Gpi Spa · MIL:GPI
Gpi Spa — FY2023 Earnings Presentation
28 slides from Gpi Spa's earnings presentation, June 2024
Slide 1: FY23 Results Investor Presentation
FY23 RESULTS Investor Presentation June 2024
Slide 2: Healthcare: The Context
2 HEALTHCARE: THE CONTEXT A PIVOTAL MARKET AN EVOLVING it impacts a country’s MARKET economic development, • demographic ageing and the management of public increased life expectancy finances and its very social • increased health costs (chronic) cohesion • shortage of resources and healthcare profe
Slide 3: The New Demand for Care
3 THE NEW DEMAND FOR CARE Challenge: making the health systems sustainable, Driven by factors such as: limiting spending while improving the changes in demographics quality of service advancements in medical technology shifts in societal attitudes towards health specific events like pandemics or hea
Slide 4: The Transformative Power of Digital Health Solutions
4 The Transformative Power of Digital Health Solutions Current environment Digital health solution Effects of streamlining Resources optimisation and Shortage of healthcare AUTOMATION impact on average professionals hospitalisation Complex and intricate Process facilitation and MANAGEMENT SOFTWARE c
Slide 5: Our Innovation for a Sustainable Better Future
5 OUR INNOVATION FOR A SUSTAINABLE BETTER FUTURE Population Health Management The true potential of Gpi 17.5 Artificial Intelligence One Health is to realise technological advances and convey a culture of innovation. 167.1 Augmented Epidemiology Virtual Care Gpi fosters awareness of the evolutionary
Slide 6: 4 Strategic Business Areas
6 4 Strategic Business Areas Software Care € 227.4 M Revenue € 163.8 M Revenue € 167.2 M EBITDA € 165.9 M EBITDA 29.6% EBITDA margin 3.7% EBITDA margin € 463 M Revenue p.f. € 90 M EBITDA p.f. Modular and integrated information systems: Supporting the National Healthcare System: • 34% Clinical – HIS
Slide 7: 9,000 Customers in 70 Countries
7 9,000 Customers in 70 Countries Health Public 76% • Healthcare Authorities • Hospitals • Public providers (in-house) • Regions, Provinces Health Private 12% • Nursing homes • Private clinics • Pharmacies Non Health Public 5% • Municipalities • Provinces • Regions Non Health Private 7% • Telco • Ot
Slide 8: Competitive Positioning in Italy
8 COMPETITIVE POSITIONING IN ITALY Software BPO CUP (AtC Business Process Outsourcing) Focus Addressable market Company Company HC > € 1.35 B ✓ 5 Top Players ✓ with HC 35%1 ~50% dedicated BU subsidary Gpi has a potential reach of with HC dedicated BU 29 million citizens Source: Accenture Note 1: The
Slide 9: Software and IT Services Markets and Trends
Software and IT Services Markets and Trends CAGR 2021 - 2027 CAGR 21-27 World 13.8% 2.3 Italy 12.3% | NRRP €B 2.1 1.8 France 13.2% | Ségur de 1.6 2.4 la Santé 1.5 2.1 1.3 1.9 1.7 1.2 1.5 1.3 1.1 4.7 DACH 14.3% | Government 4.1 3.2 3.6 incentives 2.5 2.8 2.1 Freepik 2021 2022 2023 2024 2025 2026 2027
Slide 10: Consolidating the Italian Leadership
10 CONSOLIDATING THE ITALIAN LEADERSHIP Since 2021 the Italian market has experienced a trend of tendering procedures becoming increasingly concentrated within a national central procurement body (Consip). 17.5 To date, Consip has launched four nationwide tenders with a total maximum value of €3.3 b
Slide 11: Increasing International Footprint
11 INCREASING INTERNATIONAL FOOTPRINT Organic growth: Gpi won several important contracts. +105% Automation and Software (mainly Blood Management Systems) YoY Export 23.6% 2023 pro forma Italy 76.4% Mapchart SBA Software SBA Software Significant increase of Improvement of the + exceeded 52% of excee
Slide 12: Milestones of a Steady Growth: Pro Forma Revenue and EBITDA
12 Revenue 2023 EBITDA 2023 MILESTONES OF A STEADY GROWTH € 477.8 M pro forma € 96.9 M pro forma To allow comparison, all these figures 20.3% include Argentea. The pro forma 2022 values account for the 12-month contribution of Tesi, 477.8 16.0% totalling €30M in revenue and €8.6M in 15.0% 96.9 EBITD
Slide 13: Milestones of a Steady Growth: Without Argentea
13 Revenue 2023 EBITDA 2023 MILESTONES OF A STEADY GROWTH € 463.1 M pro forma € 90.2 M pro forma WITHOUT ARGENTEA To ensure consistency for comparison IFRS 5 19.5% with FY23, the FY22 financial statements have been revised, including the 18.4% application of IFRS 5 'Non-current Assets Held for Sale
Slide 14: Double Digit FY23 Growth (IFRS 5)
14 DOUBLE DIGIT FY23 GROWTH (IFRS 5) Revenue € 433.4 M +24.9% | 11.4% organic SBAs Breakdown €M FY23 FY22(1) • SW € 227.4 M +61.8% • Care € 163.8 M -3.0% Revenue & other income 433.4 347.0 • Other € 42.2 M +12.1% Adjusted Revenue (2) 408.6 316.6 EBITDA: € 79.8 M +64.3% | margin 19.5% on adj. Revenue
Slide 15: Revenue Breakdown by Strategic Business Area
15 REVENUE BREAKDOWN BY Strategic Business Area with IFRS 5 without Argentea 52.5% 55.5% SBA Software reported a revenue increase of 61.8% 48.6% (+€86.9M), mainly attributable to the impacts of acquisitions (Evolucare +€22.2M and Tesi +€23.1M), % of combined 40.5% 37.8% 35.4% Revenue as well as orga
Slide 16: EBITDA Breakdown by Strategic Business Area
16 EBITDA BREAKDOWN BY Strategic Business Area with IFRS 5 without Argentea 19.5% 18.4% EBITDA margin 14.0% 90.2 €M SBA Software brings in an EBITDA growth of €30.4M year-over-year, with additional €10M when adding the 79.8 remaining 7/12 of Evolucare's pro forma contribution. The SBA sets a remarka
Slide 17: Financial Highlights FY23
17 Financial Highlights FY23 CERVED Rating A3.1 equivalent to A- S&P, A3 Moody’s, A-1 Fitch Fixed Assets € mn FY23 FY22(1) Increase mainly due to investments in equity stakes (Evolucare) Net Working Capital Fixed assets 431.2 268.9 (+) increase in trade receivables and contracts assets € 63.7 M; (+)
Slide 18: Net Debt Bridge
18 Net Debt Bridge M&A: 172.7 364.9 Tesi 22.2 Evolucare 108.8 + 38.8 net debt Other 2.9 Net Debt Covenant 3.2 x EBITDA p.f. 274 Capex: tangible 18.8 Net Debt €M intangible 32 1.4 including Argentea 13.2 o/w R&D ~ 29 14.4 cash in 44.7 €266M 142.6 (79.8) Increase in financial 4.9 expenses due to the 5
Slide 19: Targets Confirmed: Strategic Business Plan
19 ON THE PATH TO BECOME A MAJOR PLAYER Transformational ORGANIC Acquisitions: GROWTH TESI and EVOLUCARE TARGETS CONFIRMED Strategic Business Plan 2022-2024 Revenue > €500M EBITDA margin > 17% ARGENTEA: divestment finalised €99M cashed in + €6M earn out Financial Covenants ~ €83M Capital Gain Respec
Slide 20: M&A 2017-2023
20 € 400 M M&A 2017-2023 Many more companies acquired before 2016, including Argentea Evolvo Riedl
Slide 21: In a Nutshell
21 IN A NUTSHELL € 463 M € 90 M € 400 M € 266 M Revenue p.f. EBITDA p.f. M&A Net Debt 2017-2023 net of Argentea cash in (2024) FULLY ON TRACK TO BECOME A EUROPEAN MAJOR PLAYER • SOLID GROWTH in both REVENUE and EBITDA • STRONG INTERNATIONAL IMPULSE • STRATEGIC for the Healthcare Systems • SOUND and
Slide 22: Investment Quick Take
22 Investment Quick Take Shareholder structure based on information available to Gpi as at 12 April 2024 Leadership and Uniqueness GPI IN THE STOCK MARKET ISIN: IT0005221517 FM (Manzana Family) Ticker: GPI:IM 34.0% CDP Equity Price 7 June 2024 € 12.24 47.2% Growth and Visibility Treasury Shares Ordi
Slide 23: IR Contact Details
23 IR Contact details Via Ragazzi del '99, 13 - 38123 Trento t. +39 0461 381515 investor.relations@gpi.it Fabrizio Redavid Lorenzo Giollo m. +39 335 1035499 m. +39 340 8223333 fabrizio.redavid@gpi.it lorenzo.giollo@gpi.it
Slide 24: Appendix: Financial Statements FY23
Appendix Financial Statements FY23
Slide 25: Consolidated Income Statement
25 CONSOLIDATED INCOME STATEMENT 2022 2023 in € thousands restated* Revenue 424,615 343,795 Other income 8,809 3,211 Total revenue and other income 433,424 347,006 Raw materials and consumables (20,282) (13,932) Service costs (105,200) (90,837) Personnel expense (220,622) (188,284) Amortisation, dep
Slide 26: Consolidated Statement of Financial Position
26 31 December 2022 CONSOLIDATED STATEMENT OF FINANCIAL POSITION, in € 31 December 2023 restated* thousands Assets Goodwill 232,558 99,883 Other intangible assets 138,145 121,385 Property, plant and equipment 48,396 34,484 Equity-accounted investments 453 111 Non-current financial assets 10,378 11,5
Slide 27: Consolidated Statement of Cash Flows
27 STATEMENT OF CASH FLOWS CONSOLIDATED 2022 2023 in € thousands restated* Cash flows from operating activities Profit for the period 6,776 9,528 Adjustments for: - Depreciation of property, plant and equipment 9,786 6,636 - Amortisation of intangible assets 29,797 19,371 - Amortisation of contract
Slide 28: Disclaimer
28 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 busi