Gpi Spa · MIL:GPI
Gpi Spa — Investor Day (January 2025)
37 slides from Gpi Spa's investor day presentation, Jan 16, 2025
Slide 1: Strategic Horizons: GPI's Industrial Plan 2025–2029
STRATEGIC HORIZONS G p i ’s I n d u s t r i a l P l a n 2 0 2 5 – 2 0 2 9 Milan, 16 January 2025 Borsa Italiana – Area Scavi
Slide 2: Agenda
Agenda GPI OVERVIEW 1 F. Manzana CEO MARKET OVERVIEW AND OPPORTUNITIES 2 F. Redavid CMO STRATEGIC PLAN AND PERFORMANCE 3 M. Santoro GM 4 Q&A SESSION 2
Slide 3: Agenda
Agenda GPI OVERVIEW 1 F. Manzana CEO MARKET OVERVIEW AND OPPORTUNITIES 2 F. Redavid CMO STRATEGIC PLAN AND PERFORMANCE 3 M. Santoro GM 4 Q&A SESSION 3
Slide 4: GPI Overview: Key Messages
4 GPI OVERVIEW: KEY MESSAGES 1 Emerging leader in Healthcare Software in Italy (acquisition of Consip/NRRP tenders) 2 Sustained growth of c. 17% in 2020-2023 also driven by M&A 3 Improvement of marginality thanks to M&A 4 International expansion 5 Offering diversification in software and with other
Slide 5: GPI's Values, Vision and Mission
5 GPI'S VALUES, VISION AND MISSION VISION MISSION To develop innovative software products To enhance people's quality of life by and technologies that simplify interactions leading the digital transformation of among all healthcare stakeholders, healthcare. optimizing prevention, diagnosis, and trea
Slide 6: GPI is market leader in Italy and gaining market share in software sector
6 GPI IS MARKET LEADER IN ITALY AND GAINING MARKET SHARE IN SOFTWARE SECTOR GPI is the Italian market leader in the healthcare software and healthcare BPO markets in the 2021-2023 period. SBA HEALTHCARE SOFTWARE HEALTHCARE BPO Year 2021 2023 2021 2023 Italian Healthcare €1,2b €1,6b €290,0m €294,0m I
Slide 7: Timeline of Main Acquisitions Since 2019
Legend 7 TIMELINE OF MAIN ACQUISITIONS SINCE 2019 HIS Social Care Blood LIS Critical Care Imaging Data Analytics HQ Markets Products Acquisition Acquisition Evolucare Acquisition Tesi Acquisition Medinfo Acquisition Leading French Haemonetics Oslo software provider, (blood SW) active in HIS, Acquisi
Slide 8: Group Revenue and EBITDA
8 GROUP REVENUE AND EBITDA Significant growth expected in 2024 mainly due to the 100% inclusion of Evolucare financials (vs 5/12 in 2023) and strong growth of Tesi Group Acceleration in 2022-2023 due to NRPP kick- Revenue off and Tesi and Evolucare acquisitions EBITDA >500 EBITDA Margin 434 (€m) 360
Slide 9: Growth Benchmarking vs. Competitors
9 GROWTH BENCHMARKING VS. COMPETITORS GPI recorded a significantly higher growth than competitors in Software SBA, with a strong contribution from organic growth. Revenue CAGR 2021-2023 SOFTWARE CARE AUTOMATION Key Competitors 7% 12% 1% 23% GPI 15% 39% (1%) 23% 2 3 GPI – M&A 5% 12% - - GPI – organic
Slide 10: Geographical Presence
10 GEOGRAPHICAL PRESENCE GPI's international presence as of today was achieved mainly through acquisitions. GPI realized 18% of its revenue abroad in 2023 and is looking forward to strengthen its international presence. Revenue 2023 (concentration) Revenue 2023 <€1,0m
Slide 11: Software Offering Evolution
11 SOFTWARE OFFERING EVOLUTION 100% Medico Social Evolucare 15-20% Other Virtual Care AI projects Platform ~5% Telemedicine Critical Care ~5% Critical Care Diagnostics Evolucare 100% Tesi ~10% Diagnostics Imaging Blood France Blood Evolucare Blood Blood USA Insiel Mercato Guyot Haemonetics Tesi 10-1
Slide 12: Diversification over Software
12 DIVERSIFICATION OVER SOFTWARE CARE AUTOMATION Strategic Positioning – close to strategic healthcare Technologies – cutting-edge proprietary technologies decision makers well perceived by the market Market – characterized by elements of fragmentation Innovation – infrastructure platform for new wi
Slide 13: 2025-2029 Strategy and Targets
13 2025-2029 STRATEGY AND TARGETS NEW STRATEGY 2029 TARGETS 1. Consolidation of national leadership position REVENUE > €700m Capture extra value from recent acquisitions, also developing 2. vertical global products and international presence EBITDA > 25% Enhancement of organization model to be appro
Slide 14: Agenda
Agenda GPI OVERVIEW 1 F. Manzana CEO MARKET OVERVIEW AND OPPORTUNITIES 2 F. Redavid CMO STRATEGIC PLAN AND PERFORMANCE 3 M. Santoro GM 4 Q&A SESSION 14
Slide 15: Market Overview and Opportunities – Key Points
15 MARKET OVERVIEW AND OPPORTUNITIES – KEY POINTS Digitalization will push demand towards more innovative solutions, which integrate new 1 technologies (e.g., AI and IoT) to increase professional networks productivity The global healthcare IT market’s value is over €60b as of 2024 with an expected C
Slide 16: Health market has few simple expectations on digitalization
16 HEALTH MARKET HAS FEW SIMPLE EXPECTATIONS ON DIGITALIZATION The success of any digital solution is ensured when all stakeholders are aligned in achieving six invaluable and well- defined objectives: Expand access to care: leveraging remote technologies and innovative solutions to provide continuo
Slide 17: Digital solutions may drive the market through new capabilities
17 DIGITAL SOLUTIONS MAY DRIVE THE MARKET THROUGH NEW CAPABILITIES Digital solutions, to achieve the previous objectives, must bring to the table technologies and features that unlock the following capabilities: Delivering remote patient care: virtual care solutions empower healthcare to transcend t
Slide 18: Technology combinations for innovative solutions are infinite
18 TECHNOLOGY COMBINATIONS FOR INNOVATIVE SOLUTIONS ARE INFINITE The hype cycle of Digital Health Solutions traces innovations from initial enthusiasm to maturity and adoption GenAI Robots in rehab. Narrow AI Robots Bioinformatics companion Virtual Reality Robots in hospital Portable diagnostic devi
Slide 19: Healthcare IT Market Size and Expected Growth Rate
19 HEALTHCARE IT MARKET SIZE AND EXPECTED GROWTH RATE Market Size Exp. CAGR 2024 (€b) 2024-2030 (%) Global Market > 60 8-10% Main Target Countries for Development > 25 11-12% France, DACH, USA, Italy Italy c. 1,7 11,3% Sources: Statista – Digital Health; NetConsulting – ICT Research; GrandivewResear
Slide 20: Focus on Healthcare IT Product Categories in Main Target Countries
20 FOCUS ON HEALTHCARE IT PRODUCT CATEGORIES IN MAIN TARGET COUNTRIES €m (size) Italy France DACH USA Total % (CAGR 2024-2030) • Chronic Core • EHR/EMR 800 742 1.334 7.234 10.109 Horizontal Offering • Management Control 7% 6% 6% 8% 7% • Scheduling 27 33 48 209 317 Vertical Blood • Blood 5% 9% 6% 8%
Slide 21: Automation and BPO Services (Care) Market Size and Expected Growth
21 AUTOMATION AND BPO SERVICES (CARE) MARKET SIZE AND EXPECTED GROWTH Market Size Exp. CAGR AUTOMATION 2024 (€m) 2024-2030 (%) Main Target Countries for Development 3.500 9,2% France, DACH, USA, Italy Italy 135 10,7% Market Size Exp. CAGR BPO Services (Care) 2024 (€m) 2024-2030 (%) Italy c. 300 3,0%
Slide 22: Agenda
Agenda GPI OVERVIEW 1 F. Manzana CEO MARKET OVERVIEW AND OPPORTUNITIES 2 F. Redavid CMO STRATEGIC PLAN AND PERFORMANCE 3 M. Santoro GM 4 Q&A SESSION 22
Slide 23: Strategic Plan – Key Points
23 STRATEGIC PLAN – KEY POINTS 1 Strategic path towards integration 2 Strengthening of the competitive position in Italy (profitable growth) 3 Selective growth in international markets and verticals 4 Implementation of a more efficient and productive operating model 5 Profitable diversification in t
Slide 24: Strategic Path of GPI Group
24 STRATEGIC PATH OF GPI GROUP Strategic Plan 2025-2029 Actions: • Consolidation in Italian market • Appreciation of recent investments • Transformation of operating model • Diversification Impact: • Profitable growth • Improvement of cash flow profile • Reduction of leverage
Slide 25: Offering Framework
25 OFFERING FRAMEWORK GPI's offering has been divided in three categories: • Core offering: project-based and closely related to local needs and regulations • Vertical offering: product-based and with a potentially global scale • Diversification: business different from software but with strategic s
Slide 26: Strategic Program: Pillars of the Strategic Plan 2025-2029 (1/4)
26 STRATEGIC PROGRAM: PILLARS OF THE STRATEGIC PLAN 2025-2029 (1/4) SOFTWARE ITALY ENHANCEMENT • Grow from core offering HIS, Social Care, ERP for Health, Data Analytics and HR software (75% of additional revenue Consolidation Italy and growth of from these products) Core (Software) • Strengthen geo
Slide 27: Strategic Program: Pillars of the Strategic Plan 2025-2029 (2/4)
27 STRATEGIC PROGRAM: PILLARS OF THE STRATEGIC PLAN 2025-2029 (2/4) GROWTH OF BLOOD, TESI, EVOLUCARE • Global scale-up of sales in established countries (France, USA, Italy, Spain, Mexico) and new countries under Blood development (Middle-East) • Create unique integrated solution to be provided to e
Slide 28: Strategic Program: Pillars of the Strategic Plan 2025-2029 (3/4)
28 STRATEGIC PROGRAM: PILLARS OF THE STRATEGIC PLAN 2025-2029 (3/4) PERFORMANCE DRIVEN TRANSFORMATION (OPERATIONS PRODUCTIVITY) • Increase commercial synergies through the integration of development, production and delivery Framework geographies/verticals • Enhance operational efficiencies through t
Slide 29: Strategic Program: Pillars of the Strategic Plan 2025-2029 (4/4)
29 STRATEGIC PROGRAM: PILLARS OF THE STRATEGIC PLAN 2025-2029 (4/4) PROFITABLE DIVERSIFICATION • Focus on traditional business in the most profitable jobs and improve efficiency by continuous technology implementation Care • Launch several pilot projects of population health telemonitoring (chronic
Slide 30: Sustainability / ESG Implementation Plan – In Accordance with CSRD
30 SUSTAINABILITY / ESG IMPLEMENTATION PLAN – IN ACCORDANCE WITH CSRD1 NEW INITIATIVES • Acquire a SaaS digital platform to collect data and information on ESG topics from Group companies (on-going) General • Define new ESG governance structure, to be integrated into the AFC area, with the creation
Slide 31: Performance Overview and Targets
31 PERFORMANCE OVERVIEW AND TARGETS 1 Expected CAGR 2023-2029 over 8% with continuous improvement of marginality 2 Efficient management of capital structure 3 Targets 2027 & 2029
Slide 32: Group Revenue and EBITDA
32 GROUP REVENUE AND EBITDA HISTORICAL TARGETS Revenue EBITDA > 700 EBITDA Margin (€m) > 600 > 25% 434 > 22% 360 327 19% 271 15% 15% 15% > 175 > 130 80 40 50 54 2020 2021 2022 2023 2027E 2029E
Slide 33: Net Debt and Dividends Overview
33 NET DEBT AND DIVIDENDS OVERVIEW HISTORICAL TARGETS (€m) 365 145 155 143 < 2,7x < 2,5x EBITDA EBITDA 2020 2021 2022 2023 2027E 2029E Adjusted to include Argentea's and Evolucare's full year EBITDA (+ c. €17m vs. reported) Net Debt/EBITDA 3,6x 3,1x 2,6x 3,8x < 2,7x < 2,5x Dividend per share distrib
Slide 34: Main Targets
34 MAIN TARGETS 2027E 2029E REVENUE > €600m > €700m ECONOMICS EBITDA > 22% > 25% c. 7-9% c. 7-9% CAPEX of revenue of revenue ROIC > 11% > 15% DIVIDENDS Stable distributions DEBT NFP/EBITDA < 2,7x < 2,5x
Slide 35: Target Revenue Breakdown 2027-2029
35 TARGET REVENUE BREAKDOWN 2027-2029 REVENUE BY PRODUCT REVENUE BY GEOGRAPHY 2023A 2027E 2029E 2023A 2027E 2029E SOFTWARE 52% c. 65% c. 68% ITALY 82% 73-75% 70-73% OTHER 48% c. 35% c. 32% INTERNATIONAL 18% 25-27% 27-30%
Slide 36: Agenda
Agenda GPI OVERVIEW 1 F. Manzana CEO MARKET OVERVIEW AND OPPORTUNITIES 2 F. Redavid CMO STRATEGIC PLAN AND PERFORMANCE 3 M. Santoro GM 4 Q&A SESSION 36
Slide 37: Disclaimer
37 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