Datalogic — Investor Presentation 2021

Feb 24, 2021

IT Conference

24 FEBRUARY 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 process 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 and more than 350 in approval

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

Over 45 years of Technological Innovation

Solid long-term growth

Sales CAGR 2001-2019 +10%

• A history of growth in profitability 10%
• Strong improvements across key indicators reflecting investments in innovation, M&A and better efficiency and productivity -15% -10%
• Robust cash generation -20%

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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 (February 19, 2021): 16.12 Euro

Market Cap (February 19, 2021): 942 mln Euro

Auditing Company: Deloitte

Strategy

Total Addressable Market

• Fixed retail scanners #1 WW: > 35% market share
• Stationary industrial scanners #1 WW: = 20% market share
• Handheld Scanners #3 WW: ≈ 20% market share

DATALOGIC MKT SHARE

TAM: ~ 12.4 bln USD

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

Retail

• 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 up to now with the innovative frictionless shopping solution presented at the 2019 NRF exhibition in New York

• Machine learning technology 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

Datalogic Proposition

Manufacturing

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, and Intralogistics

• Market trends

  • Industry 4.0
• DPM / Extended Traceability and Quality Inspection
• Robotics / AGV
• New segments due to new technology (i.e. Electric car)
• 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
• The Industrial Robotics Market stands at 13.9 billion USD with an 11.8% growth **

^* Source: IoT Analytics

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

Transportation & Logistics

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 contract with a main European hub in compliance with new IATA requirements
• Datalogic's proven capabilities are reflected by the recent "Platinum" supplier qualification granted by a world leader in the shipping and logistics sector

• Historically leader in stationary industrial scanners and sorting solutions Datalogic has a big opportunity to seize in the T&L mobility space

• Growth is driven by E-commerce: high speed sorting, ability to manage any size of parcel, and high flexibility. E-Commerce is driving the industry growth

• Resolution 753 requires (from June 2018) IATA members to maintain an accurate inventory of baggage by monitoring the acquisition and delivery of baggage
• The baggage handling system market* is projected to reach USD 9.4 Billion by 2020, at a CAGR of 8% from 2015 to 2020
• Strong demand for solutions beyond barcode
• Robotics & Automation: collaborative robots and automatic solutions to get higher productivity, zero-defects, reducing manual operations

Healthcare

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

• 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

• Drugs tracking to avoid counterfeit medications
• HC Emerging trends: 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 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

Mobile Computer

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 HANDSCANNER™

S8 Series IO Link

Gryphon 4200 Series

Sensors

Key Growth and Strategic Drivers

▪ Keep focus on all of our verticals

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

M&A

- MFG (\$7 bln): expand into new sectors

• T&L (\$2 bln): cross sell complete offer SIS, Mobile, HHS
• Protect our leadership in SIS
• FRS: Be ready for the next generation/evolution not revolution
• 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 and/or to acquire critical technologies

Financials & Outlook

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

• ❑ 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 13.2	(33.9%) (11.3%)
Healthcare	11.7
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

❑ 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

9M 2020 P&L *

					▪ 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% (140.7)	220.0 49.9% (165.0)	-3.7 pp	-3.4 pp	✓ Continue investing in R&D expenses (R&D on
% on Revenues	(40.5%)	(37.4%)	-3.2 pp	-3.1 pp	revenues at around 12%)
Adjusted EBITDA % Adj. Ebitda margin	37.2 10.7%	71.1 16.1%	-5.4 pp	-5.1 pp	✓ S&D cost decreased by 20.1% after 31.5% cost reduction in Q3.
EBIT % Ebit margin Net Result	8.2 2.4% 4.6	50.0 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
					Result at €4.6m

* 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

€ 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 NEXT EVENTS

www.datalogic.com

DATALOGIC ON LINE

March 9, 2021 FY 2020 Results

March 23-25, 2021 STAR Conference Milan

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