Georgia Capital PLC Investment Overview
Private late
stage portfolio
Water utility business overview
Investment rationale
Natural monopoly in Tbilisi and surrounding districts with high entry barriers
Sectoral output increasing at a robust growth rate (on average 9.5% in the last 10 years)
Stable regulatory environment with fair return on investment
Stable cash collection rates
Value creation potential
" EU harmonization reforms in progress in utilities sector, expected to drive water tariffs up
High GDP growth combined with rapid tourism growth drive high demand from corporates
"
Energy market deregulation positively affecting electricity sales price
Upside opportunity from efficiency gains
Stable dividend distribution capacity
Financial metrics (GEL millions)
GEORGIA
CAPITAL
Key highlights | 30 June 2019
GEL millions, unless otherwise noted
30-Jun-19
31-Dec-18
Change
LTM EBITDA
86
83
3.8%
Multiple applied
9.0
8.8
2.3%
Enterprise value
781
738
5.9%
Net debt
(321)
(307)
4.8%
Equity fair value
460
431
6.7%
Annual
Semiannually
2015
2016
2017
2018
1H18 1H19 Change
LTM ROIC1
9.7%
10.3%
-0.6ppt
Total revenue
119
127
135
149
69.8
74.5
6.7%
Of which, utility revenue
105
109
119
132
61.8
62.8
1.8%
Of which, energy revenue
9
10
10
9
4.7
8.2
74.5%
Performance track record
Of which, other revenue
5
8
6
81
3.4
3.5
2.9%
Total EBITDA
62
69
73
83
37.2
40.4
8.4%
EBITDA evolution (GEL m)
Cash flow from operations
52
54
70
82
30.6
44.7
46.2%
Maintenance CAPEX
21
22
23
23
12.4
11.1
-10.9%
+51%
Development CAPEX
14
31
114
148
77.1
27.9
-63.8%
Selected operating metrics
55
2014-2018
62
83
Electricity Consumption (KWh m)
2014-2018
-11%
69
73
+8.4%
millions except for connections
1H18
1H19 Change
Water Utility
Water sales (m³)
86.5
87.3
0.9%
Electricity consumption (kwh)
99.3
86.3
-13.1%
New connections
2,183
2,312
5.9%
Energy
Electricity generation (kwh)
184.0
168.5
-8.4%
Energy sales (kwh)
84.7
82.2
-2.9%
Electricity purchases (kwh)
21.2
18.0
-15.1%
40
37
iillalling
319
309
256 239
-13.1%
193
99
86
2014 2015 2016 2017 2018 1H18 1H19
2014 2015 2016 2017 2018 | 1H18
1H19
(1) ROIC is calculated as EBITDA less depreciation, divided by aggregate amount of total equity and borrowed funds.
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