Investor Presentaiton
Private investment
stage portfolio
companies
INTERNALLY VALUED
EDUCATION BUSINES OVERVIEW
GEORGIA
CAPITAL
INDUSTRY INVESTMENT RATIONALE
Highly fragmented general education
market with consolidation opportunity.
Market with strong growth potential.
High quality revenue with high margins.
Strong and predictable cash flow streams.
High trading multiples.
Asset light strategy.
VALUE CREATION POTENTIAL
"
Scaling up to capacity of 21,000
learners through expansion plans in
existing schools and M&As by 2025.
Strong organic growth at existing
schools is expected to drive solid
growth in run-rate EBITDA, on top
of expansion plans and M&As.
Stable dividend provider capacity in
the medium terms.
OWNERSHIP
Majority stakes (70%-90%) across
different schools.
STRONG PLATFORM TO FACILITATE GROWTH AND SCALE TO BECOME THE LEADING EDUCATION PLAYER WITH c. 21,000 LEARNERS BY 2025
TARGETING FOR 2025...
...THROUGH
Equity value
GEL 0.5b
Capacity (# of learners)
EBITDA margin
40%+
Maintain ROIC
20%+
Ramp-up for new
capacity (reaching
80%+ utilization)
3-5 years
Utilization on operational campuses
EBITDA
GCAP new equity investment
ROIC
Investment per learner capacity
in affordable segment
REMAINING
GCAP NEW
EQUITY
INVESTMENT
BY 2025
Existing partner schools with expansion
M&A
80% affordable
& 20% midscale
NOW
5,060
62%
GEL 9.5mln¹
USD 19.0mln²
20%+
GEL 7,200
plans
50+
13
USD million
TOTAL
EBITDA
BY 2025
GEL million
By 2025
7,200
85%
GEL 34mln
USD 2.4mln
20%+
GEL 7,000
CAPACITY
BY 2025
By 2025
13,800
80%-85%
GEL 16mln
USD 10.2mln
20%+
GEL 6,200
21K
learners
Of which, 7,200 (existing schools)
Of which, 13,800 (M&As)
➤ With new equity investment of USD 2.6mln, GCAP can expand to 7,200 learner capacity and generate GEL 34mln
EBITDA by 2025 on secured real estate locations with existing partner schools
➤ Capacity of partner school campuses is at 5,060 learners (up from 2,810 learners y-o-y) - the launch of new campuses and
acquisition of 1,200 learner capacity school in affordable segment. Due to low utilization rate on new campuses, utilization
on operational campuses decreased to 62% (down from 93% y-o-y). We expect utilization rate to return to 80%+
➤ USD 2.4mln new equity investment for expansion plans with existing partner schools is net of education business
reinvestment of USD 5.4mln and net of in-kind contribution of USD 5.5mln (assets already on GCAP Balance Sheet)
➤ USD 10.2mln new equity investment for M&A pipeline is net of education business reinvestment of USD 15.2mln
Georgia Capital PLC | 1. EBITDA for 2020-21 academic year. 2. Investment is calculated at 3.2 USD/GEL exchange rate.
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