in 1972 by Romano Volta in Bologna, Italy and listed on the STAR Segment of the Italian Stock Exchange since 2001
• A large portfolio of about 1,200 patents
• About 2,600 employees, of which 450 in R&D:
• 1,245 (48%) in Europe
• 636 (25%) in US
• 686 (27%) in APAC
• Direct presence in 30 countries worldwide selling to 120 countries, with more than 1,000 partners worldwide

Over 40 years of Technological Innovation

2012 2015 2001 1988 1997 1972 2002 2011 FOUNDATION Established in Bologna EXPANSION Escort Memory Systems Inc. IDWare Mobile Computing & Comm. LISTING Listed on the STAR segment of Italian Stock Exchange INNOVATION Set up Business Development Division Acquisition of Multiwave Photonics SA Partnership with CAEN RFID Srl Minec AB Laservall SpA Informatics Inc. PSC Inc. Datasensor SpA Evolution Robotics Retail Inc. Accu-Sort Systems Inc. PPT Vision Inc. EXPANSION

Note: Breakdown by area based on 2015 revenues

Stock and Governance

Market Segment: STAR MTA Reuters Code: DAL.MI Bloomberg Code: DAL IM Outstanding Shares: 58,446,491 Share Par-Value: 0.52 Euro each

Ticker: DAL Price (March 10th, 2016): 15.30 Euro Market Cap (March 10th, 2016): 894.2 M Euro Specialist: Intermonte SIM Auditing Company: Reconta Ernst & Young

Market Outlook

Market Outlook – ADC & IA

Source VDC 2015 (base year 2014)

2014 ADC Available Market including POS Retail Scanners, Handheld Scanners and Mobile Computers (Handheld PDA and Fork-Lift Vehicles Mounted Computer) segments

Source VDC 2015 (base year 2014)

Source : VDC 2015 (base year 2014) Figures - Market Researches and Management's Best Estimate

Imagers, Photoelectric Sensors, Safety Light Curtains, Smart Cameras/Vision Sensors, Laser Marking segments (Postal Material Handling, Dimensioner and Integrated Solutions not included)

Market split by technology

Datalogic can offer all the technologies available for products identification

2015 (base year 2014)

* includes only Hand Held Scanners, Industrial Stationary Scanners and Point of Sale Check Out

Business and Strategy

A Unique Selling Proposition…

…with a Wide and Complementary Offer

INDUSTRIAL AUTOMATION AUTOMATIC DATA CAPTURE

Datalogic Strategy and…

STRATEGY

THE OBJECTIVE

To growth at a faster page than the market, getting market shares

THE SCOPE

To remain a product company with new emphasis on solutions to satisfy the needs of End Users in the following Industries: Retail, T&L, Factory Automation, Healthcare

& To consolidate its position in EMEA, become a significant player in NA and further establish itself in APAC with a growing presence in China

ADVANTAGE

Going vertical means moving from a product driven company to a customer driven company and finally reaching the result of "delighting" our Customers

Shifting from a product driven Company to a Customer driven one will be the key to our success.

…Key Priorities

• Revenue Growth well above Market Growth
• Double Digit Growth in North America and China, improving Market Share
• Strong Improvement of Operations Efficiency reducing weight of COGS on revenues thanks to the new Procurement Centre in China, to plants rationalisation (new Hungharian plant for IA) and insourcing of components
• Strict control of Operating Expenses and reduction of G&A, thus improving operating leverage
• Maintain Strong performance on Cash

Customer Focus: Develop Excellent Products

• A large and growing portfolio of about 1,200 patents and pending patent applications
• About 300 pending patent applications in all jurisdictions
• 26.7% of sales from new products*
• 25 new products launched in 2015
• 12 Research & Development Centers
• Around 400 R&D Engineers
• New product development process that starts from the Customers' needs – 1st milestone of the new product development

Portal Scanning

Digital Watermarking

Matrix™ 300

SG4 H

A30 & T4X Smart Camera

* Are considered new products the products announced in the last 24 months

Lead by invention: Investment in R&D will continue Temperature Logger

• Investment in R&D to increase up to 9.5% of revenues
• Launch of RFID products: leveraging the acquisition of 20% of CAEN RFID and the commercial agreement signed
• Scan Engine: The new scan engines family from Datalogic marks the entrance of Datalogic in the OEM market (price verifiers, kiosks, vending machines etc…)
• Extensive Products and Technology Display presented to NRF exhibition "Retail's Big Show 2016"

Moving From Products to Customers

2015 Group revenues by division

2015 Group revenues by verticals

Retail Flows and Applications

Customer expectations

Provide Better Customer Experience

Reduce Checkout Queues

Stock Control

Control Cost & Stock Efficiency

Receiving Warehousing Shipping WAREHOUSING SORTING T&L Flows and Applications Customer expectations Ensure On-Time & Zero-mistakes Times

DELIVERY

Fulfillment

DWS

results

Reduce delivery

Improve Delivery Accuracy

Manage Large Inventories & Items Variety

Control Cost & Efficiency

HANDLING

Factory Automation

Factory Automation

AUTOMOTIVE PACKAGING ELECTRONICS

Automotive Flows and Applications

MARKING IDENTIFICATION QUALITY CONTROL AUTOMATION & SAFETY PARTS & COMPONENTS SUB ASSEMBLY TEST & CONTROL FINAL ASSEMBLING

Customer expectations

Pervasive Parts Traceability

Accurate Vision Inspection & Measurement

Tires

Traceability Operators Safety

Electronics Flows and Applications

Customer expectations

Traceability Assembling Control

Product Personalization/ Branding

Packaging Flows and Applications

Customer expectations

Reducing Errors Preventing

Infections

Increase Staff Productivity

Realtime Tracking & Tracing

Accurate Asset Management

Financial Highlights

2015 Key Factors

* Are considered new products the products announced in the last 24 months

Highlights FY 2015

Revenues

• +15.2% YoY to 535.1 mln Euro (+5.9% at constant exchange rate)
• Growth driven by ADC in North America, Greater China and Europe thanks to robust investments by retailers and the launch of technologically advanced products
• Industrial Automation exploits growth opportunities in Europe and Asia Pacific
• Strong increase of the booking : +17.6% YoY at 563.3 mln Euro
• +6.2% YoY to 73.7 mln Euro (+8.6% at constant exchange rate)
• EBITDA margin at 13.8% (15.3% at constant exchange rate) vs 14.9% in 2014
• Investment in R&D grew by 11.9% YoY with an incidence of 9% on revenues, continued to be crucial for the development of the Group

Net Profit

EBITDA

• Strong improvement of financial costs thanks to a cheaper financing contract
• Tax rate at around 21%
• Robust growth of net income
• The BoD proposed a dividend of 0.25 Euro per share, +38.9% YoY

FY 2015 Profit and Loss

(€000)	FY2015		FY2014		Var %
Revenues	535,068	100.0%	464,546	100.0%	15.2%
COGS	(286,450)	(53.5%)	(236,101)	(50.8%)	21.3%
Gross Operating Profit	248,618	46.5%	228,445	49.2%	8.8%
Other Revenues	3,504	0.7%	2,239	0.5%	56.5%
R&D	(48,244)	(9.0%)	(43,108)	(9.3%)	11.9%
Distribution Costs	(101,095)	(18.9%)	(88,205)	(19.0%)	14.6%
Administrative Expensive	(39,521)	(7.4%)	(39,146)	(8.4%)	1.0%
Other operating expensive	(2,041)	(0.4%)	(2,206)	(0.5%)	(7.5%)
Total Operating expenses and other	(190,901)	(35.7%)	(172,665)	(37.2%)	10.6%
Depreciation	(7,812)	(1.5%)	(7,199)	(1.5%)	8.5%
Ammortisation	(4,715)	(0.9%)	(4,225)	(0.9%)	11.6%
EBITDA	73,748	13.8%	69,443	14.9%	6.2%
Non recurring costs/rev	(2,564)	(0.5%)	(5,618)	(1.2%)	(54.4%)
Amort. Intang. Assets from acquis.	(5,712)	(1.1%)	(5,493)	(1.2%)	4.0%
Operating Profit (EBIT)	52,945	9.9%	46,908	10.1%	12.9%
Financial (costs)/rev.	(4,448)	(0.8%)	(8,086)	(1.7%)	(45.0%)
Foreign exchange (cost)/rev	3,087	0.6%	357	0.1%	n.m
EBT	51,584	9.6%	39,179	8.4%	31.7%
Taxes	(11,037)	(2.1%)	(8,322)	(1.8%)	32.6%
Net Income	40,547	7.6%	30,857	6.6%	31.4%
Exchange Rate	1.1095		1.3285

Revenues Trend by Country and Division

REVENUES BY GEOGRAPHIC AREA

€mln	2015	2014	Var %
Europe	268.5	244.0	10.0%
North America	161.1	132.6	21.4%
Asia Pacific	71.5	57.3	24.7%
ROW	34.0	30.6	11.0%
Total Revenues	535.1	464.5	15.2%

REVENUES BY DIVISION
€mln	2015	2014	Var %
ADC	364.0	309.7	17.5%
IA	146.1	130.3	12.1%
- IA ex BU Systems	129.0	114.5	12.6%
Informatics	27.4	26.1	4.8%
Corporate and Adj.	(2.4)	(1.6)	n.m.
Total Revenues	535.1	464.5	15.2%

FY2015 Segment Reporting

Gross Operating Profit	2015	2014
ADC	47.3%	50.8%
Industrial Automation	44.8%	45.7%
- IA ex BU Systems	50.1%	49.6%
Informatics	43.7%	45.1%
Total Group	46.5%	49.2%

EBITDA* Margin	2015	2014
ADC	22.3%	23.9%
Industrial Automation	5.9%	5.9%
- IA ex BU Systems	9.3%	7.8%
Informatics	(0.1%)	4.9%
Total Group	13.8%	14.9%

R&D/Revenues	2015	2014
ADC	10.7%	9.7%
Industrial Automation	12.3%	11.3%
Informatics	4.3%	2.9%
Total Group	9.0%	9.3%

TWC/Annualized Revenues	2015	2014
ADC	5.1%	6.9%
Industrial Automation	13.7%	15.7%
Informatics	6.1%	12.5%
Total Group	6.8%	8.7%

(*) With the purpose to better report the operating sectors economic performances, it was deemed appropriate to highlight the Divisional EBITDA as monitoring KPI.

EBITDA: Actual vs Last Year

The Exchange rate variance is the result of the difference between Dec '15 YTD Actual (1.1095) and Dec '14 YTD Actual (1.3285) €/USD exchange rates.

Consolidated Balance Sheet at 31.12.2015

Contacts

IR CONTACTS

IR Manager Vincenza Colucci CDR Communication Srl Tel. +39 335 6909547 E-mail vincenza.colucci@cdr-communication.it E-mail ir@datalogic.com

IR Assistant Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail daniela.giglioli@datalogic.com

Via Candini, 2 40012 Lippo di Calderara di Reno Bologna – Italy www.datalogic.com

NEXT EVENTS

May 13th, 2016 1Q results

August 4th, 2016 6M results

November 11th, 2016 9M results

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