Georgia Capital PLC · LSE:CGEO
Georgia Capital — FY2024 Earnings Presentation
92 slides from Georgia Capital's earnings presentation, 2025
Slide 1: Investor Presentation 4Q24 & FY24 Results
INVESTOR PRESENTATION 4Q24 & FY24 RESULTS
Slide 2: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APPENDICES 2
Slide 3: GCAP Shareholders at 31-Dec-24
GEORGIA CAPITAL (GCAP) SHAREHOLDERS AT 31-DEC-24 GCAP SHAREHOLDERS ALLOCATION BY GEOGRAPHY GCAP TOP 10 SHAREHOLDERS Rank Shareholder name Ownership Other 17.5% 1. Gemsstock Ltd 8.50% 2. Allan Gray Ltd 8.08% 1 USA 30.7% 3. Lazard Asset Management LLC 7.15% Norway 2.3% 4. Eaton Vance Management 4.87%
Slide 4: Key Figures at a Glance
KEY FIGURES AT A GLANCE NAV HIGHLIGHTS AT 31-DEC-241 PORTFOLIO VALUE BREAKDOWN AT 31-DEC-24 Portfolio value Net debt 43% Listed & Observable 3,761 154 57% Private GEL million GEL million US$ 1,340 million US$ 55 million STARTING FROM 2024, PLATFORM COSTS NAV NAV per share ARE TARGETED AT MAXIMUM 0.7
Slide 5: Our Portfolio Overview as at 31-Dec-24
OUR PORTFOLIO OVERVIEW AS AT 31-DEC-24 LISTED AND OBSERVABLE PRIVATE PORTFOLIO PORTFOLIO Value: GEL 1,609m Value: GEL 2,152m 42.8% of the total portfolio value 57.2% of the total portfolio value LARGE PORTFOLIO COMPANIES LION RETAIL INSURANCE HOSPITALS FINANCE (PHARMACY) (P&C AND MEDICAL) GROUP 1 Va
Slide 6: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APPENDICES 6
Slide 7: Our Strategy
OUR STRATEGY 01 02 03 INVESTING IN CAPITAL- OUR ROBUST CAPITAL ESG AT THE CORE LIGHT OPPORTUNITIES ONLY MANAGEMENT FRAMEWORK OF OUR STRATEGY ESG 7
Slide 8: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY ▪ Investing in capital-light opportunities only ▪ Our capital management framework ▪ ESG at the core of our strategy ▪ Our strategic priorities 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APP
Slide 9: The Capital-Light Investment Strategy
THE CAPITAL-LIGHT INVESTMENT STRATEGY STRONG VALUE CREATION POTENTIAL GCAP INVESTS IN GEORGIA IN WITHOUT SIGNIFICANT CAPITAL SECTORS NOT REQUIRING COMMITMENTS INTENSIVE CAPITAL COMMITMENTS Manage third-party money and/or establish OUR BREAD AND BUTTER partnerships in capital heavy industries STRONG
Slide 10: Mapping Existing Portfolio to Regional Growth Opportunities
MAPPING EXISTING PORTFOLIO TO THE REGIONAL GROWTH OPPORTUNITIES CURRENT REGIONAL LONG-TERM REGIONAL LARGE CAPITAL-LIGHT EXPANSION POTENTIAL EXPANSION POTENTIAL Retail (Pharmacy) ✓ ✓ Yes Yes LARGE PORTFOLIO COMPANIES Insurance (P&C and medical) ✓ No No Hospitals ✓ No No Renewable No No PORTFOLIO COMP
Slide 11: Our Investment Strategy
OUR INVESTMENT STRATEGY GCAP INVESTS IN CAPITAL-LIGHT, MONETISE LARGE OPPORTUNITIES, WHICH HAVE A POTENTIAL TO BECOME GEL 300+ MILLION IN EQUITY VALUE OVER 3-5 YEARS THE CYCLE OF GCAP’S STRATEGY Invest Our key strategic principle is to develop or buy capital-light businesses at affordable prices. Gr
Slide 12: Our Investment Strategy (Cont'd)
OUR INVESTMENT STRATEGY (CONT’D) IRR & MOIC1 IS THE KEY DRIVER FOR GCAP TO INVEST IN NEW ROIC IS AT THE CORE OF OUR DECISION MAKING WHEN OUR OPPORTUNITIES PORTFOLIO COMPANIES ARE INVESTING OR DIVESTING ASSETS / BUSINESSES KEY INVESTMENT METRICS AT GCAP LEVEL KEY METRIC FOR REINVESTMENT DECISION MAKI
Slide 13: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY ▪ Investing in capital-light opportunities only ▪ Our capital management framework ▪ ESG at the core of our strategy ▪ Our strategic priorities 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APP
Slide 14: 360-Degree Framework
360-DEGREE FRAMEWORK GCAP SHARE PRICE IS AT THE CORE OF NCC RATIO NAVIGATION TOOL OUR INVESTMENT DECISION MAKING po rtun ity Inv es t 15% 40% m op en to ack ppo Buyb 360o rtunity MEANINGFUL TACTICAL CASH ANALYSIS BUYBACKS & BUYBACKS & PRESERVATION INVESTMENTS INVESTMENTS STRATEGY Sal e o p p o r t u
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: 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 18: Leverage Overview of Our Private Businesses
LEVERAGE OVERVIEW OF OUR PRIVATE BUSINESSES TOTAL NET DEBT/EBITDA 5.5x 5.3x DEVELOPMENT OVERVIEW 4.6x 3.9x 3.7x 3.5x 3.5x 3.5x 3.3x 3.2x ➢ LTM EBITDA up 64.9% as at Dec-24 from Dec-19. 3.0x GEL MILLION 189 1,039 200 1,062 225 1,025 268 998 258 913 238 927 245 803 248 787 245 849 271 946 312 935 Dec-
Slide 19: Aggregated Leverage Overview Across Large and Investment Stage Companies
AGGREGATED LEVERAGE OVERVIEW ACROSS OUR LARGE AND INVESTMENT STAGE PORTFOLIO COMPANIES ADJUSTED1 NET DEBT/EBITDA DEVELOPMENT OVERVIEW 3.2x 3.1x 3.3x 3.1x 2.6x 2.8x 2.8x 2.8x 2.6x 2.6x 2.4x 3.0x 2.0x 702 677 GEL MILLION 7 7 1.0x 624 625 603 592 8 9 89 528 8 0.0x 131 93 -1.0x -2.0x -3.0x -4.0x 184 598
Slide 20: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY ▪ Investing in capital-light opportunities only ▪ Our capital management framework ▪ ESG at the core of our strategy ▪ Our strategic priorities 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APP
Slide 21: Core Strategy Enablers
CORE STRATEGY ENABLERS THREE FUNDAMENTAL ENABLERS: 01 Superior corporate governance THREE FUNDAMENTAL ENABLERS 02 Access to management 03 Access to capital STRONG ACCESS TO ACCESS TO CAPITAL CORPORATE MANAGEMENT GOVERNANCE 21
Slide 22: ESG Principles Lie at the Heart of Our Business
ENVIRONMENTAL, SOCIAL AND GOVERNANCE PRINCIPLES LIE AT THE HEART OF OUR BUSINESS WE INVEST IN INDUSTRIES WHICH HAVE POSITIVE IMPACT OUR PORTFOLIO IS CONCENTRATED ACROSS ON PEOPLE AND PLANET STRUCTURALLY IMPORTANT INDUSTRIES IN GEORGIA, CONNECTING US TO THE COUNTRY’S Our healthcare businesses, contri
Slide 23: ESG at the Core of Our Strategy
ESG AT THE CORE OF OUR STRATEGY RECENT KEY ESG DEVELOPMENTS 01 02 03 04 DELIVERED ON THE COMMITTED TO THE ISSUED FIRST EVER ENHANCED ESG STRATEGIC PRIORITY NET-ZERO INITIATIVE SUSTAINABILITY-LINKED EXPERTISE WITH UN BONDS IN THE REGION GLOBAL COMPACT’S GUIDANCE ▪ Georgia Capital delivered on its ▪ I
Slide 24: Increased Focus on Impact Investing
INCREASEAD FOCUS ON IMPACT INVESTING COMMITTING TO UN’S PRINCIPLES AND MAPPING OUR BUSINESSES TO THEIR SUSTAINABLE DEVELOPMENT GOALS (“SDGS”) Direct SDG Supportive / Indirect SDG Business Impact Impact GCAP HoldCo 8, 10, 13 5 Retail (Pharmacy) 3, 8, 12 5, 11 Insurance 3, 8, 9 1, 10 Hospitals 3, 8, 1
Slide 25: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY ▪ Investing in capital-light opportunities only ▪ Our capital management framework ▪ ESG at the core of our strategy ▪ Our strategic priorities 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APP
Slide 26: Our Strategic Priorities
DELEVERAGING GCAP HOLDCO BY BRINGING DOWN AND MAINTAINING THE NCC RATIO BELOW 15% REDUCE AND MAINTAIN PORTFOLIO COMPANIES’ LEVERAGE TO RESPECTIVE TARGETED LEVELS ACHIEVE ESG TARGETS AT BOTH GCAP HOLDCO AND ESG PORTFOLIO COMPANY LEVELS OUR STRATEGIC PRIORITIES CONTINUED PROGRESS ON THE DIVESTMENT OF
Slide 27: Our Long-Term Aspiration
OUR LONG-TERM ASPIRATION Significantly reduced leverage at the GCAP HoldCo level ACHIEVEMENT OF OUR STRATEGIC PRIORITIES Capacity to redeploy our existing capital WILL ENABLE GCAP TO without the need for new equity share GRADUALLY TRANSFORM issuance/raise INTO A SUSTAINABLE PERMANENT CAPITAL Consist
Slide 28: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY 03 4Q24 & FY24 PERFORMANCE OVERVIEW ▪ Key developments ▪ Georgia Capital results overview ▪ Aggregated portfolio results and valuations overview 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APPENDICES 28
Slide 29: 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 30: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY 03 4Q24 & FY24 PERFORMANCE OVERVIEW ▪ Key developments ▪ Georgia Capital results overview ▪ Aggregated portfolio results and valuations overview 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APPENDICES 30
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY 03 4Q24 & FY24 PERFORMANCE OVERVIEW ▪ Key developments ▪ Georgia Capital results overview ▪ Aggregated portfolio results and valuations overview 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APPENDICES 38
Slide 39: 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 40: 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 41: 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 (EXCL. BEER (GEL MILLION) AND DISTRIBUTION BUSINESS) (GEL MILLION) +2.1x 299 +8.1% 31-Dec-23 260 139 +7.5% +2.3x 30-Sep-
Slide 42: 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 43: 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 44: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APPENDICES 44
Slide 45: Lion Finance Group PLC Overview
Listed Portfolio LION FINANCE GROUP PLC OVERVIEW https://lionfinancegroup.uk/ https://lionfinancegroup.uk/ INVESTMENT RATIONALE KEY MEDIUM-TERM TARGETS • The first entity from Georgia to be listed on the premium segment of the Main Market of the LSE (LSE: BGEO) since February 2012. LOAN BOOK • High
Slide 46: Lion Finance Group PLC Overview (Cont'd)
Listed Portfolio LION FINANCE GROUP PLC OVERVIEW (CONT’D) https://lionfinancegroup.uk/ https://lionfinancegroup.uk/ Stock price performance Capital distribution (GEL million) Payout ratio: GBP 47.10 65.00 as of 31-Dec-24 35% 37% 37% 31% 55.00 582 45.00 535 522 An estimate based on a final dividend o
Slide 47: Water Utility Business Valuation Overview
Option valuation WATER UTILITY BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW ➢ GCAP and the majority shareholder have put and call options (GEL MILLION) for the minority 20% equity interest in the water utility business GCAP’S PUT OPTION MAJORITY SHAREHOLDER’S 697.0 CALL OPTION 8.25X 8.90X
Slide 48: Retail (Pharmacy) Business Overview
Private large portfolio companies EXTERNALLY VALUED RETAIL (PHARMACY) BUSINESS OVERVIEW Key focus areas in medium and long-term 410 14 5 › Expending retail footprint in Georgia Pharmacies in total The Body Shop stores Optics – Alain Afflelou › Focusing on further strengthening and differentiating bo
Slide 49: Retail (Pharmacy) Business Overview (Cont'd)
Private large portfolio companies EXTERNALLY VALUED RETAIL (PHARMACY) BUSINESS OVERVIEW (CONT’D) REVENUE AVERAGE BILL SIZE & NUMBER OF BILLS ISSUED Gross profit margin (%) Number of bills issued, million 24.5% 25.5% 25.5% 25.4% 26.0% 28.5% 28.7% 30.7% 27.2% 31.4% 25.3 27.1 28.8 27.6 29.0 31.0 31.3 3
Slide 50: Retail (Pharmacy) 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 51: 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 52: Insurance Business (P&C) Overview
Private large portfolio companies EXTERNALLY VALUED INSURANCE BUSINESS (P&C) OVERVIEW MARKET SHARE 3Q24 (GROSS PREMIUMS WRITTEN) MARKET & Aldagi GROSS PREMIUMS WRITTEN1 (GEL MILLION) INVESTMENT RATIONALE • Significantly underpenetrated insurance market in Georgia (0.8% penetration in property and ca
Slide 53: Insurance Business (P&C) Overview (Cont'd)
Private large portfolio companies 30% EXTERNALLY VALUED INSURANCE BUSINESS (P&C) OVERVIEW (CONT’D) Distribution Mix (GPW %) | FY24 COMBINED RATIO -2.0ppts +0.9ppts MTPL Channel 2% 89.5% 87.5% 89.0% 89.9% 82.1% 81.5% 80.8% 79.2% 77.5% Partnerships with 73.9% 72.6% 75.2% 75.4% Financial Institutions 4
Slide 54: Insurance Business (Medical) Overview
Private large portfolio companies EXTERNALLY VALUED INSURANCE BUSINESS (MEDICAL) OVERVIEW Largest medical insurer in the country with 35%1 market share Offering a variety of medical insurance products, with a wide distribution network to the Georgian population BUSINESSES MAJOR GROWTH DRIVERS Market
Slide 55: Insurance Business (Medical) Overview (Cont'd)
Private large portfolio companies EXTERNALLY VALUED INSURANCE BUSINESS (MEDICAL) OVERVIEW (CONT’D) NUMBER OF INSURED & RENEWAL RATE REVENUE (NET INSURANCE PREMIUMS EARNED) 81.8% 83.5% 79.1% 74.3% 73.4% 76.9% 77.5% 73.4% 78.0% 77.4% 77.3% 400 69.7% 83.4% 70.0% 366 366 200.0 50.0% 167.5 300 GEL millio
Slide 56: 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 57: 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 58: Hospitals Business Overview
Private large portfolio companies EXTERNALLY VALUED HOSPITALS BUSINESS OVERVIEW State healthcare spending, GEL million Market share by number of beds, GEL million 3,000 13% 14% 11% GCAP Hospitals 2,219 14% 10% 10% 12% 2,500 9% 9% 9% 9% State 839 5% 8% 8% 8% Aversi 813 5% 800 10% 2,000 Geo Hospitals
Slide 59: Hospitals Business Overview (Cont'd)
Private large portfolio companies EXTERNALLY VALUED HOSPITALS BUSINESS OVERVIEW (CONT’D) CASH FLOW BED OCCUPANCY RATE - LARGE AND SPECIALTY HOSPITALS HIGHLIGHTS1 4Q24 FY24 Average length of stay 3.0 5.1 4.9 5.0 4.7 5.0 250.0% GEL 48.8m Operating cash flow GEL 25.8m 2.5 200.0% Change (y-o-y) NMF NMF
Slide 60: 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 61: 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 62: Renewable Energy Business Overview
Private investment stage portfolio companies EXTERNALLY VALUED RENEWABLE ENERGY BUSINESS OVERVIEW ELECTRICITY CONSUMPTION INVESTMENT RATIONALE ▪ Favorable supply-demand dynamics pushing the power prices up. 20.0 ▪ 20.3% of local consumption satisfied ▪ As a part of ongoing gradual market reforms, th
Slide 63: Renewable Energy Business Overview (Cont'd)
Private investment stage portfolio companies EXTERNALLY VALUED RENEWABLE ENERGY BUSINESS OVERVIEW (CONT’D) PERFORMANCE HIGHLIGHTS RENEWABLE ENERGY PROJECTS OVERVIEW | 31 December 2024 Generation, 6.5 8.7 21.4 22.3 17.3 19.8 45.2 50.8 100.9 99.7 103.7 68.3 77.5 86.0 282.0 254.0 GWh Gross Commissioned
Slide 64: Renewable Energy 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 65: 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 66: Education Business Overview
Private investment stage portfolio companies EXTERNALLY VALUED EDUCATION BUSINESS OVERVIEW INDUSTRY INVESTMENT RATIONALE CURRENT OPERATIONAL METRICS AND TARGETS FOR SHORT-MEDIUM TERM ▪ Highly fragmented general education market with consolidation opportunity. ▪ Market with strong growth potential. C
Slide 67: Education Business Overview (Cont'd)
Private investment stage portfolio companies EXTERNALLY VALUED EDUCATION BUSINESS OVERVIEW (CONT’D) Operating highlights As of 31-Dec-24 PRIVATE K-12 MARKET IN GEORGIA Number of learners in private K-12 market Turnover of private K-12 market Capacity utilization, 80.9% 600 4,9 4.5 4.7 Change (y-o-y)
Slide 68: 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 69: 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 70: Clinics & Diagnostics Business Overview
Private investment stage portfolio companies EXTERNALLY VALUED CLINICS & DIAGNOSTICS BUSINESS OVERVIEW HIGH GROWTH PROSPECTS IN THE CLINICS BUSINESS Outpatient visits per capita, Georgia Outpatient encounters per capita Government Expenses on Primary Care VS GDP 10.0 7.8 4.4 8.0 5.8 15% 5.7 12.2% 3.
Slide 71: Clinics & Diagnostics Business Overview (Cont'd)
Private investment stage portfolio companies EXTERNALLY VALUED CLINICS & DIAGNOSTICS BUSINESS OVERVIEW (CONT’D) CLINICS (4Q24) DIAGNOSTICS (4Q24) Market share by number of registered patients (9M24) 16 Outpatient diagnostic and treatment services in Tbilisi GCAP Polyclinics 390,450 13% c.215,000 Num
Slide 72: Clinics & Diagnostics 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 73: 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 74: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APPENDICES 74
Slide 75: 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 76: 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 77: 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 78: 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 79: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APPENDICES ▪ Board of directors and management team ▪ Georgia Capital financial statements 79
Slide 80: Our Robust Corporate Governance Framework
OUR ROBUST CORPORATE GOVERNANCE FRAMEWORK BOARD OF DIRECTORS COMPOSITION IRAKLI GILAURI, CHAIRMAN & CEO MASSIMO GESUA’SIVE SALVADORI Experience: Formerly BGEO Group CEO; more than 20 years INDEPENDENT NON-EXECUTIVE DIRECTOR of experience in the banking, investment and finance. Experience: Currently
Slide 81: GCAP's Highly Experienced Management Team
GCAP’S HIGHLY EXPERIENCED MANAGEMENT TEAM IRAKLI GILAURI, CHAIRMAN & CEO NINO VAKHVAKHISHVILI, CHIEF ECONOMIST Irakli Gilauri formerly served as the CEO of BGEO Group from 2011 to May 2018. He joined as CFO of Bank Joined Georgia Capital in 2018. Nino is an IMF’s Short-term Expert and a visiting lec
Slide 82: Contents
CONTENTS 01 GEORGIA CAPITAL AT A GLANCE 02 OUR STRATEGY 03 4Q24 & FY24 PERFORMANCE OVERVIEW 04 PORTFOLIO OVERVIEW 05 MACROECONOMIC OVERVIEW | GEORGIA 06 APPENDICES ▪ Board of directors and management team ▪ Georgia Capital financial statements 82
Slide 83: 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 84: Value Creation in Private Portfolio | 4Q24
VALUE CREATION IN PRIVATE PORTFOLIO | 4Q24 Operating Multiple Change and Portfolio Businesses Value Creation in 4Q24 460.8 Performance FX GEL thousand (1) (2) (1)+(2) Lion Finance Group 274,564 Water Utility 28,000 Total Listed and Observable Portfolio Companies - - 302,564 GEL MILLION Large Portfol
Slide 85: Value Creation in Private Portfolio | FY24
VALUE CREATION IN PRIVATE PORTFOLIO | FY24 Operating Multiple Change and Portfolio Businesses Value Creation in FY24 435.3 Performance FX GEL thousand (1) (2) (1)+(2) Lion Finance Group 339,985 Water Utility 29,000 Total Listed and Observable Portfolio Companies - - 368,985 GEL MILLION Large Portfol
Slide 86: NAV Statement | 4Q24
NAV STATEMENT | 4Q24 2a. 4. Liquidity 3.Operating GEL thousands unless otherwise noted 30-Sep-24 1.Value Creation Investments and 2b. Buybacks 2c. Dividends Management/ FX / 31-Dec-24 Change % Expenses Divestments Other Listed and Observable Portfolio Companies Lion Finance Group 1,146,471 274,564 -
Slide 87: NAV Statement | FY24
NAV STATEMENT | FY24 2a. 4. Liquidity 3.Operating GEL thousands unless otherwise noted 31-Dec-23 1.Value Creation Investments and 2b. Buybacks 2c. Dividends Management/ FX / 31-Dec-24 Change % Expenses Divestments Other Listed and Observable Portfolio Companies Lion Finance Group 1,225,847 339,985 -
Slide 88: Income Statement | 4Q24
INCOME STATEMENT | 4Q24 Income statement GEL ‘000, unless otherwise noted 4Q24 4Q23 Change Dividend income 9,826 34,148 -71.2% Buyback dividend - - NMF Interest income 2,076 2,345 -11.5% Realised/unrealised gain on liquid funds 6 772 -99.2% Interest expense (9,101) (9,026) 0.8% Gross operating incom
Slide 89: Income Statement | FY24
INCOME STATEMENT | FY24 Income statement GEL ‘000, unless otherwise noted FY24 FY23 Change Dividend income 129,201 162,527 -20.5% Buyback dividend 72,551 73,356 -1.1% Interest income 7,477 16,642 -55.1% Realised/unrealised loss on liquid funds /Loss on GCAP Eurobond (796) (1,574) -49.4% buybacks Int
Slide 90: 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 91: 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
Slide 92: Company Information
COMPANY INFORMATION Georgia Capital PLC Registered Address Central Square, 29 Wellington Street, Leeds, LS1 4DL London W1K 5DB 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