Original-Research: Health Italia S.p.A. - von GBC AG

Einstufung von GBC AG zu Health Italia S.p.A.

Unternehmen: Health Italia S.p.A.

ISIN: IT0005221004

Anlass der Studie: Management Interview

Empfehlung: Management Interview

Letzte Ratingänderung:

Analyst: Matthias Greiffenberger, Marcel Schaffer

"[.] we aim to strengthen our position as a leader in the healthcare

industry by prioritizing patient-centeredness, fostering innovation and

embracing digitization."

 This management interview features Livia Foglia, the CEO of Health Italia

S.p.A. GBC will soon initiate research coverage on Health Italia, and the

company has recently published its guidance, setting a revenue target of 50

to 52 million euros for the year 2026. Additionally, they aim for an EBITDA

of 12 to 14 million euros and a positive net financial position ranging

between 15.0 and 16.0 million euros. Today, we have the opportunity to

speak with Livia Foglia about the company's market positioning and future

prospects.

GBC AG: How would you describe your business model to investors who are not

familiar with your company, considering that you are the leader in the

Italian market?

Livia Foglia: Our company, which is a group, operates in the healthcare and

wellbeing market. We are an integrated operator offering a complete range

of solutions to improve the quality and accessibility of healthcare,

assistance, and welfare services. All the activities are grouped into

different companies and business lines (Promotion and Support Services,

Telemedicine, and Medical services) with significant opportunities for

cross-selling strategies and synergies among them.

Through Health Italia, our holding company, we promote corporate and retail

supplementary healthcare solutions to individuals and families in need of

healthcare coverage, as well as to companies for their employees as a

benefit. We also manage welfare services and flexible benefit plans for

companies or public entities' employees.

Through our subsidiaries, Health Assistance and Health Point, we provide

assistance services as a third-party administrator (service provider)

dedicated to assisted individuals who have subscribed to a healthcare plan.

We also offer innovative telemedicine and traditional medical services.

To support our business, we are constantly developing and improving our own

digital platforms that help us manage activities and seize new

opportunities.

Our distribution model is multichannel and based on different channels,

with the main one being our network of promoters, consisting of

approximately 2,000 individuals working throughout Italy. We also

collaborate with Banks Branches. Health Italia is the only company in Italy

to promote supplementary healthcare solutions through the banking channel.

Additionally, we work with other external independent distribution networks

interested in selling solutions for wellbeing and health protection.

GBC AG: Germany has a healthcare system with two pillars, namely Statutory

Health Insurance (Gesetzliche Krankenversicherung, GKV) and Private Health

Insurance (Private Krankenversicherung, PKV). In Italy, however, there is

an additional pillar consisting of Mutual Aid Societies and Health Funds,

which are voluntary health insurance schemes. Can you provide an overview

of this system to investors who may not be familiar with it?

Livia Foglia: In Italy, the healthcare system is composed of three areas

called Pillars: the first is represented by the Public National system, the

second is represented by Funds, and the third consists of private insurance

companies.

Funds include Mutual Benefit Companies and Healthcare Funds, which are

intended to complement the public health service and provide support. These

entities are non-profit and individuals who benefit from their services

become members rather than clients. They are registered in the Registry of

Healthcare Funds at the Ministry of Health, and the government provides

significant tax benefits (deductibility) to support the second pillar.

GBC AG: Italy offers flexible benefits through customizable remuneration

plans, enabling employees to choose from various options. How do these

flexible benefits present interesting opportunities for your company?

Hi Welfare is the division specifically dedicated to corporate welfare

services. Through our online platform, we manage flexible benefit programs

for companies and public entities' employees. With this formula, employees

can choose the composition of their individual welfare plan according to

their needs. We provide seven benefit areas:

- Health care plans

- Assistance: home care for the disabled or elderly

- Leisure: culture, sports, travel

- Supplementary pension

- Education: school fees, education expenses, from kindergarten to college

- Shopping vouchers

- Season tickets for public transportation

Additionally, with the support of Health Point, we can offer medical

services and telemedicine directly within company headquarters by setting

up dedicated spaces for services, check-ups, or in-house health screening

campaigns. This represents an important opportunity for our company from a

dual perspective.

Protective strategy: By being able to satisfy customers' welfare needs

beyond just health coverage, we prevent competitors from entering as their

exclusive suppliers and potentially stealing our customers.

Proactive strategy: We have two access channels for the corporate target

audience. Since a company may be interested in health coverage only or a

comprehensive welfare plan, we have the ability to meet their demands in

both cases. Furthermore, after acquiring the customer, we can employ a

cross-selling strategy to offer additional services in which they were

initially not interested.

GBC AG: Which primary markets does your company currently operate in, and

how do you envision the future development of these markets? How will these

market dynamics impact your company?

Livia Foglia: We operate in the healthcare market, where in 2020, the

national healthcare expenditure reached 160 billion euros. Out of this

amount, 122 billion euros were covered by public funds, while private

individuals contributed 38 billion euros. Among the private expenditure, 34

billion euros were paid out of pocket by citizens, with only 4 billion

euros being brokered by healthcare funds and insurance companies. The

untapped portion of this market represents our main addressable market.

In recent years, intermediated healthcare spending in Italy has been

steadily increasing, driven by a reduction in state intervention and the

aging population. The growth in the second pillar can be observed through

the data on entities registered in the Registry of Healthcare Funds at the

Ministry of Health. These entities include Funds and Mutual Benefit

Companies that enjoy tax benefits (excluding insurance companies). The

number of beneficiaries and registered entities has risen from

approximately 7 million in 2013 to 14 million in 2019.

The corporate welfare market in Italy has also experienced growth, with the

adoption of welfare plans by companies for their employees doubling from

2017 to 2021. The average budget allocated to welfare measures has also

increased, surpassing EUR1,000 in 2021.

Furthermore, on a global scale, since the pandemic in 2020, remote health

consultations have significantly increased from 0.1% to 43.5%. It is

projected that around 40% of patients will continue to use telemedicine, a

substantial increase compared to the pre-pandemic level of 11%. In 2021,

telemedicine accounted for 35.5% of the total revenue in the healthcare

sector, amounting to 62.4 billion dollars. Experts predict a compound

annual growth rate (CAGR) of 36.5% from 2022 to 2028, reaching a market

value of $577 billion in 2028.

These data clearly indicate the opportunities within the sector. The

presence of growing reference markets, as projected above, suggests an

increase in turnover across all areas of our Group's business.

GBC AG: In light of the rapidly evolving technological landscape, how does

your company stay ahead of emerging trends and leverage innovation to

maintain its market leadership in Italy?

Livia Foglia: Significant technological investments are currently underway

to further implement the ongoing digital transformation that has been in

progress for several years. The Group is specifically investing in new

software to serve the main business areas, including CRM (Customer

Relationship Management), operations center management software,

back-office analysis software, and cloud programs and hardware. This

involves migrating to servers provided by major suppliers such as Oracle or

Microsoft, benefiting from their computational capacity.

Furthermore, the entire resident server infrastructure is being replaced

with cloud servers, which effectively addresses data protection concerns

and enhances cyber security. An important investment is also being made to

replace all existing firewalls, further bolstering security measures.

From a commercial perspective, a significant investment is being made to

integrate the current sales channels with online access and explore

distribution via modern online sales platforms. This initiative aims to

enhance the company's presence in the online market and capitalize on the

opportunities presented by e-commerce.

GBC AG: Looking ahead, where do you envision your company in five years?

Livia Foglia: The near future scenario for the health sector, particularly

regarding supplementary and/or complementary health coverage, presents a

significant challenge for the global community.

The healthcare landscape is undergoing transformative changes, exploring

innovative business models, and creating fresh opportunities.

Simultaneously, new players from the technology, consumer products,

services, and other sectors are entering the vast global health

marketplace, while consumers are increasingly embracing technology-enabled

solutions.

In this evolving global health space, Health Italia is making substantial

advancements by prioritizing patient-centricity, fostering innovation, and

embracing digitization. Through these efforts, we aim to strengthen our

position as a leader in the industry by adapting to the demands of diverse

populations and varying needs. We are committed to ongoing investments that

focus on technological innovation, service enhancement, and customer base

consolidation.

GBC AG: Thank you very much for the interview. 

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/27405.pdf

Kontakt für Rückfragen

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung

Date (time) of completion: 20.07.2023 (14:00)

Date (time) of first publication: 25.07.2023 (12:00)

-übermittelt durch die EQS Group AG.-

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.

Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung

oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

Quelle: dpa-AFX