A LEADING PLAYER IN A FAST EVOLVING MARKET. IR Top Lugano Small & Mid Cap Investor Day, September 22, 2017

Transcription

1 A LEADING PLAYER IN A FAST EVOLVING MARKET IR Top Lugano Small & Mid Cap Investor Day, September 22,

2

3 2016 GROUP FINANCIAL RESULTS REVENUES + 52 % vs M Total 2016 AGGREGATE REVENUES including Insiel Mercato spa ( 22.7M) and PCS ( 10.8M) would be approximately 170M EBITDA 14.8 % of revenues NET INCOME 20.1 M 6.5 M EBITDA ADJUSTED: without considering imputed, non-monetary and non-recurring costs, EBITDA would be of 21.9M highlighting a MARGIN ON REVENUES of about 16.1%, significantly higher than 2015 results (9.0%) NET FINANCIAL POSITION including recent acquisitions 9.9 M DIVIDEND per share 0.30 NON-RECURRING and NON-MONETARY COSTS following the incorporation of CFP1 1.8 M 3 3

4 LET S HAVE AN OVERVIEW An highly INTEGRATED and SPECIALIZED platform of products and services covering all the crucial needs in the HEALTHCARE developing industry public & private clients 10-11% average cross selling among business areas Health ERP (EUSIS system) Hospital Information System Population Health Management BloodBank Management Software Food Safety Contact and Call center Multi-Channel Front-end Services Telemedicine Social Services BUSTER System Supply chain management of drugs in healthcare facilities RIEDL Phasys automated warehouse for hospital and local pharmacy logistic Industry solutions Desktop management Application maintenance Business intelligence Tailored solutions for retailers 4 4

5 IT SOLUTIONS KEY DRIVERS Customer orientation Client loyalty Competence & know-how Integrated platform Resistance to change as high entry barrier High margins Potential for M&A and international expansion CORE ACTIVITIES ERP HIS (Health Information System) Blood & Tissue Bank Cell Therapy SW Platform HR Suite Territorial Halthcare Suite 33% of total TURNOVER ( M) REVENUES = SW develop. + periodic maintenance (~58%) up to +3 years average duration of contracts ca. 95% confirmation rate of clients at expiry date of the contract 26.5 m 44.5 m 2015 A (IFRS) 2016 A (IFRS) Market with high entry-barriers 5 5

6 BUSINESS PROCESS OUTSOURCING (BPO) and SOCIAL CARE KEY DRIVERS BPO Competence & Know How ICT for channel-shifting ICT for Welfare Good revenue visibility High hit ratio in tenders Good margins Cross-selling potential SOCIAL Strong growth potential through new products Social impact High margin CORE ACTIVITIES Contact and Call Center Front-end services Cronic Care Service Management Direct and remote medical Services 56% of total TURNOVER ( M) REVENUES = 1-3 per contact + yearly rate BPO SOCIAL CARE +20 M User served 1/3 Italy s population ~ 1.2 m m 75.9 m 2015 A (IFRS) 2016 A (IFRS) ca. 25% hit ratio in tenders 5-6 years average duration of contracts 6 6

7 GROWTH BY M&A: a strong integration experience 16% CAGR organic ~ 29% CAGR tot. Insiel mercato PCS 33.5 sub TOT 33.5 M HIGHLIGHTS excluding IM/PCS HIGHLIGHTS 2017 TOT: 63.5 TOT: TOT: sub TOT M > 21M invested > 35M new turnover > 7M new EBITDA 9 acquisitions > 18.3M invested > 14.0M new turnover > 3.5M new EBITDA 6 acquisitions A (IFRS) 2016 A (IFRS) TOT 170 M 6 deals in IT solutions 2 deals for Healthcare 1 Logistic&Automation 3 deals in IT solutions 1 deal in BPO 2 R&D 25% EBITDA/ turnover Average Turnover ( M) Organic External GPI S ACQUISITION POLICY INCLUDES BOTH DIRECT PURCHASE (EQUITY/ASSETS) AND RENTAL OF TARGET COMPANIES 7 7

8 MARKET SHARE IN ITALY 2015 ADDRESSABLE MARKET SHARE IN ITALY GPI S ADDRESSABLE MARKET IN ITALY 11,4% (excluding in-house business - M) 8,9% 8,7% 6,1% 5,5% 4,6% 3,2% 1,9% CAGR +4% 796 (excluding in-house business - M) Engineering Dedalus GPI Reply Noemalife Exprivia Insiel Mercato 14,4% 2015 POST-ACQUISITION (NOEMALIFE by Dedalus & INSIEL MERCATO by GPI) ADS Data Processing ,9% 11,4% 6,1% 4,6% 1,9% Dedalus GPI Engineering Reply Exprivia Data ADS Processing Source: Osservatorio Netics, 2016 With 11.9% GPI is in the top three for market share (8.7% GPI + 3.2% Insiel Mercato) Some players (Dedalus, Noemalife, Insiel) similarly to GPI focus exclusively on the HC industry, while others (Engineering, Reply) are more diversified with an IT offering which covers different markets 8 8

9 MAIN STRATEGIES CONSOLIDATION OF THE CURRENT MARKET POSITIONING continuous improvement in business processes synergies among the group s different areas/companies strengthening communication and marketing actions improvements in the coverage of local markets (also M&A) ORGANIC GROWTH domestic sales growth through greater use of upselling and cross-selling opportunities enriching the group s customer target (e.g. companies and institutions in the private sector) new strategic partnerships with the main technology vendors, buying groups, service providers in the electromedical segment INTERNATIONALIZATION increase the group s international presence in selected markets with a specific product segment (especially logistics and robotics) M&A acceleration on new deals 9 9

10 WHY INVEST IN GPI LEADER IN A FAST EVOLVING MARKET The ongoing consolidation process will favour Italian champions with strong balance sheets and significant market shares A STRONG UPSIDE TO THE CORE BUSINESS GPI s wide portfolio of products and services (IT, BPO, pharmacy logistics, telemedicine, 3D printing,...) allows cross selling and upselling. Room for further growth will also come from new technologies (IoT, Support Decision Systems, ) CLIENTS LOYALTY GPI aims to succeed as leading player with long-standing relationship with clients and outstanding contract visibility with stable margins 2018 (First Half) OUTLOOK MOVING TO MTA/STAR DIVIDEND POLICY Payout ratio ~50% consistent with GPI s past dividends GPI: Fit for the Challenge! 10 10

11 Maria Antonietta m.pireddu@irtop.com T Paolo paolo.girardi@gpi.it T TRENTO

12 12 12