Georgia Capital PLC · LSE:CGEO
Georgia Capital — Q1 2025 Earnings Presentation
43 slides from Georgia Capital's earnings presentation, May 7, 2025
Slide 1: 1Q25 Results Call Presentation
1Q25 RESULTS CALL PRESENTATION 7 MAY 2025
Slide 2: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 2
Slide 3: Key Developments
1 NAV per share (GEL) increased 11.2% in 1Q25, driven by continued growth in Lion Finance Group’s (Bank of Georgia’s) share price and the robust operating performance of the private portfolio companies Outstanding quarterly results across our large private portfolio companies with 21.2% and 45.8% y-
Slide 4: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 NAV PER SHARE OVERVIEW AGGREGATED PORTFOLIO RESULTS OVERVIEW UPDATE ON DELEVERAGING NAV DISCOUNT DEVELOPMENT OVERVIEW 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX
Slide 5: Updated NAV Format
UPDATED NAV FORMAT Portfolio breakdown before the update Updated portfolio breakdown TO ENHANCE STAKEHOLDER Listed and observable portfolio companies Listed and observable portfolio companies 45% OF THE TOTAL VISIBILITY INTO GCAP’S PRIVATE • Lion Finance Group (19.3% holding) • Lion Finance Group (1
Slide 6: NAV per Share (GEL) Movement in 1Q25
NAV PER SHARE (GEL) MOVEMENT IN 1Q25 PRIVATE PORTFOLIO +2.7% NAV PER SHARE (GEL) UP +6.9% +4.3% -1.6% +2.7% -0.3% -0.7% +11.2% +8.7% +20.9% 11.2% Q-O-Q IN 1Q25 115.97 106.73 ▪ The increase in NAV per share (GEL) in 95.95 1Q25 reflects continued growth in Lion Finance Group’s share price and the robu
Slide 7: Strong NAV per Share Growth
STRONG NAV PER SHARE GROWTH STRONG NAV PER SHARE (GEL) GROWTH NAV PER SHARE (GEL) DEVELOPMENT OVERVIEW WITH 15.1% CAGR SINCE DEC-18. IN US$ AND GBP TERMS, NAV PER SHARE CAGR STANDS +15.1% CAGR AT 14.5% AND 14.1%, RESPECTIVELY 5-YEAR NAV PER SHARE CAGR STANDS AT 28.7%, 33.2% AND 32.1% IN GEL, US$ AND
Slide 8: 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 13.2 MILLION SHARES (US$ 164 share count at the time of the demerger MILLION IN VALUE) REPURCHA
Slide 9: 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 251 MILLION HAS ALREADY BEEN ALLOCATED TO SHARE BUYBACKS IN MAY-24, GCAP ANNOUNCED ITS BOARD’S INTENTION TO MAKE AVAILABLE AT LEAST GEL 300 MILLION FOR SHARE REPURCHASED & CANCELLED BUYBAC
Slide 10: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 NAV PER SHARE OVERVIEW AGGREGATED PORTFOLIO RESULTS OVERVIEW UPDATE ON DELEVERAGING NAV DISCOUNT DEVELOPMENT OVERVIEW 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX
Slide 11: Aggregated Revenue Development Across Private Portfolio
AGGREGATED REVENUE DEVELOPMENT ACROSS PRIVATE PORTFOLIO GEL MILLION AGGREGATED QUARTERLY REVENUE ACROSS OUR LARGE 2,086 PORTFOLIO COMPANIES UP 1,917 21.2% Y-O-Y IN 1Q25 AND UP 443 16.2% ON AN LTM BASIS 503 524 479 93 +16.2% 1,643 124 1,414 +21.2% 431 355 1Q24 1Q25 LTM 31-Mar-24 LTM 31-Mar-25 Emergin
Slide 12: Aggregated EBITDA Development Across Private Portfolio
AGGREGATED EBITDA DEVELOPMENT ACROSS PRIVATE PORTFOLIO GEL MILLION AGGREGATED EBITDA ACROSS OUR 294 LARGE PORTFOLIO COMPANIES UP 45.8% Y-O-Y IN 1Q25 AND UP 34.2% ON AN LTM BASIS 81 227 69 78 63 213 20 +34.2% 159 24 +45.8% 57 39 1Q24 1Q25 LTM 31-Mar-24 LTM 31-Mar-25 Emerging and other portfolio compa
Slide 13: Aggregated Cash Balance & Net Operating Cash Flow
AGGREGATED CASH BALANCE & NET OPERATING CASH FLOW DEVELOPMENT ACROSS PRIVATE PORTFOLIO TOTAL AGGREGATED NET OPERATING CASH FLOW TOTAL AGGREGATED CASH BALANCE OF PRIVATE BUSINESSES (GEL MILLION) (GEL MILLION) 320 307 281 83 85 249 78 99 126 237 +16.8% 7 203 68 +87.6% 222 45 25 +58.0% 118 150 11 +25.2
Slide 14: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 NAV PER SHARE OVERVIEW AGGREGATED PORTFOLIO RESULTS OVERVIEW UPDATE ON DELEVERAGING NAV DISCOUNT DEVELOPMENT OVERVIEW 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX
Slide 15: Net Capital Commitment (NCC) Overview
NET CAPITAL COMMITMENT (NCC) OVERVIEW Change Change 31-Mar-25 US$ Million 31-Mar-24 31-Dec-24 (y-o-y) (q-o-q) NCC RATIO INCREASED BY 0.7 Cash and liquid funds 25.7 NMF 99.1 -41.0% 58.5 PPTS Q-O-Q AS OF 31-MAR-25 Loans issued 3.5 NMF - NMF - Gross debt (150.7) 0.1% (154.1) -2.1% (150.9) Net debt (1)
Slide 16: NCC Ratio Development Overview
NCC RATIO DEVELOPMENT OVERVIEW NCC AND NCC RATIO DEVELOPMENT OVERVIEW1 NCC REPRESENTS AN AGGREGATED ✓ SIGNIFICANT DELEVERAGING PROGRESS, WELL AHEAD OF OUR ORIGINAL NCC RATIO TARGET OF 15% BEFORE DECEMBER 2025 VIEW OF ALL CONFIRMED, AGREED AND EXPECTED CAPITAL OUTFLOWS 385.8 AT THE GCAP HOLDCO LEVEL
Slide 17: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 NAV PER SHARE OVERVIEW AGGREGATED PORTFOLIO RESULTS OVERVIEW UPDATE ON DELEVERAGING NAV DISCOUNT DEVELOPMENT OVERVIEW 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX
Slide 18: NAV per Share Discount Development Overview
NAV PER SHARE DISCOUNT DEVELOPMENT OVERVIEW DESPITE STRONG RECENT TRADING PERFORMANCE, THE DISCOUNT TO NAV PER SHARE REMAINS WIDE, PRESENTING AN ATTRACTIVE BUYBACK OPPORTUNITY +15.0% CAGR 66.6% 63.7% 63.3% 62.4% 60.2% 59.0% 59.2% 57.6% 58.0% 57.8% 55.7% 55.8% 52.8% 50.0% 51.2% 49.9% 48.4% 47.0% 44.7
Slide 19: NAV per Share Decomposition as at 6 May 2025
NAV PER SHARE DECOMPOSITION AS AT 6 MAY 20251 THE CURRENT SHARE PRICE LARGELY REFLECTS OUR LISTED AND OBSERVABLE PORTFOLIO, WHILE THE VALUE OF OUR PRIVATE ASSETS REMAINS MOSTLY OVERLOOKED VALUE PER SHARE AS AT 6 MAY 2025 (GBP MILLION) VALUE (GBP) Discount: 47.0% Listed and observable portfolio 591 1
Slide 20: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 20
Slide 21: Georgia's Economy on an Upward Trajectory
GEORGIA’S ECONOMY IS ON AN UPWARD TRAJECTORY, WITH NOMINAL GDP PROJECTED TO EXCEED GEL 100 BILLION IN 2025 NOMINAL GDP IS EXPECTED TO EXCEED GEL 100 BILLION IN 2025 GEORGIA’S ECONOMY CONTINUED TO EXPAND IN 2025, WITH PRELIMINARY ECONOMIC 9,571 GROWTH AT 9.3% Y-O-Y IN 1Q25 10,000 Nominal GDP, USD bn,
Slide 22: Stronger-than-Expected Economic Growth Supported by Domestic Activity
STRONGER-THAN-EXPECTED ECONOMIC GROWTH IS SUPPORTED BY ROBUST DOMESTIC ACTIVITY AND EXTERNAL INFLOWS LOANS GROWTH DECOMPOSITION BY PURPOSE (ON A CONSTANT CURRENCY BASIS) GENERAL GOVERNMENT FISCAL EXPENSES AND FISCAL DEFICIT (IMF MODIFIED) Consumer Loans Mortgage Current Expenditures Capital Expendit
Slide 23: Price Pressures Re-emerged, Inflation Above 3% Target
PRICE PRESSURES HAVE RE-EMERGED, PUSHING INFLATION ABOVE 3% TARGET FOR THE FIRST TIME SINCE MARCH 2023 INFLATION REACHED 3.5% Y-O-Y, EXCEEDING THE TARGET FOR THE FIRST TIME SINCE MIXED INFLATION HAS BEEN PICKING UP THE MOST AMONG THE INFLATION MARCH 2023 COMPONENTS Headline Inflation Target End of P
Slide 24: Strong Growth Drives Deleveraging and Resilience
STRONG GROWTH IN RECENT YEARS DRIVES SIGNIFICANT DELEVERAGING, BOOSTING RESILIENCE AND UNLOCKING INVESTMENT POTENTIAL GOVERNMENT DEBT AS A PERCENT OF GDP AT ITS LOWEST SINCE 2014, ON THE BACK OF INTERNATIONAL INVESTMENT POSITION (% OF GDP) IMPROVED SIGNIFICANTLY, STRONG ECONOMIC GROWTH AND EXCHANGE
Slide 25: Macroeconomic Wrap-up
STRONG GDP GROWTH – PROJECTED NOMINAL GDP TO SURPASS GEL 100 BILLION IN 2025 INFLATION HAS EXCEEDED THE TARGET FOR THE FIRST TIME IN TWO YEARS NBG RE-ENTERED THE FX MARKET WITH A US$ 102 MILLION MACROECONOMIC PURCHASE IN MARCH WRAP-UP SIGNIFICANT DELEVERAGING, BOOSTING RESILIENCE AND UNLOCKING INVES
Slide 26: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 26
Slide 27: Portfolio Value as of 31-Mar-25
PORTFOLIO VALUE AS OF 31-MAR-25 % SHARE IN TOTAL PORTFOLIO VALUE: 78% OF OUR PORTFOLIO 96% IS OF OUR PORTFOLIO 41% GBP 54.6 5% OPTION 19% MULTIPLE: 11% 9.8x 11% 10.3x 14% ISVALUED VALUED EXTERNALLY EXTERNALLY1 1 PRICE ON LSE VALUATION2 8.2x LTM P/E4 LTM EV/EBITDA3 LTM EV/EBITDA3 1,669 14% 566 GEL MI
Slide 28: Portfolio Value Development in 1Q25
PORTFOLIO VALUE DEVELOPMENT IN 1Q25 PORTFOLIO VALUE UP BY 9.3% Q-O-Q TO GEL 4.1 BILLION IN 1Q25 248 - 129 4,111 (28) 3,761 PRIVATE PORTFOLIO VALUE CREATION IN 1Q25 PRIVATE PORTFOLIO VALUE CREATION GEL MILLION GEL million LISTED AND OBSERVABLE PORTFOLIO PRIVATE PORTFOLIO VALUE Retail (pharmacy) 66.3
Slide 29: Retail (Pharmacy) Business Operating Performance Overview
RETAIL (PHARMACY) BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT EBITDA1 DEVELOPMENT +10.8% GEL MILLION 226 204 RETAIL (PHARMACY) KEY DRIVERS ▪ The 2.8% same-store revenue growth, strong +55.6% ramp-up of the pharmacy stores launched in late 2023, and increased demand for seasonal medic
Slide 30: Retail (Pharmacy) Business Valuation Overview
Externally valued1 RETAIL (PHARMACY) BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 1Q25 IMPLIED LTM EV/EBITDA DEVELOPMENT (GEL MILLION) Change q-o-q +4.5% -7.0% 0.0% +9.3% 9.7x 1,021 46 1,067 8.4x 8.2x 783 (277) (7) Enterprise value Net change Enterprise value Net debt inc. Minority Equit
Slide 31: Insurance Business Operating Performance Overview
INSURANCE BUSINESS OPERATING PERFORMANCE OVERVIEW INSURANCE REVENUE PRE-TAX PROFIT DEVELOPMENT GEL MILLION +63.1% 90 INSURANCE KEY DRIVERS +13.6% P&C Insurance 55 ▪ The increase in the P&C insurance revenue is +2.2x 9 mainly driven by the growth in the motor and 23 52 8 credit life insurance lines.
Slide 32: Insurance Business Valuation Overview
Externally valued1 INSURANCE BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 1Q25 IMPLIED LTM P/E MULTIPLE (GEL MILLION) DEVELOPMENT3 Change q-o-q +3.1% 428 19 1 441 9.7x 9.8x (7) Equity value Operating Multiple Multiple change change, FX Dividends Equity value 31-Dec-24 31-Mar-25 31-Dec-24
Slide 33: Healthcare Services Business Operating Performance Overview
HEALTHCARE SERVICES BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT1 EBITDA2 DEVELOPMENT GEL MILLION +19.2% HEALTHCARE SERVICES 115 97 23 KEY DRIVERS 18 +46.8% ▪ A 19.2% y-o-y total revenue growth reflects: o increased demand for high revenue-generating 23 outpatient services at our larg
Slide 34: Healthcare Business Valuation Overview
Externally valued1 HEALTHCARE BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 1Q25 (GEL MILLION) IMPLIED LTM EV/EBITDA DEVELOPMENT Change q-o-q +8.5% +4.8% +2.0% +12.0% 12.9x 66 845 779 10.5x 10.3x 463 (349) (33) Enterprise value Net change Enterprise value Net debt inc. Minority Equity val
Slide 35: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 35
Slide 36: Liquidity Outlook
LIQUIDITY OUTLOOK LIQUIDITY DEVELOPMENT OVERVIEW (US$ MILLION) GROSS DEBT (US$ million) LIQUIDITY DOWN BY 41.0% IN 1Q25, MAINLY 300 300 365 365 300 150 150 150 REFLECTING SHARE BUYBACKS DURING THE QUARTER Cash receipt from the water Cancellation of US$ 65 utility business sale million GCAP Eurobond
Slide 37: Dividend Income Outlook
DIVIDEND INCOME OUTLOOK RECURRING CASH DIVIDEND INCOME FROM PORTFOLIO COMPANIES Dividend income 1.6 2.1 4.1 4.3 +11.6% 4.82 GEL 8.0 MILLION RECURRING DIVIDEND INCOME IN 1Q25 per share (GEL) DIVIDEND INCOME (GEL million) Insurance business 7.0 1 180 179 1 180+ of which, P&C insurance 5.8 GEL MILLION
Slide 38: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 38
Slide 39: Solid Performance Across Our Portfolio
SOLID PERFORMANCE ACROSS OUR PORTFOLIO PERFORMANCE HIGHLIGHTS NAV per share (GEL) increased 11.2% in 1Q25, driven by continued growth in Lion Finance Group’s share price and the robust operating ✓ performance of the private portfolio companies Outstanding quarterly results across our large private p
Slide 40: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 1Q25 02 MACROECONOMIC UPDATE | GEORGIA 03 1Q25 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 04 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 05 WRAP-UP 06 ANNEX 40
Slide 41: Valuation Peer Group
VALUATION PEER GROUP RETAIL P&C MEDICAL HEALTHCARE (PHARMACY) INSURANCE INSURANCE SERVICES • NEUCA S.A. | Poland • Powszechny Zaklad Ubezpieczen SA | • Medicover AB | Sweden • Dhipaya Insurance | Thailand Poland • EMC Instytut Medyczny SAEMC SA | • Sopharma Trading AD | Bulgaria • Zavarovalnica Trig
Slide 42: Private Portfolio Companies' Debt Maturity Profile
PRIVATE PORTFOLIO COMPANIES’ DEBT MATURITY PROFILE GROSS DEBT MATURITY AS OF 31 MARCH 2025 2025 2026 2027 2028 - 2036 Total (GEL MILLION) Large portfolio companies 150.2 135.5 110.2 169.2 565.1 Retail (pharmacy) 79.0 38.3 29.7 22.7 169.7 Insurance (P&C and medical) 3.0 6.5 7.3 12.7 29.5 Healthcare s
Slide 43: 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