Portfolio Valuation and Ameriabank Acquisition Update slide image

Portfolio Valuation and Ameriabank Acquisition Update

Private investment stage portfolio companies EXTERNALLY VALUED EDUCATION BUSINESS OVERVIEW (CONT'D) GEORGIA CAPITAL Operating highlights As of 31-Dec-23 PRIVATE K-12 MARKET IN GEORGIA Number of learners in private K-12 market Turnover of private K-12 market Capacity utilization, 80.2% 12% CAGR 14-19 Change (y-o-y) +6.8 ppts 10.4% 10.7% 10.5% 10.0% 9.9% 10.1% 10.2% 10.0% 9.7% 9.7% Number of learners 5,827 10% CAGR 20-23 4.5 4.7 4.2 3.6 3.7 3.8 3.2 2.9 2.6 2.7 Change (y-o-y) +40.0% Learner to teacher 7.9x 53.9 55.4 56.1 57.6 60.8 63.2 61.9 60.3 63.5 66.4 158 177 192 217 257 280 281 298 343 375 ratio 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E Change (y-o-y) -0.8x I Number of private learners, '000 % of total number of learners I Total revenue, GEL mln Revenue per learner, GEL '000 Source: Ministry of Education of Georgia, G&T, GCAP estimates Financial 4Q23 FY23 Total spending on K-12 education, latest highlights EBITDA GEL 6.4m GEL 14.4m 3.6% 3.9% 4.4% 4.3% 3.5% 3.7% 4.2% 4.4% 3.8% 3.7% 4.1% 3.6% 3.7% 3.3% 3.6% 2.9% Change (y-o-y) 26.9% 6.0% 2.1% EBITDA margin 33.1% 26.0% Change (y-o-y) -3.8 ppts -6.0 ppts US$ '000 Cash flow from GEL (0.1)m GEL 17.4m operations 14.8 13.4 12.5 11.3 10.5 10.2 9.9 9.7 9.4 9.2 8.6 7.9 7.6 7.5 7.0 4.5 0.8 Change (y-o-y) NMF +5.5% Net debt GEL 20.2m GEL 20.2m Austria Germany UK France Change (y-o-y) +26.1% +26.1% Italy Portugal Slovenia Czech Spain Total spending per learner Estonia Poland Hungary Slovakia Lithuania Latvia Turkey Georgia, Demand on private education is trending globally, growth attributable to regions with lower spending on Education Source: OECD, Ministry of Finance of Georgia 2022 Total spending as % of GDP Georgia Capital PLC | 1. Excluding kindergarten learners. 64
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