Georgia Capital PLC · LSE:CGEO
Georgia Capital — Q3 2019 Earnings Presentation
78 slides from Georgia Capital's earnings presentation, Nov 15, 2019
Slide 1: Investor presentation
Investor presentation 10 x = 10 y 15 November Page 1 2019
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 30-Sep-19 As of 15 November 2019 39,384,712 2,650,375 25.1% Average daily 1,805,173 trading volume – 28.6% USA 34,929,164 GBP 1.1 (mi
Slide 5: Our portfolio at a glance
Our portfolio at a glance Management platform Public portfolio Private portfolio – GEL 1,163mln2 Third-party – GEL 1,071mln1 managed capital Late Stage – GEL 684mln2 Pipeline - GEL 87mln2 Georgia Water Housing P&C Education Healthcare Group Utility Development Insurance 57% 100% 100% 100% GEL 51mln
Slide 6: Key portfolio highlights | September 2019
Key portfolio highlights | 30 September 2019 Gross cash invested of GEL 1.0 bln Net cash invested of GEL 256 mln Portfolio fair value of GEL 2.2 bln Listed Private late stage Private early stage Pipeline Original investment 139 129 214 92 10 58 186 62 86 50 10 9 MOIC1 4.9 6.9 2.6 1.9 18.8 1.1 1.3 1.
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
July 2019 Acquisitions in 2019 Buckswood International August 2019 Alaverdi winery • The leading school in the mid-level • Purchase of 100% equity stake segment March 2019 • Purchase of 80% equity stake • Alaverdi owns 244 hectares of November 2019 May 2019 vineyards and 135 hectares of Qartli wind
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 25 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 30-Sep-2019 In 5 years Management company 20% 47% Third-party managed capital 53% 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: 360-degree analysis
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 30-Sep-2019 listed peers than GCAP’s fair value discount New opportunities
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: Capital allocation outlook through 2023
Capital allocation outlook through 2023 Highly disciplined approach to unlock value through investments Together with the available GEL 436mln liquid funds & short-term loans, we are well-positioned to create long-term shareholder value Total capital allocations GEL millions 2018A 2019E2 2020E 2021E
Slide 21: 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 21
Slide 22: NAV Statement | September 2019
NAV Statement | 30 September 2019 4b. Liquidity 1. Value 2a. Capital 3. Operating 4a. Net interest GEL thousands unless otherwise noted Dec-18 2b. Buy-backs management/ FX Sep-19 Change % creation allocation expenses income /Other Listed Portfolio Companies 977,827 71,527 (28,932) - - - - 1,020,422
Slide 23: Analysis of NAV movements | YTD Sep-19
Analysis of NAV movements | YTD Sep-19 Value creation of GEL 209 million contributed 12.4% to NAV growth GEL millions unless otherwise noted NAV change % 12.4% -1.5% -0.2% -1.8% 8.9% -5.3% 3.6% 209 (25) (3) (31) Listed: 71 (90) Private:138 1,838 1,688 1,748 NAV Value Operating Net interest Liquidity
Slide 24: Analysis of NAV per share movements | YTD Sep-19
Analysis of NAV per share movements | YTD Sep-19 NAV per share up 12.9% to GEL 50.04 GEL unless otherwise noted NAV per share 4.2% 8.2% -1.5% -0.2% -3.6% 7.1% +5.8% 12.9% change % 2.6 GBP 13.78 3.6 ( 0.7 ) ( 0.1 ) ( 1.6 ) GBP 13.12 1.9 GBP 13.05 50.04 47.44 44.32 NAV per share Valuation gains - Valu
Slide 25: Value creation across private portfolio | YTD Sep-19
Value creation across private portfolio | YTD Sep-19 Operating Multiple Private Portfolio Businesses Greenfields Value Creation Performance Change GEL thousands (1) (2) (3) (1)+(2)+(3) Late Stage 75,582 - 36,434 112,016 Water Utility 49,931 - 12,670 62,602 Housing Development 12,109 - - 12,109 P&C I
Slide 26: Capital allocations | YTD Sep-19
Capital allocations | YTD Sep-19 GEL, millions Dividends Investments Buybacks Total BOG (25.0) - - (25.0) Listed portfolio GHG (4.0) - - (4.0) Water Utility - - - - Private late stage Housing Development (48.6) - - (48.6) portfolio P&C Insurance (8.0) - - (8.0) Renewable Energy - 1.6 - 1.6 Hospitali
Slide 27: Liquidity management at Georgia Capital
Liquidity management at Georgia Capital GEL 438 million Liquid assets & Loans issued | 30-Sep-2019 Net debt | 30-Sep-2019 ► Georgia Capital issued inaugural US$ 300mln international corporate bonds in March 2018 Loans issued (31%) 137 GEL millions Net debt overview | 30-Sep-2019 Cash & liquid funds
Slide 28: Private portfolio performance highlights | YTD Sep-19
Private portfolio performance highlights | YTD Sep-19 Strong growth in private portfolio operating cash flow generation, up 67%* y-o-y in 9M19 Late stage Water Utility Housing Development P&C Insurance +8.9% -26.3% 119.2 +37.0% +13.5% 109.5 +12.7% 96.7 72.7 71.3 67.8 NMF 50.0 56.7 +5.0% +31.3% 60.2
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: Healthcare and pharmacy business (GHG) overview
Listed investments Healthcare and pharmacy business (GHG) overview http://ghg.com.ge/ Market opportunity Investment rationale ▪ Very low base: healthcare services spending per capita only US$ 324 Total healthcare market (including healthcare services and pharmacy) ▪ Growing market: healthcare spendi
Slide 31: Bank of Georgia (BoG) Overview
Listed investments Bank of Georgia (BoG) Overview http://bankofgeorgiagroup.com/ Investment rationale Market opportunity ▪ The first entity from Georgia to be listed on the premium segment of the Main Market of the London Stock Exchange (LSE:BGEO) since February 2012 Banking sector assets, loans and
Slide 32: Water utility business overview
Private late stage portfolio Water utility business overview Effect of new consumers on the market Investment rationale ▪ Natural monopoly in Tbilisi and surrounding districts with high entry barriers 13.6 TWh 13.6 TWh ▪ Sectoral output increasing at a robust growth rate (on average 9.5% in the last
Slide 33: Water utility business overview cont’d
Private late stage portfolio Water utility business overview cont’d Key highlights | 30 September 2019 Financial metrics (GEL millions) Annual GEL millions, unless otherwise noted 30-Sep-19 31-Dec-18 Change 2015 2016 2017 2018 9M18 9M19 Change LTM EBITDA 91 83 9.2% Total revenue 119 127 135 149 109
Slide 34: 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 a
Slide 35: Housing development business overview cont’d
Private late stage portfolio Housing development business overview cont’d Key highlights | 30 September 2019 Financial metrics (GEL millions)1 Annual GEL millions, unless otherwise noted 30-Sep-19 31-Dec-18 Change 2015 2016 2017 2018 9M18 9M19 Change Apartments sales revenue 45 96 92 95 77 31 -59.7%
Slide 36: P&C insurance business overview
Private late stage portfolio P&C insurance business overview Market share YE18 (earned premiums, gross) Market composition by product lines Investment rationale • Significantly underpenetrated P&C insurance market in Georgia (0.6% penetration) Property, 32% • Market leader with a powerful distributi
Slide 37: P&C insurance business overview cont’d
Private late stage portfolio P&C insurance business overview cont’d Key highlights | 30 September 2019 Financial metrics (GEL millions) GEL millions, unless otherwise noted 30-Sep-19 31-Dec-18 Change Annual 2015 2016 2017 2018 9M18 9M19 Change LTM net income2 18 18 3.6% Earned premiums, gross 68 71
Slide 38: Renewable energy business overview
Private early stage portfolio Renewable energy business overview Electricity supply and consumption, 2018 Investment rationale GWh Source: ESCO ▪ Underdeveloped energy market with potential for significant growth - Low 1,500 per capita power usage ▪ Cheap to develop – up to US$1.5mln for 1MW hydro a
Slide 39: Renewable energy business overview
Private early stage portfolio Renewable energy business overview Key highlights | 30 September 2019 Financial metrics (GEL millions) Annual GEL millions, unless otherwise noted 30-Sep-19 31-Dec-18 Change 2015 2016 2017 2018 9M18 9M19 Change Cost (GCAP share) 63 61 2.6% Development Capex NMF NMF 77 6
Slide 40: Hospitality and commercial real estate business overview
Private early stage portfolio Hospitality and commercial real estate business overview Arrivals of tourists and tourism revenue | Georgia Investment rationale Source: Georgian National Tourism Administration ▪ Record number of tourists visiting Georgia every year: 4.8 million visitors in 2018, up 17
Slide 41: Hospitality and commercial real estate business overview cont’d
Private early stage portfolio Hospitality and commercial real estate business overview cont’d Key highlights | 30 September 2019 Financial metrics (GEL millions)2 Annual GEL millions, unless otherwise noted 30-Sep-19 31-Dec-18 Change 2016 2017 2018 9M18 9M19 Change NOI3 from operating leases 3 3 5 3
Slide 42: Wine business overview
Private early stage portfolio Wine business overview Georgian wine exports (Bottles, US$ millions) Investment rationale ▪ 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 Our export market share (9M19)- 5% ▪ Georgia
Slide 43: Wine business overview cont’d
Private early stage portfolio Wine business overview cont’d Key highlights | 30 September 2019 Financial metrics (GEL millions) Annual GEL millions, unless otherwise noted 30-Sep-19 31-Dec-18 Change 2015 2016 2017 2018 9M18 9M19 Change Wine Revenue 18 18 20 29 17 26 50.8% GCAP ownership 86% 80% NMF
Slide 44: Beer business overview
Private early stage portfolio Beer business overview Market opportunity Investment rationale Per capita beer consumption implies room for growth ▪ Beer consumption per capita at one of the lowest levels in the wider region Beer consumption per capita, L; 2017 at 27.5 liters per capita Georgia falls
Slide 45: Beer business overview cont’d
Private early stage portfolio Beer business overview cont’d Key highlights | 30 September 2019 Financial metrics (GEL millions) 30-Sep-19 Change Annually GEL millions, unless otherwise noted 31-Dec-18 2017 2018 9M18 9M19 Change GCAP ownership 86% 80% NMF Beer Revenue 18 29 24 35 44.0% LTM Revenue2 2
Slide 46: Attractive service business – Auto Service
Pipeline Attractive service business – Auto Service We aim to build a diversified business model combining many different auto-related services to capitalise on the large and growing automotive services market Number of registered vehicles in Georgia (‘000) – 8% CAGR 2012-2018 Room for growth in the
Slide 47: Periodic technical inspection business overview
Pipeline Periodic technical inspection business overview Investment rationale Key highlights | 30 September 2019 ▪ Georgia’s Auto park continues to grow steadily, with 8% CAGR during the years 2012-2018 ▪ Georgia lags behind developed countries by number of private passenger cars per capita, showing
Slide 48: Education - Fragmented education market offers attractive opportunity
Pipeline Education - 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 growing market Pr
Slide 49: Recent acquisitions - education business
Pipeline Recent acquisitions - education business 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 / EBITDA 2020. ➢ Valu
Slide 50: 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 51: 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 51
Slide 52: 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 53: 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 54: Institutional oriented reforms
Institutional oriented reforms Ease of Doing Business | 2019 (WB Doing Business Report) Economic Freedom Index | 2019 (Heritage Foundation) UK 7 New Zealand 1 Singapore 2 USA 12 Georgia 6 up from 9th in 2018 Estonia 15 Top 8 in Europe region out of 44 Norway 7 Georgia 16 US 8 Latvia 35 countries Est
Slide 55: Diversified resilient economy
Diversified resilient economy Gross domestic product Diversified nominal GDP structure, 1H19 Source: Geostat Source: Geostat Hotels and Education Other Trade 20 16% restaurants 5% 5% 12.6% Financial 17% 3% intermediation 9.6% 9.4% 12% 15 5% 7.2% 6.2% 6.4% Healthcare 5.8% 8% 4.6% 4.8% 4.7% 5.4% 4.7%
Slide 56: 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 0.78 0.78 0.77 18.3 0.77 2000 17.4 17.9 17.4 17.3 17.2 16.9 20 0.76 0.75 15.1 15.4 0.74 14.6 14.1 14.0 1900 0.74 13.9 13.9 0.73 13.5 0.73 0.73 12.4 12.6 12
Slide 57: Inflation and monetary aggregates
40 60 80 20 0 -40 -20 Aug-00 Sep-11 Feb-01 Dec-11 Aug-01 Mar-12 Feb-02 Jun-12 Aug-02 Sep-12 Feb-03 Sources: Geostat, NBG Sources: NBG, GeoStat Aug-03 Dec-12 Feb-04 Mar-13 Aug-04 Jun-13 Feb-05 Sep-13 Aug-05 Dec-13 Feb-06 Aug-06 Mar-14 Feb-07 Jun-14 Aug-07 Sep-14 M2 vs. inflation, y-o-y,% Feb-08 Dec-1
Slide 58: Current account deficit financed by FDI
Current account deficit financed by FDI 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 10.0 30% to improve to a historic low in 1H19 30% Service exports Goods exports, geo-originated Re-ex
Slide 59: Diversified sources of capital
Diversified sources of capital Strong foreign investor interest Visitors and tourism revenues Sources: GeoStat Sources: GNTA, NBG 2,500 25% 3600 8.7 10.0 7.9 3100 6.7 6.8 7.2 2,000 17.2% 20% 5.9 6.3 8.0 2600 5.7 15.1% 4.7 13.0% 2100 6.0 1,500 12.3% 12.4% 11.5% 15% 3.1 11.1% 1600 4.0 9.6% 9.3% 8.5% 1
Slide 60: Tourism sector on the rise
Tourism sector on the rise Tourism revenues to GDP Spending per arrival, 2017 Sources: NBG, Geostat Source: WDI 3600 25% 1600 1496 20% 19% 3100 18% 17% 1310 15% 20% 1400 2600 14% US$ million 11% 11% 1200 2100 15% 9% 1000 857 848 823 1600 6% 10% 771 763 757 714 800 692 661 629 1100 591 555 527 5% 600
Slide 61: Diversified foreign trade
Diversified foreign trade Goods’ Trade Deficit Oil imports Source: GeoStat Source: GeoStat Based on preliminary data in the first nine months of 2019, the trade deficit narrowed by 11.7 % 1200 y-o-y to US$ 3.8 billion from US$ 4.3 billion, further decreasing FX pressure. Oil imports, US$ mn Oil impo
Slide 62: Diversified foreign trade
Diversified foreign trade Imports of Goods, contribution to growth Foreign Demand, 1H19 Source: NBG Source:, Geostat 40% 40% Machinery and transport equipment 30% 30% 6% Crude materials, except fuels 20% 20% 21% 10% 10% 6% Manufactured goods 0% 0% Beverages and tobacco -10% -10% 12% -20% -20% Chemic
Slide 63: 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 twice increased its refinancing rate in September, by 50 basis points each time, up to 7.5%, aiming to alleviate inflationary pressures due to the NEER deprec
Slide 64: Flexible exchange rate regime as 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 Dec-12 Mar-14 Sources: NBG Sources: NBG Mar-13 May-14 Jul-14 Jun-13 -120 Sep-14 Sep-13 Nov-14 4040 Dec-13 Jan-15 120 Mar-14 Mar-15 4040 Jun-14 May-15 EUR/GEL Sep-14 Jul-15 Dec-14 Sep-15 Nov-15 27202020 Mar-15 60
Slide 65: Monetary policy and banking sector indicators
05/01/17 05/02/17 May-14 05/03/17 Jul-14 Sources: NBG 05/04/17 Sep-14 Sources: NBG 05/05/17 Nov-14 05/06/17 05/07/17 Jan-15 05/08/17 Mar-15 05/09/17 May-15 05/10/17 Jul-15 05/11/17 Sep-15 05/12/17 Nov-15 05/01/18 Jan-16 05/02/18 Mar-16 05/03/18 May-16 05/04/18 Jul-16 05/05/18 Sep-16 05/06/18 Nov-16
Slide 66: 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 August 2019 70% 50% 60% 40% 50% 40% 30% Multilateral 30% 20% 59% Domestic External 20% 10% 19% 81% 10% 0% 0% 2016 2023F 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019E 2020F 2021F 202
Slide 67: 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 68: 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 68
Slide 69: 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 70: Georgia Capital’s highly experienced management team
Georgia Capital’s highly experienced management team Georgia Capital Management Irakli Gilauri, Chairman & CEO Nikoloz Gamkrelidze, CEO, Georgia Healthcare Group Formerly CEO of BGEO Group since 2011, joined as CFO of Bank of Previously deputy CEO (Finance) of BGEO Group. Our healthcare business sto
Slide 71: Net Asset Value evolution
Net Asset Value evolution Change since Change since Change since 31-Dec-18 31-Dec-18 31-Dec-18 GEL 44.32 GEL 47.56 +7.3% GEL 53.90 +21.6% GEL 50.04 +12.9% NAV per share GBP 13.05 GBP 13.53 +3.7% GBP 14.81 +13.5% GBP 13.78 +5.6% GEL millions, except per share information Private Private Private 54% 6
Slide 72: 3Q19 NAV Statement
3Q19 NAV Statement 1. Value 2a. Capital 3. Operating 4a. Net interest 4b. Liquidity GEL thousands unless otherwise noted Jun-19 2b. Buy-backs Sep-19 Change % creation allocation expenses expense management Listed Portfolio Companies 1,194,712 (174,290) - - - - - 1,020,422 -14.6% GHG1 661,413 (115,76
Slide 73: Value creation across private portfolio | 3Q19
Value creation across private portfolio | 3Q19 Operating Multiple Private Portfolio Businesses Greenfields Value Creation Performance Change GEL thousands (1) (2) (3) (1)+(2)+(3) Late Stage 39,428 - (7,095) 32,333 Water Utility 33,913 - - 33,913 Housing Development - - - - P&C Insurance 5,515 - (7,0
Slide 74: Portfolio overview | September 2019
Portfolio overview | 30 September 2019 GEL thousands unless otherwise noted Ownership % Valuation Method Multiples Fair Values Sep-19 Jun-19 Dec-18 Sep-19 Jun-19 change Dec-18 Change Listed Portfolio Companies 1,020,422 1,194,712 -14.6% 977,827 4.4% GHG 57.0% LSE 545,646 661,413 -17.5% 520,332 4.9%
Slide 75: Multiple of Invested Capital (MOIC) | September 2019
Multiple of Invested Capital (MOIC) | 30 September 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 268 418 138 1,020 5.9x 2.1x Georgia Healthcare Group PLC 139 131 4 546 4.9x 1.0x Bank of Georgia Group
Slide 76: 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 77: 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 78: Georgia Capital
GEORGIA CAPITAL