Georgia Capital Financial Highlights
Pipeline
Periodic technical inspection business overview
"
Investment rationale
Georgia's Auto park continues to grow steadily, with 7.4% CAGR during the years 2012-2019
"
Vehicles older than 10 years represent 90% of total auto park
"
Company
Opus Group
VICOM
Applus Services
Czech rpb
Slovenia
Estonia
Lithuania
Market opportunity
Number of passenger cars per 1,000 people, (2017)
527
510
419
418
378
351
348
322
313
307
Value creation potential
"
In July 2018, the business (Greenway Georgia or "GWG") won state tender to launch and operate 51 periodic
technical inspection lines across Georgia with a 10-year license.
Currently, inspection covers the basic technical control of vehicles. The government plans to gradually tighten
procedures in 2020 to try and reduce the level of harmful emissions*
GWG is the only player on the market with support from an international partner, Applus+, a Spain-
headquartered worldwide leader in testing, inspection and certification services, with a market presence in more
than 70 countries
* Source: GALT & TAGGART
Georgia lags behind developed countries by number of private passenger cars per capita, showing room for
further growth*
GEORGIA
CAPITAL
Key highlights | 31 December 2019
GEL millions, unless otherwise noted
31-Dec-19
EBITDA²
30-Jun-19 Change
6.7
6.7
Multiple applied
NMF
10.4
10.1
Enterprise Value
2.8%
70.0
68
2.8%
Net debt
(49)
(49)
PTI | Equity fair value
1.0%
21
19
Amboli acquisition price
7.2%
5
5
Auto service business | Equity fair value
NMF
26
24
Source: GALT & TAGGART
5.7%
Selected metrics
I 256 1
I
202
Sweden
Hungary
Croatia
Latvia
Belarus
Russia
Sweden
Singapore
Spain
Valuation peer group
Country
Ticker
OPUS
VCM
APPS
Bolsa de Madrid
Georgia
Kazakhstan
Turkey
Azerbaijan
147
112
Number of inspection lines
51
Financial highlights
GEL thousands
Current market share¹
36%
Operating highlights
Stock Exchange
Stockholm
Singapore
Revenue³
Gross margin
EBITDA
2019
2019
12,917
Cars serviced
342,275
66%
of which, primary
246,932
3,262
EBITDA margin
of which, secondary
95,343
25%
(1)
Based on available inspection lines.
(2)
Combination of the last six months and the next six months earnings.
(3)
Technical inspection prices are fixed set at GEL 60 and GEL 100 for light vehicles and heavy vehicles, respectively.
➤ All inspection centers were constructed and put into operations within 6 months (end of Feb-19)
➤ Average time per checks decreased significantly from 25 minutes upon launch to 11 minutes at
31-Dec-19
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