Investor Presentation • Aug 4, 2020
Investor Presentation
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A segment that can impact a country's economic development, the keeping of public accounts and its very social cohesion
INCREASED DEMAND FOR CARE
THE CHALLENGE: to make the health systems sustainable, limiting spending and improving quality of service
Rethinking the organisational models and processes used by the health authorities
We develop software, technologies and services to help the health care providers to innovate the models of care, assistance and prevention, optimizing processes and containing costs
A partnership to make health systems sustainable and help improve people's health and well -being
International footprint
History of Growth
30 years of experience, management team with a track record of internal growth and M&As
solutions used by more than 2,200 customers in more than 60 countries
1st player in Italy: services granting access to care
3rd player in Italy: software solutions for healthcare and social systems
Uniqueness
Leadership
integrated software, technology and service solutions to optimise the clinical, care, administrative and social processes.
Quality of life
our work helps improve the quality of life
3
Strategic Business Areas
Pay 2.8 Automation 4.8 ICT 4.9 Software 38.1
SERVICES 49.4% Care
Note: % revenues for SBA out of total revenues referring to FY 2018
Software
main SBAs
87.5% of total revenue
other SBAs
12.5 % of total revenue
ICT
Pay
Care
Net profit €M
Staff 2017 2018 2019
• >75 mln M&A deals
*2017 and 2018 EBITDA, net of extraordinary costs; 2019 EBITDA includes the effects of IFRS 16
TELEMEDICINE: INTEGRATED ECOSYSTEM OF SOFTWARE SOLUTIONS, MOBILE and WEARABLE DEVICES, OPERATIONS CENTRE SERVICES FOR THE TECHNOLOGY RELATED ASSISTANCE, THE MONITORING OF CLINICAL PARAMETERS AND THE HOME CARE FOR PATIENTS
7
* H-pub: public healthcare customers; H-Pri: private healthcare customers, NH-Pub: public non-healthcare customers; NH-Pri: private non-healthcare customers
Segmentation
Adj. revenue €M EBITDA €M
Supply lines
• 35%
• 50%
• 92%
• 1-3 years
• 6-7 mln/€ year
• 3rd player IT
**Win Ratio as a % of wins to n° of bids. Conversion Win Ratio 6.8% (won contracts value to tenders value 2017- 2019)
• 40%
• 95%
• 97%
• 4-6 years
** Win Ratio as a % of wins to n° of bids. Conversion Win Ratio 16.4% (won contracts value to tenders value 2017- 2019)
* 2018 EBITDA adjusted by extraordinary costs for listing on the MTA
Sales of HW for automated warehouses (approx. 87%) and maintenance and service fees (approx. 13%)
Desktop management services fees (approx. 89%) other system services (approx. 11%)
Automation ICT Pay
ePayment services (approx. 85%), income from POS rental and related software (approx. 15%)
GPI worldwide
ITALY > 40 branches
SOLUTIONS WORLDWIDE > 60 countries
Overview and main results FY2019
| Revenues +18.3%, Net profit +3.1% |
€M | 2019 | 2018 |
|---|---|---|---|
| Revenue €240.9 M, +18.3% thanks | Revenue and other income | 240.9 | 203.7 |
| to the contribution made by the SBAs: • Care +35.0% |
Adj. revenue (1) | 223.3 | 192.9 |
| • Other +21.2% • SW +1.2% |
EBITDA | 32.2 | 28.6 (2) |
| X.X X.X characterised by 2019 |
EBITDA % of adj. revenue |
14.4% | 14.8% |
| XX.X XX.X • 3 acquisitions • 2 NewCos |
Pre-tax profit |
12.8 | 12.8 |
| • Incorporation of 1 subsidiary |
Net profit (loss) | 9.8 | 9.5 |
(1) Net of Temporary grouping of companies (RTI) (2) Net of extraordinary costs for listing on the MTA
€91.3 M (€75.6 M in 2018):
€72.1 M (€68.6 M in 2018):
€82.8 M (€69.2 M in 2018 - including the effect of IFRS 16)
Investments: M&As €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 INVESTED CAPITAL | 154.9 | 130.1 |
| Shareholders' equity | 72.1 | 68.6 |
| Net financial position |
82.8 | 61.5 (2) |
| TOTAL SOURCES | 154.9 | 130.1 |
(1) Includes €11.8 M due to the IFRS 16 effect (2) Net of €7.7 M due to the IFRS 16 effect
Target market and competitive environment
value of the global 2018 Healthcare IT software + services market
| 47 % North America | CAGR 18 – | 22: 6.1% |
|---|---|---|
| 28 % Western Europe | CAGR 18 – | 22: 5.4% |
| 10% Mature Asia/Pacific | CAGR 18 – | 22: 4.3% |
| 5 % Latin America | CAGR 18 – | 22: 5.3% |
| 4 % Greater China | CAGR 18 – | 22: 13.3% |
| LAGR 18 - 22. 0.170 | |
|---|---|
| $CAGR$ 18 - 22: 5.4% | |
| CAGR $18 - 22$ : 4.3% | |
| $CAGR$ 18 – 22: 5.3% | |
| $CAGR$ 18 – 22: 13.3% | II S |
|| Source: Gartner (2019)
value of the Italian 2018 Healthcare IT software + services market
1.4% of the global market CAGR 18 – 22: 3.5%
|| Source: Gartner (2019)
€1.7 bn HealthCare IT market €1.1 bn HealthCare IT software + services market || Source: Netics (2019)
| Company | Brief description | Focus on healthcare |
Ranking | |
|---|---|---|---|---|
| ICT solutions and related services for public and private healthcare providers. |
| 1st | ||
| ICT solutions for the segments: finance, industry, telco&utilities and PA. |
Through dedicated healthcare division |
2nd | ||
| ICT solutions, administrative and social-healthcare services for public and private healthcare providers. |
| 3rd | ||
| Software for hospital processes, orders and risk management Group reply part. |
| 4th | ||
| Digital transformation & ICT services for industries, energy, aerospace, healthcare, PA, etc. |
Through dedicated healthcare division |
5th |
value underestimated insofar as, at present, part of the market is still insourced.
| Company | Brief description | Ranking |
|---|---|---|
| ICT solutions, administrative and social-healthcare services for public and private healthcare providers. |
1st | |
| Maintenance services for medical devices, operative in 17 different countries. |
N/A | |
| BPO services (e.g. cleaning, security, logistics and healthcare services). |
N/A | |
| Local supplier of services for healthcare and the educational segment, operates in the Region of Veneto. |
N/A | |
| Local supplier of services for healthcare , operates in the Region of Lazio. |
N/A |
Strategic intentions 2020-2024
EVER MORE GLOBAL 01 GROWTH IN PRIVATE HEALTH CARE ITALY HEALTH CARE SW MARKET LEADERSHIP from PARTNER from PRODUCTS/ SERVICES to INTEGRATED SOLUTIONS 02 03 04 05 Strong increase over the BP period Geographical doubling up of the segment % weight Major regional and national tenders M&As Focus of R&D on all SBAs. Greater integration of services | SW | technologies to respond to the evolution of healthcare models and the healthcare demand.
PROVIDER to
areas of growth: DACH, Russia, China, Middle East and America
Machine Learning and on the digital transformation
Multi-business nature with the contribution of
23
01.
consolidation of the market position (up-selling and cross-selling), continuous participation in major tenders and strategic partnerships.
02.
increase in the percentage share of turnover for the ASA referring to international customers: the target value is 20%.
harmonisation of the products portfolio, review of the production process to increase productivity and product quality, innovation and technological evolution of the platforms.
Software
consolidate the market share on the H-PUB target on a national level and the current territorial presence (approx. 50% of the domestic market) through:
02.
develop, define and market the portfolio of new services towards the private H-PRI target group (private clinics, COT, nursing homes, etc.) and to manage chronic patients.
03.
technologically evolve the infrastructure in support of services to foster a multichannel approach in access (voice systems, apps, social engagement) and introduce artificial intelligence algorithms to automate certain reception services and reduce the operator's workload.
increase efficiency in the supply of contact centre services through the introduction of a technological platform to support HR planning and programming.
PRODUCT AND VALUE PROPOSITION INNOVATION THROUGH R&D OPERATIONS develop new technological solutions (e.g. automated basket/cabinet system for medical devices/cart kit engineering, etc.) and enter new segments (e.g. evolved self-service type solutions and vending machines for the pharmaceutical area, etc.). RETAIL MARKET DEVELOPMENT
enter the market of the major pharmacy chains (capital companies) both for automation and furnishing. Crossselling of the Warehouses and Pharmacy Design Studio range.
development of strategic partnerships with the market's big players (TIM, FastWeb, etc.)
INNOVATION OF OFFER ON PRIVACY & CYBER SECURITY
new value proposition focussed on privacy & cyber security on PAL target and healthcare
payment services/electronic collection and replacement storage services for the PA
DEVELOPMENT OF SMART PAYMENT FOR VENDING MACHINES
R&D on this topic, partnering dispenser manufacturers and alternative-micro payment systems (e.g. Tinaba, ALIpay, etc.).
improvement of the competitive positioning
ICT
Million Euros
ASA breakdown, equal scope of consolidation as of 31/12/2019
Product portfolio evolution software/services/territories (€1-10 M revenues)
Big players
| Leadership and Uniqueness Growth and Visibility |
GPI IN THE STOCK MARKET Bloomberg: GPI:IM 15,909,539 Ordinary Shares (ISIN: IT0005221517) Price: 6.68 € (3 August 2020) Capitalisation: 106.3 M€ (3 August 2020) |
|---|---|
| Technology and Service | ANALYST COVERAGE – Target price Intermonte SIM (22/04/2020): 10,00 € Banca Akros (02/04/2020): 11.00 € |
| Evolution of market/client |
SHAREHOLDING STRUCTURE |
| M&A Opportunities | Float 34.91% FM SRL 64,37% Treasury shares |
0.72%
Mob. +39 335 1035499 [email protected]
Mob. +39 340 8223333 [email protected]
Via C. Cantù, 1 - 20123 Milan Tel. +39 02 45473883/4 [email protected]
Via Ragazzi del '99, 13 - 38123 Trento T +39 0461 381515 investor. [email protected]
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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