Georgia Capital PLC Announces 1H19 Financial Results

Georgia Capital PLC ("the Group") has published today its first half 2019 financial results. The results announcement together with the supplementary financial information is available on the Group’s website at https://georgiacapital.ge/ir/financial-results. Georgia Capital PLC 1H19 results presentations are available on the Group’s website at https://georgiacapital.ge/ir/presentations. An investor/analyst conference call, organised by the Group, will be held today 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

"Georgia Capital has delivered an excellent performance in the first half of 2019, as our NAV per share increased by 21.6% to GEL 54 at 30 June 2019. This strong growth was a result of a 14.8% increase in NAV to GEL 1.9 billion and a 5.6% reduction in outstanding shares during 1H19. The NAV growth reflects GEL 347 million value creation across the portfolio businesses, where GEL 246 million value was generated by the listed portfolio businesses and GEL 101 million value was provided by our private portfolio businesses. The decrease in share count was driven by our share buyback programme and the subsequent cancellation of 2 million Georgia Capital shares and transfer of 0.7 million shares to the management trust. At 30 June 2019, our firepower available for deployment remained high at GEL 556 million."

1H19 performance highlights

• NAV per share up 21.6% to GEL 53.9 on the back of GEL 347 million value creation and decrease in number of shares outstanding by 2.1 million shares
  • Listed assets contributed GEL 246 million to value creation, while private assets contributed GEL 101 million
  • GEL 60 million share buybacks, while 2 million were cancelled and 0.7 million transferred to management trust in 1H19

• GEL 44 million capital allocated across early stage and pipeline portfolio businesses in 1H19
  • Acquired an 80% stake in the second largest auto service industry player, Amboli
  • Entered the high growth digital services industry by acquiring a 60% stake in the leading digital marketing agency, Redberry
  • The beer business acquired the fifth largest Georgian beverages brand, Kazbegi, with 5% market share

• Since 30 June 2019, invested GEL 41 million to secure high quality partnerships with three top schools across premium, mid-level and affordable private education segments with an aim to grow the existing capacity from 2,530 to 11,750 learners by 2024
• GEL 556 million firepower available for deployment at 30 June 2019 subject to rigorous 360-degree analysis

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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