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Gpi

Investor Presentation Feb 23, 2023

4426_rns_2023-02-23_369cdbd5-1264-477e-8aa9-2354c738e119.pdf

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INVESTOR PRESENTATION

FEBRUARY 2023

VISION

To be the protagonists in the path of technological and sustainable transformation of prevention and care processes for health care and the well-being of people

MISSION

To offer knowledge and skills for the improvement of prevention and care processes through software, services, and technologies for health professionals and patients

VALUES

ETHICS

PEOPLE-CENTERED CARE

History of Growth

35 years of experience, management team with a track record of internal growth and M&As

solutions used by 2,700 customers in more than 70 countries

1st player in Italy: services granting access to care

2nd player in Italy: software solutions for health and social care systems

integrated software, technology and service solutions to optimise the clinical, care, administrative and social processes

our work helps improve the quality of life

Technology with a Human Approach

ca. 7k Employees

Results H1 22

> +15%

Software

Geographic Footprint Customer Base

Italy: the entire offering

DACH: Blood, HIS, Virtual Care (VC), Automation RoW: Blood, Automation, Virtual Care (mainly in Europe & the Americas)

% of worldwide revenue H122

% of worldwide revenue FY21 81.3% 6.2% 6.7% 5.8% H 87.5% nH 12.5% 2,700 + clients

Health Public 81.3%

  • Healthcare Authorities
  • Hospitals
  • Public providers (in-house)
  • Regions, Provinces

Health Private 6.2%

  • Nursing homes
  • Private clinics
  • Pharmacies

Non Health Public 6.7%

  • Municipalities
  • Provinces
  • Regions

Non Health Private 5.8%

  • Large scale retail trade
  • Banks
  • Meal voucher operators
  • Non-food chain stores

Modular and integrated information systems:

  • Clinical – HIS
  • Blood Management System
  • Business Intelligence, Data analytics
  • Health ERP
  • HR PA
  • Other - Health Social Care | Virtual Care (tech), etc.

Virtual Care

AUTOMATION

Automated Pharmacy Warehouse

  • Retail
  • Hospital
  • Wholesaler and other industries

PAY

e-Payment and e -Mandate sw Electronic Storage POS rental and related software

• Large-scale Retail

• System Integrator

0.9 3.4 5.4 6.4 H1 20 H1 21 H1 22 25.5%

ICT Desktop management System services Cybersecurity

  • Healthcare customers
  • Non-healthcare PA
  • Other private customers

Revenue € m

Rating Agency Confirms A3.1 Public Rating | A- S&P |A3 Moody's | A-1 Fitch equivalent

Consip Framework Agreement "1" EMR & Telemed: the consortium led by Gpi equalled ~ € 104 M of direct orders to date Gpi added up to ~ € 82 M | ~ € 55 M new contracts + ~ € 27 M new direct orders

Centrepieces:

Electronic Medical Record Lombardy Region ~ € 12.4 M | Pathological Antomy software Veneto Region ~ € 5.9 M

Sustainability and the Health Care Market DIGITAL

Increasing Health Spending

  • Demographic factors (population ageing)
  • Citizens and patient expectations
  • New technologies and treatments

Chronic diseases befall the world at large

• Increasing health care utilization, thus increasing costs

40-50% have at least one chronic disease (well-off countries)

70-80% of the Health budgets

Covid-19

  • Burdened situation
  • Fosters digitization
  • National Plan for Recovery and Resilience
  • Increasing health spending exerts pressure on the budget and fosters cost reduction

TRANSFORMATION

  • Redesign processes
  • Prevention and control of NCDs
  • Integrate people, processes and structures
  • Lessening costs, improving quality of life

SUSTAINABLE HEALTH SYSTEMS

Digital Health: the Solution for the Health Care Market

Current environment Digital health solution Effects and streamlining

Shortage of medical staff (doctors, nurses)

Complex and intricate processes

Need for new forms of treatment (custom-made and remote clinical pathways)

Difficulties in capturing data in a structured and digital way

ARTIFICIAL INTELLIGENCE & DATA ANALYTICS

TELEMEDICINE

AUTOMATION

MANAGEMENT SOFTWARE

Resources optimization and impact on average hospitalization

Process facilitation and consequent improvement of the patient journey

Greater integration and adoption of patient - centric operating model

Better and constant monitoring of the clinical path

Fast Growing Global and European Markets of IT Softwares and Services in Health Care

Global sales (\$ bn) European Sales (\$ bn)

EU

Source: Gartner Market Statistics

Digital Healthcare & BPO in Italy

Source: Accenture analysis on Global Market Insights, Statista, Netconsulting cube Notes: (1) Including IT Softwares and Services (excluding 5G connection); (2) Including activity monitoring, LTC monitoring, remote medication, video consultation

Potential effects of NRRP on the Italian digital healthcare market

€ 5.8 bn

2021-2026 Funds dedicated to the digitalization of healthcare of which:

  • € 3.6 bn for ICT
  • € 1.0 bn for telemedicine
  • € 1.2 bn for medical equipment
  • € 0.07 bn for cybersecurity

Competitive Ranking – Italian Top Players

Software BPO AtC (Business Process Outsourcing)

14 Source: Accenture Note: (1) The remaining 65% of the market includes Inhouse companies of the Italian regions and therefore is not addressable

Strategic Pillars of the Business Plan 2022 – 2024

Strategic Initiatives

ICT,

Automation &

Pay

New End-to-End Partner approach for Cybersecurity Become the national reference operator and enabler of projects in Virtual Care

portfolio

Rationalisation and innovation of product

Increasing value proposition through Innovation of pharmacy & Hospital WareHouse

Broadening the presence in the Payment business

Positioning and brand

recognition

Sustainability, Impact, Brand and Reputation

Positioning of sustainability

Strengthening of the ESG structure

Structure, Processes and Governance

Agile organisation Scalability and efficiency

in Blood Management Systems

Development of a telemedicine distinctive platform

Strategic Pillars of the Business Plan 2022 – 2024

M&A Guidelines

Become a Major European Player

will keep on investing in software companies both abroad and in Italy to expand its product portfolio

Focus on international software companies mainly operating in: Blood Management LIS with an EBITDA margin > 16%

Product Portfolio Evolution: Software Services Territories

Significant M&A Track Record

Acquisition of Tesi Group

Note: (1) FY2021 Tesi financial statement

Capital Increase Fueling M&A and Organic Growth

Financial Targets 2024

Including Capital Increase of € 140 mn

Note: (1) NFI includes liabilities for acquisition of equity investments (relating to earn-out mechanisms and put/call options on the percentage still held by third parties); (2) EBITDA pro forma to take into consideration a Full-Year contribution of M&A targets;

Existing loan agreements and bonds could provide for a different mechanism for determining the Net Debt amount for the covenants calculation

Appendix H1 22

Solid Growth H1 22

€ m H1 22 H1 21
Revenue
& other income
168.9 151.8
Adjusted Revenue1 158.1 138.1
EBITDA 17.3 14.1
EBITDA % on total revenue 10.3% 9.3%
EBITDA % on adj. revenue 11.0% 10.2%
EBIT 4.5 2.5
EBIT % on total revenue 2.7% 1.6%
EBIT % on adj. revenue 7.9% 1.8%
EBT 1.9 0.4
Net profit 0.3 0.2

thanks to the contribution of the SBAs:

Revenue € 168.9 m +11.2%

Other € 23.6 m +20.6%
Care € 87.6 m +9.1%
SW € 57.7 m +11.1% 10.5% organic

EBITDA: € 17.3 m | 11.0% on adj. Revenue thanks to the contribution of the SBAs:

SW € 11.3 m 19.7% on adj. Revenue
Care € 2.3 m 2.9% on adj. Revenue
Other € 3.8 m 16.1.% on Revenue

EBIT: € 4.5 m

depreciation & amortisation and provisions (€ 1.2 m)

Net Profit: € 0.3 m

net interest expenses (€ 0.5 m) > tax impact (€ 1.5 m)

Financial Highlights H1 22

€ m 30
Jun.
2022
31
Dec.
2021
Non-current assets 174.4 166.8
Net
working capital
148.5 140.2
Other operating assets/(liabilities) (54.7) (45.3)
NET INVESTED CAPITAL 268.1 261.7
Shareholders' equity 97.6 106.2
Net Debt 170.5 155.4
TOTAL SOURCES 268.1 261.7

Non-current assets

  • investments in new innovative products and solutions (developed in-house), mainly related to SBA Software
  • € 5 m investment in venture capital "service tech sub-fund" of CDP venture capital sgr dedicated to investments in start-ups

Net Working Capital

inventories (€ 2,5 m), > trade receivables and contract assets (€ 7,7 m) and < trade payables (€ 1,9 m)

Shareholders' equity

(-) Dividends (€ 9.2 m)

Net Debt

Reflects the operating flows, the investments of the Group and the equity movements

Net Debt

VC € 5.0 m

Appendix FY21

Solid Growth FY21

€ m FY21 FY20
Revenue
& other income
326.9 271.0
Adjusted Revenue1 298.1 250.9
EBITDA 49.8 40.2
EBITDA % on total revenue 15.2% 14.8%
EBITDA % on adj. revenue 16.7% 16.0%
EBIT 23.5 19.0
EBIT % on total revenue 7.2% 7.0%
EBIT % on adj. revenue 7.9% 7.6%
EBT 16.7 13.2
Net profit 11.3 12.3

Revenue326.9 m +20.6% | 16.2% organic thanks to the contribution of the SBAs:

SW € 117.6 mn +14.6%
Care €166.2 mn +25.4%
Other € 43.1 mn +20.1%
EBITDA: € 49.8 m 16.7% on adj. Revenue
thanks to the contribution of the SBAs:
SW € 33.0 mn 28.3% on adj. Revenue
Care € 8.8 mn 6.4% on adj. Revenue
Other € 8.0 mn 18.7% on total
Revenue

EBIT: € 23.5 m

after depr. & amort. and provisions of € 26.3 mn

Net Profit: € 11.3 m

tax impact for € 5.4 mn – (in FY20 patent box)

Cash Dividend approved: € 0.50 p.s. payout ratio ≈81% | Date of Record 17 May 2022

Financial Highlights FY21

€ m FY21 FY20
Restated
Non-current assets 166.8 158.4
Net
working capital
140.2 109.1
Other operating assets/(liabilities) (45.3) (39.5)
NET INVESTED CAPITAL 261.7 227.9
Shareholders' equity 106.2 83.4
Net Debt1 155.4 144.5
TOTAL SOURCES 261.7 227.9

Non-current assets

The increase in Non-current is linked to the investments, including the acquisition of Medinfo and R&D

Net Working Capital

The increase is due to the rising amount of receivables, mainly linked to the revenues growth

Shareholders' equity

(-) Dividends (€ 7.9 m) (+) Proceedings from warrants (€ 22.3 m) (-) Related parties (€ 3.3 m minorities Riedl and Argentea)

Net Debt1

Reflects the operating flows, the investments of the Group and the equity movements

Note: (1) Net Debt is determined in accordance with the provisions of Guideline No. 39 issued by ESMA on 4/3/2021, and in line with the related Warning Notice No. 5/21 issued by Consob on 29/4/2021. For consistency of presentation, the corresponding value as at 31/12/2020 has also been restated.

Software FY21

Modular and integrated information systems:

  • Clinical – HIS
  • Blood Management System
  • Business Intelligence, Data analytics
  • Health ERP
  • HR PA
  • Other - Health Social Care | Virtual Care (tech), etc.

Flexible and broad offer of services such as:

  • Access to Care - health care administrative services
  • Virtual Care (services & devices)

6.5% 6.4%

22.3*

FY20 FY21

8.8

22,3*

7.4

AUTOMATION

Automated warehouse sales, maintenance and service fees

  • Retail Pharmacies
  • Hospital Pharmacies
  • Wholesaler and other industries

PAY

ePayment services POS rental and related software

  • Large-scale Retail
  • Local PA
  • Svc. providers based on POS
  • System Integrator

ICT

Automation

Pay

ICT

Desktop management services fees

other system services

  • Healthcare customers
  • Non-healthcare PA
  • Other private customers

Appendix Featured Products

A New Architecture of Integrated Solutions

Patients

Technologies

Disease Management

conference system

Imaging (access, sharing and diagnostic assistance)

Telemonitoring (24h/7) with advanced Multiparametric medical devices

Remote diagnosis

ranks 5th on the global market of Blood transfusion sw

Blood Donor Centers Hospitals

«VEIN-TO-VEIN» PROCESS

A New Concept in Pharmacy Automation

RIEDL PHASYS

  • ⚫ The fastest system on the market: 5 m/sec
  • ⚫ Wireless: no cable
  • ⚫ Manages products of various shapes
  • ⚫ Multi Picking
  • ⚫ Fully integrated and tailored
  • ⚫ Positive air pressure ' No more dust '

Forward Thinking: Two Main Strategic Trajectories

Population Health Management
Models and
technologies
1
for the
continuity of care
Detect the demand for care,
Regression models & clustering (AI)
Virtual Care

Telemedicine
Build and keep
Patient Pathway (PDTA)
IoT and Augmented Telemed

Audio Video Communication
connections
with patients
Diagnostic Imaging
Telerehabilitation

Patient Portal
Big Data Deep Learning NLP
& Semantics
Big Data, Regression Recognition Algorithms Natural Language Increase the

2

Artificial

Intelligence

Algorithms, Pattern Recognition, Prediction Models

Recognition Algorithms for images and voice

Natural Language Processing and Semantic Inference with ontological foundations

Group's offering in a functional and distinctive sense

Investment Quick Take

Shareholder structure 1

Market

Note: (1) based on available information to Gpi on February 21st, 2023

60.6% 13.6%

IR Contact details

Via Ragazzi del '99, 13 - 38123 Trento T +39 0461 381515 [email protected]

Fabrizio Redavid C. +39 335 1035499 [email protected]

Lorenzo Giollo

C. +39 340 8223333 [email protected]

The material in this presentation was prepared by GPI S.p.A. ("GPI" or the "Company") without any form of independent verification; it is general, basic information about the current business of GPI as at the date of this presentation. This information is supplied in summary form and is not complete. This presentation is provided for information only and is not an offer or solicitation of an offer of purchase or sale of securities, nor shall there be any sale or purchase of securities in any jurisdiction in which such an offer, solicitation or sale should be illegal before the registration or qualification in accordance with the laws on securities of that jurisdiction. It is intended exclusively by way of a presentation to investors and is provided for information only. This presentation does not contain all information that may be relevant to an investor.

The information contained in this presentation, including the forecast financial information, must not be considered as advice or recommendations to investors or potential investors in connection with the holding, purchase or sale of securities or other products or financial instruments and does not take into account any specific investment targets nor the financial position. Before acting, it is important to consider the adequacy of information in relation to such subjects and, in particular, independent financial advice should be taken. All securities and product transactions or financial instruments entail risks, which include, amongst others, the risk of adverse or unforeseen market, financial or political developments and, in international transactions, the foreign exchange risk. The information contained in this presentation is confidential and is supplied to the user for information only and cannot be reproduced, re-sent or further distributed to anyone else, nor published, entirely or partly, for any purpose. This presentation is only distributed to and intended for: (A) persons in the European Economic Area Member States (excluding the United Kingdom), who are classed as "qualified investors" under Article 2, paragraph 1, letter e) of Directive 2003/71/EC (as amended and complete with any implementing measures applicable in each Member State); (B) in the United Kingdom, professional investment qualified investors coming under Article 19 (5) of the 2005 Order (financial promotion), the Order of Financial Services and markets and/or companies with high shareholders' equity and other persons to whom it can be lawfully disclosed, pursuant to Article 49,

paragraph 2, letters a) to d) of the Order; and (C) other persons to whom this presentation can be legally distributed and disclosed in accordance with applicable laws (all those pursuant to points (A) to (C) above, indicated as "relevant persons").

The information contained in this presentation may include forecasts. Although the Company believes it has a reasonable basis on which to make the forecasts given in this presentation, GPI warns that forecasts are no guarantee of future performance and that the effective operating results, financial conditions and conditions of liquidity and development of the segment in which GPI operates may differ considerably from those effectively achieved or suggested by the declarations given in this presentation or made by the GPI management team. Past performance is also not a reliable indication of future performance.

GPI makes no promise to update or publicly review the forecasts, even if new information is revealed or for any other reason. The information and opinions given in this presentation or in the declarations made by the GPI management team are given as at the date of this presentation or any other date, if indicated, and are subject to change without notice. Do not rely on the information given in this presentation for any purpose. No express or implicit declaration or guarantee is given by GPI, its subsidiaries or the respective consultants, functionaries, employees and agents, as regards the accuracy of information or opinions or for any loss as may derive directly or indirectly from any use of this presentation or its contents. This presentation is not intended for distribution or use by any person or entity that is a citizen or resident of a place, country or other jurisdiction in which such distribution, publication, availability or use may be in conflict with laws or regulations or which would require any registration or licence within such jurisdiction.

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