Investor Presentation • Apr 16, 2020
Investor Presentation
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GPI: a Global Partner for a healthy future Fausto Manzana Chairman and CEO P.03
M&A guidelines Andrea Mora Vice President P.40
Q&As
P.46
| Overview and main results | ||||
|---|---|---|---|---|
2020 - 2024 Strategic Business Plan Lorenzo Montermini Marketing Director P.15
GPI: a global partner for a healthy future
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% PIL (vs 16,9% USA - 11,1% GER – 9,8% UK)
20% dei costi per sprechi
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 and regional authorities
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
Uniqueness Quality of
integrated software, technology and service solutions to optimise the clinical, care, administrative and social processes.
our work helps improve quality of life
ITALY > 40 branches
SOLUTIONS WORLDWIDE > 60 countries
action to protect the health of employees, collaborators, suppliers, partners and customers management of economic/financial implications relating to the business
Overview and main results FY2019
Export + 16.4%: new orders Pharmacy Warehouse Automation (> €2 M):
Net profit €M Staff
| Revenues +18.3%, Net profit +3.1% |
€M | 2019 | 2018 | |
|---|---|---|---|---|
| Revenue €240.9 M, +18.3% thanks to the contribution made by the ASAs: • Care +35.0% |
Revenue and other income | 240.9 | 203.7 | |
| Adj. revenue (1) | 223.3 | 192.9 | ||
| • Other +21.2% • SW +1.2% |
EBITDA | 32.2 | 28.6 (2) | |
| 2019 characterised by |
EBITDA % of adj. revenue |
14.4% | 14.8% | |
| • 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 impact of IFRS 16 (2) Net of €7.7 M due to the impact of IFRS 16
2020 - 2024 Strategic business plan
Strategic segmentation and business models
Strategic business areas
Administration System Social Care & Tissue Bank
Human Continuum Public Safety Resources Care Administration & Prevention
Health Clinical Health Blood
Data Health PRM Population Health Analytics Cooperation Management
* H-pub: public healthcare customers; H-Pri: private healthcare customers, NH-Pub: public non-healthcare customers; NH-Pri: private non-healthcare customers
• 35%
• 50%
• 92%
• 1-3 years
• 6-7 mln/€ year
• 3rd player IT
** Win ratio intended as % no. tenders won out of total no. tenders participated. The conversion win ratio: % GPI value of tenders won out of basic tender value participated is 6.8%
• 40%
• 95%
Customer retention
• 97%
• 4-6 years
** Win ratio intended as % no. tenders won out of total no. tenders participated. The conversion win ratio: % GPI value of tenders won out of basic tender value participated is 6.8%
* 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%)
Reference market and competitive context
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)
\$0.8 bn*
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 healthcar e |
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 insofar as they are very heterogeneous services that are not easily approved on an international level
value underestimated insofar as, at present, part of the market is still addressable insofar as it regards insourced services.
| 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 and action plan
EVER MORE GLOBAL
Strong increase over the BP period
Geographical areas of growth: DACH, Russia, China, Middle East and America
GROWTH IN PRIVATE HEALTHCA RE
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
02 03 04 05
FROM PRODUCTS/ SERVICES TO INTEGRATED SOLUTIONS
Greater integration of services | SW | technologiesto respond to the evolution of healthcare models and the healthcare demand.
FROM PROVIDER TO PARTNER
Multi-business nature with the contribution of all ASAs.
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%.
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
01.
marketing and commercial strategy focussed on up/cross-selling towards customer base of solutions of recent acquisitions (M, HS, IL, S, etc.)
02.
Pursuit of foreign commercial actions on Blood bank, TeleMed, Neonatology and Health Meetings
03.
Marketing and commercial strategy with new business models (SaaS, Pay per Use, etc.) for H-PRI target, focussed on SIO solutions, Reception management/CUP, Social-Healthcare Information System, Blood Management, HR and Veterinary Sciences
04.
review of the software life cycle management procedures in accordance with "agile" production paradigms, rationalisation and innovation of products in terms of technological update (e.g. 5G), UX (mobile/BYOD), scalability and configurability of the solutions in the following areas: CLINICAL SYSTEM | BLOOD & TISSUE BANK PATIENT RELATIONSHIP MANAGEMENT |HEALTH SOCIAL CARE HEALTH ADMINISTRATION |DATA ANALYTICS POPULATION HEALTH MANAGEMENT|HUMAN RESOURCES
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.
Care
EXTENSIVE PARTICIPATION IN TENDERS Participation in as many public tenders as possible;
02.
07.
01.
Aggregating multiple local contexts in a provincial manner or a vast area so as to promote the territory;
PROMOTION OF QUALITY OF SERVICE Promote organisational competence to make the Group offer attractive, as "technically qualified" even if more costly than local contexts 03.
DEVELOPMENT OF POPULATION HEALTH MANAGEMENT Develop a value preposition for Population Health Management (PHM) 04.
FOCUS ON PRIVATE CUSTOMERS Develop marketing and commercial initiatives to support up-selling activities and the penetration of the private market €10-15M 05.
INCREASE SERVICE AUTOMATION Developments to automate certain reception services and reduce the operator workload. 06.
EFFICIENCY Acquire new IT platform for workforce management
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.
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
training internal network, VR instruments, mktg budget increase for trade fairs and events, strengthening of the indirect sales network, focus on key accounts, analysis of new markets, development or acquisition of single dose.
Open innovation with universities and research centres with a focus on the loading of medicines and single-dose products, integration of RFID technologies;
Rationalisation of production and purchase structures;
Involvement of subsidiaries for commercial and after-sales activities
Commercial synergies and intra-ASA lobbying;
Strengthening of IT instruments and procedures for the governance of delivery compliant with international standards and methods;
In order to pursue the Cyber Security objective, we intend to assess completion of an initiative in terms of M&As
mktg and sales for the vending machine segment; evolution of the payment service of electronic meal vouchers; re-engineering of software PA payments and the promotion of solutions; Integration of Alternative Payment collection channels; new solution on Android POS for organised catering; new software for the storage service; Partnerships to enrich the functions of the Vending segment solution.
ICT
Main economic and financial goals 2024
ASA breakdown, equal scope of consolidation as of 31/12/2019
Products portfolio evolution software/services/territories (€1-10 M revenues)
Big players
Mob. +39 335 1035499 [email protected]
Mob. +39 340 8223333 [email protected]
Via Bigli, 19 - 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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