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
STRONG PLATFORM TO FACILITATE GROWTH AND SCALE TO BECOME THE LEADING EDUCATION PLAYER WITH c. 21,000 LEARNERS BY 2025
TARGETING FOR 2025...
.THROUGH
Expansion plans with existing partner schools
By 2025
NOW
2,810
90%
Equity value
GEL 0.5b
Capacity (# of learners)
Utilization on operational campuses
EBITDA
EBITDA margin
GCAP new equity investment
ROIC
USD 17.5mln²
20%+
40%+
Maintain ROIC
20%+
Majority stakes (70%-90%) across
different schools.
Ramp-up for new
capacity (reaching
80%+ utilization)
3-5 years
Investment per learner capacity
in affordable segment
M&A
80% affordable
GEL 10mln1
6,000
85%
GEL 32mln
USD 2.6mln
20%+
GEL 7,000
& 20% midscale
By 2025
15,000
80%-85%
GEL 18mln
USD 11.4mln
20%+
GEL 6,200
GEL 7,200
REMAINING GCAP
NEW EQUITY
14
INVESTMENT
USD million
TOTAL EBITDA
BY 2025
50+
GEL million
BY 2025
CAPACITY
BY 2025
21K
learners
Of which, 6,000 (existing schools)
Of which, 15,000 (M&As)
➤ With new equity investment of USD 2.6mln, GCAP can expand to 6,000 learner capacity and generate GEL 32mln
EBITDA by 2025 on secured real estate locations with existing partner schools
➤ USD 2.6mln new equity investment for expansion plans with existing partner schools is net of education business
reinvestment of USD 5.6mln and net of in-kind contribution of USD 5.5mln (assets already on GCAP Balance Sheet)
➤ USD 11.4mln new equity investment for M&A pipeline is net of education business reinvestment of USD 15.2mln
Georgia Capital PLC 1. EBITDA GEL 10mln is an estimate for 2020-21 academic year 2. Investment is calculated at 3.2 USD/GEL exchange rate.
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