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Datalogic

Investor Presentation Mar 10, 2021

4452_ct_2021-03-10_31b13f76-a846-42b4-9feb-d8257077e3d7.pdf

Investor Presentation

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FY 2020 Results Conference Call

MARCH 10, 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.

3

FY 2020 & Q4 2020 Results

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. 1

1

2020 Highlights: Strong Execution in the downturn

4

  • ❑ 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

5

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 (5.9%)
Transportation & Logistics 53.9 74.4
17.7
(27.6%)
(2.6%)
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

6

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

Americas: Most affected market during the pandemic. Restriction to mobility severely affected the development of the

  • Q4 returning to growth driven by Italy achieving +12.4% vs Q4-2019 pre-Covid.
  • 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.

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

New Product Launches and Innovation

FY 2020 P&L *

consecutive quarters

€ m FY 2020 FY 2019
Restated
Variance
Reported
Constant
F
X
Revenues
Gross Margin
% on Revenues
479.8
219.9
45.8%
585.8
288.1
49.2%
(18.1%)
-3.4 pp
(17.0%)
Gross
Margin
at
45.8%,
decrease
driven
by
lower
volumes
and
price/mix
effects

Operating
expenses
at
€185.8m
down
14.7%
executing
cost
reduction
plans
to
protect
margin:
Operating expenses
% on Revenues
Adjusted EBITDA
% Adj. Ebitda margin
(185.8)
(38.7%)
58.3
12.2%
(217.9)
(37.2%)
92.1
15.7%
-1.5 pp
-3.5 pp

Continue
investing
in
R&D
(10.8%
on
revenues
vs
10.0%
in
2019)
EBIT
% Ebit margin
Net Result
% on Revenues
18.4
3.8%
13.9
2.9%
62.7
10.7%
50.3
8.6%
-6.9 pp
-5.7 pp

S&D
cost
decreased
by
21.2%
due
to
both
tactical
savings
and
efficiencies

Adj
Ebitda
at
12.2%
in
2020
on
Revenue,
reaching
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

9

€ 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

M.D. Acquisition

MD Group

MD Geographic Revenue Breackdown

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

Contact

IR CONTACTS

IR Manager Laura Bernardelli Tel. +39 051 3147109

IR Advisor Vincenza Colucci CDR Communication Srl Tel. +39 335 6909547 [email protected]

IR Assistant Daniela Giglioli Tel. +39 051 3147109 Fax +39 051 3147205 E-mail [email protected]

[email protected] Via Candini, 2 40012 Lippo di Calderara di Reno Bologna – Italy

NEXT EVENTS

www.datalogic.com

DATALOGIC ON LINE

March 23-25, 2021 STAR Conference Milan

April 29, 2021 Shareholders' Meeting

May 13, 2021 Q1 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 [email protected] ww.datalogic.com

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