Georgia Capital PLC · LSE:CGEO
Georgia Capital — Investor Presentation (February 2020)
97 slides from Georgia Capital's investor presentation, Feb 27, 2020
Slide 1: Investor presentation
Investor presentation 10 x = 10 y 27 February Page 1 2020
Slide 2: Forward looking statements
Forward looking statements Disclaimer This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, p
Slide 3: Content
Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices Page 3
Slide 4: CGEO:LN performance
CGEO:LN performance LSE premium listed, with more than 90% institutional shareholder base GCAP shareholders allocation by geography Number of outstanding shares as at 31-Dec-19 As of 26 February 2020 39,384,712 (2,650,375) USA Average daily 30.2% 3,435,438 37,441,971 28.7% (2,727,804) trading volume
Slide 5: Our portfolio at a glance
Our portfolio at a glance Management platform Public portfolio Private portfolio – GEL 1,225mln1 Third-party – GEL 1,028mln1 managed capital Late Stage – GEL 693mln1 Pipeline - GEL 93mln1,3 Georgia Water Housing P&C Education Healthcare Group Utility Development Insurance 70.6% 100% 100% 100% GEL 56
Slide 6: Key portfolio highlights | December 2019
Key portfolio highlights | 31 December 2019 Gross cash invested of GEL 1.2bln Net cash invested of GEL 395mln Portfolio fair value of GEL 2.3bln Listed Private late stage Private early stage Pipeline Original investment 252 129 214 92 10 99 194 62 96 56 10 9 MOIC1 2.2 7.9 2.6 2.1 19.7 1.1 1.3 1.2 0.
Slide 7: Solid track record
Solid track record Created three listed companies from Georgia, on the premium segment of the London Stock Exchange Acquisitions Capital raise Exit IRR The Georgia Capital management team Uniquely positioned given the access 121% IRR from GHG IPO has a track record of executing more to capital in a
Slide 8: Acquisitions in 2019 | private portfolio
Acquisitions in 2019 | private portfolio July 2019 August 2019 Buckswood International Alaverdi winery November 2019 February 2019 May 2019 • The leading school in the mid-level • Purchase of 100% equity stake Redberry segment Qartli wind farm Kempinski Hotel • 244 hectares of vineyards and 135 Marc
Slide 9: Content
Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices Page 9
Slide 10: Georgia Capital – Your ground floor investment opportunity
Georgia Capital – Your ground floor investment opportunity Capitalizing on fast-growing economy with strong governance, management and access to capital Access to capital Access to management Three fundamental enablers Strong corporate governance Page 10
Slide 11: Strong corporate governance
Strong corporate governance How we run Georgia Capital Strong board, composed solely of independent directors with extensive international experience Approximately 35 employees at the management company level Highly experienced management team in each portfolio company with a strong measure of indep
Slide 12: Strong corporate governance
Strong corporate governance Aligned shareholder and management interests by share compensation Platform costs - targeted at maximum c.2% of MCAP Key things to know Cash preservation is a key target for GCAP: two thirds of total 1 operating expenses are related to share-based compensation. 33% c. 1%
Slide 13: Managing investments
Managing investments Share ownership plan of management in portfolio companies Investment stage Pipeline Acquisition/ Early Late Target to Listed Possible Entrance completion exit Discovery Young Portfolio Large Portfolio Mature Portfolio of Exit Companies Companies Companies Sector Digital Educatio
Slide 14: Two new strategic priorities
Two new strategic priorities Over time Georgia Capital will: 1. Decrease share of listed assets to 20% and 2. manage third-party money Over the next 5 years we will reshape our balance sheet 31-Dec-2019 In 5 years Management company 20% 46% Third-party managed capital 54% 80% GCAP investment portfol
Slide 15: Our investment philosophy
Our investment philosophy We will pick well, we will manage very well and sell extremely well 10x = 10y 2nd exit Cash generation at both GCAP and portfolio company level is a key success factor 1st exit: cash-out ▪ Trade sale, IPO, Fund, Promote ▪ Cash inflows through leveraging up and/or Entry divi
Slide 16: Capital allocations
Capital allocations 360-degree analysis – a strong foundation for value creation Buying assets at attractive prices is a key part of our investment philosophy Targeting to buy assets at a higher discount to their Discounts at 26 February 2020 listed peers than GCAP’s fair value discount New opportun
Slide 17: Capital allocations: Buybacks
Capital allocations Buybacks US$45 million share buyback programme, commenced in Jun-18, was completed in Aug-19 US$ 45 million 3,336,843 GBP 10.45 Programme amount Shares bought back Average price of shares bought back On 1 August 2019 we announced market purchase of CGEO shares of up to US$ 20 mil
Slide 18: Capital allocations: Clear exit paths
Capital allocations Clear exit paths Trade sale IPO Fund Promote Water Utility x x x P&C Insurance x Housing Development x Renewable Energy x x x Hospitality & Commercial x Beverages x x Education x x Auto Service x Digital services x Exit options are set prior to making an investment decision Page
Slide 19: How we evaluate investment performance
Capital allocations How we evaluate investment performance ROIC, MOIC and IRR combination is the key decision making matrix ROIC for financing projects and reinvestment MOIC and IRR at GCAP level at portfolio companies’ level Money multiples. We want to know achievable money multiples ROIC. We measu
Slide 20: Content
Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices Page 20
Slide 21: NAV Statement | December 2019
NAV Statement | 31 December 2019 4. Liquidity 1. Value 2a. 3. Operating GEL thousands unless otherwise noted Dec-18 2b. Buybacks 2c. Dividends management/ FX Dec-19 Change % creation Investments expenses /Other Listed Portfolio Companies GHG1 520,332 (199,127) 112,856 - (3,982) - - 430,079 -17.3% Bo
Slide 22: NAV per share growth in 2019
NAV per share (GEL) growth in 2019 NAV per share up 5.7% to GEL 46.84 during 2019 GEL unless otherwise noted ➢ NAV per share up 5.7% to GEL 46.84 on the back of 3.9% growth in NAV and 1.7% decrease in number of shares outstanding ➢ The private businesses led to 10.1% growth in NAV per share, which w
Slide 23: NAV growth in 2019
NAV growth in 2019 Value creation of GEL 134 million contributed 8.0% to NAV growth GEL millions unless otherwise noted NAV -2.0% 10.0% 6.7% -7.4% -2.0% -1.3% 3.9% change % 113 (125) 168 (34) GEL 1,754 (22) GEL 1,688 (34) ➢ 3.4 million CGEO share issuance valued at GEL 113 million for the acquisitio
Slide 24: Value creation in 2019
Value creation in 2019 Operating Multiple Change Portfolio Businesses Greenfields Value Creation Performance and FX GEL thousands (1) (2) (3) (1)+(2)+(3) Listed (33,937) GHG (199,127) BoG 165,190 Private 109,745 34,961 23,602 168,308 Late Stage 136,926 - 20,083 157,009 Water Utility 78,954 - (4,001)
Slide 25: Capital allocations | FY19
Capital allocations | FY19 GEL millions Investments Buybacks Dividends Total1 Investment highlights ➢ GHG: Acquisition of 13.6% holding in GHG as part of Share Exchange Facility BOG - - (25) (25) Listed portfolio ➢ Renewable Energy: Acquisition of Hydrolea HPPs and Qartli WPPs GHG 113 - (4) 109 ➢ Ho
Slide 26: GCAP Performance highlights | 2019
GCAP Performance highlights | 2019 Income statement highlights Cash flow highlights GEL millions FY19 GEL millions FY19 FY18 Change Group consolidated 229 164 +40% Dividend income 122 operating cash flow* * Including GHG, adjusted for IFRS16 impact. Net interest expense (7) GCAP Standalone interest
Slide 27: Liquidity management at Georgia Capital
Liquidity management at Georgia Capital GEL 493 million Liquid assets & Loans issued | 31-Dec-2019 Net debt | 31-Dec-2019 ► Georgia Capital issued inaugural US$ 300mln international corporate bonds in March 2018 Loans issued (42%) GEL millions Net debt overview | 31-Dec-2019 Cash & liquid funds (58%
Slide 28: Portfolio performance highlights | FY19
Portfolio performance highlights | FY19 GHG1 Private late stage Water Utility Housing Development P&C Insurance +13.3% 963.1 849.9 +16.6% +9.6% +11.6% +25.7% -11.1% +21.3% +14.0% 132.3 154.2 125.2 149.1 163.5 +7.3% -6.8% 99.6 99.0 132.4 117.7 NMF 67.5 75.3 95.1 81.6 11.9% 83.4 17.1 18.3 20.9 19.5 16
Slide 29: Content
Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices Page 29
Slide 30: Georgia Healthcare Group (GHG) overview
Listed portfolio Georgia Healthcare Group (GHG) overview http://ghg.com.ge/ Total healthcare market (including healthcare services and pharmacy) Investment rationale GEL million CAGR ▪ Very low base: healthcare services spending per capita only US$ 308 (EU average is US$ 3,2111) 4,765 20–21 ▪ Growin
Slide 31: Georgia Healthcare Group (GHG) overview (cont’d)
Listed portfolio Georgia Healthcare Group (GHG) overview (cont’d) http://ghg.com.ge/ Stock price performance Financial metrics (GEL millions) 2015 20161 2017 2018 2019 Change 4.50 GBP 1.70 Healthcare services EBITDA, excl. IFRS 16 54 74 70 76 844 9.9% 4.00 IPO price Pharmacy and distribution EBITDA,
Slide 32: Bank of Georgia (BoG) Overview
Listed portfolio Bank of Georgia (BoG) Overview http://bankofgeorgiagroup.com/ Market opportunity Investment rationale ▪ The first entity from Georgia to be listed on the premium segment of the Main Market of the Banking sector assets, loans and deposits London Stock Exchange (LSE:BGEO) since Februa
Slide 33: Bank of Georgia (BoG) Overview (cont’d)
Listed portfolio Bank of Georgia (BoG) Overview (cont’d) http://bankofgeorgiagroup.com/ Stock price performance Financial metrics (GEL millions) GBP 17.14 2015 2016 2017 2018 2019 Change 23 as of 26-Feb-2020 ROAE 21.9% 22.2% 25.2% 26.4%2 26.1%3 -0.3ppts 18 NIM 7.7% 7.4% 7.3% 6.5% 5.6% -0.9ppts NPL c
Slide 34: Water utility business overview
Private late stage portfolio Water utility business overview Investment rationale Effect of new consumers on the market ▪ Regulated monopoly in Tbilisi and surrounding districts with high entry barriers ▪ Sectoral output increasing at a robust growth rate (on average 9.5% in the last 10 years) 13.6
Slide 35: Water utility business overview (cont’d)
Private late stage portfolio Water utility business overview (cont’d) Key highlights | 31 December 2019 Financial metrics (GEL millions) 2015 2016 2017 2018 2019 Change GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Total revenue 119 127 135 149 163 9.6% Of which, utility revenue 10
Slide 36: Housing development business overview
Private late stage portfolio Housing development business overview Investment rationale Significant room for further growth in mortgages ▪ Shortage of housing from Soviet era combined with Georgian tradition of multi generations living under one roof - average household size is significantly higher
Slide 37: Housing development business overview (cont’d)
Private late stage portfolio Housing development business overview (cont’d) Key highlights | 31 December 2019 Financial metrics (GEL millions)1 2015 2016 2017 2018 2019 Change GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Apartments sales revenue 45 96 92 95 55 -41.7% Construction
Slide 38: P&C insurance business overview
Private late stage portfolio P&C insurance business overview Market share | YTD Sep-19 Market composition by Investment rationale (earned premium, gross) product lines • Significantly underpenetrated P&C insurance market in Georgia (0.6% penetration) • Market leader with a powerful distribution netw
Slide 39: P&C insurance business overview (cont’d)
Private late stage portfolio P&C insurance business overview (cont’d) Key highlights | 31 December 2019 Financial metrics (GEL millions) GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change 2015 2016 2017 2018 2019 Change Earned premiums, net 47 50 63 67 75 11.6% LTM net income 18 182 3.3
Slide 40: Renewable energy business overview
Private early stage portfolio Renewable energy business overview Investment rationale Electricity supply and consumption, 2019 ▪ Growing electricity market as supply lags behind the increasing demand, creating opportunities. ▪ Underutilized energy resources - availability of economically feasible hy
Slide 41: Renewable energy business overview (cont’d)
Private early stage portfolio Renewable energy business overview (cont’d) Key highlights | 31 December 2019 Financial metrics (GEL millions) GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change 2015 2016 2017 2018 2019 Change Development Capex NMF NMF 77 68 33 -51.8% At acquisition price
Slide 42: Hospitality and commercial real estate business overview
Private early stage portfolio Hospitality and commercial real estate business overview Investment rationale Arrivals of tourists and tourism revenue | Georgia ▪ Record number of tourists visiting Georgia every year: 5.1 million visitors in 2019 (up 6.8% y-o-y) Source: Georgian National Tourism Admin
Slide 43: Hospitality and commercial real estate business overview (cont’d)
Private early stage portfolio Hospitality and commercial real estate business overview (cont’d) Key highlights | 31 December 2019 Financial metrics (GEL millions)2 GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change 2016 2017 2018 2019 Change NOI3 from operating leases 3 3 5 6 40.8% NAV
Slide 44: Wine business overview
Private early stage portfolio Wine business overview Investment rationale Vineyard productivity – 2019 (TON/HA) ▪ Georgia is considered the “cradle of wine” with a rich, 8,000-year history of wine-making and home to over 500 unique grape varieties ➢ At 5.1 tons per hectare, grapes yield is three tim
Slide 45: Wine business overview (cont’d)
Private early stage portfolio Wine business overview (cont’d) Key highlights | 31 December 2019 Financial metrics (GEL millions) GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change 2015 2016 2017 2018 2019 Change Wine Revenue 18 18 20 29 42 43.6% GCAP ownership 87% 80% +7ppts Gross profi
Slide 46: Beer business overview
Private early stage portfolio Beer business overview Strong export market for carbonated soft drinks (CSD) Investment rationale ▪ Georgia falls behind beer consumption per capita against EU ▪ Georgia’s favorable trade regimes (free trade agreements with EU and China) Growing market provide potential
Slide 47: Beer business overview (cont’d)
Private early stage portfolio Beer business overview (cont’d) Key highlights | 31 December 2019 Financial metrics (GEL millions) Annually Semi-annually GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change 2017 2018 2019 2H18 1H19 2H19 Beer Revenue 18 29 44 16 18 25 GCAP ownership 87% 80%
Slide 48: Attractive service business – Auto Service
Pipeline Attractive service business – Auto Service We aim to build a diversified business model combining different auto-related services to capitalise on the large and growing automotive services market Auto park in Georgia (‘000) Room for growth in the highly fragmented auto service market in Geo
Slide 49: Periodic technical inspection business overview
Pipeline Periodic technical inspection business overview Investment rationale Key highlights | 31 December 2019 ▪ Georgia’s Auto park continues to grow steadily, with 7.4% CAGR during the years 2012-2019 ▪ Georgia lags behind developed countries by number of private passenger cars per capita, showin
Slide 50: Education business overview
Pipeline Education business overview Fragmented education market offers attractive opportunity for a scaled player Industry investment rationale Medium term demand outlook for private high schools ➢ Highly fragmented private school market currently- 10% private in 5-years - 20% private ➢ Large and g
Slide 51: Acquisitions of majority stakes in three leading schools
Pipeline Acquisitions of majority stakes in three leading schools Premium Mid-level Affordable 1 British-Georgian Academy 2 Buckswood 3 Green School Transaction ➢ Purchase of 70% equity stake. ➢ Purchase of 80% equity stake. ➢ Purchase of 80% - 90%1 equity stake. highlights ➢ Valued at 6.4x EV / EBI
Slide 52: Acquisition of the leading Georgian digital marketing agency
Pipeline Acquisition of the leading Georgian digital marketing agency Acquisition of Redberry enables us to have a platform for investments in the digital business US$ 2.8 million new capital injected for digital start-up development About Redberry 1 ➢ One of the most successful Georgian digital mar
Slide 53: Content
Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices Page 53
Slide 54: Sovereign ratings with stable outlook and favourable macro fundamentals
Sovereign ratings with stable outlook and favourable macro fundamentals Key Ratings Highlights General Facts Rating Agency Rating Outlook Affirmed Ba2 Stable September 2019 BB Stable October 2019 Georgia BB Stable February 2019 Georgia is favorably placed among peers Fitch Rating Country Country Rat
Slide 55: Georgia’s key economic drivers
Georgia’s key economic drivers Top performer globally in WB Doing Business over the past 12 years Liberal economic ▪ Liberty Act (effective January 2014) ensures a credible fiscal and monetary framework: policy ▪ Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%; ▪ Business friendly env
Slide 56: Institutional oriented reforms
Institutional oriented reforms Ease of Doing Business | 2020 (WB Doing Business Report) Economic Freedom Index | 2019 (Heritage Foundation) UK 7 New Zealand 1 Singapore 2 USA 12 US Georgia 6 7 Estonia 15 Top 8 in Europe region out of 44 Georgia 16 Norway 9 Latvia 35 countries Lithuania 11 Estonia 18
Slide 57: Methodological changes led GDP and external measures to improve
Methodological changes led GDP and external measures to improve Nominal GDP and GDP Per Capita CA and FDI After transition, 2018 GDP increased by 8.6%, out of which 3% was due CAB (SNA 1993) CAB (SNA 2008) FDI (SNA 1993) FDI (SNA 2008) 50 6,000 20% to methodological changes, and 5.6% due to improved
Slide 58: Diversified resilient economy
Diversified resilient economy Gross domestic product Diversified nominal GDP structure, 9M19 Source: Geostat, internal estimates Source: Geostat Other Industry Healthcare Communication 8% US$ billion 14% 4% 3% 20 16% 12% Education 7.4% 6.4% 4.4% 4.8% 4.8% 5.2% 5% 3.6% 3.0% 8% 15 2.9% Trade Accommoda
Slide 59: Room for further job creation
Room for further job creation Unemployment rate down 1.3 ppts y-o-y to 12.7% in 2018 UNDP Human Development Index Sources: GeoStat Sources: UNDP 0.79 0.79 0.78 0.78 0.77 0.77 18.3 17.4 17.9 0.76 2000 17.4 17.3 17.2 16.9 20 0.75 0.74 15.1 15.4 14.6 14.1 14.0 0.74 1900 0.73 13.9 13.9 0.73 0.73 13.5 12
Slide 60: Inflation targeting since 2009
Inflation targeting since 2009 Inflation y-o-y vs. inflation target Inflation y-o-y Source: GeoStat Sources: NBG, GeoStat 10 Core inflation closer to target 10 Following a temporary supply side shock and inflationary expectations stemming from depreciated NEER, we expect inflation to converge to the
Slide 61: Current account deficit down to historic lows
Current account deficit down to historic lows Current account balance (% of nominal GDP) Exports and Re-exports, US$ billion Sources: NBG Source: NBG ➢ Double digit shrinking in the trade deficit helped CAB to improve to a 10.0 30% historic low of under 3% in 9M19 20% 0.8 Service exports Goods expor
Slide 62: Diversified sources of capital
Diversified sources of capital Strong foreign investor interest Visitors and tourism revenues Sources: GeoStat Sources: GNTA, NBG 2,500 25% 8.7 9.4 3600 10.0 7.9 3100 6.7 2,000 20% 6.3 8.0 2600 5.7 5.9 1,500 11.6% 10.9% 12.1% 15% 2100 4.7 6.0 10.4% 7.5% 8.4% 1600 3.1 1,000 6.9% 6.2% 7.2% 7.1% 10% 4.
Slide 63: Tourism sector on the rise
Tourism sector on the rise Tourism revenues to GDP Spending per arrival, 2017 Sources: NBG, Geostat Source: WDI 3600 20% 25% 1600 1496 20% 18% 1310 3100 17% 20% 1400 2600 14% US$ million 13% 1200 2100 10% 10% 15% 9% 1000 857 848 823 1600 6% 10% 771 763 757 714 800 692 661 629 1100 591 555 527 600 5%
Slide 64: Diversified foreign trade
Diversified foreign trade Goods’ Trade Deficit Oil imports Source: GeoStat Source: GeoStat In 2019, the trade deficit narrowed by 8.5% y-o-y to US$ 5.3 billion from US$ 5.8 billion, further 1200 Oil imports, US$ mn Oil imports, % change, y/y decreasing FX pressure 90% 0 50% 1000 40% 800 70% -100 30%
Slide 65: Diversified foreign trade
Diversified foreign trade Imports of Goods, contribution to growth Foreign Demand, 2019 Source: NBG Source:, Geostat Investment goods Intermediate goods Consumer goods Imports y/y Machinery and transport equipment 30% 25% Crude materials, inedible, except fuels 20% 8% 24% Beverages and tobacco 15% 1
Slide 66: Prudent monetary policy ensures macro-financial stability
Prudent monetary policy ensures macro-financial stability International reserves Monetary policy rate Sources: NBG Sources: NBG 3700 3700 NBG gradually increased its refinancing rate by 250 basis points up to 9%, aiming to alleviate inflationary pressures due to the NEER depreciation and negative ex
Slide 67: Flexible exchange rate regime as a shock-absorber
50 -200 -150 -100 0 -50 100 150 200 250 0 20 40 60 80 100 120 140 160 180 Jan-14 220 -80 Jan-13 Mar-14 Sources: NBG Sources: NBG Apr-13 May-14 Jul-13 Jul-14 -120 Sep-14 Oct-13 Nov-14 4040 Jan-14 Jan-15 120 Apr-14 Mar-15 4040 Jul-14 May-15 EUR/GEL Oct-14 Jul-15 Jan-15 Sep-15 Apr-15 Nov-15 27202020 60
Slide 68: Low public debt
Low public debt Public debt as % of GDP is capped at 60% Breakdown of public debt Sources: MOF Source: MOF, as of December 2019 70% 50% 50% 40% 30% Multilateral 30% 56% 20% Domestic External 10% 20% 80% 10% -10% 0% 2016 2010 2011 2012 2013 2014 2015 2017 2018 2019E 2020F 2021F 2022F 2023F Bilateral
Slide 69: Growth-oriented government reforms (2019-2020)
Growth-oriented government reforms (2019-2020) 1 Structural Reforms 2 Promoting Transit & Tourism Hub ▪ Tax Reform ▪ Roads ▪ Favorable tax rates for SME development ▪ Plan to finish all spinal projects by 2020 – East-West Highway, other supporting infrastructure ▪ Special tax regimes for regional of
Slide 70: Content
Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices ➢ Georgia Capital results discussion & overview ➢ Georgia Capital financial statements ➢ Portfolio companies
Slide 71: Net Asset Value evolution
Net Asset Value evolution Change since Change since 31-Dec-18 31-Dec-18 GEL 44.32 GEL 53.90 +21.6% GEL 46.84 +5.7% NAV per share GBP 13.05 GBP 14.81 +13.5% GBP 12.46 -4.5% GEL millions, except per share information Private Private 54% 70% Private 54% 1,043 1,225 906 Listed 62% Listed Listed 58% 59%
Slide 72: Portfolio overview | December 2019
Portfolio overview | 31 December 2019 GEL thousands unless otherwise noted Ownership % Valuation Method Multiples Fair Values Dec-19 Jun-19 Dec-18 Dec-19 Jun-19 change Dec-18 Change Listed Portfolio Companies 1,027,814 1,194,712 -14.0% 977,827 5.1% GHG 70.6% Public markets 430,079 661,413 -35.0% 520
Slide 73: Number of outstanding shares overview & Value creation reconciliation | 2019
Number of outstanding shares overview & Value creation reconciliation | 2019 Number of outstanding shares overview # of shares issued (1) Unawarded shares in trust (2) # of outstanding shares (1) + (2) Opening balance at 31 December 2018 39,384,712 (1,295,154) 38,089,558 Buybacks* (2,085,014) (1,409
Slide 74: Multiple of Invested Capital (MOIC) | December 2019
Multiple of Invested Capital (MOIC) | 31 December 2019 Gross GEL millions Sell down Dividends Fair Value MOIC Realized MOIC Investment (1) (2) (3) (4) (2+3+4) / (1) (2+3) / (1) Listed Investments 381 418 138 1,028 4.2x 1.5x Georgia Healthcare Group PLC 252 131 4 430 2.2x 0.5x Bank of Georgia Group P
Slide 75: 2H19 NAV overview
2H19 NAV overview 4. Liquidity 1. Value 2a. 3. Operating GEL thousands unless otherwise noted Jun-19 2b. Buybacks 2c. Dividends management/ FX Dec-19 Change % creation Investments expenses /Other Listed Portfolio Companies 1,194,712 (279,754) 112,856 - - - - 1,027,814 -14.0% GHG1 661,413 (344,190) 1
Slide 76: Georgia Capital’s board of directors
Georgia Capital’s board of directors Board of directors - Georgia Capital PLC Irakli Gilauri, Chairman & CEO David Morrison, Senior Independent Director Experience: formerly BGEO Group CEO; Up to 20 years of Experience: formerly Director at Sullivan & Cromwell with a experience in the banking, inves
Slide 77: Georgia Capital’s highly experienced management team
Georgia Capital’s highly experienced management team Georgia Capital Management Irakli Gilauri, Chairman & CEO Formerly CEO of BGEO Group since 2011, joined as CFO of Bank of Georgia in 2004. Mr Archil Gachechiladze, CEO, Bank of Georgia Listed Previously CEO at GGU, the Group’s water utility and re
Slide 78: Content
Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices ➢ Georgia Capital results discussion & overview ➢ Georgia Capital financial statements ➢ Portfolio companies
Slide 79: Reconciliation of management accounts to IFRS
Reconciliation of management accounts to IFRS Income statements reconciliation, FY19 Inter- Water Housing P&C Renewable Hospitality and Digital Corporate Business Group GEL ‘000, unless otherwise noted GHG BOG Beverages Auto Service Other Utility Development Insurance Energy Commercial RE Services C
Slide 80: Georgia Capital Consolidated IFRS Accounts
Georgia Capital Consolidated IFRS Accounts Consolidated IFRS Income Statement Consolidated IFRS Statement of Cash Flow Consolidated IFRS Balance Sheet GEL ‘000, unless otherwise noted 2019 2018 change GEL ‘000, unless otherwise noted 2019 2018 Change GEL ‘000, unless otherwise noted 31-Dec-19 31-Dec
Slide 81: Georgia Capital FY19 Performance (management accounts)
Georgia Capital FY19 Performance (management accounts) Income Statement Cash flow, Georgia Capital stand-alone GEL ‘000, unless otherwise noted FY19 FY18 Change GEL thousands unless otherwise noted FY19 FY18 Change Dividend income 122,219 72,504 68.6% Dividends received 72,876 72,446 0.6% Interest i
Slide 82: Content
Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices ➢ Georgia Capital results discussion ➢ Georgia Capital financial statements ➢ Portfolio companies overview ➢
Slide 83: P&C insurance business | segment results in 2019
P&C insurance business | segment results in 2019 Well-diversified business model (1) Sources: Insurance State Key Segments Motor(2) Property(3) Credit life(4) Liability(5) Other(6) Supervision Service of Georgia. Market shares by earned premium gross. Market size (3Q19) (1) GEL 105mln GEL 63mln GEL
Slide 84: Hospitality and commercial RE business | commercial portfolio & hotel portfolio highlights
Hospitality and commercial RE business | commercial portfolio & hotel portfolio highlights Commercial portfolio breakdown | 31-Dec-19 Commercial portfolio growth Commercial portfolio growth 45 77.3% 45 6 Retail 14% 56.8% 10 25 6% Office US$ millions US$ millions 40% 25 16 4 39 Industrial 1 16 8 35 2
Slide 85: Housing development business | Overview of completed and on-going projects
Housing development business | Overview of completed and on-going projects as of 31 December 2019 Actual / Deferred Total Sq.m. Number of Number of Sq.m. Number of Sq.m. of Land Sq.m. of Number of Planned Recognised Deferred revenue Realised & (Net Number of apartments apartments apartments apartmen
Slide 86: Content
Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices ➢ Georgia Capital results discussion & overview ➢ Georgia Capital financial statements ➢ Portfolio companies
Slide 87: Water utility business financial highlights
Water utility business financial highlights Income statement Statement of cash flow Balance sheet GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change Revenue from water supply to legal en
Slide 88: Housing development business financial highlights
Housing development business financial highlights Income statement Statement of cash flow Balance sheet GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted Dec-19 Dec-18 Change Gross profit from apartment
Slide 89: P&C insurance business financial highlights
P&C insurance business financial highlights Income statement Statement of cash flow Balance sheet GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted Dec-19 Dec-18 change Gross premiums written 101,875 90
Slide 90: Renewable energy business financial highlights
Renewable energy business financial highlights Income statement Statement of cash flow Balance sheet GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted Dec-19 Dec-18 Change Revenue from electricity sales
Slide 91: Hospitality & Commercial RE business financial highlights
Hospitality & Commercial RE business financial highlights Income statement Statement of cash flow Balance sheet GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted Dec-19 Dec-18 Change GEL thousands, unless otherwise noted FY19 FY18 Change 12.4% Cash and cash
Slide 92: Beverages business financial highlights
Beverages business financial highlights Income statement Balance sheet (Wine business) Balance sheet (Beer business) GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted Dec-19 Dec-18 change GEL thousands, unless otherwise noted Dec-19 Dec-18 change Wine Busin
Slide 93: Beverages business financial highlights (cont’d)
Beverages business financial highlights (cont’d) Statement of cash flow (Wine business) Statement of cash flow (Beer business) GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change Cash received from customers 46,073 32,515 41.7% Proceeds from
Slide 94: Periodic technical inspection business financial highlights
Periodic technical inspection business financial highlights Income statement Statement of cash flow Balance sheet GEL thousands, unless otherwise noted 2H19 1H19 Change FY19 GEL thousands, unless otherwise noted 2H19 1H19 Change FY19 GEL thousands, unless otherwise noted Dec-19 Revenue 7,613 5,304 4
Slide 95: Glossary
Glossary • Combined ratio equals sum of the loss ratio and the expense ratio. • EBITDA - earnings before interest, taxes, non-recurring items, FX gain/losses and depreciation and amortization; The Group has presented these figures in this document because management uses EBITDA as a tool to measure
Slide 96: Company information
Company information Georgia Capital PLC Registered Address 84 Brook Street London W1K 5EH United Kingdom www.georgiacapital.ge Registered under number 10852406 in England and Wales Stock Listing London Stock Exchange PLC’s Main Market for listed securities Ticker: “CGEO.LN” Contact Information Georg
Slide 97: Georgia Capital
GEORGIA CAPITAL
Georgia Capital — Investor Presentation (February 2020) on 6ix