Gvs — Investor Presentation 2023

Sep 25, 2023

FINANCIAL TARGETS 2023-2025

September 25th, 2023

Vertically integrated player with full scale filtration platform and proprietary know-how in membrane technology

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Combination of family business ethos with a highly experienced management team

Strong R&D focus based on quality obsession and proven process engineering capabilities as base for future growth

Long track record of organic growth and proven value accretive M&A strategy

Leading position in high margin niches, with strong barriers to entry and supported by secular trends

Superior profitability and strong cash generation

Superior brand awareness as testament of long-lasting relationships with a loyal and resilient customer base

Financial Targets 2023-2025

Key Highlights Financial Targets 2023-2025

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+4.5% – +5.5% SALES CAGR 2023-2025, driven by new products, commercial synergies and distribution channels widening

27.0% – 28.0% Adjusted EBITDA margin in FY 2025, with significant margin accretion supported by operating leverage and special projects

Constant Net Debt reduction, with 1.2-1.3x adjusted leverage ratio in 2025, driven by operating cash generation and tighter Net Working Capital control

Visible new products pipeline across divisions, coupled with additional registrations of recently introduced products in new geographies

Management team strengthening, with new senior hires to further support the future Company growth

+4.5-5.5% 2023-25 Sales CAGR, driven by volume growth 2023-25 Sales – Expected Contribution by Division

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(1) Mid point of the €425-430m FY2023 sales guidance

2023-25 Sales – Key Growth Drivers

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Product development, commercial synergies and distribution channels

PRODUCT DEVELOPMENT	• Completion of product range in existing market niches • Penetrate new/adjacent niches, with strong strategic rationale
GEOGRAPHICAL EXPANSION	• Opening of new distribution centres • Registration of existing products in new geographies
DISTRIBUTION CHANNELS WIDENING	• Increase the exposure to B2C channel through the direct sales to hospitals of selected product niches
COMMERCIAL SYNERGIES	• Extract commercial synergies from the newly acquired companies, through cross selling on the combined client base and leveraging on acquired brands awareness
MANAGEMENT STRENGTHENING	• Strengthening of the first line management, adding new senior hires with focus on marketing

2024-25 New Products and Registrations

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31 new products launch and 41 registrations in new markets

Special Projects – Adj. EBITDA impact

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Savings generated both by recent acquisitions and from organic perimeter

of which ~€9m related to recent M&A

Includes projects that will affect BUs acquired over the last 3 years: STT, HT (Italy and Mexico), RPB, Puerto Rico

Footprint optimization

Relocation of production lines and reorganization of operational activities to improve plants utilization

Projects	Adj. EBITDA(1)	CapEx (1)
8	~€8m	-

Efficiency / Continuous improvement

Specific activities aimed at maximizing production efficiency and costs saving on single business units

Projects	Adj. EBITDA(1)	CapEx (1)
11	~€4m	~€3m

Insourcing

Internalization of activities currently performed by third party suppliers, leveraging on Group's synergies generated by recent M&A acquisitions

Projects	Adj. EBITDA(1)	CapEx (1)
3	~€3m	-

2023-25 Profitability – Target and Drivers

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Operating leverage and special projects drive margin accretion

Adjusted NFP reduction driven by operating cashflow and NWC control 2023-25 Debt and Leverage Evolution

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€m ADJUSTED NET FINANCIAL POSITION – FY 2023 TO FY 2025 BRIDGE 2.7x – 2.8x ADJUSTED LEVERAGE RATIO 1.2x – 1.3x (265) – (285) Inventories reduction 27% tax rate ~7% of sales ~ (24) ~ (15) (155) – (175)

M&A Strategy Update

Recent M&A Rationale

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New products, market share increase, cross selling and industrial savings

	Penetrate the Chinese hospitals market
	Expand GVS product portfolio in the blood segment
	Cross-sell STT products to GVS international client base
	Streamline industrial operation (new combined production plants) and realise synergies

Strengthening presence in the medical device business, both components and assembled products

Expand high-margin product categories (i.e. pharmaceutical bags)

Geographical expansion through the existing GVS sales network

Optimize the industrial footprint and production costs

Recent M&A Performance

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Significant value creation from RPB, STT and Haemotronic acquisitions

M&A Strategy Update

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Main Focus on Healthcare & Life Sciences, selected add-ons in Safety

M&A RATIONALE	• Penetrate new/adjacent niches, with strong strategic rationale (product addition, access to know-how and technologies, market share increase, geographical expansion) • Leverage on same/similar production technology to maximise operation streamline and industrial synergies
TARGET SECTORS	• Further expansion in Healthcare and Life Sciences as key priority • Potential add-ons in Safety to further strengthen the product portfolio
FINANCING TOOLS	• Full access to capital markets tools (debt, equity and hybrids), on top of traditional banking channel, to be assessed depending on specific needs/market conditions • Paper exchange to be potentially considered on a case-by-case basis
PRICING AND LEVERAGE DISCIPLINE	• Rigorous pricing discipline to maximise value creation for shareholders • Balanced approach between short-term returns and long-term strategic rationale • Acquisitions to generate accretive returns on a defined hurdle rate within a 3Y horizon • Fully sustainable target leverage, in line with best market standards for listed companies

Disclaimer

Pursuant to art. 154-bis, paragraph 2, of the Italian Unified Financial Act of February 24, 1998, the executive in charge of preparing the corporate accounting documents at GVS S.p.A., Emanuele Stanco, declares that the accounting information contained herein correspond to document results, books and accounting records.

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This presentation contains certain forward-looking statements that reflect the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on GVS S.p.A.'s current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of GVS S.p.A. to control or estimate precisely, including changes in the regulatory environment, future market developments, fluctuations in the price, and other risks. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. GVS S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.

This presentation does not constitute a recommendation regarding the securities of the Company. This presentation does not contain an offer to sell or a solicitation of any offer to buy any securities issued by GVS S.p.A. or any of its subsidiaries, in Italy pursuant to Section 1, let t) letter (t) of Legislative Decree no. 58 of February 24, 1998, or in any other country or state.

The information contained in this presentation does not purport to be comprehensive and has not been independently verified by any independent third party. The reader should consult any further disclosures GVS may make in documents it files with the Italian Securities and Exchange Commission and with the Italian Stock Exchange.