Georgia Capital PLC · LSE:CGEO
Georgia Capital — FY2024 Earnings Presentation
19 slides from Georgia Capital's earnings presentation, 2025
Slide 1: Macroeconomic Overview 4Q24 & FY24 Results
MACROECONOMIC OVERVIEW 4Q24 & FY24 RESULTS 1
Slide 2: Strong GDP growth in 2024, with moderation expected in 2025
STRONG GDP GROWTH IN 2024, WITH MODERATION EXPECTED IN 2025 GEORGIA’S ECONOMY CONTINUED TO EXPAND IN 2024, WITH PRELIMINARY ECONOMIC GDP GROWTH DECOMPOSITION BY SECTORS IN 9M24 (9.9%) AND 2023 GROWTH AT 9.5% Y-O-Y IN 2024 10.6% 11.0% 9.5% 7.8% 1.3% 1.1% 1.1% 1.3% 6.1% 1.0% 1.0% 5.4% 0.9% 0.9% 5.2% 5
Slide 3: Inflation remains below target but has increased in the past three months
INFLATION REMAINS BELOW TARGET BUT HAS INCREASED IN THE PAST THREE MONTHS ANNUAL INFLATION HAS REMAINED BELOW THE 3% TARGET SINCE APRIL 2023, WITH 2024 MIXED INFLATION HAS BEEN PICKING UP OVER THE PAST THREE MONTHS INFLATION AT 1.1% Y-O-Y 16.0 Headline inflation Domestic Imported Mixed 14% Headline
Slide 4: Strong FX inflows and high growth supported deleveraging of external balance sheet
STRONG FX INFLOWS AND HIGH GROWTH SUPPORTED THE DELEVERAGING OF THE COUNTRY'S EXTERNAL BALANCE SHEET CAB NARROWED TO -3.5% OF GDP, SUPPORTED BY GROWTH IN THE TRANSFER AND SERVICES TOTAL FX INFLOWS DECREASED SLIGHTLY BY 0.1% Y-O-Y AND AMOUNTED TO US$ 14.3 BALANCE BLN IN 2024 Goods, net Services, net
Slide 5: General government total debt lowest since 2014 amid solid growth
GENERAL GOVERNMENT TOTAL DEBT (% OF GDP) LOWEST SINCE 2014 AMID SOLID GROWTH AND EXCHANGE RATE GAINS INCREASING OPERATING BALANCE ON THE BACK OF STRONG REVENUE COLLECTON CENTRAL GOVERNMENT 2024-YEAR BUDGET PERFORMANCE (COMPARED TO THE PLANNED 2024 BUDGET ), GEL MLN 8000 Tax Revenues Current Expenses
Slide 6: Macroeconomic wrap-up
STRONG GDP GROWTH - MODERATION IS EXPECTED INFLATION REMAINS BELOW TARGET, BUT PICKING UP THE NBG INTERVENED SIGNIFICANTLY TO CURB NEGATIVE EXPECTATIONS MACROECONOMIC RISING EXPORTS AND TOURISM REVENUES OFFSET DECLINING WRAP-UP REMITTANCES FROM RUSSIA GENERAL GOVERNMENT TOTAL DEBT (% OF GDP) LOWEST
Slide 7: Sovereign ratings with favourable macro fundamentals
SOVEREIGN RATINGS WITH FAVOURABLE MACRO FUNDAMENTALS Key Ratings Highlights General Facts Rating Agency Rating Outlook Affirmed Ba2 Stable March 2024 BB Stable February 2025 Georgia BB Negative December 2024 Georgia is favorably placed among peers Fitch Rating Country Country Rating Outlook ▪ Area:
Slide 8: Georgia's key economic drivers
GEORGIA’S KEY ECONOMIC DRIVERS Top performer compared to peers across a wide range of international rankings Liberal ▪ Liberty Act (effective January 2014) ensures a credible fiscal framework; Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%. economic policy ▪ Following the emergency c
Slide 9: Institutional oriented reforms
INSTITUTIONAL ORIENTED REFORMS OPEN BUDGET INDEX, 2023 | INTERNATIONAL BUDGET PARTNERSHIP ECONOMIC FREEDOM INDEX | 2024 (HERITAGE FOUNDATION) (BUDGET TRANSPARENCY) Ireland 3 Georgia 1 Sweden 3 Lithuania 15 Moldova 5 Latvia 20 Norway 8 Czech Republic 24 Bulgaria 10 Italy 13 Portugal 29 Germany 14 Bul
Slide 10: Economic growth continuing at pace
ECONOMIC GROWTH CONTINUING AT PACE GROSS DOMESTIC PRODUCT NOMINAL GDP STRUCTURE, 9M24 Nominal GDP, GEL bln (LHS) Real GDP, YoY % 92 24% 90 81 80 73 20% 70 61 16% 60 50 50 11.0% Public 41 45 10.6% 9.5% 12% Administratio Agriculture, 50 7.8% 35 37 40 28 29 32 8% n, 7.0% 6.6% 26 Trade, 15.1% 30 Real Es
Slide 11: Unemployment rate at historical lows
UNEMPLOYMENT RATE AT HISTORICAL LOWS UNEMPLOYMENT RATE AT HISTORICAL LOWS, DOWN TO 13.9% IN 2024 FROM 16.4% IN 2023 LABOR FORCE STRUCTURE 30% 27.2% 26.7% Employed Unemployed Labor force Labour force participation rate,% 25% 23.0% 22.1% 1,800 60% 21.7% 20.4% 1,676 19.0% 1,655 1,654 1,641 19.2% 18.1%
Slide 12: Inflation below the target level since April 2023
INFLATION BELOW THE TARGET LEVEL SINCE APRIL 2023 INFLATION Y-O-Y VS. INFLATION TARGET INFLATION COMPONENTS Food and non-alcoholic beverages Alcoholic beverages and tobacco Transport 16 Headline Inflation Core Inflation Target Monetary Policy Rate Housing and utilities Other Inflation 14 12 12 10 8
Slide 13: Exports rebounded; remittances stabilizing
EXPORTS HAVE REBOUNDED, SHOWING A SIGNIFICANT POSITIVE TREND IN THE DOMESTIC COMPONENT, WITH STRONG PERFORMANCE OF RE-EXPORTED MOTOR CARS REMITTANCES STABILIZING AS DECLINE FROM RUSSIA IS OFFSET BY INCREASING TRANSFERS RE-EXPORTED MOTOR CARS CONTRIBUTING MOST TO THE SURGING EXPORT IN THE LAST FROM O
Slide 14: Diversification of the external earnings enhances resilience
DIVERSIFICATION OF THE EXTERNAL EARNINGS ENHANCES RESILIENCE SINCE 2022, THE EXPORT OF ICT SERVICES HAS INCREASED - IN 2023 ICT EXPORTS TOTALLED EXPORTS AND RE-EXPORTS, US$ BILLION US$ 892 MLN WITH A 49% Y-O-Y GROWTH RATE Travel ICT services Transport Other services Services Export from BOP, bln USD
Slide 15: Diversified foreign trade
DIVERSIFIED FOREIGN TRADE EXPORTS AND IMPORTS OF GOODS, Y-O-Y % EXTERNAL TRADE BY COUNTRIES, 2024, SHARE IN TOTAL 75% Imports, YoY % Exports, YoY % 75% Export 6.6 USD BLN Import 16.9 USD BLN Kyrgyzstan-20% Türkiye-16% 60% 60% Kazakhstan-13% United States-12% 45% 45% Azerbaijan-11% Russia-11% 30% 30%
Slide 16: Tourism revenues back to full strength
TOURISM REVENUES BACK TO FULL STRENGTH, DESPITE LOWER NUMBER OF TRAVELERS COMPARED TO PRE-COVID LEVELS TOURISM REVENUES TO GDP INTERNATIONAL VISITORS BY COUNTRY Tourism revenues, US$ bln Tourism revenues, % of GDP Number of International Visitors in 2024, Thousand Recovery level in 2024 (% of 2019 l
Slide 17: Significant NBG interventions to curb negative expectations
SIGNIFICANT NBG INTERVENTIONS TO CURB NEGATIVE EXPECTATIONS THE NBG CONTINUED TO EASE ITS TIGHTENED MONETARY POLICY STANCE WITH 150 BPS INTERNATIONAL RESERVES CUT IN 2024 6,000 Official Reserve Assets, US$ mln Net Foreign Assets, US$ mln 14 5,000 International reserves reached US $4.4 bln in 12 Janu
Slide 18: Loans growth by currencies and purpose
-5% 0% 5% 10% 15% 20% 25% 0% 20% 30% 40% 50% -10% 10% Mar-17 Jun-18 Jun-17 Sep-18 Sep-17 Dec-18 Dec-17 Mar-18 Mar-19 Jun-18 Jun-19 Sep-18 Sep-19 LOANS BY CURRENCIES Dec-18 Dec-19 Business Loans Georgia Capital PLC | Source: NBG Mar-19 Consumer Loans Mar-20 Jun-19 Jun-20 Sep-19 Sep-20 Dec-19 Mar-20 D
Slide 19: Fiscal position strengthens with declining debt as % of GDP
FISCAL POSITION STRENGTHENS, WITH DECLINING DEBT LEVEL AS % OF GDP, RISING OPERATING SURPLUS AND A FAVORABLE DEBT STRUCTURE GENERAL GOVERNMENT TOTAL DEBT AT THE END OF 2024 AMOUNTED TO US$ 11.8 BN GENERAL GOVERNMENT DEBT STRUCTURE (36% OF GDP **) 48% of external debt consists of fixed rate credits;