Georgia Capital PLC · LSE:CGEO
Georgia Capital — FY2024 Earnings Presentation
47 slides from Georgia Capital's earnings presentation, Feb 24, 2025
Slide 1: 4Q24 & FY24 Results Call Presentation
4Q24 & FY24 RESULTS CALL PRESENTATION 24 FEBRUARY 2025
Slide 2: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 4Q24 & FY24 02 MACROECONOMIC UPDATE | GEORGIA 03 4Q24 & FY24 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 2
Slide 3: Key Developments
1 NAV per share (GEL) increased 15.0% q-o-q in 4Q24 to GEL 95.95 (up 15.7% y-o-y) Outstanding operating results across our private portfolio: 2 ➢ Aggregated revenue up 8.8% y-o-y to GEL 595 million in 4Q24 (up 8.9% y-o-y to GEL 2.3 billion in FY24) ➢ Aggregated EBITDA up 53.3% y-o-y to GEL 84 millio
Slide 4: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 4Q24 & FY24 NAV PER SHARE OVERVIEW AGGREGATED PORTFOLIO RESULTS OVERVIEW UPDATE ON DELEVERAGING 02 MACROECONOMIC UPDATE | GEORGIA 03 4Q24 & FY24 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 4
Slide 5: NAV per Share (GEL) Movement in 4Q24
NAV PER SHARE (GEL) MOVEMENT IN 4Q24 PRIVATE PORTFOLIO NAV PER SHARE (GEL) UP +9.5% +8.7% -3.7% +1.0% -0.3% -0.1% +15.0% 15.0% Q-O-Q IN 4Q24 ▪ The increase in NAV per share (GEL) in 95.95 4Q24 reflects the robust value creation across our portfolio companies and an accretive impact of share buybacks
Slide 6: Strong NAV per Share Growth
STRONG NAV PER SHARE GROWTH STRONG NAV PER SHARE (GEL) GROWTH NAV PER SHARE (GEL) DEVELOPMENT OVERVIEW WITH 13.7% CAGR SINCE DEC-18 +13.7% CAGR IN US$ AND GBP TERMS, NAV PER SHARE CAGR STANDS AT 12.8% AND 13.0%, RESPECTIVELY +15.7% 95.95 82.94 63.03 65.56 46.84 48.12 44.32 Dec-18 Dec-19 Dec-20 Dec-2
Slide 7: Share Buyback and Cancellation Programme
SHARE BUYBACK AND CANCELLATION PROGRAMME DEVELOPMENT OF GCAP’S SHARE BUYBACK AND CANCELLATION PROGRAMMES ➢ The gross number of issued shares, including those held by the management trust, is now below the 12.1 MILLION SHARES (US$ 143 share count at the time of the demerger MILLION IN VALUE) REPURCHA
Slide 8: Progress on GEL 300 Million Capital Return Programme
PROGRESS ON GEL 300 MILLION CAPITAL RETURN PROGRAMME AS PART OF THE GEL 300 MILLION CAPITAL RETURN PACKAGE, GEL 182 MILLION HAS ALREADY BEEN ALLOCATED TO SHARE BUYBACKS IN MAY-24, GCAP ANNOUNCED ITS BOARD’S INTENTION TO MAKE AVAILABLE REPURCHASED & CANCELLED AT LEAST GEL 300 MILLION FOR SHARE GEL 11
Slide 9: Free Cash Flow Development
FREE CASH FLOW DEVELOPMENT GCAP’s FREE CASH FLOW DEVELOPMENT (US$ MILLION) SIGNIFICANT INCREASE IN FREE CASH INCLUDING BUYBACK DIVIDENDS FLOW, REFLECTING ROBUST DIVIDEND INFLOWS, WELL-MANAGED OPERATING EXPENSES, AND REDUCED INTEREST EXPENSE IN LINE WITH OUR DELEVERAGING PROGRESS 48 48 Free cash flow
Slide 10: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 4Q24 & FY24 NAV PER SHARE OVERVIEW AGGREGATED PORTFOLIO RESULTS OVERVIEW UPDATE ON DELEVERAGING 02 MACROECONOMIC UPDATE | GEORGIA 03 4Q24 & FY24 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 10
Slide 11: Aggregated Revenue Development Across Private Portfolio
AGGREGATED REVENUE DEVELOPMENT ACROSS PRIVATE PORTFOLIO GEL MILLION AGGREGATED QUARTERLY REVENUES UP 8.8% Y-O-Y IN 4Q24 AND UP 8.9% Y-O-Y IN +8.9% FY24 2,251 2,068 ➢ Aggregated revenue of large portfolio companies 565 up 18.2% y-o-y in 4Q24 (up 12.1% y-o-y in FY24). +8.8% 575 187 ➢ Aggregated revenu
Slide 12: Aggregated EBITDA Development Across Private Portfolio
AGGREGATED EBITDA DEVELOPMENT ACROSS PRIVATE PORTFOLIO GEL MILLION AGGREGATED EBITDA UP +25.0% 53.3% Y-O-Y IN 4Q24 AND 311 UP 25.0% Y-O-Y IN FY24 66 249 +53.3% 43 ➢ Aggregated EBITDA of large portfolio companies 64 up 65.6% y-o-y in 4Q24 (up 17.5% y-o-y in FY24). 84 52 ➢ Aggregated EBITDA of investm
Slide 13: Aggregated Cash Balance & Net Operating Cash Flow
AGGREGATED CASH BALANCE & NET OPERATING CASH FLOW DEVELOPMENT ACROSS PRIVATE PORTFOLIO TOTAL AGGREGATED NET OPERATING CASH FLOW TOTAL AGGREGATED CASH BALANCE OF PRIVATE BUSINESSES (GEL MILLION) (GEL MILLION) +2.1x 299 +8.1% 31-Dec-23 260 139 +7.5% +2.3x 30-Sep-24 262 84 36 31-Dec-24 281 4Q23 4Q24 FY
Slide 14: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 4Q24 & FY24 NAV PER SHARE OVERVIEW AGGREGATED PORTFOLIO RESULTS OVERVIEW UPDATE ON DELEVERAGING 02 MACROECONOMIC UPDATE | GEORGIA 03 4Q24 & FY24 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 14
Slide 15: Net Capital Commitment (NCC) Overview
NET CAPITAL COMMITMENT (NCC) OVERVIEW Change Change 31-Dec-24 US$ Million 31-Dec-23 30-Sep-24 (y-o-y) (q-o-q) NCC RATIO IMPROVED BY 3.1 Cash and liquid funds 40.1 NMF 47.9 NMF 99.1 PPTS Q-O-Q AS OF 31-DEC-24 Loans issued 3.4 NMF 4.3 NMF - (2.8 PPTS IMPROVEMENT Y-O-Y) Gross debt (153.9) 0.2% (150.9)
Slide 16: NCC Ratio Development Overview
NCC RATIO DEVELOPMENT OVERVIEW NCC AND NCC RATIO DEVELOPMENT OVERVIEW1 NCC REPRESENTS AN AGGREGATED ✓ SIGNIFICANT DELEVERAGING PROGRESS, WELL AHEAD OF OUR ORIGINAL NCC RATIO TARGET OF 15% BEFORE DECEMBER 2025 VIEW OF ALL CONFIRMED, AGREED AND EXPECTED CAPITAL OUTFLOWS 385.8 AT THE GCAP HOLDCO LEVEL
Slide 17: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 4Q24 & FY24 02 MACROECONOMIC UPDATE | GEORGIA 03 4Q24 & FY24 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 17
Slide 18: Strong GDP Growth in 2024, 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 19: Inflation Remains Below Target but Has Increased
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 20: Strong FX Inflows 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 21: General Government Total Debt Lowest Since 2014
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 22: 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 23: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 4Q24 & FY24 02 MACROECONOMIC UPDATE | GEORGIA 03 4Q24 & FY24 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 23
Slide 24: Portfolio Value as of 31-Dec-24
PORTFOLIO VALUE AS OF 31-DEC-24 % SHARE IN TOTAL PORTFOLIO VALUE: 78% OF OUR PORTFOLIO 96% IS OF OUR PORTFOLIO 38% 5% 19% 11% 8% 7% 5% 3% 4% ISVALUED VALUED EXTERNALLY EXTERNALLY1 1 GBP 47.1 OPTION MULTIPLE: 11.1x 10.5x 11.3x 12.8x 10.6x PRICE ON LSE VALUATION2 8.4x LTM P/E LTM EV/EBITDA3 EV/EBITDA4
Slide 25: Portfolio Value Development in 4Q24
PORTFOLIO VALUE DEVELOPMENT IN 4Q24 PORTFOLIO VALUE UP BY 8.5% Q-O-Q TO GEL 3.8 126 32 BILLION IN 4Q24 275 28 3,761 (167) 3,468 PRIVATE PORTFOLIO VALUE CREATION IN 4Q24 PRIVATE PORTFOLIO VALUE CREATION GEL MILLION GEL million LISTED AND OBSERVABLE PORTFOLIO PRIVATE PORTFOLIO VALUE Retail (Pharmacy)
Slide 26: Retail (Pharmacy) Business Operating Performance Overview
RETAIL (PHARMACY) BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT EBITDA1 DEVELOPMENT +4.3% 850 RETAIL (PHARMACY) 815 KEY DRIVERS +5.4% 681 ▪ Economic growth and a substantial ramp-up of 646 +5.4% +4.6% the pharmacy stores launched in late 2023 led to a 233 5.4% y-o-y revenue increase in
Slide 27: Retail (Pharmacy) Business Valuation Overview
Externally valued1 RETAIL (PHARMACY) BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q24 IMPLIED LTM EV/EBITDA DEVELOPMENT (GEL MILLION) Change q-o-q +5.0% -2.9% -7.6% +8.8% 9.7x 48 1,021 8.8x 973 8.4x 716 (298) (7) Enterprise value Net change Enterprise value Net debt inc. Minority Equity
Slide 28: Insurance Business Operating Performance Overview
INSURANCE BUSINESS OPERATING PERFORMANCE OVERVIEW INSURANCE REVENUE PRE-TAX PROFIT DEVELOPMENT +52.0% 316 INSURANCE KEY DRIVERS 208 P&C Insurance 167 +41.1% ▪ The increase in the P&C insurance revenue is GEL MILLION 91 42.9 mainly driven by the growth in the motor, +71.8% agricultural and credit lif
Slide 29: Insurance Business Valuation Overview
Externally valued1 INSURANCE BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q24 IMPLIED LTM P/E MULTIPLE (GEL MILLION) DEVELOPMENT Change q-o-q +5.0% 428 407 21 9 12.4x (9) 115 97 10.9x 11.1x 3 310 313 Equity value Operating Multiple change Dividends Equity value 31-Dec-23 30-Sep-24 31-De
Slide 30: Hospitals Business Operating Performance Overview
HOSPITALS BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT1 EBITDA2 DEVELOPMENT +5.8% +19.6% HOSPITALS 55.2 334 315 KEY DRIVERS 46.1 13.6 107 ▪ Total revenue increase in 4Q24 reflecting the 111 GEL MILLION 11.8 business’ gradual return to its normal operational levels following mandatory
Slide 31: Hospitals Business Valuation Overview
Externally valued1 HOSPITALS BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q24 (GEL MILLION) IMPLIED LTM EV/EBITDA DEVELOPMENT Change q-o-q +8.7% -0.8% +7.7% +19.5% 13.8x 11.5x 10.5x 545 47 592 291 (272) (30) Enterprise value Net change Enterprise value Net debt inc. Minority Equity valu
Slide 32: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 4Q24 & FY24 02 MACROECONOMIC UPDATE | GEORGIA 03 4Q24 & FY24 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 32
Slide 33: Liquidity Outlook
LIQUIDITY OUTLOOK LIQUIDITY DEVELOPMENT OVERVIEW (US$ MILLION) GROSS DEBT (US$ million) LIQUIDITY UP BY 107.0% IN 4Q24, REFLECTING THE RECEIPT OF PROCEEDS FROM THE BEER AND 300 300 365 365 300 150 150 150 DISTRIBUTION BUSINESS SALE Cash receipt from the water utility business sale Cancellation of US
Slide 34: Dividend Income Outlook
DIVIDEND INCOME OUTLOOK RECURRING CASH DIVIDEND INCOME FROM PORTFOLIO COMPANIES GEL 179.2 MILLION RECURRING DIVIDEND INCOME IN 2024 Dividend income +5.9% 1.6 2.1 4.1 4.3 DIVIDEND INCOME per share (GEL) (GEL million) FY23 FY24 Lion Finance Group 124.5 122.2 1 180 179 Of which, cash dividend 80.5 72.2
Slide 35: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 4Q24 & FY24 02 MACROECONOMIC UPDATE | GEORGIA 03 4Q24 & FY24 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 35
Slide 36: Solid Performance Across Our Portfolio
SOLID PERFORMANCE ACROSS OUR PORTFOLIO PERFORMANCE HIGHLIGHTS ✓ NAV per share (GEL) increased 15.0% q-o-q in 4Q24 to GEL 95.95 (up 15.7% y-o-y) ✓ Outstanding operating results across our private portfolio ✓ Completion of the beer and distribution business disposal and receipt of c.US$ 63 million net
Slide 37: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 4Q24 & FY24 02 MACROECONOMIC UPDATE | GEORGIA 03 4Q24 & 12M24 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 37
Slide 38: Renewable Energy Business Operating Performance Overview
RENEWABLE ENERGY BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT EBITDA DEVELOPMENT RENEWABLE ENERGY +11.3% +16.4% 16.1 14.4 KEY DRIVERS 12.1 ▪ The 4Q24 revenue was down by 11.9% y-o- y, resulting from an 11.1% y-o-y decrease in US$ MILLION 5.9 8.5 10.4 electricity generation due to unfa
Slide 39: Renewable Energy Business Valuation Overview
Externally valued1 RENEWABLE ENERGY BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q24 EQUITY FAIR VALUE COMPOSITION (US$ MILLION) AT 31-DEC-24 (US$ MILLION) Change q-o-q +0.1% -2.8% +2.5% 19 158 0 158 Total value 90 US$ 90 (68) 71 Enterprise value Net change in EV Enterprise value Net de
Slide 40: Education Business Operating Performance Overview
EDUCATION BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT EBITDA DEVELOPMENT +22.9% EDUCATION 68.2 +15.1% KEY DRIVERS GEL MILLION 55.5 16.6 ▪ A y-o-y increase in the 4Q24 revenue reflects: 14.4 o The organic growth through strong intakes and a ramp-up of the utilisation; and +16.4% +21.3
Slide 41: Education Business Valuation Overview
Externally valued1 EDUCATION BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q24 LTM EV/EBITDA DEVELOPMENT (GEL MILLION) Change q-o-q +12.0% -50.7% +52.6% +12.4% +0.3% 16.7x 13.0x 12.8x 25 234 12 209 (21) 182 (44) Enterprise Net change Enterprise Investment Net debt Minority Equity value 3
Slide 42: Clinics & Diagnostics Business Operating Performance Overview
CLINICS & DIAGNOSTICS BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT1 EBITDA2 DEVELOPMENT +21.2% 82.0 CLINICS & DIAGNOSTICS 67.6 22.2 KEY DRIVERS 18.4 +41.8% ▪ The growth in revenue and EBITDA of the +22.2% GEL MILLION combined clinics and diagnostics business in 14.2 4Q23 reflects: 22.
Slide 43: Clinics & Diagnostics Business Valuation Overview
Externally valued1 CLINICS & DIAGNOSTICS BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q24 IMPLIED LTM EV/EBITDA DEVELOPMENT (GEL MILLION) Change q-o-q +8.9% -5.2% -2.0% +17.8% 14.5x 15 187 10.6x 10.6x 171 123 (61) (2) Enterprise value Net change Enterprise value Net debt inc. Minority E
Slide 44: Deleveraging Across Our Private Portfolio
DELEVERAGING ACROSS OUR PRIVATE PORTFOLIO TARGET y-o-y q-o-q ADJUSTED NET DEBT/EBITDA 31-DEC-23 30-SEP-24 31-Dec-24 (OVER THE change change AGGREGATED LEVERAGE ACROSS CYCLE) OUR PRIVATE LARGE AND LARGE PORTFOLIO COMPANIES INVESTMENT STAGE PORTFOLIO COMPANIES AT 2.8x AS OF 31-DEC-24 Retail (pharmacy)
Slide 45: Private Portfolio Companies' Debt Maturity Profile
PRIVATE PORTFOLIO COMPANIES’ DEBT MATURITY PROFILE GROSS DEBT MATURITY AS OF 31 DECEMBER 2024 2025 2026 2027 2028 - 2036 Total (GEL MILLION) Large portfolio companies 162.9 113.9 106.0 135.1 517.9 Retail (Pharmacy)1 89.4 47.8 38.0 29.2 204.4 Insurance (P&C and Medical) 3.0 6.5 7.3 12.7 29.5 Hospital
Slide 46: Valuation Peer Group
VALUATION PEER GROUP RETAIL P&C MEDICAL HOSPITALS (PHARMACY) INSURANCE INSURANCE • NEUCA S.A. | Poland • Dhipaya Insurance | Thailand • Powszechny Zaklad Ubezpieczen SA | • Medicover AB | Sweden Poland • Sopharma Trading AD | Bulgaria • Zavarovalnica Triglav | Slovenia • EMC Instytut Medyczny SAEMC
Slide 47: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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, plans or int