Gpi Spa · MIL:GPI
Gpi Spa — Investor Presentation (November 2022)
45 slides from Gpi Spa's investor presentation, November 2022
Slide 1: Investor Presentation November 2022
INVESTOR PRESENTATION NOVEMBER 2022
Slide 2: Agenda
Agenda Group Overview 2022 – 2024 Strategic v Business Plan Guidelines M&A Guideline, Financial Targets & Capital Increase 2
Slide 3: Vision, Mission, Values
VISION > 30 years of experience, History of To be the protagonists in the path of Growth management team with a track record of internal growth and technological and sustainable M&As transformation of prevention and care processes for healthcare and well-being of International solutions used by 2,70
Slide 4: A History of Steady Growth FY21
A History of Steady Growth FY21 70% + 20.6% YoY + 12.5% 327 Recurring fees YoY on adj. Revenue 16.7% 271 on tot. Revenue 15.2% 241 16.0% 14.8% 14.4% 13.4% 50 € 100 m M&A deals 40 in the last 5 years 32 NFI 31.12.2021 € 155.4 m FY 19 FY 20 FY 21 FY 19 FY 20 FY 21 Revenue € m EBITDA € m 4
Slide 5: Half-year Results H1 22
Half-year Results H1 22 FY 2022 Guidance: Revenue > € 345 m EBITDA > € 52 m 70% + 11.2% H1oH1 + 29.6% 169 Recurring fees H1oH1 152 on adj. Revenue 11.0% on tot. Revenue 10.3% 10.2% 117 9.3% 9.7% 8.9% 17 € 100 m M&A deals 14 in the last 5 years 11 NFI 30.06.2022 € 170.5 m H1 20 H1 21 H1 22 H1 20 H1 2
Slide 6: Revenue and EBITDA Breakdown H1 22
Revenue and EBITDA Breakdown H1 22 + 1.9% Revenue breakdown Revenue breakdown H1oH1 EXPORT by SBA H122 14.0% by geography H122 9.4% Strategic Business Area 34.1% H122 € 168.9 m SW 51.9% ITALY Care 90.6% Others EBITDA breakdown Revenue breakdown H by SBA H122 Public 21.9% by customer FY21 81.3% H122
Slide 7: Supply Lines
Supply Lines • hospital information system • health social care • health administration Software • blood management system • business intelligence, data analytics main SBAs • other 86% of total revenue • BPO health care administrative svc. (AtC,..) • telemedicine Care • other • automated pharmacy wa
Slide 8: Agenda
Agenda Group Overview 2022 – 2024 Strategic Business Plan Guidelines v M&A Guideline, Financial Targets & Capital Increase 8
Slide 9: Key Drivers of the Change in the Global Health Care Market (1/2)
Key Drivers of the Change in the Global Health Care Market (1/2) Demography and socio-economic Consumers expectations Technological Environment factors Consumers wish for convenience, Accelerating technological innovations Ageing population requires even more efficiency and personalized services are
Slide 10: Key Drivers of the Change in the Global Health Care Market (2/2)
Key Drivers of the Change in the Global Health Care Market (2/2) Laws and Regulations New Market Participants Operational transformation New regulations on interoperability Big tech companies look at the The current shortage of human healthcare industry as a new market to resources in the healthcare
Slide 11: Digital Health: the Solution for the Health Care Market
Digital Health: the Solution for the Health Care Market Current environment Digital health solution Effects and streamlining Resources optimization and Shortage of medical staff AUTOMATION impact on average (doctors, nurses) hospitalization Complex and intricate Process facilitation and MANAGEMENT S
Slide 12: Fast Growing Global and European Markets of IT Softwares and Services in Health Care
Fast Growing Global and European Markets of IT Softwares and Services in Health Care Global sales ($ bn) European Sales ($ bn) +12.2% 112.5 +12.2% 35.7 100.2 31.4 89.0 27.9 79.7 59.1 25.3 69.4 52.0 21.5 45.9 41.5 35.7 48.2 53.4 38.2 43.1 33.7 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Rest of
Slide 13: Digital Healthcare & BPO in Italy
Digital Healthcare & BPO in Italy Potential effects of NRRP on the Italian digital healthcare market CAGR $ bn 21-24 € 5.8 bn +10.9% 2021-2026 Funds dedicated to the SW & IT Services1 2.3 digitalization of healthcare of which: BPO (Business Process Outsourcing) 2.0 Telemedicine2 1.8 • € 3.6 bn 1.7 1
Slide 14: Competitive Ranking – Italian Top Players
Competitive Ranking – Italian Top Players Software BPO AtC (Business Process Outsourcing) Company Focus on Addressable market Company HC ca. € 1 bn ✓ 5 Top Players ✓ Through 35%1 ~50% dedicated healthcare division Reply’s subsidiary Through GPI has a potential reach dedicated healthcare division of
Slide 15: Strategic Pillars of the Business Plan 2022 – 2024
Strategic Pillars of the Business Plan 2022 – 2024 Values, Mission and Vision 1. 2. 3. 4. Global Leader Interconnected Innovative and Secure B. Structure, Processes and Governance A. Sustainability, Impact, Brand and Reputation 15
Slide 16: Strategic Initiatives
Strategic Initiatives Increase in turnover Rationalization and Global market leader Software in Italy innovation of portfolio in Blood Become national reference Care & Virtual Consolidating BPO’s position in Development of a telemedicine operator and enabler of Care the public and private market dis
Slide 17: Strategic Pillars of the Business Plan 2022 – 2024
Strategic Pillars of the Business Plan 2022 – 2024 • Develop and implement a sustainability plan with particular reference to the social component, in the field of Sustainability, healthcare, measuring potential impacts through defined metrics (SDG n 3 Good Health Agenda 2030 UN) A Impact, Brand and
Slide 18: Software
Software Strategic Initiatives • Further strengthen the presence on the national market by evolving its offer to cover all market needs for the digital transformation of healthcare and through participation in public tenders Increase in turnover in Italy • Consolidate technology platforms and produc
Slide 19: Care & Virtual Care
Care & Virtual Care Strategic Initiatives • Public market consolidation. The market is under construction due to the potential for outsourcing of customer services and thanks to the COVID-19 push • Increasing private market share. Because of longer NHS waiting times due to the health emergency, serv
Slide 20: ICT, Automation & Pay
ICT AUTOMATION PAY ICT, Automation & Pay Strategic Initiatives • Become an End-to-End partner for Cybersecurity by offering consulting services through to service delivery New End-to-End approach for Cybersecurity • R&D investment for new product development and increased competitiveness in non-auto
Slide 21: Agenda
Agenda Group Overview 2022 – 2024 Strategic v Business Plan Guidelines M&A Guideline, Financial Targets & Capital Increase 21
Slide 22: M&A Guidelines
M&A Guidelines Become a Major European Player expects to keep on investing in software companies both abroad and in Italy to expand the product portfolio Focus on international software companies mainly operating in: Blood Management LIS HR /PA with an EBITDA margin > 16% Product Portfolio Evolution
Slide 23: Significant M&A Track Record
Significant M&A Track Record 23
Slide 24: Acquisition of Tesi Group
Acquisition of Tesi Group The Acquisition LIS & RIS/PACS Acquisition of Put & Call Blood 65% of the share options on the SOFTWARE Clinical activities capital remaining 35% Solid customer base 24.9 Closing 29/11/2022 >150 >30 >200 Clinical imaging 9.1 Laboratories Transfusional Enterprise centres lab
Slide 25: Capital Increase for M&A and Organic Growth
Capital Increase for M&A and Organic Growth Issuer Transaction type Amount Capital increase Pre-emptive € 140 m Subscription rights Subscription price Commitments The smallest between: Subscriptions weighted average VWAPs for traded volumes in CDP Equity € 70 m FM Srl € 35 m the 6 months preceding t
Slide 26: Financial Targets 2024
Financial Targets 2024 Including Capital Increase of € 140 mn €m 2021 2024 Organic Revenues > 420 mn CAGR 2021-2024 > 8.5% REVENUES 327 > 500 Organic & inorganic Revenues > 500 mn CAGR 2021-2024 > 15% EBITDA 15.2% > 17.0% Margin NFI1 3.1 X EBITDA < 2.5 X EBITDA pro forma2 26 Notes: (1) NFI includes
Slide 27: Shareholder Structure and Voting Rights
Shareholder Structure and Voting Rights Current Shareholder structure Post - Capital increase Shareholder structure1 Institutional tranche 8.9% FM srl (Manzana Family) FM srl (Manzana Family) 34.9% 40.4% CDP Equity Treasury Shares 47.0% Market 59.1% Treasury Shares 0.3% 0.5% Market 17.7% Current vot
Slide 28: Appendix H1 22
28 Appendix H1 22 Goi
Slide 29: Solid Growth H1 22
Solid Growth H1 22 Revenue € 168.9 m +11.2% €m H1 22 H1 21 thanks to the contribution of the SBAs: • SW € 57.7 m +11.1% 10.5% organic Revenue & other income 168.9 151.8 • Care € 87.6 m +9.1% Adjusted Revenue1 158.1 138.1 • Other € 23.6 m +20.6% EBITDA: € 17.3 m | 11.0% on adj. Revenue EBITDA 17.3 14
Slide 30: Financial Highlights H1 22
Financial Highlights H1 22 €m 30 31 Non-current assets Jun. Dec. • investments in new innovative products and solutions 2022 2021 (developed in-house), mainly related to SBA Software • € 5 m investment in venture capital Non-current assets 174.4 166.8 “service tech sub-fund” of CDP venture capital s
Slide 31: Net Debt
Net Debt Net Debt According to New ESMA Guideline No. 39, issued on March 4th 2021 Investments Tot. € 13.4 m Intangibles € 7.5 m of which € 5.3 m R&D Tangibles € 2.8 m M&A € 3.1 m VC € 5.0 m 31
Slide 32: Telemedicine & Electronic Medical Records – CONSIP Framework Agreement
1 - CONSIP Framework Agreement – Gpi Leads the Number-One Consortium* * Gpi (ca. 37%), Accenture, Almaviva, AGFA-Gevaert, Vodafone, Iqvia Solutions Italy, Nuvyta, Kiranet, Abintrax, Biomedical Computering Systems TELEMEDICINE & ELECTRONIC MEDICAL RECORDS € 900 m (D.L. 146/2021) including € 100 M of
Slide 33: Software H1 22
Software H1 22 Modular and integrated information systems: • Hospital Information System (HIS) 49% • Health Social Care • Blood transfusion & tissue bank • Business Intelligence, Data analytics Recurring fees 2° player ITA + 11.3% H1oH1 on adj. Revenue 19.7% 1-3 years Average contract length on Reve
Slide 34: Care H1 22
Care H1 22 Broad offer of services such as: • Healthcare administration services 91% • Healthcare services (reception and diagnostic facilities) • Telemedicine and home telecare services Recurring fees + 9.1% 1° player ITA H1oH1 4-6 years Average contract length + 31.7% 3.5% 3.0% 2.9% on adj. Revenu
Slide 35: Other SBAs H1 22
Other SBAs H1 22 + 34.6% 19.9% H1oH1 7.2 AUTOMATION 4.7 5.3 14.1% Automated warehouse sales, 9.2% 1.4 maintenance and service fees 0.7 • Retail Pharmacies 0.4 • Hospital Pharmacies • Wholesaler and other industries H1 20 H1 21 H1 22 H1 20 H1 21 H1 22 Revenue € m EBITDA € m PAY + 17.0% 28.3% 26.7% eP
Slide 36: Appendix FY21
36 Appendix FY21 Goi
Slide 37: Solid Growth FY21
Solid Growth FY21 Revenue € 326.9 m +20.6% | 16.2% organic €m FY21 FY20 thanks to the contribution of the SBAs: • SW € 117.6 mn +14.6% Revenue & other income 326.9 271.0 • Care €166.2 mn +25.4% Adjusted Revenue1 298.1 250.9 • Other € 43.1 mn +20.1% EBITDA: € 49.8 m | 16.7% on adj. Revenue EBITDA 49.
Slide 38: Financial Highlights FY21
Financial Highlights FY21 €m Non-current assets FY21 FY20 Restated The increase in Non-current is linked to the investments, including the acquisition of Medinfo and R&D Non-current assets 166.8 158.4 Net Working Capital The increase is due to the rising amount of receivables, Net working capital 14
Slide 39: Software FY21
Software FY21 Modular and integrated information systems: • Hospital Information System (HIS) +15.5% • Health Social Care • Blood transfusion & tissue bank 49% • Business Intelligence, Data analytics 116.8 21,9 2° player ITA 101.1 Recurring fees 1-3 years Average contract length 50% tenders win-rati
Slide 40: Care FY21
Care FY21 Broad offer of services such as: • Healthcare administration services +25.4% 138.2 • Healthcare services (reception and diagnostic facilities) • Telemedicine and home telecare services 91% • Other 113.9 21,9 1° player ITA Recurring fees 4-6 years Average contract length 45% tenders win-rat
Slide 41: Other SBAs FY21
Other SBAs FY21 AUTOMATION Automated warehouse sales, +20% maintenance and service fees • Retail Pharmacies 43.1 • Hospital Pharmacies • Wholesaler and other industries 35.8 14.0 Automation PAY 11.9 ePayment services POS rental and related software 11.3 Pay • Large-scale Retail 8.0 • Local PA 9.0 2.
Slide 42: A New Architecture of Integrated Solutions
A New Architecture of Integrated Solutions Threshold Values and Alert Structured Interaction with Patients Monitoring Dashboard Proactivity and Care IoT – Sensors – Dedicated Apps Intelligent Cloud Management Dataflow Monitoring Direct Interaction with Patients Technologies for Enabling Disease Pati
Slide 43: Investment Attractiveness
Investment Attractiveness Leadership and Uniqueness GPI IN THE STOCK MARKET ISIN: IT0005221517 Ticker: GPI:IM Price 15 Nov. 2022 € 13.50 Growth and Visibility Ordinary Shares 18,260,496 Capitalisation € M 247 Technology and Service ANALYSTS’ COVERAGE – Target price Banca Akros 15 Sept. 2022 € 17.50
Slide 44: IR Contact details
IR Contact details Via Ragazzi del '99, 13 - 38123 Trento T +39 0461 381515 investor.relations@gpi.it Fabrizio Redavid Lorenzo Giollo C. +39 335 1035499 C. +39 340 8223333 fabrizio.redavid@gpi.it lorenzo.giollo@gpi.it 44 - Maggio 2018
Slide 45: Disclaimer
Disclaimer The material in this presentation was prepared by GPI S.p.A. ("GPI” or the “Company”) without any paragraph 2, letters a) to d) of the Order; and (C) other persons to whom this presentation can be form of independent verification; it is general, basic information about the current busines