Investor Presentaiton
Private investment
stage portfolio
companies
INTERNALLY VALUED
EDUCATION BUSINESS OVERVIEW (CONT'D)
FY20 Operating highlights
89.5%
-2.4ppts y-o-y
Capacity utilization
2,516
-2.6% y-o-y
Number of learners
9.2
+3.9% y-o-y
Learner to teacher ratio
GEL 9,530
+5.6% y-o-y
Private K-12 learners in Georgia
PRIVATE K-12 MARKET IN GEORGIA
Market growing at c.2x nominal GDP growth rate
GEORGIA
CAPITAL
Private K-12 market size in Georgia
8% CAGR '20-25
63.2
60.8
61.9
53.9
55.4
56.1
57.6
51.6
11%
16% CAGR '13-19
4.6
3.6
3.7
3.7
10%
10%
10%
10%
10%
10%
3.2
9%
2.9
2.6
2.7
400
2.0
lllll ......
280
275
257
217
192
177
158
115
Revenue per learner
FY20 Financial highlights
GEL 8.3m
+14.9% y-o-y
EBITDA
32.4%
+2.8ppts y-o-y
EBITDA MARGIN
GEL 7.9m
-17.9% y-o-y
Cash flow from operations
GEL 18.5m
Net debt
+26.4% y-o-y
2013
2014
2015
2016
2017
I Number of private learners
3.1%
13.9
Austria
UK
4.4%
11.0
10.9
3.0%
3.7%
9.9
9.3
9.0
3.0%
2018
2019
% of total number of learners
2020
2013
2014
2015
2016
2017
2018
2019
2020E
2025E
Total revenue, GELmln
Revenue per learner, GEL '000
Lower average annual spending per K-12 learner in Georgia indicating room for further growth
Source: G&T, GCAP estimates
4.5%
3.9%
3.3%
3.3%
3.2%
3.1%
2.9%
3.0% 2.9%
2.6%
8.5
8.4
8.2
6.8
6.7
7.1
6.7 6.7
3.6%
Mmmmmm......
Germany
France
New...
Italy
Portugal
Slovenia
Spain
Czech
Latvia
Total spending per learner
Slovakia
Poland
Total Estonia
di Hungary
5.9
as Lithuania
Total spending as % of GDP
2.4%
5.3
Chile
4.0%
3.9%
3.1%
2.7%
2.2%
•
5.0
3.7
3.0
3.0
1.5
0.7
T
Turkey
Mexico
Colombia
Indonesia
Georgia
Georgia has lower spending on education
compared to other countries:
Total spending per learner is USD 650
vs. USD 9,000 OECD average
Total spending as % of GDP stands at
2.2% versus 3.1% OECD average
65
Source: OECD, Ministry of Finance of GeorgiaView entire presentation