OPEX Ratio Alignment & Portfolio Valuation 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 24
BUILT LEARNER
CAPACITY
22
EBITDA
GEORGIA
CAPITAL
50
USD million
thousand
GEL million
"
Positive ESG impact.
Currently: GEL 135mln
TOTAL REMAINING
INVESTMENT, in USDm
60
VALUE CREATION POTENTIAL
Scaling up to capacity of 22,000 learners
through expansion plans in existing
schools, greenfield projects and M&As
by 2025.
2
Equity Value
GEL 0.5bln
Debt
18
TOTAL BUILT LEARNER
CAPACITY, in thousands
Currently operational
21.9
TOTAL EBITDA, in GELM 50
5.1
Equity
Reinvestment
42
campuses
Currently operational
campuses
21
15
Secured pipeline projects 3.0
GCAP new equity
Strong organic growth at existing
investment
24
24
M&A
13.8
schools is expected to drive solid
Currently: 35%+
Minority equity investment
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 2021-22 academic
year
Organic growth
Secured pipeline projects
12
9
9
M&A
20
ROIC
20
3
20%+
■
Eventual growth of potential EBITDA
with GEL 40m will be fulfilled through
building out eventual learner capacity,
reaching run-rate utilization and
sustaining revenue per learner growth.
Stable dividend provider capacity in the
medium terms.
OWNERSHIP
"
Majority stakes (70%-90%) across
different schools.
Currently: 20%+
Ramp-up of
4
new capacity
3-5 years
•
With new equity investment of USD 24m GCAP can expand to 22k learner capacity and
generate GEL 50m EBITDA by 2025 through: (1) currently operational campuses (2)
secured pipeline projects and (3) M&A
Out of USD 24m new equity investment, USD 21m is attributable to M&A and USD 3m is
attributable to investments in secured pipeline projects with operational schools
In addition to USD 24m new equity investment by GCAP, growth will be financed through,
reinvestments, debt, and equity contribution by minorities - total remaining investment for
Education business is USD 60m
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