Gpi Spa · MIL:GPI
Gpi Spa — Investor Presentation (June 2020)
38 slides from Gpi Spa's investor presentation, June 2020
Slide 1: Investor Presentation June 2020
INVESTOR PRESENTATION JUNE 2020
Slide 2: The context: Healthcare
The context Healthcare HEALTHCARE: AN EVOLVING 2017 ITALY HEALTHCARE A PIVOTAL MARKET MARKET EXPENDITURE A segment that can impact a country’s economic • demographic ageing and increased life expectancy 155mld € (73% PUB - 27% PRIV) development, the keeping of • increased health costs public account
Slide 3: GPI the Healthcare partner
e GP! the Healthcare partner Partnering up with the health institutionsto 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 i
Slide 4: GPI in figures
GPI in figures A history of steady growth Revenue €M +18.3% Vs 2018 EBITDA €M * • 2013 Orizzonte fund providing equity financing - First minibond issued. • 2016 merger between GPI and the SPAC CFP1. Start of trading in the stock market AIM Italia. 2017 2018 2019 2017 2018 2019 • 2018 graduated from
Slide 5: Highlights
Highlights History of Leadership International Uniqueness Quality of Growth footprint life > 30 years of 1st player in Italy: solutions used by integrated our work helps experience, services more than 2,200 software, improve the quality management granting access customers in more technology and of
Slide 6: 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 7: Strategic segmentation and business models
Strategic segmentation and business models
Slide 8: Strategic Business Areas
Strategic Business Areas TECHNOLOGIES 50.6% Pay 2.8 Automation 4.8 ICT 4.9 Software 38.1 SERVICES 49.4% Care Note: % revenues for SBA out of total revenues referring to FY 2018 8
Slide 9: Supply lines
Supply lines Main SBAs Other SBAs Automated Hospital Pharmacy Automated Health Clinical Health Blood Pharmacy Pharmacy Design Industry Administration System Social Care & Tissue Bank Warehouse System Studio Warehouse Automation Human Continuum Public Safety Resources Care Administration & Prevention
Slide 10: Segmentation
Segmentation REVENUES by EBITDA by REVENUES by REVENUES by strategic business area strategic business area geographic area customer type* 10% * H-pub: public healthcare customers; H-Pri: private healthcare customers, NH-Pub: public non-healthcare customers; NH-Pri: private non-healthcare customers 1
Slide 11: Focus on SBA software
Focus on SBA software Tenders win ratio** • 35% Adj. revenue €M EBITDA €M Supply lines Revenue predictivity • 50% Customer retention • 92% Average contract term • 1-3 years Average value of tenders acquired 90.3 90.8 • 6-7 mln/€ year Competitive position 22.3* 21.9 • 3rd player IT 2018 2019 2018 201
Slide 12: Focus on SBA Care
Focus on SBA Care Tenders win ratio** • 40% Adj. revenue €M EBITDA €M Supply lines Revenue predictivity • 95% Δ +30% Customer retention • 97% Average contract term • 4-6 years Average value of tenders acquired 102.5 • 10-15 mln/€ year 6.4% 78.7 4.7% Competitive position 6.6 • 1st operator IT 3.7 * 2
Slide 13: Focus on other SBAs
Focus on other SBAs 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% Δ +21% ICT Desktop management serv
Slide 14: 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 15: GPI worldwide
GPI worldwide ITALY > 40 branches SOLUTIONS WORLDWIDE > 60 countries HIS Automation Blood Bank 15
Slide 16: Overview and main results FY2019
Overview and main results FY2019
Slide 17: Highlights
Highlights M&As • Haemonetics (assets): U.S. global company listed on the NYSE (Blood Bank) | 11,3 M $ Rev. |35% EBITDA | • Region of Lazio contract start up – 18 lots - and 100 clients USA (May 2020) Regional Contact Centre: • Medinfo Group: 3 companies - France, Tunisia, Chile €72 M in 2 years + 1
Slide 18: 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 SBAs: • Care +35.0% Adj. revenue (1) 223.3 192.9 • Other +21.2% • SW +1.2% EBITDA 32.2 28.6 (2) X.X X.X EBITDA % of adj. reve
Slide 19: 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 20: Target market and competitive environment
Target market and competitive environment
Slide 21: 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 22: Market Analysis Software: Top market players
Market Analysis Software Top market players Focus on Company Brief description Ranking healthcare 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 and PA. healthcar
Slide 23: 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 because of its ICT solutions, administrative and 1st heterogeneous nature - social-healthcare services for public and private healthc
Slide 24: Strategic intentions
Strategic intentions
Slide 25: 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 26: Strategic intentions SBA Software
Strategic intentions SBA Software 01. MARKET POSITIONING consolidation of the market position (up-selling and cross-selling), continuous participation in major tenders and DEVELOPMENT DRIVERS strategic partnerships. • Average retention (’17-’19) 91% GLOBALISATION/TARGET SHIFTING 02. increase in the
Slide 27: Strategic intentions SBA Care
Strategic intentions SBA Care 01. CONSOLIDATION OF THE COMPETITIVE POSITIONING consolidate the market share on the H-PUB target on a national level and the DEVELOPMENT DRIVERS current territorial presence (approx. 50% of the domestic market) through: - continuous participation in important tenders,
Slide 28: Strategic intentions Other SBAs
Strategic intentions Other SBAs DEVELOPMENT DRIVERS AUTOMATION AUTOMATION PRODUCT AND VALUE PROPOSITION INNOVATION THROUGH R&D OPERATIONS develop new technological • Italy retail (H-PRI, NH-PRI) solutions (e.g. automated basket/cabinet system for medical devices/cart kit engineering, etc.) and enter
Slide 29: Main economic and financial targets 2024
Main economic and financial targets 2024
Slide 30: 2024 economic-financial targets
2024 economic-financial targets 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 Million Euros 30
Slide 31: 2024 Revenue and EBITDA without M&As
2024 Revenue and EBITDA without M&As ASA breakdown, equal scope of consolidation as of 31/12/2019 Revenue by strategic business area EBITDA by strategic business area 31
Slide 32: M&A Guidelines
M&A Guidelines
Slide 33: Historic M&A process
e Historic M&A process ACQUIRED Spid (16%) Solin (heath) INCREASED HOLDING IN Sysline 70%) ESTABLISHED RG ‘MAO AcQuinED Sintae (23%) CONSOLIDATED Selfnait (100%) SOLVE. (1008) it (100%) Skyline (100%) ESTABLISHED CS (51%) Ziti Tecnologia Lida GPLAticn Austral Sa ‘ACQUIRED volvo GPI s0%) Lombardia Co
Slide 34: M&A Guidelines
M&A Guidelines ITALY EXPORT 1. Product portfolio evolution 1. Structured software software/services/territories TARGET companies (€20-30 M (€1-10 M revenues) revenues) 2. Big players 2. Product portfolio evolution 34
Slide 35: M&A Guidelines
M&A Guidelines RESOURCES • BONDS • TRADITIONAL FINANCING • WARRANTS • SHARES/SHARES • Big players • Abroad 35
Slide 36: Investment Attractiveness
Investment Attractiveness Leadership and Uniqueness GPI IN THE STOCK MARKET Bloomberg: GPI:IM 15,909,539 Ordinary Shares (ISIN: IT0005221517) Price: 7.76 € (19 June 2020) Growth and Visibility Capitalisation: 123.5 M€ (19 June 2020) ANALYST COVERAGE – Target price Technology and Service Intermonte S
Slide 37: IR Contact details
IR Contact details Fabrizio Redavid Lorenzo Giollo Maria Antonietta Pireddu Mob. +39 335 1035499 Mob. +39 340 8223333 Via C. Cantù, 1 - 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 invest
Slide 38: 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