Investor Presentation • Jun 23, 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
(73% PUB - 27% PRIV)
9,1% GDP (vs 16,9% USA - 11,1% GER – 9,8% UK)
20% waste
40% of which inefficient care coordination
INCREASED DEMAND FOR CARE
THE CHALLENGE: to make the
health systems sustainable, limiting spending and improving quality of service
ORGANISATIONAL AND TECHNOLOGICAL RENEWAL (digital healthcare)
Rethinking the organisational models and processes used by the health and regional authorities
Net profit €M
*2017 and 2018 EBITDA, net of extraordinary costs; 2019 EBITDA includes the effects of IFRS 16
30 years of experience, management team with a track record of internal growth and M&As
1st player in Italy: services granting access to care
3rd player in Italy: software solutions for healthcare and social systems
solutions used by more than 2,200 customers in more than 60 countries
integrated software, technology and service solutions to optimise the clinical, care, administrative and social processes.
our work helps improve the quality of life
action to protect the health of employees, collaborators, suppliers, partners and customers management of economic/financial implications relating to the business
information services on COVID-19, 24/7
Strategic segmentation and business models
Note: % revenues for SBA out of total revenues referring to FY 2018
Software
Resources Care Administration & Prevention
Administration System Social Care & Tissue Bank Human Continuum Public Safety
Data Health PRM Population Health Analytics Cooperation Management
Healthcare Healthcare Healthcare Virtual Care Administration Services Technologies Solutions Services
Health Clinical Health Blood
Care
Pay
Solutions Solutions
* H-pub: public healthcare customers; H-Pri: private healthcare customers, NH-Pub: public non-healthcare customers; NH-Pri: private non-healthcare customers
Tenders win ratio**
• 35%
Revenue predictivity
• 50%
• 92%
• 1-3 years
Average value of tenders acquired
• 6-7 mln/€ year
Competitive position
• 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)
* 2018 EBITDA adjusted by extraordinary costs for listing on the MTA
* 2018 EBITDA adjusted by extraordinary costs for listing on the MTA
• 40%
Revenue predictivity
• 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)
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%)
ePayment services (approx. 85%), income from POS rental and related software (approx. 15%)
Hpub Hpri NHpub NHpri +2,200 Public and private customers • Healthcare Authorities • Hospitals • Public providers (in-house) • Regions, Provinces (health) • Nursing homes, private clinics, etc. • Analytics, providers • Trade associations, insurers • Cooperatives • Private users • Pharmacies • Municipalities • Provinces • Regions • Regional agencies • Universities • Consortia • Large-scale retail channel • Banks • Meal voucher operators • NON-FOOD chain stores • Local organisations (ACI, etc.) 74.0% 13.4% 6.3% 6.3% 74.5% 9.0% 6.8% 8.8% 2018 2019 2019 2019 2019 2018 2018 2018
ITALY > 40 branches
SOLUTIONS WORLDWIDE > 60 countries
Overview and main results FY2019
Warehouse Automation (> €2 M): Austria, China, Qatar, Saudi Arabia, Switzerland, Hungary, Ireland
to the contribution made by the SBAs:
Net profit: €9.8 M +3.1%
| 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 2019 characterised by |
EBITDA % of adj. revenue |
14.4% | 14.8% |
| XX.X • XX.X 3 acquisitions • |
Pre-tax profit |
12.8 | 12.8 |
| 2 NewCos • 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
A3.1 CERVED Rating confirmed A- S&P |A3 Moody's | A-1 Fitch
€91.3 M (€75.6 M in 2018):
€72.1 M (€68.6 M in 2018):
Net financial position €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%
|| 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 |
global market value of administrative services not available because of its heterogeneous nature international comparison impossible.
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 |
|| Source: Netics (2018)
01
Strong increase over the BP period
Geographical areas of growth: DACH, Russia, China, Middle East and America
doubling up of the segment % weight
ITALY HEALTHCARE SW MARKET LEADERSHIP
Major regional and national tenders
M&As
Focus of R&D on Machine Learning and on the digital transformation
FROM PRODUCTS/ SERVICES TO INTEGRATED SOLUTIONS
Greater integration of services | SW | technologiesto respond to the evolution of healthcare models and the healthcare demand.
Multi-business nature with the contribution of all ASAs.
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%.
03.
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:
03.
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.
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.
04.
27
increase efficiency in the supply of contact centre services through the introduction of a technological platform to support HR planning and programming.
Care
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.
STRATEGIC PARTNERSHIPS FOR NATIONAL TENDERS
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.).
DEVELOPMENT OF THE ORGANISED CATERING SEGMENT
improvement of the competitive positioning
Equal scope of consolidation as of 31/12/2019
Million Euros
ASA breakdown, equal scope of consolidation as of 31/12/2019
TARGET
| Leadership and Uniqueness | GPI IN THE STOCK MARKET Bloomberg: GPI:IM 15,909,539 Ordinary Shares (ISIN: IT0005221517) Price: 7.76 € (19 June 2020) |
|
|---|---|---|
| Growth and Visibility |
Capitalisation: 123.5 M€ (19 June 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%
Fabrizio Redavid Mob. +39 335 1035499 [email protected]
Lorenzo Giollo 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,
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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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