Datalogic — Investor Presentation 2021

Mar 23, 2021

Virtual STAR Conference

23 MARCH 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.

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 affect 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.

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

≈ 1,200+ patents filed

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

500 engineers in 11 R&D centers and 3 DL Labs in: Italy, USA, Vietnam, China, and Germany

2,826 Employees in 28 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 thru 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 industrial footprint
• High potential from economy of scale
• Proven cost flexibility

*New Products: products launched in the last 24 months

Nearly 50 years of Technological Innovation

A Wide Geographical Footprint

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 22, 2021): 18.21 Euro

Market Cap (March 22, 2021): 1,070 mln Euro

Auditing Company: Deloitte

Strategy

Serviceable Available Market

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

Undisputed leadership on barcode readers

Complementary/Open doors products in the MFG Industry

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

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

❑ Vitality Index (New products*/ sales) at 20.0% in line with 20.1% in 2019 ❑ R&D spending**, amounted to approximately € 63.0 m, reaching 13.1% as a percentage of Revenues compared to 10.8% in the 2019

2020 New Product Launches and Innovation

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 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

20

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

2020 Highlights: Strong Execution in the downturn

• ❑ Progressive Top line improvement during the Pandemic from -26.8% in Q2 to 5.4% in Q4. EMEAI and Americas affected. Solid Growth in APAC
• ❑ Strong execution both on tactical and operational efficiency delivering Second-Half Adj Ebitda margin back to pre-pandemic level at 16.0%
• ❑ Protected investment in Innovation with R&D spending* at ca. 13.1% and Vitality Index at 20.0%
• ❑ Cash Generation in Q4 delivering Net Financial Position positive at 8.2 M€
• ❑ Sound signs of rebound starting from Q4 in all geographies coupled with leaner cost base preparing return to profitable growth
• ❑ Strengthened position in Industrial Automation with the acquisition of MD Micro Detectors Group in Q1 2021

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

Operating costs

Ebitda Margin

Group Revenues by Segment

❑ Retail: Decline driven mainly by Americas and base effect from end of major FRS Roll-outs in 2019

❑ Manufacturing: 40.3% growth in APAC. EMEAI and Americas impacted by Covid particularly in Automotive

• ❑ T&L: Double digit growth in APAC . Tough comparison in Americas due to the conclusion of important multi-year contracts
• ❑ Healthcare: double digit growth in APAC, slight decrease in EMEAI and North America
• ❑ Channel: Distributors destocking and small/medium size business decline during the pandemic

€m	FY 2020	FY 2019 Restated*	Var % vs. FY 2019
Retail	198.3	231.1	(14.2%)
Manufacturing	110.7	117.7 74.4 17.7	(5.9%) (27.6%) (2.6%)
Transportation & Logistics	53.9
Healthcare	17.2
Channel	84.5	127.3	(33.6%)
Total DL Business	464.6	568.1	(18.2%)
Informatics	16.4	18.7	(12.3%)
Intra division	(1.2)	(1.1)	7.4%
Total Datalogic	479.8	585.8	(18.1%)

^* December 31, 2019 comparative data have been restated to reflect the new allocation of Group's revenues to geographic areas and business sectors, as redefined by the " New Sales Organization" model launched in 2020 and the classification of Solution Net Systems Inc. as discontinued operation according to IFRS 5.

Group Revenues by Geography

❑ EMEAI: performance affected by Covid-19 and phase-out of major Fixed Retail Scanners roll-outs. Signs of recovery in H2, with

• Q4 returning to growth driven by Italy achieving +12.4% vs Q4-2019 pre-Covid.
• ❑ Americas: Most affected market during the pandemic. Restriction to mobility severely affected the development of the costumer base
• ❑ APAC: Double digit growth in the second part of the year driven mainly by China in T&L and Manufacturing.

€m	FY 2020	FY 2019 Restated*	Var % vs. FY 2019
EMEAI	254.8	307.1	(17.0%)
Americas	151.2	210.1	(28.0%)
APAC	73.8	68.5	7.7%
Total Datalogic	479.8	585.8	(18.1%)

^* December 31, 2019 comparative data have been restated to reflect the new allocation of Group's revenues to geographic areas and business sectors, as redefined by the " New Sales Organization" model launched in 2020 and the classification of Solution Net Systems Inc. as discontinued operation according to IFRS 5.

FY 2020 P&L *

consecutive quarters

€ m	FY 2020	FY 2019 Restated	Variance Reported	Constant F X	▪ Gross Margin at 45.8%, decrease driven by lower
Revenues	479.8	585.8	(18.1%)	(17.0%)	volumes and price/mix effects
Gross Margin % on Revenues Operating expenses	219.9 45.8% (185.8)	288.1 49.2% (217.9)	-3.4 pp		▪ Operating expenses at €185.8m down 14.7% executing cost reduction plans to protect margin:
% on Revenues Adjusted EBITDA	(38.7%) 58.3	(37.2%) 92.1	-1.5 pp		✓ Continue investing in R&D (10.8% on revenues vs 10.0% in 2019)
% Adj. Ebitda margin EBIT	12.2% 18.4	15.7% 62.7	-3.5 pp		✓ S&D cost decreased by 21.2% due to both tactical
% Ebit margin Net Result	3.8% 13.9	10.7% 50.3	-6.9 pp		savings and efficiencies ▪ Adj Ebitda at 12.2% in 2020 on Revenue, reaching
% on Revenues	2.9%	8.6%	-5.7 pp		15.9% in Q4 vs 14.5% in Q4-2019 pre-Covid
					▪ Net Result at €13.9m consolidating recovery for three

* December 31, 2019 economic data 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

27

€ m

* December 31, 2019 economic data 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 – Dec'20

€ m

2021 Outlook

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

▪ Encouraging signs of end markets recovery in all geographical areas, corroborated by a significantly improved trend in order intake versus early 2020. Despite high levels of uncertainty continues, under Covid emergency and shortage of some components in the short-term, Datalogic expects to see a gradual recovery in 2021 Revenues and an

• measures to protect business and profit
• improvement in the profit margin levels with respect to 2020
• while consolidating and repositioning its presence in the core markets

▪ In this context, the Group's strategy confirms its focus on innovation and investment in strategic market segments

Contact

IR CONTACTS NEXT EVENTS

www.datalogic.com

DATALOGIC ON LINE

April 29, 2021 Shareholders' Meeting

May 13, 2021 Q1 2021 Results

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

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