Consolidated statement of comprehensive income For the year ended 31 December

MYCOMPUTER:
It is better to have year
2016 on this sheet as
(Thousands of Georgian Lari) well

2018

Sales of inventory property 94,916

Cost of sales – inventory property (85,471)
Gross profit on sale of inventory property 9,445
Rental income
5,467
Property operating expense (879)
Net rental income 4,588
Revenue from construction services 27,864
Cost of construction services
(23,637)
Gross profit from construction services 4,227
Revenue from hospitality services 5,151
Cost of hospitality services (3,206)
Gross profit from hospitality services 1,945
Net gain from revaluation of investment property 19,648
Net gain from revaluation of investment property under construction
14,391
Net gain from revaluation 34,039
Other revenue
209
Administrative employee benefits expense (6,018)
Other general and administrative expenses (4,860)
Depreciation (972)
Marketing and advertising expense (3,544)
Non-recurring expenses (7,557)
Operating profit 31,502
Finance income 517
Finance expense (4,035)
Net foreign exchange loss (1,570)
Net other non-operating income 219
Profit before income tax expense 26,633
Income tax expense 0
Profit for the year 26,633

- attributable to the shareholder of the Company 26,629

- attributable to non-controlling interests 4
Other comprehensive income to be reclassified to profit or loss in
subsequent periods

Revaluation gain on shares of the parent held for settlement of the Group’s 0
cash-settled share based transactions
Revaluation gain on shares of the parent held for settlement of the Group’s 0
cash-settled share based transactions
Other comprehensive income not to be reclassified to profit or loss in
subsequent periods

Revaluation of properties transferred to investment properties 490

Exchange difference on translation of operations to presentation currency 6,727
MYCOMPUTER:
Total other comprehensive income General
7,217comments needed
about deferred revenue,
prepayments, etc

Total comprehensive income for the year 33,850

- attributable to the shareholder of the Company 33,507

- attributable to non-controlling interests 343
MYCOMPUTER:
Not correct, please check

Financial Ratios:
I.Short-Term Solvency, or Liquidity, Ratios
Current
CurAssets/Current
Liabilities
Current Assets-
QuiInventory/Current
Liabilities
CasCash/Current
Liabilities
II. Long-Term Solvency,or Financial Leverage, Ratios
TotaTotal assets-Total
equity/Total assets

DebTotal Debt/Total
equity
EquTotal
equity
assets/Total

TimEBIT/Interest
CasEBITDA/Interest
III.Asset Utilization,or Turnover Ratios
Inv COGS/Average
Inventory
365/Inventory
Days
Turnover
 RecSales/Average
receivable
365/Receivables
Days
turnover
PayCOGS/Average A/P
Day365/Payable turnover
TotSales/Average
assets
total

IV. Profitability Ratios

ProNet income/Sales
RetNet income/Total
Assets

RetNet income/Total
Equty
Net income/Sales
ROEXSales
AssetsXAssets/Equity
V.Market Value Ratios
Price per
Pricshare/Earnings per
share
Market value per
Marshare/Book value per
share

Market
EV capitalization+market
value of debt-
cash+preference share

EV EV/EBITDA
 December
MPUTER: Consolidated statement of financial position
ter to have year
this sheet as
As at 31 December

2017 (Thousands of Georgian Lari)

Assets
92,643
(84,607) Non-current assets
8,036 Investment property
Investment property under construction
3,599
(557) Inventory property
3,042 Property and equipment
0 Long-term loans issued
Long-term contract assets with
0 customers
0 Prepayments and other assets
0
0 Current assets
0 Inventory property
1,183 Prepayments and other assets
Investment securities
21,380
22,563 Short-term loans issued
Short-term contract assets with
277 customers
(2,818) Trade and other receivables
(2,906) Time deposits with credit institutions
(508) Cash at bank
(2,855)
(128) Total assets
24,703
Equity
816
(186) Share capital
(117) Share premium
0 Translation and other reserves
25,216 Retained earnings
(1,554) Total shareholders’ equity
23,662 Non-controlling interests
Total equity
23,662 Non-current liabilities
0 Loans received
Debt securities issued
Retention payable to general contractor
(51)
 Current liabilities
Short-term portion of long-term loans
received
Debt securities issued
0 Deferred revenue
(1,027) Trade and other payables
MYCOMPUTER:
General comments needed
Retention payable to general contractor
(1,078)
about deferred revenue,
prepayments, etc
Accruals for employee compensation
22,584

22,584 Other liabilities

MPUTER: 0
rrect, please check
Total liabilities

Total equity and liabilities

2018

1.23

0.92

0.29

0.56

1.27

2.272077838832
7.60
7.84

1.97

185.65
 27.68

13.19
8.83
41.32

0.22

0.28

0.05

0.12

0.12

0.156946143131 nmf

0.018478087405 nmf

4465499.63 nmf
141 nmf
ent of financial position

2018 2017

160,158 115,143

117,376 35,000
64,487 8,865
8,404 49,641
6,250 0

1,620 0
9,824 7,400
368,119 216,049

36,129 50,818
62,052 44,430

557 3,329
1,071 0

966 1,008
6,528 330
3,974 114
34,573 34,751
145,850 134,780
513,969 350,829

5,091 4,180
119,710 82,793
21,338 14,460
69,311 52,779
215,450 154,212
10,761 10,418
226,211 164,630

146,325 42,885
19,609 64,121

2,797 2,400
168,731 109,406
 4,301 16,107
67,697 1,001
23,010 46,660
12,380 6,970

2,497 2,361

3,267 1,500

5,875 2,194
119,027 76,793
287,758 186,199

513,969 350,829
 Consolidated statement of financial position As at 31 December

(Thousands of Georgian Lari)

Assets 2017 2016

Non-current assets
Investment property 115,143 112,439
Investment property under construction 35,000 1,390
Inventory property 8,865 95,105
Property and equipment, net 49,641 7,050
Prepayments and other assets 7,400 19,297
216,049 235,281
Current assets
Inventory property 50,818 17,904
Prepayments and other assets 44,430 22,288
Investment securities available for sale 3,329 2,842
Contract assets with customers 1,008 0
Trade and other receivables 330 703
Time deposits with credit institutions 114 0
Cash at bank 34,751 93,210
134,780 136,947
Total assets 350,829 372,228
Equity

Share capital 4,180 4,180

Share premium 82,793 85,467
Translation reserve 14,460 15,538
Retained earnings 52,779 28,498
Total shareholders’ equity 154,212 133,683
Non-controlling interests 10,418 0
Total equity 164,630 133,683
Non-current liabilities
Loans received 42,885 31,153
Debt securities issued 64,121 64,910
Deferred revenue 0 67,414
Retention payable to general contractor 2,400 1,376
109,406 164,853
Current liabilities
Loans received 16,107 11,665
Debt securities issued 1,001 38,167
Deferred revenue 46,660 10,511
Current income tax liabilities 0 3,127
Trade and other payables 6,970 3,821
Retention payable to general contractor 2,361 564
Accruals for employee compensation 1,500 991
Other liabilities 2,194 4,846
76,793 73,692
Total liabilities 186,199 238,545
Total equity and liabilities 350,829 372,228

Financial Ratios: 2017

I.Short-Term Solvency, or Liquidity, Ratios
Current
Current Ratio
Assets/Current
Liabilities 1.7551079

Quick
Current Ratio
Assets-
Inventory/Curr
ent Liabilities 1.0933549
Cash/Current
Cash ratio
Liabilities 0.4525282
II. Long-Term Solvency,or Financial Leverage, Ratios
Total assets-
Total
Total debt ratio
equity/Total
assets
0.53074

TotalDebt-equity
Debt/Total ratio
equity 1.131015
Total
Equity Multiplier
assets/Total
equity 2.131015
Times interest136.56989
EBIT/Interest earned ratio
Cash coverage139.30108
EBITDA/Interest ratio
III.Asset Utilization,or Turnover Ratios
COGS/Average
Inventory Turnover
Inventory 2.4622974
365/Inventory
Days' sales in inventory
Turnover 148.23555
 Sales/Average
Receivable Turnover
receivable 179.36689
365/Receivables
Days' sales in receivables
turnover 2.0349352
COGS/Average
A/P Payable turnover
15.68103
365/Payable
Days' payable outstanding
turnover 23.276531
Sales/Average
totalTotal
assetsasset turnover
0.2562537
IV. Profitability Ratios
Net
Profit Margin
income/Sales 0.2554106
Net
Return on Assers(ROA)
income/Total
Assets 0.067446
Net
Return on Equity(ROE)
income/Total
Equty 0.1437284
Net
income/Sales
ROE
XSales
AssetsXAssets/E
quity
0.1437284
V.Market Value Ratios
Price per
Price-earnings ratio
share/Earnings
per share
0.1766523
Market value per
Market-to-book ratio
share/Book
value per share 0.0253899

Market
capitalization+m
arket value of
debt-EV
cash+preference
share
4331394.6
EV multiple 167.17077
EV/EBITDA
 Consolidated statement of financial position As at 31 December

(Thousands of Georgian Lari)

sales of inventory property

-85.52731 cost of sales-inventory property
-91.32584 profit on sale of inventory property
-90.0491
88.96742 rental income
property operating expense
net rental income
net gain from revaluation of investment property
net gain from revaluation of investment property under construction
net gain from revaluation

other revenue
employee benefits expense
other general and administrative expenses
depreciation and amortization
marketing and advertising expense
non-recurring items
operating profit

finance income
finance expense
net foreign exchange gain/(loss)
profit before income tax expense

income tax expense

profit for the year

Other comprehensive income to be reclassified to profit or loss in subsequent periods

revaluation gain on investment securities available for sale

Other comprehensive income not to be reclassified to profit or loss in subsequent periods

Exchange difference on translation of operations to presentation currency
total comprehensive income for the year
 2016

1.85837

1.6154128

1.2648591

0.6408572

1.7844079

2.7844079
69.461905
70.619048
 0.11

0.0292939

0.0815661

0.0815661

0.3833407 nmf

0.0312676 nmf

4325282 nmf
291.65756 nmf
 2017 2016

92,643.00 96,347.00
(84,607) (82,403)
8,036.00 13,944.00

3,599.00 2,778.00
(557) (224)
3,042.00 2,554.00
1,183.00 2,553.00
21,380.00 0.00
22,563.00 2,553.00

277.00 191.00
(2,818) (1,498)
(2,906) (2,026)
(508) (243)
(2,855) (2,339)
(128) (407)
24,703.00 12,729.00

816.00 715.00
(186) (210)
(117) 1,143.00
25,216.00 14,377.00

(1,554) (3,473)
23,662.00 10,904.00

uent periods
(51) 286.00

sequent periods
(1,027) 15,252.00
22,584.00 26,442.00
 Consolidated statement of comprehensive income For the year ended 31 December

(Thousands of Georgian Lari)

2018

Sales of inventory property 94,916

Cost of sales – inventory property (85,471)
Gross profit on sale of inventory property 9,445
Rental income 5,467
Property operating expense (879)
Net rental income 4,588
Revenue from construction services 27,864
Cost of construction services (23,637)
Gross profit from construction services 4,227
Revenue from hospitality services 5,151
Cost of hospitality services (3,206)
Gross profit from hospitality services 1,945
Net gain from revaluation of investment property 19,648
Net gain from revaluation of investment property under construction 14,391
Net gain from revaluation 34,039
Other revenue 209
Administrative employee benefits expense (6,018)
Other general and administrative expenses (4,860)
Depreciation (972)
Marketing and advertising expense (3,544)
Non-recurring expenses (7,557)
Operating profit 31,502
Finance income 517
Finance expense (4,035)
Net foreign exchange loss (1,570)
Net other non-operating income 219
Profit before income tax expense 26,633
Income tax expense 0
Profit for the year 26,633
EBITDA

26,633.00
December 117,376
124% 15% 3%
20%
5% 5%
2019 2020 2021 2022 2023 3) 2019
40%
46950.4
112,428 92641 102136 112605 124147 207108.4
(100,024) (83,482) (91,627) (100,891) (111,493)
12,404 9,158 10,510 11,714 12,654 3.41%
7,070 8,272 9,474 9,474 9,474 4) 2016
(934) (1,234) (1,396) (1,354) (1,388) 8.06%
6,136 7,037 8,078 8,120 8,086
29,561 31,361 33,271 35,297 37,447 3%
(25,076) (26,604) (28,224) (29,943) (31,766) 3% 84.83% Cost of Constr services/Reve
4,484 4,758 5,047 5,355 5,681
5,254 5,359 5,466 5,576 5,687 2%
(3,270) (3,336) (3,402) (3,470) (3,540) 62.24% Cost of hosp.services/Rev.from hosp se
1,984 2,024 2,064 2,105 2,147
0 0 0 0 0 2) 2016
0 0 0 0 0 96347
0 0 0 0 0 (82,403)
0 0 0 0 0 85.53%
(6,384) (6,773) (7,186) (7,623) (8,088) 3% 3%
(5,108) (5,419) (5,749) (6,099) (6,470) 80.00%
(262) (280) (289) (297) (306) 3%
(3,464) (3,056) (3,443) (3,660) (4,105) 13) 2016
0 0 0 0 0 96347
40,226 38,505 42,365 44,974 47,538 (2,339)
2.43%
(18,044) (14,484) (12,456) (12,371) (12,270) 13% 8% 8%

m2 - assumptions for year

1) Sales of Inventory Prope
22,182 24,021 29,909 32,603 35,267 flats. The quantity sold wil
0 0 0 0 0 decrease afterwards by 20
average price per square m
22,182 24,021 29,909 32,603 35,267 5% afterwards. All increase
10,052 7,729 9,321 9,912 9,905 2) Cost of Sales - Inventory
remain the same portion o
3) Rental Income - It will b
Year 2018, however, Inves
Investment Property (40%
4) Property Operating Exp
average of the last 3 years
5) Revenue from Construc
years in real terms. Thus, t
used to calculate the cash
6) Cost of Construction Ser
Construction Services as in
7) Revenue from Hospitali
for the next 5 years.
8) Cost of Hospitality Servi
Services as in Year 2018
9) Revaluations - No assum
10) Other Revenue - No as
11) Administrative Employ
increased by 3% each year
years in real terms. Thus, t
used to calculate the cash
6) Cost of Construction Ser
Construction Services as in
7) Revenue from Hospitali
for the next 5 years.
8) Cost of Hospitality Servi
Services as in Year 2018
9) Revaluations - No assum
10) Other Revenue - No as
11) Administrative Employ
increased by 3% each year
12) Other General & Admi
Employee Benefits Expens
13) Marketing & Advertisin
Inventory Property as the
14) Non-Operating Expens

Please, construct the portio

 inv. Property under construction in 2018
117376
inv. Property in 2018
2020 2021 2022 2023 160158
30% 30% 0% 0%
35212.8 35212.8 0 0 Additional investment property
242321.2 277534 277534 277534 Total

2017 2018 2019 2020 2021 2022 2023

15.48% 16.08% 13.21% 14.92% 14.73% 14.29% property op.exp/rental income
13.21% 14.92% 14.73% 14.29% 14.65% Average percentage of last 3 years

Cost of Constr services/Revenue from Constr. Services

osp.services/Rev.from hosp services

2017 2018 2019 2020 2021 2022 2023

92643 94916 112,428 92,641 102,136 112,605 124,147
(84,607) (85,471) (100,024) (83,482) (91,627) (100,891) (111,493)
91.33% 90.05% 88.97% 90.11% 89.71% 89.60% 89.81%

2017 2018 2019 2020 2021 2022 2023

92,643 94,916 112,428 92,641 102,136 112,605 124,147
(2,855) (3,544) (3,464) (3,056) (3,443) (3,660) (4,105)
3.08% 3.73% 3.08% 3.30% 3.37% 3.25% 3.31%
10%

m2 - assumptions for years 2019-2023 - Income Statement

1) Sales of Inventory Property - imagine m2 got the permits to build even more blocks of
flats. The quantity sold will increase by 15% in year 2019, but due to Coronavirus it will
decrease afterwards by 20% in 2020. From 2021 it will increase by 5% each years. The
average price per square meter will increase by 3% each year in the next 2 years and by
5% afterwards. All increases will be in Nominal Terms.
2) Cost of Sales - Inventory Property - it is expected, that Cost of Inventory Property will
remain the same portion of Sale of Inventory Property as it was during last 3 years 
3) Rental Income - It will be the same percentage of the Investment property as it was in
Year 2018, however, Investment Property under construction will gradually transfer to
Investment Property (40% in 2019; 30% in 2020; 30% in 2021)
4) Property Operating Expense - it will be the same portion of the Rental Income as the
average of the last 3 years
5) Revenue from Construction Services - it will increase by 3% each year for the next 5
years in real terms. Thus, target inflation rate set by National Bank of Georgia also must
used to calculate the cash flow in Nominal Terms.
6) Cost of Construction Services - it will be the same portion of Revenue from
Construction Services as in Year 2018 
7) Revenue from Hospitality Services - the growth will be modest at 2% in Nominal terms
for the next 5 years.
8) Cost of Hospitality Services - it will be the same portion of Revenue from Hospitality
Services as in Year 2018
9) Revaluations - No assumption is made, assume to be zero.
10) Other Revenue - No assumption is made, assume to be zero. 
11) Administrative Employee Benefits Expense -  this Financial Statement line will be
increased by 3% each year in Real Terms.
years in real terms. Thus, target inflation rate set by National Bank of Georgia also must
used to calculate the cash flow in Nominal Terms.
6) Cost of Construction Services - it will be the same portion of Revenue from
Construction Services as in Year 2018 
7) Revenue from Hospitality Services - the growth will be modest at 2% in Nominal terms
for the next 5 years.
8) Cost of Hospitality Services - it will be the same portion of Revenue from Hospitality
Services as in Year 2018
9) Revaluations - No assumption is made, assume to be zero.
10) Other Revenue - No assumption is made, assume to be zero. 
11) Administrative Employee Benefits Expense -  this Financial Statement line will be
increased by 3% each year in Real Terms.
12) Other General & Administrative Expenses - will be 80% of the Administrative
Employee Benefits Expense
13) Marketing & Advertising Expense - it will be the same portion of the Sales of
Inventory Property as the average of the last 3 years
14) Non-Operating Expenses -  No assumption is made, assume to be zero.

Please, construct the portion of the P&L model and calculate EBITDA for the next 5 years.
of last 3 years
 Consolidated statement of financial position

As at 31 December

(Thousands of Georgian Lari)

2018 2019 2020 2021

Assets

Non-current assets
Investment property 160,158 170,280 181,042 192,484
Investment property under construction 117,376 139,032 114,562 126,305
Inventory property 64,487 64,487 64,487 64,487
Property and equipment 8,404 8,992 9,622 9,910
Long-term loans issued 6,250 9,250 12,250 15,250
Long-term contract assets with customers 1,620 1,620 1,620 1,620
Prepayments and other assets 9,824 9,824 9,824 9,824
368,119
Current assets
Inventory property* 36,129 68,006 610 89,762
Prepayments and other assets 62,052 62,052 62,052 62,052
Investment securities 557 557 557 557
Short-term loans issued 1,071 1,071 1,071 1,071
Short-term contract assets with customers 966 966 966 966
Trade and other receivables** 6,528 2,713 7,440 -1,843
Time deposits with credit institutions 3,974 3,974 3,974 3,974
Cash at bank 34,573 25,669 72,332 40,724
145,850
Total assets 513,969

Equity

Share capital 5,091 5,091 5,091 5,091

Share premium 119,710 119,710 119,710 119,710
Translation and other reserves 21,338 21,338 21,338 21,338
Retained earnings 69,311 91,493 115,514 145,423
Total shareholders’ equity 215,450
Non-controlling interests 10,761
Total equity 226,211
Non-current liabilities
Loans received 146,325 141060 135564 129843
Debt securities issued 19,609 19,609 19,609 0
Retention payable to general contractor 2,797 2,797 2,797 2,797
168,731
Current liabilities
Short-term portion of long-term loans received 4,301 0 0 0
Debt securities issued 67,697 0 0 0
Deferred revenue 23,010 23,010 23,010 23,010
Trade and other payables*** 12,380 9,543 13,329 16,795
Retention payable to general contractor 2,497 2,497 2,497 2,497
Accruals for employee compensation 3,267 3,267 3,267 3,267
Other liabilities 5,875 5,875 5,875 5,875
119,027
Total liabilities 287,758
Total equity and liabilities 513,969

inventory property* Average inventory/COGS*365=190

(36129+x/2)/100024*365=190
36129+x/2=(190/365*100024)
x=2*52067-36129

52067 34308 45186

Trade and other Receivables**

4620 5076 2798

Trade and other Payables*** 10962 11436 15062

Trade and other payables 12380 12999 13649 14331

in case of 21)
 PPE Growth 7% 3%
Sopio Tsikhistavi:
3000
in thousands

2022 2023

204,648 217,582
139,251 153,524 0.1845 -0.176 0.1025 0.1025 0.1025
64,487 64,487 6.3%
10,208 10,514
18,250 21,250 1202.5 1592.5 1982.5 2372.5 2762.5
1,620 1,620
9,824 9,824

20,804 83,053
62,052 62,052
557 557
1,071 1,071 85.68 85.68 85.68 85.68 85.68
966 966
12,332 4,674
3,974 3,974
138,302 157,251

5,091 5,091
119,710 119,710
21,338 21,338
178,026 213,294 r/e ending=r/e bgn+net income-dividends
Dividends=0

123909 117777 11284.8360218574 10845.13 10387.48 9912.756 9422.13

0 0 1960.9 1960.9
2,797 2,797

7%
0 0 301.07 164.8184
0 0 6092.73 3345.431 9%
 23,010 23,010
10,846 31,918 5%
2,497 2,497
3,267 3,267
5,875 5,875

190, 150, 180, 200, 170 Days 190 150 180 200
Inventory 68006 610 89762 20804

55283 51928

Days 15 20 10 17
5245 8503 Trade and other Receivables 2713 7440 -1843 12332

13821 21382 Days 40 50 60 50

Trade and other Payables 9543 13329 16795 10846

15048 15800 5%
 გიგზავნით დავალების პირობას. ამის მიხედვით უნდა ააწყოთ საპროგნოზო საბალანსო უწყისი (Balance
Sheet) და შესაბამისი არაპირდაპირი ფულადი ნაკადების მოძრაობის უწყისი (Indirect Cash Flow). ასევე
დაგჭირდებათ მოგება-ზარალის უწყისის (Income Statement) დასრულება და შემდეგ კი უნდა გააკეთოთ
კომპანიის შეფასება DCF-ით.
1) Property & Equipment - the company will increase its Gross PPE balance (assume that current PPE balance is Gross
amount) by 7% annually in the first 2 years and then by 3% each year. Assume, that depreciation will be 3% of the Net
PPE balance each year.
2) Investment Property - this balance will be gradually increased from Investment Property under Construction .
3) Inventory Property (long-term) - will remain the same as was in 2018
4) Long-term Loans issued - it will increase each year by 3mm and the interest rate will be 13% on average balance
outstanding
5) Long-term contract assets with customers -  will remain the same as in 2018.
6) Prepayments and Other Assets (long-term) -  will remain the same as in 2018.
7) Inventory Property - Days sales in Inventory will be 190, 150, 180, 200, 170 in the following years, respectively.
8) Prepayments & Other Assets (short-term) - will remain the same as in 2018
9)  Investment Securities -  will remain the same as in 2018.
10) Short-term Loans Issued - will remain the same as in 2018 and the interest rate will be 8%.
11) Short-term contract assets with customer -  will remain the same as in 2018 
12) Trade and Other Receivables - Accounts Receivable days will be 15, 20, 10, 17, 25 in the following years, respectively
13) Time deposits with Credit Institutions -  will remain the same as in 2018 
14)  Cash at Bank - will be derived from the Indirect Cash Flow Statement that you will construct   
15) Equity - Only Retained Earnings will be changed based on the assumptions given. Every other line of Equity will
remain the same. 
16) Loans received (long-term) - Assume current loan balance will be repayable over 15 years, with monthly payments
and with an average of 8% interest rate. 
17) Debt Securities Issued (long-term) - Assume debt securities will be repayable with one bullet payment in 2 years
with an average of 10% interest rate. 
18) Retention Payable to General Contractor (long-term) - will be the same as in 2018
19) Short-term Portion of long-term loans received - will be fully repaid in 2019 with monthly payments at the interest
rate of 7%.
20) Debt Securities Issued (current)- will be fully repaid at the end of 2019 and the interest rate on it is assumed to be
9%
21) Trade and Other Payables - will increase by 5% each year
22) Deferred Revenue - will be the same as in 2018
23) Trade and Other Payables - Days' Payable outstanding will be 40, 50, 60, 50, 70 in the following years, respectively.
24) Retention Payable to General Contractor (short-term) - will be the same as in 2018
25) Accruals for Employee Compensation - will be the same as in 2018
26) Other Liabilities - will be the same as in 2018
Assume that taxes are payable at the rate of 15% on total EBT (Earnings Before Taxes). In order to do the DCF valuation,
one way is to discount FCFF (Free Cash Flow to Firm) with the WACC (Weighted Average Cost of Capital). You can
calculate the FCFF in this way: FCFF = EBIT * (1-Tax Rate) + Depreciation - Capital Expenditure (CAPEX) (+/-) Change in
Net Working Capital (NWC). For the terminal growth rate of FCFF calculate it as 30% of the Geometric mean of growth o
the last 5 years.

Assume that average Long-term interest rate on borrowings (Cost of Debt) is 13% and Cost of Equity is 20% and the
capital structure will be the same in the long-term.

8%
 short term loans issued 8%
long term loans issued 13%
short term loans received 7%
long term loans received 8%
debt securities LT 10%
debt securities ST 9%

170
83053

25
4674

70
31918
საბალანსო უწყისი (Balance
(Indirect Cash Flow). ასევე
ემდეგ კი უნდა გააკეთოთ

current PPE balance is Gross

eciation will be 3% of the Net

ty under Construction .

e 13% on average balance

wing years, respectively.

e 8%.

he following years, respectively.

onstruct   
ry other line of Equity will

years, with monthly payments

e bullet payment in 2 years

nthly payments at the interest

est rate on it is assumed to be

following years, respectively.

order to do the DCF valuation,

Cost of Capital). You can
ture (CAPEX) (+/-) Change in
he Geometric mean of growth of

st of Equity is 20% and the

Consolidated statement of cash flows
2019 2020 2021 2022
Operationg Activities
Net income 22,182 24,021 29,909 32,603
Net gain from revaluation of investment property
and investment property under construction 0 0 0 0
Loss from foreign exchange differences 0 0 0 0
Depreciation&Amortizaton 262 280 289 297
Finance income 0 0 0 0
Finance expense 18,044 14,484 12,456 12,371
Operating cash (outflow) inflow before changes in
working capital 40,488 38,785 42,654 45,271

Change in inventory property -31,877 67,396 -89,152 68,958

Change in deferred revenue 0 0 0 0
Change in retention payable to the constructor 0 0 0 0
Change in prepayments and other current assets 0 0 0 0
Change in contract assets with customers 0 0 0 0
Change in trade and other payables -2,837 3,786 3,466 -5,949
Change in other current liabilities 0 0 0 0
Change in trade and other receivables 3,815 -4,727 9,283 -14,176
Change in time deposits with credit institutions 0 0 0 0
Cash flows used in operations 9,590 105,240 -33,749 94,104

Interest received 1,288 1,678 2,068 2,458

Interest paid -19,640 -16,316 -10,388 -9,913
Income tax paid 0 0 0 0
Net cash flows (used in)/from operating activities 31,726 129,388 585 131,921

Investing Activities

Acquisition in LT Loans Issued -3,000 -3,000 -3,000 -3,000

Acquisition in investment property -10,122 -10,762 -11,442 -12,165
Acquisition in investment under construction -21,656 24,470 -11,743 -12,946
Acquisition Property and equipment -588 -629 -289 -297
Net cash flows (used in)/from invensting activities -35,366 10,078 -26,473 -28,409

Financing Activities

Loans received -5,265 -5,496 -5,721 -5,934

Debt securities issued 0 -87306 0 0
Dividends 0 0 0 0
Issued shares 0 0 0 0
Net cash flows (used in)/from Financing activities -5,265 -92,802 -5,721 -5,934

Net inrease/decrease in cash -8,904 46,664 -31,609 97,578

Cash and cash equivalents at 1 January 34,573 25,669 72,332 40,724

Cash and cash equivalents at 31 December 25,669 72,332 40,724 138,302

 2023

35,267

0
0
306
0
12,270

47,844

-62,249
0
0
0
0
21,072
0
7,659
0
14,325

2,848
-9,422
0
55,595

-3,000
-12,934
-14,273
-306
-30,513

-6,133
0
0
0
-6,133

18,949
138,302

157,251
Tax rate 15%
Cost of Debt 13%
Cost of Equity 20%
Terminal Growth rate 5.0%

2018 2019 2020 2021 2022 2023

EBIT 31,502 40,226 38,505 42,365 44,974 47,538
1-Tax rate 85% 85% 85% 85% 85% 85%
Depreciation 972 262 280 289 297 306
CAPEX -30174 -32,040 13,428 -23,473 -25,409 -27,513
NWC 64,248 95,146 28,692 105,094 56,261 89,780
Change in NWC 23,904 30,898 -66,455 76,403 -48,833 33,518
FCFF 21,479 33,313 (20,017) 89,229 (35,717) 46,718

0 1 2 3 4 5
PV of FCFF 21479 28864 -15028 58043 -20131 22816
Sum of FCFF 96042
112907
Enterprise Value 208,949
Net Debt 203,359
Equity Value 5,590
Shares Outstanding 417994.663
Intrinsic Value Per Share 0.013
 Assume that taxes are payable at the rate of 15% on total EBT (Ea
to do the DCF valuation, one way is to discount FCFF (Free Cash F
(Weighted Average Cost of Capital). You can calculate the FCFF in
Rate) + Depreciation - Capital Expenditure (CAPEX) (+/-) Change
For the terminal growth rate of FCFF calculate it as 30% of the Ge
last 5 years.
Assume that average Long-term interest rate on borrowings (Cos
Equity is 20% and the capital structure will be the same in the lon

40,344 NWC in 2017 2018

Equity 226,211 WACC
Debt 237,932
Debt+Equity 464,143
Cost of debt 13%
Cost of equity 20%

231193

2018 2019 2020 2021 2022 2023

FCFF 21479 33319 -20010 89236 -35709 46726

2.2
1.2
0.2
30% 5.0%
t the rate of 15% on total EBT (Earnings Before Taxes). In order
y is to discount FCFF (Free Cash Flow to Firm) with the WACC
al). You can calculate the FCFF in this way: FCFF = EBIT * (1-Tax
penditure (CAPEX) (+/-) Change in Net Working Capital (NWC).
FCFF calculate it as 30% of the Geometric mean of growth of the
interest rate on borrowings (Cost of Debt) is 13% and Cost of
ucture will be the same in the long-term.

15.41%