Investor Presentation • Feb 23, 2023
Investor Presentation
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FEBRUARY 2023
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
To offer knowledge and skills for the improvement of prevention and care processes through software, services, and technologies for health professionals and patients
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
ca. 7k Employees
Results H1 22
> +15%
Software
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
Modular and integrated information systems:
Virtual Care
Automated Pharmacy Warehouse
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
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
• Increasing health care utilization, thus increasing costs
70-80% of the Health budgets
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
EU
Source: Gartner Market Statistics
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
2021-2026 Funds dedicated to the digitalization of healthcare of which:
14 Source: Accenture Note: (1) The remaining 65% of the market includes Inhouse companies of the Italian regions and therefore is not addressable
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
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
Note: (1) FY2021 Tesi financial statement
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
| € 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 |
| • | 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 |
depreciation & amortisation and provisions (€ 1.2 m)
net interest expenses (€ 0.5 m) > tax impact (€ 1.5 m)
| € 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 |
inventories (€ 2,5 m), > trade receivables and contract assets (€ 7,7 m) and < trade payables (€ 1,9 m)
(-) Dividends (€ 9.2 m)
Reflects the operating flows, the investments of the Group and the equity movements
VC € 5.0 m
| € 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 |
| • | 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 |
after depr. & amort. and provisions of € 26.3 mn
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
| € 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 |
The increase in Non-current is linked to the investments, including the acquisition of Medinfo and R&D
The increase is due to the rising amount of receivables, mainly linked to the revenues growth
(-) Dividends (€ 7.9 m) (+) Proceedings from warrants (€ 22.3 m) (-) Related parties (€ 3.3 m minorities Riedl and Argentea)
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.
Flexible and broad offer of services such as:
6.5% 6.4%
22.3*
FY20 FY21
8.8
22,3*
7.4
Automated warehouse sales, maintenance and service fees
Automation
Pay
ICT
Desktop management services fees
other system services
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
| 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 |
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
Shareholder structure 1
Market
Note: (1) based on available information to Gpi on February 21st, 2023
60.6% 13.6%
Via Ragazzi del '99, 13 - 38123 Trento T +39 0461 381515 [email protected]
Fabrizio Redavid C. +39 335 1035499 [email protected]
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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