Georgia Capital PLC · LSE:CGEO
Georgia Capital — H1 2022 Earnings Presentation
59 slides from Georgia Capital's earnings presentation, Aug 12, 2022
Slide 1: 2Q22 & 1H22 Results Call Presentation
2Q22 & 1H22 RESULTS CALL PRESENTATION 12 AUGUST 2022
Slide 2: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 2Q22 02 MACROECONOMIC UPDATE | GEORGIA 03 2Q22 & 1H22 PERFORMANCE OVERVIEW 04 2Q22 & 1H22 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 05 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 06 WRAP-UP 07 ANNEX 2
Slide 3: Key Developments in 2Q22
▪ NAV PER SHARE (GEL) STABILISED – UP 0.2% IN 2Q22 (UP 4.4% SINCE 30-JUN-22) 1 ▪ NAV PER SHARE (GBP) AT RECORD HIGH GBP 16.80 AT 11-AUG-22 (ADJUSTED FOR BOG’S SHARE PRICE AND FX MOVEMENTS) ▪ NCC RATIO DOWN 1.2 PPTS TO 27.0% AS AT 30-JUN-22 2 ▪ NCC RATIO AT 23.5%, WHEN ADJUSTED FOR THE DECREASE IN TH
Slide 4: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 2Q22 02 MACROECONOMIC UPDATE | GEORGIA 03 2Q22 & 1H22 PERFORMANCE OVERVIEW 04 2Q22 & 1H22 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 05 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 06 WRAP-UP 07 ANNEX 4
Slide 5: Real GDP continuing double-digit growth in 2022
REAL GDP CONTINUING DOUBLE-DIGIT GROWTH IN 2022 REAL GDP UP 10.5% Y-O-Y IN 1H22 50% 45% REAL GDP UP 10.5% Y-O-Y IN 1H22 40% 26% 30% 19% 18.0% KEY DRIVERS 20% 14.6% 10% 10% 12% 11.6% 10% 7% 7% 7.2% 10% ➢ Strong external demand supplemented by the migration effect, as 4% 10.6% 0% remittance inflows gr
Slide 6: Georgian Lari – appreciating since mid-2021
GEORGIAN LARI – APPRECIATING SINCE MID-2021 APPRECIATING SINCE MID-2021, BRIEFLY INTERRUPTED AFTER THE RUSSIAN INVASION OF UKRAINE, GEL HAS NOW STRENGTHENED CLOSE TO PRE-PANDEMIC LEVELS AGAINST USD Sources: NBG GEL APPRECIATION DRIVERS 3.7 3.5 ➢ Record high remittance inflows, increasing by 65% y-o-
Slide 7: Net external earnings turned positive in 2Q22
NET EXTERNAL EARNINGS* TURNED POSITIVE IN 2Q22 LARGELY ON THE BACK OF REMITTANCE INFLOWS EXTERNAL EARNINGS (US$ MILLION) TERMS OF TRADE HAVE REACHED 112% ON AVERAGE IN 1H22, COMPARED TO 101% IN 2021 (JAN 2017=100) Money transfers (Inflows) Money transfers (Outflows) Tourism revenues Exports Imports
Slide 8: Inflation to decelerate gradually in the 2nd half of 2022
INFLATION TO DECELERATE GRADUALLY IN THE 2ND HALF OF 2022 INFLATION Y-O-Y VS. INFLATION TARGET Sources: NBG, GeoStat INFLATION TO DECELERATE BUT REMAIN 16 Headline Inflation Core Inflation Target CLOSE TO DOUBLE DIGITS IN 2022 12 11.5 ➢ Annual inflation reached 11.5% in July 2022 (12.9% on average i
Slide 9: Fiscal deficit to fall to 3.5% in 2022
FISCAL DEFICIT TO FALL TO 3.5% IN 2022 ON THE BACK OF EXCEPTIONAL REVENUE PERFORMANCE AND MODERATING EXPENSES PUBLIC DEBT Sources: MoF FISCAL SUPPORT HAS BEGUN MODERATING External public debt to GDP, % Total public debt to GDP, % 59.9% ➢ Fiscal support moderated in 2022, with current expenditures 60
Slide 10: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 2Q22 02 MACROECONOMIC UPDATE | GEORGIA 03 2Q22 & 1H22 PERFORMANCE OVERVIEW ▪ AGGREGATED PORTFOLIO RESULTS OVERVIEW ▪ NAV PER SHARE DEVELOPMENT OVERVIEW ▪ UPDATE ON DELEVERAGING 04 2Q22 & 1H22 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 05 LIQUIDITY AND DIVIDEND INCOME O
Slide 11: Aggregated revenue development across private portfolio
AGGREGATED REVENUE DEVELOPMENT ACROSS PRIVATE PORTFOLIO GEL MILLION AGGREGATED QUARTERLY +36.0% REVENUE UP 4.6% Y-O-Y +9.3% IN 2Q22 AND UP 48.6% 905 FROM 2Q20 +48.6% 828 198 +4.6% 666 150 ▪ 1H22 aggregated revenue up 9.3% y-o-y 85 and up 36.0% from 1H20 115 79 450 470 56 86 122 317 45 42 64 29 224 3
Slide 12: Aggregated EBITDA development across private portfolio
AGGREGATED EBITDA DEVELOPMENT ACROSS PRIVATE PORTFOLIO GEL MILLION AGGREGATED EBITDA DOWN +30.0% 20.0% Y-O-Y IN 2Q22 AND -12.1% DOWN 12.1% Y-O-Y IN 1H22 133 20 117 KEY DRIVERS +35.8% 11 90 32 ▪ 2Q22 EBITDA of Retail (Pharmacy) down 11.4% -20.0% 30 y-o-y (up 15.7% y-o-y in 1H22), mainly 3 reflecting
Slide 13: Aggregated cash balance & net operating cash flow
AGGREGATED CASH BALANCE & NET OPERATING CASH FLOW DEVELOPMENT ACROSS PRIVATE PORTFOLIO ORGANIC TRANSITION TO REVENUE GROWTH STRATEGY FROM PREVIOUSLY ADOPTED CASH PRESERVATION STRATEGY TOTAL AGGREGATED NET OPERATING CASH FLOW TOTAL AGGREGATED CASH BALANCE OF PRIVATE BUSINESSES (GEL MILLION) (GEL MILL
Slide 14: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 2Q22 02 MACROECONOMIC UPDATE | GEORGIA 03 2Q22 & 1H22 PERFORMANCE OVERVIEW ▪ AGGREGATED PORTFOLIO RESULTS OVERVIEW ▪ NAV PER SHARE DEVELOPMENT OVERVIEW ▪ UPDATE ON DELEVERAGING 04 2Q22 & 1H22 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 05 LIQUIDITY AND DIVIDEND INCOME O
Slide 15: NAV per share (GEL) development overview
NAV PER SHARE (GEL) DEVELOPMENT OVERVIEW DESPITE THE NEGATIVE IMPACT OF THE ONGOING RUSSIA-UKRAINE +17.5% WAR, NAV PER SHARE STILL REMAINS SIGNIFICANTLY ABOVE RUSSIA-UKRAINE WAR -16.5% PRE-COVID-19 LEVELS +0.2% +4.4% COVID-19 IMPACT 63.03 -32.4% 55.02 54.48 52.71 52.62 GEL 46.84 48.12 31.67 Dec-19 J
Slide 16: NAV per share (GEL) movement in 2Q22
NAV PER SHARE (GEL) MOVEMENT IN 2Q22 NAV PER SHARE (GEL) -4.9% +3.5% +0.8% +1.5% -0.4% -0.2% +0.2% +4.4% +4.6% UP 0.2% IN 2Q22 ▪ NAV per share (GBP) up 14.4% in 2Q22, reflecting a 14.2% appreciation of GEL against GBP PRIVATE PORTFOLIO ▪ As of 11-Aug-22, NAV per share (GEL) up 4.6% and up 30.0% in G
Slide 17: Progress on the current share buyback and cancellation programme
PROGRESS ON THE CURRENT SHARE BUYBACK AND CANCELLATION PROGRAMME DEVELOPMENT OF SHARE BUYBACK AND CANCELLATION PROGRAMME 2.8 MILLION SHARES (c.6% OF ISSUED 0.9 TOTAL CAPITAL) HAVE BEEN REPURCHASED 0.8 UNDER THE CURRENT US$ 25 MILLION 0.5 2.8 SHARE BUYBACK AND CANCELLATION 0.4 MILLION 7.4 0.3 PROGRAM
Slide 18: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 2Q22 02 MACROECONOMIC UPDATE | GEORGIA 03 2Q22 & 1H22 PERFORMANCE OVERVIEW ▪ AGGREGATED PORTFOLIO RESULTS OVERVIEW ▪ NAV PER SHARE DEVELOPMENT OVERVIEW ▪ UPDATE ON DELEVERAGING 04 2Q22 & 1H22 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 05 LIQUIDITY AND DIVIDEND INCOME O
Slide 19: Net Capital Commitment (NCC) overview
NET CAPITAL COMMITMENT (NCC) OVERVIEW Pro-forma US$ million 31-Mar-22 Change 30-Jun-22 Change 11-Aug-22 30-Jun-22 NCC REPRESENTS AN AGGREGATED Cash and liquid funds 231.7 -2.2% 226.5 NMF 226.6 VIEW OF ALL CONFIRMED, AGREED Loans issued1 6.8 26.7% 8.7 0.7% 8.7 AND EXPECTED CAPITAL OUTFLOWS Accrued di
Slide 20: NCC ratio development overview
NCC RATIO DEVELOPMENT OVERVIEW NCC AND NCC RATIO DEVELOPMENT OVERVIEW1 NCC RATIO DOWN BY 1.2 PPTS TO 27.0% IN 2Q22 385.8 365.9 345.7 ▪ Pro-forma NCC ratio down to 23.5%, reflecting the anticipated decrease in the issued guarantees as well as the movements in BoG share price and FX. 42.5% 39.8% 250.4
Slide 21: Deleveraging across our private portfolio
DELEVERAGING ACROSS OUR PRIVATE PORTFOLIO TARGET AGGREGATED LEVERAGE ADJUSTED NET DEBT/EBITDA 31-MAR-22 CHANGE 30-JUN-22 (OVER THE CYCLE) ACROSS OUR PRIVATE LARGE AND INVESTMENT STAGE LARGE PORTFOLIO COMPANIES PORTFOLIO COMPANIES AT Retail (pharmacy)1 1.7x -0.1x 1.6x Up to 1.5x 2.8x AS OF 30-JUN-22
Slide 22: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 2Q22 & 1H22 02 MACROECONOMIC UPDATE | GEORGIA 03 2Q22 & 1H22 PERFORMANCE OVERVIEW 04 2Q22 & 1H22 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 05 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 06 WRAP-UP 07 ANNEX 22
Slide 23: Portfolio valuation overview
PORTFOLIO VALUATION OVERVIEW NEW STARTING FROM 1H22, c.90% OF THE TOTAL PORTFOLIO IS VALUED EXTERNALLY % SHARE IN TOTAL The valuation of our large and PORTFOLIO COMPANY FY21 1H22 PORTFOLIO AT investment stage portfolio 30-JUN-22 companies is performed by an Listed and Observable portfolio companies
Slide 24: Portfolio value development in 2Q22
PORTFOLIO VALUE DEVELOPMENT IN 2Q22 PORTFOLIO VALUE UP 3.7% -0.2% -1.6% +5.5% TO GEL 2.7 BILLION IN 2Q22 ▪ As previously announced at our Investor Day 2022, US$ 46.8 million issued loans were converted into LISTED AND OBSERVABLE PRIVATE PORTFOLIO COMPANIES equity in 2Q22 GEL MILLION PORTFOLIO COMPAN
Slide 25: Portfolio value as of 30-Jun-22
PORTFOLIO VALUE AS OF 30-JUN-22 % SHARE IN TOTAL PORTFOLIO VALUE: 78% OF OUR PORTFOLIO 90% IS OF OUR PORTFOLIO 17% 6% 25% 18% 9% 6% 6% 4% 10% ISVALUED VALUED EXTERNALLY EXTERNALLY1 1 MULTIPLE: GBP 13.06 OPTION 8.3x 10.5x 11.0x – 14.5x 11.1x 15.3x 9.8x6 BGEO VALUATION2 LTM EV/EBITDA3 LTM EV/EBITDA3 L
Slide 26: Retail (Pharmacy) business operating performance overview
RETAIL (PHARMACY) BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT EBITDA1 DEVELOPMENT RETAIL (PHARMACY) +22.6% +4.9% KEY DRIVERS +33.6% 391 373 ▪ 2Q22 and 1H22 revenues of Retail (Pharmacy) GEL MILLION +14.4% reflect the recalibration of product prices due -3.5% 319 to GEL’s appreciation
Slide 27: Retail (Pharmacy) business valuation overview
Externally valued1 RETAIL (PHARMACY) BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 2Q22 IMPLIED LTM EV/EBITDA DEVELOPMENT (GEL MILLION) (incl. IFRS 16) Change q-o-q +1.7% +19.1% -22.4% +2.1% 8.1x 8.3x 31-Mar-22 30-Jun-22 VALUATION HIGHLIGHTS1 ADJUSTED NET DEBT TO EBITDA2 GEL million, unle
Slide 28: Hospitals business operating performance overview
HOSPITALS BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT EBITDA1 DEVELOPMENT +40.3% -1.4% HOSPITALS 152 150 KEY DRIVERS +55.9% ▪ 2Q22 and 1H22 performance of the business -10.6% GEL MILLION 107 +51.1% reflects the suspension of COVID contracts by the Government in 1Q22 and the subsequen
Slide 29: Hospitals business valuation overview
Externally valued1 HOSPITALS BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 2Q22 IMPLIED LTM EV/EBITDA DEVELOPMENT (GEL MILLION) (incl. IFRS 16) Change q-o-q -7.7% -3.5% -12.7% -8.8% 10.3x 10.5x 31-Mar-22 30-Jun-22 VALUATION HIGHLIGHTS1 NET DEBT TO EBITDA GEL million, unless noted otherwis
Slide 30: Insurance business operating performance overview
INSURANCE BUSINESS OPERATING PERFORMANCE OVERVIEW EARNED PREMIUMS NET NET INCOME DEVELOPMENT +17.7% +9.1% 81 INSURANCE 69 75 KEY DRIVERS +25.6% 35 P&C Insurance -15.5% 35 ▪ Increase in earned premiums net in 2Q22 +9.3% GEL MILLION 35 and 1H22 is driven by the growth in the 42 -30.8% -6.5% credit lif
Slide 31: P&C Insurance business valuation overview
Externally valued1 P&C INSURANCE BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 2Q22 IMPLIED LTM P/E MULTIPLE DEVELOPMENT (GEL MILLION) Change q-o-q +8.2% 10.6x 11.0x 31-Mar-22 30-Jun-22 VALUATION HIGHLIGHTS1 NET DEBT TO EBITDA GEL million, unless noted otherwise 30-Jun-22 31-Mar-22 Change
Slide 32: Renewable Energy business operating performance overview
RENEWABLE ENERGY BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT EBITDA DEVELOPMENT +1.9% RENEWABLE ENERGY -5.8% +4.8% 20 19 19 +1.0% KEY DRIVERS -7.6% 6 +10.2% ▪ 2Q22 and 1H22 performance mainly 3 -4.3% 14 GEL MILLION 13 8 reflects GEL’s appreciation against US$ 12 4 -5.9% and decrease
Slide 33: Renewable Energy business valuation overview
Externally valued1 RENEWABLE ENERGY BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 2Q22 EQUITY FAIR VALUE COMPOSITION AT 30-JUN-22 (GEL MILLION) (GEL MILLION) Change q-o-q -1.5% -5.6% +5.1% 42 Total value 172 130 Operational assets Pipeline projects VALUATION HIGHLIGHTS1 NET DEBT TO EBITDA
Slide 34: Education business operating performance overview
EDUCATION BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT EBITDA DEVELOPMENT +58.8% EDUCATION +36.4% +70.8% KEY DRIVERS 22 GEL MILLION +35.7% ▪ 2Q22 and 1H22 revenue and EBITDA +81.3% growth reflects higher total enrolments, 28.9% 16 +108.1% increase in average fee per learner and 9 14 s
Slide 35: Education business valuation overview
Externally valued1 EDUCATION BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 2Q22 LTM EV/EBITDA DEVELOPMENT (GEL MILLION) Change q-o-q +25.5% -27.8% +12.7% +25.8% +12.1% 15.3x 12.0x 31-Mar-22 30-Jun-22 2 VALUATION HIGHLIGHTS1 NET DEBT TO EBITDA GEL million, unless noted otherwise 30-Jun-22
Slide 36: Clinics & Diagnostics business operating performance overview
CLINICS & DIAGNOSTICS BUSINESS OPERATING PERFORMANCE OVERVIEW REVENUE DEVELOPMENT2 EBITDA1 DEVELOPMENT CLINICS & DIAGNOSTICS +88.6% +3.2% +101.3% KEY DRIVERS +74.1% ▪ Similar to the hospitals business, our clinics +84.2% -31.7% 45 47 GEL MILLION -21.2% business was also impacted by the 10 12 -62.1%
Slide 37: Clinics & Diagnostics business valuation overview
Externally valued1 CLINICS & DIAGNOSTICS BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 2Q22 IMPLIED LTM EV/EBITDA DEVELOPMENT (GEL MILLION) (incl. IFRS 16) Change q-o-q -8.4% +23.4% -28.9% -18.9% 9.8x 9.0x 31-Mar-22 30-Jun-22 VALUATION HIGHLIGHTS1 NET DEBT TO EBITDA GEL million, unless no
Slide 38: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 2Q22 02 MACROECONOMIC UPDATE | GEORGIA 03 2Q22 & 1H22 PERFORMANCE OVERVIEW 04 2Q22 & 1H22 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 05 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 06 WRAP-UP 07 ANNEX 38
Slide 39: Liquidity outlook
LIQUIDITY OUTLOOK LIQUIDITY DEVELOPMENT OVERVIEW (US$ MILLION) GCAPS LIQUIDITY UP BY 2.7X IN 1H22, REFLECTING THE +2.7x CASH RECEIPT FROM THE WATER UTILITY BUSINESS SALE +1.1% 232 234 ONGOING STRONG LIQUIDITY AT THE GCAP LEVEL AND ROBUST CAPITAL MANAGEMENT FRAMEWORK LED TO AN UPGRADE IN OUR CORPORAT
Slide 40: Dividend income outlook
DIVIDEND INCOME OUTLOOK DIVIDEND INCOME FROM PORTFOLIO COMPANIES (GEL MILLION) 90-100 2019 1 44.0 28.9 72.9 ROBUST DIVIDEND INCOME OUTLOOK IN 2022 +2.1% GEL MILLION 2020 29.9 INCLUDES PRIVATE PORTFOLIO COMPANIES AND BOG IN 2022 2021 59.9 14.5 74.4 GEL 55.6-65.6 MILLION DIVIDEND INCOME REMAINING IN 2
Slide 41: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 2Q22 02 MACROECONOMIC UPDATE | GEORGIA 03 2Q22 & 1H22 PERFORMANCE OVERVIEW 04 2Q22 & 1H22 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 05 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 06 WRAP-UP 07 ANNEX 41
Slide 42: Solid performance across our private portfolio, with outlook being even stronger
SOLID PERFORMANCE ACROSS OUR PRIVATE PORTFOLIO, WITH OUTLOOK BEING EVEN STRONGER PERFORMANCE HIGHLIGHTS ▪ NAV per share (GEL) stabilised – up 0.2% in 2Q22 (up 4.4% since 30-Jun-22) ✓ ▪ NAV per share (GBP) at record high GBP 16.80 at 11-Aug-22 (adjusted for BoG’s share price and FX movements) ▪ NCC r
Slide 43: Contents
CONTENTS 01 KEY DEVELOPMENTS IN 2Q22 02 MACROECONOMIC UPDATE | GEORGIA 03 2Q22 & 1H22 PERFORMANCE OVERVIEW 04 2Q22 & 1H22 PORTFOLIO RESULTS AND VALUATIONS OVERVIEW 05 LIQUIDITY AND DIVIDEND INCOME OUTLOOK 06 WRAP-UP 07 ANNEX 43
Slide 44: Medical Insurance business valuation overview
Externally valued1 MEDICAL INSURANCE BUSINESS VALUATION OVERVIEW VALUE DEVELOPMENT OVERVIEW | 2Q22 IMPLIED LTM P/E MULTIPLE DEVELOPMENT (GEL MILLION) Change q-o-q -7.9% -12.4% -9.4% 14.0x 14.5x 31-Mar-22 30-Jun-22 VALUATION HIGHLIGHTS1 NET DEBT TO EBITDA GEL million, unless noted No No No 30-Jun-22
Slide 45: Detailed NAV per share (GEL) movement in 2Q22
DETAILED NAV PER SHARE (GEL) MOVEMENT IN 2Q22 NAV PER SHARE (GEL) UP 0.2% IN 2Q22 -4.9% 0.0% 3.0% 0.5% 0.2% 0.6% 1.5% -0.4% -0.2% 0.2% -1.4% PRIVATE PORTFOLIO LISTED AND OBSERVABLE PORTFOLIO In GBP: In GBP: 12.92 +14.4% 14.78 45
Slide 46: NAV per share (GEL) movement in 1H22
NAV PER SHARE (GEL) MOVEMENT IN 1H22 NAV PER SHARE (GEL) -5.6% -4.0% -6.6% +3.0% -0.7% -2.5% -16.4% +4.4% -12.7% DOWN 16.4% IN 1H22 ▪ The decrease in NAV per share (GEL) reflects the impact of adverse market movements on portfolio valuations: PRIVATE PORTFOLIO • GEL 276.2 million value reduction in
Slide 47: Detailed NAV per share (GEL) movement in 1H22
DETAILED NAV PER SHARE (GEL) MOVEMENT IN 1H22 NAV PER SHARE (GEL) DOWN 16.4% IN 1H22 -5.6% 0.0% -4.4% 0.4% -7.0% 0.4% 3.0% -0.7% -2.5% -16.4% -9.6% PRIVATE PORTFOLIO LISTED AND OBSERVABLE PORTFOLIO In GBP: In GBP: 15.10 -2.1% 14.78 47
Slide 48: Portfolio value development in 1H22
PORTFOLIO VALUE DEVELOPMENT IN 1H22 PORTFOLIO VALUE DOWN 25.2% IN 1H22, REFLECTING THE SALE OF THE WATER UTILITY BUSINESS FOR -6.9% -9.3% +4.7% CASH AND UNREALISED LOSSES FROM PORTFOLIO VALUATIONS GEL MILLION LISTED AND OBSERVABLE PRIVATE PORTFOLIO COMPANIES PORTFOLIO COMPANIES 48
Slide 49: NCC development overview
NCC DEVELOPMENT OVERVIEW OVER THE CYCLE NCC / Total portfolio value (“NCC ratio”)1 TARGET OUR TARGET IS TO BRING 42.5% 39.8% 31.9% 28.2% 27.0% 23.5% 15.0% DOWN THE NCC RATIO BELOW 15% BY DEC-2025 385.8 365.9 345.7 50.0 50.0 50.0 45.6 48.0 US$ MILLION 75.6 290.2 250.4 249.0 242.1 267.9 50.0 50.0 50.0
Slide 50: Private portfolio companies' debt maturity profile
PRIVATE PORTFOLIO COMPANIES’ DEBT MATURITY PROFILE GROSS DEBT MATURITY AS OF 30 JUNE 2022 (GEL MILLION) 2022 2023 2024 2025+ Total Large portfolio companies 107.2 68.6 80.5 37.0 293.3 Retail (pharmacy) - 12.0 10.3 25.7 48.0 Hospitals 107.2 56.6 70.2 11.3 245.3 Medical Insurance - - - - - Investment
Slide 51: NAV statement snapshot in 2Q22
NAV STATEMENT SNAPSHOT IN 2Q22 GEL ‘000, UNLESS OTHERWISE NOTED 31-Mar-22 30-Jun-22 Change % GEORGIA CAPITAL 2Q22 RESULTS Total Listed and Observable Portfolio 612,871 608,719 -0.7% Companies Value Large Portfolio Companies 1,410,482 1,389,193 -1.5% Investment Stage Portfolio Companies 447,247 443,9
Slide 52: NAV statement snapshot in 1H22
NAV STATEMENT SNAPSHOT IN 1H22 GEL ‘000, UNLESS OTHERWISE NOTED 31-Dec-21 30-Jun-22 Change % GEORGIA CAPITAL 1H22 RESULTS Total Listed and Observable Portfolio 681,186 608,719 -10.6% Companies Value Large Portfolio Companies 2,249,260 1,389,193 -38.2% Investment Stage Portfolio Companies 461,140 443
Slide 53: Value creation in private portfolio | 2Q22
VALUE CREATION IN PRIVATE PORTFOLIO | 2Q22 Operating Greenfields / Multiple Change Value Creation in Portfolio Businesses (14.4) Performance buy-outs / exits and FX 2Q22 GEL thousand (1) (2) (3) (1)+(2)+(3) BoG 5,038 Water Utility 13,608 GEL MILLION Total Listed and Observable Portfolio Companies 18
Slide 54: Value creation in private portfolio | 1H22
VALUE CREATION IN PRIVATE PORTFOLIO | 1H22 Operating Greenfields / Multiple Change Value Creation in (465.3) Portfolio Businesses Performance buy-outs / exits and FX 1H22 GEL thousand (1) (2) (3) (1)+(2)+(3) BoG (202,669) Water Utility 13,608 GEL MILLION Total Listed and Observable Portfolio Compani
Slide 55: NAV statement | 2Q22
NAV STATEMENT | 2Q22 1.Value 2a. 3.Operating 4. Liquidity 2c. GEL thousand unless otherwise noted 31-Mar-22 2b. Buybacks Management/ FX / 30-Jun-22 Change % Creation Investments Dividends Expenses Other Listed and Observable Portfolio Companies Bank of Georgia (BoG) 473,479 5,038 - - (22,798) - - 45
Slide 56: NAV statement | 1H22
NAV STATEMENT | 1H22 1.Value 2a. 3.Operating 4. Liquidity 2c. GEL thousand unless otherwise noted 31-Dec-21 2b. Buybacks Management/ FX / 30-Jun-22 Change % Creation Investments Dividends Expenses Other Listed and Observable Portfolio Companies Bank of Georgia (BoG) 681,186 (202,669) - - (22,798) -
Slide 57: Income statement | 2Q22 & 1H22
INCOME STATEMENT | 2Q22 & 1H22 Income statement GEL ‘000, unless otherwise noted 2Q22 2Q21 Change 1H22 1H21 Change Dividend income 32,226 9,691 NMF 34,421 14,430 NMF Interest income 9,364 6,120 53.0% 18,150 10,617 71.0% Realised / unrealised (loss)/ gain on liquid funds (1,197) 1,687 NMF (11,435) 1,
Slide 58: Valuation peer group
VALUATION PEER GROUP RETAIL P&C (PHARMACY) HOSPITALS INSURANCE • NEUCA S.A. | Poland • Medicover AB (publ) | Sweden • Dhipaya Insurance | Thailand • Sopharma Trading AD | Bulgaria • EMC Instytut Medyczny SAEMC SA | Poland • Zavarovalnica Triglav | Slovenia • S.C. Ropharma S.A. | Romania • Med Life S
Slide 59: 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