Gpi

Investor Presentation • Nov 19, 2019

Investor Presentation

November 2019

corporate video

Healthcare

Healthcare is taking on an unrelenting evolution.

• ageing and chronicity
• urbanization
• doctors' and economic resources' shortage
• technological innovation

120 B€ Healthcare public expenditure in Italy: 20% squander; 40% inefficient care coordination.

Innovation is Paramount!

GPI

The Healthcare Partner

Being the leading partner in the route to innovation for care, therapy and preventive models to ensure health and well-being, that is our VISION

Partnering up with the Healthcare Institutions to ensure the continuous improvement of internal processes,

so that they can provide accurate and efficient care pathways through bespoke software, services and technologies, that is our MISSION

30 years'

experience and growth

FY2018: 204 M€ Revenue, EBITDA > 14%, 10 M€ Net Profit, > 4,300 Professionals, > 1.900 Clients

Italy

1st company in the Healthcare Booking Services. 3rd company in the SW for Health- and Social-care. Sole player to work in sinergy in these two fields.

Worldwide

We offer SW, Technology and Services in more than 60 countries. 6 branches: Austria, Germany, Poland, Russia, Spain, USA

The Business

We combine expertise and design skills to deliver SW solutions, administrative and social health services, drug logistics automation systems, desktop management and system-level services and e-Payment & Collection solutions.

Quality of Life

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

4

THE PATIENT AT THE CENTRE

GPI in figures

HEADCOUNT

2016 – 2018

M&A ≈ 65 M€ + 32% CAGR Tot. Rev. +16% CAGR Organic

Notice: Million Euros.

Offering HIS ≈ 35% ERP ≈ 15% BLOOD ≈ 10% HR ≈ 10% Other Solutions≈ 30%

M %

3° Player ITA

Leader Amm., Blood, HR first 5 players 34% of the market

Market SW & Services for Healthcare World: 60 B \$

CAGR 18-22: 6.2%

Italy: 0.8 B \$ CAGR 18-22: 3.5%

9

SOFTWARE

Adj. EBITDA

CARE

Telemedicine, Clinics, other ≈ 5%

Healthcare Booking Service

1° Player ITA

> 28 M citizens reached GPI sole Big Player

Booking Svc. Market

outsourcing of healthcare booking svc. is increasing

Estimate 2017: 155 M €

5.0 6.7 M %

Y o Y HY o HY

REVENUE

Adj. EBITDA

M %

1.5 3.2 M %

Offering

≈ 95%

Remarkable Revenue Growth Revenue growth driven by SBU Care

• Revenue 110.5 M€ +18% vs 1H18
• Organic growth:
  • o Care +33.6%
  • o SW +3.2% > market (2.7%)
  • o Altre +15.0%
• Lower margins for a different SBU mix, start of the Lazio contract, integration of the acquired companies, purchase of materials
  • o adj. EBITDA Care 3.2% (vs 3.0%)
  • o adj. EBITDA SW 18.0% (vs 18.5%)
  • o adj. EBITDA Others 6.5% (vs 10.1%)
• IFRS 16 effect: reclassified 1.2 M€ renting, hiring and leasing with amortisation (1.1) and borrowing costs (0.1)

M€	1H2019	1H2018
Revenue & other income	110.47	93.26
Adjusted Revenue	99.61	88.77
EBITDA	9.62	9.55
EBITDA %	8.7%	10.2%
adj. EBITDA %	9.7%	10.8%
EBIT	1.8	3.2
Net Profit	1.3	1.9

Balance Sheet 1H 19 A3.1 CERVED Rating confirmed A- S&P |A3 Moody's | A-1 Fitch

• Net Working Capital

• o warehouse at 5.2 M€ from 3.9 M€ in 2018, for the delivery of machinery in H2 2019
• o increase due to the growth of revenue and to the ramp-up of Region Lazio contract and a 1.6 M€ increase of trade payables

• Non-current assets

• o IFRS 16 (7.7 M€)
• o investments for ongoing SW projects

• Equity

• o Dividend distribution 2018 (paid in 1H 2019) and net profit 1H 2019
• o the Group is with supporting its NCI with own resources equal to 44%
• Net Financial Position

80.8 M€ (57.2 M€ as of 30/06/18 and 61.5 M€ as of 31/12/18 + 7.7 M€ due to IFRS 16)

• Investments: M&A 1.3 M€ | R&D 5.6 M€

M€	2019 1H	2018 FY
Net Working Capital	84.6	75.6
Non-current assets	115.1	105.2
Other operating assets/(liabilities)	(55.0)	(50.7)
NET CAPITAL INVESTED	144.6	130.1
Equity	63.8	68.6
Net Financial Position	80.8	61.5
TOTAL SOURCES	144.6	130.1

Highlights

• Region Lazio Contract start 18 batches: 72 M€ in 2 years + 1 year extension 6 million more citizens reached
• Veneto Tender Awarded: 79 M€ in 5 + 2 years 27.5 M€ GPI's share 8 thousand hospital beds

• > 1,900 customers*

• from 81.2% to 74.0% H_Pub Public Healthcare
• from 9.4% to 13.4% H_Priv Private Healthcare
• from 5.5% to 6.3% NH_Pub Public Non-healthcare
• from 3.9% to 6.3% NH_Priv Private non-healthcare

* Data counted anew following customer reclassification

• Revenue Overseas 7.7 M€ +2.7% 1H 2019 vs 1H 2018
• M&A in France (Blood Bank, 360 Health Facilities)
• New orders Drug Warehouse Automation (> 2 M€):
  • Austria
  • China
  • Qatar
  • Saudi Arabia
  • Switzerland
  • Hungary
  • Ireland

Outlook 2019

REVENUE> 230 M€

+ 5%

• new contracts / extensions

+30%

• Strengthening of the target H_PUB - Region Lazio contract
• Target increase for H_PRI

+25%

• Increase of Automation in the retail markets in Italy and overseas
• PA increase by reinforcement of business epayments/collect
  • ion

EBITDA ≈ 14%

Investor Presentation

Business Models and Strategic Guidelines 2020-2022

Business Model

Software

SOLUTIONS THAT MAKE DIFFERENCE

• ERP Enterprise Resource Planning
• HR Human Resources
• HIS Hospital Information System
• Population Health Management
• Veterinary & Food Safety
• Blood Bank Management
• Integration Middleware
• Clinical Data Content Access Portals

Care

PREVENTION, HEALTH, QUALITY OF LIFE

Business Process Outsourcing

Auxiliary Administrative Services such as: Health Services Booking, Contact & Call Centre, Front-end/desk, Secretariat, Cultural Mediation for foreign citizens, etc.

Social and Virtual Care

Health- and Social-care Services, Telemedicine, 3D Printed Prosthesis.

• Health Authorities
• Hospitals
• Nursing Homes,

Private Clinics, Not-for-profit Organizations

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

Main Customers

LOCAL AUTHORITIES REGIONAL AUTHORITIES PRIVATE ENTITIES

BARMHERZIGE BRÜDER ÖSTERREICH

WORLDWIDE SOLUTIONS + 60 Countries

High Visibility: 68% of Revenues from Recurring Fees

• Revenues = periodic maintenance + software development
• 50% of Revenues from recurring fees
• 1-3 years average contract duration
• ^≈91.2% client confirmation rate

Business Model Business Model

• Revenues = fixed annual fee + € 1-3 per contact (or mixed)
• 95% of Revenues from recurring fees
• 3-6 years average contract duration
• > 97% client confirmation rate

Guidelines 2020-2022

MORE GLOBAL

• +300% in the triennium (M&A Software company with 20-30 M€ revenues)
• Geographical Areas: DACH, Russia, China, Middle East, America.

PRIVATE HC GROWTH

02

• Doubling the % size

from 9% to 18%.

LEADERSHIP HEALTHCARE ITA

03 04

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

FROM PRODUCTS/SERVICES TO INTEGRATED SOLUTIONS

• Higher integration service | sw | tecnology to respond to the evolution of the care models and of the demand for healthcare.

FROM PROVIDER TO PARTNER

05

• Multi-business nature, with each SBU contribution.

Investor Presentation

M&A Strategies 2019

29

GPI was incorporated in 1988

acquisitions and strategic alliances has been driving its growth.

In 2013 Orizzonte SGR became a shareholder .

In december 2016 the SPAC Capital for Progress 1 merged into GPI; stocks and warrants were listed on the AIM Italia .

Throughout 2017 GPI followed the industrial plan guidelines: acquisitions and joint participations continued, the project to simplify the group organization started.

In december 2018: AIM -to -Main , graduation to the MTA.

MARKET

• 1. Slow to decide and to change the planning (ITA)
• 1. Software is a commodity of service
• 1. Fragamentation (ITA)

INTEGRATION

INTERNAL TEAM

• 2 years for internal integration
• Immediate Integration Costs
• 1 year for the first savings

TARGET

ITALY

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

OVERSEAS

• 1. Software Structured Companies (20-30 M€)
• 1. Software Completion

RESOURCES

• BOND
• TRADIZIONAL LOAN
• WARRANT
• STOCK / STOCK
  • Big Player
  • Abroad

INVESTMENT OPPORTUNITY

Leadership and Uniqueness Growth and Visibility	GPI IN THE STOCK MARKET 15,909,539 Ordinary Shares (ISIN: IT0005221517) Bloomberg: GPI:IM Price: 7.40 € (14 Nov 2019) Capitalisation: 117.7 M€ (14 Nov 2019)
Technology and Service	ANALYST COVERAGE – TARGET PRICE 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	IRTop Research(24/10/2019): 12.35 € DIVIDEND 2016 0.30 € p.s. 2017 0.30 € p.s. 2018 0.33 € p.s.
M&A Opportunities	SHAREHOLDING STRUCTURE

investor.relations@gpi.it

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.