Investor Presentation June 2019
Corporate Video Being the leading partner in the route to innovation for care , therapy and preventive models to ensure health and well- being
2016 – 2018 A History of Growth: Figures M&A ≈ 65 M € Deals REVENUES M € +13% Vs 2017 + 32% CAGR Total Rev. 203.7 2018 +16% CAGR Organic Growth 179.9 2017 136.2 2016 Adj. EBITDA M € HEADCOUNT Avg. Age 39.5 +10% Vs 2018 28.6 4,377 2018 2018 26.1 3,904 2017 2017 20.1 3,675 2016 2016 3
VISION Being the leading partner in the route to innovation for care , therapy and preventive models to ensure health and well-being 4
MISSION Partnering up with the Healthcare Institutions to ensure the continuous improvement of internal processes, so that they can provide accurate and efficient care pathways through bespoke software , services and technologies 5
THE PATIENT AT THE CENTRE 6
Strategic Business Areas 7
SOFTWARE GPI CARE REVENUES REVENUES REVENUES +18% +13% +6% 76.7 M 179.9 M 83.2 M 90.7 M 203.7 M 88.2 M 43 % 45 100 % 100 46 % 43 % % % 2017 2018 2017 2018 2017 2018 22.3 28.6 3.7 18.1 26.1 5.0 M M M M M M 24.7 14.0 4.7 23.8 14.5 6.7 % % % % % % Adj. EBITDA Adj. EBITDA Adj. EBITDA Others Others 45% 43% 9% 12% Care HIS ≈ 35% Administrative svc. ≈ 95% 13% ERP ≈ 15% Other svc . ≈ 5% 2018 2018 BLOOD ≈ 10% adj. EBITDA Revenues Care HR ≈ 10% 43% Other Solutions≈ 30% Software 45% Software 78% in Euros
Revenues Domestic Market vs Overseas ITALY OVERSEAS 2018 184.8 M 17.1 M 91.5 % 8.5 % +12% +30% 2017 13.1 165.7 M M 7.4 92.6 % % in Euros . 9
Significant Growth in 2018 Revenues +13% , Net Profit +21% Dividend equal to 0.33 € d.p.s. +10% • Revenues 203.7 M € , +13% thanks to the M € 2018 2017 contribution of the two business areas: restated • Software +18%, • Revenues & others income 203.7 179.9 Overseas +30% • Adjusted Revenues 192.9 170.9 2018 characterised by 3 acquisitions Adjusted EBITDA 28.6 26.1 • Rationalisation of the Corporate structure : Adjusted EBITDA % 14.8% 15.3% merger by incorporation of 9 subsidiaries • Pre TAX Profit 12.8 13.2 Adjusted EBITDA € 28.6 MM +10% ( 14.8% of Revenues) NET PROFIT 9.5 7.9 • Net Profit : € 9.5 M +21% 10
Economic-Financial Highlights 2018 A3.1 CERVED Rating confirmed A- S&P |A3 Moody’s | A-1 Fitch • Net Working Capital M € 2018 2017 75.6 M € (66.0 M € in 2017): • increase in trade receivables linked to significant Net Working Capital 75.6 66.0 revenues increase in 2018 and commercial cycle of some work in progress Non-current assets 105.2 104.8 • Shareholders’ Equity Other operating (50.7) (55.7) assets/(liabilities) 68.6 M € (64.0 M € in 2017 ) • distribution of dividends 2017 NET CAPITAL INVESTED 130.1 115.1 • profit generated during the year Equity 68.6 64.0 • Net Financial Position equal to 61.5 M € Net Financial Position 61.5 51.0 (57.2 M € as at 30/06/18 and € 51.0 M as at 31/12/17) TOTAL SOURCES 130.1 115.1 • > 22M M&A and core investments (tangible & intangible, R&D) 11
INTERNATIONAL HIGHLIGHTS 2018 • 17,1 M € revenues • Contract awarded for BPO CUP Lazio region ( 72 M € + 30% 2018 vs 2017 in 2 years + 1 year extension) • • Malta National Electronic Patient Entry into the market of the public sector with e- Payments and Collection Record ( 5 M € ) & State Police ( 1M € ) (BU PAY) • Blood Bank New contracts ( ≈ 1 M € ) • R&D : Machine Learning technologies introduced in GPI’s application ecosystem, especially for the • Incorporated Chronic Care Model . Informatica Group o.o.o. (Russia) • Listed on the MTA Argentea SP z.o.o. (Poland) 12
Outlook 2019 REVENUES > 230 M EBITDA > 14% Others 8% + 5% +20% • new contracts / Care Software • Increase of 19% extensions 73% Automation in the retail markets in Italy and overseas +20% • PA increase by reinforcement of • Strengthening of the business of target H_PUB - Region Uni.IT and PAROS Lazio contract • Target increase for H_PRI 13
Investor Presentation Competitive Scenario, Business Models, Strategic Guidelines 2020-2022
Market Analysis
Market Analysis | Software MARKET VALUE $59 B > Global market value of software & services - IT Healthcare (2018) +5,1 % vs 2017 47 % North America Market 29 % West Europe Market || Source: Gartner (2018) $0,8 B > Italian market value of software & services - IT Healthcare (2018) 1,41 % vs the global market || Source: Gartner (2018) € 1,7 B IT HealthCare addressable market € 1,1 B software & services - IT HealthCare available market || Source : Netics (2018) 2018-2022 > CAGR 4,75% || Source: Gartner (2018) 16
Market Analysis | Software MARKET SHARE Market SW and SVC. - Italy 2017 6.2% 6.2% GPI’s mar market et shar hare Focus on Company Brief Description Ranking Healthcare ICT system and related services 1 st for public & private Healthcare institutions ICT services for finance, Through its 2 nd = 5 to = 5 top p play player ers industry, telco&utilities, and PA dedicated healthcare division ICT solutions & Care services 3 rd for public & private Healthcare institutions Software for hospital 4 th processes , order & risk mgmt. Part of Reply Group Digital transformation & ICT Through its 5 th services for industries, energy, dedicated aerospace, Healthcare , PA, … healthcare division 17 || Source: Netics (2018)
Market Analysis | Care MARKET VALUE n.a. > Global market value for Administrative Services – not available because of its eterogeneus nature, impossible comparison at an international level € 155 M > Italian market value for Administrative Services – 2017 underestimated market size – a share of the market is still insourced. 2018 > 24 M citizens served by GPI’s services (ca. 40% of the Italian pop.) 2019 > 28,5 M Expected citizens served by GPI’s services 1 st PLAYER ITALY 18 || Source: Netics (2018)
Business Model
SOLUTIONS THAT MAKE DIFFERENCE ERP - Enterprise Resource Planning HR - Human Resources HIS - Hospital Information System Software Population Health Management Veterinary & Food Safety Blood Bank Management Integration Middleware Content Access Portals 20
ALWAYS CARING, ALWAYS HERE Busine ness Proces ess Outs tsour urcing ng Auxiliary Administrative Services such as: Health Services Booking, Contact & Call Centre, Front-end/desk, Secretariat, Care Cultural Mediation for foreign citizens, etc. Social al and Virtua ual Care Health- and Social-care Services, Telemedicine, 3D Printed Prosthetics. 21
Customers +1,900 Public and private customers H pub H pri NH pub NH pri 72% 9% 9% 2018 10% 80% 5% 7% 2017 8% • Large-Scale Distributors • Health Authorities • Analytics, Providers • Municipalities • Banking Institutions • Hospitals • Trade Associations, • Provinces • Managers of meal vouchers • Nursing Homes, • Regions Insurance Companies • No-Food Retailers • Cooperatives • Regional Private Clinics, • Local Organizations (ACI,…) • Private Users Not-for-profit Organizations Bodies • Public Providers (in-house) • Pharmacies • Universities • Regions, Provinces (HC) • Consortiums 22
Main Customers LOCAL AUTHORITIES REGIONAL AUTHORITIES PRIVATE ENTITIES INTERNATIONAL AUTHORITIES 23
ITALY + 40 Branches WORLDWIDE 18 Branches Australia Austria Brazil Chile Germany Hungary Jordan Mexico Peru Poland Russia Saudi Arabia Spain Switzerland Turkey UK United Arab USA Emirates SOLUTIONS + 60 Countries 24
High Visibility: 68% of Revenues from Recurring Fees Business Models Revenues 2018: 90.7 M € (45%) Revenues 2018: 88.2 M € (43%) ● 50% of Revenues from recurring fees ● 95% of Revenues from recurring fees ● Revenues = software development ● Revenues = € 1-3 per contact + periodic maintenance + fixed annual fee ● 1-3 years average contract duration ● 3-6 years average contract duration ● ≈ 91.2% client confirmation rate ● ≈ 25% tender success rate 25
Promising Core Business Portfolio ● 10.8 M € /year awarded contracts in the ● 20.3 M € /year awarded contracts in the last 3 years last 3 years ● Tender portfolio: 38 M € revenues to ● Tender portfolio: 68 M € revenues to book in 2018-2020 book in 2018-2020 745 M € value of procurements in which GPI participated at 31/12/2018 26
Strategic Guidelines 2020-2022
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