2016 group financial resultsaim... · 2016 group financial results total 2016 aggregate revenues...
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2016 GROUP FINANCIAL RESULTS
Total 2016 AGGREGATE REVENUES including Insiel Mercato spa
(€22.7M) and PCS (€10.8M)
would be approximately €170M
REVENUES+ 52 % vs 2015
EBITDA14.8 % of revenues
NET INCOME
NET FINANCIAL POSITION including recent acquisitions
DIVIDEND per share
NON-RECURRING and
NON-MONETARY COSTSfollowing the incorporation of CFP1
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%)
€ 136.2 M
€ 20.1 M
€ 6.5 M
€ 9.9 M
€ 0.30
€ 1.8 M
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LET’S HAVE AN OVERVIEW
• 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
An highly INTEGRATED and SPECIALIZED platform
of products and services covering all the crucial needs
in the HEALTHCARE developing industry
+1.200public & private clients
10-11% average cross selling 2015-16 among
business areas
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IT SOLUTIONS
2015 A (IFRS) 2016 A (IFRS)
26.5 m 44.5 m
up to +3 yearsaverage duration of contracts
ca. 95% confirmation rate of clients
at expiry date of the contract
KEY DRIVERS
TURNOVER (€M)
TOP CLIENTS
33%
of totalREVENUES =
SW develop. +
periodic maintenance (~58%)
• 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
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BUSINESS PROCESS OUTSOURCING (BPO) and SOCIAL CARE
BPO
• Competence & Know How
• ICT for channel-shifting
• ICT for Welfare
• Good revenue visibility
• High hit ratio in tenders
• Good margins
• Cross-selling potential
REVENUES =
1-3 € per contact +
yearly rate
2015 A (IFRS) 2016 A (IFRS)
KEY DRIVERS
TURNOVER (€M)
56%
of total
TOP CLIENTS
SOCIAL
• Strong growth potential
through new products
• Social impact
• High margin+20 Muser
served
ca. 25%hit ratio in tenders49.1 m 75.9 m
BPO
SOCIAL CARE
5-6 years average duration
of contracts
CORE ACTIVITIES
• Contact and Call Center
• Front-end services
• Telemedicine
• Social services
1.5
~ 1.2 m
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RETAIL PHARMACY AUTOMATION SYSTEM
• Technological leadership
• Strong growth potential on private clients
• International development
• High margins
• M&A potential
REVENUES =
price +
periodic maintenance / assistance
2015 A (IFRS) 2016 A (IFRS)
KEY DRIVERS
TURNOVER (€M)
2%
of total
TOP CLIENTS
worldwide market
CORE ACTIVITIES
• Riedl Phasys – automated warehouse for retail pharmacy
logistics
• Industry Solutions
3.1 m2.9 m
• 22 installed in Italy
(10 in order intake)
• 200 installed WW
• 8 private healthcare
structure
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PROFESSIONAL ICT SERVICES
• Health ICT specialization
• OnSite presence
• Cross-selling potential
• High customer loyalty
REVENUES =
Periodic
IT maintenance / assistance
2015 A (IFRS) 2016 A (IFRS)
KEY DRIVERS
TURNOVER (€M)
5%
of total
TOP CLIENTS
CORE ACTIVITIES
• Desktop management
• Application maintenance
• Business intelligence
7.0 m6.5 m
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14,4%
11,9%11,4%
6,1%
4,6%
1,9%
Dedalus GPI Engineering Reply Exprivia ADSData
Processing
11,4%
8,9% 8,7%
6,1%5,5%
4,6%
3,2%
1,9%
Engineering Dedalus GPI Reply Noemalife Exprivia Insiel Mercato
ADSData
Processing
MARKET SHARE IN ITALY
2015 ADDRESSABLE MARKET SHARE IN ITALY
(excluding in-house business - € M)
2015 POST-ACQUISITION
(NOEMALIFE by Dedalus & INSIEL MERCATO by GPI)
Source: Osservatorio Netics, 2016
796
820
855
895
930
2014 2015 2016 2017 2018
GPI’S ADDRESSABLE MARKET IN ITALY
(excluding in-house business - € M)
• 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
2014-18
CAGR
+4%
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EHRs ARE EVOLVING TO MEET NEW CARE DELIVERY DEMANDS
LEV
EL
OF
INT
EG
RA
TIO
N
FOCUS ON THE SYSTEM FOCUS ON THE PATIENT
2000 202020152010
Source: Osservatorio Netics, 2016
ANALOG
HEALTHCARE
COMPUTERIZED
HEALTHCARE
INTEGRATED
HEALTHCARE
CUSTOMIZED
HEALTHCARE
GENERATION 2
“The Documenter”
GENERATION 3 “The Helper”
GENERATION 4
“The Collegue”
GENERATION 5
“The Mentor”
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TECHNOLOGICAL TRENDS and DEMAND
Source: Osservatorio Netics, 2016
TECHNOLOGICAL TRENDS
INFRASTRUCTURE AS A SERVICE
PLATFORM AS A SERVICE
BRING YOUR OWN DEVICE
IoT
BIG DATA / PREDICTIVE ALGORITHMS
REMOTE CONTROL & WEARABLE TECHS
SOCIAL ENGAGEMENT
THE DEMAND IS LOOKING FOR…
NATIONAL HEALTH SYSTEM
• Solutions for government spending
• Monitoring capacity of phenomena
• Planning support
LHA/HC MANAGEMENT
• Decision support tools
• Solutions for integrated healthcare
logistic
PHYSICIANS
• Intuitive and “fast” software usable
by tablet/smartphone
• Less digital bureaucracy
PHARMACIES
• Solutions for customer loyalty
• Warehouse/desk automation
• Less digital bureaucracy
ASSISTED
• Easy-to-use online services
• Reliable / available channels and
content in multichannel systems
• Personal health notebook
CIOs
• “Easy-to-admin” infrastructure
• Security and privacy protection
• Speed on the implementation of
solutions
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DRIVERS IN SELECTION OF HEALTHCARE IT SOLUTIONS PROVIDERS
Source: Osservatorio Netics, 2016
• Clients loyalty is one of GPI strength: 95% confirmation rate of clients at expiry date of the contract in IT solutions and
25% hit ratio in tenders in BPO (Healthcare Services Unit)
• +1.200 clients including primary Italian Hospitals, Health Authorities, Private Clinics, Regions, Insurance Companies, Pharmacies
• GPI developed a number of innovative products and services including prototypes
(i.e. ERMES projects, CARIN, ANCHISE, BUSTER System, Map of Needs…)
• High-quality and hyper-specialized skills
• Wide and in-depth products and services range covering almost all the value chain of Healthcare
References
Reputation
Innovation in products and services
Professional domain capabilities
Supply completeness
Price
Geographical proximity
Proactivity/VisionDR
IVE
RS
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GROWTH BY M&A: a strong integration experience
HIGHLIGHTS
2014 – 2016excluding IM/PCS
• > €21M invested
• > €35M new turnover
• > €7M new EBITDA
• 9 acquisitions
• 6 deals in IT solutions, 2 in
Healthcare and 1 in
Logistic & Automation
• Lombardia Contact
representing more than half
of total investment
• Sferacarta
• Logix (rent)
• Riedl
• Evolvo
• Lombardia Contact
• GPI Technology
• Natisoft / Lambda
• Innovazione e
Tecnologie
• Gbim
Turnover (€ M)
63.5 72.7 74.1 100.4
1.2
15.3
35.8
TOT: 63.5
TOT: 73.9
TOT: 89.4
TOT: > 136.2
2013 2014 2015 A (IFRS) 2016 A (IFRS)
Organic
External
~ 29%CAGR
tot.
16%CAGR
organic
GPI’S ACQUISITION POLICY INCLUDES BOTH
DIRECT PURCHASE (EQUITY/ASSETS) AND
RENTAL OF TARGET COMPANIES
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GROWTH BY M&A: a strategic deal in 2016
• €13M for 100%
• based in Klagenfurt (Austria)
• 60 employees
• active in Austria, Switzerland and
Germany
2016
• Revenues of €10.8M in 2016
(internationalization)
• €1.8M for 55%
(+call option for other 45%)
• based in Trieste (Italy)
• 220 employees
• operational structures in Udine,
Bolzano
Bologna and Pisa
2016
• Revenues of €22.7M in 2016
(ICT market-share)
=
GPI acquired from TBS Group:
100.4
35.8
sub TOT
€ 136.2 M
33.5
(IM+PCS)
organic
external
sub TOT
€ 33.5 M
TOT
€ 170 M
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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
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 electro-
medical segment
INTERNATIONALIZATION
• increase the group’s international presence in selected markets with a specific product segment (especially
logistics and robotics)
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R&D INVESTMENTS: a key factor of our strategy
Research and Development is one of the most important pillars for GPI Group: a strategic activity to keep
our ICT solutions & services innovative and up to date with the market evolution
R&D investments remained stable through 2014-16 at around €6M
MAIN RESEARCH GUIDELINES
• Cooperation between social and healthcare service applications, with particular reference to the evolution of the Electronic Social
and Healthcare Record, in response to the increasing complexity of the information needed in order to construct citizen profiles, in
compliance with the data protection legislation
• Management and control of clinical processes, with particular emphasis on preventive and operative assessment of the clinical risk
• Design of Ambient Assisted Living systems, available in homes or usable by citizens on mobile devices
• Visions of the future of business, new management and organizational models necessary to compete at an international level in
the fields of e-health/e-welfare services for citizens.
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LET’S RECAP
New technological trends (IoT, Big Data, Cognitive Computing)
Concentration of players
Supply and demand consolidation
The market demands reputation, references, professionals, large and solid players
Local tenders −GPI grows through tenders− set high barriers
GPI has the proper conditions to compete
GPI is able to do so without “having to” resort to improvised RTIs
GPI:
Fit for the
Challenge!
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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
2017 OUTLOOK
MOVING TO MTA/STAR
DIVIDEND POLICY
Payout ratio ~50% consistent with GPI’s past dividends
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Maria Antonietta Pireddu
T +39 02 45473884
www.irtop.com
Stefano Corvo
T +39 0461 381515
TRENTO
www.gpi.it
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