Gpi Spa · MIL:GPI
Gpi Spa — Investor Day (April 2020)
48 slides from Gpi Spa's investor day presentation, Apr 16, 2020
Slide 1: Investor Day
INVESTOR DAY 501 AUDIO WEBCAST -— 16 APRIL 2020
Slide 2: GPI: a Global Partner for a healthy future
GPI: a Global Partner for a M&A guidelines healthy future Andrea Mora Fausto Manzana Vice President Chairman and CEO P.40 P.03 Overview and main results Q&As FY2019 P.46 Matteo Santoro Managing Director P.10 2020 - 2024 Strategic Business Plan Lorenzo Montermini Marketing Director P.15
Slide 3: GPI: a global partner for a healthy future
GPI: a global partner for a healthy future
Slide 4: The context: Healthcare
The context Healthcare HEALTHCARE: AN EVOLVING 2017 ITALY HEALTHCARE A PIVOTAL MARKET MARKET EXPENDITURE A segment that can impact a • demographic ageing and 155mld € country’s economic increased life expectancy (73% PUB - 27% PRIV) development, the keeping of • increased health costs public account
Slide 5: GPI the Healthcare partner
e GP! the Healthcare partner Partnering up with the health institutions to support the continuous improvement of their internal processes, so that they can provide accurate and efficient care pathways through bespoke software, services and technologies, that is our MISSION Being the leading partner
Slide 6: History of Growth and Leadership
History of Leadership International Uniqueness Quality of Growth footprint life > 30 years of 1st player in Italy: solutions used by integrated software, our work helps experience, services more than 2,200 technology and improve quality of management granting access customers in more service solutio
Slide 7: GPI worldwide
GPI worldwide ITALY > 40 branches SOLUTIONS WORLDWIDE > 60 countries HIS Automation Blood Bank
Slide 8: COVID-19 action taken and possible scenarios
COVID-19 action taken and possible scenarios COVID-19 emergency, amongst the main priorities action to protect the health of employees, collaborators, suppliers, partners and customers management of economic/financial implications relating to the business Two possible scenarios • emergency ends in t
Slide 9: GPI a Global Partner for a healthy future
GPI a Global Partner for a healthy future • The sustainability of the healthcare systems calls for a redesign of the assistance models and the use of digital technology • To invest in ICT for healthcare is to invest in our own health and that of future generations • Our ambition for the next five ye
Slide 10: Overview and main results FY2019
Overview and main results FY2019
Slide 11: Highlights
Highlights M&As • Region of Lazio contract start up : • Guyot Walser Informatique area Blood Bank,360 12 Local Health Authorities and Hospitals Single Booking healthcare facilities in France Centres (€72 M in 2 years + 1-year extension ) Regional Contact Centre ( €24 M in 1 year + 1-year extension )
Slide 12: GPI in brief
GPI in brief A history of steady growth Revenue €M +18.3% Vs 2018 EBITDA €M * • 2013 Orizzonte fund providing equity financing - First minibond issued. 179.9 203.7 240.9 • 2016 merger between GPI and the 26.1 28.6 32.2 SPAC CFP1. Start of trading in the stock market AIM Italia. • 2018 graduated from
Slide 13: Significant growth in 2019
Significant growth in 2019 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 ASAs: • Care +35.0% Adj. revenue (1) 223.3 192.9 • Other +21.2% • SW +1.2% EBITDA 32.2 28.6 (2) EBITDA % of adj. revenue 14.4
Slide 14: 2019 financial highlights
2019 financial highlights A3.1 CERVED Rating confirmed €M 2019 2018 A- S&P |A3 Moody’s | A-1 Fitch Net working capital Net working capital 91.3 75.6 €91.3 M (€75.6 M in 2018): • increase due to growth in revenues and the acquisition of Non-current assets 119.4 (1) 105.2 significant orders at year en
Slide 15: 2020-2024 Strategic business plan
2020 - 2024 Strategic business plan
Slide 16: Methodology guidelines
Methodology guidelines • Adherence to the Borsa Italiana guidelines in the document contents; • Bottom-up construction starting from the strategic indications given by the management > accountability of the managerial structure for the plan objectives; • Forecasts very much tied to market dynamics,
Slide 17: Strategic segmentation and business models
Strategic segmentation and business models
Slide 18: Strategic business areas
e Strategic business areas TECHNOLOGIES 50.6% = pay ee CG) Automation 4.3 ~~ : ® ic 4.90 5. Software 38,1 smn SERVICES 49.4% () Care Note: venues: referring to Spi
Slide 19: Supply lines
Supply lines Main Other ASAs Automated Hospital Pharmacy Automated Health Clinical Health Blood Pharmacy Pharmacy Design Industry Administration System Social Care & Tissue Bank Warehouse System Studio Warehouse Human Continuum Public Safety Resources Care Administration & Prevention DeskTop ICT Dat
Slide 20: Segmentation
Segmentation REVENUES by EBITDA by REVENUES by REVENUES by strategic business area strategic business area geographic area customer type* 12.5% 11.5% 8.3% 6.8% 8.8% 38.1% 20.4% 9.0% 68.1% 49.4% 74.5% 91.7% Software Care Other Software Care Other Italy Overseas H-Pub H-Pri NH-Pri NH-Pub * H-pub: publ
Slide 21: Focus on ASA software
Focus on ASA software Tenders win ratio** • 35% Adj. revenue €M EBITDA €M Supply lines Revenue predictivity • 50% Customer retention • 92% Average contract term 30% 35% • 1-3 years 24.2% Average value of tenders acquired 24.7% • 6-7 mln/€ year 10% Competitive position 10% 15% • 3rd player IT Clynica
Slide 22: Focus on ASA Care
Focus on ASA Care Tenders win ratio** • 40% Adj. revenue €M EBITDA €M Supply lines Revenue predictivity • 95% Δ +30% Customer retention 2% • 97% Average contract term • 4-6 years 6.4% Average value of tenders acquired • 10-15 mln/€ year 4.7% Competitive position • 1st operator IT 3.7 * 98% BPO (CUP)
Slide 23: Focus on other ASAs
Focus on other ASAs Automation Sales of HW for automated warehouses (approx. 87%) 2019 REVENUE Revenue €M EBITDA €M and maintenance and service fees (approx. 13%) • Retail Italy approx. 64% • Hospital Italy approx. 16%; • International Hospital & Retail approx. 20% 22.3% Δ +21% 38.3% ICT Desktop man
Slide 24: The customers
The customers +2,200 Public and private customers Hpub Hpri NHpub NHpri 2019 74.5% 2019 9.0% 2019 6.8% 2019 8.8% 2018 74.0% 2018 13.4% 2018 6.3% 2018 6.3% • Healthcare Authorities • Nursing homes, • Municipalities • Large-scale retail channel • Hospitals private clinics, etc. • Provinces • Banks • P
Slide 25: Reference market and competitive context
Reference market and competitive context
Slide 26: Market Analysis Software
Market Analysis Software Market value value of the global 2018 Healthcare IT software + services market $60 bn 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:
Slide 27: Market Analysis Software: market top players
Market Analysis Software Market top players Focus on Company Brief description healthcar Ranking e ICT solutions and related services for public and private healthcare providers. 1st ICT solutions for the segments: Through 5 top players finance, industry, telco&utilities dedicated 2nd 34% and PA.
Slide 28: Market Analysis Care
Market Analysis Care Market value & players > 28 M citizens reached N/A global market value of administrative services not Company Brief description Ranking available insofar as they are ICT solutions, administrative and 1st very heterogeneous services social-healthcare services for public and priva
Slide 29: Strategic intentions and action plan
Strategic intentions and action plan
Slide 30: Strategic-corporate intentions
Strategic-corporate intentions 01 02 03 04 05 EVER MORE GROWTH ITALY FROM FROM GLOBAL IN HEALTHCARE PRODUCTS/ PROVIDER PRIVATE SW MARKET SERVICES TO TO PARTNER Strong increase over HEALTHCA LEADERSHIP INTEGRATED Multi-business nature the BP period with the contribution of all RE Major regional and n
Slide 31: Strategic intentions ASA Software
Strategic intentions ASA Software 01. MARKET POSITIONING consolidation of the market position (up-selling and cross-selling), continuous participation in major tenders and strategic partnerships. • Rationalisation of the products portfolio • Technical-functional evolution of the GLOBALISATION/TARGET
Slide 32: Action plan ASA Software
Action plan ASA Software 01. UP-CROSS SELLING ON CUSTOMERS FROM M&As marketing and commercial strategy focussed on up/cross-selling towards customer base of solutions of recent acquisitions (M, HS, IL, S, etc.) • Average retention (’17-’19) 02. INTERNATIONAL SALES Pursuit of foreign commercial actio
Slide 33: Strategic intentions ASA Care
Strategic intentions ASA Care 01. CONSOLIDATION OF THE COMPETITIVE POSITIONING 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: - continuous participation in important tenders, - direct contract ac
Slide 34: Action Plan ASA Care
Action Plan ASA Care 01. EXTENSIVE PARTICIPATION IN TENDERS Participation in as many public tenders as possible; DEVELOPMENT OF TERRITORIAL RELATIONS 02. Aggregating multiple local contexts in a provincial manner or a vast area so as to promote the territory; • Average retention ‘17-19 97% 03. PROMO
Slide 35: Strategic intentions Other ASAs
Strategic intentions Other ASAs AUTOMATION AUTOMATION PRODUCT AND VALUE PROPOSITION INNOVATION THROUGH R&D OPERATIONS develop new technological • R&D solutions (e.g. automated basket/cabinet system for medical devices/cart kit engineering, etc.) and enter new • cross-selling from other ASAs (PAY, So
Slide 36: Action Plan Other ASAs
Action Plan Other ASAs AUTOMATION AUTOMATION training internal network, VR instruments, mktg budget increase for trade fairs and events, strengthening • Italy retail (H-PRI, NH-PRI) of the indirect sales network, focus on key accounts, analysis of new markets, development or acquisition of single do
Slide 37: Main economic and financial goals 2024
Main economic and financial goals 2024
Slide 38: 2024 economic-financial goals
2024 economic-financial goals Equal scope of consolidation as of 31/12/2019 2019 2024 REVENUE CAGR 2019-2024 > 4% 241.0 > 295.0 13.5% >15.0% EBITDA 82.8 ≤ 1xEBITDA NFP
Slide 39: 2024 Revenue and EBITDA
2024 Revenue and EBITDA ASA breakdown, equal scope of consolidation as of 31/12/2019 Revenue by strategic business area EBITDA by strategic business area Other 13.7% Other 14.4%
Slide 40: M&A Guidelines
O4 2020 - 2024 M&A Guidelines
Slide 41: Historic M&A process
e Historic M&A process 41 1988 - ont exablshed inOciober ACQUIRED Sintac (23%) ACQUIRED CONSOLIDATED Spid 165) Selmi (100%) Selin heath) INCREASED HOLDING IN systine 70%) ESTABLISHED ESTABLISHED cs 515) RC Ziti Tecnologia Ltda MADO (GPLAfrica Austral Sa 2016 ont ‘became ajoin-stock compary ACQUIRED
Slide 42: M&A Guidelines: Market
M&A Guidelines MARKET 1. Slow to decide and to change settings (ITA) 2. Software is a commodity with respect to the service M&As 3. Fragmentation (ITA)
Slide 43: M&A Guidelines: Integration
M&A Guidelines INTEGRATION IN-HOUSE TEAM M&As • 2 years for internal integration • Immediate costs of integration • 1 year for first savings
Slide 44: M&A Guidelines: Italy and Export targets
M&A Guidelines ITALY EXPORT 1. Products portfolio evolution 1. Structured software software/services/territories TARGET companies (€20-30 M (€1-10 M revenues) revenues) 2. Big players 2. Products portfolio evolution
Slide 45: M&A Guidelines: Resources
M&A Guidelines RESOURCES • BONDS • TRADITIONAL FINANCING • WARRANTS • SHARES/SHARES • Big players • Abroad
Slide 46: Q&As
Q&As
Slide 47: IR Contact details
IR Contact details Fabrizio Redavid Lorenzo Giollo Maria Antonietta Pireddu Mob. +39 335 1035499 Mob. +39 340 8223333 Via Bigli, 19 - 20123 Milan fabrizio.redavid@gpi.it lorenzo.giollo@gpi.it Tel. +39 02 45473883/4 m.pireddu@irtop.com Via Ragazzi del '99, 13 - 38123 Trento T +39 0461 381515 investor
Slide 48: 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