Investor Presentaiton
Pipeline
Auto Service business overview
Number of passenger cars per 1,000 people, (2017)
Market opportunity
Investment rationale
Georgia's Auto park continues to grow steadily, with 7.4% CAGR during the years 2012-2019
Georgia lags behind developed countries by number of private passenger cars per capita, showing room for
further growth*
Vehicles older than 10 years represent 90% of total auto park
Value creation potential
"
Room for growth in the highly fragmented auto service market in Georgia with approximately GEL 2.8 billion
annual revenues
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 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, present in 70+ countries
Source: GALT & TAGGART
GEL millions, unless otherwise noted
Valuation highlights | 31 March 2020
GEORGIA
CAPITAL
31-Mar-20
31-Dec-19
PTI EBITDA²
Change
6.7
6.7
Multiple applied
NMF
8.7
10.4
PTI enterprise value
-16.3%
59
70
PTI net debt
-16.3%
(53)
PTI | Equity fair value
(49)
7.0%
6
Amboli acquisition price
21
-71.9%
9
Auto service business | Equity fair value
5
83.4%
15
26
-41.6%
527
510
Source: GALT & TAGGART
Selected metrics
419
418
378
351
348
322
313
Czech rpb
Slovenia
Estonia
307
Financial metrics | Auto Service
I 256 1
Lithuania
Company
Opus Group
VICOM
Applus Services
Sweden
Hungary
Croatia
202
147
112
Revenue
Gross profit
EBITDA
1Q19
1Q20
1.8
Change
8.2
NMF
0.7
2.0
Latvia
Belarus
Russia
Georgia
Kazakhstan
Valuation peer group
Turkey
Azerbaijan
NMF
Operating cashflow
(0.4)
0.05
NMF
(0.2)
(1.9)
NMF
Number of inspection lines
Operating metrics | PTI
(1)
Based on cars serviced.
(2)
(3)
Singapore
Spain
Combination of the last six months and the next six months earnings as of 31 December 2019.
Technical inspection prices are fixed set at GEL 60 and GEL 100 for light vehicles and heavy vehicles, respectively.
Country
Sweden
Market share¹
Ticker
OPUS
VCM
APPS
51
Stock Exchange
Stockholm
Singapore
Cars serviced
Bolsa de Madrid
of which, primary
of which, secondary
34%
1Q19 1Q20 Change
47,885 68,995 44.1%
34,387 48,271 40.4%
13,498 20,724 53.5%
➤ All inspection centers were constructed
within 6 months. The operations
launched in Mar-19.
➤ Average time per checks decreased
significantly from 25 minutes upon
launch to 12 minutes at 31-Mar-20.
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