Gpi

Investor Presentation • Apr 1, 2020

Investor Presentation

Full Year 2019 Results April 2020

The Health Care Background

HEALTH CARE: A LINCHPIN MARKET

able to influence the economic growth of a Country, to keep grip on public finances and social cohesion

A CHANGING MARKET

• aging and life expectancy
• chronic diseases
• urbanization
• shortage of MD and of economic resources

HEALTH CARE EXPENDITURE Italy 2017 155 B€ (73% public- 27% private)

9.1% GDP (16.9% USA – 11.1% Germany – 9.8% UK)

20% squander

40% of which inefficient care coordination

INCREASED DEMAND OF HEALTHCARE

THE CHALLENGE: make the health care systems more

sustainable, containing costs and improving quality.

OPPORTUNITY ORGANISATIONAL AND TECHNOLOGICAL RENEWAL (digital

health) Re-design the processes and the organisational models of the health care institutions

GPI

The Healthcare Partner

MISSION

We are an international group, partnering up with the Healthcare Institutions to ensure the continuous improvement of internal processes to provide accurate and efficient care pathways through bespoke software, services and technologies

VISION

We aim at being the leading partner in the route to innovation for care, therapy and preventive models to ensure health and wellbeing.

A History of Growth

30 + years of experience, organic and M&A growth with an excellent track-record of management.

Leadership

1° player in Italy: Access to Care services 3° player in Italy: software solutions for health- and social-care

International Footprint

offering solutions in more than 60 countries.

Uniqueness

integrated software, technology and service solutions to optimise clinical, care and administrative and pathways.

Quality of Life

Our competencies implement solutions and services that help improve the quality of life.

STRATEGIC BUSINESS UNITS

Total Revenue Share

Notice: % SBU's revenue to total FY 2019 revenue

GPI in figures

REVENUE M€ EBITDA M€ *

NET PROFIT M€ HEADCOUNT

A History of Steady Growth

• 2013 Orizzonte equity fund invested in GPI - First minibond issued.
• 2016 merger between GPI and the SPAC CFP1. Start of trading in the stock market AIM Italia.
• 2018 graduated from AIM to MTA main market of Borsa Italiana.
• > 75 mln M&A deals

Revenue 2016-2019

• 20.9% CAGR

• 27.6% CAGR Organic

* EBITDA 2017 and 2018 one-time costs removed; 2019 IFRS 16 effect included

Segmentation

*Customers profiles -- H-pub: Health care Public ; H-Pri: Health care Private, NH-Pub: non-Health care Public; NH-Pri: non-Healt hcare Private

SBU Software

adj. REVENUE M€

Product Lines

Tenders' Win Ratio**

• 35%

Predictable Revenue

• 50%

Client Retention

• 91%

Contract Duration

• 1-3 years

Awarded contracts value

(annual average of the last 3 years)

• 6-7 M€/year

Company ranking

• 3rd player in Italy

** Win ratio as a % of wins to n° of bids.

Conversion win ratio is 6.8% (won contracts value to tenders value 2017-2019)

* adj. EBITDA net of listing on MTA one-time costs

SBU Care

REVENUE M€ +30%

Product Lines

Tenders' Win Ratio**

• 40%

Predictable Revenue

• 95%

Client Retention

• 97%

Contract Duration

• 4-6 years

Awarded contracts value

(annual average of the last 3 years)

• 10-15 M€/year

Ranking

• 1st player in Italy

** Win ratio as a % of wins to n° of bids. Conversion win ratio is 16.4% (won contracts value to tenders value 2017-2019)

* adj. EBITDA net of listing on MTA one-time costs

Automation

An integrated hardware and software solution for the automation of the logistic of drugs in health care facilities and retail pharmacies.

ICT

A turnkey service to maintain our customers' software and hardware to their peak condition.

PAY Innovative technologies and integrated services making easy for large scale retailers, public service and banking to managing of electronic payments.

Remarkable Growth in 2019 Revenue +18.3%, Net Profit +3.1%

• Revenue 240.9 M€, +18.3%

• Care +35.0 %
• Other +21.2 %
• Sw +1.2 %

• 2019 characterized by

• o 3 acquisitions
• o the incorporation of 2 NewCos
• o the merger of 1 subsidiary
• EBITDA : 32.2 M€ (14.4% of adj. Revenue)
• Net Profit: 9.8 M€ +3.1%

M€	2019	2018
Revenue & other income	240.9	203.7
Adjusted Revenue (1)	223.3	192.9
EBITDA	32.2	28.6 (2)
EBITDA % of adj. Revenue	14.4%	14.8%
Profit Before Tax	12.8	12.8
Net Profit	9.8	9.5

• (1) measurement removes the shares of temporary groups of firms.
• (2) Net of one-time costs for MTA listing fees

Financial Highlights 2019 GPI maintains CERVED A3.1 Rating A- S&P |A3 Moody's | A-1 Fitch

• Net Working Capital

91.3 M€ (75.6 M€ in 2018):

• increase due to the growth of revenue and to the important orders attracted at the end of the fiscal year; correspondingly, trade payables increases (37.8 M€ vs 32.2 M€)
• warehouse: increased due to SBU Automation (4,8 M€ vs 3,9 M€)

• Shareholders' Equity

72.1 M€ (68.6 M€ in 2018 )

• distribution of 2018 dividends
• profit generated in 2019
• shares repurchase

• Net Financial Position

82.8 M€ (69.2 M€ in 2018, IFRS 16 impact included)

• Investments: M&A 1.8 M€ | R&D 7.1 M€

M€	2019	2018
Net Working Capital	91.3	75.6
Non-current assets	119.4 (1)	105.2
Other operating assets/(liabilities)	(55.8)	(50.7)
NET CAPITAL INVESTED	154.9	130.1
Equity	72.1	68.6
Net Financial Position	82.8	61.5 (2)
TOTAL SOURCES	154.9	130.1

• (1) 11.8 M€ included as an effect of applying IFRS 16
• (2) Net of 7.7 M€ due to IFRS 16.

Highlights

• Lazio contract start - 18 batches: 72 M€ in 2 years + 1 year extension (Care: AtC) 6 million more citizens reached

• Veneto tender awarded: 79 M€ in 5 + 2 years 27.5 M€ GPI's share (Software: HIS) 8 thousand hospital beds
• Marche 4 tenders awarded: 4 M€ GPI's share (Software: EPR, AtC, SISTE, DOC) 5 thousand hospital beds
• Minibond 30 M€ several underwriters, supported by Cassa Depositi e Prestiti (Deposits and Loans Fund) as anchor investor

• M&A

• France Guyot Walser Informatique Blood Bank 360 health facilities
• Italy Accura Chronic disease management Business Process Engineering Data Protection
• Overseas + 16.4 % : orders Automated warehouse (> 2 M€):
  • Austria
  • China
  • Qatar
  • Saudi Arabia
  • Switzerland
  • Hungary
  • Ireland

COVID-19 AND FORWARD LOOKING STATEMENTS

COVID-19 emergency, our priority issues

• measures to protecting the health of all employees, customers and suppliers
• managing the economics and financials, not losing focus on the longer term

Two possible scenarios

• emergency to end in the short run: revenue and EBITDA increase in 2020
• prolonged emergency: activity and growth plan to be reviewed

To date, orders confirmed and increasing demand

• 24/7 information services on COVID-19
• web solutions, apps and contact centre services to regulate the access to pharmacies, blood test labs and supermarkets
• software and screening solutions to manage the broad use of oropharyngeal swabs
• apps to drive infected patients into the health care facilities

• …

Market Analysis | Software MARKET VALUE

60 B\$ -> Global market value of software & services - IT Healthcare (2018) CAGR 2018-2022 6.2 %

	47 % North America	CAGR 18 – 22: 6.1%
	28 % Western Europe	CAGR 18 – 22: 5.4%
10%	Mature APAC	CAGR 18 – 22: 4.3%	Source: Gartner (2019)
5 %	Latin America	22: 5.3% CAGR 18 –
4 %	Greater China	22: 13.3% CAGR 18 –

• 1.7 B€ IT HealthCare addressable market
• 1.1 B€ software & services - IT HealthCare available market || Source : Netics (2019)

* the different evaluation between the two sources Gartner and Netics arised from different taxonomy: Gartner only counted the healthcare institutions in, while omitted Regions, Ministries and pharmacies.

Market Analysis | Software MARKET TOP PLAYER

Market: SW and svc. - Italy 2018

Company	Description	Focus on Healthcare	Rankin g
	ICT system and related services for public & private Healthcare institutions		1st
	ICT services for finance, industry, telco&utilities, and PA	Through its dedicated healthcare division	2nd
	ICT solutions & Care services for public & private Healthcare institutions		3rd
	Software for hospital processes, order & risk mgmt. Part of Reply Group		4th
	Digital transformation & ICT services for industries, energy, aerospace, Healthcare, PA, …	Through its dedicated healthcare division	5°

|| Source: Netics (2019)

Market Analysis | Care ADMINISTRATIVE SERVICES - MARKET VALUE & PLAYERS

n.a.

not available because of its heterogeneous nature - international comparison impossible

155 M€ -> Italian market value 2017

underestimated market size – a share of the market is still insourced

|| Source: Netics (2018)

-> Global market value 28+ M citizens reached

Company	Description	Ranking
	ICT solutions, administrative, health- and social care services for public and private healthcare institutions.	1st
	Maintenance services for medical devices, footprint in 17 countries.	n.a.
	BPO services (cleaning, safety, logistics, healthcare services).	n.a.
	Local provider of services for healthcare and education, operations in Region Veneto.	n.a.
	Local provider of services for healthcare, operations in Region Lazio.	n.a.

Customers

+2.200 Public and private customers

• Health Authorities
• Hospitals
• Public Providers (in-house)
• Regions, Provinces (HC)
• Private Clinics, Nursing Homes, ...
• Analytics, Providers
• Trade Associations, Insurance Companies
• Cooperatives
• Private Users
• Pharmacies
• Regions
• Provinces
• Municipalities
• Regional Bodies
• Universities
• Consortia
• Large-Scale Distributors
• Banking Institutions
• Managers of meal vouchers
• No-Food Retailers
• Local Organizations (ACI,…)

Main Customers

LOCAL AUTHORITIES REGIONAL AUTHORITIES PRIVATE ENTITIES

INTERNATIONAL AUTHORITIES

ITALY + 40 Branches

WORLDWIDE + 60 Countries

Strategic Guidelines 2020-2022

MORE GLOBAL

• +300% in the triennium (M&A Software company with 20-30 M€ revenues)

• Geographic targets: DACH, Russia, China, Middle Est, America

PRIVATE HC GROWTH

• doubling the % size of this client segment

LEADERSHIP HEALTHCARE SW in ITALY

• big regional/ national contracts
• M&A
• Focus R&D on Machine Learning and on digital transformation

FROM PRODUCTS/SERVICES TO INTEGRATED SOLUTIONS

• Higher integration services | sw | tecnological components to respond to the evolution of the care models and of the demand for healthcare.

05

• .

FROM PROVIDER TO PARTNER

• Multi-business nature
• Structured and complete offer of each SBU, backing the shift from from provider to partner.

GPI's growth journey continues

M&A Guidelines

TARGET

ITALY

• 1. Software / Services / Area Completion (1-10 M€)
• 1. Big Player

OVERSEAS

• 1. Structured companies Software (20-30 M€)
• 1. Software complement

Investment Attractiveness

Leadership and Uniqueness	GPI IN THE STOCK MARKET Bloomberg: GPI:IM
	15,909,539 Ordinary Shares (ISIN: IT0005221517)
Growth and Visibility	Price: 6.76 € (27 March 2020) Capitalisation: 107.6 M€ (27 March 2020)
	ANALYST COVERAGE – Target price
Technology and Service	Intermonte SIM (10/10/2019): 11.40 €
	Banca Akros (10/10/2019): 12.60 €
	UBI Banca (10/10/2019): 11.20 €
Evolution of market/client	IR TOP Research (24/10/2019): 12.35 €
	SHAREHOLDING STRUCTURE

M&A Opportunities

26 FM SRL 64.37% Treasury shares 0.72% Float 34.91%

IR Contacts

Fabrizio Redavid C. +39 335 1035499 fabrizio.redavid@gpi.it Lorenzo Giollo C. +39 340 8223333 lorenzo.giollo@gpi.it

Maria Antonietta Pireddu

Via C. Cantù, 1 - 20123 Milan Tel. +39 02 45473883/4 m.pireddu@irtop.com

Via Ragazzi del '99, 13 - 38123 Trento T +39 0461 381515 investor. relations@gpi.it

DISCLAIMER

The material in this presentation has been prepared by GPI S.p.A. ("GPI" or "the Company") without independent verification and it is general background information about GPI's activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. This presentation is for information only and shall not constitute an offer or solicitation of an offer to buy or sell securities, nor shall there be any sale or purchase of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. It is solely for use at an investor presentation and is provided as information only. This presentation does not contain all of the information that is material to an investor. Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. The information in this presentation is confidential and is being provided to you solely for your information and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any purpose. This presentation is only being distributed to and is only directed at (A) persons in member states of the European Economic Area (other than the United Kingdom) who are "qualified investors" within the meaning of Article 2(1)(e) of Directive 2003/71/EC (as amended and together with any applicable implementing measures in that member state, the "Prospectus Directive") ("Qualified Investors"); (B) in the United Kingdom, Qualified Investors who are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") and/or high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order; and (C) such other persons as to whom this presentation may be lawfully distributed and directed under applicable laws (all such persons in (A) to (C) above together being referred to as "relevant persons").

The information in this presentation may include forward-looking statements. While the Company believes that it has a reasonable basis for making forward-looking statements in this presentation, GPI cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which GPI operates may differ materially from those made in or suggested by the forward looking statements contained in this presentation or in oral statements of the management of GPI. Past performance is not a reliable indication of future performance. GPI assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason. The information and opinions contained in this presentation or in oral statements of the management of GPI are provided as at the date of this presentation or as at the other date if indicated and are subject to change without notice. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or oral statements of the management of GPI or on assumptions made as to its completeness. No representation or warranty, express or implied, is given by GPI, its subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

By attending or reviewing this presentation, you acknowledge and agree to be bound by the foregoing.