Datalogic — Investor Presentation 2021

Sep 8, 2021

Italian Industrial Day Borsa Italiana

8 SEPTEMBER 2021

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.

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Corporate Overview

Global technology leader in the automatic data capture and industrial automation markets, in the Retail, Manufacturing, Transportation & Logistics, and Healthcare industries Founded in 1972, listed on the Italian Stock Exchange since 2001

Datalogic at a glance

A portfolio of about 1,200+ patents and patent applications

9 Manufacturing and Repair facilities in: Italy, US, Hungary, Slovakia, Vietnam and Australia

450+ engineers in 7 R&D centers and 3 DL Labs in: Italy, USA, Vietnam, China, and Germany

2,826 Employees in 27 countries: 18% Americas, 56% EMEAI, 26% APAC

Core Advantages

• Worldwide leader in the ADC and IA markets
• Balanced presence across markets / segments
• External growth through M&A activities mainly in the IA market
• Leadership in FRS and SIS
• Focus on technology innovation through R&D Investment 11-13%
• 20% of sales from new products*
• Financial strength positioning for future growth
• Sound profitability and cash generation
• Acquisitive in key segments
• Solid operational efficiency and leverage global and low cost industrial footprint
• High potential from economy of scale
• Proven cost flexibility

*New Products: products launched in the last 24 months – 2020 data

Nearly 50 years of Technological Innovation

A Wide Geographical Footprint

Data refer to H1 2021

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 (September 06, 2021): 19.95 Euro

Market Cap (September 06, 2021): 1,166 mln Euro

Auditing Company: Deloitte

Datalogic Group, in line with Sustainability Goals of the United Nations 2030 Agenda, focuses on: data protection and innovation, attention to employees, human rights, training and education, environmental impact management and customer satisfaction.

An action plan for people, planet and prosperity:

• Valuing diversity and supporting gender equality:
  • 33% women on the Board (including CEO)
  • Representation of women in positions of responsibility is 26.4%
  • 37.5% women on the workforce
  • 16.5% of employees are under 30
• Urgent measures to combat climate change:
  • ISO 14001 "Environmental management system"
  • 98% is non-hazardous waste
  • Building sustainable technological infrastructures
• Preserving the human heritage:
  • Health and safety in the workplace
  • Talent development
  • Excellent corporate welfare
  • Improving the evaluation of suppliers and supply chain localization strategies

People

Sustainability Policy

Strategy

Total Addressable Market

MOB

A wide range of products that is able to fulfill our customers' needs for both data collection and process automation

Most complete offer of barcode readers: from retail to industrial scanners, from hand held to mobile

Complementary/Open doors products in the MFG Industry

2020 Total Addressable Market \$5.8 bn 2020 Total Addressable Market \$7.1 bn

Our products are key enablers of critical applications along our customers' supply chain

Self-Shopping Mark & Read Dimensioning & Weighing Systems

Complete Traceability Mark & Trace

Our market by industry

3 4

MANUFACTURING is a huge market that we are not yet covering at it's full potential, worldwide

HEALTHCARE is growing fast and represents a unique opportunity in this «Covid time»

• E-commerce, dark stores
• New physical stores / omni-channel
• Contactless requirements in stores
• Vision and robotic solutions (AI)
• Automotive and tire
• Hybrid/electric cars
• Agility and lean production pushing intralogistics and traceability
• Continued effort to diversify supply chains to avoid disruption in case of local crisis
• COVID-19 pushing tracking and digitalization
• Distribution, storage and injection of COVID-19 vaccines
• Drugs regulations and traceability

• E-commerce micro hubs and micro-fulfilment centers
• Robotics and automation
• Last mile delivery
• Airports' cargo business

Retail Food and Self Check-out are the main drivers

• We meet the needs of retailers globally, from the distribution centers, through check-out, to the customer's home
• Market Leader along the Retail supply chain from 1974 with the first scanner ever sold to a grocery store in Troy, Ohio
• Excellence in productivity and customer experience for self-checkout and attended lanes for both Grocery and Non-Food with FRS and HHS product portfolio ▪ Artificial Intelligence adoption to be ready for the next checkout POS investment

• cycle

• The main international players are experimenting new products and solutions to satisfy new shoppers' needs and improve efficiency of their operations: click & collect, drive & collect, online verification, in real time, of the availability and exact position within the shelves of the products in the store or in the warehouse, assisted selling, self scanning and self check-out

• Retailers are more and more interested in collecting customers' data to do analytics to better serve them
• Increase of distribution centers advanced automated logistics solutions to optimize online shopping and last mile order fulfilment

Datalogic Proposition

Manufacturing All the thrust of industry 4.0

Datalogic Proposition

• Leader in traceability thanks to the most complete and performing offer of stationary industrial scanners
• Unique portfolio provider of smart, interconnected devices able to protect, identify, sense, check and mark
• Datalogic is providing multi-product portfolio to serve all the major manufacturing clients: Automotive, Food and Beverage, Automated Machinery and Electronics, Packaging and Intralogistics

• Industry 4.0 is pushing for multi-technology adoption, product interoperability and enhancement self diagnostic capabilities*
• The adoption of key digital technologies shows a strong growth over the next 5 years
• Robot and AGV: the Industrial Robotics Market stands at 13.9 billion USD with an 11.8% growth **
• Automotive and tire: new segments due to new technology hybrid and electric cars
• Agility and lean production is pushing intralogistics and traceability
• Continued effort to diversify supply chain to avoid disruption in case of local crisis

^* Source: IoT Analytics

^** Source: International Federal of Robotics (IFR) data and Loup Ventures

Transportation & Logistics E-commerce is the market driver

Datalogic Proposition

• We ensure Data Collection to Courier-Express-Parcels, Airports and Logistics
• Datalogic is at the forefront of the development of airport systems, since 1984 with the first automatic reading station in Milan, to the recent contracts on 4 of the 5 main airports worldwide (source SkyTrax rating)
• Historically leader in stationary industrial scanners, Datalogic provides top performing solutions for High-Speed sorting to all the main CEPs and 3PLs

• Datalogic has a big opportunity to seize in the T&L mobility space, especially with the new PDT Skorpio X5 and a complete offer o PDAs (Memor family)

• Growth is driven by e-commerce: order fulfillment is the core process, while high speed sorting and the added ability to manage any size of parcel, is driving the industry growth.

• The omnichannel concept of retailers is evolving towards online orders: dark stores micro fulfillment and last mile delivery as new relevant applications.
• The baggage handling system market is projected to reach pre-covid numbers in 2023-4, cargo applications keep the pace of 3-4% growth Y/Y (*)
• Strong demand for solutions beyond barcode, image-based diagnostics and big data management
• Robotics & Automation: higher productivity, zero-defects, less manual operations

Healthcare Health protection as a top priority

Datalogic Proposition

• We empower the entire Healthcare ecosystem from drug production to patient care

• Datalogic is the sole company providing unique product features for the HC industry such as: Anti-microbial enclosures, Inductive charging technology for battery recharge, and Green spot good match to ensure positive medicine-patient identification

• COVID-19 pushing tracking and digitalization in particular for the distribution, storage and injection of COVID-19 vaccines

• Drugs regulations and traceability
• Hospital investments in patient safety are expected to grow significantly in the next 5 years: technology adoption to secure proper patients traceability and drug administration
• EMR/EHR adoption/expansion in hospitals/clinics (Electronic Medical/Health Record)
• Telemedicine/Telehealth. Health systems are more and more using digital health tools and telehealth platforms to better take care of patients after they leave the hospital

New Product Launches and Innovation

P2X-SERIES

ALADDIN Configuration Tool

❑ Vitality Index at 11.2% impacted by shortage and lower ramp-up in a Covid context

❑ R&D spending* at 10.0 %. Commitment to Product Development Roadmap continues

^* Including capitalized R&D

Key Growth and Strategic Drivers

▪ RTL (\$ 3 bln): check out evolution, cross sell mobile, watch distribution centers carefully

• Keep focus on all of our verticals
• MFG (\$8 bln): expand into new sectors
• T&L (\$2 bln): cross sell complete offer SIS, Mobile, HHS
• Protect our leadership in FRS and SIS
• portable data assistant (PDA)
• HHS: lead the shift to 2D technology
• Investing in complimentary technologies:
  • Vision / Machine learning
  • RFID
  • Digital watermarking
• Investing in Android

▪ Mobile: increase market share completing and widening our offer of portable data terminal (PDT) and

▪ Continuous improvement of core technology (bar code reading) e.g. optics, decoding

▪ Selected target to accelerate our growth particularly in the manufacturing sector

M.D. Acquisition

MD Group

MD Geographic Revenue Breakdown

MD Products

DL Industrial Automation Market

• Large market \$7.7bn
• Industry 4.0 driving solid growth prospect

MD Acquisition

• Group Headquartered in Italy
• € 25M Revenue and €4m Ebitda in 2020
• Complementary Sensors offers for Industrial Automation applications and Synergetic distribution network

Financials & Outlook

H1 2021 Highlights: Record Q2 set up 2021 performance

• ❑ Record Q2 at +46.0% net FX accelerating H1 Top line growth at 31.2% at constant FX despite supply chain challenges.
• ❑ Double digit organic growth across all regions coupled with strong performance in all segments. T&L best performing sector (+82.2% at constant FX) with double-digit increases in all geographies.
• ❑ Despite inflationary headwinds H1 Adj EBITDA margin at 16.0%, back to pre-pandemic level thanks to volumes and leaner cost base.
• ❑ Double digit R&D spending* at 10.0% on revenues, maintaining investment in technology.
• ❑ Net Debt at €18.2M. Positive Net Financial Position at about €16.8M excluding MD acquisition of €35M.
• ❑ Strong H1 Operating Cash generation of €18.2M from improved profitability and capex selectivity.
• ❑ Double digit Order growth coupled with exceptional Backlog set up 2021 performance.
• ❑ Successful integration of the newly acquired MD, contributing to revenue growth by 4.9% in H1.

Group Revenues by Geography

❑ EMEAI: leading Group's performance in H1 at +38.1% Net FX, outstanding Q2 at +72.5% Net FX. Sound growth across all

• countries. Italy, Benelux and Spain remarkable performance.
• ❑ Americas: Group's second-largest market, back to growth +22.5% Net FX. Economic recovery in all areas.
• ❑ APAC: Double digit growth +26.9% Net FX driven mainly by China and acceleration in Japan and Korea.

€ m	H1 2021	H1 2020	Var %	Var % Net FX
EMEAI	162.8	118.8	37.0%	38.1%
Americas	85.6	76.3	12.2%	22.5%
APAC	43.6	35.2	23.6%	26.9%
Total Datalogic	292.0	230.4	26.7%	31.2%

Group Revenues by Segment

❑ Retail: double digit performance in APAC (+26.5% net FX) and EMEAI (+12.0% net FX). Positive booking trend in Americas.

❑ Manufacturing: +42.3% Net FX with solid recovery in Automotive and Packaging in all geographies.

❑ T&L: Outstanding +82.2% growth in H1 Net FX, double digit growth in all region outperforming 2019.

❑ Healthcare: positive trends, especially in EMEAI and APAC, in the hospital sectors and in pharmaceutical distribution.

-

-

• ❑ Channel: Sales to small/medium-size customers largely benefited from the economic recovery (+44.8%) mainly in Americas and EMEAI.

Group Revenues by Segment
€ m	H1 2021	H1 2020 Restated*	Var %	Var % Net FX	% on DL Business Revenues
Retail	101.8	98.9	2.9%	7.2%	Channel 20.6%
Manufacturing	76.2	54.7	39.3%	42.3%
Transportation & Logistics	39.1	22.3	75.5%	82.2%	Retail Healthcare 35.9%
Healthcare	8.0	7.0	14.3%	19.5%	2.8%
Channel	58.4	40.3	44.8%	49.3%	T&L
Total DL Business	283.5	223.2	27.0%	31.3%	13.8%
Informatics	9.0	7.9	14.2%	23.9%	Manufacturing
Intra division	(0.4)	(0.6)			26.9%
Total Datalogic	292.0	230.4	26.7%	31.2%

^*June 30, 2020, comparative data have been restated following the reorganisation of the commercial function launched in 2020.

H1 2021 P&L

▪ Gross Margin at 45.8% impacted by increased input
costs mainly from the shortage of critical materials and shipping
▪ Operating expenses at €100m steady maintaining a
leaner cost base through growth: ✓ R&D costs decrease driven by completion of large
Mobile projects ✓ S&D cost decreased by 6.3% due to efficiencies
▪ Adj EBITDA at steady 16.0%
▪ Net Result at €23.5m vs a break even recorded in H1 2020

.

€ m	H1 2021	H1 2020	Var %
Revenues	292.0	230.4	26.7%
Gross Margin	133.7	105.9
% on Revenues	45.8%	46.0%	-0.2 pp
Operating expenses	(100.3)	(99.5)
% on Revenues	(34.3%)	(43.2%)	+8.8 pp
Adjusted EBITDA	46.8	18.4
% Adj. Ebitda margin	16.0%	8.0%	+8.1 pp
EBIT	28.2	0.3
% Ebit margin	9.7%	0.1%	+9.5 pp
Net Result	23.5	(0.0)
% on Revenues	8.1%	(0.0%)	+8.1 pp

EBITDA Adj: actual vs last year

€ m

.

Net Debt & Cash Flow Analysis : Dec'20 – Jun'21

2021 Outlook

▪ Growth consolidating and accelerating in almost all geographies and all the main market segments in which the Group

▪ Despite uncertainty continues, the strong order intake growth in all geographical areas, and an exceptionally high

• operates. Datalogic achieved growth of over 40% in the second quarter and pre-pandemic profitability.
• backlog set up the basis for very positive expectations for the remainder of the year.
• margin of between 2 and 3 percentage points compared to 2020.

▪ Assuming that the pandemic crisis, supply shortages and the resulting inflation do not escalate further, the Group confirms for the current year its revenue growth target of between 16% and 20%, with an improvement in EBITDA

Contact

IR CONTACTS

IR Manager Laura Bernardelli Tel. +39 051 3147109 ir@datalogic.com Via Candini, 2 40012 Lippo di Calderara di Reno Bologna – Italy

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 daniela.giglioli@datalogic.com

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November 11, 2021 9M 2021 Results

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

© 2019 Datalogic S.p.A. and/or its affiliates - All rights reserved. • Without limiting the rights under copyright, no part of this documentation may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means, or for any purpose, without the express written permission of Datalogic S.p.A. and/or its affiliates • Datalogic and the Datalogic logo are registered trademarks of Datalogic S.p.A. in many countries, including the U.S. and the E.U. • All other trademarks and brands are property of their respective owners.

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