Georgia Capital PLC Announces First Half 2018 Financial Results

Georgia Capital PLC ("the Group") has published today its financial results for the first half of 2018. The results announcement together with the supplementary financial information is available on the Group’s website at http://georgiacapital.ge/ir/financial-results. Georgia Capital PLC 1H18 results presentation is available on the Group’s website at http://georgiacapital.ge/ir/presentations. An investor/analyst conference call, organised by the Group, will be held on 20 August 2018, at 15:00 UK / 16:00 CET / 10:00 U.S Eastern Time. The duration of the call will be 60 minutes and will consist of a 15-minute update and a 45-minute Q&A session.

Management Commentary

"The first half of 2018 marked a significant milestone for the Group as an independent publicly listed investment company following the completion of the demerger from BGEO Group PLC. As a result, Georgia Capital was admitted to the premium listing segment of the London Stock Exchange on 29 May 2018, under the ticker ‘CGEO’. The demerger allows Georgia Capital to capture investment opportunities in the young and fast evolving Georgian economy, both more proactively and in a more disciplined and focused manner. Georgia Capital aims to take advantage of being the only institutional investor in the country, where access to capital in a small frontier economy is limited, and many corporate sectors are still forming. Georgia Capital’s fundamental strength is its ability to institutionalise portfolio companies as it improves their underlying operational results. Its ability to access capital and attract and develop high quality talent is the foundation that enables it to execute on its strategy. The Georgia Capital management team, under the BGEO Group, has a track record of executing more than 40 acquisitions in banking, insurance, healthcare, utilities, retail, FMCG and other sectors. It has successfully integrated businesses in many sectors, while delivering growth and extracting targeted synergies. Considering the above, we aim to deliver ten times total shareholder returns over the next ten years.”

1H18 performance highlights

NAV per share increased by 19% in the first half of 2018 to GEL 46 at 30 June 2018, as total NAV reached GEL 1.7 billion. Net income of the Group under investment company basis in 1H18 was GEL 71 million, largely driven by strong portfolio performance. All late stage private portfolio companies demonstrated positive performance in their recurring businesses, while early stage businesses continued development to the next levels of their greenfield lifecycle. ROI stood at respectable 26.7%.

During the first half of 2018 we invested GEL 33 million across the Beverages and Renewable Energy businesses in bolt-on acquisitions to increase scale and make progress towards the established business goals, respectively.

In March, Georgia Capital issued its inaugural international US$ 300 million 6.125% corporate bonds due 2024, which was the first international bond offering by a non-banking, non-state-backed company from Georgia. The bond proceeds allow us to maintain material liquid funds for deployment in new opportunities.

Conference call details

This announcement contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Georgia Capital PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct.

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