Gpi Spa · MIL:GPI
Gpi Spa — Investor Day (April 2024)
23 slides from Gpi Spa's investor day presentation, Apr 9, 2024
Slide 1: Capital Markets Day 2023 Results
Capital Markets Day 2023 RESULTS EN
Slide 2: Agenda
2 Agenda STRATEGY OVERVIEW | F. Manzana CEO 17.5 BUSINESS HIGHLIGHTS 167.1 | M.Santoro GM GROUP FINANCIALS | A. Mora VP 135.1 150.2 Q&A
Slide 3: Agenda
3 Agenda STRATEGY OVERVIEW | F. Manzana CEO 17.5 BUSINESS HIGHLIGHTS 167.1 | M.Santoro GM GROUP FINANCIALS | A. Mora VP 135.1 150.2 Q&A
Slide 4: Fully on track to become a European major player
4 FULLY ON TRACK TO BECOME A EUROPEAN MAJOR PLAYER A key player driving the digitization of healthcare systems for enhanced sustainability. 17.5 Record Revenue and EBITDA, bolstered by SBA Software 167.1 Transformational acquisitions: o Strong international impulse o +9000 customers +7600 employees
Slide 5: Agenda
5 Agenda STRATEGY OVERVIEW | F. Manzana CEO 17.5 BUSINESS HIGHLIGHTS 167.1 | M.Santoro GM GROUP FINANCIALS | A. Mora VP 135.1 150.2 Q&A
Slide 6: Healthcare: The Context
6 Healthcare: The Context HEALTHCARE: AN EVOLVING PUBLIC EXPENDITURE A PIVOTAL MARKET MARKET on HEALTH in ITALY A segment that can impact • demographic ageing and in 2022 a country’s economic increased life expectancy > € 130 B development, the • increased health costs management of public (chronic)
Slide 7: The New Demand for Care
7 Challenge | Opportunity Challenge: making the health systems sustainable, limiting spending while improving the quality of service THE NEW DEMAND FOR CARE Opportunity: organisational and technological renewal (Digital Health) rethinking the organizational models and processes used by the Health Au
Slide 8: The Transformative Power of Digital Health Solutions
8 The Transformative Power of Digital Health Solutions Current environment Digital health solution Effects and streamlining Resources optimisation and Shortage of medical staff AUTOMATION impact on average (doctors, nurses) hospitalisation Complex and intricate Process facilitation and MANAGEMENT SO
Slide 9: Our Innovation for a Sustainable Better Future
9 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 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. Automation and Software (mainly Blood Management Systems) +105% YoY Export 23.6% 2023 pro forma Italy 76.4% SBA Software SBA Software Significant increase of Improvement of the + exceeded 52% of exceeded 84% o
Slide 12: Agenda
12 Agenda STRATEGY OVERVIEW | F. Manzana CEO 17.5 BUSINESS HIGHLIGHTS 167.1 | M.Santoro GM GROUP FINANCIALS | A. Mora VP 135.1 150.2 Q&A
Slide 13: Revenue and EBITDA 2023 pro forma
13 Revenue 2023 EBITDA 2023 MILESTONES OF A STEADY GROWTH € 477.8 M pro forma € 96.9 M pro forma To allow comparison, all figures include 20.3% 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 EBITDA. 386
Slide 14: Pro forma revenue and EBITDA without Argentea
14 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 15: Double Digit FY23 Growth (IFRS 5)
15 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 16: Revenue Breakdown by Strategic Business Area
16 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 17: EBITDA Breakdown by Strategic Business Area
17 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 18: Financial Highlights FY23
18 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 19: Net Debt Bridge
19 Net Debt Bridge M&A: 172.7 364.9 Tesi 22.2 Evolucare 108.8 + 38.8 net debt Other 2.9 PFN Covenant 3.24 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 50.8
Slide 20: Targets Confirmed: Strategic Business Plan
20 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 21: Agenda
21 Agenda STRATEGY OVERVIEW | F. Manzana CEO 17.5 BUSINESS HIGHLIGHTS 167.1 | M.Santoro GM GROUP FINANCIALS | A. Mora VP 135.1 150.2 Q&A
Slide 22: In a Nutshell
22 IN A NUTSHELL € 463 M € 90 M > € 300 M € 266 M Revenue p.f. EBITDA p.f. M&A Net Debt 2019-2023 net of Argentea cash in (2024) • SOLID GROWTH in both Revenue and EBITDA • STRATEGIC for the Healthcare Systems • SOUND and CLEAR STRATEGY • NATIONAL and EUROPEAN REFERENCE POINT Via Ragazzi del '99, 13
Slide 23: Disclaimer
23 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