Gpi Spa · MIL:GPI
Gpi Spa — FY2019 Earnings Presentation
28 slides from Gpi Spa's earnings presentation, April 2020
Slide 1: Investor Presentation Full Year 2019 Results
Investor Presentation Full Year 2019 Results April 2020
Slide 2: The Health Care Background
The Health Care Background HEALTH CARE: A CHANGING MARKET HEALTH CARE EXPENDITURE A LINCHPIN MARKET • aging and life expectancy Italy 2017 able to influence the economic • chronic diseases 155 B€ growth of a Country, to keep • urbanization (73% public- 27% private) grip on public finances and • shor
Slide 3: GPI: A History of Growth, The Healthcare Partner
GPI A History of Growth 30 + years of experience, organic and M&A growth with an The Healthcare Partner excellent track-record of management. Leadership MISSION 1° player in Italy: Access to Care services We are an international group, partnering up 3° player in Italy: software solutions for health-
Slide 4: Strategic Business Units
STRATEGIC BUSINESS UNITS Total Revenue Share TECHNOLOGIES 50.6% Software 38.1% ICT 4.9% SERVICES Automation 4.8% 49.4% Pay 2.8% Care Notice: % SBU’s revenue to total FY 2019 revenue 4
Slide 5: GPI in figures
GPI in figures A History of Steady Growth REVENUE M€ EBITDA M€ * +18.3% • 2013 Orizzonte equity fund Vs 2018 invested in GPI - First minibond issued. • 2016 merger between GPI * and the SPAC CFP1. Start of trading in the stock market AIM Italia. • 2018 graduated from AIM to MTA main market of Borsa
Slide 6: Segmentation
Segmentation REVENUE EBITDA REVENUE REVENUE BY SBU BY SBU BY GEOGRAPHY BY CLIENT SEGMENT * Other Other Overseas NH-Pri 12.5% Software 8.8% 11.5% 8.3% NH-Pub 38.1% 6.8% Care 2019 H-Pri 2019 20.4% adj. 2019 9.0% 2019 Revenue EBITDA Revenue Revenue Care Software H-Pub 49.4% Italy 91.7% 68.1% 74.5% *Cus
Slide 7: SBU Software
Tenders’ Win Ratio** SBU Software • 35% Predictable Revenue adj. REVENUE M€ • 50% Product Lines Client Retention Other 30% • 91% 90.3 90.8 Clinical System Contract Duration 35% • 1-3 years 2018 2019 Awarded contracts value (annual average of the last 3 years) HR 10% • 6-7 M€/year EBITDA M€ Blood Hea
Slide 8: SBU Care
SBU Care Tenders’ Win Ratio** • 40% adj. REVENUE +30% Predictable Revenue M€ • 95% Client Retention Product Lines • 97% 102.5 Other 2% 78,7 Contract Duration • 4-6 years Awarded contracts value 2018 2019 (annual average of the last 3 years) • 10-15 M€/year EBITDA M€* Access to Care 6.4% 95% Rankin
Slide 9: Other SBUs
Other SBUs Automat. Pay 38.3% Automation 22.3% An integrated hardware and software REVENUE M€ +21% solution for the automation of the logistic 2019 of drugs in health care facilities and retail Revenue pharmacies. 30.0 24.8 ICT ICT A turnkey service to maintain our 39.4% 2018 2019 customers’ softw
Slide 10: Remarkable Growth in 2019
Remarkable Growth in 2019 Revenue +18.3%, Net Profit +3.1% • Revenue 240.9 M€, +18.3% M€ 2019 2018 • Care +35.0 % • Other +21.2 % Revenue & other income 240.9 203.7 • Sw +1.2 % Adjusted Revenue (1) 223.3 192.9 • 2019 characterized by EBITDA 32.2 28.6 (2) o 3 acquisitions o the incorporation of 2 New
Slide 11: Financial Highlights 2019
Financial Highlights 2019 GPI maintains CERVED A3.1 Rating A- S&P |A3 Moody’s | A-1 Fitch • Net Working Capital 91.3 M€ (75.6 M€ in 2018): M€ 2019 2018 • increase due to the growth of revenue and to the important orders attracted at the end of the fiscal year; correspondingly, trade Net Working Capi
Slide 12: Highlights
• M&A Highlights • France Guyot Walser Informatique Blood Bank 360 health facilities • Lazio contract start - 18 batches: 72 M€ in 2 years + 1 year extension (Care: AtC) • Italy 6 million more citizens reached Accura Chronic disease management • Veneto tender awarded: Business Process Engineering 79
Slide 13: COVID-19 and Forward Looking Statements
COVID-19 AND FORWARD LOOKING STATEMENTS COVID-19 emergency, our priority issues • measures to protecting the health of all employees, customers and suppliers • managing the economics and financials, not losing focus on the longer term Two possible scenarios • emergency to end in the short run: reven
Slide 14: Target Market Competitive Environment
Target Market Competitive Environment 14
Slide 15: Market Analysis | Software
Market Analysis | Software MARKET VALUE 60 B$ -> Global market value of software & services - IT Healthcare (2018) CAGR 2018-2022 6.2 % 47 % North America CAGR 18 – 22: 6.1% 28 % Western Europe CAGR 18 – 22: 5.4% 10% Mature APAC CAGR 18 – 22: 4.3% || Source: Gartner (2019) 5 % Latin America CAGR 18
Slide 16: Market Analysis | Software
Market Analysis | Software MARKET TOP PLAYER Market: SW and svc. - Italy 2018 7.5% GPI’s market share Focus on Rankin Company Description Healthcare g ICT system and related services for 1st public & private Healthcare institutions ICT services for finance, industry, Through its telco&utilities, a
Slide 17: Market Analysis | Care
Market Analysis | Care ADMINISTRATIVE SERVICES - MARKET VALUE & PLAYERS n.a. -> Global market value 28+ M citizens reached not available because of its heterogeneous nature - international Company Description Ranking comparison impossible ICT solutions, administrative, health- and social- 1st care s
Slide 18: Customers
Customers +2.200 Public and private customers Hpub Hpri NHpub NHpri 2019 74.5% 9.0% 6.8% 8.8% 2018 74.0% 13.4% 6.3% 6.3% • Health Authorities • Private Clinics, • Regions • Large-Scale Distributors • Hospitals Nursing Homes, ... • Provinces • Banking Institutions • Public Providers (in-house) • Anal
Slide 19: Main Customers
Main Customers LOCAL AUTHORITIES REGIONAL AUTHORITIES PRIVATE ENTITIES INTERNATIONAL AUTHORITIES 19
Slide 20: Italy Worldwide
ITALY + 40 Branches WORLDWIDE + 60 Countries 20
Slide 21: Strategic Guidelines
Strategic Guidelines 21
Slide 22: Strategic Guidelines 2020-2022
Strategic Guidelines 2020-2022 01 02 03 04 05 MORE GLOBAL PRIVATE HC LEADERSHIP FROM FROM PROVIDER GROWTH HEALTHCARE SW PRODUCTS/SERVICES TO TO PARTNER • +300% in the triennium • doubling in ITALY INTEGRATED SOLUTIONS (M&A Software company with the % size • big regional/ • Higher integration • Multi
Slide 23: Vision Mission
VISION MISSION MA & 23
Slide 24: GPI's growth journey continues
GPI’s growth journey continues 24
Slide 25: M&A Guidelines
M&A Guidelines TARGET ITALY 1. Software / Services / Area Completion (1-10 M€) 2. Big Player OVERSEAS 1. Structured companies Software (20-30 M€) 2. Software complement 25
Slide 26: Investment Attractiveness
Investment Attractiveness GPI IN THE STOCK MARKET Leadership and Uniqueness Bloomberg: GPI:IM 15,909,539 Ordinary Shares (ISIN: IT0005221517) Price: 6.76 € (27 March 2020) Growth and Visibility Capitalisation: 107.6 M€ (27 March 2020) ANALYST COVERAGE – Target price Intermonte SIM (10/10/2019): 11.4
Slide 27: IR Contacts
IR Contacts Fabrizio Redavid Lorenzo Giollo Maria Antonietta Pireddu C. +39 335 1035499 C. +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 investor. relatio
Slide 28: Disclaimer
DISCLAIMER The material in this presentation has been prepared by GPI S.p.A. (“GPI” or “the Company”) without independent verification and it is general background information about GPI’s activities current as at the date of this presentation. This information is given in summary form and does not p