Georgia Capital 3Q23 & 9M23 Performance Overview
Private investment
stage portfolio
companies
EXTERNALLY VALUED
EDUCATION BUSINES OVERVIEW
INDUSTRY INVESTMENT RATIONALE
■
"
"
Highly fragmented general education
market with consolidation opportunity.
Market with strong growth potential.
Low dependency on the Government.
High resilience to crisis.
High quality and predictable revenue.
Strong profitability.
CAPEX efficient business.
TARGETING FOR 2025...
EBITDA margin
40%+
...THROUGH
REMAINING GCAP
NEW EQUITY
INVESTMENT
GEORGIA
CAPITAL
18
BUILT LEARNER
CAPACITY
22
EBITDA
50
US$ million
thousand
GEL million
"
Positive ESG impact.
TOTAL REMAINING
45
INVESTMENT, in US$m
TOTAL BUILT LEARNER
CAPACITY, in thousands
21.9
TOTAL EBITDA¹, in GELM 50
VALUE CREATION POTENTIAL
Scaling up to capacity of 22,000 learners
through expansion plans in existing
2
Equity Value
Debt
14
Currently operational
7.3
Equity
31
campuses
Currently operational
campuses
21
schools, greenfield projects and M&As
by 2025.
GEL 0.5bln
Reinvestment
11
Secured pipeline projects 2.4
GCAP new equity
18
M&A
12.3
Strong organic growth at existing
investment
schools is expected to drive solid
Minority equity investment
2
growth in run-rate EBITDA, on top of
expansion plans, greenfield projects and
M&As by 2025.
Out of 22k capacity: 14.9k Affordable;
4.6k Midscale; 1.9k Premium; 0.6k
International
As of 2022-23 academic
year
Organic growth
Secured pipeline projects
13
8
9
M&A
20
ROIC
Eventual growth of potential EBITDA
with GEL 37m will be fulfilled through
building out eventual learner capacity,
reaching run-rate utilization and
3
20%+
■
sustaining revenue per learner growth.
Stable dividend provider capacity in the
medium terms.
OWNERSHIP
4
Ramp-up of
new capacity
◉
Majority stakes (70%-90%) across
different schools.
3-5 years
With new equity investment of US$ 18 million GCAP can expand to 22k learner capacity
and generate GEL 50 million EBITDA by 2025 through: (1) currently operational campuses,
(2) secured pipeline projects and (3) M&A
In addition to US$ 18 million new equity investment by GCAP, growth will be financed through,
reinvestments, debt, and equity contribution by minorities - total remaining investment for
Education business is US$ 45 million
Georgia Capital PLC | 1. Target EBITDA breakdown is presented based on the calculations at the end of 2021-2022 academic year.
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