Investor Presentaiton
Water utility and energy business (GGU) overview
Key facts
Utility
Natural monopoly
■Stable cash collection rates
■Growing dividend payment capacity
■RAB-based tariff methodology
WACC set at 15.99% by regulator
Energy
Untapped energy market with potential for significant growth
Low per capita power usage
Hydro Power Plants are cheap to build
Wind Power Plants generate large portion of annual production during winter, when Georgia faces deficit
Targeting 1,000MW capacity over the next 5 years
GWh
22,000
CAGR: 5.4%
17,000
12,000
7,000
2,000
°
1
Market opportunity
6
00
0
O
Generation, actual
GEORGIA
CAPITAL
Consumption: 5%
6.1
Twh
Generation, forecast
Dividend record (GEL m)
13
28
Financial metrics (GEL m)
Annual
Quarterly
2016
2017
2015
2016
2017
1Q17
1Q18
Total revenue*
118
127
135
28.6
32.3
Of which, u
EBITDA 2014-2020E (GEL m)
, utility revenue
104
117
125
27.4
30.2
Of which,
hich, energy revenue
18
15
14
2.2
3.1
Total EBITDA
62
68
71
14.4
14.6
Total
EBITDA
55
62
68
71
87
116
122
Of which, utility EBITDA
46
57
62
13.1
12.8
CAGR:
Of which, energy EBITDA
80
16
11
9
1.3
1.7
80%
59%
59%
14.1%
51%
52%
52%
55%
60
45%
Selected operating metrics
60%
40
70
70
75
40%
57
62
1Q17
4Q17
1Q18
20
44
46
47
20%
11
16
11
9
17
Water sales (m³)
35,321
36,825
35,682
0%
2014A
2015A
2016A
2017A
2018E
2019E
2020E
Electricity generation (kwh thousand)
64,711
85,292
86,671
Electricity consumption (kwh thousand)
72,951
68,442
Utility EBITDA
Energy EBITDA
EBITDA margin
61,065
New connections
385
843
891
* Includes eliminations
Exit Strategy - IPO in 2020-2021
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