OPEX Ratio Alignment & Portfolio Valuation Overview slide image

OPEX Ratio Alignment & Portfolio Valuation Overview

Private investment stage portfolio companies EXTERNALLY VALUED EDUCATION BUSINESS OVERVIEW (CONT'D) GEORGIA CAPITAL Operating highlights As of 30-Jun-22 PRIVATE K-12 MARKET IN GEORGIA Capacity utilization, Excluding expansion² 96.5% Number of learners in private K-12 market Turnover of private K-12 market COVID impact Change (y-o-y) +5.3 ppts 3.4% CAGR '13-19 COVID impact -2.0% -2.6% 0.5% 5.0% 4.2% CAGR Capacity utilization for 23.0% newly added capacity 9.3% 9.7% 10.0% 9.9% 10.4% 10.1% 10.7% 10.2% 9.7% 4.1 11.4% 3.6 3.7 3.8 3.2 Change (q-o-q) -0.1 ppts 2.9 2.6 2.7 71.2 Number of learners 3,230 51.6 53.9 55.4 56.1 57.6 60.8 63.2 61.9 2.0 60.3 Change (y-o-y) +26.0% 280 281 295 257 217 177 192 158 115 Learner to teacher ratio 8.0 2013 Change (y-o-y) -16.1% 2014 2015 2016 2017 2018 2019 Number of private learners, '000 2020 2021 2025E 2013 2014 2015 2016 2017 2018 2019 2020 2021E % in total number of learners Total revenue, GELmln Revenue per learner 1, GEL '000 Financial highlights 2Q22 1H22 Total spending on K-12 education, 2018 Source: Ministry of Education of Georgia, G&T, GCAP estimates EBITDA GEL 4.5m GEL 8.8m 4.4% 3.7% 3.9% 3.1% 3.0% 3.0% 3.3% 3.1% 3.3% 2.6% 2.9% 3.2% 3.0% 2.9% 3.1% 2.4% 2.0% Change (y-o-y) EBITDA margin 39.4% +19.7% 39.7% +35.5% Change (y-o-y) Cash flow from operations Change (y-o-y) -3.0 ppts -0.2 ppts USD '000 GEL 8.8m GEL 10.5m 13.9 11.0 10.9 9.9 9.0 8.5 8.4 8.2 7.1 6.8 6.7 6.7 6.7 5.9 5.3 3.7 0.6 Net debt Change (y-o-y) +47.1% +38.8% Austria UK GEL 11.8m GEL 11.8m Germany France -19.8% -19.8% Italy Portugal Slovenia Spain Total spending per learner Czech Latvia Slovakia Poland Estonia Hungary Lithuania Turkey Georgia, 2021 Total spending as % of GDP Demand on private education is trending globally, growth attributable to regions with lower spending on Education Source: OECD, Ministry of Finance of Georgia Georgia Capital PLC | 1. Excluding kindergarten learners. 2. The expansion includes the addition of 2,250 learners' capacity in 3Q21, through the following investments: (1) the acquisition of an 81% equity interest in Georgian-Austrian School Pesvebi (1,200 learner capacity), (2) the launch of a new (second) campus under the existing affordable brand - Green School (600 learner capacity) and (3) the expansion of Green School's existing campus (450 learner capacity). 69
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