Georgia Capital PLC Financial and Operational Report slide image

Georgia Capital PLC Financial and Operational Report

Private investment stage portfolio companies EXTERNALLY VALUED RENEWABLE ENERGY BUSINESS OVERVIEW INVESTMENT RATIONALE ■ Growth in electricity consumption has been ~3.3x more in TWhs than growth in electricity supply since 2010, resulting in increased deficit. ■Favorable supply-demand dynamics pushing the power prices up. Georgia is on track to the harmonization of the current energy market structure with EU directives leading to a liquid, competitive and transparent market. ■ Natural cash flow hedge with fully dollarised revenues. VALUE CREATION POTENTIAL Opportunity to establish a renewable energy platform with up to ~240MW operating capacity over the medium term and capitalize on favorable electricity market conditions. ■ Diversified portfolio of hydro and wind power plants with c.40%+ capacity factors, benefiting from favorable mix of merchant sales and government PPAs, providing high visibility and significant upsides. High margins and dollar-linked cash flows. Availability of competitive green funding from local and international capital markets for pipeline projects. ■ Stable dividend provider capacity in the medium term. OWNERSHIP ■ Renewable Energy is 100% owned by Georgia Capital. TWh TWh 20.0 ELECTRICITY CONSUMPTION 16.0 12.0 9.3 9.4 9.7 10.2 10.4 5.0% average consumption growth rate 12.6 12.8 11.9 11.0 13.8 14.2 12.2 8.4 8.0 4.0 0.0 00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Electricity consumption ELECTRICITY IMPORT AND EXPORT DYNAMICS (TWh) 2.0 0.6 0.0 -2.0 -4.0 -6.0 (3.9) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 I Electricity exports Electricity imports Generation of TPPS Deficit GEORGIA CAPITAL 21.5% of total consumption produced by gas-fired TPPS, 9.7% - imported. ■ 2022 electricity consumption up by 11.0% and 16.7% from 2019 and 2020 respectively. More than 30% of consumed electricity was either import or generated by gas-fired TPPs. ■In 2022 weighted average ESCO balancing price reached 55.5 US$/MWh, up by 12.7% y-o-y. ■ 2022 net electricity deficit stood at 3.9 TWh, whereas in 2010, electricity surplus was at 0.6 TWh 62 62
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