GPI S p A (GPI) Investor Update summary

Strategic vision and market positioning

• Achieved leadership in Italian healthcare IT, expanding to 70 countries with a focus on Europe and select global markets, and aims to transform into a small multinational leveraging past acquisitions.

• Diversified offerings in software, digital pathology, blood, laboratory information systems, care, and automation, leveraging proprietary technologies and scalable international presence.

• Plans to increase global market penetration, especially in the U.S., while maintaining a cautious approach to growth and capital operations, with no extraordinary M&A or capital operations planned for 2025-2029.

• Emphasizes telemedicine, virtual care, and investments in automation and innovative devices for infusion therapies targeting the U.S. market.

• Focus on consolidating national leadership, extracting value from acquisitions, and expanding internationally.

Market trends and opportunities

• The global digital healthcare market is valued at over €60 billion in 2024, with the target segment at €25 billion and expected growth of 11-12%, while main target countries forecast even higher growth rates.

• Key growth areas include EHR/EMR, diagnostics, critical care, automation, and a strong focus on hospitals over retail.

• Digitalization and integration of AI, IoT, and telemedicine are driving demand for innovative healthcare solutions.

• Artificial intelligence is central to product development, supporting diagnosis, patient management, and operational efficiency.

• Telemedicine, telemonitoring, and digital twins are seen as transformative for patient empowerment and care integration.

Operational and financial targets

• By 2027, expects revenues of €600 million, rising to over €700 million by 2029, with EBITDA margin at or above 25%.

• International revenue share projected to rise from 18% in 2023 to up to 30% by 2029, with software expected to account for 68% of revenue by 2029.

• Plans to improve cash flow and reduce debt, targeting a net financial position/EBITDA below 2.6 in 2027 and below 2.5 in 2029.

• CapEx will remain stable, with investments in product standardization and platform simplification.

• ROIC is expected to increase from 11% to 15% by 2029.