Bologna, 27 June 2011 – The Board of Directors of Datalogic SpA (Borsa Italiana S.p.A.: DAL), a company listed in the Star segment of Italy’s stock exchange (MTA) organised and managed by Borsa Italiana SpA (“Datalogic”) and market leader in barcode readers, mobile computers, RFID and vision systems, today approved the Group’s 3 Year Plan for 2011-2013.
The 3 Year Plan for 2011-2013 is a rolling plan that confirms the growth drivers of the plan approved in October 2010 and extends the time horizon to 2013. The Plan is based on strengthening the Group’s competitiveness on its reference markets – Automatic Data Capture (ADC) and Industrial Automation (IA) – as well as growth in emerging countries and a substantial improvement in industrial efficiency and productivity.
The main operating and financial targets to 2013 are summarised in the table below:
Mauro Sacchetto, CEO of Datalogic SpA, commented: “The extremely positive results registered constantly over time and the new objectives of the 3-Year Plan confirm Datalogic’s growth in both markets in which it competes. To continue this growth and provide better support to it, by the end of 2011, Datalogic will introduce further efficiency in integrated logistics, which will enable it to seize all market opportunities in every geographical region.”
The 3 Year Plan for 2011-2013 marks an improvement on the previous 2010-2012 Plan approved in October 2010, and confirms its strategic value-creation drivers:
- Strengthening of strategic positioning
- International expansion
- Product and process innovation
- Efficiency and productivity
In 2012, the last comparable year of the plan, revenues are expected to be around 5% higher than set out in the previous plan, mainly thanks to the sharp improvement in efficiency resulting from investments in the Supply Chain, while EBITDA is expected to increase by around 21% and net profit by around 63%.
The extension of the plan to 2013 provides for growth in the Automatic Data Capture (ADC) market, including the POS Retail segments (barcode readers for the retail market), Hand Held Scanners and Mobile Computers, estimated globally at a 2009-2013 CAGR of 8%, and growth for the more fragmented Industrial Automation (IA) market of 8%.
The focus of the 3 Year Plan for 2011-2013 is the adoption of the new Supply Chain, which has integrated all the Operations processes (production and logistics) of the Datalogic Scanning and Datalogic Mobile divisions. This new Operations architecture at international level will ensure a higher level of industrial productivity, and will enable the Group to seize all growth opportunities by upgrading the plant in Vietnam, a country undergoing significant development and a strategic point for the whole Asia region, where the market is registering extremely rapid growth. The adoption of a single integrated Supply Chain for the ADC market will simplify production platforms, increasing quality and efficiency and improving the level of service to customers, who will be served by dedicated regional logistics and distribution centres, located in the three main areas of Asia, Europe and America.
Datalogic will continue with the constant product and process innovation that has made it the recognised global leader in its reference sectors. Annual R&D investment will be around 7% of revenues, and will be focused in particular on new Imaging and Vision technologies. Furthermore, Datalogic will invest in the development of self-checkout technologies to optimise front-end functions in the retail market, also leveraging on the exclusive know-how of US company Evolution Robotics Retail, acquired in July 2010, leader in the sector of solutions based on innovative visual pattern recognition technology.
The Plan intends to direct and focus growth strategy on its two reference markets, Automatic Data Capture (ADC) and Industrial Automation. For the ADC market, two divisions of the Datalogic Group, Datalogic Scanning and Datalogic Mobile, share a common leadership from January 2011 in order to develop synergies and a closer partnership on the market, and to better respond to client needs. The objective is to optimise distribution coverage and to implement joint projects in order to make significant improvements in the management of customer services, quality and efficiency.
In the Industrial Automation (IA) market, which is extremely fragmented and offers strong growth potential, Datalogic proposes to expand also through external growth, currently not included in the Plan, which would enable the Group to significantly increase its size.
Regarding international expansion, Datalogic intends to grow at a faster pace than the market in mature countries such as North America and Europe, and in particular expects very sustained growth in South America and in Asia – mainly in India and China.
Based on these lines of development, the Datalogic Group forecasts that in 2013, it will register consolidated revenues of between €470 million and €480 million, with a 2009-2013 CAGR above 11%. External growth, currently not considered in the Plan, could generate additional revenues of approximately €100 million, taking revenues into a range of between €570 million and €580 million.
Thanks to the benefits resulting from the adoption of the new integrated Supply Chain of the Datalogic Scanning and Datalogic Mobile divisions in terms of improved efficiency and productivity, in 2013, the Group expects to reach EBITDA of between €80 million and €85 million, with a margin of 17%-18%, compared to 13% in 2010 and 6% in 2009.
The reorganisation of Operations of the Datalogic Scanning and Datalogic Mobile divisions, with the adoption of a single integrated Supply Chain, will generate extraordinary expenses (which wil