Datalogic — Investor Presentation 2020

Nov 13, 2020

9M 2020 Results Conference Call

NOVEMBER 13, 2020

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.

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3

9M 2020 & Q3 2020 Results

Net Debt at €39.9

9M 2020 Results

€ m

1

The comparative economic data as at 30 September 2019 were restated following the classification of Solution Net Systems Inc. as discontinued operation as required by the accounting standard IFRS 5 1

9M 2020 Financial Highlights

• ❑ Effectively navigating through Covid-19 challenges providing operations continuity while protecting our teams.
• ❑ Covid-19 pandemic impacting EMEAI and Americas Revenues especially in US. Solid Growth in APAC continue
• ❑ Aggressive cost actions ensured double digit Adj EBITDA margin and Return to Profitability since Q2.

Q3 Adj EBITDA at 16.2% back to 2018-19 levels despite drop in Top line thanks to Efficiency Program.

• ❑ Continue investing in Innovation during the pandemic with R&D spending* at ca. 14.2% and Vitality Index at 21.8%
• ❑ Solid Financial Position and effective Working Capital management during the Covid downturn
• ❑ Sound signs of rebound in recent months in most of the end markets and geographies coupled with leaner cost base preparing return to profitable growth

^* Including capitalized R&D expenses and excluding D&A

Group Revenues by Segment

5

• ❑ Retail: delayed investments due to Covid scenario and end of FRS rollouts in 2019 especially in EMEAI and Americas.
• ❑ Manufacturing: solid growth in APAC. Slowdown in Automotive and Packaging sectors impacting EMEAI and North America
• ❑ T&L: tough base of comparison due the conclusion of important multi-year contracts. Signs of recovery in EMEAI and APAC
• ❑ Healthcare: decrease in EMEAI and Americas, almost flat in APAC
• ❑ Channel: overall decrease due to destocking, although trend improvements both in EMEAI and Americas in Q3

€m	9M 2020	9M 2019 Restated*	Var % vs. 9M 2019
Retail	142.7	171.0	(16.6%)
Manufacturing	81.5	89.1	(8.5%)
Transportation & Logistics	38.5	58.3	(33.9%)
Healthcare	11.7	13.2
Channel	61.6	97.1	(36.6%)
Total DL Business	335.9	428.6	(21.6%)
Informatics	12.1	13.7	(11.9%)
Intra division	(0.9)	(0.8)	8.8%
Total Datalogic	347.1	441.4	(21.4%)

^* The comparative data as at 30 September 2019 have been restated to reflect the new allocation of the Group's revenues to geographic areas and business sectors, as redefined following the " New Sales Organization" launched in 2020 and the classification of Solution Net Systems Inc. as discontinued operation according to IFRS 5

Group Revenues by Geography

6

❑ EMEAI: Decline driven by softness in all end markets and phase-out of major Fixed Retail Scanners roll-outs. Signs of recovery

❑ Americas: market slowdown as a result of pandemic. Declining performance especially in T&L, following the completion of

• in late Q3 and beginning of Q4
• multi-years significant contracts.
• ❑ APAC: double digit growth in Manufacturing driven mainly by Consumer Electronics in China. T&L growing in Q3

€m	9M 2020	9M 2019 Restated*	Var % vs. 9M 2019
EMEAI	179.6	233.0	(23.0%)
Americas	112.3	155.5	(27.8%)
APAC	55.2	52.9	4.3%
Total Datalogic	347.1	441.4	(21.4%)

^* The comparative data as at 30 September 2019 have been restated to reflect the new allocation of the Group's revenues to geographic areas and business sectors, as redefined following the " New Sales Organization" launched in 2020 and the classification of Solution Net Systems Inc. as discontinued operation according to IFRS 5

❑ Vitality Index (New products*/ sales) at 21.8% in 9M2020 above last year with 20.8% in 9M2019

❑ R&D spending**, from €48.4m to €49.2m, reaching 14.2% as a percentage of Revenue compared to 11.0%

in the first 9 months of 2019

New Product Launches and Innovation

Memor 10 Ethernet Adaptor

Mobile Computer

Memor K Introduction

Hand Held Scanners

Gryphon 4500 DISINFECTANT and ANTIMICROBIAL (DRA) Models

*New Products: products launched in the last 24 months ** Including capitalized R&D expenses and excluding D&A Gryphon 4200 Series

JOYA™ TOUCH A6 WITH ANDROID™ 8.1 OREO

9M 2020 P&L *

Result at €4.6m

					▪ Gross Margin at 46.1%, decrease driven by lower
€ m	9M 2020	9M 2019 Restated	Variance Reported	Constant F X	volumes and price/mix effects ▪ Operating expenses at €140.7m down 14.7% and -
Revenues	347.1	441.4	(21.4%)	(20.8%)	24.7% in Q3 executing cost reduction plans to protect margin:
Gross Margin % on Revenues Operating expenses	160.1 46.1%	220.0 49.9%	-3.7 pp	-3.4 pp	✓ Continue investing in R&D expenses (R&D on
% on Revenues	(140.7) (40.5%)	(165.0) (37.4%)	-3.2 pp	-3.1 pp	revenues at around 12%)
Adjusted EBITDA % Adj. Ebitda margin EBIT	37.2 10.7% 8.2	71.1 16.1% 50.0	-5.4 pp	-5.1 pp	✓ S&D cost decreased by 20.1% after 31.5% cost reduction in Q3.
% Ebit margin Net Result	2.4% 4.6	11.3% 39.7	-9.0 pp		▪ Adj Ebitda margin at 10.7% in 9M with solid
% on Revenues	1.3%	9.0%	-7.7 pp		recovery in Q3 at 16.2% , back to 2019 levels ▪ Second consecutive quarters of Profit with Net

* The comparative economic data as at 30 September 2019 were restated following the classification of Solution Net Systems Inc. as discontinued operation as required by the accounting standard IFRS 5.

EBITDA Adj: actual vs last year

9

€ m

^* The comparative economic data as at 30 September 2019 were restated following the classification of Solution Net Systems Inc. as discontinued operation as required by the accounting standard IFRS 5

Net Debt & Cash Flow Analysis : Dec'19 – Sep'20

€ m

* Including IFRS 16 impact, Sep' 19 Restated Capex 32,2 m€

2020 Outlook

▪ In this unprecedent context, The Group has promptly reacted this fast-moving scenario implementing aggressive cost

• measures to protect business and profit
• 9M 2020 performance

▪ Good signs of end markets recovery in all geographies in late Q3 and Q4 start. Despite the high degree of uncertainty about the evolution of the pandemic, if the second wave of Covid-19 does not bring severe consequences on business, Datalogic foresee, for the end of 2020, a slight improvement in the revenues decline and steady margins compared to

▪ In this context, the Group's strategy confirms its focus on innovation and investment in strategic market segments, pursuing both organic and external growth, while consolidating and repositioning its presence in the core markets

Contact

IR CONTACTS

IR Manager Laura Bernardelli Tel. +39 051 3147109

IR Advisor Vincenza Colucci CDR Communication Srl Tel. +39 335 6909547 vincenza.colucci@cdr-communication.it

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

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

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This presentation contains statements that are neither reported financial results nor other historical information. These statements are forward-looking statements. These forward-looking statements rely on a number of assumptions and are subject to a number of risks and uncertainties, many of which are outside the control of Datalogic S.p.A., that could cause actual results to differ materially from those expressed in or implied by such statements, such as future market conditions, currency fluctuations, the behavior of other market participants and the actions of governmental and state regulators

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Datalogic S.p.A.

Via Candini, 2 - 40012 Lippo di Calderara di Reno - Bologna (Italy) Tel. +39 051 3147011 | Fax +39 051 3147205 corporate@datalogic.com ww.datalogic.com