First Half 2024 Results

0 3 1 0 2024

Fausto Manzana Chief Executive Officer

STRATEGIC OVERVIEW H1 24

Gpi: A Leading Player in Digital Healthcare

Strengthening our leadership in Italy and expanding internationally.

Global Presence and International Integration

Driving towards becoming a key player at the European level.

Innovative, High-Quality Solutions

Creating value for customers and patients through continuous innovation and security.

Strategic Focus on Global Software Growth

Industrial Plan set to guide medium to long-term expansion, emphasizing software and international markets.

Guidance

Expected revenues > €500M, EBITDA ~ €100M, with NFP in full compliance with financial covenants.

Confirmed commitment to shareholder remuneration: proposed dividend € 0.35 p.s.

HALF-YEAR ECONOMIC RESULTS H1 24

STRONG IMPROVEMENT IN REVENUE AND MARGIN

Outstanding Group Performance +27%

Strong revenue growth, with organic growth >12% and external lines >15%.

International Expansion Success Foreign revenues up +96%.

Record EBITDA Growth +76%

Increased Profitability Margin up to 17.2% (18.3% on adjusted revennue), 5 p.p. higher than H1 23.

Matteo Santoro General Manager

CONSOLIDATING THE ITALIAN LEADERSHIP

Centralization of Tendering Procedures in Italy

Since 2021, Italy's public tendering has become concentrated within the national central procurement body, Consip.

Major Health Digitization Tenders

Consip has launched five nationwide tenders for health digitization through framework agreements, with a total value of €4 billion.

Gpi's Success in Consip Tenders

Gpi has secured awards in the first four tenders; the fifth is currently underway.

Lombardy's National Framework Agreement

Region Lombardy has also introduced a nationwide framework agreement.

High Quality Standards and Interoperability

INCREASING INTERNATIONAL FOOTPRINT

A GLOBAL SPECIALIZED PRODUCT OFFER

CRITICAL CARE

optimized and secure management of anesthesia, intensive care and operating rooms.

PATHOLOGY

safe and high-quality laboratory and diagnostic processes and digital pathology.

BLOOD

safe and efficient management of the whole supply chain, from donation to transfusion and transplantation, of blood and all substances of human origin (SoHO)

LIS

safe and high-quality laboratory and diagnostic processes. Integrated management of analytical, managerial and administrative processes both in hospitals and locally.

IMAGING

clinical imaging system for the management of all types of hospital imaging, including patient data reporting.

TELEMED

software and hardware products for telemedicine, tele-monitoring and teleassistance including the remote detection of vital signs.

SOFTWARE H1 24

The focus on Software resulted in an improvement in profitability for the entire Group.

Software

Modular and integrated information systems:

62% Clinical HIS ERP Other
25% Blood LIS Imaging Critical Care
5% Business Intelligence Data analytics
8% HR PA

BU revenue % on SBA's Software total revenues

OTHER STRATEGIC BUSINESS AREAS H1 24

Care

optimizing workflows of the healthcare system BPO healthcare administrative svc. Access to Care

Automation

Pharmacy Automation (hospital & retail)

ICT HW & SW maintenance & assistance System services Cyberdefence

DOUBLE DIGIT GROWTH H1 24: REVENUE +27% EBITDA +76%

€ M	H1 24	H1 23 restated1
Revenue & other Income	236.4	185.8
Adjusted Revenue2	222.6	173.5
EBITDA	40.7	23.1
EBITDA % on adj. Revenue X,X	18.3%	X,X 13.3%
XX,X EBIT	XX,X 7.8	3.7
Net Income	85.8	(1.3)

1) 2023 restated in light of the PPA of the Tesi Group and IFRS 5 related to Argentea 2) Adjusted Revenue, net of consortia revenue

Revenue: € 236.4 M +50.6 M

EBITDA: € 40.7 M +17.6 M

EBITDA margin 18.3% on adj. Revenue 5 p.p. increase

EBIT: € 7.8 M Amortization and Provisions € 32.9 M

Net Income: € 85,8 M Net interest expenses € 3.1 M Tax impact € 1.8 M Capital gain on Argentea € 82.8 M

FINANCIAL HIGHLIGHTS H1 24

€ M	H1 24	FY 23
Net Working Capital	250.6	224.6
Fixed Assets	450.5	449.4
Other Operating Assets/ (Liabilities)	(105.4)	(82.8)
Assets/ (Liabilities) held for sale X,X		3.5 X,X
XX,X NET INVESTED CAPITAL	XX,X 595.7	594.7
Shareholders' Equity	298.2	229.8
Net Financial Indebtedness	297.5	364.9
TOTAL SOURCES	595.7	594.7

Net Working Capital

(+) inventory increase € 2.9 M;

(+) increase in trade receivables and contracts assets € 24.3 M;

(-) increase in trade payables and account receivables € 1.3 M.

Shareholders' Equity

Dividend (€ 14.4 M)

Net Financial Indebtness

Includes € 37.8 M in debts for extraordinary operations.

Capex

Tot. € 24 M o/w R&D € 13.8 M (H1 23: € 23.8 M€ o/w R&D € 12.2 M)

NET DEBT BRIDGE H1 24

236 € M	41 € M	18.3%	400 € M
Revenue H1 24	EBITDA H1 24	EBITDA margin on adj. Revenue	M&A 2017-2023
+50.6 M	+17.6 M	+ 5 p.p.

Proposed Dividend € 0.35 p.s.

SOLID GROWTH in both REVENUE and EBITDA
STRONG INTERNATIONAL IMPULSE
STRATEGIC for the Healthcare Systems
SOUND and CLEAR STRATEGY focus on SOFTWARE
NATIONAL and EUROPEAN REFERENCE POINT

Innovation for Sustainable Healthcare

INVESTMENT QUICK TAKE

a Strategic Growing Market

Analyst		Target Price	Recomendation
Banca Akros	13 May 2024	€ 16.00	Buy
Intermonte SIM	17 April 2024	€ 14.60	Outperform
Midcap Tp Icap	1 October 2024	€ 19.10	Buy

Shareholder structure

based on information available to Gpi as at 30 September 2024

Voting rights

A KEY PLAYER DRIVING THE DIGITIZATION OF HEALTHCARE SYSTEMS FOR ENHANCED SUSTAINABILITY.

IR Contact details

Via Ragazzi del '99, 13 - 38123 Trento t. +39 0461 381515 [email protected]

Fabrizio Redavid

[email protected]

m. +39 335 1035499 Lorenzo Giollo

m. +39 340 8223333 [email protected]

Appendix Financial Statements H1 24

CONSOLIDATED INCOME STATEMENT € ,000	H1 2024	H1 2023 restated1*
Revenue	230,500	182,791
Other income	5,927	3,050
Total revenue and other income	236,427	185,841
Raw materials and consumables	(9,239)	(8,572)
Service costs	(55,383)	(45,291)
Personnel expense	(127,475)	(107,192)
Amortisation, depreciation and impairment losses	(25,150)	(17,200)
Other provisions	(7,708)	(2,187)
Other operating costs	(3,660)	(1,680)
Operating profit	7,813	3,719
Financial income	11,013	2,107
Financial expense	(14,157)	(9,547)
Net financial income and expenses	(3,144)	(7,440)
Share of profit/(loss) of equity-accounted investees, net of tax	27	5
Profit (loss) before tax	4,697	(3,716)
Income tax	(1,755)	393
Net income from continuing operations	2,942	(3,323)
Net profit (loss) from discontinued operations	82,826	2,019
Profit for the period	85,768	(1,304)
Profit/(loss) for the period attributable to:
Owners of the parent	85,902	(1,240)
Non-controlling interests	(134)	(64)

*The comparative information of the balance sheet at 31 December 2023 has been restated¹ to retroactively reflect the effects of the Purchase price allocation made in the second half of 2023 related to the acquisition of Evolucare.

*The comparative information of the income statement for the 1st half of 2023 has been restated¹ to retroactively reflect the effects of: i) Application of IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" relative to the sale of Argentea S.r.l.; ii) the purchase price allocation relative to the 2022 acquisition of Tesi Elettronica and Sistemi Informativi S.p.A. The restated¹ and published reconciliation for the Financial Statements at 31 December 2023 and the 1st half of 2023 can be found in Note 9.10.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION € ,000	30 June 2024	31 December 2023 Restated1*
Assets
Goodwill	186,827	186,699
Other intangible assets	198,195	202,189
Property, plant and equipment	52,673	48,396
Equity-accounted investments	458	453
Non-current financial assets	11,445	10,378
Deferred tax assets	15,070	11,885
Non-recurring contract costs	936	1,253
Other non-current assets	9,142	8,937
Non-current assets	474,747	470,191
Inventories	17,882	14,943
Contract assets	220,368	198,040
Trade receivables and other assets	116,157	112,922
Cash and cash equivalents	73,580	40,785
Current financial assets	43,450	24,635
Current tax assets	5,493	4,211
Current assets	476,930	395,536
Assets held for sale	-	7,587
Total assets	951,677	873,314
Equity
Share capital	13,890	13,890
Share premiumreserve	209,562	209,562
Other reserves and retained earnings/(losses carried forward), including profit/(loss) for the period	76,456	7,578
Capital and reserves attributable to owners of the parent	299,908	231,030
Capital and reserves attributable to non-controlling interests	(1,694)	(1,243)
Total equity	298,214	229,787
Liabilities
Non-current financial liabilities	249,893	297,059
Employee benefits	13,988	10,392
Non-current provisionsfor risks and charges	4,611	4,920
Deferred tax liabilities	29,812	31,468
Other non-currentliabilities	8,401	7,226
Non-currentliabilities	306,705	351,065
Contract liabilities	8,116	7,619
Trade payables and other liabilities	150,996	129,044
Employee benefits	3,058	2,596
Current provisionsfor risks and charges	1,861	1,421
Current financial liabilities	161,644	130,441
Current tax liabilities	21,083	17,241
Currentliabilities	346,758	288,362
Liabilitiesrelated to assets held for sale	-	4,100
Total liabilities	653,463	643,527
Total equity and liabilities	951,677	873,314

CONSOLIDATED STATEMENT OF CASH FLOWS, € ,000	H1 2024	H1 2023 Restated1*
Cash flows from operating activities
Profit for the period	85,768	(1,304)
Adjustments for:		-
- Depreciation of property, plant and equipment	5,517	4,424
- Amortisation of intangible assets	19,316	12,743
- Amortisation of contract costs	317	290
- Other provisions	7,708	2,187
- Net financial income	3,144	7,346
- Share of profit/(loss) of equity-accounted investments, net of tax and the result of assets sold	(82,826)	-
- Income tax	1,755	336
Changes in working capital and other changes	(16,137)	(10,770)
Interest paid	(10,678)	(7,337)
Income taxes paid	(911)	(799)
Net cash flows generated by operating activities	12,973	7,115
of which from assets held for sale		4,569
Cash flows from investing activities
Interest collected	307	659
Net investments in property, plant and equipment	(9,790)	(10,644)
Net investments in intangible assets	(14,032)	(12,190)
Net change in other current and non-current financial assets	(12,607)	(4,139)
Disposal (Acquisition) of subsidiaries, net of cash acquired and disposals	74,516	(748)
Purchase of third-party equity investments, net of advances	-	-
Net cash flows used in investing activities	38,394	(27,062)
of which from assets held for sale	81,924	(414)
Cash flows from financing activities
Capital increases and related charges	-	-
Dividends paid	(14,405)	(14,480)
Proceeds from new bank loans	22,982	30,000
Repayment of bank loans	(21,875)	(2,963)
Proceeds from bond issues	-	-
Bond redemptions	(8,334)	(9,833)
New lease payables	7,025	2,329
Lease payments	(4,834)	(3,300)
Net change in other current and non-current financial liabilities	3,749	(3,872)
Change in liabilities for acquisition of equity investments	(2,880)	(22,200)
Net cash flows generated by (used in) financing activities	(18,572)	(24,319)
of which from assets held for sale		(4,987)
Net increase (decrease) in cash and cash equivalents	32,795	(44,266)
of which from Assets held for sale	81,924	(832)
Opening cash and cash equivalents	40,785	177,054
Cash and cash equivalents	73,580	132,788

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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