Georgia Capital PLC · LSE:CGEO
Georgia Capital — H1 2025 Earnings Presentation
15 slides from Georgia Capital's earnings presentation, August 2025
Slide 1: Macroeconomic Overview 2Q25 & 1H25 Results
MACROECONOMIC OVERVIEW 2Q25 & 1H25 RESULTS 1
Slide 2: Economic growth remained resilient despite uncertainties
ECONOMIC GROWTH REMAINED RESILIENT DESPITE UNCERTAINTIES GEORGIA’S ECONOMY CONTINUED TO EXPAND IN 2025, WITH PRELIMINARY ECONOMIC TOTAL FX INFLOWS INCREASED BY 8.1% Y-O-Y AND AMOUNTED TO US$ 6.9 BILLION IN 1H25 GROWTH AT 8.3% Y-O-Y IN 1H25, DRIVEN BY THE STRONG SERVICE SECTOR PERFORMANCE 54% 60% 16.
Slide 3: Sovereign ratings with favourable macro fundamentals
SOVEREIGN RATINGS WITH FAVOURABLE MACRO FUNDAMENTALS Key Ratings Highlights General Facts Rating Agency Rating Outlook Affirmed Ba2 Negative March 2025 BB Stable February 2025 Georgia BB Negative May 2025 Georgia is favorably placed among peers Fitch Rating Country Country Rating Outlook ▪ Area: 69,
Slide 4: Georgia's key economic drivers
GEORGIA’S KEY ECONOMIC DRIVERS Top performer compared to peers across a wide range of international rankings 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 c
Slide 5: Institutional oriented reforms
INSTITUTIONAL ORIENTED REFORMS OPEN BUDGET INDEX, 2023 | INTERNATIONAL BUDGET PARTNERSHIP ECONOMIC FREEDOM INDEX | 2025 (HERITAGE FOUNDATION) (BUDGET TRANSPARENCY) Ireland 3 Georgia 1 Sweden 3 Lithuania 16 Moldova 5 Czech Republic 20 Norway 8 Latvia 24 Bulgaria 10 Italy 13 Portugal 25 Germany 14 Jap
Slide 6: Economic growth continuing at pace
ECONOMIC GROWTH CONTINUING AT PACE GROSS DOMESTIC PRODUCT NOMINAL GDP STRUCTURE, 1Q25 Nominal GDP, GEL bln (LHS) Real GDP, YoY % 92 24% 90 81 80 73 20% 70 61 16% 60 50 50 10.6% 11.0% Public Construction, Finance, 45 9.4% 9.8% 12% 50 41 7.8% 8.7% Administration, 6.9% 5.7% 35 37 40 28 29 32 8% Trade,
Slide 7: Unemployment rate at historical lows
UNEMPLOYMENT RATE AT HISTORICAL LOWS UNEMPLOYMENT RATE AT HISTORICAL LOWS, DOWN TO 13.9% IN 2024 FROM 16.4% IN 2023 30% 27.2% 26.7% 25% 23.0% 21.7% 22.1% 20.4% 19.2% 19.0% 20% 18.3% 18.1% 18.0% 17.0% 16.7% 16.1% 15.6% 14.7% 15% 14.0% 13.8% 14.2% 10% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 8: Inflation has exceeded the target after the two years below
INFLATION HAS EXCEEDED THE TARGET AFTER THE TWO YEARS BELLOW INFLATION Y-O-Y VS. INFLATION TARGET INFLATION COMPONENTS Food and non-alcoholic beverages Alcoholic beverages and tobacco Transport 16 Headline Inflation Core Inflation Target Monetary Policy Rate Housing and utilities Other Inflation 14
Slide 9: Current account balance supported by increasing service exports
CURRENT ACCOUNT BALANCE SUPPORTED BY INCREASING SERVICE EXPORTS CA DEFICIT WIDENED TO -8.5% OF GDP IN 1Q25, DRIVEN BY A 10% INCREASE IN GOODS EXPORT OF SERVICES INCREASED TO US$ 1.7 BILLION IN 1Q25 (+9% Y-O-Y), MAINLY DUE TO IMPORTS AND A RISE IN THE NEGATIVE BALANCE OF THE PRIMARY INCOME ACCOUNT TH
Slide 10: Diversification of the external earnings enhances resilience
DIVERSIFICATION OF THE EXTERNAL EARNINGS ENHANCES RESILIENCE FX INFLOWS REBOUNDED IN RECENT QUARTERS DRIVEN BY THE BASE EFFECT RE-EXPORTED MOTOR CARS CONTRIBUTING MOST TO THE SURGING EXPORT IN THE LAST QUARTERS Export Remittances Tourism revenues External financing Growth rate of ex.fin, % Y-O-Y Cop
Slide 11: Trade diversified across countries, export concentration remains
WHILE TRADE HAS BECOME MORE DIVERSIFIED ACROSS COUNTRIES, EXPORT CONCENTRATION REMAINS EVIDENT, WITH MOTOR CARS ACCOUNTING FOR A SIGNIFICANT SHARE EXPORTS AND IMPORTS OF GOODS, Y-O-Y % EXTERNAL TRADE BY COUNTRIES, 1H25, SHARE IN TOTAL 75% Imports, YoY % Exports, YoY % 75% Export 3.2 USD BLN Import 8
Slide 12: Tourism revenues increased, shift toward new markets
TOURISM REVENUES HAVE INCREASED SOMEWHAT, ACCOMPANIED BY A SHIFT TOWARD NEW MARKETS TOURISM REVENUES TO GDP INTERNATIONAL VISITORS BY COUNTRY Tourism revenues, US$ bln Tourism revenues, % of GDP Number of International Visitors in 1H25, Thousand Recovery level in 1H25 (% of 1H2019 level) 19% 5.0 20%
Slide 13: NBG re-entered the FX market in March 2025
THE NBG RE-ENTERED THE FX MARKET IN MARCH 2025, PURCHASING US$ 879 MILLION TO ADD TO ITS FOREIGN EXCHANGE RESERVES THE NBG HAS KEPT MONETARY POLICY RATE STEADY AT 8.0% SINCE MAY 2024 INTERNATIONAL RESERVES 6,000 Official Reserve Assets, US$ mln Net Foreign Assets, US$ mln 14 International reserves r
Slide 14: Economic activity and loans growth
0% 5% 10% 15% 20% 25% -5% 0% 10% 20% 30% 40% 50% -10% Jun-17 Sep-18 Sep-17 Dec-18 Dec-17 Mar-19 Mar-18 Jun-19 Jun-18 Sep-18 Sep-19 Dec-18 Dec-19 LOANS BY CURRENCIES Mar-19 Mar-20 Jun-19 Jun-20 Business Loans Consumer Loans Sep-19 Georgia Capital PLC | Source: NBG Sep-20 Dec-19 Dec-20 Mar-20 Mar-21 J
Slide 15: General government total debt lowest since 2014
GENERAL GOVERNMENT TOTAL DEBT (% OF GDP) LOWEST SINCE 2014 AMID SOLID GROWTH AND EXCHANGE RATE GAINS IN 2024, GENERAL GOVERNMENT DEBT AS A PERCENT OF GDP REACHED ITS LOWEST LEVEL GENERAL GOVERNMENT DEBT STRUCTURE SINCE 2014 General Government Debt, External (% of GDP) General Government Debt, Total