Datalogic — Investor Presentation 2022

Mar 22, 2022

STAR Conference

22 MARCH 2022

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, China and Australia

450+ engineers in 8 R&D centers and 3 DL Labs in: Italy, USA, Vietnam and China

2,990 Employees in 27 countries: 16% Americas, 59% EMEAI, 25% APAC

Core Advantages

Strong positioning

• Worldwide leadership in barcode reading for Manufacturing, T&L and Retail applications
• Well-established brand with solid global customer base including Fortune 500 Companies
• Dedicated focus on Smart Sensors and Safety for Automated Manufacturing

Innovation

• Focus on core identification/barcode reading technology while investing in the new frontier of Artificial Intelligence, Machine Vision and Deep Learning
• solutions

• Sound investments to enhance Product offer with easy-to- integrate

Sound prospects

-

• M&A in key segments to expand market share and boost technology • Solid profitability and cash generation

50 years of Growth through Technological Innovation

Acquisition of Pekat Vision

Pekat is a software start up who has developed and owns proprietary algorithms of Machine Learning and Deep Learning for applications in the fields of supply chain and industrial automation.

Company Description

• Based in Brno, Pekat's core competitive advantage resides in its deep learning and machine learning algorithms
• Those algorithms and related software are a perfect match to Datalogic hardware products line, allowing for flexible solutions in a wider set of applications across manufacturing, T&L and potentially retail.
• Applications in which Pekat's software is used currently include object detection, classifier, defect detection, product sorting, camera-based robot guidance, optical character recognition and video, among others
• The team at Pekat comprises 15 employees, engineers, software developers mainly
• Purchase price of € 16.0m for 100% of the share capital

Strategy

28B\$ of Total Addressable Market in 2025 B\$

Source: VDC, ARC Advisory Group, Infinity Research, RAIN Alliance, Datalogic internal analysis

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 Increasingly self check-out and contactless

• 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
• Perfect partner to automate operations and exploit Retail analytics, thanks to AI/machine learning-driven applications and automation
• Innovative solutions to integrate in-store with warehouse operations

Datalogic Proposition

2021 Results

• The Retail sector grew by 6.2% (+7.7% at constant exchange rates) compared to 2020; The APAC region led the growth with +23.9%, followed by EMEAI (+10%)
• In the food segment (60% of retail sales), there is a strong shift to selfcheckout
• In non-food segment, growth has been driven by omnichannel solutions
• By 2022, a further acceleration is expected towards solutions that can facilitate the shopping process at the physical shop (customer experience), both selfservice stations and self-scanning devices

Manufacturing Process digitization

Datalogic Proposition

2021 Results

• Multi-product portfolio to serve all the major manufacturing clients: Automotive, Food and Beverage, Automated Machinery and Electronics, Packaging and Intralogistics
• Leader in traceability thanks to the most complete and performing offer of stationary industrial scanners

• Unique portfolio provider of smart, interconnected devices able to unlock new frontiers of action-oriented insights based on advanced analytics (e.g. predictive maintenance)

• Successful integration of MD acquisition, contributing to revenue growth in the manufacturing sector by about 17.3%, into the newly created Datasensing

• The Manufacturing sector grew by 48.3% (+48.4% at constant FX), +31.1% at organic level) in all segments of the industry and in particular in Automotive (+50.4%), Packaging (+50.6%) and Food & Beverage (+43.8%)
• EMEAI (+61.3%) and the Americas (+40.3%) lead the sector's trend
• By 2022, the focus of the sector's expected development will be the continuation of plans to digitise manufacturing and intralogistics processes based on large-scale identification and traceability of parts and components.

Transportation & Logistics E-commerce is the market driver

Datalogic Proposition

2021 Results

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

• Increased level of efficiency and full tracking capabilities along different supply chain phases for enhanced decision-making

• The T&L sector grew by 51% (+52.6% at constant FX) compared to 2020, with peaks of expansion in Europe, where growth affected almost all sectors

• Growth in North America has been driven by large express couriers which have been joined by the development of the supply chain of large retail brands, both food and non-food
• In the Far East, the most considerable progress was made in China and South Korea, areas in which Datalogic operates through a network of partners that have made a major contribution to the completion of important projects, including and not only in the e-commerce sector

13

Healthcare Digital dominates and sustainability grows

Datalogic Proposition

2021 Results

• 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

• The Healthcare sector remained broadly stable compared to 2020 (+0.2% at constant FX), with positive trends especially in EMEAI and APAC in the hospital and pharmaceutical distribution sectors

• The Datalogic Group sustained its offering of solutions for the traceability of vaccines, as well as of patients in admissions and bedside care, to track patients' health record and to ensure that the correct drug is administered to each patient
• As in 2020, particular attention was paid to reducing the risk of contamination in the hospital, thanks to devices with disinfectant-ready and antimicrobial external plastics

New Product Launches and Innovation

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

❑ R&D spending* at 9.6%. Commitment to Product Development Roadmap continues

penetration

• Protect our leadership in FRS, HHS and SIS
• Enhance our offer through a software ecosystem to provide innovative solutions
• Increase MOB market share completing and widening our offer
• Intensify cost optimization to fight hardware commoditization

Market	Portfolio	M&A	Innovation
• Keep focus on all of our verticals, catching the profitable opportunities coming from needs of	• Protect our leadership in FRS, HHS and SIS • Enhance our offer through	• Technology: acquire IP, skills, products and concepts to boost and portfolio and
digitalization and artificial intelligence	a software ecosystem to provide innovative	capabilities
	solutions	• Expansion: acquire
• Consolidate position in		customers to boost

• Keep focus on all of our verticals, catching the profitable opportunities coming from needs of digitalization and artificial intelligence

• Consolidate position in EMEAI, become a strong player in the United States and keep growing our presence in China

• Nurture MV-based SW and Deep Learning technology to tackle key emerging trends

• Dominate key technology trends (e.g. 5G, Wifi-6, Cybersecurity) to prepare for next generation of HW products

Key drivers for a profitable growth

Financials & Outlook

FY 2021 Highlights: sound growth results and a return to pre-pandemic levels

• ❑ Exceptional growth on the Top line +26.4% at constant FX (+20.7% organic) across all geographies despite supply chain challenges
• ❑ Strong performance in all industries and all geographies. T&L (+52.6% at constant FX) and Manufacturing (+48.4% at constant FX) top performers. Position strengthened in EMEAI with +32.8% growth at constant FX
• ❑ Adj EBITDA margin improved by 2.1pts vs 2020 at 14.3% despite rising inflationary challenges, not yet fully offset by price increases in the second half of the year
• ❑ R&D spending* at 9.6% on revenues, confirming the Group's Innovation roadmap
• ❑ Net Debt at €26.1M, €8.9M cash excluding MD Group acquisition of €35M
• ❑ New Customer acquisition (ca. 20% of revenue) contributing to record high order portfolio
• ❑ Successful integration of MD acquisition, contributing to revenue growth in the manufacturing sector by about 17.3%, into the newly created Datasensing

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

Group Revenues by Geography

❑ EMEAI: leading Group's performance in 2021 at +32.8% Net FX. Sound growth across all countries. Spain, France and the

❑ Americas: Group's second-largest market, achieved growth of +15.1% Net FX. T&L and MFG expansion as primary drivers of the

• Netherlands remarkable performance.
• regional growth.
• ❑ APAC: Double digit growth +28.8% in 2021 driven mainly by China and acceleration in Korea and Japan.

€m	2021 FY	2020 FY	% Var	% Var Net FX
EMEAI	337	254	6%	8%
	8	8	32	32
Americas	167	151	9%	1%
	7	2	10	15
APAC	95	73	28	27
	0	8	8%	6%

Group Revenues by Segment

❑ Retail: double digit performance in APAC +23.9% and EMEAI +10.0% offsetting the slowdown in the US market.

❑ Manufacturing: +48.4% Net FX with solid growth in Automotive, Packaging and Food & Beverage. The acquisition of the MD Group

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

• contributed approximately 17.3% to the growth for the period.
• ❑ T&L: Best performing sector (+52.6% Net FX), double digit growth in all regions led by e-commerce.
• EMEAI.
• ❑ Informatics: Double digit growth driven by SaaS business.

❑ Channel: Sales to small/medium-size customers largely benefited from the economic recovery (+29.3%) mainly in Americas and

€m	2021 FY	FY 2020 Restated*	% Var	Var % Net FX
Retail	210	198	6	7%
	5	2	2%	7
Manufacturing	165	111	48	48
	7	8	3%	4%
&	81	53	0%	6%
Transportation	2	8	51	52
Logistics
Healthcare	16	16	(1	2%
	2	5	6%)	0
Channel	109	84	3%	9%
	1	4	29	30
Total	582	464	4%	6%
Business	7	6	25	26
DL
Informatics	18	16	0%	18
	9	4	15	4%
division Intra	(1 1)	(1 2)
Total Datalogic	600 5	479 8	2% 25	4% 26

*December 31, 2020, comparative data have been restated following the reorganisation of the commercial function launched in 2020.

FY 2021 P&L

• Gross Margin at 42.9%: acceleration of inflation from shortage of critical materials and freight impacting H2.
• Operating expenses at €200.7m up 8%. Cost reduction program continue delivering efficiencies (33.4% of revenue, ca. 5pts of reduction) despite progressive "back-to-normal" activities.
• ✓ R&D costs increased by 6.2% vs LY, reaching 9.2% vs LY. Investment selectivity continue while renewing the product roadmap
  • ✓ S&D cost at 16.6% compared to 19.8% in FY2020 thanks to efficiencies and leverage.
  • Adj EBITDA at 14.3% (+2.1 pp). Margin erosion due to inflationary tensions more then offset by volume in H2.
  • Net Result at €39.5m vs €13.9m in FY2020.

.

€ m	2021 FY	2020 FY	% Var
Revenues	600 5	479 8	2% 25
Gross Margin	257 6	220 0
% Revenues on	9% 42	8% 45	2 9 pp -
Operating expenses	(200 7)	(185 8)
% Revenues on	(33 4%)	(38 7%)	3 +5 pp
Adjusted EBITDA	85 7	58 3
Adj Ebitda % margin	3% 14	2% 12	+2 1 pp
EBIT	47 0	18 4
Ebit % margin	8% 7	3 8%	0 +4 pp
Result Net	39 5	13 9
% Revenues on	6% 6	9% 2	+3 7 pp

EBITDA Adj: actual vs last year

€ m

.

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

2022 Outlook

▪ Under the current geopolitical context and the sharpening of the shortage, Revenue growth and Ebitda % expected in single digit range in the first half of the year

▪ With solid order backlog and actions undertaken to reduce electronic components shortages and related cost, higher sales' conversion and strong margin recovery expected in the second half of the year.

Appendix

Stock and Governance

Market Segment: EURONEXT STAR MILAN

Reuters Code: DAL.MI

Bloomberg Code: DAL IM

Outstanding Shares: 58,446,491

Share Par-Value: 0.52 Euro each

Ticker: DAL

Market Cap (March 21, 2022): 590 mln Euro

Volumes : 3 months average ̴100K

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.

Sustainability Policy

In 2021 Datalogic obtained a €100 million sustainability-linked loan for a duration of 7 years.

The margin on the new credit line is partly linked to two strategic

targets in the areas of energy transition and social responsibility

Update on the acquisition of M.D. Micro Detectors

Mar-21: Acquisition of M.D. Micro Detectors Mar-21 to Dec-21:

Complete integration in Manufacturing industry

Expectations

• Datalogic acquired M.D. Micro Detectors ("M.D.") in March 2021 with the aim to create the largest Italian hub for industrial automation
• Headquartered in Modena, M.D. booked revenue and EBITDA of ca. €25m and €4m in 2021
• M.D. line of products is complementary to Datalogic's sensors offers for Industrial Automation applications
• Synergetic distribution network

✓ Products: Range, Roadmap, Pricing processes fully

✓ S&D processes: Combined Sales plans, Marketing & communication processes integrated

- integrated

• operative
• support teams reorganized

✓ Distribution: New logistic center in Modena fully

✓ Organization: R&D, Technical and Customer

✓ Systems and G&A processes: SAP implementation, employees and payroll integration completed

The successful post merger integration process will lead to further growth and higher efficiency in the future:

• A strong contribution to the + 17% growth in sales for Datalogic's manufacturing industry already in 2021, expected to further improve
• Strong top line synergies driven by cross selling opportunities on the complementary customer and channel base
• Strong product synergies: rationalization of road maps on interconnected and complementary products will drive additional product and cost synergies

Contact

IR CONTACTS

IR Manager Alessandro D'Aniello 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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DATALOGIC ON LINE

April 29, 2022 Shareholders' Meeting

May 12, 2022 Q1 2022 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