Georgia Capital PLC · LSE:CGEO
Georgia Capital — FY2019 Earnings Presentation
22 slides from Georgia Capital's earnings presentation, Feb 27, 2020
Slide 1: 2H19 and FY19 results call presentation
2H19 and FY19 results call 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. Macro developments in 2019 2. Georgia Capital NAV developments 3. Portfolio overview Page 3
Slide 4: Macro developments in 2019: Diversified resilient economy
Macro developments in 2019 | Diversified resilient economy Gross domestic product Source: Geostat, internal estimates Real GDP growth exceeded expectations in 2019 supported by strong domestic and US$ billion external demand. 20 16% 7.4% 12% 6.4% Current Account deficit hit record low 4.4% of GDP (N
Slide 5: Content
Content 1. Macro developments in 2019 2. Georgia Capital NAV developments 3. Portfolio overview Page 5
Slide 6: FY19 performance highlights
FY19 performance highlights 1 Georgia Capital performance Georgia Capital NAV overview FY19 31-Dec-19 31-Dec-18 Change GEL thousands GEL thousands, except per share information (y-o-y) Total portfolio value creation 134,371 NAV per share, GEL 46.84 44.32 5.7% of which, listed businesses (33,937) Net
Slide 7: Value creation in 2019
Value creation in 2019 Operating Multiple Change Private 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 -
Slide 8: Capital allocations in 2019
Capital allocations in 2019 GEL, millions Investments Buybacks Dividends Total Investment highlights BOG - - (25) (25) ➢ GHG: Acquisition of 13.6% holding in GHG as part of Share Exchange Facility Listed portfolio GHG 113 - (4) 109 ➢ Renewable Energy: Acquisition of Hydrolea HPPs and Qartli WPPs Wat
Slide 9: Total portfolio growth in 2019
Total portfolio growth in 2019 ➢ Total portfolio value increased by 19.6% to GEL 2.3 billion ➢ Our private portfolio businesses generated GEL 168 million value (18.6% growth in value during 2019) 4. Liquidity 1. Value 2a. 3. Operating GEL thousands unless otherwise noted Dec-18 2b. Buybacks 2c. Divi
Slide 10: NAV per share (GEL) 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 11: NAV per share (GBP) movement in 2019
NAV per share (GBP) movement in 2019 NAV per share down by 4.5% to GBP 12.46 during 2019 NAV per share -1.9% 9.4% 3.0% -2.0% -1.9% -11.1% -4.5% +3.2% change % 0.40 (0.26) (0.25) 1.23 (1.45) 13.05 (0.25) 0.40 12.86 12.46 NAV per share Value creation on Value creation on Buybacks & GHG share exchange
Slide 12: Content
Content 1. Macro developments in 2019 2. Georgia Capital NAV developments 3. Portfolio overview Page 12
Slide 13: Portfolio overview | December 2019
Portfolio overview | 31 December 2019 GEL thousands unless otherwise noted Ownership % Valuation Method Multiples Fair Values Dec-19 Dec-18 Dec-19 Dec-18 Change Listed Portfolio Companies 1,027,814 977,827 5.1% GHG 70.6% Public markets 430,079 520,332 -17.3% BoG 19.9% Public markets 597,735 457,495
Slide 14: Listed businesses overview
Listed businesses overview Stock price performance Stock price performance 22 GBP 17.14 4.50 20 as of 26-Feb-2020 4.00 GBP 1.22 3.50 as of 26-Feb-2020 18 3.00 16 2.50 14 2.00 1.50 12 1.00 10 0.50 8 0.00 Jan-20 May-18 Nov-18 May-19 Dec-18 Jan-19 Feb-19 Nov-19 Nov-19 Dec-19 Oct-18 Oct-18 Mar-19 Oct-19
Slide 15: Water utility business
Water utility business overview Valuation highlights | 31 December 2019 Selected metrics GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Financial metrics GEL millions, unless otherwise noted 2019 2018 Change LTM EBITDA 95 83 14.0% Revenue 163.5 149.1 9.6% Multiple applied 8.8 8.8 NM
Slide 16: Housing development business
Housing development business overview Valuation highlights | 31 December 2019 Selected metrics Financial metrics GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Annually Semi-annually GEL millions, unless otherwise noted 2019 2018 Change 2H19 1H19 Change 2H18 Change Apartments sales
Slide 17: P&C Insurance business
P&C Insurance business overview Valuation highlights | 31 December 2019 Selected metrics GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Financial metrics 18 183 3.3% GEL millions, unless otherwise noted 2019 2018 change (y-o-y) LTM net income Earned premiums, net 75.3 67.5 11.6% Mul
Slide 18: Renewable energy business
Renewable energy business overview Valuation highlights | 31 December 2019 Selected metrics GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Financial metrics Operating metrics GEL millions, unless otherwise noted 2019 2018 Change 2019 At acquisition price (GCAP share) 107 61 74.6% 1
Slide 19: Hospitality & Commercial RE business
Hospitality & Commercial RE business overview Valuation highlights | 31 December 2019 Selected metrics GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Financial metrics2 GEL millions, unless otherwise noted 2019 2018 Change NAV 246 149 64.7% NOI3 from operating leases 6.5 4.6 40.8% N
Slide 20: Wine business
Wine business overview Valuation highlights | 31 December 2019 Selected metrics GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Financial metrics GCAP ownership 87% 80% +7.0ppts GEL millions, unless otherwise noted 2019 2018 Change Revenue 42.2 29.4 43.6% LTM EBITDA2 9.5 5.0 89.1% Gr
Slide 21: Beer business
Beer business overview Valuation highlights | 31 December 2019 Selected metrics GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Financial metrics Annually Semi-annually GCAP ownership 87% 80% +7.0ppts 2019 2018 Change 2H19 1H19 Change 2H18 Change LTM Revenue1 47 28 67.9% Revenue 43.6
Slide 22: PTI: Auto service business
PTI overview Valuation highlights | 31 December 2019 Selected metrics GEL millions, unless otherwise noted 31-Dec-19 Number of inspection lines Market share1 EBITDA2 6.7 51 36% Multiple applied 10.4 Financial highlights Operating highlights GEL thousands 2019 2019 Enterprise Value 70.0 Revenue 12,91