Georgia Capital PLC Investment Overview
Listed
investments
Healthcare and pharmacy business (GHG) overview
http://ghg.com.ge/
GEORGIA
HEALTHCARE
GROUP
GEORGIA
CAPITAL
Investment rationale
"
Very low base: healthcare services spending per capita only US$ 324
Growing market: healthcare spending growth estimated at 8% CAGR 2019-2021
Value creation potential
"
High-growth potential driven by opportunity to develop medical tourism and Polyclinics (outpatient clinics)
Only integrated player in the region with significant cost advantage in scale and synergies
Well positioned to take advantage of the expected long term macroeconomic and structural growth drivers
Financial metrics (GEL millions)
2,000
1,000
Total Market CAGR 2011-2018 of 14%
Market opportunity
Total healthcare market (including healthcare services and pharmacy)
GEL million
6,000
5,000
4,000
3,000
Total Market CAGR 2019-
2021 of 8%
4,765
4,397
4,062
3,760
3,062 3,218
3,488
2,464
1,552 1,716
2,034
Annual
Semiannual
2011 2012 2013 2014 2015 2016 2017
Source: Frost & Sullivan analysis 2017
2018E 2019F 2020F 2021F
2015
2016 2017
2018
Revenue Gross
EBITDA, excl. IFRS 16
Profit before tax, excl. IFRS 16
246
426
748
850
419.5
56
78
108
132
24
40
46
54
62.6
28.5
1H18 1H19 Change
472.9
12.7%
74.8 19.4%
Stock price performance
Hospitals EBITDA margin, excl. IFRS 16
27.9%
30.4%
27.6%
26.3%
Pharmacy and distribution EBITDA margin, excl. IFRS 16
Operating cash flow
N/A
45
4.3%1 8.6%
42
58
10.1%
100
31.6 11.0% 450
26.1% 25.5% -0.6ppt
9.7% 10.5%
+0.8ppt
44.2
55.2 24.7% 300
GBP 1.70
400
350
IPO price
GBP 2.27
as of 14-Aug-2019
250
Selected operating metrics
200
150
100
Number of hospitals
Number of beds
Number of clinics
Number of pharmacies
Bed occupancy rate, referral hospitals²
EBITDA to cash conversion ratio
1H18
1H19
18
18
3,320
3,320
35
34
259
279
63.1%
65.6%
70.6%
73.8%
Nov-15
Jan-16-
Mar-16
May-16
Jul-16-
Sep-16-
Nov-16-
Jan-17-
Mar-17
May-17
Jul-17
Sep-17-
Nov-17-
Jan-18-
Mar-18
May-18
Jul-18
Sep-18
Nov-18-
Jan-19-
Return on invested capital
1H18
1H19
ROIC
10.4%
12.2%
ROIC adjusted³
13.7%
14.4%
1 FY16 includes only May-Dec GPC's results.
2 Adjusted to exclude the Tbilisi Referral Hospital and Regional Hospital; the calculation also excludes emergency beds.
3 Return on invested capital is adjusted to exclude newly launched hospitals and polyclinics that are in roll-out phase.
Mar-19-
May-19-
Jul-19
Page 35View entire presentation