Gpi — Investor Presentation 2023

Jun 13, 2023

VISION

to be at the forefront of the technological and sustainable transformation of preventive and care processes for healthcare, promoting the well-being of individuals.

MISSION

we strive to provide health professionals and patients with the knowledge, skills, and tools necessary to enhance preventive and care processes through the use of software, services, and cutting-edge technologies.

VALUES

2

ETHICS

PEOPLE-CENTERED CARE

History of Growth

35 years of experience, management team with a track record of internal growth and M&As

solutions used by 3,000 + customers in more than 70 + countries

1st player in Italy: services granting access to care

2nd player in Italy: software solutions for health and social care systems

integrated software, technology and service solutions to optimise the clinical, care, administrative and social processes

our work helps improve the quality of life

Digital Health: the Solution for the Health Care Market

Shortage of medical staff (doctors, nurses)

Complex and intricate processes

Need for new forms of treatment (custom-made and remote clinical pathways)

Difficulties in capturing data in a structured and digital way

ARTIFICIAL INTELLIGENCE & DATA ANALYTICS

TELEMEDICINE

AUTOMATION

MANAGEMENT SOFTWARE

Current environment Digital health solution Effects and streamlining

Resources optimization and impact on average hospitalization

Process facilitation and consequent improvement of the patient journey

Greater integration and adoption of patient - centric operating model

Better and constant monitoring of the clinical path

Clients

Recurring Revenues

Revenue FY22 € 360.2 ^M

EBITDA FY22 € 54.2 ^M

4

Note: pro forma revenue includes Tesi's results on a 12-month basis

Software

€ 140.6 M Revenue € 137.6 M EBITDA

91% Retention

41% Recurring fees

1-3 years Average contract length

Modular and integrated information systems:

• 39.7% Clinical – HIS
• 19.9% Blood Management System
• 7.4% Business Intelligence, Data analytics
• 7.4% Health ERP
• 11.3% HR/PA
• 14.3% Other - Health Social Care | Telemedicine, etc.

Care

€ 166.5 M Revenue € 166.5 M EBITDA

95% Retention

93% Recurring fees

4-6 years Average contract length

Supporting the National Healthcare Systems:

• BPO health care administrative svc. (AtC,..)
• Virtual care (services)

Automation

€ 17.5 M Revenue € 13.6 M EBITDA

Pharmacy Automation

• Retail
• Hospitals

ICT

Supply Lines FY22

€ 19.7 M Revenue € 12.1 M EBITDA

on-site / on-line

• HW & SW maintenance & assistance
• system services

Pay

• € 13.6 M Revenue
• € 14.5 M EBITDA
• e-payment & e-mandate
• electronic storage

Geographic Footprint Customer Base

Italy: the entire offering

% of worldwide revenue FY22

Health Public 80.0%

• Healthcare Authorities
• Hospitals
• Public providers (in-house)
• Regions, Provinces

Health Private 7.5%

• Nursing homes
• Private clinics
• Pharmacies

Non Health Public 6.3%

• Municipalities
• Provinces
• Regions

Non Health Private 6.2%

• Large scale retail trade
• Banks
• Meal voucher operators
• Non-food chain stores

Highlights FY22

A year of extraordinary transactions and investments for international growth and company consolidation

• Sustainability-linked refi stipulated for € 190 M to support M&A
• Acquisition of Tesi 65% | 35% put & call | EV € 90 M
• Share Capital Increase ~ € 140 M
• Rating Agency Confirms A3.1 Public Rating A- S&P |A3 Moody's | A-1 Fitch equivalent

Entering the Japanese market with pharmacy robots

New contracts in Greece, Estonia, Saudi Arabia (whole Countries ~ € 14 M )

Consip Framework Agreement "1" EMR & Telemed: the consortium led by Gpi equalled ~ € 104 M of direct orders to date Gpi added up to ~ € 82 M o/w featured:

• Electronic Medical Record Lombardy Region ~ € 12.5 M
• Pathological Antomy software Veneto Region ~ € 5.9 M
• Telemedicine Platform Friuli Venezia Giulia Region ~ € 1 M

Consip Framework Agreement "2" SW for BPO & Apps: the consortium led by Gpi equalled ~ € 28 M of direct orders to date

Lombardy Regional Contact Center € 280 M (70% Gpi) 6 years

SW for HR Management of Lombardy Region € 7 M (84% Gpi) 7 years

P&L: Strong Growth in FY22

€ M	FY22 pro forma	FY22	FY21
Revenue & other income	386.1	360.2	326.9
Adjusted Revenue1	355.6	329.7	298.1
EBITDA	61.8	54.2	49.8
EBITDA % on total revenue	16.0%	15.1%	15.2%
EBITDA % on adj. revenue	17.4%	16.4%	16.7%
EBIT	31.3	26.0	23.5
EBIT % on total revenue	8.1%	7.2%	7.2%
EBT	21.4	16.8	16.7
Net profit	13.4	9.9	11.3

Note: (1) Net of Temporary Consortia (RTI)

Revenue € 360.2 M +10.2% | 8.7% organic (pro forma €386.1 +18.1%)

•	SW	€ 140.5 M +19.5%
•	Care	€ 168.8 M +1.6%
•	Other	€ 50.8 M +18.0%

EBITDA € 54.2 M | 16.4% on adj. Revenue (pro forma €61.8M | 17.4% on adj. Revenue)

•	SW	€ 37.6 M	26.8% on adj. Revenue
•	Care	€ 6.5 M	4.7% on adj. Revenue
•	Other	€ 10.2 M	20.1% on tot. Revenue

EBIT € 26.0 M (pro forma € 31.3 M)

depreciation & amortisation and provisions € 28.2 M

Net Profit € 9.9 M (pro forma € 13.4 M ) tax impact € 6.9 mn (+ € 1.4 M ) net interest expenses € 9.2 ( + € 2.4 M)

Proposed dividend € 0.50 p.s.

Revenue Breakdown by SBA (€M)

• Software reported +19.5% thanks to Consip Framework Agreement Tenders for digitizing health care.

The acquisition of Tesi flows entirely into SBA Software, which would exceed € 166 M in revenue, consolidating its importance for Gpi, both in terms of revenue and margin.

• Care performed as forecasted, showing a slight increase revenue, linked to a slowdown of extraordinary activities for Covid 19 and the expiry of some contracts.
• Other SBAs performed above expectations, all three with a double digit strong growth:
  • Automation + 25.2%, thanks to the Italian retail pharmacies sector and to international growth.
  • Pay +20.7% through the extended adoption of ePayment systems
  • ICT +10.6% thanks to the development of existing contracts.
• Pro forma contribution of Tesi boosts total Revenue over € 386 M.

EBITDA Breakdown by SBA (€M)

• Software increased its EBITDA by € 4.6 M, which further grew by € 7.6 M when added up the pro forma consolidated EBITDA from Tesi.
• Care profitability slightly shrank because of higher corporate costs impacting the SBA.
• Other SBAs performed above expectations
  • Automation and ICT reported solid performance both in absolute terms and in percentage.
  • Pay inflationary pressures have resulted in a reduction of profit margins.
• Tesi's 12-month pro forma contribution tallies with a consolidated EBITDA margin of 16.0%.

Revenue Adj. and EBITDA by SBA FY22 (€ M)

• Software reported an increase both in Revenue and EBITDA with a slight reduction in margin, due to an increase in the incidence of corporate costs and of the cost of services. The pro forma brings the marginality of Software up to € 45 M and an EBITDA margin of 27.2% on adj. Revenue.
• Care profitability shrank because of higher corporate costs impacting the SBA.
• Automation reported an increase in profitability.

• ICT enhanced its profit margin achieving full operational efficiency.

• Pay the inflationary effect on raw materials has led to a slight decrease in profit margin.

• Increased corporate expenses have had an impact on the EBITDA margin: extraordinary operations (expenses for M&A), higher costs for Security and IT, besides an impact of inflation on some costs.

Financial Highlights FY22

CERVED Rating A3.1 equivalent to A- S&P, A3 Moody's, A-1 Fitch

€ M	FY22	FY21
Fixed assets	259.7	166.8
Net working capital	177.6	140.2
Other operating assets/(liabilities)	(45.8)	(45.3)
NET INVESTED CAPITAL	391.5	261.7
Shareholders' equity	248.9	106.2
Net Financial Indebtedness	142.6	155.4
TOTAL SOURCES	391.5	261.7

Fixed assets

investments (Tesi and VC "service tech sub-fund" included) investments in new innovative products and solutions

Net Working Capital (+) trade receivables € 43.4 M (+) inventories € 5.1 M

(-) trade payables € 9.9 M

Shareholders' equity

(-) dividends € 9.2 M (+) capital increase € 137.5 M

Net Financial Indebtedness

reflects the operating flows, the investments of the Group and the equity movements (see next slide)

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NFI Bridge

Competitive Ranking – Italian Top Players

Software BPO AtC (Business Process Outsourcing)

Fast Growing Markets of IT Software & Services in Health Care

Potential effects of NRRP on the Italian digital healthcare market

15

€ 5.8 bn

2021-2026 Funds dedicated to the digitalization of healthcare of which:

• € 3.6 bn for ICT
• € 1.0 bn for telemedicine
• € 1.2 bn for medical equipment
• € 0.07 bn for cybersecurity

Sources: Gartner Market Statistics

Strategic Pillars of the Business Plan 2022 – 2024

Strategic Pillars of the Business Plan 2022 – 2024

Significant M&A Track Record

M&A Guidelines

Become a Major European Player

will keep on investing in software companies both abroad and in Italy to expand its product portfolio

Focus on international software companies mainly operating in: Blood Management LIS with an EBITDA margin > 16%

Product Portfolio Evolution: Software Services Territories

Targets 2024

Appendix Featured Products

A New Architecture of Integrated Solutions

Patients

Technologies

Disease Management

conference system

Imaging (access, sharing and diagnostic assistance)

Telemonitoring (24h/7) with advanced Multiparametric medical devices

Remote diagnosis

23

ranks 5th on the global market of Blood transfusion sw

Blood Donor Centers Hospitals

''Vein-to-Vein'' process

A New Concept in Pharmacy Automation

RIEDL PHASYS

• ⚫ The fastest system on the market: 5 m/sec
• ⚫ Wireless: no cable
• ⚫ Manages products of various shapes
• ⚫ Multi Picking
• ⚫ Fully integrated and tailored
• ⚫ Positive air pressure ' No more dust '

Forward Thinking: Two Main Strategic Trajectories

		Population Health Management
1	Models and technologies for the continuity of care	Detect the demand for care, Regression models & clustering (AI)	Virtual Care • Telemedicine		Build and keep
		Patient Pathway (PDTA)		• IoT and Augmented Telemed • Audio Video Communication		connections with patients
		Diagnostic Imaging		• •	Telerehabilitation Patient Portal
		Big Data	Deep Learning		NLP & Semantics	Increase the

2

Intelligence

Algorithms, Pattern Recognition, Prediction Models

Processing and Semantic Inference with ontological foundations

in a functional and distinctive sense

Investment Quick Take

Intermonte SIM 19 April 2023 € 17.20 Outperform

Midcap | Tp Icap 17 April 2023 € 17.30 Buy

Shareholder structure

based on information available to Gpi on June 12th, 2023

IR Contact details

Via Ragazzi del '99, 13 - 38123 Trento T +39 0461 381515 investor.relations@gpi.it

Fabrizio Redavid C. +39 335 1035499 fabrizio.redavid@gpi.it

Lorenzo Giollo

C. +39 340 8223333 lorenzo.giollo@gpi.it

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.