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Gpi

Investor Presentation May 5, 2022

4426_rns_2022-05-05_a85152c1-19f0-4552-84fc-a1f40dd9f8fe.pdf

Investor Presentation

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INVESTOR PRESENTATION FY21 May 2022

Your Global Partner for a Better Future

We develop software, technologies and services to help innovating the models of care, assistance and prevention of the health care systems, optimizing processes and containing costs

A partnership to make health systems sustainable and help improve people's health and well -being

History of Growth

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

International footprint

solutions used by 2,500 customers in more than 70 countries

Leadership

1st player in Italy: services granting access to care

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

Uniqueness

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

Quality of life

our work helps improve the quality of life

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 healthcare utilization, thus increasing costs

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

70-80% of Health budget

Covid-19

  • Burdened situation
  • Fosters digitization
  • National Plan for Recovery and Resilience
  • Increasing health spending exert 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

Integrate the value of Persons with the value of Technologies.

Supply Lines

main SBAs

86.8% of total revenue

Software

Care

ICT

Pay

  • hospital information system
  • health social care
  • blood transfusion & tissue bank
  • health administration
  • Business Intelligence, data analytics
  • other
  • BPO health care administrative svc. (AtC,..)
  • telemedicine
  • other

Automation • automated pharmacy warehouse • automated hospital pharmacy supply chain

other SBAs

13.2 % of totalrevenue

  • HW & SW on-site / on-line maintenance and assistance
  • on-site / on-line system services
  • e-payment and e-mandate solutions
  • electronic storage

Highlights FY21

  • Proceeds from exercise of warrants € 22.3 M Funding M&As
  • CERVED confirmes rating at A3.1 A- S&P |A3 Moody's | A-1 Fitch equivalent
  • 147Bids | Win-ratio 63% | Awarded € 246 M
  • Telemedicine & Electronic Medical Record Framework Agreement CONSIP Gpi leads the number-one consortium Best technical ranking Gpi 37% | up to € 900 M (D.L. 146/2021) 48 months | whole Italy

M&As - Blood Bank

Haemonetics operation \$ 11.3 M Rev. |35% EBITDA 100 clients in the USA (2020)

Medinfo Group

€ 3.9 M Rev. | 36% EBITDA 60 clients NHS UK, Army (France, Belgium)

Hemasoft Software acquisition of the residual 40% of shares of Gpi's subsidiary

Actual Projects

Real answers to Covid- 19: concretely implementing the Group's vision: the Patient at the Centre

Informational Services 24/7

APPs indoor navigation and patient tracking

SW for the management of swab tests and vaccine jabs Vaccination programme Artificial Intelligence based, risk stratification and vaccine jabs prioritization

Drive-in swabs solutions, reducing the waiting time from hours to minutes

APP for the queue management and access regulation to phamacies, health care facilities, etc. Digital Display Totem

Virtual Care (Software, wearables, technological and medical operational centre, services)

Solid Growth FY21

€M FY21 FY20
Revenue
& other income
326.9 271.0
Adjusted Revenue(1) 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

(1) Net of Temporary Consortia (RTI)

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

SW € 117.6M +14.6%
Care €166.2 M +25.4%
Other € 43.1 M +20.1%

EBITDA:49.8 M | 16.7% on adj. Revenue

thanks to the contribution of the SBAs:

SW € 33.0 M 28.3% on adj. Revenue
Care € 8.8 M 6.4% on adj. Revenue
Other € 8.0 M 18.7% on total
Revenue

EBIT: € 23.5 M

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

Net Profit: € 11.3 M tax impact for € 5.4 M – (in FY20 patent box)

Cash Dividend approved: € 0.50 p.s.

payout ratio ≈81% | Date of Record 17 May 2022

Financial Highlights FY21

A3.1 CERVED Rating A- S&P |A3 Moody's | A-1 Fitch equivalent

€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 Debt 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

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 Debt(1)

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

(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.

Net Debt

Net Debt

According to New ESMA Guideline No. 39, issued on March 4th 2021

  • € 10.9 M YoY

Investments Tot. € 55.3 M M&A € 34.5 M(1) Capex € 20.7 M (incl. R&D 11 M)

(1) Of which € 30.5 cash-out and € 4.0 M impact on Net Debt arising according to the new ESMA Guideline

Software FY21

Care FY21

Other SBAs 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 Desktop management services fees other system services

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

Competitive environment and strategic guidelines

Market Assessment Software and IT Services

Source: Gartner Hospital + Physician survey (2021 Q4)

value of the Global market for health care software + IT services in 2021

+14.8% 2021 on 2020 CAGR 21 – 24: 12.2%
47.9% North America CAGR 21 – 24: 12.0%
30.8% Western Europe CAGR 21 –
24:
12.1%

value of the Italian market for health care software + IT services in 2021 10,5% 2021 on 2020

1.3% Italy CAGR 21 – 24: 8.9%

National Recovery and Resilience Plan

€ 5 B for digitizing health care of which € 1 B for Telemedicine

Competitive Ranking

Top Players in Italy

Software BPO AtC

Company Brief description Ranking
ICT solutions and related
services for public and private
healthcare
providers.
1st
ICT solutions, administrative and
social-healthcare services for
public and private healthcare
providers.
2nd
ICT solutions for the segments:
finance, industry, telco&utilities
and PA.
Through
dedicated
healthcare
division
3rd
Software for hospital processes,
orders and risk management.
Reply's
subsidiary
4th
Digital transformation
& ICT
services for industries, energy,
aerospace, healthcare, PA, etc.
Through
dedicated
healthcare
division
5th

Adressable market ca. € 1 B Top 5 players ca. 35% of the market

> 29 M citizens reached

Company Brief description Ranking
ICT solutions, administrative and
social-healthcare services for public
and private healthcare providers.
1st
Software and contact
center svc.
n.a.
Administrative support svc. and
customer relationship management
for healthcare.
n.a.
Call center svc. telephone
reservations/cancellations related to
specialist health svc.
n.a.
Contact
center and ustomer
care
svc.
n.a.

The 5 Pillars

Strategic intentions 2020-2024

01 02 03 04 05
EVER
MORE
GLOBAL
PRIVATE
HEALTH
CARE
MARKET
LEADERSHIP
in ITALY
INTEGRATED
SOLUTIONS
FROM
PROVIDER
TO PARTNER
Strong increase
over the BP
Doubling up of
the Private HC
segment %
Major regional and
national tenders
Greater integration
of services SW
technologies
Multi-business
nature
with the
period
Geographical
areas of growth:
weight M&As
Focus of R&D on
Machine Learning
to respond to the
evolution of
healthcare models
and the healthcare
contribution of
all SBAs.

and on the digital transformation

demand.

M&A Guidelines

M&A Guidelines Become a Major European Player

3 Jan 2022 - LOI acquisition of TESI Group LIS | RIS/PACS | Blood Italy, Mexico, Brazil FY20 Revenue ~ € 25 M | EBITDA € 9 M | EV € 90 M

Investment Attractiveness

Leadership and Uniqueness GPI IN THE STOCK MARKET
ISIN: IT0005221517
Treasury
shares
Ticker: GPI:IM 0.56%
Price 4 May 2022 € 13.04
Growth
and Visibility
Ordinary Shares 18,260,496
Capitalisation € M 238
Technology and Service ANALYSTS' COVERAGE – Target price
Banca
Akros
30 March 2022 € 17.50
Intermonte SIM 1 April 2022 € 17.00
Evolution
of market/NRRP
Midcap Tp
Icap
30 March 2022 € 18.50
Float

SHAREHOLDING STRUCTURE

42.13%

FM srl 57.31%

A New Architecture of Integrated Solutions

Patients

Technologies

Disease Management

GAIA
Population analysis and
stratification

POHEMA

Micro-Services Architecture

Blood Donor Centers Hospitals

«VEIN-TO-VEIN» PROCESS

ranks 5th on the global market of Blood transfusion sw

GLOBAL COMPETITORS

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]

Disclaimer

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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