Good morning and welcome, everyone. My name is Lorenzo Giollo, Investor Relations Officer at GPI. Today we'll show you the first results of the first semester of the GPI. I'll give you an overview, then a more detailed description by Fabrizio Maggioni . So this is the Marketing Director, who will recall the results up to this so far. And then we also have a Q&A session planned. Please use the box on your right to send your questions through. Next slide, please. GPI plans and delivers software solutions for hospitals, nursing homes, pharmacies, and healthcare authorities to support them in digitalization to grant better care and to reduce costs. We are currently a leader in terms of healthcare software, and we are among the main players in Italy. We grew by 23.4% CAGR, divided into organic and inorganic growth.
Looking at inorganic growth, we invested EUR 400 million in terms of mergers and acquisitions in the past seven years. GPI, the past Italian rivals in terms of margin and revenues, our growth allowed us to have 9,000 customers across 70 countries. Another important aspect is Care, which is a key enabler for market access and customer engagement. We provide apps, portals. Care is the enabler for 30 million Italians. One Italian out of two interacts with GPI for appointment booking and first contact. GPI is a multinational now with a long-standing growth in terms of revenues and margins. And recently, we improved thanks to a higher focus on software. Next slide, please. This is the framework of our strategic offer, and it is divided into three pillars. We have software solutions, which need a project-based approach with a high personalization level.
We design software solutions for hospitals as well as treating and care solutions such as social care, telemedicine, etc., and we also manage 30% of hospitals in Italy through admins, booking, HR, etc., and we also develop data analytics and intelligence solutions that are crucial to deliver appropriate care. The second pillar is based on global products with high margin. They allow us to be more standard, and they provide a higher margin. The main product would be blood and substances of human origin. In this space, we are among the first three players globally. We have customers worldwide, really, then we have diagnostics. We offer software for labs and imaging software, as well as software for pathology with digitalization that allows us to provide speedy care, then we have critical care, so we connect the software to all devices of the hospital.
In this space, we are really strong in tackling hospital issues when it comes to operating theaters, intensive care, and anesthesia. Our third pillar, which is diversification, business diversification, which is based on other business areas, care and telemonitoring, which has really high margin, ICT, and cyber defense. This means maintaining the devices and, of course, cyber defense to support and defend supervisory duties, and then automation robotics for pharmacy warehouse, automation for pharmacies, retailers, hospital pharmacies. If we've received a latest press release, we've approached wholesalers as well. Next slide, please. This is our global footprint. We currently work in 70 countries. Of course, Europe is our main market, then the Americas. We are developing a clientele in the Middle East. We increase our share, international share.
GPI has 22% of revenues coming from the rest of the world. Software has a 35% of international revenues. You can see we have mainly health clients, public or private, so healthcare authorities, hospitals, or nursing homes for private healthcare. And then we have a smaller size of non-health, both public and private. Our business model is oriented to proximity. We have over 50 offices in Italy, and we have offices in 18 countries out of the 70. This is the overview of our company. I'd like to now leave the floor to our Director General, Matteo Santoro.
Good morning, everybody. Thank you, Lorenzo, for providing context. This is very helpful for me. I would like to convey some information I believe to be helpful. Those who know us know that GPI has been implementing some novelties in 2025. We started a new growth. In the past, we grew exponentially. We understood by intuition, and thanks to the observatory we have, and thanks to market research as well, we understood that the global market would also affect the world of healthcare. So we needed to face the issues. So in the past, we carried out over 55 extraordinary operations. We grew exponentially, and this allowed us to take part in a new concept tender, which is barrier to the access currently.
So after we grew, we decided we needed to consolidate the volume of activities we generated thanks to acquisitions as well. So 2025 is the year of organic growth. The industrial plan was based on the concept of organic growth, and it aims at consolidating, optimizing, and producing value thanks to synergies. We might take into consideration some smaller but interesting operations. So the first half, so on organic growth, we are leaders in our market. In Italy, we cover 14% of shares of the healthcare market. We are still maintaining our healthcare DNA. We are, however, expanding on foreign markets. We've always said that our mission is to become a global company. So we enter the French market, the US market, and we also want to consolidate our position in the Middle East. So we are growing organically while guaranteeing quality and innovation to our solutions.
The market acknowledges our value. So our products are all CE certified, MDR certified. They are all based on cloud platforms if the customer wishes to. These platforms are based on microservices infrastructures, and we are also strengthening them through investments in AI because we see this new asset as an element to increase the productivity of our solutions. So we are sure AI will make our solutions even more performance-based. We won some Consip tenders and contracts that allowed us to work on volumes and turn into products, solutions that once were customized. For example, medical record for the Lombardy. It was very challenging because it involved 17 hospitals and a wide high population. We are growing according to our plan.
We will work on growth of margins, which is something we are achieving currently because some of the synergies we've developed are through financial, thanks to the relationships we've built and the jobs we've done. In order to become a single big growth, we are very focused on financial aspects. We want to generate revenue because at first, we focus on dimension, and the first half, compared to previous years, where revenues were affected by investments due to Consip contracts. We maintain a good balance. We didn't generate, but we didn't absorb cash either. It was very important for us. June 30th was the date for assessing the results of the concept contracts. We were able to generate invoices. We accumulated through concept contracts, and we generated other contracts through the activation of other concept contracts.
We are participating in other two tenders. We started healthcare two and healthcare four in terms of contracts. We can be very happy with our financial results because we moved to a very balanced situation and thus without making things more efficient. We are still outlining them that will be active by 2026. We acquired two new bonds to extend long-term debt maturities. We don't have imbalances anymore because all investments are covered by these bonds. This is the scenario. We maintain our position as a key player for digital transformation, which also means working on a healthcare system that has to be universal, accessible to everyone, and increasingly cheaper with better results.
Next slide, please. Maybe that's the slide everyone was waiting for, so the first half is a half with systemic growth. We had an acquisition which was in the pipeline and which had a EUR 5 million impact. We see that revenues are growing by 9.1%. We are moving from EUR 236.4 million to EUR 257.9 million. Our main driver for this growth is software, which accounts for EUR 156 million revenues. EBITDA is growing more than revenues thanks to our business mix because since we have this large portfolio, we can focus our commercial activity also on the sale of solutions that have high margins, so diagnostics, critical care in France.
Solutions that can be delivered immediately with good margins. EBITDA goes from EUR 40.7 million to EUR 46.7 million, so an increase by 14.8%. This is a very important result for us because we are looking at organic growth. This is aligned with our plan. We are performing slightly better than the plan. We had an increase in expenses in some areas, but we consider software accounted for EUR 5.7 million. We have plus 90 basis points in terms of EBITDA. So this generates growth for EBITDA. So moving from 7.8% to 16.6%. Net income is EUR 3.5 million with a growth of 20.5%. Next slide, please. Now let's deep dive on our business unit. As we said, software is our driver for growth. We are a tech company. So of course, we take into account other business types that are integrated. There are ancillary trusts, but software is our core.
We moved from EUR 138 million to EUR 156 million. EBITDA is growing by 15.6%. Going from EUR 37 million absolute value to EUR 43 million. We're looking at half on half, the first half of 2025 versus first half of 2024. We see recurring revenues above 52%, and we expect an improvement in the second half because in the first half, we delivered a series of solutions for Sanità 1, but this project is finished. This delivery will generate maintenance in the future, so recurring revenues. We will focus on those in the next few years. Our retention is really interesting, 96%. We have a ratio of tender win that is above 40%, 44%. Looking back, EBITDA covers 91.2%. We're perfectly aligned with our plan. Our customers in Italy are public. In the foreign markets, we have more private customers.
So we'll have 79% of both customers and 21% of private customers. Next, please. You can see the breakdown of our software solution. The leading aspect is HIS. So for hospitals, why they are so crucial? Because we, of course, we have to take into account the sessions of tenders. So the first tender was about the medical records. So this really accounts for the first cluster, the first tender. Then we are growing also in blood and diagnostics, which had a significant growth in Italy as well, then treating and caring, managing, and critical care. This is mainly a focus in France with Evolucare, but we are creating synergies for the Italian market. So we expect interesting results from this product line. So we have a wide range of products that covers all the needs of our customers.
Moving from medical record to booking systems or creation of financial statements. And we also provide other non-healthcare software and services. Next, please. Foreign markets will be our focus. As you saw, Italy is already consolidated. We, of course, will want to strengthen the delivery of our products. We want to strengthen our portfolio amongst our customers. Reservoir is growing and accounts for 35% of the software total revenues. Over one third of our revenues come from the rest of the world, 25% Europe, excluding Italy. This involves Evolucare in France and Germany, Austria, and Switzerland. And then we have a 10% customers extra Europe, especially for blood in the U.S., then Mexico, and Saudi Arabia. We have 300 hospitals using our solutions for blood. The rest of the world is a point of reference in terms of global growth.
We want to grow using our products rather than our solution. Here's a deep dive on the other business areas of our group. One is Care. It is always difficult to describe it strategically, but the presence of Care is not connected to margin, but to our vision of healthcare. For the future, one third of the population worldwide suffers from a chronic disease. So in Western countries, in emerging countries as well. And this percentage of population absorbs almost 75% of all healthcare resources. So chronic diseases need to be managed and optimized. And this is something that affects all companies, all countries. So for Care managing, so for access to hospitals, especially for chronic patients, accounts for 20 billion EUR. So I think there's a good market there for us. Care is an innovated channel for our technological solution because Care is like an operational center.
We need to leverage this and use more technology. We're doing that in other countries. For example, for managing diabetic patients. So for EUR 14 per day, we have 70% revenues. So technology allows for the management of diabetic patients. We are here, we're talking about engagement, coordination, and citizen empowerment. So this allows us to work on the demand and improve our offer. Care is stable in terms of revenue. There is a slight improvement in terms of efficiency. But care is strongly linked to our strategic vision and with the evolution of healthcare in the future. So we can't really ignore this aspect. Other two areas we have are automation. So robot automation for pharmacy management and ICT. So it's maintenance assistance, testing for companies and for our clients.
There appears to be a slight decrease, but this was due to the fact that we had to prioritize the strengthening of our solutions. So we want to grow while offering secure, safe solutions in terms of cyber defense. So this decrease has nothing to do with how the business is going, but to the allocation of resources in order to boost capability in terms of cyber defense. Yeah, we're looking at some financial highlights. Net working capital grew by EUR 15 million, more or less, compared to previous years. The growth is not as proportional as the growth of revenues. We have an increase of FTE. And this is due to the new arrangements and contracts. So we believe that this is positive, looking at how we are operating. We see a reduction of equities because there is a redistribution of dividends.
And then let's look at the next slide where we explain the bridge. We close 2024 with EUR 3,332.7 million. EBITDA was EUR 46.7 million. We bought a small portion of Tesi, which is now 100% GPI. And we acquired also Mondo EDP, which has to do with HR. It is a very liquid company. So this allows us to grow the HR world. We invested EUR 5 million. So we had these small operations. Then we had other non-financial operating assets and liabilities. Taxes accounted for EUR 9.4 million. Then CapEx intangible is EUR 12.4 million. And then tangible CapEx, EUR 9.7 million. This is the effect of Policoro Hospital. This is the first hospital of the group. This is a tool we want to use to better understand clinical processes and better understand how our solutions can be improved. And of course, we will test new products there to guarantee sustainability.
This is a pilot project. We are in a region where there's a need for hospitals, so all the beds are basically booked. We will investigate an innovation there because it will be a highly functioning hospital. Dividends approved, EUR 15.9 million. EUR 10.7 million net financial position. Other elements. The net debt is EUR 340.4 million. I don't see this as a negative aspect. I think we are growing organically. When you see a growth by EUR 10 million and 14.8% in terms of EBITDA, and considering the investment we had for the acquisition of Mondo EDP, I think this is a fairly strong position. I hope everything is clear. With the implementation of this plan and with the consolidation on this plan, I think the first half represented a change that can still be deemed as something positive. We'll have now a recap of the strategic business plan.
Thank you, Matteo, for walking us through the results of the first half. I think this underlines our path for the future. Our strategic business plan is based on four pillars. Our plan goes from 2025 to 2029, so five years, and it is based, as I said, on four pillars. The first is the consolidation of the national leadership position in Italy when it comes to software. We'll increase commercial activities for our customers through cross-selling, upselling, and trying to gain not that many new customers because we're almost everywhere, but we'll introduce innovation. We are investing in artificial intelligence. We don't think it is something as a standalone, but an innovation that can be applied to our products. So AI will provide new features to our processes, will support decisions, will support diagnostics, and care activities.
We, for example, implemented voice recognition and recognition of pathologies and the use of predictions to then better manage A&E. We also had capture of additional value from recent acquisition through Evolucare. We mentioned the vertical global products, the products that are accessible everywhere. They will be imported in all geographies. We have some areas that are a priority for us: France, the so-called DACH countries, so Germany, Austria, Switzerland, Spain, Mexico, the United States, Middle East. So we want to improve our presence there through significant activity. Third pillar was mentioned by Matteo already, but it is the enhancement of the organizational model. We are trying to shift our mentality. We've always been project-oriented, but we'll become product-oriented, so we'll have to rearrange our job. And we think as a global company, so not Italy first, then the rest of the world. We'll have to think globally.
My colleagues already mentioned this, but the world of care is focused on telemonitoring of virtual care to keep patients at home in order to reduce costs. Cyber defense is also important when it comes to ICT to protect patients' data and to have safe services. And then we will also invest in automation. It will not be limited to pharmacies, retailers, or hospital pharmacies, but we will look at automation of oncologic infusion drugs. This is particularly interesting innovation. Next slide, please. These are our targets. Looking at 2029 in terms of revenues, CAB is expected to be above 80% with revenues above EUR 700 million. We want to have a reservoir share of 30%. Margin will be above 25% in order to create an efficiency to support solutions that have a higher margin. CapEx will be around 79% of revenue. This is quite standard for the sector.
We'll increase our ROIC to 15% while maintaining the debt, the duration between NFP and EBITDA, below 2.5. So the strategic business plan has a sustained growth with a strong focus on rest of the world and a strong focus on increasing value. That's it for me. I'd like to leave the floor to Lorenzo Giollo. He will manage Q&A.
We received many questions. You can still send more should you need to do so. I'm going to read the first question. The first is about 2025 guidance after the first half. What's your minimum target, Matteo?
I said that the first half is in line with our targets and is even better, and we hope that we can really attain our targets. So we will respect and attain our plan. In the press release a few days ago, I guess, it states that some software projects are being delivered and implemented, but you're also starting new projects.
Do you expect a linear trajectory? What is the revenue share for the first half of 2025 derived from concept agreements and contracts?
As I said, the breakdown of revenues divided by product lines is affected by the concept tenders. We finished the first tender for 2025. We started with Sanità 1 and Sanità 4. We don't expect having a void, but it will depend on our clients. We might slow down in some areas, but currently, our production structures are at capacity. And looking at industrialization, we expect to have efficiency rather than void. Looking at revenue share and Sanità 1, we're looking at EUR 82 million for 2024 coming from concept. And the first half, we're looking at EUR 46 million.
Thanks, Matteo. Another question to you related to software, which is our main area. So the growth of domestic software thanks to concept is really a source of satisfaction, but it requires a lot of capital. If you cannot really manage the capital because there are delays, will prices change?
This is a variable you can control. In all tenders, we often base our success on two components: the value of the project and the price. Of course, we will look at timings for receiving, for being paid. So we want to compensate the price and other aspects. When we won the tenders, we did because of the value of our technical offering. So in some cases, the market decides the value. In the medium and long term, of course, we should consider the incidence of financial earnest.
A question for the care area. I think you partially answered this during the presentation. Looking at the shift in purchase from public acquisition, do you still need Care because there aren't players in this space? Will you disengage via natural attrition? So will you still participate?
I appreciate some investors are a bit allergic to Care, but we are a tech company, but we are interested in how the world of healthcare will evolve over time. It's not possible that patients either go to the hospital or don't get treated. While in the hospitals, we treat pathologies, Care represents a tool, a channel, a way to interact with citizens. We do not want to gain something from bookings, and over half of Italians go through our systems to book an appointment. Care is a channel to build an innovative business model for Care.
We're not interested in care in some contexts. We are stopping using it if the customer doesn't want to use technology and management of these services. Looking at CapEx in the first half of 2025, CapEx had high results, so 11% compared to 7% that was planned. We had six assets.
Can you give more information on EUR 10 million for materials? Is it the hospital? You just opened in Basilicata. What's the rationale for CapEx in 2025, 2026?
I confirm that we will respect the plan forecast in terms of CapEx incidence. Of course, with CapEx contracts, we received massive contracts, and we invested highly because with this type of procurement, our customer focused not as much on CapEx. So this allowed us to invest to create products. So it is not about an overestimate of CapEx. We made them based on revenue generation for the future.
We will have recurrent revenues. So CapEx has to be looked at in the long term. So as per the plan, the incidence of CapEx will be 7% or 9%. This could be improved if AI will allow us to create solutions with a quicker turnaround. EUR 10 million tangible assets are related to the hospital in Basilicata purchase of devices. It is quite a big hospital. It's 70 beds. We also refurbished Policoro in Trento, our diagnostic center, and we also bought the automation company that will produce robots for the preparation of infusion cancer drugs. This has already been discussed, so I won't go at length into this. Looking at invoicing in the press release, I think this refers to the latest press release. You mentioned an accelerated invoicing for concept.
I think we had to wait the end of the National Recovery and Resilience Plan because we were struggling to receive invoicing because it was very complicated in terms of bureaucracy. To the end of NRRP, four clients to deliver after this first deadline. I hope that the client will invoice in a quicker way, but that's my own impression. Let's see what happens. We have very attentive investors because new structure and operational efficiency in the press release.
You mentioned that the new structure will be operational from 2026, and this is aligned with your projects. Can you please give us more details about this based on all the benefits you expect to see?
Well, we are rearranging our activities based on vision of countries, geographical areas with a commercial connotation. So Italy or GPI USA or GPI Iberia will sell the whole portfolio of products. Each country will have a commercial vocation. At the same time, we'll centralize all factories, even if in different areas. To make things more efficient, we have seven or eight platforms for blood over the course of the years. We want to reduce them in order to reduce costs. We want to make things more efficient in terms of production costs. We will have better synergy. We'll centralize corporate activity, which is very fragmented because we have several legal entities that will disappear over the course of the years because we want to foster this sense of belonging to the same groups. In terms of finance, HR, we centralize everything, and this will save significant money for the group.
I think this will be my last question about strategic partnerships. Possible purchase from funds. What will be the timings in terms of update? Price, can you confirm? Can we give a deadline in the press release in July?
It was mentioned public acquisition offer. We know about this from the press. We don't have real information about the dialogue with potentially interested partners. As soon as we have more information, we will, of course, communicate that to the market. I'm going to read this question. This is about the outlook and the opinion on cash flow generation distribution over the next years. As NF implied, NF calculated in 2029 versus 2027, in slide 18, implies an increase of financial position. We were quite conservative in our targets and plans, but I'll leave this to you. As I said, the plan is oriented to strengthening and developing synergies and making things more efficient. So we want to generate cash flow. However, in 2029, we expect to see NF EBITDA debt to be lower.
Our goal is to have a 2.5% ratio. Of course, if something extraordinary happens, we can't know that, but the growth is also associated with financial position. We work with public customers, and there are delays in payments. So, of course, cash management is a bit different. Our goal is to maintain the NFP EBITDA ratio below 2.5. So we will, of course, respect our targets and plans.
I don't see further questions. So thank you very much, Matteo and Fabrizio. Thank you very much to all of you for your attention. Thank you for asking your question. GPI is a strategic healthcare company focused on software. We are an increasingly big player in Italy and Europe, rest of the world. We are always happy to receive your questions or requests via email. Thank you very much for your attention once again, and I wish you a nice day.