Georgia Capital Portfolio Overview
Private early
stage portfolio
Beverages - wine business overview
Investment rationale
"
Georgia is considered the "cradle of wine" with a rich, 8,000-year history of wine-making and
home to over 500 unique grape varieties
Georgia's favorable trade regimes (free trade agreements with EU and China) provide potential
for export growth for beverages
Growing urbanization and tourism inflows are raising demand for bottled wine locally
Approximately 29% of the tourism inflows is spent on food & beverages
Value creation potential
"
"
Best-in-class distribution network platform
Grow vineyard base to 1,000 hectares, from current 451 hectares
Key highlights | 30 June 2019
GCAP ownership
LTM EBITDA²
30-Jun-19
86%
31-Dec-18
Change
80%
+6.0ppt
5.4
5.0
7.6%
Multiple applied
9.9
9.1
8.8%
Enterprise value
54
54
46
46
17.1%
Net debt
(8)
(7)
23.2%
Financial metrics (GEL millions)
Kindzmarauli
21
26
-21.3%
Annual
Semiannually
Equity fair value
60
60
57
10
5.0%
2015
2016
2017
2018
1H18
Wine Revenue
18
18
20
29
9.9
Wine EBITDA
2
3
5
7
1.6
1H19
17.3
3.0
Change
75.0%
87.2%
LTM ROIC1
12.1%
-2.1ppt
Selected operating metrics (in '000)
1H18
1H19
Change
Wine sales bottles
1,706
2,541
49%
Of which, export sales
1,286
2,002
56%
Export share (%)
75.4%
78.8%
+3.4ppt
47
10.0%
Market opportunity
Georgia's Wine Exports ($US Millions)
Export Sales ($US) over past 5 years
at 10% CAGR
increased
Our export market
share (1H19)- 5%
172
192
166
119
109
91
77
86
89
97
59
50
36
38
40
(1)
(2)
ROIC is calculated as EBITDA less depreciation, plus divided by average amount of total equity and borrowed fund.
LTM EBITDA is stated excluding Kindzmarauli, as Kindzmarauli is valued at cost as of 30 June 2019.
2013
2014
2015
2016
2017
2018
1H18
1H19
Wine exports (Bottles)
■Wine exports ($US millions)
Source: LEPL Georgian National wine agency; National statistics office of Georgia
GEORGIA
CAPITAL
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