Half Year 2026 Georgia Capital PLC Earnings Call

August 4, 2026

Speaker #2: You have joined the meeting as an attendee and will be muted throughout the meeting.

Irakli Gilauri: Our very strong results. Let me summarize the agenda for today. I will talk about the overall performance of H1 and Q2 and H1 2026. We will turn to our CEOs of our large portfolio companies, and Tornike, Giorgi, and Irakli, CEOs of respective pharmacy, insurance, and the healthcare businesses, will talk about their results. Giorgi, our CFO, will talk about the valuations of our portfolio companies, and he will talk about liquidity and dividend income outlook. I will do, as traditionally, a wrap-up followed by Q&A session. Let me start with the highlights first. As you all know, our Q1 NAV was strong, up 13% to around more than GBP 50.

Speaker #3: Our very strong results. So, let me summarize the agenda for today. I will talk about the overall performance of First Health in Q2 and First Health.

Speaker #3: 2026. Then we will turn to our CEOs of our large portfolio companies, and Tornike, Georgi, and Irakli will be the CEOs of the respective pharmacy, insurance, and healthcare businesses.

Speaker #3: We'll talk about their results. Then Georgi, our CFO, will talk about the valuations of our portfolio companies. And then he will talk about liquidity and the dividend income outlook.

Speaker #3: As traditionally, I will do a wrap-up followed by a Q&A session. So let me start with the highlights first. As you all know, our Q1 NAV was strong, up 13% to around £50—more than £50.

Speaker #3: So it was driven primarily by the Lion Finance Group share price increase and portfolio private portfolio companies great operating results. Which basically the recorded almost record high revenue growth of nearly 20%.

Irakli Gilauri: It was driven primarily by the Lion Finance Group share price increase and prior portfolio companies' great operating results, which basically recorded almost record-high revenue growth of nearly 20%. Basically, we are observing acceleration of the revenue growth. We are also pleased to dispose our housing business, which basically decreased the leverage on our other portfolio companies significantly. The debt to EBITDA of our other portfolio companies went to nearly 4x to 2x. Our deleveraging story continues, and I will talk about the leverage later in the presentation because it is one of the important milestones which we are achieving, meaning deleveraging not only the holdco but also portfolio companies. Again, at the NCC ratio here, we have a big improvement. It went to -3%.

Irakli Gilauri: It was driven primarily by the Lion Finance Group share price increase and prior portfolio companies' great operating results, which basically recorded almost record-high revenue growth of nearly 20%. Basically, we are observing acceleration of the revenue growth. We are also pleased to dispose our housing business, which basically decreased the leverage on our other portfolio companies significantly. The debt to EBITDA of our other portfolio companies went to nearly 4x to 2x. Our deleveraging story continues, and I will talk about the leverage later in the presentation because it is one of the important milestones which we are achieving, meaning deleveraging not only the HoldCo but also portfolio companies. Again, at the NCC ratio here, we have a big improvement. It went to -3%.

Speaker #3: And basically, we are observing acceleration of the revenue growth. We are also pleased to dispose of our housing business, which basically decreased the leverage on our other portfolio companies.

Speaker #3: Significantly. So the debt to EBITDA of our other portfolio companies were to nearly four times to two times. So our deleveraging story continues. And I will talk about the leverage later in the presentation because it's one of the important milestones which we are achieving meaning deleveraging not only the holdco but also portfolio companies.

Speaker #3: Again, the NCC ratio—here, we have a big improvement. It went to negative, nearly -3%. So, we are getting an upgrade, obviously, by the S&P credit rating to double B.

Irakli Gilauri: We are getting upgrade, obviously, by the S&P credit rating to BB, which is basically ceiling for us as the sovereign is rated at BB. We are at the same credit rating. Another big milestone which we achieved is completion of the GEL 700 million of capital return program. We will be doing the last pieces of retiring the debt of $50 million, which we already called, and I think by end of the month, we will have 0 debt on our holdco company, as well as we will be completing the last portion of the buybacks. In light of this, we are announcing a new program. We call it capital allocation program, not capital return program. It is a GEL 1 billion, and I will talk about later why this name is important for our GEL 1 billion capital allocation program.

Speaker #3: Which is basically ceiling for us as the sovereigns rated at double B. So we are at the same credit rating. The another another big milestone which we achieved is completion of the 700 million lari of capital return program.

Speaker #3: We have a we we are we will be doing the last pieces of retiring the debt of 50 million dollars which we already called and I think that by end of the month we will have a zero debt at our holdco company.

Speaker #3: As well as we will be completing the the last portion of the buybacks. So in light of this we are announcing new program we call it capital allocation program not capital return program it's a 1 billion lari and I will talk about later why we why this name is important.

Speaker #3: For our $1 billion capital allocation program, the new $50 million buyback will be launched as soon as we finish the previous buyback program, which we expect to complete in Q4. We plan to start the $50 million buyback and cancellation program at that time.

Irakli Gilauri: The new $50 million buyback, we will launch it as soon as we finish the previous buyback program, which we expect in Q4 to start the $50 million buyback and cancellation program. On the next slide, you see a breakdown of our NAV growth. You see that Lion Finance share price increase contributed to nearly 9.5% growth. Around 4.5% contribution is due to our operating performance. Buybacks and operating expense offsetting each other at 0.3 percentage point. Liquidity management and FX contributed a little bit negatively of -0.9%. This way, we arrived at 13% growth in the quarter of our NAV. We are very pleased with the operating performance of our private portfolio companies, and CEOs will talk about the performance later on.

Speaker #3: So on the next slide you see a breakdown of our NAV growth. You see that Lion Finance share price increase contributed to nearly 9.5% growth.

Speaker #3: There are around 4.5% contribution is from our operate due to our operating performance. Buybacks and operating expense of setting each other at 0.3% each point.

Speaker #3: And liquidity was liquidity management and effects contributed a little bit negatively of minus 0.9%. So this way we arrive to 13% growth in the quarter of our NAV.

Speaker #3: We are very pleased with the operating performance of our private portfolio companies. And CEOs will talk about the performance later on. Here is another slide which we are pleased with as well.

Irakli Gilauri: Here is another slide which we are pleased with as well, as we have achieved a 20% CAGR in NAV per share growth since inception, since 2018. Last three years is nearly 34%, and last five years at 26%. 26% is our aspiration, in general, to have a CAGR of 26%. Last five years, we've been doing better than in last eight years or so. If we look at the NCC overview, the decrease in NCC ratio mainly was contributed in increasing cash balances as we trimmed some of the Lion Finance Group holding due to our PPIC management. That was the main contributor of leading to the negative territory of NCC ratio. Our firepower has increased dramatically. NCC ratio development over time. You see we were as high as 42.5% of NCC ratio. Now we are at negative.

Speaker #3: As we have achieved the 20% CAGR in NAV per share growth since inception. Since 2018. Last three years is nearly 34% and last five years 26%.

Speaker #3: Last I mean 26% is our aspiration in general to to have a CAGR of 26%. So last five years we've been doing better than in in last eight years or so.

Speaker #3: If we look at the NCC overview, you know the decrease in NCC ratio was mainly contributed by the increase in cash balances, as we trimmed some of the Lion Finance Group holding due to our PIFIC management.

Speaker #3: And that was the main contributor leading to the negative territory of the NCC ratio. So, our firepower has been increased dramatically.

Speaker #3: NCC ratio developed over time you see a we were as high as 42.5% of NCC ratio now we are at negative our over this cycle target is around 10%.

Irakli Gilauri: Our over the cycle target is around 10%, so we are well below the target. Leverage is important. I talked about that, the leveraging process, what we've been undertaking. Not only we are at now this zero leverage at GCAP level, but our portfolio companies, large portfolio companies Sorry, our overall private portfolio businesses went down from five times EBITDA in December 2019 to 2.1 times. It is a significant deleveraging we have been undertaking in past years. As I said that we are now at investment mode again, with strong cash balance. No leverage at GCAP level, and very low leverage at our portfolio company level. On individual companies, we are seeing here a decrease again. Pharmacy is 0.8. Healthcare services a little bit higher at 3.5, but it came down from high of five times. And insurance is obviously at low level.

Speaker #3: So where we are well below the target. Leverage is important I talked about that the leveraging process what we've been undertaking not only we are at now this zero leverage at GCAP level but our portfolio companies large portfolio companies sorry overall private portfolio businesses went down from five times EBITDA in December 2019 to 2.1 times.

Speaker #3: So it's a significant deleveraging we have been undertaking past years. And as I said that we are now at investment mode again. With with strong cash balance.

Speaker #3: No leverages GCAP level. And very low leverage at our portfolio company level. On individual companies we are we are seeing here decrease again pharmacy at 0.8 healthcare services a little bit higher 3.5 but it came down from high of five times and insurance is obviously so at low level it got leverage from due to the acquisition of the RD our healthcare high-end healthcare insurance company.

Irakli Gilauri: It got leverage due to the acquisition of the RD, our high-end healthcare insurance company. Again, the next slide or slide 10, we have a share buyback and cancellation program. 35% of our share capital we retired, which I'm pleased that we've been investing at this pace and at this rate. We have done nearly $300 million of buybacks during this year and bought back nearly 17 million shares repurchased. If you look at the average price, we have been buying at very low price, thanks to our colleagues. Now, to have a just brief look at GEL 700 million capital return program. You see repurchase of shares. You see a redemption of the bond, $150 million bond, and we only have a GEL 28 million of buybacks. It currently is ongoing, and that's what we'll be spending in Q3, and buying back more shares.

Speaker #3: And again the next slide or slide 10 we have a share buyback and cancellation program. 30 5% of our share capital we retired which is a which I'm I'm pleasant I'm pleased that we've been investing at this pace and at this rate.

Speaker #3: We have done a nearly 300 million dollar of buybacks during this year and bought back nearly 17 million shares repurchased and if you look at the the the price average price we have been buying at very low price thanks to our colleagues.

Speaker #3: Now the the to have a just brief look at 700 million lari capital return program you see a repurchase of shares you see a redemption of the the bond 150 million dollar bond and we only have a 28 million lari of buybacks is currently is ongoing and that's what we'll be spending in Q3.

Speaker #3: And and buying back more shares. Now if you look at the cash balances and cash generation sorry the cash generation had cash balance. So we after the trimming the LFG we are at 500 lari cash and we will need around 200 million lari to fully retire our debt and the pro forma will be around 310 million lari of of cash balance.

Irakli Gilauri: If you look at the cash balances and cash generation, sorry, the cash generation and cash balance. After the trimming the LFG, we are at GEL 500 cash, and we will need around GEL 200 million to fully retire our debt. The pro forma will be around GEL 310 million of cash balance. Let's talk about the interesting parts, GEL 1 billion capital allocation program. We say that capital allocation program consists not only buybacks, dividends, and de-leveraging, but also the investments. We are guiding that we will be investing over time, and it will be investment in Georgia and Armenia. Out of GEL 1 billion, at least half a billion lari will be either on buybacks or dividends. It will be a capital repatriation, basically, half a billion lari.

Speaker #3: Now let's talk about the the interesting parts billion lari capital allocation program. Here we say that capital allocation program consists not only buybacks dividends and deleveraging but but also the investments.

Speaker #3: And we are guiding that we will be investing over time and it will be a investment in Georgia and Armenia. Out of 1 billion lari half of at least half a billion lari will be either on buybacks or dividends.

Speaker #3: So it will be a capital repatriation basically half a billion lari. Another half a billion lari if we don't invest for some reason it could happen.

Irakli Gilauri: Another half a billion lari, if we don't invest for some reason, it could happen, we are still committing to do a buyback or dividends there. De-leveraging won't happen because we don't have any more de-leveraging. Basically, what we are saying that GEL 1 billion by end of 2029, it will be deployed, either at least buybacks and dividends, and another half in investment. If we don't invest, we'll do a buyback investment. Again, there will be more investments than half a billion lari. That half a billion lari, more than half a billion lari investments over the next three years may come from the sale of different assets, what we have in portfolio in investing. Mainly this GEL 1 billion of investment, we want to fund mainly through the cash balance, what we have, and the cash generation, which we got to make for next three years.

Speaker #3: We are still committing to to do a buyback or dividends there. I mean deleveraging what happened because we don't have anymore deleveraging. But basically what we are saying that 1 billion lari by end of 2029 2029 will it will be deployed either either at least by buybacks and and dividends and another half in investments if we don't invest we'll do a buyback investments.

Speaker #3: Again, there will be more investments than half a billion lari, and that half a billion lari—more than half a billion lari—investments over the next three years may come from the sale of different assets that we have in our portfolio in investing.

Speaker #3: Mainly this billion lari of investment we want to fund mainly through the cash balance what we have and the cash generation what we got to make for next three years.

Irakli Gilauri: We will need some money from the sell-downs, et cetera, but basically, the main source of cash will be from cash generation, free cash flow generation at GCAP level, and the current cash balance. Macro is firing and also lingers again. GDP growth is 7% in Q2. Amazing GDP growth we have in place. We have a current account deficit is also narrowing. If you look at the Q1 last year and Q1 this year, it halved basically. You see huge interventions by National Bank. National Bank is buying massively dollars. It's like $1.5 billion was bought in Q2. We have achieved $7 billion of reserves, which is unimaginable, basically. It's unbelievable how much foreign currency is generated by the National Bank. On interest rates, we are flat around at 8.24. Headline inflation is 5.8%.

Speaker #3: There will be—we will need some money from the sell-downs, etc. But basically, the main source of cash will be from cash generation, free cash flow generation at the GCAP level, and the current cash balance.

Speaker #3: Now macro is firing on on OC lenders again. GDP growth is 7% in Q2. Amazing GDP growth. We have we have in place. We have a current account deficit also narrowing.

Speaker #3: If you look at the Q1 last year and Q1 this year it halved basically. And you see a huge interventions by National Bank. National Bank is is buying massively dollars.

Speaker #3: It's like a 1.5 billion was bought in Q2. I mean we have achieved 7 billion dollars of reserves which is unimaginable basically. It's a it's it's unbelievable how much foreign currency is generated by the National Bank.

Speaker #3: On interest rates, we are flat at around 8.24%. Headline—sorry, headline inflation is 5.8%. 8.25% is the target; it is the monetary policy rate. And core inflation is 3.5%.

Irakli Gilauri: On interest rates, we are flat around at 8.24. Headline inflation is 5.8%. 8.25% is the target, is the monetary policy rate. Core inflation is 3.5%. At the rate of growth, what we are going to grow with the economy, I think it's still a good result regarding the inflation. Let's talk about the aggregate results of our portfolio companies. As I said, our CEOs will talk about the individual companies. Q2, 19.1% revenue growth. H1, 16.4% revenue growth. You see the acceleration of the revenue growth. Aggregate EBITDA, Q1, 21% growth. H1, 24% growth in EBITDA. If you look at the next slide 17, we have here a comparison of our revenue growth and quarterly nominal GDP growth. As you see, our revenue growth is accelerating. It was 14%, 13% around, and went to 19%.

Irakli Gilauri: 8.25% is the target, is the monetary policy rate. Core inflation is 3.5%. At the rate of growth, what we are going to grow with the economy, I think it's still a good result regarding the inflation. Let's talk about the aggregate results of our portfolio companies. As I said, our CEOs will talk about the individual companies. Q2, 19.1% revenue growth. H1, 16.4% revenue growth. You see the acceleration of the revenue growth. Aggregate EBITDA, Q1, 21% growth. H1, 24% growth in EBITDA. If you look at the next slide 17, we have here a comparison of our revenue growth and quarterly nominal GDP growth. As you see, our revenue growth is accelerating. It was 14%, 13% around, and went to 19%.

Speaker #3: At the rate of gross wealth we are going growing the economy I think it's still a a a good result regarding the inflation. Now let's talk about the aggregate results of our portfolio companies and as I said that our CEOs will talk about the individual companies.

Speaker #3: Q2 19.1% revenue growth first half 16.4% revenue growth as you see the acceleration of the revenue growth. Aggregate EBITDA you know Q1 21% growth first half 24% growth in EBITDA.

Speaker #3: Now if you look at the next slide or slide 17 we are we have here a comparison of our revenue growth and quarterly GDP nominal GDP growth.

Speaker #3: So as you see our revenue growth is accelerating it was 14 13% around and went to 19% and the gap between the nominal GDP growth and the our revenue growth is increasing.

Irakli Gilauri: The gap between the nominal GDP growth and our revenue growth is increasing, which really speaks high of our CEOs of our portfolio companies when you can grow faster than the nominal GDP. In Q2, that decoupling was nearly 800 bps over the nominal GDP growth rate. Now on the next slide, the cash balances. Cash balances increased. First of all, operating cash increased by 41% in Q2, and in H1 it was 36%. Year-over-year, cash balance increased by 21%. Very strong cash generation. I am really pleased that the growth of the net operating cash flow is higher than EBITDA growth rate, which means that cash conversion is more than 100% on aggregate level. Now, let me pass the stage to our Chief Pharmacist, Tornike, who is our CEO for retail pharmacy business. He used to be a chief brewmaster.

Speaker #3: Which is the which really speaks high of the our CEOs of our portfolio companies. I mean the when you can grow faster than the nominal GDP.

Speaker #3: And and in Q in Q2 that growth was that decoupling was nearly 800 bips over the GDP nominal GDP growth rate. Now on the next slide the cash balance is so cash balance is increased by first of all operating cash increased by 41%.

Speaker #3: And in Q2 and the first half, it was 36%. And year over year, cash balance increased by 21%. So, very strong cash generation. I'm really pleased that the growth of the net operating cash flow is higher than the EBITDA growth rate.

Irakli Gilauri: Year-over-year, cash balance increased by 21%. Very strong cash generation. I am really pleased that the growth of the net operating cash flow is higher than EBITDA growth rate, which means that cash conversion is more than 100% on aggregate level. Now, let me pass the stage to our Chief Pharmacist, Tornike, who is our CEO for retail pharmacy business. He used to be a chief brewmaster. Now he was re-qualified to the pharmacy. Tornike?

Speaker #3: It means that cash conversion is more than 100% on aggregate level. Now let me pass the stage to our chief pharmacists Tornike who is our CEO for retail pharmacy business.

Speaker #3: He used to be a chief brewmaster; now he was requalified to the pharmacy. Tornike?

Irakli Gilauri: Now he was re-qualified to the pharmacy. Tornike?

Speaker #2: Thank you Jacqueline. And hello hello everyone. I'm pleased to talk and walk you through a brief update on the performance of our retail pharmacy business for the second quarter of 2026.

Tornike Gogichaishvili: Thank you, Irakli. Hello, everyone. I am pleased to talk and walk you through a brief update on the performance of our retail pharmacy business for Q2 2026. Another quarter of strong momentum with the solid results across all key metrics. Let me say a few words regarding our business. We remain the largest player in Georgia's retail pharmacy market, holding around 34% market share in organized trade. Retail continues to be our core business, generating around 85% of total revenue. We operate two well-positioned pharmacy brands, GPC, focused on the high-end segment, and Farmadepot, serving the mass market. Alongside this, we run two franchise brands, The Body Shop and Alain Afflelou Optics, and maintain a presence in Armenia and Azerbaijan. During Q2, we grew our network by 6 pharmacies, including 1 in Armenia, mostly through cost-efficient formats requiring limited capital investment.

Tornike Nikolaishvili: Thank you, Irakli. Hello, everyone. I am pleased to talk and walk you through a brief update on the performance of our retail pharmacy business for Q2 2026. Another quarter of strong momentum with the solid results across all key metrics. Let me say a few words regarding our business. We remain the largest player in Georgia's retail pharmacy market, holding around 34% market share in organized trade. Retail continues to be our core business, generating around 85% of total revenue.

Speaker #2: Another quarter of strong momentum with the solid results across all key metrics. Let me say a few words regarding our business. We remain the largest player in Georgia's retail pharmacy market holding around 34% market share in organized trade.

Speaker #2: Retail continues to be our core business generating around 85% of total revenue. We operate two well-positioned pharmacy brands GPC focused on the high-end segment and pharma depot serving the mass market.

Tornike Nikolaishvili: We operate two well-positioned pharmacy brands, GPC, focused on the high-end segment, and Farmadepot, serving the mass market. Alongside this, we run two franchise brands, The Body Shop and Alain Afflelou Optics, and maintain a presence in Armenia and Azerbaijan. During Q2, we grew our network by 6 pharmacies, including 1 in Armenia, mostly through cost-efficient formats requiring limited capital investment.

Speaker #2: Alongside this, we run two franchise brands: The Body Shop and Alanaflu Optics, and maintain a presence in Armenia and Azerbaijan. During the second quarter, we grew our network by six pharmacies, including one in Armenia, mostly through cost-efficient formats requiring limited capital investment.

Tornike Gogichaishvili: As of June 2026, our network comprises of 464 pharmacies, 14 Body Shop stores, and 5 Optic stores. On the performance side, our retail revenue grew by 13.7% year-over-year in Q2 2026, and 11.1% in H1 2026, driven by same-store revenue growth of 8.5% and 6.5% over the respective periods. Alongside the strong ramp-up from newly opened pharmacies, we have added 34 new pharmacies over the past 12 months. Revenue growth was further supported by 4% increase in the number of bills issued and 9.3% increase in the average bill size, both in Q2 2026. We find this trend encouraging as it reflects healthy consumer demand and strong execution at the store level. Our wholesale business delivered year-over-year revenue growth of 16.5% in Q2 2026, and 11.6% in H1 2026.

Tornike Nikolaishvili: As of June 2026, our network comprises of 464 pharmacies, 14 Body Shop stores, and 5 Optic stores. On the performance side, our retail revenue grew by 13.7% year-over-year in Q2 2026, and 11.1% in H1 2026, driven by same-store revenue growth of 8.5% and 6.5% over the respective periods. Alongside the strong ramp-up from newly opened pharmacies, we have added 34 new pharmacies over the past 12 months. Revenue growth was further supported by 4% increase in the number of bills issued and 9.3% increase in the average bill size, both in Q2 2026. We find this trend encouraging as it reflects healthy consumer demand and strong execution at the store level. Our wholesale business delivered year-over-year revenue growth of 16.5% in Q2 2026, and 11.6% in H1 2026.

Speaker #2: As of June 26 our network comprises of 460 four pharmacies 14 body shop stores and five optic stores. On the performance side our retail revenue grew by 13.7% year over year in second quarter 26 and 11.1% in first half 26.

Speaker #2: Driven by same store revenue growth of 8.5 and 6.5% over the respective periods. Alongside the strong ramp up from newly opened pharmacies we have added 34 new pharmacies over the past 12 months revenue growth was farther supported by 4% increase in the number of bills issued and 9.3% increase in the average bill size.

Speaker #2: Both in second quarter 26. We find this trend encouraging as it reflects healthy consumer demand and strong execution at the store level. Our wholesale business delivered year over year revenue growth of 16.5% in second quarter 26 and 11.6% in first half of 26.

Speaker #2: Reflecting continued progress on our strategic priorities this growth was mainly driven by broader product offering across distribution channels and higher revenue from state healthcare programs.

Tornike Gogichaishvili: Reflecting continued progress on our strategic priorities, this growth was mainly driven by broader product offering across distribution channels and higher revenue from state healthcare programs. At the same time, we continue to deliver consistent gross profit margin improvement year over year, reaching 34.1% in Q2 2026, which is up by 1.4%, and 34% in H1 2026, up by 1.5%, reflecting the initiatives we have undertaken to shift our sales mix towards higher margin products and secure improved supplier terms. Turning to the next slide. Let's look how this translated into very strong financial results marked by record high EBITDA and solid balance sheet position. Improved profitability supported by disciplined cost management across the business resulted in EBITDA of GEL 29.8 million in Q2, up by 22.3% year over year. In H1 2026, EBITDA grew by 21.4%, reaching GEL 58.9 million.

Tornike Nikolaishvili: Reflecting continued progress on our strategic priorities, this growth was mainly driven by broader product offering across distribution channels and higher revenue from state healthcare programs. At the same time, we continue to deliver consistent gross profit margin improvement year over year, reaching 34.1% in Q2 2026, which is up by 1.4%, and 34% in H1 2026, up by 1.5%, reflecting the initiatives we have undertaken to shift our sales mix towards higher margin products and secure improved supplier terms. Turning to the next slide. Let's look how this translated into very strong financial results marked by record high EBITDA and solid balance sheet position. Improved profitability supported by disciplined cost management across the business resulted in EBITDA of GEL 29.8 million in Q2, up by 22.3% year over year. In H1 2026, EBITDA grew by 21.4%, reaching GEL 58.9 million.

Speaker #2: At the same time, we continue to deliver consistent gross profit margin improvement year over year, reaching 34.1% in the second quarter of '26, which is up by 1.4%, and 34% in the first half of '26.

Speaker #2: Up by 1.5%. Reflecting the initiatives we have undertaken to shift our sales mix towards higher margin products and secure improved supplier terms. Turning the next slide let's look how this translated into very strong financial results marked by record high EBITDA and solid balance sheet position.

Speaker #2: Improved profitability supported by disciplined cost management across the business. Resulted in EBITDA of 29.8 million in second quarter up by 22.3% year over year and in first half 26 EBITDA grew by 21.4% reaching 58.9 million.

Tornike Gogichaishvili: Importantly, this growth was accompanied by robust cash flow generation with EBITDA to cash conversion at 100.9% in H1, which is up by 11.6% year over year, and it's comfortably above our 90% target. This reflects better working capital management and highlights the quality of our earnings and operational discipline. The combination of EBITDA growth and strong cash generation translated into a solid leverage position, with adjusted net debt to LTM EBITDA at 0.8x, which is comfortably below our target level of 1.5. We also distributed GEL 12 million in dividends during Q2. On the final slide, to summarize. First, we are delivering sustained revenue growth supported by same-store revenue growth and strong wholesale performance. Second, we are consistently improving profitability and achieving record earnings through margin expansion and disciplined execution.

Tornike Nikolaishvili: Importantly, this growth was accompanied by robust cash flow generation with EBITDA to cash conversion at 100.9% in H1, which is up by 11.6% year over year, and it's comfortably above our 90% target. This reflects better working capital management and highlights the quality of our earnings and operational discipline. The combination of EBITDA growth and strong cash generation translated into a solid leverage position, with adjusted net debt to LTM EBITDA at 0.8x, which is comfortably below our target level of 1.5. We also distributed GEL 12 million in dividends during Q2. On the final slide, to summarize. First, we are delivering sustained revenue growth supported by same-store revenue growth and strong wholesale performance. Second, we are consistently improving profitability and achieving record earnings through margin expansion and disciplined execution.

Speaker #2: Importantly this growth was accompanied by robust cash flow generation with EBITDA to cash conversion at 100.9% in first half which is up by 11.6% year over year and it's comfortably above our 90% target.

Speaker #2: This reflects better working capital management and highlights the quality of our earnings and operational discipline. The combination of EBITDA growth and strong cash generation translated into a solid leverage position with adjusted net debt to LTM EBITDA at 0.8 times which is comfortably below our target level of 1.5.

Speaker #2: We also distributed gel 12 million in dividends during the second quarter. On the final slide to summarize first we are delivering sustained revenue growth supported by same store revenue growth and strong wholesale performance second we are consistently improving profitability and achieving record earnings through margin expansion and discipline execution and third we are maintaining a healthy level of leverage supported by strong business performance and solid cash generation giving us flexibility for future investments and potential shareholder returns.

Tornike Gogichaishvili: Third, we are maintaining a healthy level of leverage supported by strong business performance and solid cash generation, giving us flexibility for future investments and potential shareholder returns. Thank you again for your time. I'm happy to take your questions during the Q&A session. Now let me hand over to Irakli Gogia.

Tornike Nikolaishvili: Third, we are maintaining a healthy level of leverage supported by strong business performance and solid cash generation, giving us flexibility for future investments and potential shareholder returns. Thank you again for your time. I'm happy to take your questions during the Q&A session. Now let me hand over to Irakli Gogia.

Speaker #2: Thank you again for your time. I'm happy to take your questions during the Q&A session. Now, let me hand over to Irak.

Irakli Gogia: Hello, everyone. Thank you, Tornike. I'm pleased to share the results of another strong quarter in the healthcare services business. Revenue was up 18% year over year, while EBITDA grew 25% to GEL 30 million, and the EBITDA margin improved by 1.3 percentage points to 21%. On an LTM basis, EBITDA has now passed GEL 100 million for the first time. Leverage also improved. Net debt to EBITDA declined from 3.7 in March to 3.5 in June 2026. We continued to expand our clinical capabilities and service offerings both in Tbilisi and in regions. We introduced robotics-assisted surgery, enabling greater precision in complex procedures and strengthening our position in high acuity, higher margin surgical care. Being a minimally invasive approach, it is associated with faster recovery and shorter average lengths of stays. In June, we opened a fully renovated and expanded outpatient department at our largest hospital.

Speaker #3: Hello everyone. Thank you Tornike. I'm pleased I'm pleased to share the results of another scope quarter in the healthcare services business. Revenue was up 18% year over year while EBITDA grew 25% to gel 30 million and the EBITDA margin improved by 1.3 percentage points to 21%.

Speaker #3: On a last 12 months basis EBITDA has now passed 100 million gel for the first time. Leverage also improved net debt to EBITDA declined from 3.7 in March to 3.5 in June 2026.

Irakli Gogia: We continued to expand our clinical capabilities and service offerings both in Tbilisi and in regions. We introduced robotics-assisted surgery, enabling greater precision in complex procedures and strengthening our position in high acuity, higher margin surgical care. Being a minimally invasive approach, it is associated with faster recovery and shorter average lengths of stays. In June, we opened a fully renovated and expanded outpatient department at our largest hospital.

Speaker #3: We continue to expand our clinical capabilities and service offerings, both in Tbilisi and in the regions. We introduced robotics-assisted surgery, enabling greater precision in complex procedures and strengthening our position in high-equity, higher-margin surgical care.

Speaker #3: Being a minimally invasive approach it is associated with faster recovery and shorter average lengths of stays. In June we opened the fully renovated and expanded outpatient department at our largest hospital it is already contributing to revenue and should farther increase outpatient revenue share in the coming quarters.

Irakli Gogia: It is already contributing to revenue and should further increase outpatient revenue share in the coming quarters. We also expanded TAVI, transcatheter aortic valve implantation, to a second hospital within our network. This minimally invasive alternative to open heart surgery meets growing demand and consolidates our position as country's leader in cardiology. New services were added in underserved regions, including angiology and vascular surgery, full-scale urology, and ophthalmic surgery as well. In two regional cities, we merged the newly acquired government hospitals with our existing facilities there. Two hospitals became one upgraded site in each city, reducing duplicated costs and driving efficiency further. Our polyclinics and diagnostic segment further expanded its diagnostics network footprint, adding six locations this March to reach 20 retail points, with further growth planned ahead. Let's turn to our hospitals business slide, please.

Speaker #3: We also expanded TAVI—transcatheter aortic valve implantation—to a second hospital within our network. This minimally invasive alternative to open-heart surgery meets growing demand and consolidates our position as the country's leader in cardiology.

Irakli Gogia: New services were added in underserved regions, including angiology and vascular surgery, full-scale urology, and ophthalmic surgery as well. In two regional cities, we merged the newly acquired government hospitals with our existing facilities there. Two hospitals became one upgraded site in each city, reducing duplicated costs and driving efficiency further. Our polyclinics and diagnostic segment further expanded its diagnostics network footprint, adding six locations this March to reach 20 retail points, with further growth planned ahead. Let's turn to our hospitals business slide, please.

Speaker #3: New services were added in underserved regions including angiology and vascular surgery full scale urology and ophthalmic surgery as well. In two regional cities we merged the newly acquired government hospitals with our existing facilities there two hospitals became one upgraded site in each city reducing duplicated costs and driving efficiency.

Speaker #3: Further our polyclinics and diagnostic segment further expanded its diagnostics network footprint adding six locations since March to reach 20 retail points with further growth planned ahead.

Speaker #3: Let's turn to our hospitals business slide please. Revenue grew by 18% in the hospitals business and that EBITDA grew by 24% with the margin improving to 19.8%.

Irakli Gogia: Revenue grew by 18% in the hospitals business and the EBITDA grew by 24%, with the margin improving to 19.8%. Operating cash flow reached GEL 19 million, up 17%, with an EBITDA to cash conversion ratio comprising 83% for the quarter. Occupancy rate rose by 2 percentage points year over year to 71%, while average lengths of stay shortened from 4.5 days to 4 days. We are treating more patients and treating them faster. Admissions also grew by 26% across the segment. We have in our polyclinics business, admissions increased by 6%, and a favorable shift in revenue composition towards higher value services supported revenue growth of 14%. In diagnostics, we stayed focused on building our retail and B2B, the main profitability drivers for the division.

Speaker #3: Operating cash flow reached 19 million up 17% with an EBITDA to cash conversion ratio comprising 83% for the quarters. Occupancy rate rose by two percentage points year over year to 71% while average lengths of stay shortened from 4.5 days to four days so we are treating more patients and treating them faster.

Speaker #3: Admissions also grew by 26% across the segment. Moving on to the next slide moving to the next slide we have in our polyclinics business admissions increased by 6% and a favorable shift in revenue composition towards higher value services supported revenue growth of 14% in diagnostics we stayed focused on building our retail and B2B the main profitability drivers for the division total revenue grew by 22% and retail revenue in particular came close to doubling against the same quarter of 2025.

Irakli Gogia: Total revenue grew by 22%, and retail revenue in particular came close to doubling against the same quarter of 2025. On a combined basis, polyclinics and diagnostic segment revenue grew by 17% and EBITDA by 27%, with the margin up by 1.9 percentage points to 24.7%. Moving on to our summary slide. The second quarter was strong, both on the financial and strategic side. Top line growth was strong across all segments. EBITDA grew significantly. Leverage and margins improved further. We also kept investing where it matters most, in our facilities, our specialists, and the depth of clinical expertise across the network. That concludes my presentation. I will hand over to Giorgi, who will take you through the results of the insurance business. Thank you.

Speaker #3: On a combined basis, Polyclinics and Diagnostics segment revenue grew by 17%, and EBITDA by 27%, with the margin up by 1.9 percentage points to 24.7%.

Speaker #3: Moving on to our summary slide to summarize the second quarter was strong positive financial and strategic side top line growth was strong across all segments EBITDA grew significantly leverage and margins improved further.

Speaker #3: We also kept investing where it matters most in our facilities our specialists and the depths of clinical expertise across the network. That concludes my presentation.

Speaker #3: I will hand over to Georgi who will take you through the results of the insurance business. Thank you.

Speaker #2: Thank you Irakli. Hello ladies and gentlemen I'm going to overview the insurance business. Just a quick reminder that we divide our business into two main lines it's the property and casualty and medical and I will say that we had a record high Q2 we had a 32% increase in insurance revenues in Q2 while we had a 30% increase in first half of 2020 26.

[Company Representative] (Georgia Capital): Thank you, Irakli. Hello, ladies and gentlemen. I am going to overview the insurance business. Just a quick reminder that we divide our business into two main lines. It is the Property and Casualty, and Medical. I will say that we had a record high Q2. We had a 32% increase in insurance revenues in Q2, while we had a 30% increase in H1 2026. Pre-tax profits grew by 13% in Q1, and in H1 by 36%. Just to make an adjusted profit, just to underline, we are also adjusting our profit because we had a one-off big hailstorm in Tbilisi, unfortunately in Q2, where we had a severe claim for our motor fleet.

Giorgi Baratashvili: Thank you, Irakli. Hello, ladies and gentlemen. I am going to overview the insurance business. Just a quick reminder that we divide our business into two main lines. It is the Property and Casualty, and Medical. I will say that we had a record high Q2. We had a 32% increase in insurance revenues in Q2, while we had a 30% increase in H1 2026. Pre-tax profits grew by 13% in Q1, and in H1 by 36%. Just to make an adjusted profit, just to underline, we are also adjusting our profit because we had a one-off big hailstorm in Tbilisi, unfortunately in Q2, where we had a severe claim for our motor fleet.

Speaker #2: Free tax profits grew by 13% in Q1 and in first half by 36%. Just just just to make an adjusted profit because just just to underline because we are also adjusting our profit because we had a one-off big hailstorm in Tbilisi unfortunately in Q2 where we had a severe claim for our motor fleet so if we adjust it without the claim we had a 34% increase in first half and without and in first in in Q2 and in first half it translates into 50% growth 5550 for first half of our first half in 2026.

[Company Representative] (Georgia Capital): If we adjust it without the claim, we had a 34% increase in Q2 and in H1 it translates into 50% growth, five zero, for H1 in 2026. Our net premium income grew by 37% overall in Q2 2026. I will deep dive into each business line, and I will touch the property and casualty business. Our property and casualty business remains still our business leader on the market, with an 11% increase in revenues in Q2 and 12% in H1 2026. The revenue growth was mainly driven by the expansion of our property portfolio, secondly by credit life, and lastly, the expansion of our retail and corporate motor policies, coupled with the increase in the corporate insurance rate. Our pre-tax profit, unadjusted, was down by 11% because of the hailstorm.

Giorgi Baratashvili: If we adjust it without the claim, we had a 34% increase in Q2 and in H1 it translates into 50% growth, five zero, for H1 in 2026. Our net premium income grew by 37% overall in Q2 2026. I will deep dive into each business line, and I will touch the property and casualty business. Our property and casualty business remains still our business leader on the market, with an 11% increase in revenues in Q2 and 12% in H1 2026. The revenue growth was mainly driven by the expansion of our property portfolio, secondly by credit life, and lastly, the expansion of our retail and corporate motor policies, coupled with the increase in the corporate insurance rate. Our pre-tax profit, unadjusted, was down by 11% because of the hailstorm.

Speaker #2: Our net premium incomes grew by 37% overall in Q2 2026. Now, I will deep dive into each line of business, and I will touch on the property and casualty business.

Speaker #2: Our property and casualty business remains the undisputed leader in the market. We had an 11% increase in revenues in Q1 and Q2, and a 12% increase in the first half of 2026.

Speaker #2: The revenue growth was mainly driven in by the expansion of our of our property portfolio secondly by credit life and lastly the expansion of our retail and corporate motor policies coupled with the increase in the corporate insurance rate.

Speaker #2: Our pretext profit unadjusted was down by 11% because of the hailstorm but but without the hailstorm that is whether to consider as a one-off event because we never seen a hailstorm like this before in Tbilisi the growth was almost 23% in Q2 and 25% in in first half 2026.

[Company Representative] (Georgia Capital): Without the hailstorm, that is considered a one-off event because we never seen a hailstorm like this before in Tbilisi. The growth was almost 23% in Q2 and 25% in H1 2026. We paid almost GEL 6 million in dividends in Q2 to our shareholder. That translated into almost GEL 12 million in H1 2026, despite the hailstorm. That's what I want to underline. Our key operating metrics remain still very solid, with a 21% increase in net premiums written in our P&C line. Our combined ratios are still including the one-off event at 89%, but without the one-off hailstorm event, it was down by 1.5% and stood at 82%. Our individual insurance grew by 11%, while the written policies grew by 30%. The renewal rates are still something to underline, and it stands at 80% in Q2 2026.

Giorgi Baratashvili: Without the hailstorm, that is considered a one-off event because we never seen a hailstorm like this before in Tbilisi. The growth was almost 23% in Q2 and 25% in H1 2026. We paid almost GEL 6 million in dividends in Q2 to our shareholder. That translated into almost GEL 12 million in H1 2026, despite the hailstorm. That's what I want to underline. Our key operating metrics remain still very solid, with a 21% increase in net premiums written in our P&C line. Our combined ratios are still including the one-off event at 89%, but without the one-off hailstorm event, it was down by 1.5% and stood at 82%. Our individual insurance grew by 11%, while the written policies grew by 30%. The renewal rates are still something to underline, and it stands at 80% in Q2 2026.

Speaker #2: Our operating and yeah and we paid almost $6 million in dividends in Q2 to to our shareholder. That translated into almost $12 million in first half 2026 despite the hailstorm.

Speaker #2: That's what I want to underline. Our key operating matrix remains still very solid. We had a 21% increase in net premiums written in our PNC line our combined ratios are still including the one-off event at 89% but without the one-off hailstorm event it was down by 1.5% and stood at 82%.

Speaker #2: Our individual insurance grew by 11%, while the written policies grew by 30%. The renewal rates are still something to underline, and it stands at 80% in Q2 2026.

Speaker #2: Moving to health insurance line I would say that our medical insurance is entering the period of renaissance. That's that's we had there we have a 50% 50% increase in Q2 in our revenues and 43% growth in first half 2026.

[Company Representative] (Georgia Capital): Moving to health insurance line, I would say that our medical insurance is entering the period of renaissance. There we have a 50%, five zero, % increase in Q2 in our revenues and 43% growth in H1 2026. While we remain still undisputed leader also in this line of business with 50% market share. Our pre-tax profits grew even more. That's why I am very proud and happy of the teams, because the revenues that we are generating translate in even more growth in terms of the pre-tax profit. In Q2, we saw 53% in growth of the profit, and in H1 we are doubling. Our profits doubled, where we saw 100% increase in health insurance. The growth in the revenue was driven by the tenders that I announced and said in the beginning of the year.

Giorgi Baratashvili: Moving to health insurance line, I would say that our medical insurance is entering the period of renaissance. There we have a 50%, five zero, % increase in Q2 in our revenues and 43% growth in H1 2026. While we remain still undisputed leader also in this line of business with 50% market share. Our pre-tax profits grew even more. That's why I am very proud and happy of the teams, because the revenues that we are generating translate in even more growth in terms of the pre-tax profit. In Q2, we saw 53% in growth of the profit, and in H1 we are doubling. Our profits doubled, where we saw 100% increase in health insurance. The growth in the revenue was driven by the tenders that I announced and said in the beginning of the year.

Speaker #2: While we remain still undisputed leader also in in this line of business with 50% market share. Our pretext profits grew even more. That's that's why why I'm very proud and happy of the of the teams because the revenues that we are generating is translated even in even more growth in terms of the pretext profit.

Speaker #2: In Q2 we saw 53% in growth of the of the profit and in first half we had doubling. So our profits doubled where we saw 100% increase in in in health insurance.

Speaker #2: Mainly the growth in the revenue was driven by by the by the tenders that I announced and said in the end of in the beginning of the year that translated into into the into the revenues already.

[Company Representative] (Georgia Capital): That translated into the revenues already, plus the organic growth of our corporate portfolio and meeting growth in the insurance rates. The strategy that we announced a few years ago of the retail and diversification of the medical products in our total composition. Our key operating metrics remain very, very strong, that I'm really proud of. As I said, our net premiums grew by 55%, while the combined ratio still stays very healthy at 92%. Mainly, the combined ratio reflects the improvement of the combined ratio, reflects the lower expense ratio, as the higher insurance revenues improve the operating leverage. Our individual insurance grew by 40% almost, and the renewal rates throughout the portfolio still remains very strong at 77%.

Giorgi Baratashvili: That translated into the revenues already, plus the organic growth of our corporate portfolio and meeting growth in the insurance rates. The strategy that we announced a few years ago of the retail and diversification of the medical products in our total composition. Our key operating metrics remain very, very strong, that I'm really proud of. As I said, our net premiums grew by 55%, while the combined ratio still stays very healthy at 92%. Mainly, the combined ratio reflects the improvement of the combined ratio, reflects the lower expense ratio, as the higher insurance revenues improve the operating leverage. Our individual insurance grew by 40% almost, and the renewal rates throughout the portfolio still remains very strong at 77%.

Speaker #2: Plus the organic growth of our corporate portfolio and the growth in insurance rates. Plus the strategy that we announced a few years ago: the retail and diversification of the medical product in our total composition.

Speaker #2: On the other hand our key operating matrix remained very very strong at the time really proud of as I said our net premiums grew by 55% while the combined ratios still stays very healthy at 92%.

Speaker #2: Mainly the combined ratio lower reflects the improvement of the combined ratio reflects the lower expense ratio as the higher insurance revenues improve the operating leverage.

Speaker #2: Our individual insurance grew by 40% almost and the renewal rates throughout the portfolio still remains very strong at 77%. To have a small dive into each line of business our B2C business grows really fast in in line with our strategy and our strategy and we have a 44% increase in premiums in Q2 2026 and we have 60% 60 60% increase in in Q in first half 2026 in terms of the gross return premiums.

[Company Representative] (Georgia Capital): To have a small dive into each line of business, our B2C business grows really fast in line with our strategy, announced strategy. We have 44% increase in end premiums in Q2 2026. We have 60% increase in H1 2026 in terms of the gross written premiums. While the introduction of the mandatory inbound travel insurance played a significant role in diversification of the health insurance portfolio, contributing to healthy revenue streams, plus the healthy profitability and sustainability of our portfolio in terms of the profitability. Our B2B business remains very solid, and we managed to increase our insurance tariffs by double-digit figures. That also affects our profitability and translates into the high double-digit growth in terms of the profitability. As I said, the medical tenders play the significant role in terms of the growth of the revenue.

Giorgi Baratashvili: To have a small dive into each line of business, our B2C business grows really fast in line with our strategy, announced strategy. We have 44% increase in end premiums in Q2 2026. We have 60% increase in H1 2026 in terms of the gross written premiums. While the introduction of the mandatory inbound travel insurance played a significant role in diversification of the health insurance portfolio, contributing to healthy revenue streams, plus the healthy profitability and sustainability of our portfolio in terms of the profitability. Our B2B business remains very solid, and we managed to increase our insurance tariffs by double-digit figures. That also affects our profitability and translates into the high double-digit growth in terms of the profitability. As I said, the medical tenders play the significant role in terms of the growth of the revenue.

Speaker #2: While the introduction of the mandatory inbound travel insurance played a significant role in diversification of the health insurance portfolio contributing to a healthy healthy revenue streams plus the healthy profitability and sustainability of our portfolio in terms of the in terms of the profitability.

Speaker #2: Our B2B business remains very solid and we managed to increase our insurance tariff by mid by double digit figures that also affects our profitability and translates into the high high double digit growth in terms of the profitability.

Speaker #2: As I said the medical tenders played a significant role in terms of the in terms of the growth of the revenue but on the other hand of course the adjustment and and the in underwriting translates into the positive impact and overall loss ratio plus the profitability that is really something to underline.

[Company Representative] (Georgia Capital): On the other hand, of course, the adjustment and the enhanced underwriting translates into a positive impact on overall loss ratio plus the profitability. That is really something to underline. Lastly, the few things to underline that I would like to underline about our Q2 fantastic figures and performance, I would say, that we remain really strong in terms of the profitability. In Q2, improving by 23% year-over-year. Our medical insurance has entered the phase, I would say, of the renaissance, with a strong 53% year-over-year growth in profit, driven by the newly awarded tenders, plus the diversification of the health product in total composition. Our total insurance revenue grew by 32% in Q2, while the pre-tax profit grew by 13%, despite the hailstorm. It still remains. It demonstrates the resilience and the diversification of the portfolio.

Giorgi Baratashvili: On the other hand, of course, the adjustment and the enhanced underwriting translates into a positive impact on overall loss ratio plus the profitability. That is really something to underline. Lastly, the few things to underline that I would like to underline about our Q2 fantastic figures and performance, I would say, that we remain really strong in terms of the profitability. In Q2, improving by 23% year-over-year. Our medical insurance has entered the phase, I would say, of the renaissance, with a strong 53% year-over-year growth in profit, driven by the newly awarded tenders, plus the diversification of the health product in total composition.

Speaker #2: And lastly the few things to underline that I would like to underline about our Q2 fantastic figures and performance I would say that we remain really strong in terms of the profitability in Q2 the improving by 23% year over year our medical insurance has entered the phase I would say of the renaissance with a strong 53% year over year growth in profit by the driven by by the newly newly awarded tenders plus the diversification of the of the of the health products in total composition.

Speaker #2: Our total insurance revenue by grew by 32% in Q2 while the pretext profit grew by 13% despite the hailstorm it still remains demonstrates the resilience and the diversification of the portfolio and we paid six more than $6 million in dividends in Q2 to our shareholder to G Cup.

Giorgi Baratashvili: Our total insurance revenue grew by 32% in Q2, while the pre-tax profit grew by 13%, despite the hailstorm. It still remains. It demonstrates the resilience and the diversification of the portfolio. We paid more than GEL 6 million in dividends in Q2 to our shareholder, to GCAP. That concludes my part. I will pass the word to Giorgi. Thank you very much.

[Company Representative] (Georgia Capital): We paid more than GEL 6 million in dividends in Q2 to our shareholder, to GCAP. That concludes my part. I will pass the word to Giorgi. Thank you very much.

Speaker #2: That concludes my part, and I will pass the word to Georgia. Thank you very much.

Speaker #1: And thank you Georgia. Hello everyone. I will briefly summarize the impact of these excellent results from our large portfolio companies on our valuations over the next few slides.

Giorgi Alpaidze: Thank you, Giorgi. Hello, everyone. I will briefly summarize the impact of these excellent results from our large portfolio companies on our valuations over the next few slides. This is the H1 results release, as you know. Every H1, we use independent valuation company, Kroll, which has done the valuations again this time around. As you can see, our portfolio value agreed to GEL 5.4 billion during this H1 and Q2. Half of the portfolio, about 47%, is our investment in Lion Finance Group, which at the time of this press release was 14.9% in terms of the equity stake. In the private portfolio, the large portfolio companies continue to be the vast majority of our private portfolio. They make up around 40% of the non-public portfolio.

Speaker #1: So this is the half year results release as you know. So every half year we use independent valuation company Crawl which has done the valuations again this time around.

Speaker #1: And as you can see, our portfolio value increased to 5.4 billion lari during the first half and the second quarter.

Speaker #1: Half of the portfolio about 47% is our investment in Lion Finance Group which at the time of this press release was 14.9% in terms of the equity stake.

Speaker #1: And the private portfolio the large portfolio companies continue to be the vast majority of our private portfolio. They make up around 40% of the nonpublic portfolio.

Speaker #1: Here the retail pharmacy group was valued at for the first time about 1 billion lari thanks to a very strong results that were delivered during.

Giorgi Alpaidze: Here, the retail pharmacy group was valued at, for the first time, about GEL 1 billion, thanks to very strong results that were delivered during the quarter. Healthcare services and insurance continue to be the two other large portfolio company businesses that we carry within our valuations. One important thing I would highlight is on the discount rates. During the quarter, we saw about 50 bps reduction within the WACC as a result of the updates that we carry every quarter. This time, we noticed that the equity risk premiums were reduced due to the spreads tightening within this region in Q2, primarily so. We saw that the discount rates came down, which had a slight impact on the multiples. We will see those on the next slides as they grew.

Speaker #1: Quarter and healthcare services and insurance continue to be the two other large portfolio company businesses that we carry within our valuations. One important thing I would highlight is on the discount rates—during the quarter, we saw about a 50 bps reduction within the WACC as a result of the updates that we carry every quarter. This time, we noticed that the equity risk premiums were reduced due to the spreads tightening within this region in the second quarter, primarily.

Speaker #1: So we saw that the the discount rates came down which had a slight impact on the multiples but we'll see those on the next slides as they grew.

Giorgi Alpaidze: Before we go to the next slide, I would also highlight that the other portfolio's percentage reduced down to 10%. That was because the large portfolio, emerging and other portfolio, didn't grow as much as the rest of the portfolio, partially because we also had a disposal of the m2 business from this group. Now, on the next slide, you see the developments within the multiples. Pharmacy multiple was slightly up to 8.3x, while the healthcare services business was also slightly up to 10.4x, and the insurance was around 10x, 9.9x. Overall, they were slightly up, but still within the zip codes where we have seen them over the last 12 months. All this growth was related to the decreases in the discount rates. Now, in terms of the actual portfolio movement. Our portfolio grew by GEL 400 million.

Speaker #1: But before we go to the next slide, I would also highlight that the 'other portfolios' percentage reduced down to 10%. That was because, you know, the larger portfolio was emerging, and the 'other' portfolio didn't grow as much as the rest of the portfolio, partially because we also had the disposal of the housing business from this group.

Speaker #1: Now, on the next slide, you see the developments within the multiples. So, pharmacy multiple was slightly up to 8.3, while the healthcare services business was also slightly up to 10.4, and the insurance was around 10 times — 9.9 times.

Speaker #1: So overall, they were slightly up but still within the zip codes where we have seen them over the last 12 months. All this growth was related to the decreases in the discount rates.

Speaker #1: Now in terms of the actual portfolio movement so our portfolio grew by 400 million lari however there are few pieces that are important to highlight.

Giorgi Alpaidze: However, there are a few pieces that are important to highlight, maybe starting with the Lion Finance Group. As you know, we sold down the stake within the Lion Finance Group down to 14.9% during the quarter. Even with the sale, the value that was created by Lion Finance Group during the quarter was higher than the sale. We ended up with our value of the stake in Lion Finance Group growing by GEL 154 million during the quarter. The bank's share price itself is up by around 22% during the quarter. On the private portfolio side, the growth of GEL 222 million was primarily a product of an excellent value creation, which was around GEL 240 million. That was then slightly offset by the dividends that were paid by the private portfolio companies that impacted their net debt balances.

Speaker #1: Maybe starting with the Lion Finance Group. So as you know we sold down the stake within the Lion Finance Group down to 14.9% during the quarter even with the sale the value that was created by Lion Finance Group during the quarter was higher than the sale.

Speaker #1: So, we ended up with the value of the stake in Lion Finance Group growing by 154 million lari during the quarter. The bank's share price itself is up by around 22% during the quarter.

Speaker #1: On the private portfolio side the the growth of 222 million lari was primarily a product of an excellent value creation which was around 240 million lari that was then slightly offset by the dividends that were paid by the the private portfolio companies that impacted their net balances.

Speaker #1: We didn't have a much change in the other portfolio. We had few small investments and also the reduction due to the sale of the housing business.

Giorgi Alpaidze: We didn't have much change in the other portfolio. We had a few small investments and also the reduction due to the sale of the m2 business. That's how we ended up with our portfolio value of GEL 5.4 billion in Q2. This excellent value creation, where the largest value creation came in the retail pharmacy business, as you saw earlier, of GEL 120 million plus. That was split, about GEL 50 million came organically from the EBITDA growth. Another GEL 12 million was delivered through the dividend payment to Georgia Capital and an excellent operating cash flow conversion. About GEL 62 million was because of the increase in the multiple. Healthcare services also delivered excellent result, as you saw earlier.

Speaker #1: And that's how we ended up with our portfolio value of 5.4 billion lari in the second quarter. These excellent value creation were the largest value creation came in the retail pharmacy business as you saw earlier of hundreds and 20 million lari plus that was split about 50 million lari came organically from the EBITDA growth another 12 million lari was delivered through the dividend payment to Georgia Capital and and an excellent operating cash flow conversion and about 62 million lari was because of the the increase in the multiple.

Speaker #1: Healthcare services also delivered excellent result as you saw earlier that was 45 million lari value creation to us because of the increase in the EBITDA and about 25 million lari because of the change in the multiple.

Giorgi Alpaidze: That was GEL 45 million value creation to us because of the increase in the EBITDA and about GEL 25 million because of the change in the multiple. Similarly, insurance delivered GEL 16 million growth organically because of the growth in the net income and about GEL 26 million because of the multiple change. That is largely about the valuations. Now, moving on to the liquidity of GCAP at the holdco level. As we mentioned earlier in this presentation, we are paying down the remaining $50 million bonds this month. It will be paid down on 19 August, and the size of our bonds will go down to 0 this month. That means that the liquidity that we had at the end of June, which was roughly $200 million, will come down to around $124 million when counting in the remaining balance of the existing buybacks as well.

Speaker #1: Similarly, insurance delivered GEL 16 million of growth organically because of the increase in net income, and about GEL 26 million due to the multiple change.

Speaker #1: That's largely about the valuations. Now, moving on to the liquidity of our G Cap at the holdco level. So, as we mentioned earlier in this presentation, we are paying down the remaining $50 million bonds this month.

Speaker #1: It will be paid down on August 19th, and the size of our bonds will go down to zero this month. That means that the liquidity we had at the end of June, which was roughly $200 million, will come down to around $124 million when counting in the remaining balance of the existing buybacks as well.

Giorgi Alpaidze: We had around $11 million left today, but as of the end of the quarter, that was $20 million. We will have $124 million left once the bonds reach 0 and the existing buyback program is over. Lastly, this is the dividend income outlook. Our outlook for this year, we expect around GEL 200 million dividend inflows. One comment that I would like to make is, previously, we also guided towards GEL 200, GEL 200 plus. The difference now is that our stake in the bank is lower versus 16.5% that we had before. That is also reducing the dividend inflows that we expect. However, as you saw on the previous slide, we generated $100 million plus from selling the stake in the bank. Our liquidity is still strong, but we do expect that our dividends will continue to grow in the coming quarters.

Speaker #1: So we had around 11 million left today but as of the end of the quarter that was 20 million so we'll have 124 million left once the the bonds reach zero and the existing buyback program is over.

Speaker #1: Now the lastly this is the dividend income outlook. So our outlook for this year is we expect around 200 million lari dividend inflows and one comment that I would like to make is in a previously we also guided towards 200 to 100 plus the difference now is that our stake in the bank is lower versus 16.5% that we had before.

Giorgi Alpaidze: The difference now is that our stake in the bank is lower versus 16.5% that we had before. That is also reducing the dividend inflows that we expect. However, as you saw on the previous slide, we generated $100 million plus from selling the stake in the bank. Our liquidity is still strong, but we do expect that our dividends will continue to grow in the coming quarters. That is largely it. For the wrap-up, I will go back to Irakli. Irakli, over to you.

Speaker #1: So that's also reducing the dividend inflows that we expect. However as you saw on the previous slide we generated 100 million. Plus from selling the stake in the bank.

Speaker #1: So our liquidity is still strong but we do expect that our our dividends will continue to grow in the coming quarters. That is largely it.

Giorgi Alpaidze: That is largely it. For the wrap-up, I will go back to Irakli.

Speaker #1: So for the wrap-up I will go back to Iraqli Iraqli over to you.

Irakli Gilauri: Irakli, over to you.

Irakli Gilauri: Thank you, Giorgi. To wrap up, NAV per share doing great. Our revenue is accelerating to grow, and it's growing nicely. July was also very strong for all of our portfolio companies. NCC ratio is also at negative territory, we have a pretty big firepower for investments and buybacks. Disposal of m2 was real estate development business was also good sign to delever the other portfolio companies. Actually, we have a question that whether we sold it above the NAV or not, and we did sell above the NAV. It was a small amount anyway, marked in our books. It was marked below $10 million. I think it's $5 million or so, the equity value. We sold above $10 million. Basically, leverage was there around close. Leverage was around $50 million there. Basically, we have offloaded $50 million of the leverage.

Speaker #2: Thank you. Thank you Georgia. So to wrap up and I appreciate doing great. Our revenue is accelerating to grow and it's growing nicely. Good July was also very strong for all all of our portfolio companies and CC ratio is also at negative territory.

Speaker #2: So we have a pretty big firepower for investments and buybacks. Disposal of M2 was real estate development business was also good sign to deliver the other portfolio companies and actually we have a question that whether we sold it about the NAB or not and we did sell about the NAB it's it was a small amount anyway marked on in our books it was marked below 10 million I think at 5 million or so the equity value we sold about 10 million and basically leverage was there around close gross lever leverage was around 50 million there.

Speaker #2: So basically we have offloaded 50 million of the of the leverage. As I mentioned the S&P the upgraded us to BB and we completed 700 million lari capital return program and we kickstarted the 1 billion capital allocation program which we are really looking forward to and we in line of this capital allocation program 50 million for buyback has been already committed.

Irakli Gilauri: As I mentioned, S&P, they upgraded us to BB, we completed GEL 700 million capital return program, we kickstarted the GEL 1 billion capital allocation program, which we are really looking forward to. In line of this capital allocation program, $50 million for buyback has been already committed. Our repurchase of shares are going well. We want to buy more, obviously, as we see a growth rate accelerating for our portfolio companies. Actually, we are very pleased with the growth rates we are achieving. Anyway, on the outlook, we expect our NAV per share to continue the strong growth as EBITDA generation is very strong. We will maintain the NCC ratio below 10. It's not that difficult. Economy is growing pretty strongly. As you see, our foreign currency inflows are amazing. Our tourist season is booming. Foreign currency is flowing in.

Speaker #2: And our repurchase of shares are are are going well. We want to buy more obviously as we see a gross rate accelerating for our portfolio companies and actually the we are very pleased with the gross rates but we are achieving.

Irakli Gilauri: Actually, we are very pleased with the growth rates we are achieving. Anyway, on the outlook, we expect our NAV per share to continue the strong growth as EBITDA generation is very strong. We will maintain the NCC ratio below 10. It's not that difficult. Economy is growing pretty strongly. As you see, our foreign currency inflows are amazing. Our tourist season is booming. Foreign currency is flowing in. Okay, let's move to the Q&A session. We are looking forward to receiving your questions. Please raise your hand to ask the question or you can type in the question.

Speaker #2: Anyway, on the outlook, we expect our NAV per share to continue the strong growth, as EBITDA generation is very strong. And we will maintain the NCC ratio below 10.

Speaker #2: It's not that difficult. And the economy is growing pretty strongly. As you see, our foreign currency inflows are amazing. Our tourist season is booming, and foreign currency is flowing in.

Irakli Gilauri: Okay, let's move to the Q&A session. We are looking forward to receiving your questions. Please raise your hand to ask the question or you can type in the question.

Speaker #2: Okay. Let's move to our Q to the Q&A session. And we are looking forward to receiving your questions. Please raise your hand to ask the question or you can type in the question.

Moderator: Thanks, Irakli. Dmitry Vlasov has his hand raised. Dmitry, you can join-

Anano Akhobadze: Thanks, Irakli. Dmitry Vlasov has his hand raised. Dmitry, you can join-

Speaker #1: Thanks, Irakli. Dimitri Vlasov has his hand raised, so Dimitri, you can join.

Dmitry Vlasov: Thank you very much. Again, congrats on strong set of results and new capital allocation program being announced. I have three questions, if I may. The first one is on Armenia. It is pretty reassuring that you are flagging Armenia as the next potential source of growth. Could you maybe provide a bit more color which industries look the most promising to you? The second question is about the potential dividends, which you also flagged. Could you confirm that unless you start trade at a premium to NAV, you would continue with buybacks and start dividends only potentially if you would trade at a premium? The third question is actually on pharmacy business, and specifically on the wholesale business gross margin. The progress has been very strong, and my question is, what is the potential here for the gross margin expansion? Thank you very much.

Speaker #2: Thank you very much. Thank you very much again. Congrats on a strong set of results and your capital allocation program being announced. I have three questions, if I may.

Speaker #2: The first one is on Armenia. It's pretty reassuring that you're flagging Armenia as the next potential source of growth. Could you maybe provide a bit more color on which industries look the most promising to you?

Dmitry Vlasov: The second question is about the potential dividends, which you also flagged. Could you confirm that unless you start trade at a premium to NAV, you would continue with buybacks and start dividends only potentially if you would trade at a premium? The third question is actually on pharmacy business, and specifically on the wholesale business gross margin. The progress has been very strong, and my question is, what is the potential here for the gross margin expansion? Thank you very much.

Speaker #2: The second question is about the potential dividends, which you also flagged. Could you confirm that unless you start trading at a premium to NAV, you would continue with buybacks, and potentially start dividends if you trade at a premium?

Speaker #2: And the third question is actually on pharmacy business, and specifically on the wholesale business gross margin. The progress has been very strong. My question is, what is the potential here for the gross margin expansion?

Speaker #2: Thank you very much.

Irakli Gilauri: Thank you, Dmitry. Let me address the first two questions. I will ask Tornike to talk about the pharmacy wholesale business. On Armenian industries, which we are looking the most attractive for us to do a bolt-ons, meaning that, for instance, buy the pharmacy chain, go into the healthcare business, capital-light side of the healthcare business in Armenia. We also like insurance. We are not urging yet to go to insurance business. The industries where we are already in, this is our priority because we know these industries well, and we think that we can manage them better than the industries which we are not present. Regarding the dividends, roughly, that is where we want to be. NAV premium, that would probably trigger the dividend program, kickstart the dividend program. Tornike, do you wanna address the wholesale pharmacy business question?

Speaker #1: Thank you, Dimitri. Let me address the first two questions, and then I will ask Tonica to talk about the pharmacy wholesale business. So, on Armenian industries—which we are looking at as the most attractive for us to do bolt-ons—meaning, for instance, buying a pharmacy chain and going into the healthcare business, specifically the capital-light side of the healthcare business in Armenia. We also like insurance, but we are not ready yet to go into the insurance business.

Speaker #1: So basically the the industries where we are already in this is our priority because we know this industry is well and we think that we are we can manage them better than the industries which we are we we we are not present.

Speaker #1: Regarding the dividends yeah roughly that's that's where we want to be. NAB premium that would probably trigger the the dividend program kickstart of the dividend program.

Speaker #1: Tonica, do you want to address the wholesale pharmacy business question?

Speaker #3: Thank you for the question. So let me say that this is all about mix. And let me divide into two parts the mix. First that we grew the non-med sales product sales especially to the pharmacy accounts and the second is we grew the sales of our strategic portfolio which has the higher margin definitely than the third party third party products.

Tornike Gogichaishvili: Thank you for the question. Let me say that this is all about mix. Let me divide into two parts the mix. First, that we grew the non-med sales, product sales, especially to the Pharmakey accounts. The second is we grew the sales of our strategic portfolio, which has the higher margin difference than the third-party products.

Tornike Nikolaishvili: Thank you for the question. Let me say that this is all about mix. Let me divide into two parts the mix. First, that we grew the non-med sales, product sales, especially to the Pharmakey accounts. The second is we grew the sales of our strategic portfolio, which has the higher margin difference than the third-party products.

Dmitry Vlasov: Thank you. If maybe you could share what the potential margin could be. Could it reach something above 30%, maybe, for this specific business?

Speaker #2: Thank you. And just if you maybe you could share what what the potential margin could be. Could it reach something above 30% maybe for the specific business?

Irakli Gilauri: I don't think it can reach higher than the 30% as a gross profit margin. I believe it can be from 25% to 30%.

Tornike Nikolaishvili: I don't think it can reach higher than the 30% as a gross profit margin. I believe it can be from 25% to 30%.

Speaker #3: I don't think it can reach higher than a 30% gross profit margin. I believe it can be from 25% to 30%.

Dmitry Vlasov: Thank you very much.

Speaker #2: Thank you very much.

Irakli Gilauri: Up to 30%, I would say.

Tornike Nikolaishvili: Up to 30%, I would say.

Speaker #3: Up to 30%, I would say. Thank you.

Dmitry Vlasov: Very clear. Thank you.

Irakli Gilauri: Thank you.

Tornike Nikolaishvili: Thank you.

Moderator: Thanks, Dmitry, for the interesting questions. Next up we have Ben Maher, who also has some questions. Ben, you can talk.

Anano Akhobadze: Thanks, Dmitry, for the interesting questions. Next up we have Ben Maher, who also has some questions. Ben, you can talk.

Speaker #1: Thanks Dimitri. For the interesting question. So next up we have Ben Meher who also has some questions Ben you can talk.

Ben Maher: Hi. Thank you. I've just got two questions, please. The first one's again on the capital allocation program and the investment side of that program. It sounds like bolt-ons in Armenia is the preferred strategy. What would be the single largest acquisition you would consider, potentially in dollar terms? Or is that something you would think about? The second question is just on the other portfolio you mentioned it's decreased down to 10%, but how do you see this portion of the portfolio evolving towards the year-end and also into next year? Thank you.

Speaker #4: Hi. Thank you. I just got two questions please. The first ones again on the capital allocation program and the investment side of that that program.

Speaker #4: It sounds like bolt-ons in Armenia is the preferred I guess strategy. Would there be a you know what would be the single largest acquisition you would consider you know potentially in dollar terms or I mean even think about the second question is just on the other portfolio you mentioned it's decreased down to 10% but how do you see this portion of the portfolio evolving towards the year end and also into next year?

Speaker #4: Thank you.

Irakli Gilauri: Sorry, the last question, can you repeat please? The other portfolio at 10% due to Georgia Capital.

Speaker #1: Sorry, the last question—can you repeat, please? The other portfolio, 10%—what did you say?

Ben Maher: Yes. Yeah. The other portfolio. The emerging portfolio.

Speaker #4: Yes, yeah. The other portfolio—the emerging portfolio.

Irakli Gilauri: Yeah. Basically, Armenia ticket size, hard to say. I don't think it will be a big ticket size. I don't know. I don't want to speculate. It most likely will not be more than $100 million. It most likely will not be more than $50 million. I don't know. This is somewhere that ticket size. For us, important is to buy market leaders, to buy meaningful businesses with meaningful growth, with meaningful consumer-driven franchise. Basically, that kind of will be our focus. Ticket size, it will not be more than GEL 100 for sure. On the other business, how big it's going to be, I don't know. We actually had a question whether we have some things to sell as well in other businesses. There are not much left there. We have some wine business. Maybe we will sell that one over time. It's capital heavy.

Speaker #1: Yeah. Yeah. So basically the Armenia kit size hard to say you know but I don't think it will be a big ticket size. I I I I I don't know.

Speaker #1: I don't want to speculate. But it will not be $100 million; more than $100 million—it most likely will not be more than $50 million.

Speaker #1: I don't know. There's somewhere—you know, somewhere that ticket size. I mean, for us, what's important is to buy market leaders, to buy meaningful businesses with meaningful growth, with meaningful...

Speaker #1: Consumer-driven franchise, so basically that's going to be our focus. But the ticket size, you know, it will not be more than 100 for sure.

Speaker #1: On the other business how big is going to be I don't know. We actually had the questions whether we have somethings to sell as well in other businesses there are not many much left there we have some wine business maybe we will sell that one over time it's capital heavy depends you know where where whether we find the buyers or not but I think important point that other businesses have been delivered so significantly that it is only upside what we have there.

Irakli Gilauri: Depends whether we find the buyers or not. I think important point that other businesses have been delivered so significantly, that it is only upside, what we have there. We de-risked it, this side of the portfolio a lot over time by selling the hospitality businesses, some commercial real estates, now the real estate development business we sold. We sold some beer business, basically over time. Basically, these other businesses have been significantly de-risked, and the management time and attention has been decreased significantly on that part of the business. It's going to be at 10% or it's going to be 5%, hard to say, basically, it's going to be insignificant over time.

Speaker #1: So we don't have a—we de-risked this side of the portfolio a lot over time, by selling the hospitality businesses, some real estate, commercial real estate. Now the real estate development business result—we sold some beer business basically over time.

Speaker #1: So, basically, the other businesses have been significantly de-risked, and the management time and attention has decreased significantly on that part of the business.

Speaker #1: So it's going to be a 10% or it's going to be 5% hard to say but basically these are it's going to be insignificant over time.

Ben Maher: Great. Thank you. Can I also just quick ask another question, please, if that's okay?

Speaker #4: Great, thank you. Can I also just quickly ask another question, please, if that's okay? Just on this—as many as you want.

Irakli Gilauri: Sure. As many as you want.

Speaker #2: I think it's slide 17 of the presentation. It was the large private portfolio, you know—revenue growth against nominal GDP. Those are nice slides in the deck.

Ben Maher: I think it was slide 17 of the presentation. It was the large private portfolio revenue growth against nominal GDP. Thought it was a nice slide in the deck. I think it was about seven percentage point outperformance versus nominal GDP. I am just interested how you see that evolving or how sustainable you think that is going forward. Thank you.

Speaker #2: I think it was about a 7 percentage point kind of outperformance versus nominal GDP. I'm just interested in how you see that evolving, or how sustainable you think that is going forward.

Speaker #2: Thank you.

Speaker #1: I think basically we have that's really demonstrates the management strength what we have in our private portfolio companies. When you can outpace the strong growth of the GDP can we grow like a 700x 700 80 bips can we grow 780 bips faster than the the GDP every quarter probably not but you know we want to grow faster significantly faster than the GDP growth.

Irakli Gilauri: I think, basically, that really demonstrates the management strengths, what we have in our private portfolio companies. When you can outpace the strong growth of the GDP. Can we grow like a 700, actually 780 basis points? Can we grow 780 basis points faster than the GDP every quarter? Probably not. We want to grow faster, significantly faster than the GDP growth. Let's see. We have another target now. How far can we outpace the nominal GDP growth?

Speaker #1: So let's see. Let's say we have another target now. How fast can we, how far can we outpace the nominal GDP growth?

Ben Maher: Okay. Yeah, more easier in the UK. Thank you.

Speaker #4: Okay. Yeah. More easier in the UK. Thank you.

Speaker #1: Yeah. In the UK, there's no problem with that.

Irakli Gilauri: Yeah, in UK, there's no problem with that.

Speaker #5: Thank you, Ben, for the question. So we have one question and a question and answer panel, which I'm going to read. Would it be appropriate to sell down Lion Finance significantly to give plenty of headroom to the ownership holding?

Moderator: Thank you, Ben, for the question. We have one question in the question and answer panel, which I'm gonna read. Would it be appropriate to sell down Lion Finance significantly to give plenty of headroom to the ownership holding? That was the question.

Anano Akhobadze: Thank you, Ben, for the question. We have one question in the question and answer panel, which I'm gonna read. Would it be appropriate to sell down Lion Finance significantly to give plenty of headroom to the ownership holding? That was the question.

Speaker #5: That was the question.

Irakli Gilauri: I don't really understand the meaning of ownership holding to give a headroom. Probably it means that we will have a significantly below the NCC ratio, probably is what it means. Basically, the Lion Finance Group for us, it's still undervalued, we don't want to sell down more. We are adjusting it that we are comfortable with the PIF, and now we are below 50%. We are down 47%, basically, we don't want to sell more, as we think that the Lion Finance Group prospects are good.

Speaker #1: I don't really understand the meaning of ownership holding to give a headroom. Probably it means that we would be we'll have a significantly below the P/F ratio probably.

Speaker #1: Probably that's what it means. But basically the the Lion Finance group is for us is still undervalued. So we don't want to sell down more so we we are adjusting it that we are comfortable with the P/F and now we are below 50% we are at around 47% but basically we don't want to sell more as we think that the Lion Finance group prospects are are good.

Moderator: Thanks, Irakli. These were the questions that we had right now currently. I see that we have one incoming question now. Any update on outlook for the education business? Is this still a strong contender for extra investment?

Anano Akhobadze: Thanks, Irakli. These were the questions that we had right now currently. I see that we have one incoming question now. Any update on outlook for the education business? Is this still a strong contender for extra investment?

Speaker #5: Thanks Eric Lee. So these were the questions that we had right now currently. But I see that we have one incoming question now. Any update on outlook for the education business?

Speaker #5: Is this still a strong contender for extra investment?

Irakli Gilauri: Absolutely. We will be investing in Georgia as well as Armenia, actually. We will look at the opportunities in Armenia, especially international schools. We'll have a look at it, in Georgia, we say one of our strategic focus is education.

Speaker #1: Absolutely. I would like that industry, and we will be investing in Georgia as well as Armenia. Actually, we will look at the opportunities in Armenia, especially international schools; we will have a look at it. But in Georgia, one of our strategic focuses is education.

Moderator: Thanks a lot. I would like to remind our attendees, if you have any questions, you can type those in the question and answer panel or raise your hands.

Anano Akhobadze: Thanks a lot. I would like to remind our attendees, if you have any questions, you can type those in the question and answer panel or raise your hands.

Speaker #5: Thanks a lot. I would like to remind our attendees that if you have any questions, you can type them in the question and answer panel or raise your hand.

Irakli Gilauri: Seems like all is clear. Thanks, Arano, and thanks to our shareholders for spending time in this holiday season to listen to us. We had, by the way, record attendees. Thanks a lot, see you soon. Bye-bye. Enjoy the holidays.

Speaker #1: Seems like all is clear. You know and thanks Anano and thanks to our shareholders for spending time in this holiday season. To listen to us and we we had by the way a record attendee attendees thanks at all and see you soon.

Speaker #1: Bye-bye. Enjoy the holidays.

[Company Representative] (Georgia Capital): Goodbye

Operator: Goodbye

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