Gpi

Investor Presentation • Jan 16, 2025

STRATEGIC HORIZONS

G p i 's I n d u s t r i a l P l a n 2 0 2 5 – 2029

M i l a n , 1 6 J a n u a r y 2 0 2 5 B o r s a I t a l i a n a – A r e a S c a v i

Agenda

GPI OVERVIEW F. Manzana CEO

1

2

3

MARKET OVERVIEW AND OPPORTUNITIES F. Redavid CMO

2

STRATEGIC PLAN M. Santoro GM PLAN AND PERFORMANCE

4 Q&A SESSION

Agenda

GPI OVERVIEW F. Manzana CEO

3

MARKET OVERVIEW AND OPPORTUNITIES F. Redavid CMO

3

STRATEGIC PLAN AND PERFORMANCE M. Santoro GM

4 Q&A SESSION

GPI OVERVIEW: KEY MESSAGES

Emerging leader in Healthcare Software in Italy (acquisition of Consip/NRRP tenders)

Sustained growth of c. 17% in 2020-2023 also driven by M&A

Improvement of marginality thanks to M&A

Offering diversification in software and with other SBAs (Care, Automation)

GPI'S VALUES, VISION AND MISSION

GPI IS MARKET LEADER IN ITALY AND GAINING MARKET SHARE IN SOFTWARE SECTOR

GPI is the Italian market leader in the healthcare software and healthcare BPO markets in the 2021-2023 period.

(2) 2022 revenue for Dedalus and DXC (2023 data not available)

GROUP REVENUE AND EBITDA

GROWTH BENCHMARKING VS. COMPETITORS

GPI recorded a significantly higher growth than competitors in Software SBA, with a strong contribution from organic growth.

GEOGRAPHICAL PRESENCE

GPI's international presence as of today was achieved mainly through acquisitions. GPI realized 18% of its revenue abroad in 2023 and is looking forward to strengthen its international presence.

SOFTWARE OFFERING EVOLUTION

DIVERSIFICATION OVER SOFTWARE

Strategic Positioning – close to strategic healthcare decision makers

Innovation – infrastructure platform for new HealthCare models development (telemonitoring)

Technologies – cutting-edge proprietary technologies well perceived by the market

Market – characterized by elements of fragmentation with high growth potential (9-10% exp. CAGR)

Profitability – good profitability (~20% EBITDA margin)

Scale-up – scalable international presence (exportable product) thanks to its industrial approach

2025-2029 STRATEGY AND TARGETS

NEW STRATEGY 2029 TARGETS

1. Consolidation of national leadership position

Capture extra value from recent acquisitions, also developing vertical global products and international presence 2.

Enhancement of organization model to be appropriate with the size and complexity of the Group 3.

Agenda

GPI OVERVIEW F. Manzana CEO

MARKET OVERVIEW AND OPPORTUNITIES F. Redavid CMO

14

STRATEGIC PLAN AND PERFORMANCE M. Santoro GM

4 Q&A SESSION

MARKET OVERVIEW AND OPPORTUNITIES – KEY POINTS

Digitalization will push demand towards more innovative solutions, which integrate new technologies (e.g., AI and IoT) to increase professional networks productivity

The global healthcare IT market's value is over €60b as of 2024 with an expected CAGR 2024-2030 of 8-10%

In the main target countries healthcare IT market's value is over €25b as of 2024 with an expected CAGR 2024-2030 of 11-12%

The Italian healthcare IT market's value is c. €1,7b as of 2024 with an expected CAGR 2024-2030 over 11%

Main target countries show greater maturity for horizontal products with evolution trends toward areas of vertical specialization (greater opportunities)

Italy: a market with different level of maturity and potential for growth on both horizontal and verticals products

HEALTH MARKET HAS FEW SIMPLE EXPECTATIONS ON DIGITALIZATION

The success of any digital solution is ensured when all stakeholders are aligned in achieving six invaluable and welldefined objectives:

What

Expand access to care:

leveraging remote technologies and innovative solutions to provide continuous and equitable access to care.

Enable better outcomes:

to enhance clinical decision-making, optimize care pathways, and improve overall patient health outcomes.

Enhance patient experience:

prioritize personalized and seamless interactions with healthcare systems.

Empower community health:

providing communities with the digital resources to enhance wellness and preventive care.

Elevate professional skills:

training, ongoing support and equipping to effectively use digital tools and fostering a culture of innovation.

Enrich economic sustainability:

optimize resource use, reduce waste to ensure financial viability.

Why How

DIGITAL SOLUTIONS MAY DRIVE THE MARKET THROUGH NEW CAPABILITIES

Digital solutions, to achieve the previous objectives, must bring to the table technologies and features that unlock the following capabilities:

Delivering remote patient care:

virtual care solutions empower healthcare to transcend time and space, enabling patients to receive care whenever and wherever they need.

Integrating health settings:

interoperability solutions enabling better coordination, uninterrupted care, and swift adaptation to ever-changing challenges.

Simplifying information access:

intuitive digital tools turn complex data into actionable insights, equipping healthcare professionals to make smarter decisions.

Innovating in biotechnology:

cutting-edge biotech advancements are transforming healthcare, driving groundbreaking innovations in diagnostics, treatment, and prevention.

Applying artificial intelligence:

unlock smarter decision-making, delivering personalized care and revolutionizing how data shapes healthcare outcomes.

Simulating and replicating real world scenarios:

to minimize intervention risks and scale services efficiently, redefining safer training, diagnostics, and treatments.

Why How What

TECHNOLOGY COMBINATIONS FOR INNOVATIVE SOLUTIONS ARE INFINITE

The hype cycle of Digital Health Solutions traces innovations from initial enthusiasm to maturity and adoption

HEALTHCARE IT MARKET SIZE AND EXPECTED GROWTH RATE

	Market Size 2024 (€b)	Exp. CAGR 2024-2030 (%)
Global Market	> 60	8-10%
Main Target Countries for Development France, DACH, USA, Italy	> 25	11-12%
Italy	c. 1,7	11,3%

FOCUS ON HEALTHCARE IT PRODUCT CATEGORIES IN MAIN TARGET COUNTRIES

		€m (size) % (CAGR 2024-2030)	Italy	France	DACH	USA	Total
Horizontal	Core Offering	• Chronic • EHR/EMR • Management Control • Scheduling	800 7%	742 6%	1.334 6%	7.234 8%	10.109 7%
Vertical	Blood	• Blood	27 5%	33 9%	48 6%	209 8%	317 7%
Vertical	Diagnostics	• Imaging • Pathology • Laboratory	179 7%	258 8%	788 10%	3.588 7%	4.812 8%
Vertical	Critical Care	• Critical Care	31 9%	88 15%	164 9%	751 7%	1.034 8%
	Total		c. 1.050	c. 1.100	c. 2.300	c. 11.800	c. 16.300

Sources: Statista – Digital Health; NetConsulting – ICT Research; GrandivewResearch – Single Digital Product; KPMG elaborations DACH = Germany, Austria and Switzerland

AUTOMATION AND BPO SERVICES (CARE) MARKET SIZE AND EXPECTED GROWTH

AUTOMATION	Market Size 2024 (€m)	Exp. CAGR 2024-2030 (%)
Main Target Countries for Development France, DACH, USA, Italy	3.500	9,2%
Italy	135	10,7%

BPO Services (Care)	Market Size 2024 (€m)	Exp. CAGR 2024-2030 (%)
Italy	c. 300	3,0%

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Agenda

GPI OVERVIEW F. Manzana CEO

2

1

MARKET OVERVIEW AND OPPORTUNITIES F. Redavid CMO

22

3

STRATEGIC PLAN AND PERFORMANCE M. Santoro GM

4 Q&A SESSION

STRATEGIC PLAN – KEY POINTS

• Selective growth in international markets and verticals
• • Implementation of a more efficient and productive operating model
    -
  • Profitable diversification in the Healthcare Technologies sector
  • ESG plan in accordance with CSRD and focused on social impact

STRATEGIC PATH OF GPI GROUP

Strategic Plan 2025 -2029

Actions :

• Consolidation in Italian market
• Appreciation of recent investments
• Transformation of operating model
• Diversification

Impact :

• Profitable growth
• Improvement of cash flow profile
• Reduction of leverage

OFFERING FRAMEWORK

GPI's offering has been divided in three categories:

• Core offering: project-based and closely related to local needs and regulations
• Vertical offering: product-based and with a potentially global scale
• Diversification: business different from software but with strategic synergies

STRATEGIC PROGRAM: PILLARS OF THE STRATEGIC PLAN 2025-2029 (1/4)

SOFTWARE ITALY ENHANCEMENT
Consolidation Italy and growth of Core (Software)	• Grow from core offering HIS, Social Care, ERP for Health, Data Analytics and HR software (75% of additional revenue from these products)
	• Strengthen geographical presence in all Italian country to capture new opportunities/new tenders
	• Increase presence in private healthcare organization
Artificial Intelligence	• Develop AI functions/AI modules to be added to existing software • Lunch pilot of new application to Population Health Management
Telemedicine	• Pursue increase in use of telemedicine platform (Pohema) • Launch several projects of telemonitoring services for chronic disease management (see Care transformation)

GROWTH OF BLOOD, TESI, EVOLUCARE

Blood	• Global scale-up of sales in established countries (France, USA, Italy, Spain, Mexico) and new countries under development (Middle-East) • Create unique integrated solution to be provided to existing (run-off plan) and new clients
Diagnostics (Tesi)	• Continue growth in countries where Tesi Group is present (Italy, Mexico, Brasil) • Develop new countries where GPI is present with different offering (USA, Middle-east, Spain, France, DACH)
France (Evolucare)	• Continue growth in France following the digitalization wave (Segur de la Santé Program) in the country and maintain current market positioning • Develop new countries where GPI is present with different offering (Spain, Middle-east, USA, DACH)

STRATEGIC PROGRAM: PILLARS OF THE STRATEGIC PLAN 2025-2029 (3/4)

PERFORMANCE DRIVEN TRANSFORMATION (OPERATIONS PRODUCTIVITY)

Framework geographies/verticals	• •	Increase commercial synergies through the integration of development, production and delivery Enhance operational efficiencies through the unification of product teams
Centralization of corporate functions	• •	Merge/integrate redundant corporate functions (costs) Increase standardization of governance and control functions

Care	• Focus on traditional business in the most profitable jobs and improve efficiency by continuous technology implementation • Launch several pilot projects of population health telemonitoring (chronic disease); service provided by use of proprietary control rooms and proprietary software
	• Increase international presence in countries where the Group is present (direct channel) and develop new countries with local distributor (indirect channel)
Automation	• Innovate and standardize products by development standard modules of robot, automatic warehouse and handling/tracking systems
	• Launch of project Tylent with controlled investments (proprietary dosing system robot for Hospitals)

NEW INITIATIVES
General	• Acquire a SaaS digital platform to collect data and information on ESG topics from Group companies (on-going) • Define new ESG governance structure, to be integrated into the AFC area, with the creation of an associated cost center
Environmental	• Complete mapping of Group's Carbon Footprint • Identify the most relevant KPIs and implement a Group measurement system
Social	• Identify the of most relevant KPIs and implement a Group measurement system starting from research project aimed at defining a taxonomy for GPI's social impact • Increase user satisfaction index rating and number of participating users • Reinforce employees' training practices
Governance	• Implement a full suppliers' ESG evaluation process • Increase female representation in managerial roles

PERFORMANCE OVERVIEW AND TARGETS

Expected CAGR 2023-2029 over 8% with continuous improvement of marginality

Efficient management of capital structure

Targets 2027 & 2029

GROUP REVENUE AND EBITDA

NET DEBT AND DIVIDENDS OVERVIEW

		2027E	2029E
ECONOMICS	REVENUE EBITDA	> €600m > 22%	> €700m > 25%
CAPEX		c. 7-9% of revenue	c. 7-9% of revenue
ROIC		> 11%	> 15%
DIVIDENDS			Stable distributions
DEBT	NFP/EBITDA	< 2,7x	< 2,5x

TARGET REVENUE BREAKDOWN 2027-2029

REVENUE BY PRODUCT REVENUE BY GEOGRAPHY

	2023A	2027E	2029E
ITALY	82%	73-75%	70-73%
INTERNATIONAL	18%	25-27%	27-30%

35

Agenda

GPI OVERVIEW F. Manzana CEO

1

2

3

MARKET OVERVIEW AND OPPORTUNITIES F. Redavid CMO

36

STRATEGIC PLAN AND PERFORMANCE M. Santoro GM

4 Q&A SESSION

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.