Slides
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FY2024 RESULTS C a p i t a l M a r ke t s D ay Tr e n t o, 1 A p r i l 2 0 2 5 V i d e o C o n f e r e n c e
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Agenda 1 GPI OVERVIEW F. Manzana CEO 2 FY 2024 MAIN RESULTS M. Santoro GM 3 Q&A SESSION
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Agenda 1 GPI OVERVIEW F. Manzana CEO 2 FY 2024 MAIN RESULTS M. Santoro GM 3 Q&A SESSION
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GPI OVERVIEW: KEY MESSAGES 4 1 Leader in Healthcare Software in Italy (successful Consip/NRRP tenders acquisitions). Source: Netconsulting Cube 2024 2 Sustained growth (CAGR 2020-2024): Revenue 17%, EBITDA 27%. M&A 2017-2024 €400M International expansion: 22% of total revenue (from 18% in 2023). Software accounts for one-third of revenues from abroad.4 Industrial Plan 2025-2029: Revenue > €700M 2029E, (overseas 27%-30%) EBITDA > 25% Focusing on Software offering and positive support from other SBAs.5 3 Improvement of marginality (EBITDA/Revenue) from 18.4% to 20.6% thanks to M&A, market expansion and focus on SBA(1) Software. Two non convertible 6-year unsecured bonds to support investment and innovation.6 Note (1): SBA, Strategic Business Area
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GPI'S VISION, MISSION & VALUES 5 PASSIONETHICS CARE FOR PEOPLERESPONSIBILITY guides our choices drives us to make a difference at the heart of everything we do fuels our pursuit of ever better results Enhancing quality of life by leading healthcare’s digital transformation. VISION Developing innovative software and technologies to streamline healthcare interactions and optimize prevention, diagnosis, and treatment. MISSION VALUES
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REVENUE AND EBITDA: IMPRESSIVE DOUBLE DIGIT GROWTH 6 271 327 360 433 510 2020 2021 2022 2023 2024 Acceleration in 2022-2023 thanks to NRPP kick-off and Tesi and Evolucare acquisitions Significant growth in 2024 mainly thanks to SBA Software and the 100% inclusion of Evolucare financials and strong growth of Tesi Group Focus on SBA Software with improved profitability Backlog 2025 mainly Software > € 350 M as of today €M 40 50 54 80 105 14.8% 15.2% 15.1% 18.4% 20.6% Revenue EBITDA EBITDA Margin
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Revenue Breakdown (FY24, %) Gpi global footprint and international reach Italy RoW By geography By client type Health Public ◼ Healthcare Authorities ◼ Hospitals ◼ Public providers ◼ Regions, local entities Health Public Health Private Non-Health Public Non-Health Private Health Private ◼ Nursing homes ◼ Private clinics ◼ Pharmacies Non-Health Public ◼ Regions, local entities, municipalities Non-Health Private ◼ Telco ◼ Other 50+ offices in Italy 33% FY24 software international revenues Malta GermanyUK PolandBelgium Spain Italy Austria ChinaTunisia Brazil Dominican Rep. US Mexico Chile Canada Main geographies Offices HQs Colombia Other countries 33% Software international revenues France Offices in 18 countries 70+ countries reached Switzerland GLOBAL PRESENCE AT A GLANCE 74% 13% 8% 5% 22% 78% 7
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MARKET LEADERSHIP 8 SBA HEALTHCARE SOFTWARE HEALTHCARE Business Process Outsourcing Year 2021 2024 2021 2024 Italian Healthcare IT Mkt Size1 €1.2B €1.7B €290M €304M Market Share GPI is the Italian market leader in the healthcare software and healthcare BPO markets in the 2021 2024 period. Notes: (1) Source: NetConsulting Cube; 1° 1° 1° 1°
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HEALTHCARE IT MARKET SIZE AND EXPECTED GROWTH RATE 9 Market Size 2024 (€B) Expected CAGR 2024-2030 (%) Global Market > 60 8-10% Main Target Countries for Development France, DACH, USA, Italy > 25 11-12% Italy ca. 1.7 > 11% Sources: Statista – Digital Health; NetConsulting – ICT Research; GrandivewResearch – Single Digital Product; KPMG elaborations DACH = Germany, Austria and Switzerland
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OFFERING FRAMEWORK 10 CORE OFFERING: SOLUTIONS EHR/EMR (Electronic Health Record, Electronic Medical Record) MANAGING (Human Resources, Booking, Electronic Resource Planning for Health...) VERTICAL OFFERING: PRODUCTS BLOOD DIAGNOSTICS (Laboratory information System, Imaging, Pathology) TREATING & CARING (Telemedicine, AI solutions, Social Care...) CARE & TELEMONITORING CRITICAL CARE DIVERSIFICATION: PROFITABLE BUSINESS AROUND HEALTHCARE MODEL ICT & CYBERDEFENCE AUTOMATION
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4 PILLARS – STRATEGIC BUSINESS PLAN 2025 - 2029 11 SBA Software. Consolidation of the national leadership position.1. Capture additional value from recent acquisitions whilst developing vertical global products (e.g. Blood, Diagnostics(1), Critical care) and expanding the international presence of Software.2. Enhancement of the organizational model to align with the size and complexity of the Group.3. Capture value from business diversification (Telemedicine, Virtual Care, Cyberdefence, Automation(2))4. (1) Laboratory Information System, Imaging, Pathology. (2) Robots for automatic efficient warehouse management of pharmacies. 2027E 2029E ECONOMICS >€600m (25% - 27%) >€700m (27% - 30%) REVENUE (o/w international) EBITDA >22% >25%
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Agenda 1 GPI OVERVIEW F. Manzana CEO 2 FY 2024 MAIN RESULTS M. Santoro GM 3 Q&A SESSION
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FY 2024: KEY MESSAGES 13 1 GPI, A LEADING PLAYER IN DIGITAL HEALTHCARE. Strengthening our software leadership in Italy and expanding internationally, 2 INNOVATIVE, HIGH-QUALITY SOFTWARE SOLUTIONS. Creating value for customers and patients through continuous innovation and security. 3 EXCELLENT WIN RATE. In 2024, out of 111 bids, Gpi was awarded 44, achieving a win rate of 39.6% (43.7% for the SBA Software).4 STRATEGIC FOCUS ON GLOBAL SOFTWARE GROWTH. Industrial Plan set to guide medium to long-term expansion, emphasizing software and international markets.5 STRONG DOUBLE DIGIT GROWTH. Driven both by organic and inorganic growth, especially by Software.
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FY2024 : STRONG DOUBLE DIGIT GROWTH 14 € M FY24 FY23 restated (1) Revenue & other income 509.9 433.4 EBITDA 104.8 79.8 EBITDA margin % 20.6% 18.4% EBIT 36.7 25.6 EBIT margin % 7.2% 5.9% Net Income from continuing operations 14.6 0.6 Net Income 103.4 5.2 Revenue € 509.9 M +17.7% o/w Software € 304.1 M • Driven by organic (+10.0%) and inorganic growth (+7,7%); • Software increased by € 76.7 M (+33.7%). EBITDA: € 104.8 M +31.3% | margin 20.6% +220bps (vsFY23) • Driven by both organic (+14.6%) and inorganic growth (16.8%); • As a percentage of revenues, the incidence of material costs increased only by 0.4%, while general and labor expenses decreased by 0.6% and 1.9%, respectively; • Software’s EBITDA increased by € 23.6 M (+35.1%). EBIT: € 36.7 M +43.4% | margin 7.2% • D&A € 53.7 M (+9.6M) mainly due to Evolucare, contributing € 13.6 M. Net Income from continuing operations € 14.6 M (€ 0.6 M FY23) Net Income: € 103.4 M • Net interest expenses € 14.4 M (-4,8M), • Tax impact € 7.7 M (+2.0 M ). Proposed Ordinary Dividend € 0.50 per share (FY23 ordinary dividend € 0.50 p.s.). Note (1): FY23 The consolidated financial statements for the 2023 fiscal year have been revised to reflect the definitive application of the Purchase Price Allocation (PPA) for the Evolucare group.
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+34% Organic +19% 15 Revenue € M EBITDA € M 67 91 FY 23 FY 24 EBITDA margin • Retention 96% • Tender Win Ratio 44% • Avarage Contract term 1-3 years • Public customers 79% • Private customers 21% Software Focusing on Software enhanced the Group’s profitability SBA SOFTWARE: FY24 vs FY23 Revenue / Tot 59.6% EBITDA / Tot 86.7% +24M EBITDA +77 M REVENUE 29.6% 29.9% 227 304 FY 23 FY 24 +35%
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16 SBA SOFTWARE: PRODUCT AREA BREAK DOWN Segments % SW Rev. ’24E HIS 39.1% Blood 12.5% Diagnostics Treating & Caring 11.5% Other 7.4% Managing Key highlights ◼ Patient-centric Hospital Information System (HIS) providing real-time access to health data for professionals, ensuring coordination of patient care throughout their hospital stay. It includes various integrated modules such as emergency care, admission/discharge/transfer, EMR, Booking System,.. As of today, the group offers a dedicated solution for the Italian market and two European products (French and DACH), with strong international expansion potential ◼ Systems for blood (and SOHO) supply chain management, from the initial donators evaluation through the laboratory, storage, distribution, transfusion, transplantation and bedside traceability etc. As of today the group has developed a comprehensive blood management suite with strong global growth potential ◼ Laboratory Information System (LIS): platform developed for streamlining and management of diagnostic laboratory workflows ◼ Imaging: workflow support and management of clinical imaging (RIS-PACS), video, endoscopy and patient data reporting ◼ Pathology: platform for safe and high-quality anatomical pathology processes management with embedded AI features ◼ Social Care: central hub where healthcare providers, patients and caregivers can collaborate to manage complex medical conditions over time ◼ Telemedicine: software products for the provision and support of remote healthcare (i.e. tele-monitoring, remote monitoring of health data, tele-consultation and tele-visiting) ◼ Other healthcare software and services ◼ Other non-healthcare software and services (i.e. public administration) ◼ Healthcare management systems: integrated platforms with tools and processes for operations, financials and business performance streamlining (including ERP, accounting, control systems and HR)14.0% 12.5% Critical Care ◼ Software platforms designed to streamline and manage various aspects of surgical procedures (operating room, anesthesia, intensive care) and operations within healthcare facilities, integrating functions such as scheduling surgeries and managing surgical workflows 3,0%
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17 Revenue € M EBITDA € M 6.0 6.1 FY 23 FY 24 Revenue / Tot 31,8% EBITDA / Tot 5,8% • Optimizing workflows of the healthcare system BPO healthcare administrative svc. Access to Care Care EBITDA margin Robots for Pharmacy Warehouse Automation (hospital & retail) Automation ICT HW & SW maintenance & assistance System services Cyberdefence OTHER SBAs FY24 vs FY23 Revenue € M 42 44 FY 23 FY 24 EBITDA € M 6.6 7.8 FY 23 FY 24 Revenue / Tot 8,6% EBITDA / Tot 7,5 % 164 162 FY 23 FY 24 3.7% 3.8% 15.6% 18.0% • Retention (BPO) 93% • Tender Win Ratio 30% • Avarage Contract term 3-6 years
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18 CONSOLIDATING THE ITALIAN LEADERSHIP Centralization of Tendering Procedures in Italy Since 2021, Italy's public tendering has become concentrated within the national central procurement body, Consip. Major Health Digitization Tenders Consip has launched five nationwide tenders for health digitization through framework agreements, with a total value of € 4 billion. Lombardy’s National Framework Agreement Region Lombardy has also introduced a nationwide framework agreement for Telemedicine with a total value of approximately € 300 M. Gpi’s Success in Tenders Gpi has secured awards in all tenders awarded, often ranking first. High Quality Standards and Interoperability All of Italy served by Gpi. 17.5 167.1
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INNOVATION: ARTIFICIAL INTELLIGENCE TO EVALUATE, PLAN, PREDICT, AND MANAGE CRITICAL ISSUES Gpi4AI uses emerging Artificial Intelligence technologies to create cutting-edge, versatile and highly effective solutions that help healthcare organizations improve processes and services, benefiting the sustainability of the entire system. Voice & computer vision • AI agent able to perform Speech Emotion e.g. Clinical trial successfully passed University of Cagliari Probabilistic Digital Twin, what if scenario • Digital twins & 'what-if' scenarios analysis to optimize waiting lists e.g. Lazio Region, APSS Trento Regressors & data streaming • One Health approach to predict hospital admissions using climate and pollution data e.g. South East Tuscany LLM & RAG • Employ generative AI to leverage the knowledge base for automated and optimized customer relations e.g. Gpi Help Desk 19
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17.5 167.1 20 SOFTWARE DRIVES GPI’S INCREASING GEOGRAPHICAL PRESENCE € 100 M revenues generated abroad: 33% of Software’s total revenues € 71 M EU revenues mainly France, Spain, DACH (Germany, Austria, Switzerland) SBA Software’s revenues from abroad totaled € 100 M, boosted by M&A (mainly Tesi & Evolucare) This represents one third of SBA Software’s total revenue. € 29 M extra-EU revenues mainly Mexico, USA, Saudi Arabia Italy 67% UE 23% Extra UE 10% Software FY 24 +44% YoY
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FINANCIAL HIGHLIGHTS FY24 21 Fixed Assets • Increase mainly due to investments in new products and innovative solutions, particularly SBA Software. Net Working Capital • (+) increase in trade receivables and contract assets €58.0 M • (-) increase trade payables and account receivables €20.0 M. • (+) Inventories increase €0.4 M. Shareholders’ equity • €76.4 million higher than revised FY23 largely driven by 2024 net income, net of dividends. Net Financial Indebtness • €32.2 M decrease (see bridge into next page). CERVED Rating A3.1 equivalent to A- S&P , A3 Moody’s, A-1 Fitch. Note (1): FY23 The consolidated financial statements for the 2023 fiscal year have been revised to reflect the definitive application of the Purchase Price Allocation (PPA) for the Evolucare group. € M FY24 FY23 restated (1) Fixed assets 453.2 449.4 Net working capital 263.1 224.6 Other operating assets/(liabilities) (77.4) (82.8) Other assets/(liabilities) held for sale - 3.5 NET INVESTED CAPITAL 638.9 594.7 Shareholders’ equity 306.2 229.8 Net Financial Indebtedness 332.7 364.9 TOTAL SOURCES 638.9 594.7
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NET DEBT BRIDGE (€M) 22 Net Proceeds from the Argentea disposal and Tesi agreemen t NWC Increase mainly driven by activities related to the Consip agreements o/w €30.4M Intang. Mainly R&D Strong compliance with covenants The impact on total revenue decreased, mainly due to a reduction in net financial expenses, driven by lower debt levels and interest rates. €0.50 p.s. Ordinary + €0.35 p.s. Extra- ordinary
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KEY POINTS Software & European Market Improve competitive position in Europe (Software) Integration of acquired companies Strengthening Group Corporate Financial Control Improve organization and operations for Accounts Receivable & NWC management Organization & Cash Generation Strengthen Software national and international competitive position Capture full value creation and synergies from recent acquisitions Driven by the New Industrial Plan Optimize organizational model and efficiency 23
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MAIN TARGETS STRATEGIC BUSINESS PLAN 2025-2029 24 DEBT < 2.7x < 2.5x NFP/EBITDA DIVIDENDS Stable distribution CAPEX ca. 7-9% of revenue ca. 7-9% of revenue ROIC > 11% > 15% 2027E 2029E ECONOMICS >€600m (25% - 27%) >€700m (27% - 30%) REVENUE (o/w international) EBITDA >22% >25%
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Agenda 1 GPI OVERVIEW F. Manzana CEO 2 FY 2024 MAIN RESULTS M. Santoro GM 3 Q&A SESSION
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2024 SUMMARY 26 • SUSTAINED GROWTH • LEADER IN HEALTHCARE SOFTWARE • STRONG INTERNATIONAL IMPULSE € 510 M Revenue + 77 M YoY € 105 M EBITDA + 24 M YoY 20.6% EBITDA margin + 220 bps YoY Proposed Dividend € 0.50 per share € 400 M M&A 2017-2024 Innovation for Sustainable Healthcare
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The material in this presentation was prepared by GPI S.p.A. ("GPI” or the “Company”) without any form of independent verification; it is general, basic information about the current business of GPI as at the date of this presentation. This information is supplied in summary form and is not complete. This presentation is provided for information only and is not an offer or solicitation of an offer of purchase or sale of securities, nor shall there be any sale or purchase of securities in any jurisdiction in which such an offer, solicitation or sale should be illegal before the registration or qualification in accordance with the laws on securities of that jurisdiction. It is intended exclusively by way of a presentation to investors and is provided for information only. This presentation does not contain all information that may be relevant to an investor. The information contained in this presentation, including the forecast financial information, must not be considered as advice or recommendations to investors or potential investors in connection with the holding, purchase or sale of securities or other products or financial instruments and does not take into account any specific investment targets nor the financial position. Before acting, it is important to consider the adequacy of information in relation to such subjects and, in particular, independent financial advice should be taken. All securities and product transactions or financial instruments entail risks, which include, amongst others, the risk of adverse or unforeseen market, financial or political developments and, in international transactions, the foreign exchange risk. The information contained in this presentation is confidential and is supplied to the user for information only and cannot be reproduced, re-sent or further distributed to anyone else, nor published, entirely or partly, for any purpose. This presentation is only distributed to and intended for: (A) persons in the European Economic Area Member States (excluding the United Kingdom), who are classed as “qualified investors” under Article 2, paragraph 1, letter e) of Directive 2003/71/EC (as amended and complete with any implementing measures applicable in each Member State); (B) in the United Kingdom, professional investment qualified investors coming under Article 19 (5) of the 2005 Order (financial promotion), the Order of Financial Services and markets and/or companies with high shareholders’ equity and other persons to whom it can be lawfully disclosed, pursuant to Article 49, paragraph 2, letters a) to d) of the Order; and (C) other persons to whom this presentation can be legally distributed and disclosed in accordance with applicable laws (all those pursuant to points (A) to (C) above, indicated as “relevant persons”). The information contained in this presentation may include forecasts. Although the Company believes it has a reasonable basis on which to make the forecasts given in this presentation, GPI warns that forecasts are no guarantee of future performance and that the effective operating results, financial conditions and conditions of liquidity and development of the segment in which GPI operates may differ considerably from those effectively achieved or suggested by the declarations given in this presentation or made by the GPI management team. Past performance is also not a reliable indication of future performance. GPI makes no promise to update or publicly review the forecasts, even if new information is revealed or for any other reason. The information and opinions given in this presentation or in the declarations made by the GPI management team are given as at the date of this presentation or any other date, if indicated, and are subject to change without notice. Do not rely on the information given in this presentation for any purpose. No express or implicit declaration or guarantee is given by GPI, its subsidiaries or the respective consultants, functionaries, employees and agents, as regards the accuracy of information or opinions or for any loss as may derive directly or indirectly from any use of this presentation or its contents. This presentation is not intended for distribution or use by any person or entity that is a citizen or resident of a place, country or other jurisdiction in which such distribution, publication, availability or use may be in conflict with laws or regulations or which would require any registration or licence within such jurisdiction. Disclaimer 27