Portfolio Valuation and Ameriabank Acquisition Update
GEORGIA
CAPITAL
Private investment
stage portfolio
companies
EXTERNALLY VALUED
"
EDUCATION BUSINESS OVERVIEW
CURRENT OPERATIONAL METRICS AND TARGETS FOR 2025
Currently
14
Targets for 2025
50
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.
Positive ESG impact.
VALUE CREATION POTENTIAL
■
-
Scaling up to capacity of 22,000 learners through
expansion plans in existing schools, greenfield
projects 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, greenfield projects and
M&As by 2025.
Eventual growth of potential EBITDA 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 different schools.
EBITDA (GEL million)
EBITDA margin
Equity value
ROIC
Built learner capacity
Ramp-up of new capacity
3-5 years
26%
40%+
GEL 189 million
GEL 500 million
15%+
20%+
7,270
22,000
Remaining GCAP New Equity Investment
US$ 18 million
WITH NEW EQUITY INVESTMENT OF US$ 18 MILLION GCAP CAN EXPAND TO 22K LEARNER CAPACITY
AND GENERATE GEL 50 MILLION EBITDA BY 2025 THROUGH: (1) CURRENTLY OPERATIONAL CAMPUSES,
(2) SECURED PIPELINE PROJECTS AND (3) M&A
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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