Investment and Growth Strategy
Private investment
stage portfolio
companies
EXTERNALLY VALUED
EDUCATION BUSINES OVERVIEW
INDUSTRY INVESTMENT RATIONALE
■
"
"
Highly fragmented general education
market with consolidation opportunity.
Market with strong growth potential.
Low dependency on the Government.
High resilience to crisis.
High quality and predictable revenue.
Strong profitability.
CAPEX efficient business.
TARGETING FOR 2025...
EBITDA margin
40%+
...THROUGH
REMAINING GCAP
NEW EQUITY
INVESTMENT
GEORGIA
CAPITAL
19
BUILT LEARNER
CAPACITY
22
EBITDA
50
US$ million
thousand
GEL million
"
Positive ESG impact.
Currently: 30%+
TOTAL REMAINING
48
INVESTMENT, in US$m
TOTAL BUILT LEARNER
CAPACITY, in thousands
21.9
TOTAL EBITDA¹, in GELM 50
VALUE CREATION POTENTIAL
Scaling up to capacity of 22,000 learners
through expansion plans in existing
schools, greenfield projects and M&As
by 2025.
2
Equity Value
GEL 0.5bln
Debt
16
Currently operational
6.9
Equity
32
campuses
Currently operational
campuses
21
Reinvestment
12
Secured pipeline projects 2.8
GCAP new equity
19
M&A
12.3
Strong organic growth at existing
Currently: GEL 175mln
investment
schools is expected to drive solid
Minority equity investment
2
growth in run-rate EBITDA, on top of
expansion plans, greenfield projects and
M&As by 2025.
Out of 22k capacity: 14.9k Affordable;
4.6k Midscale; 1.9k Premium; 0.6k
International
As of 2021-22 academic
year
Organic growth
Secured pipeline projects
12
9
9
M&A
20
ROIC
3
20%+
■
Eventual growth of potential EBITDA
with GEL 40m will be fulfilled through
building out eventual learner capacity,
reaching run-rate utilization and
sustaining revenue per learner growth.
Stable dividend provider capacity in the
medium terms.
OWNERSHIP
◉
Majority stakes (70%-90%) across
Currently: 20%+
Ramp-up of
•
4
new capacity
3-5 years
With new equity investment of US$ 19m GCAP can expand to 22k learner capacity and
generate GEL 50m EBITDA by 2025 through: (1) currently operational campuses (2)
secured pipeline projects and (3) M&A
Out of US$ 19m new equity investment, US$ 18m is attributable to M&A
In addition to US$ 19m new equity investment by GCAP, growth will be financed through,
reinvestments, debt, and equity contribution by minorities - total remaining investment for
Education business is US$ 48m
different schools.
Georgia Capital PLC | 1. Target EBITDA breakdown is presented based on the calculations at the end of 2021-2022 academic year.
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