Garofalo Health Care

Earnings Release • Mar 22, 2023

GHC – STAR CONFERENCE March 2023

THE GHC GROUP: THE ONLY OPERATOR LISTED IN ITALY IN THE HEALTHCARE SECTOR
THE HEALTHCARE SECTOR: RESILIENT, PHYSIOLOGICALLY GROWING AND SUBJECT TO CONSOLIDATION
GHC FY2022 RESULTS: GROWING ON ALL PERFORMANCE INDICATORS IN THE FACE OF A COMPLEX AND UNCERTAIN MACROECONOMIC ENVIRONMENT
STRENGTHS OF THE EQUITY STORY: CASH GENERATION, M&A AND REAL ESTATE ASSETS
SECTOR PROSPECTS: HEALTHCARE CONTEXT CHARACTERIZED BY THE NEED TO RECOVER THE STRONGLY GROWING WAITING LISTS
GHC OUTLOOK: SOLID ORGANIC GROWTH, STRONG M&A GROWTH AND VALUATION OF REAL ESTATE ASSETS
THE GHC OPPORTUNITY: PERFORMANCE ALREADY ACHIEVED AND DEVELOPMENT PROSPECTS TODAY NOT ADEQUATELY VALUED BY THE MARKET

The GHC Group: the only operator listed in Italy in the healthcare sector

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(1) Pro-forma data give retroactive effect to January 1, 2022 to the acquisition of GVDR, which took place in December 2022

The healthcare sector: resilient, physiologically growing and subject to consolidation

FY2022 results: up on all performance indicators against a complex and uncertain macroeconomic context (1/2) ³

(1) 2022 Pro-Forma data give retroactive effect to 1 January 2022 to the acquisition of GVDR, which took place in December 2022. Data on a like-for-like basis exclude the contribution for 1 month of GVDR in 2022

(2) Operating EBITDA Adjusted defined as EBIT + amortisation and depreciation + provisions and write-downs + adjustments (this latter in 2022 totalling approx. €3.0M, of which €1.1M due to the "extra-Covid costs", approx.

€0.6M due to M&A costs and €1.3M to management incentive plans). FY 2021 adjustments of €6.1M concern for €3.0M "extra-Covid costs", for approx. €1.8M M&A costs and for €1.3M management incentive plans

(3) Impact given by the increase in the price of energy net of the related tax credit

FY2022 results: up on all performance indicators against a complex and uncertain macroeconomic context (2/2) ³

(1) Cash conversion calculated as the ratio between Op. EBITDA Adjusted net of maintenance Capex and Op. EBITDA Adjusted

Strengths of the Equity Story : approx. 35€M of cash generation in FY2022 4

CASH GENERATION Growing business with strong cash generation

Cash generation last 12 months (€M)

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(1) Acquisition of GVDR. Figure relates to the recognized Enterprise Value

(2) Figure includes: extra-Covid costs, M&A costs, buy-back

Strengths of the Equity Story: multi-decade track record in M&A (Buy) and post-merger integration (Build) ⁴

Strengths of the Equity Story: substantial real estate assets owned (not reflected in market valuation) ⁴

Sector prospects: healthcare context characterized by the need to recover from rapidly growing waiting lists

NEED TO RECOVER THE STRONGLY GROWING WAITING LISTS

GHC outlook: solid organic growth, strong M&A growth and real estate asset valuation

DEVELOPMENT DRIVERS	HIGHLIGHTS
SOLID 1. ORGANIC GROWTH	▪ Significant growth of accredited (via 'extra-budget'), out-of-Region, and private 'out-of-pocket' business in light of growing healthcare needs ▪ Possible partnerships with insurance or social security institutions ▪ Implementation of extraordinary projects (S. Marta and IRG2)
2. STRONG M&A GROWTH	▪ Continuation of the Buy&Build strategy with "fire power" for acquisitions of at least 100€M for "ordinary" M&A in the short medium term ▪ Possibility to evaluate significant dimensional expansion through ''M&A Transformational'' (with internal resources)
3. REAL ESTATE ASSETS VALORIZATION	▪ Launch of the transfer project of Real Estate assets (currently held by subsidiaries) to GHC Real Estate ▪ Real Estate value to support potential ''M&A Transformational''

Organic growth: structurally growing business on a stand-alone basis… ⁶

…amplified by the progressive implementation of the extraordinary projects of S. Marta and Raffaele Garofalo Institute… ⁶

Strong M&A growth: firepower of at least 100€M for acquisitions in the short to medium term

Flexibility to evaluate ''case by case'' opportunities

• ❑ Facility accredited with National Healthcare System
• ❑ Significant portion of revenues from private patients
• ❑ Relevantpotentialsynergies
• ❑ Favorable ownership structure (e.g. generational transition, etc)
• ❑ Excellent reputation

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❑ Localization in virtuous regions and with favorable regulatory framework

STRATEGY

• Continuation of the Buy&Build strategy with "fire power" for acquisitions of at least €100M for "ordinary" M&A in the short-medium term
• Possibility to evaluate significant dimensional expansion through ''M&A Transformational'' (with internal resources)

Valorization of Real Estate assets: detailed roadmap defined with first actions expected by 1H2023

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The GHC opportunity: performance already achieved and development prospects that are not adequately valued by the market today

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Revenues Pro-Forma 2018-2022PF (€M) Op. EBITDA Adj. Pro-Forma 2018-2022 (€M)