Georgia Capital PLC · LSE:CGEO
Georgia Capital — FY2021 Earnings Presentation
113 slides from Georgia Capital's earnings presentation, Feb 23, 2022
Slide 1: Investor Presentation 4Q21 & FY21 results
INVESTOR PRESENTATION 4Q21 & FY21 results 23 February 2022
Slide 2: Contents
CONTENTS 01 COVID-19 UPDATE | GEORGIA 02 GEORGIA CAPITAL AT A GLANCE 03 STRATEGY AND CAPITAL ALLOCATIONS 04 4Q21 & FY21 RESULTS OVERVIEW 05 PORTFOLIO OVERVIEW 06 FY21 GEORGIAN MACRO OVERVIEW 07 APPENDICES 2
Slide 3: COVID-19 statistics
COVID-19 STATISTICS COVID-19 CASES: DYNAMICS IN GEORGIA 46.9% OF TOTAL ADULT POPULATION HAS RECEIVED AT LEAST A SINGLE VACCINE DOSE, WHILE 43.2% IS FULLY VACCINATED AS OF 21 FEBRUARY 2022 1800 Total cases (LHS) Daily cases (RHS) 30 % OF ADULT POPULATION FULLY 1600 VACCINATED 2% 25 9% +39.7 ppts 1400
Slide 4: Real GDP posting double-digit growth of 10.6% in 2021
REAL GDP POSTING DOUBLE-DIGIT GROWTH OF 10.6% IN 2021 Real GDP Y-o-Y change 2021 REAL GDP UP 3.2% COMPARED TO 2019 Real GDP change vs 2019 45% KEY DRIVERS ➢ Growth in 1H21 was largely driven by the expansionary fiscal policy, with overall fiscal expenditures (current and 26% capital) growing by 21%
Slide 5: Georgian Lari - top performer in the region
GEORGIAN LARI - TOP PERFORMER IN THE REGION AS OF 22 FEBRUARY 2022, GEL HAS APPRECIATED BY 10.1% COMPARED TO THE BEGINNING OF 2021 AND BY 16.1% COMPARED TO THE 2021 LOW 150 GEL APPRECIATION DRIVERS TRY = 229 140 130 ➢ Record high remittance inflows, increasing by 25% y-o-y in 120 2021; 110 ➢ Solid r
Slide 6: Inflation to decelerate from the 2nd half of 2022
INFLATION TO DECELERATE FROM THE 2ND HALF OF 2022 Inflation Y-o-Y vs. inflation target Sources: NBG, GeoStat SUPPLY SIDE PRESSURES PERSIST 18 Headline Inflation Target Core Inflation 14 3-MONTH BASE EFFECT IN PLAY 13.9 12 13 10 ➢ Annual inflation reached 13.9% in December 2021 and January 8 2022 on
Slide 7: Fiscal consolidation underway with debt and deficit shrinking
FISCAL CONSOLIDATION UNDERWAY WITH DEBT AND DEFICIT SHRINKING Public debt Sources: MoF FISCAL SUPPORT HAS BEGUN MODERATING External public debt to GDP, % Total public debt to GDP, % 59.9% ➢ Fiscal expenditures grew by 13% y/y in real terms in 1H21 (21% in 60% nominal), including a 20% growth (30% in
Slide 8: Contents
CONTENTS 01 COVID-19 UPDATE | GEORGIA 02 GEORGIA CAPITAL AT A GLANCE 03 STRATEGY AND CAPITAL ALLOCATIONS 04 4Q21 & FY21 RESULTS OVERVIEW 05 PORTFOLIO OVERVIEW 06 FY21 GEORGIAN MACRO OVERVIEW 07 APPENDICES 8
Slide 9: Georgia Capital shareholders at 31-Dec-21
GEORGIA CAPITAL (GCAP) SHAREHOLDERS AT 31-DEC-21 GCAP SHAREHOLDERS ALLOCATION BY GEOGRAPHY GCAP TOP 10 SHAREHOLDERS Rank Shareholder name Ownership 1 Allan Gray Ltd 5.51% Other 17.7% USA 3 2 Schroder Investment Management Ltd 3.99% 23.2% 3 M&G Investment Management Ltd 3.95% 4 Lazard Asset Managemen
Slide 10: Our portfolio overview
OUR PORTFOLIO OVERVIEW LISTED ASSETS PRIVATE ASSETS INVESTMENT STAGE PORTFOLIO LISTED ASSETS LARGE PORTFOLIO COMPANIES COMPANIES OTHER ASSETS • Housing Development • Bank of Georgia (BoG) • Healthcare Services (GHG) • Renewable Energy • Hospitality & • Retail (pharmacy) (GHG) • Education Commercial
Slide 11: Our private portfolio at a glance
OUR PRIVATE PORTFOLIO AT A GLANCE DEFENSIVE, HIGH QUALITY ASSETS WITH STRONG AND GROWING CASH FLOW STREAMS EXPECTED TO CLOSE TO GEL STRONG CASH FLOW DOMINANT MARKET BECOME GEL 0.5BLN+ NON-CYCLICAL 0.5BLN+ VALUE GENERATION POSITION IN VALUE Healthcare Services ✓ ✓ ✓ ✓ LARGE PORTFOLIO Retail COMPANIES
Slide 12: Portfolio highlights | December 2021
PORTFOLIO HIGHLIGHTS | 31 DECEMBER 2021 Gross investment of GEL 1.6b Net investment of GEL 521m Portfolio fair value of GEL 3.6b Listed assets Large portfolio companies Investment stage portfolio companies Original 129 390 220 11 150 70 investment MOIC1 8.6 4.3 3.6 25.6 1.3 1.9 1,499 GEL million 681
Slide 13: Contents
CONTENTS 01 COVID-19 UPDATE | GEORGIA 02 GEORGIA CAPITAL A GLANCE 03 STRATEGY AND CAPITAL ALLOCATIONS 04 4Q21 & FY21 RESULTS OVERVIEW 05 PORTFOLIO OVERVIEW 06 FY21 GEORGIAN MACRO OVERVIEW 07 APPENDICES 13
Slide 14: 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 14
Slide 15: Capital allocation philosophy
CAPITAL ALLOCATION PHILOSOPHY WE ARE TARGETING TO INVEST IN OPPORTUNITIES WHICH GCAP SHARE PRICE IS AT CORE OF PRODUCE GREATER RETURN THAN BUYING GCAP SHARES OUR DECISION MAKING VIS-À-VIS INVESTMENTS We perform 360-degree analysis each time we make a capital allocation decision and compare: 360o • I
Slide 16: Capital allocation philosophy (cont'd)
CAPITAL ALLOCATION PHILOSOPHY (CONT’D) IRR & MOIC1 IS THE KEY DRIVER ROIC IS AT CORE OF DECISION MAKING WHEN OUR PORTFOLIO FOR GCAP TO INVEST IN NEW COMPANIES ARE INVESTING OR DIVESTING ASSETS / BUSINESSES OPPORTUNITIES KEY MONEY MULTIPLES AT GCAP LEVEL KEY METRIC FOR REINVESTMENT DECISION MAKING AT
Slide 17: Capital allocation philosophy (cont'd)
CAPITAL ALLOCATION PHILOSOPHY (CONT’D) We invest in the sectors/opportunities with potential to be GEL 0.5bln in equity value in the next 3-5 years’ time Larger companies are attractive for international strategic and financial buyers, which will increase the liquidity of our portfolio companies LAR
Slide 18: Our strategy is to invest in large opportunities
OUR STRATEGY IS TO INVEST IN LARGE OPPORTUNITIES GCAP invests in Georgia in large opportunities, which have a MONETISE potential to become GEL 0.5bln+ in equity value. GCAP develops and grows portfolio companies to equity value of GEL 0.5bln+ and realizes proceeds through exit, as investments mature
Slide 19: Outlook for our private portfolio in line with enhanced strategy
OUTLOOK FOR OUR PRIVATE PORTFOLIO IN LINE WITH ENHANCED STRATEGY Strategic Priority #1 Strategic Priority #2 LARGE PORTFOLIO INVESTMENT STAGE PORTFOLIO SMALL COMPANIES COMPANIES COMPANIES (“OTHER ASSETS”) Exit from one large investment Total identified investment of US$ Divestment over the next 2-3
Slide 20: Strategic priorities in 2021
STRATEGIC PRIORITIES IN 2021 PRIORITY #1: REALIZING VALUE OF ONE LARGE INVESTMENT We believe realizing value of one of our large investments will help to validate the value of our portfolio and to reduce discount to NAV Realizing value of Reduce NAV one large investment discount Therefore, we target
Slide 21: Sale of 80% of water utility business to FCC Aqualia
Progress on priority #1 SALE OF AN 80% EQUITY INTEREST IN THE WATER UTILITY BUSINESS TO FCC AQUALIA FOR US$ 180 MILLION THE TRANSACTION VALUES THE ENTIRE WATER UTILITY BUSINESS AT US$ 225 MILLION, DELIVERING ON OUR KEY A 30% PREMIUM TO ITS LATEST INDEPENDENT INVESTMENT VALUE, AT 30 JUNE 2021 STRATEG
Slide 22: Transaction rationale
Progress on priority #1 TRANSACTION RATIONALE THE DISPOSAL: Realises material cash proceeds Creates significant value for GCAP shareholders, translating into 2.7x MOIC in USD (3.6x MOIC in GEL) and 20% IRR in USD (27% IRR in GEL) Leads to a positive impact on the GCAP's leverage profile, reducing th
Slide 23: Transaction progress
Progress on priority #1 TRANSACTION PROGRESS GCAP OWNS THROUGH GCAP OWNS THROUGH GCAP to ensure the DIRECT OWNERSHIP DISPOSAL IS BEING IMPLEMENTED 100% STAKE IN GGU 35% STAKE IN GGU repayment of the Renewable Energy VIA A TWO-STAGED PROCESS portion in AUG-22 100% 100% THAT, AFTER COMPLETION, WILL 10
Slide 24: Key investment returns overview
Progress on priority #1 KEY INVESTMENT RETURNS OVERVIEW MOIC IRR REALISING THE VALUE OF THE WATER UTILITY BUSINESS AT AN ATTRACTIVE VALUATION 3.6x 27% 0.6x 2.7x 20% ➢ Unrealised MOIC (0.5x in US$ and 0.6x in GEL) 0.5x corresponds to the value of put option on a 20% equity interest in the water utili
Slide 25: Valuation development overview of the water utility business
Progress on priority #1 VALUATION DEVELOPMENT OVERVIEW OF THE WATER UTILITY BUSINESS ROBUST EQUITY VALUE +226% premium to the initial investment value DEVELOPMENT IN ADDITION TO 697 THE STRONG ANNUAL DIVIDEND INFLOWS FROM THE BUSINESS GEL MILLION 484 471 ➢ GEL 97.1 million dividends collected from 4
Slide 26: Operating performance development in the water utility business
Progress on priority #1 OPERATING PERFORMANCE DEVELOPMENT OVERVIEW IN THE WATER UTILITY BUSINESS EBITDA MARGIN STRONG TOTAL REVENUE AND 44.8% 51.9% 53.9% 53.8% 55.9% 58.2% 56.6% 62.9% EBITDA GROWTH WITH A 7.4% AND 12.8% CAGR, RESPECTIVELY, 220 204 SINCE THE INITIAL ACQUISITION 200 OF THE WATER UTILI
Slide 27: Strategic priorities in 2021 (cont'd)
STRATEGIC PRIORITIES IN 2021 (CONT’D) PRIORITY #2: DIVESTMENT OF “OTHER” PORTFOLIO Other portfolio includes small companies with limited potential to SUBJECT TO achieve GEL 0.5 billion equity value 360o ANALYSIS “OTHER” PORTFOLIO EXPECTED TO BE DIVESTED IN THE NEXT 2-3 YEARS 27
Slide 28: Sales of US$ 45.0 million commercial real estate properties
Progress on priority #2 SALES OF US$ 45.0 MILLION COMMERCIAL REAL ESTATE PROPERTIES SINCE JUNE 2021 TRANSACTION DETAILS - US$ 4.6 MILLION PREMIUM TO 31 MARCH 2021 BOOK VALUES CONTINUING PROGRESS TOWARDS Premium to gross value OUR STRATEGIC PRIORITIES +11.3% 45.0 US$ MILLION PROGRESS SINCE JUNE 2021
Slide 29: Renewable energy and education - key investment areas
RENEWABLE ENERGY AND EDUCATION - OUR KEY INVESTMENT AREAS IN THE MEDIUM TERM GRADUALLY MOVING TO TOTAL NET INVESTMENT OF c. US$ 50MLN IDENTIFIED REINVESTMENT PHASE, FROM GCAP OVER THE NEXT 3-5 YEARS1 GIVEN THE STRONG CASH FLOW GENERATION AT OUR INVESTMENT STAGE of which, was allocated in 2021 PORTFO
Slide 30: Investing in renewable energy
INVESTING IN RENEWABLE ENERGY INDUSTRY INVESTMENT RATIONALE TOTAL NET INVESTMENT OF c. US$ 36MLN IDENTIFIED FROM GCAP OVER THE NEXT 3 YEARS2 ▪ High margins, dollar linked cash flows ▪ Over the next 3 years we will be launching pipeline projects: wind farms in ▪ Growing market, with 35% of demand sat
Slide 31: Investing in education
INVESTING IN EDUCATION INDUSTRY INVESTMENT RATIONALE TOTAL NET INVESTMENT OF c. US$ 14MLN IDENTIFIED FROM GCAP OVER ▪ Asset light industry THE NEXT 5 YEARS BY 20253 ▪ High quality revenue with high margins ▪ Scaling up to capacity of 21,000 learners through expansion plans in existing schools and M&
Slide 32: Contents
CONTENTS 01 COVID-19 UPDATE | GEORGIA 02 GEORGIA CAPITAL AT A GLANCE 03 STRATEGY AND CAPITAL ALLOCATIONS 04 4Q21 & FY21 RESULTS OVERVIEW 05 PORTFOLIO OVERVIEW 06 FY21 GEORGIAN MACRO OVERVIEW 07 APPENDICES 32
Slide 33: NAV per share (GEL) development overview
NAV PER SHARE (GEL) DEVELOPMENT OVERVIEW NAV PER SHARE UP 2.1x SINCE THE START OF THE COVID-19 PANDEMIC CONTROLLABLE (PRIVATE) NAV PER SHARE UP 2.7x SINCE THE START OF THE COVID-19 PANDEMIC % Change -35.6% +4.9% +27.2% -2.7% +16.4% + 9.7% % Change -25.0% -0.5% +69.3% +22.1% -1.6% +15.8% + 8.7% +19.5
Slide 34: Progress on the current share buyback and cancellation programme
PROGRESS ON THE CURRENT SHARE BUYBACK AND CANCELLATION PROGRAMME ATTRACTIVE OPPORTUNITY FOR DELIVERING GREATER RETURNS Average discount GCAP SHARE to NAV: 25% COVID-19 period PRICE IS AT CORE 360o ANALYSIS OF OUR DECISION 50% 58% 53% 58% MAKING VIS-À-VIS 45% 42% 42% INVESTMENTS 34% 26% 26% 22% IN LI
Slide 35: NAV per share (GEL) movement in 4Q21
NAV PER SHARE (GEL) MOVEMENT IN 4Q21 NAV PER SHARE CHANGE % +2.0% +6.1% -1.1% -0.8% +0.6% -0.3% -1.0% +5.5% NAV PER SHARE (GEL) UP 5.5% IN 4Q21 • NAV per share (GBP) up 6.6% in 4Q21 • 5.5% growth in 4Q21 NAV per share (GEL) mainly reflects GEL 117.3 million value creation across our resilient privat
Slide 36: NAV per share (GEL) movement in FY21
NAV PER SHARE (GEL) MOVEMENT IN FY21 NAV PER SHARE CHANGE % +7.4% +26.4% +0.1% +0.3% +0.9% -1.7% -2.5% +31.0% NAV PER SHARE (GEL) UP 31.0% IN FY21 • NAV per share (GBP) up 39.7% in FY21 • FY21 NAV per share (GEL) growth reflects GEL 592.3 million value creation across our private portfolio and a 36.
Slide 37: Aggregated revenue development across private portfolio
AGGREGATED REVENUE DEVELOPMENT ACROSS PRIVATE PORTFOLIO RECORD AGGREGATED +33.9% QUARTERLY REVENUE, +23.8% UP 18.6% Y-O-Y IN 1,964 4Q21 AND UP 29.8% +29.8% FROM 4Q19 338 +18.6% 1,587 1,467 75 GEL MILLION 283 ▪ FY21 aggregated revenue 541 220 68 up 23.8% y-o-y and up 456 99 27 417 33.9% from FY19 85
Slide 38: Aggregated EBITDA development across private portfolio
AGGREGATED EBITDA DEVELOPMENT ACROSS PRIVATE PORTFOLIO +38.5% AGGREGATED EBITDA +34.9% UP 8.2% Y-O-Y IN 4Q21 AND UP 8.5% FROM 385 4Q19 +8.5% 21 43 GEL MILLION +8.2% 278 286 3 26 ▪ FY21 aggregated EBITDA up 17 41 34.9% y-o-y and up 38.5% 87 from FY19 81 81 12 2 12 ▪ 4Q21 EBITDA reflects the 6 9 accou
Slide 39: 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) +58.3% -2.1% 31-Dec-19 183 +2.1x 373 365 +29.6% 31-Dec-20 392 -4.0% +38.5% 230 30-Sep-21 392
Slide 40: Operating performance: Healthcare Services
OPERATING PERFORMANCE DEVELOPMENT ACROSS PRIVATE LARGE PORTFOLIO COMPANIES REVENUE DEVELOPMENT EBITDA1 DEVELOPMENT +39.7% +43.3% +27.9% HEALTHCARE SERVICES 406 +54.5% KEY DRIVERS +48.2% +5.8% 291 283 ➢ The number of admissions up 90.1% and 96 GEL MILLION 72.9% y-o-y in 4Q21 at hospitals and +30.8% 7
Slide 41: Operating performance: Retail (Pharmacy)
OPERATING PERFORMANCE DEVELOPMENT ACROSS PRIVATE LARGE PORTFOLIO COMPANIES (CONT’D) REVENUE DEVELOPMENT EBITDA1 DEVELOPMENT +27.3% +15.2% RETAIL (PHARMACY) 782 +16.7% KEY DRIVERS 679 615 +8.3% +25.2% Robust performance of the Retail GEL MILLION ➢ (Pharmacy), reflecting overall +7.6% +17.1% 76 improv
Slide 42: Operating performance: Water Utility
OPERATING PERFORMANCE DEVELOPMENT ACROSS PRIVATE LARGE PORTFOLIO COMPANIES (CONT’D) REVENUE DEVELOPMENT EBITDA DEVELOPMENT +24.6% +34.7% +56.0% 204 2.0x 20 WATER UTILITY 163 +16.5% 20 128 131 +62.1% KEY DRIVERS 6 ➢ Water supply revenue up 47.5% y-o-y 95 GEL MILLION +15.1% in 4Q21 and up 47.1% y-o-y
Slide 43: Operating performance: Insurance
OPERATING PERFORMANCE DEVELOPMENT ACROSS PRIVATE LARGE PORTFOLIO COMPANIES (CONT’D) GROSS PREMIUMS WRITTEN NET INCOME DEVELOPMENT +10.1% +14.2% -3.0% INSURANCE 183 201 176 -5.9% 71 KEY DRIVERS +15.9% 81 69 22.7 23.4 +5.6% 22.0 GEL MILLION ➢ Net premiums earned up 14.7% y-o-y in 4.4 6.4 3.8 4Q21, ref
Slide 44: Operating performance: Renewable Energy
OPERATING PERFORMANCE DEVELOPMENT ACROSS PRIVATE INVESTMENT STAGE PORTFOLIO COMPANIES REVENUE DEVELOPMENT EBITDA DEVELOPMENT +3.1% +3.7% 44 43 1 RENEWABLE ENERGY 4 33 12 32 10 KEY DRIVERS ➢ Electricity generation levels up 38.4% and 16.0% y-o-y in 4Q21 and FY21, GEL MILLION +29.8% respectively, refl
Slide 45: Operating performance: Education
OPERATING PERFORMANCE DEVELOPMENT ACROSS PRIVATE INVESTMENT STAGE PORTFOLIO COMPANIES (CONT’D) REVENUE DEVELOPMENT EBITDA DEVELOPMENT +20.9% EDUCATION +21.1% 31 KEY DRIVERS GEL MILLION ➢ Revenue increase was attributable to a 26 +16.8% 10 12.6% y-o-y growth in average tuition +33.6% revenue per lear
Slide 46: Georgia Capital leverage & liquidity profile
GEORGIA CAPITAL LEVERAGE & LIQUIDITY PROFILE LTV RATIO1 IS BELOW THE TARGETED THRESHOLD OF <30%. 44.1% 41.9% Pre-COVID average: 22% ➢ LTV RATIO IS DOWN TO 19.2% ASSUMING FULL COMPLETION2 OF THE WATER UTILITY SALE AS 33.5% OF 31 DECEMBER 21 30% 31.2% 25.8% 28.9% 27.9% ➢ UPGRADE OF THE CREDIT RATING T
Slide 47: Dividend income outlook
DIVIDEND INCOME OUTLOOK STRONG DIVIDEND INCOME IN 2021 DIVIDENDS 4Q21 FY21 74.4 RECEIVED ➢ GEL 74.4 million cash dividends collected (GEL million) from the portfolio companies in FY21, up 2.5x BOG 14.5 14.5 y-o-y, and surpassing pre-pandemic 2019 cash dividends of GEL 72.9 million GHG - 25.0 GEL MIL
Slide 48: Contents
CONTENTS 01 COVID-19 UPDATE | GEORGIA 02 GEORGIA CAPITAL AT A GLANCE 03 STRATEGY AND CAPITAL ALLOCATIONS 04 4Q21 & FY21 RESULTS OVERVIEW 05 PORTFOLIO OVERVIEW 06 FY21 GEORGIAN MACRO OVERVIEW 07 APPENDICES 48
Slide 49: Portfolio value development in 4Q21
PORTFOLIO VALUE DEVELOPMENT IN 4Q21 PORTFOLIO VALUE UP 4.2% TO GEL 3.62 BILLION IN 4Q21 RETAIL (PHARMACY), WATER UTILITY AND BOG WERE THE LARGEST CONTRIBUTORS TO THE TOTAL % SHARE OF LISTED ASSETS PORTFOLIO VALUE GROWTH IN 4Q21 18.5% 18.8% -24% (36) -14% 63% (21) 93 -11% TOTAL PORTFOLIO GEL MILLION
Slide 50: Portfolio value development in FY21
PORTFOLIO VALUE DEVELOPMENT IN FY21 PORTFOLIO VALUE UP 24.4% TO GEL 3.62 BILLION IN FY21 98% FROM TOTAL PORTFOLIO VALUE GROWTH IN FY21 WAS ATTRIBUTABLE TO WATER UTILITY, HEALTHCARE % SHARE OF LISTED ASSETS SERVICES, RETAIL (PHARMACY) AND BOG 18.3% 18.8% 1% -5% 1% 5% 5 (37) 9 37 32% 226 GEL MILLION 2
Slide 51: Portfolio value as of 31-Dec-21
PORTFOLIO VALUE AS OF 31-DEC-21 % SHARE IN TOTAL PORTFOLIO VALUE: 19% 20% 19% 20% 7% 5% 4% 6% 85% OF OUR PORTFOLIO IS MULTIPLE: BGEO 10.3X 8.9X 9.3X 12.0X – 15.0X 11.1X 12.5X VALUED EXTERNALLY1 PRICE ON LSE GBP 16.68 LTM EV/EBITDA2 LTM EV/EBITDA3 LTM EV/EBITDA2 LTM P/E4 EV/EBITDA5 LTM EV/EBITDA 732
Slide 52: Bank of Georgia overview
Listed portfolio BANK OF GEORGIA 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 depos
Slide 53: Bank of Georgia overview
Listed portfolio BANK OF GEORGIA OVERVIEW http://bankofgeorgiagroup.com/ Stock price performance Financial metrics (GEL million) 40.00 Change 2015 2016 2017 2018 2019 2020 2021 35.00 y-o-y GBP 16.68 30.00 as of 31-Dec-21 NIM 7.7% 7.4% 7.3% 6.5% 5.6% 4.6% 4.9% +0.3ppts 25.00 20.00 NPL coverage 83.4%
Slide 54: Georgian healthcare market overview
Private large portfolio companies EXTERNALLY VALUED GEORGIAN HEALTHCARE MARKET OVERVIEW STATE HEALTHCARE BUDGET IS INCREASING FOR THE LAST SEVERAL YEARS State healthcare spending dynamics 13% ▪ The country’s expenditure on healthcare – c. 9% of GDP; 11% 10% 10% 9% 9% 800 ▪ c. 40% of the total health
Slide 55: GHG at a glance
Private large portfolio companies EXTERNALLY VALUED GHG AT A GLANCE A well diversified business model with cost and synergy advantages Georgia Healthcare Group – The only fully integrated healthcare provider in the region Extensive geographic coverage - diversified healthcare services and pharmacy w
Slide 56: GHG's track record of delivering strong results
Private large portfolio companies EXTERNALLY VALUED GHG’S TRACK RECORD OF DELIVERING STRONG RESULTS REVENUE, GROSS (GEL MILLION) EBITDA1 (GEL MILLION) OPERATING CASH FLOW1 (GEL MILLION) EBITDA to cash conversion ratio1: 1,216.3 975.4 81% 54% 54% 75% 84% 112% 92% 68% 148% 920.3 849.9 747.8 +18.5% 426
Slide 57: Healthcare Services business overview
Private large portfolio companies EXTERNALLY VALUED HEALTHCARE SERVICES BUSINESS OVERVIEW The largest healthcare service provider in Georgia: c. 20% market share by number of MAJOR GROWTH DRIVERS referral hospitals and community clinics beds – 2,949 Market share by number of beds1 Referral hospitals
Slide 58: Healthcare Services business overview (cont'd)
Private large portfolio companies EXTERNALLY VALUED HEALTHCARE SERVICES BUSINESS OVERVIEW (CONT’D) HOSPITALS CLINICS Bed occupancy rate 17 19 15 Average 4.9 5.2 5.5 5.4 5.2 5.6 5.7 6.4 5.7 Number of referral hospitals length of stay Number of community clinics Number of polyclinics +9.5ppts 69.6% 2,
Slide 59: Healthcare Services business valuation overview
Externally valued1 HEALTHCARE SERVICES BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q21 (GEL MILLION) IMPLIED LTM EV/EBITDA 2 Change q-o-q -0.4% -7.6% +18.9% +1.1% DEVELOPMENT (incl. IFRS 16) 10.5x 10.3x 30-Sep-21 31-Dec-21 VALUATION HIGHLIGHTS GEL million, unless noted otherwise 31-Dec
Slide 60: Retail (Pharmacy) business overview
Private large portfolio companies EXTERNALLY VALUED RETAIL (PHARMACY) BUSINESS OVERVIEW Country’s largest retailer in terms of both, revenue and number of bills issued BUSINESSES MAJOR GROWTH DRIVERS Market share by revenue, 20191 › Expending retail footprint GHG in pharma 615 35% › Enhancing retail
Slide 61: 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 Margin enhancement and strong Gross profit margin (%) Number of bills issued, million growth in para-pharmacy sales 24.5% 25.5% 25.5% 25.4% 26.0% 24.2%
Slide 62: Retail (Pharmacy) business valuation overview
Externally valued1 RETAIL (PHARMACY) BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q21 IMPLIED LTM EV/EBITDA (GEL MILLION) DEVELOPMENT Change q-o-q -12.2% -24.7% +15.0% (incl. IFRS 16) +3.9% 9.2x 9.3x 30-Sep-21 31-Dec-21 VALUATION HIGHLIGHTS GEL million, unless noted otherwise 31-Dec-21
Slide 63: Medical Insurance business overview
Private large portfolio companies EXTERNALLY VALUED MEDICAL INSURANCE BUSINESS OVERVIEW Largest medical insurer in the country with 23%1 market share Offering a variety of medical insurance products, with a wide distribution network to the Georgian population BUSINESSES MAJOR GROWTH DRIVERS Market s
Slide 64: Medical Insurance business overview (cont'd)
Private large portfolio companies EXTERNALLY VALUED MEDICAL INSURANCE BUSINESS OVERVIEW (CONT’D) NUMBER OF INSURED & RENEWAL RATE REVENUE (NET INSURANCE PREMIUMS EARNED) Retention rate within the Group1 (%) 19.2% 23.3% 34.7% 39.4% 37.4% 37.3% 36.3% 35.5% 38.8% 75.1% 76.9% 77.5% 78.0% 76.5% 77.1% +4.
Slide 65: Medical Insurance business valuation overview
Externally valued1 MEDICAL INSURANCE BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q21 IMPLIED LTM P/E MULTIPLE (GEL MILLION) DEVELOPMENT Change q-o-q -23.9% +1.5% -16.2% 15.0x 12.3x 30-Sep-21 31-Dec-21 VALUATION HIGHLIGHTS GEL million, unless noted otherwise 31-Dec-21 30-Sep-21 Change 3
Slide 66: P&C Insurance business overview
Private large portfolio companies EXTERNALLY VALUED P&C INSURANCE BUSINESS OVERVIEW MARKET SHARE 9M21 (GROSS PREMIUMS MARKET & ALDAGI GROSS PREMIUMS WRITTEN1 WRITTEN) (GEL MILLION) INVESTMENT RATIONALE • Significantly underpenetrated insurance market in Georgia 400 370 380 343 (0.8% penetration in p
Slide 67: P&C Insurance business overview
Private large portfolio companies EXTERNALLY VALUED P&C INSURANCE BUSINESS OVERVIEW COMBINED RATIO Financial Highlights 4Q21 FY21 -0.7ppts -0.4ppts Earned premiums gross GEL 32.8m GEL 122.8m 82.1% 81.5% 77.5% 80.8% 79.9% 79.5% 73.9% 72.6% 75.2% 75.4% Change (y-o-y) +21.1% +20.1% Cash flow from opera
Slide 68: P&C Insurance business valuation overview
Externally valued1 P&C INSURANCE BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q21 IMPLIED LTM P/E (GEL MILLION) MULTIPLE DEVELOPMENT Change q-o-q -1.4x -2.3% 12.0x 12.0x 30-Sep-21 31-Dec-21 VALUATION HIGHLIGHTS GEL million, unless noted otherwise 31-Dec-21 30-Sep-21 Change 31-Dec-20 Cha
Slide 69: Water Utility business overview
Private large portfolio companies EXTERNALLY VALUED WATER UTILITY BUSINESS OVERVIEW INVESTMENT RATIONALE REGULATORY ENIVORNMENT ▪ Regulated monopoly in Tbilisi and surrounding districts with high entry barriers. ▪ Stable regulatory environment with attractive return on investment. TARIFF DERIVATION
Slide 70: Water Utility business overview (cont'd)
Private large portfolio companies EXTERNALLY VALUED WATER UTILITY BUSINESS OVERVIEW (CONT’D) OPERATING HIGHLIGHTS REVENUE HIGHLIGHTS EBITDA Total 123 119 127 135 149 163 131 204 32 52 Energy 4Q21 FY21 Electricity sales (KWh million) 40.6 147.3 20 GEL million GEL million Change (y-o-y) +4.6x +2.8x 20
Slide 71: Water Utility business valuation overview
Externally valued1 WATER UTILITY BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q21 (GEL MILLION) IMPLIED LTM EV/EBITDA Change q-o-q +6.9% -1.0% +12.5% MULTIPLE DEVELOPMENT 9.0x 8.9x 30-Sep-21 31-Dec-21 VALUATION HIGHLIGHTS GEL million, unless noted otherwise 31-Dec-21 30-Sep-21 Change 31
Slide 72: Renewable Energy business overview
Private investment stage portfolio companies INTERNALY VALUED RENEWABLE ENERGY BUSINESS OVERVIEW INVESTMENT RATIONALE MARKET OPPORTUNITY ▪ Growth in electricity consumption has been 6.5x more in TWhs than growth in electricity supply during last 10 years. ELECTRICITY SUPPLY AND CONSUMPTION (TWH) ▪ U
Slide 73: Renewable Energy business overview (cont'd)
Private investment stage portfolio companies INTERNALY VALUED RENEWABLE ENERGY BUSINESS OVERVIEW (CONT’D) PERFORMANCE HIGHLIGHTS RENEWABLE ENERGY PROJECTS OVERVIEW | 31 DECEMBER 2021 Generation (GWh) Actual/ Gross Generation 9.0 8.4 Commissioned Installed Target capacity PPA PPA tariff, share during
Slide 74: Renewable Energy business valuation overview
Internally valued RENEWABLE ENERGY BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q21 EQUITY FAIR VALUE COMPOSITION (GEL MILLION) AT 31-DEC-21 Change q-o-q -12.3% -8.7% -17.1% (GEL MILLION) 43 Total value 173 130 Operational assets Pipeline projects VALUATION HIGHLIGHTS GEL million, unles
Slide 75: Education business overview
Private investment stage portfolio companies INTERNALLY VALUED EDUCATION BUSINES OVERVIEW INDUSTRY INVESTMENT RATIONALE STRONG PLATFORM TO FACILITATE GROWTH AND SCALE TO BECOME THE LEADING EDUCATION PLAYER WITH c. 21,000 LEARNERS BY 2025 ▪ Highly fragmented general education TARGETING FOR 2025… …THR
Slide 76: Education business overview (cont'd)
Private investment stage portfolio companies INTERNALLY VALUED EDUCATION BUSINESS OVERVIEW (CONT’D) Operating highlights FY21 PRIVATE K-12 MARKET IN GEORGIA Capacity utilization 62.2%2 Market growing at 1.6x nominal GDP growth rate Change (y-o-y) -27.3 ppts Private K-12 learners in Georgia Private K
Slide 77: Education business valuation overview
Internally valued EDUCATION BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 4Q21 LTM EV/EBITDA DEVELOPMENT (GEL MILLION) Change q-o-q +0.6% +3.1% -5.2% 0.0% +1.9% 12.5x 12.5x 2 30-Sep-21 31-Dec-21 VALUATION HIGHLIGHTS GEL million, unless noted otherwise 31-Dec-21 30-Sep-21 Change 31-Dec-20
Slide 78: Contents
CONTENTS 01 COVID-19 UPDATE | GEORGIA 02 GEORGIA CAPITAL AT A GLANCE 03 STRATEGY AND CAPITAL ALLOCATIONS 04 4Q21 & FY21 RESULTS OVERVIEW 05 PORTFOLIO OVERVIEW 06 FY21 GEORGIAN MACRO OVERVIEW 07 APPENDICES 78
Slide 79: Sovereign ratings with favourable macro fundamentals
SOVEREIGN RATINGS WITH FAVOURABLE MACRO FUNDAMENTALS Key Ratings Highlights General Facts Rating Agency Rating Outlook Affirmed Ba2 Stable September 2021 BB Negative February 2021 Georgia BB Stable August 2021 Georgia is favorably placed among peers Fitch Rating Country Country Rating Outlook Armeni
Slide 80: Georgia's key economic drivers
GEORGIA’S KEY ECONOMIC DRIVERS Top performer globally in WB Doing Business over the past 12 years 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 clause activ
Slide 81: Institutional oriented reforms
INSTITUTIONAL ORIENTED REFORMS Ease of Doing Business | 2020 (WB Doing Business Report) Economic Freedom Index | 2021 (Heritage Foundation) New Zealand 1 Singapore 2 Ireland 5 US 6 UK 7 Georgia 7 Georgia 12 Norway 9 Lithuania 11 Lithuania 15 Estonia 18 Czech Republic 27 Kazakhstan 25 Russia 28 Germa
Slide 82: Pace of economic recovery is higher than expected
PACE OF ECONOMIC RECOVERY IS HIGHER THAN EXPECTED Gross domestic product Nominal GDP structure, 9M21 According to preliminary estimates, real GDP grew by 11% y-o-y in 9M21, including a 28.9% growth in 2Q21 Information and Other Accommodation and food communication 8% Industry Nominal GDP, GEL mn Rea
Slide 83: Service sector major driver of 2021 rebound
SERVICE SECTOR MAJOR DRIVER OF 2021 REBOUND THE SERVICE SECTOR CONTINUED TO DRIVE THE REBOUND AFTER CONTRIBUTIONS TO REAL GDP GROWTH CONTRIBUTING MORE THAN 25 PP IN 2Q21 GROWTH 40% 9M21 vs 9M19 9M21 vs 9M20 Agriculture Industry Services Real GDP Growth 1.9% Wholesale and retail trade 2.8% 30% 1.1% F
Slide 84: Employment dynamics catching up with recovery in wages
EMPLOYMENT DYNAMICS CATCHING UP WITH RECOVERY IN WAGES Unemployment rate down to 19.5% in 3Q21 UNDP Human Development Index Sources: GeoStat Sources: UNDP 0.78 0.79 0.81 1450 27.2 27.2 30 0.9 26.7 0.74 0.75 0.76 0.77 0.77 0.78 26.4 0.8 0.71 0.72 0.73 0.73 0.73 0.74 23.0 21.9 21.7 21.6 21.9 22.1 25 0
Slide 85: Inflation to decelerate from the 2nd half of 2022
INFLATION TO DECELERATE FROM THE 2ND HALF OF 2022 Inflation Y-o-Y vs. inflation target Inflation components Sources: NBG, GeoStat Source: GeoStat Inflation reached 13.9% in December-January mostly on the back of supply side All major components contributed to increasing inflation in the past few mon
Slide 86: Current account balance adjusting after record lows
CURRENT ACCOUNT BALANCE ADJUSTING AFTER RECORD LOWS Current account balance (% of nominal GDP) Exports and Re-exports, US$ billion Sources: NBG Source: NBG 30% The CAB was -9.7% of GDP in 9M21, with the goods trade deficit slightly widening 30% While service exports plummeted due to COVID-19, Georgi
Slide 87: Net external earnings down 3% y-o-y in 2021
NET EXTERNAL EARNINGS DOWN 3% Y-O-Y IN 2021, BUT UP 12% Y-O-Y IN 2H21 AS RECOVERY BEGINS External earnings (change compared to previous year, US$ million) External earnings (US$ million) Money transfers (Inflows) Money transfers (Outflows) Tourism revenues Exports Imports Net External Earnings 2900
Slide 88: Diversified foreign trade
DIVERSIFIED FOREIGN TRADE Exports and imports of goods, Y-o-Y % Foreign Demand, 2021 Source: Geostat Source:, Geostat 75% Imports, YoY % Exports, YoY % 75% 1% Crude materials, inedible, except fuels 2% 60% 60% 5% 0% Machinery and transport equipment 45% 45% 8% 24% Manufactured goods 30% 30% Beverage
Slide 89: Trade with all types of goods bouncing back fast
TRADE WITH ALL TYPES OF GOODS BOUNCING BACK FAST Export of goods, contribution to growth Import of goods, contribution to growth Source: NBG Source:, Geostat Exports of all types of goods increased in 4Q21, with exports of intermediate and consumer Similar to exports, imports of all types of goods i
Slide 90: Remittances keep pace while tourism revenues have begun recovery
REMITTANCES KEEP PACE WHILE TOURISM REVENUES HAVE BEGUN RECOVERY Tourism revenues to GDP International visitors (by country) Sources: NBG, Geostat Sources: GNTA Tourism revenues rebounded to 58% of 2019 level in December 2021, as recovery has begun Number of travelers from Saudi Arabia, Ukraine, Isr
Slide 91: Appropriate monetary policy stance ensuring macroeconomic stability
APPROPRIATE MONETARY POLICY STANCE ENSURING MACROECONOMIC STABILITY Monetary policy rate International Reserves Sources: NBG Sources: NBG NBG further increased the monetary policy rate to 10.5% in December, as inflation is International reserves grew by 9.2% y-o-y to reach a record high of US$ 4.2 b
Slide 92: Floating exchange rate - policy priority
FLOATING EXCHANGE RATE - POLICY PRIORITY Loans by currencies Dollarization ratios Sources: NBG Source: NBG Commercial bank lending has remained resilient throughout the year on the back of rebounding Both deposit and loan dollarization have fallen since May-June 2021, in parallel with GEL demand, wi
Slide 93: Revenues and expenditures on track to meet annual plan
REVENUES AND EXPENDITURES ON TRACK TO MEET ANNUAL PLAN TAX REVENUES INCREASED BY 22% Y-O-Y IN 2021, WITH VAT REVENUES TOTAL EXPENSES (CURRENT + CAPITAL) GREW BY 12.5% Y-O-Y IN 2021, GROWING BY 25% AND INCOME TAX REVENUES GROWING BY 13% WITH CAPITAL EXPENDITURES RISING BY 4.5% Y-O-Y Consolidated Budg
Slide 94: Debt and fiscal deficit on course for consolidation
DEBT AND FISCAL DEFICIT ON COURSE FOR CONSOLIDATION Public debt Breakdown of public debt Sources: MOF Public debt is expected to fall to 52% of GDP, with a consolidation Source: MOF, as of 30 September 2021 plan in place for the medium run External public debt to GDP, % Total public debt to GDP, % 6
Slide 95: Contents
CONTENTS 01 COVID-19 UPDATE | GEORGIA 02 GEORGIA CAPITAL AT A GLANCE 03 STRATEGY AND CAPITAL ALLOCATIONS 04 4Q21 & FY21 RESULTS OVERVIEW 05 PORTFOLIO OVERVIEW 06 FY21 GEORGIAN MACRO OVERVIEW 07 APPENDICES ➢ Georgia Capital results discussion ➢ Georgia Capital financial statements ➢ Overview of GCAP’
Slide 96: Private portfolio companies' debt maturity profile
PRIVATE PORTFOLIO COMPANIES’ DEBT MATURITY PROFILE GROSS DEBT MATURITY AS OF 31 DECEMBER 2021 (GEL MILLION) 2022 2023 2024 2025+ Total Large portfolio companies 210.0 39.4 76.6 498.7 824.7 Healthcare Services 199.0 32.3 76.3 17.1 324.7 Retail (Pharmacy) 9.4 6.8 - - 16.2 Water Utility1 0.1 0.3 0.3 48
Slide 97: Multiple of invested capital (MOIC) | 31-Dec-2021
MULTIPLE OF INVESTED CAPITAL (MOIC) | 31-DEC-2021 Gross GEL million Sell down Dividends Fair Value MOIC Realized MOIC Investment (1) (2) (3) (4) (2+3+4) / (1) (2+3) / (1) Listed Investments 129 287 149 681 8.6x 3.4x Bank of Georgia Group PLC 129 287 149 681 8.6x 3.4x Private large portfolio companie
Slide 98: 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 99: Georgia Capital's highly experienced management team
Georgia Capital’s highly experienced management team Georgia Capital Management Irakli Gilauri, Chairman & CEO Giorgi Ketiladze, Director, Investments Georgia Capital Georgia Capital Irakli Gilauri formerly served as the CEO of BGEO Group from 2011 to May 2018. He joined as Formerly Investment Offic
Slide 100: Contents
CONTENTS 01 COVID-19 UPDATE | GEORGIA 02 GEORGIA CAPITAL AT A GLANCE 03 STRATEGY AND CAPITAL ALLOCATIONS 04 4Q21 & FY21 RESULTS OVERVIEW 05 PORTFOLIO OVERVIEW 06 FY21 GEORGIAN MACRO OVERVIEW 07 APPENDICES ➢ Georgia Capital results discussion ➢ Georgia Capital financial statements ➢ Overview of GCAP’
Slide 101: NAV statement | 4Q21
NAV STATEMENT | 4Q21 1.Value 2a. 3.Operating 4. Liquidity 2c. GEL thousands unless otherwise noted 30-Sep-21 2b. Buybacks Management/ FX / 31-Dec-21 Change % Creation Investments Dividends Expenses Other Listed Portfolio Companies BoG 641,640 54,027 - - (14,481) - - 681,186 6.2% Listed Portfolio Val
Slide 102: NAV statement | FY21
NAV STATEMENT | FY21 1.Value 2a. 3.Operating 4. Liquidity GEL thousands unless otherwise noted 31-Dec-20 2b. Buybacks 2c. Dividends 31-Dec-21 Change % Creation Investments Expenses Management/ FX / Other Listed Portfolio Companies BoG1 531,558 164,109 - - (14,481) - - 681,186 28.1% Listed Portfolio
Slide 103: Value creation in private portfolio | 4Q21
VALUE CREATION IN PRIVATE PORTFOLIO | 4Q21 Operating Greenfields / Multiple Change Portfolio Businesses Value Creation in 4Q21 Performance buy-outs / exits and FX 171.4 GEL thousands (1) (2) (3) (1)+(2)+(3) BoG 54,027 Total Listed Portfolio Companies 54,027 Large Portfolio Companies 52,292 114,323 1
Slide 104: Value creation in private portfolio | FY21
VALUE CREATION IN PRIVATE PORTFOLIO | FY21 Operating Greenfields / Multiple Change Portfolio Businesses Value Creation in FY21 Performance buy-outs / exits and FX 756.4 GEL thousands (1) (2) (3) (1)+(2)+(3) BoG 164,109 Total Listed Portfolio Companies 164,109 Large Portfolio Companies 606,405 114,32
Slide 105: Income statement | 4Q21 & FY21
INCOME STATEMENT | 4Q21 & FY21 Income statement GEL ‘000, unless otherwise noted 4Q21 4Q20 Change FY21 FY20 Change Dividend income 29,931 14,972 99.9% 74,362 29,870 NMF Interest income 6,255 4,307 45.2% 23,140 20,957 10.4% Realised / unrealised (loss)/ gain on liquid funds (2,110) 1,119 NMF (1,142)
Slide 106: Contents
CONTENTS 01 COVID-19 UPDATE | GEORGIA 02 GEORGIA CAPITAL AT A GLANCE 03 STRATEGY AND CAPITAL ALLOCATIONS 04 4Q21 & FY21 RESULTS OVERVIEW 05 PORTFOLIO OVERVIEW 06 FY21 GEORGIAN MACRO OVERVIEW 07 APPENDICES ➢ Georgia Capital results discussion ➢ Georgia Capital financial statements ➢ Overview of GCAP’
Slide 107: Number of shares outstanding development overview
NUMBER OF SHARES OUTSTANDING DEVELOPMENT OVERVIEW NUMBER OF SHARES OUTSTANDING IN JANUARY 2022, THE CURRENT US$ 10 MILLION 50.00 SHARE BUYBACK AND 45.77 45.98 46.28 46.58 46.58 46.46 46.22 45.99 45.87 45.75 45.37 CANCELLATION PROGRAMME 45.26 WAS INCREASED BY AN 45.00 3Q20: 7.7m ADDITIONAL US$ 5 MILL
Slide 108: Fast indicators show recovery sustaining pace
FAST INDICATORS SHOW RECOVERY SUSTAINING PACE Remittances, y/y Remittances, vs 2019 Exports, y/y Exports, vs 2019 Imports, y/y Imports, vs 2019 180% 180% 80% 80% 80% 80% 30% 120% 120% 40% 40% 40% 40% 60% 33% 60% 29% 0% 0% 7% 0% 0% 0% 0% 6% 15% -40% -40% -60% -60% -40% -40% -80% -80% Jan Jan Aug Sep
Slide 109: Direct exposure to Russia and Ukraine has decreased
DIRECT EXPOSURE TO RUSSIA AND UKRAINE HAS DECREASED COMPARED TO PREVIOUS CONFLICT 250,000 Russian Inflows' Share in Total (RHS) 30% Russia (15%) and Ukraine (7%) combined for 22% of total external inflows 26% FX Inflows From Russia (LHS, USD Thousand) 25% (remittances, merchandise exports and touris
Slide 110: Valuation peer group
VALUATION PEER GROUP HEALTHCARE RETAIL SERVICES MEDICAL (PHARMACY) INSURANCE • Med Life S.A. | Romania • NEUCA S.A. | Poland • Powszechny Zaklad Ubezpieczen SA | Poland • EMC Instytut Medyczny SA | Poland • Sopharma Trading AD | Bulgaria • European Reliance General Insurance Company S.A. | Greece •
Slide 111: Georgian healthcare market overview
GEORGIAN HEALTHCARE MARKET OVERVIEW Healthcare coverage of Georgia’s 3.7m population: ▪ UHC was introduced in February 2013 and replaced most of the previously existing state- 2015 funded medical insurance plans Overview ▪ The main goal is to provide basic healthcare coverage to the entire populatio
Slide 112: 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 113: Company information
COMPANY INFORMATION Georgia Capital PLC Registered Address 42 Brook Street 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: “CGEO.LN” Contact Information Georg