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Gpi

Investor Presentation Feb 15, 2022

4426_rns_2022-02-15_5a6a6f00-0bef-4361-acd7-49afeae1383f.pdf

Investor Presentation

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INVESTOR PRESENTATION FEBRUARY 2022

Sustainability and the Health Care Market DIGITAL

Population ageing

  • around 1/3 over 60 yo (Italy)
  • general trend

Chronic diseases (NCDs1 ) befall the world at large

  • increasing prevalence of (multiple) chronic conditions
  • increasing healthcare utilization
  • increasing costs

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

70-80% of Health budget

From 2020 situation burdened with Covid-19

TRANSFORMATION

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

SUSTAINABLE HEALTH SYSTEMS

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

1st player in Italy: services granting access to care

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

Uniqueness

Leadership

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

2013 Orizzonte fund providing equity financing First minibond issued.

2016 merger between GPI and the SPAC CFP1. Joining the stock market AIM Italia.

2018 graduated from AIM to MTA main market of Borsa Italiana.

€ 100 M M&A deals

Employees 6,871 NFP158 M

*2018 EBITDA, net of extraordinary costs; 2019 EBITDA includes the effects of IFRS 16

Strategic Business Areas

% revenue by SBA out of total revenue in FY 2020

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

Segmentation H1 2021

*FY 2020 data - H-pub: public healthcare clients; H-Pri: private healthcare clients, NH-Pub: public non-healthcare clients; NH-Pri: private non-healthcare clients

Highlights

  • 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
  • Tenders 147 | Bids Win-ratio 63% | Awarded € 246 M
  • Telemedicine & Electronic Medical Record Framework Agreement CONSIP (whole Italy) provisional award Gpi leads the number -one consortium Gpi 37% | up to € 600 M | 48 months

M&As - Blood Bank SW

Assets Haemonetics, USA \$ 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

Informational Services 24/7

APPs indoor navigation and patient tracking

SW for the management of swab tests

APP for the queue management and access regulation to phamacies, health care facilities...

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

Vaccination programme Artificial Intelligence based, risk stratification and vaccine jabs prioritization

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

H1 2021

SW € 51.9 M +25.0% 8.2% Org.
Care € 80.3 M +31.7% 31.1% Org.
Other € 19.6 M +33.7% 23.4% Org.

EBITDA:14.1 M +35.2% | 10.2% on adj. Revenue

EBIT: € 2.5 M +1.6% vs H1 2020

after an increase in depreciation and amortisation of EUR 1.5 million compared to the previous period

Net Profit: € 0.2 M

improved results from operations offset the increase in net financial expenses and the positive tax impact of H1 2020

€M H1
2021
H1
2020
Revenue
& other income
151.8 117.2
Adjusted Revenue(1) 138.1 108.1
EBITDA 14.1 10.5
EBITDA %
of adj. revenue
10.2% 9.7%
EBIT 2.5 0.9
Net profit 0.2 0.2

(1) Net of Temporary Consortia (RTI)

Strong Growth FY 2021
Revenue ~ €
326
M
+20%
EBITDA ~ €
50
M
+24%
EBITDA margin > 15%

Financial Highlights H1 2021

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

€M H1 2021 FY 2020
Restated
Net
working capital
126.2 109.1
Non-current assets 167.7 158.4
Other operating assets/(liabilities) (72.6) (59.2)
NET INVESTED CAPITAL 221.6 208.2
Shareholders' equity 73.5 83.4
Net Financial Debt 148.1 124.8
TOTAL SOURCES 221.6 208.2

Net working capital

The increase in receivables is mainly linked to the increase in revenues due to the newly acquired companies

Shareholders' equity

Dividend distribution (€ 7.9 M) Related parties (€ 2.2 M minorities Riedl)

Net Financial Debt € 148.1 M as of 30/06/2021

- Reflects the operating flows and the investment strategy of the Group in the H1 2020

  • New ESMA Guideline No. 39. For consistency with the presentation, the corresponding value as at 31/12/2020 has also been recalculated.

Investments

Tot. € 29.5 M | M&A € 20.1 M | R&D € 4.5 M

*From FY 2020, the business of the subsidiary Xidera, which was included in the SBA Software, is now included in the SBA Care. FY 2019 was restated to reflect this change.

*From FY 2020, the business of the subsidiary Xidera, which was included in the SBA Software, is now included in the SBA Care. FY 2019 was restated to reflect this change.

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

Adj. Revenue €M

Net of Temporary Consortia (RTI)

EBITDA €M

Competitive environment and strategic guidelines

Market Assessment Software and IT Services

Source: Gartner Hospital + Physician survey (2021 Q2)

value of the Global market for health care software + IT services in 2020

+7.3% 2020 on 2019 CAGR 20 – 24: 12.3%
50.5% North America CAGR 20 – 24: 12.0%
24.8% Western Europe CAGR 20 –
24:
11.0%

value of the Italian market for health care software + IT services in 2020 -0.4% 2020 on 2019

1.1% Italy CAGR 20 – 24: 6.7%

National Recovery and Resilience Plan

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

IT Market 2018 – 2024 (Italy)

Source:Netconsulting Cube (June 2021 Q2) - data in € M, %

TOTAL € 1,346.3 M CAGR 20-24 6.8% SW + Svc . € 1,091.3 M CAGR 20-24 6.9%

Competitive Ranking

Top Players in Italy

Software BPO AtC

Company Brief description Focus on
HC
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

> > 28 M cittadini serviti 29 M citizens reached

Company Brief description Ranking
ICT solutions, administrative and
social-healthcare services for public
and private healthcare providers.
1st
Maintenance services for medical
devices, operative in 17 different
countries.
n.a.
BPO services (e.g. cleaning, security,
logistics and healthcare services).
n.a.
Local supplier of services for
healthcare and the educational
segment, operates in the Region of
Veneto.
n.a.
Local supplier of services for
healthcare , operates in the Region
of Lazio.
n.a.

Footprint in 70 Countries

Offices in 11 Countries

Blood Management System Gpi is globally ranking among Top 5 providers Pro-forma earnings > € 20 M

BMS strategic software for the Health Systems of all Countries

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.

Europe and

America

Economic–Financial Targets Update for 2024

New targets estimated by equal scope of consolidation as of 31/12/2020

M&A Guidelines

M&A Guidelines Become a Major European Player

• Product Portfolio Evolution software|services| territories

  • Structured software companies
  • Product Portfolio Evolution Blood Management System Software

3 Jan 2022 - LOI acquisition of TESI Group LIS | RIS/PACS | Blood | AtC Italy, Poland, Spain, Georgia, Albania, Mexico, Colombia and Brazil FY 2020 Revenue ~ € 25 M | EBITDA € 9 M | EV € 90 M

FUNDING SOURCES

  • EXERCISED WARRANTS € 22.3 M
  • BOND
  • DEBT FINANCING

Investment Attractiveness

Leadership and Uniqueness GPI IN THE STOCK MARKET
ISIN: IT0005221517
Ticker: GPI:IM
Growth
and Visibility
Price 14 Feb 2022 €
Ordinary Shares
13.30
18,260,496
Capitalisation € M 243
Technology and Service ANALYSTS' COVERAGE – Target price
Banca
Akros
26 November
2021
€ 17.50
Intermonte SIM 26 November
2021
€ 17.00
Evolution
of market/NRRP
Midcap Tp
Icap
26 November
2021
€ 20.00

SHAREHOLDING STRUCTURE

M&A Opportunities

A New Architecture of Integrated Solutions

Direct interaction with patients

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 pro-forma revenue ca \$ 26 M - 48% gross margin

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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