#1GEORGIA CAPITAL Investor presentation: 1H19 results 10 x = 10 y 15 August 2019#2Forward looking statements GEORGIA CAPITAL Disclaimer This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Georgia Capital PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. By their nature, these forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, certain of which are beyond our control, include, among other things: currency fluctuations, including depreciation of the Georgian Lari, and macroeconomic risk; regional instability; regulatory risk across a wide range of industries; portfolio company strategic and execution risks; investment risk and liquidity risk and other key factors that indicated could adversely affect our business and financial performance, which are contained elsewhere in this document and in our past and future filings and reports and also the 'Principal Risks and Uncertainties' included in Georgia Capital PLC's Annual Report and Accounts 2018 and in Georgia Capital PLC's 1H19 results announcement. No part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in Georgia Capital PLC or any other entity, and must not be relied upon in any way in connection with any investment decision. Georgia Capital PLC and other entities undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Nothing in this presentation should be construed as a profit forecast. Page 2#3Content 1. 1H19 results discussion | Georgia Capital 2. Georgia Capital strategy 3. Portfolio overview 4. Georgian macro overview 5. Appendices GEORGIA CAPITAL Page 3#4Our portfolio at a glance Georgia Capital portfolio LSE Listed Private Late Stage GEORGIA HEALTHCARE GROUP First trading day on LSE premium segment -29 May 2018 Pipeline Georgia Healthcare Group 57% BANK OF GEORGIA Bank of Georgia 19.9%* Water Utility Housing Development P&C Insurance Education 100% 100% Early Stage Renewable Energy Hospitality and Commercial 65% 100% 100% Az Beverages 86% Auto Service Digital Services Georgia Capital aspires to deliver total shareholder returns of 10 times over 10 years 10x = 10y * As long as Georgia Capital's stake in BoG is greater than 9.9%, it will exercise its voting rights in Bank of Georgia in accordance with the votes cast by all other shareholders on all shareholder votes. GEORGIA CAPITAL Page 4#5CGEO:LN performance 6.1% 6.5% LSE premium listed, with more than 90% institutional shareholder base GCAP shareholders allocation by geography 22.6% O 7.8% ■ USA 27.7% ■ UK/Ireland 29.4% ■Luxembourg ■Scandinavia Number of outstanding shares as at 30-Jun-19 39,384,712 2,000,000 1,423,309 35,961,403 GEORGIA CAPITAL As of 14 August 2019 Cancellation of Unawarded shares, Number of shares shares Average daily trading volume - GBP 1.2 (million) Market Capitalization GBP 377.2 (million) Number of shares issued in May 2018 management trust outstanding ■Management* ■ other Rank GCAP top shareholders | 30-Jun-2019 Shareholder name Ownership 1 M&G Investment Management Ltd 8.17% Includes both vested and unvested awarded shares GBP 22.00 Average analyst value per share 18.83 17.62 17.00 17.12 GCAP share price 12.00 7.00 GCAP share price May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 2 Schroder Investment Management Ltd 4.94% Historical GCAP share price vs. Average analyst value per share 3 Aberdeen Standard Investments 4.85% 4 LGM Investments Ltd 4.09% 5 Norges Bank Investment Management 3.43% 16.59 17.00 6 Consilium Investment Management LLC 3.36% 16.70 16.79 16.53 7 Vanguard Group Inc 3.20% 8 Dunross & Co AB (including UBS) 3.01% 9 Van Eck Global 2.96% Jul-19 Aug-19 10 Dimensional Fund Advisors 2.81% Total 40.82% Average analyst value per share Page 5#630-Jun-19 53.90 1H19 performance highlights (management accounts) Georgia Capital NAV overview GEL thousands, except per share information NAV per share, GEL¹ Georgia Capital performance GEL thousands Total portfolio value creation 31-Dec-18 Change 1H19 44.32 (y-o-y) 21.6% 346,585 NAV per share, GBP1 14.81 13.05 13.5% of which, listed businesses 245,817 Net Asset Value (NAV) 1,938,365 1,688,221 14.8% of which, private businesses 100,768 Total portfolio value 2,237,523 1,883,374 18.8% Gross capital allocations 44,496 Liquid assets & loans issued 556,248 Net debt (304,519) 605,130 (196,915) -8.1% Share buybacks 59,935 54.6% Cash flow generation at GCAP level 52,063 Expense ratio² 2.0% Net income 305,627 GEL NAV per share up 21.6% to GEL 53.9 2.6 (0.8) 7.5% 3.7 14.8 GBP 6.5 (2.4) 13.8 GBP 13.1 GBP 44.3 NAV per share Valuation gains - 31-Dec-18 listed assets Valuation gains - Opex & Net interest private assets expense & FX loss 50.2 53.9 Buybacks & Awards NAV per share 30-Jun-19 Share cancellation & transfer³ NAV per share 30-Jun-19 (1) (2) We calculate NAV per share as total NAV divided by the number of issued shares at the end of the period less unawarded shares in management trust. This represents a change from previously adopted approach, when shares bought under the buyback programme and unvested management shares were also deducted for NAV per share calculation process. Last twelve months (LTM) GCAP operating expenses expressed as a percentage of average market capitalization during the last twelve months. (3) 2,000,000 treasury shares were cancelled and 686,468 treasury shares were transferred to Management Trust on 12 June 2019. GEORGIA CAPITAL Page 6#7GEL thousands unless otherwise noted Dec-18 Listed Portfolio Companies 977,827 NAV Statement | 30 June 2019 2a. Capital allocation (28,932) 2b. Buy-backs 3. Operating expenses 1. Value creation 4a. Net interest income 4b. Liquidity management Jun-19 Change % 245,817 1,194,712 22.2% GHG² 520,332 145,062 (3,981) 661,413 27.1% BOG² 457,495 100,755 (24,951) 533,299 16.6% Private Portfolio Companies 905,547 100,768 36,496 - 1,042,811 15.2% Late Stage 628,326 79,683 (26,036) 681,973 8.5% Water Utility 431,017 28,689 459,706 6.7% Housing Development 66,785 12,109 (18,036) 60,858 -8.9% P&C Insurance 130,524 38,885 (8,000) - 161,409 23.7% Early Stage 271,288 5,423 38,190 314,901 16.1% Renewable Energy 61,182 1,555 62,737 2.5% Hospitality and Commercial RE 149,079 7,086 26,266 - 182,431 22.4% Beverages 61,027 (1,663) 10,369 69,733 14.3% Of which, wine 56,771 2,593 269 59,633 5.0% Of which, beer 4,256 (4,256) 10,100 10,100 NMF Pipeline Education 5,933 15,662 24,342 45,937 NMF 7,071 4,138 11,209 58.5% Auto Service (1,326) 15,662 10,027 24,363 NMF Digital Services 8,790 8,790 NMF Other 188 1,387 1,575 NMF Total Portfolio Value (1) 1,883,374 346,585 7,564 2,237,523 18.8% Net Debt (2) (196,915) (10,202) (58,735) (9,568) 1,273 of which, Cash and liquid funds 299,650 (10,202) (58,735) (9,568) 14,050 (30,372) 88,764 (304,519) 54.6% 323,959 8.1% of which, Loans issued 305,480 13,115 (86,306) 232,289 -24.0% of which, Gross Debt (802,045) (25,892) (32,830) (860,767) 7.3% Net other assets/ (liabilities) (3) 1,762 2,638 (1,200) (7,041) - 9,202 5,361 NMF Net Asset Value (1)+(2)+(3) 1,688,221 NAV growth % 346,585 20.5% 0% (59,935) -3.6% (16,609) -1.0% 1,273 0.1% (21,170) -1.3% 1,938,365 14.8% 14.8% Shares outstanding Net Asset Value per share¹ Net Asset Value per share (GBP)1 38,089,558 44.32 13.05 (2,784,181) 656,026 35,961,403 53.90 -5.6% 21.6% 14.81 13.5% (1) We calculate NAV per share as total NAV divided by the number of issued shares at the end of the period less unawarded shares in management trust. This represents a change from previously adopted approach, when shares bought under the buyback programme and unvested management shares were also deducted for calculation. (2) Number of shares owned in BoG and GHG were 9,784,716 and 75,118,503 shares, respectively. GEORGIA CAPITAL Page 7#8Analysis of NAV movements | 1H19 GEORGIA CAPITAL Value creation across listed assets contributed 14.5% to NAV growth, while value creation in private assets contributed 6.0% GEL millions 1,688 Listed portfolio GEL 217 million Private portfolio GEL 138 million Change in net debt GEL 108 million 44 (59) 101 (8) (10) (10) 246 (29) (29) 3 1,938 NAV 31-Dec-18 Value creation Dividends received Value creation Dividends received Capital invested Buybacks Net capital allocations Cash operating expenses Liquidity management Other 1 NAV 30-Jun-19 (1) Liquidity management includes net interest income, foreign exchange losses and other immaterial movements. Page 8#9(1) (2) Net Asset Value evolution Change since 31-Dec-18 GEL 44.32 GEL 47.56 +7.3% NAV per share¹ GBP 13.05 GBP 13.53 +3.7% GEL millions, except per share information 1,810 1,688 Private Private 51% 54% 928 906 Listed 58% 978 Listed 61% 1,097 Net debt -12% (197) Net debt -12% (214) 31-Dec-18² 31-Mar-192 Change since 31-Dec-18 GEORGIA CAPITAL GEL 53.90 +21.6% GBP 14.81 +13.5% 1,938 Private 54% 1,043 Listed 62% 1,195 Net debt -16% (305) 30-Jun-192 We calculate NAV per share as total NAV divided by the number of issued shares at the end of the period less unawarded shares in management trust. This represents a change from previously adopted approach, when shares bought under the buyback programme and unvested management shares were also deducted for calculation. Components do not sum up, as NAV also includes net other assets/liabilities. Page 9#101.Value creation Private portfolio valuation overview | 30 June 2019 Business Valuation method Fair value, GEL '000 Fair value, GEL '000 Multiple Multiple Change applied applied 30-Jun-19 31-Dec-18 30-Jun-19 31-Dec-18 Late stage portfolio Water Utility Housing Development P&C Insurance 681,973 628,326 8.5% EV/EBITDA (LTM') 459,706 431,017 6.7% 9.0 8.8 Discounted Cash Flow 60,858 66,785 -8.9% n/a n/a P/E (LTM¹) 161,409 130,524 23.7% 9.1 7.4 Early stage portfolio 314,901 271,288 16.1% Renewable Energy At cost or EV/EBITDA (LTM¹) 62,737 61,182 2.5% n/a n/a Hospitality & Commercial Real Estate NAV 182,431 149,079 22.4% n/a n/a Beverages - wine EV/EBITDA (LTM¹) 59,633 56,771 5.0% 9.9 9.1 Beverages - beer EV/Sales (LTM¹) 10,100 4,256 NMF 2.1 2.2 Pipeline Education 45,937 5,933 NMF At cost 11,209 7,071 58.5% n/a Auto Service PTI business at EV/EBITDA (NTM1)² 24,363 (1,326) NMF 10.1 Digital Services At cost 8,790 NMF n/a Other Total At cost 1,575 188 NMF n/a 加加加加 n/a n/a n/a n/a 1,042,811 905,547 15.2% (1) LTM refers to Last Twelve Months, NTM refers to Next Twelve Months. (2) In line with our valuation policy, Amboli, recently acquired auto service industry player, is stated at cost. GEORGIA CAPITAL Page 10#111.Value creation Value creation across private portfolio | 1H19 Private Portfolio Businesses Dividends Operating Performance Greenfields Multiple Change Value Creation GEL thousands (1) (2) (3) (4) (1)+(2)+(3)+(4) Late Stage Water Utility 8,000 25,108 46,576 I 79,683 12,976 15,713 | 28,689 Housing Development P&C Insurance Early Stage 12,109 12,109 T 8,000 22 30,863 38,885 + 1,713 4,780 (1,070) 5,423 Beverages Renewable Energy Hospitality & Commercial Real Estate of which, wine 2,306 4,780 7,086 (593) (1,070) (1,663) 1,838 755 2,593 of which, beer (2,431) (1,825) I (4,256) Pipeline Education Auto Service 15,662 I 15,662 15,662 15,662 Digital Services Total private businesses 8,000 26,820 20,442 45,506 100,768 GEORGIA CAPITAL Page 11#122a.Capital allocations 2b.Buybacks Capital allocations | 1H19 GEL, millions BOG Listed portfolio GHG Water Utility Private late stage portfolio Housing Development P&C Insurance Renewable Energy Hospitality & Commercial RE Private early stage portfolio Beverages Of which, wine Pipeline portfolio Of which, beer Education Auto Service Digital Services Other Buybacks GCAP Total Dividends Investments Capital reallocation Buybacks Total (25.0) (25.0) (4.0) (4.0) (18.0) (18.0) (8.0) (8.0) 1.6 1.6 8.3 18.0 26.3 10.4 10.4 0.3 0.3 10.1 10.1 4.1 4.1 10.0 10.0 8.8 8.8 1.4 1.4 59.9 59.9 (37.0) 44.6 59.9 67.5 GEORGIA CAPITAL Page 12#132a.Capital allocations Recent acquisitions March 2019 Kazbegi brand acquisition Georgia's oldest beer brand - Kazbegi, brewed since 1881 The fifth largest Georgian beverages brand with 5% market share HO • Total cash consideration of US$ 3.65 million May 2019 Redberry acquisition • The leading Georgian digital marketing agency • US$ 0.4 million cash consideration to acquire 60% equity stake • US$ 2.8 million new capital injected for digital start-up development July 2019 Buckswood International The leading school in the mid-level segment Purchase of 80% equity stake Valued at 6.4x EV/EBITDA 2020 • Aiming to increase the capacity from current 730 learners to approximately 2,200 learners by 2021 • Total capital allocation from GCAP of GEL 17 million² Deal close date - 29 July 2019 Mar-19 Apr-19 May-19 Jun-19 Jul-19 GEORGIA CAPITAL April 2019 Amboli acquisition Second largest player in Georgian auto service industry ⚫ GEL 3.4 million cash consideration to acquire 80% equity stake Valued at 0.7x EV/Sales 2018 Additional Equity capital injection of GEL 1.6 million • Deal close date - 28 June 2019 June 2019 British-Georgian Academy • The leading school in the premium segment • Purchase of 70% equity stake • Valued at 6.4x EV/EBITDA 2020 • Aiming to increase the capacity from current 750 learners to approximately 3,500 learners by 2021 • Total capital allocation from GCAP of GEL 75 million² • Deal close date - 24 July 2019 • July 2019 Green School The leading player in affordable segment • Purchase of 80-901% equity stake • Valued at 5.6x EV/EBITDA³ Aiming to increase the capacity from current 1,250 learners to approximately 5,700 learners by 2024 • Total capital allocation from GCAP of GEL 21 million² • Deal close date - Expected in Aug-Sep 2019 (1) (2) 80% equity stake in the current campus and 90% equity stake in three new schools that will be developed under green school brand. Includes actual and projected future capital allocations. (3) An additional earn-out may apply subject to EBITDA target within the next three academic years. The cumulative EV paid will not exceed 5.6x EV/EBITDA of the respective year (including performance-related deferred consideration). Page 13#142b.Buybacks Share buyback programme update | 14 August 2019 US$45 million share buyback programme commenced in June 2018 US$ 43.8 million Utilized portion 3,239,843 shares bought back GBP 10.45 Average price of shares bought back 2,000,000 686,468 553,375 shares cancelled in June 2019 shares transferred to management trust in June 2019 shares currently held in treasury On 1 August 2019 we announced the following: Market purchase of the Group's shares of up to US$ 20 million for the management trust. The cancellation of the remaining Shares repurchased, or that will be repurchased under the ongoing US$ 45 million Share buyback programme, including the 553,375 which are currently held in treasury. GEORGIA CAPITAL Page 14#153. Operating expenses 4a. Net interest income GCAP Income Statement (Management accounts) | 1H19 Income statement highlights Income statement GEL thousands unless otherwise noted GEORGIA CAPITAL 1H19 Dividend income 36,932 Interest income 21,868 GEL millions 1H19 Realised/unrealised gain on liquid funds Interest expense 5,297 (25,892) Gross operating income 38,205 Operating expenses (16,609) GCAP net operating income 22 GCAP net operating income 21,596 Fair value changes of portfolio companies Listed portfolio companies 216,885 Total investment return 310 Of which, Georgia Healthcare Group PLC Of which, Bank of Georgia Group PLC Private portfolio companies 141,081 75,804 92,770 Late Stage 71,684 Of which, Water Utility 28,689 Net income 306 Of which, Housing Development 12,109 Of which, P&C Insurance 30,886 Early Stage 5,424 Of which, Renewable Energy Of which, Hospitality & Commercial Real Estate 7,087 Of which, Beverages (1,663) GEL 37 million dividend inflows from our portfolio businesses, while net interest income was positive for the first time at the GCAP level. Pipeline businesses 15,662 Of which, Auto Service 15,662 Total investment return 309,655 Income before foreign exchange movements Net foreign currency loss 331,251 (25,624) Net Income 305,627 Page 15#163. Operating 4a. Net interest income expenses Continued strong cash flow generation Stand-alone GCAP cash flow highlights Net cash flow from operations of GEL 17 million in 1H19 GEL millions Dividends Received Interest Received Total Cash Generation GEORGIA CAPITAL Consolidated Group cash flow highlights Net cash flow from operating activities up by 52.9% 1H19 GEL millions 1H18 1H19 Net cash flow from 33 72 109 operating activities 19 52 Net cash flow used in investing activities (508) (195) Interest Paid (25) Net cash flow from financing activities 254 25 GCAP cash operating expenses (10) 17 Cash flow from operations Interest coverage | 1H19 2.1x Cash expense coverage | 1H19 5.3x Page 16#17GEL millions 4b. Liquidity management Liquidity management at Georgia Capital Liquid assets & Loans issued | 30-Jun-2019 GEL 305 million Net debt | 30-Jun-2019 ► Georgia Capital issued inaugural US$ 300mln international corporate bonds in March 2018 Net debt overview | 30-Jun-2019 556 324 Cash and liquid funds 861 232 Loans issued 305 Gross debt Liquid assets & Loans Net debt issued Portfolio over net debt 7.3x Listed assets over net debt 3.9x GEL millions GEL millions 232 28 114 Cash at bank (20%) GEL 556 million 183 GEORGIA CAPITAL Internationally listed debt securities (33%) Loans issued (42%) Locally listed debt securities (5%) Cumulative maturity gap 99 122 222 556 114 Cash Up to 3 months Up to 6 months Up to 1 year Total liquidity 30-Jun-19 Page 17#18Capital allocation outlook through 2023 Highly disciplined approach to unlock value through investments GEORGIA CAPITAL Together with the available GEL 556mln liquid funds & short-term loans, we are well-positioned to create long-term shareholder value GEL millions GHG Listed investments BOG 2018A 2019E² 2020E 2021E 2022E 2023E Total capital allocation 2019-2023 (4) (6) (8) (11) (13) +187 million (23.9) (25) (27) (29) (31) (33) dividend inflows +543 million Private investments Water Utility (28.8) (28) (32) (34) (35) (36) Late stage Housing Development (9.8) (10) (15) (20) (25) (30) +356 million (10.0) P&C Insurance (12) (14) (18) (22) (25) dividend inflows Private investments Renewable Energy 5.0 21 80 21 37 (28) Early stage Hospitality & Commercial RE 32.9 30 9 (210) million 40.6 25 18 1 (4) Beverages Capital deployment Education Auto Service Pipeline Digital Services Other Total¹ (1) Share buybacks are not included within the capital allocations. (2) Includes actual capital allocations in 1H19 and projections for 2H19. dividend inflows (377) million Capital deployment 6.1 60 17 60 52 26 3 11 (2) (2) (3) (167) million 9 2 2 2 2 Capital deployment 1 1 1 1 1 12.1 78 68 (60) (83) (169) 166 million Net capital inflows Page 18#19Key portfolio highlights | 30 June 2019 Gross cash invested of GEL 975³ million translating into GEL 2.3* billion portfolio value GEORGIA CAPITAL Listed Net cash invested (288) Fair value MOIC¹ 1,195 (1) (2) (3) GEL millions Private late stage 113 682 Private early stage 317 315 Pipeline* 73 88 5.7 7.4 2.4 1.9 18.9 1.1 1.4 1.3 0.1 NMF NMF NMF 662 533 460 154 4 (292) 61 182 161 133 58 63 81 (19) (22) 45 60 10 54 55 10 24 9 9 GHG BOG Water Utility Housing P&C Insurance Development Renewable Energy Hospitality & Commercial Real Estate Wine Beer Education Auto Service Digital Services Fair value* LSE Market value at 30-Jun-19 Net cash investment * Education and digital Services at cost as of 14-Aug-19 Multiple of Capital Invested is calculated as follows: i) the numerator is the cash and non-cash inflows from dividends and sell-downs plus fair value of investment at reporting date ii) the denominator is the gross investment amount. GEL 46 million was already paid as of 14-Aug-19. Includes subsequent capital allocations in education business Page 19#20Multiple of Invested Capital (MOIC) | 30 June 2019 GEL millions Gross Investment Sell down Dividends Fair Value MOIC Realized MOIC (1) (2) (3) (4) (2+3+4)/(1) (2+3)/(1) Listed Investments Georgia Healthcare Group PLC Bank of Georgia Group PLC Private investments, late stage Water Utility Housing Development P&C Insurance 268 418 138 1,195 6.5x 2.1x 139 131 4 661 5.7x 1.0x 129 287 134 533 7.4x 3.3x 316 203 682 2.8x 0.6x 214 60 460 2.4x 0.3x 92 1111 61 1.9x 1.2x 10 32 161 18.9x 3.1x Private investments, early stage 318 315 1.0x Renewable Energy 58 63 1.1x Commercial and Hospitality Real Estate 133 182 1.4x Beverage 126 70 0.6x Of which, wine 45 60 1.3x Of which, beer 81 10 0.1x Pipeline Education Auto Service Digital Services Other Total 31 46 1.5x 10 11 1.1x 10 24 2.4x 9 9 1.0x 2 2 1.0x 933 418 341 2,238 3.2x (1) Includes capital reallocation to hospitality & commercial real estate business of GEL 101 million. GEORGIA CAPITAL Page 20#211H19 private portfolio performance highlights Water Utility Late stage Housing Development +6.7% -37.4% P&C Insurance 74.5 69.8 +8.4% +46.2% +15.4% 62.7 44.7 NMF +54.3% 40.4 39.2 36.3 37.2 30.6 -7.8% 31.4 flat 14.7 8.8 8.3 8.3 9.5 (2.1) (18.1)(16.7) 1 Revenue EBITDA 1H18 1H19 Operating cash flow Revenue EBITDA 1H18 1H19 Operating cash flow Earned premiums, net Net income 1H18 1H19 Operating cash flow Early stage Renewable Energy Hospitality & Commercial RE Wine Beer +37.7% 3.9x +75.0% 5.4x NMF -79.8% +87.2% +14.8% -19.9% NMF +14.9% 18.2 13.3 15.12 17.3 2.4 9.9 (0.4) 1.5 9.5 (0.4) (0.6) 3.8 1.9 1.6 0.3 1.6 3.0 1.6 1.8 (7.6) (6.5) Revenue EBITDA Operating 1H18 1H19 cash flow Revenue NOI² Revenue 1H18 1H19 Operating cash flow Revenue EBITDA 1H18 1H19 Operating cash flow EBITDA 1H18 1H19 (7.3) (8.8) Operating cash flow (1) Adjusted for non-recurring items. (2) Net operating income. (3) Includes revaluation gain recorded on Kempinski hotel. GEORGIA CAPITAL Page 21#22Value creation outlook Drivers for NAV growth Outlook for 2H19 performance and beyond remains robust Upcoming value creation over the medium term GEORGIA CAPITAL Late stage businesses Business growth and operating efficiencies Early stage businesses Hotels Hydro and wind power plants Wine business Beer business Pipeline businesses Auto service Education Digital Service Page 22#23Content 1. 1H19 results discussion | Georgia Capital 2. Georgia Capital strategy 3. Portfolio overview 4. Georgian macro overview 5. Appendices GEORGIA CAPITAL Page 23#24Georgia Capital - Your ground floor investment opportunity GEORGIA CAPITAL Capitalizing on fast-growing economy with strong governance, management and access to capital Access to capital GEORGIA CAPITAL Access to management Three fundamental enablers Strong corporate governance Page 24#25Strong corporate governance How we run Georgia Capital Strong board, composed solely of independent directors with extensive international experience Approximately 25 employees at the management company level Highly experienced management team in each portfolio company with a strong measure of independence Solid corporate governance and oversight GEORGIA CAPITAL Page 25#26Strong corporate governance Aligned shareholder and management interests by share compensation Platform costs - targeted at maximum c.2% of MCAP Key things to know GEORGIA CAPITAL 1 Cash preservation is a key target for GCAP: two thirds of total operating expenses are related to share-based compensation. 33% 2 c. 1% of executives compensation is in fixed shares; with another 1% being fully discretionary, subject to achieving KPIs. 67% 3 GCAP's management's compensation is paid in long-vested (6-year) shares only, with no cash component. cash non-cash Page 26#27Access to management Solid track record demonstrated by management Created three listed companies from Georgia, on the premium segment of the London Acquisitions Stock Exchange Capital raise lili. Exit IRR The Georgia Capital management team, under the BGEO Group, has a track record of executing more than 40 acquisitions in banking, insurance, healthcare, utilities, retail, FMCG and other sectors Total number of acquisitions 40+ Uniquely positioned given the access to capital in a small frontier economy, where access to capital is limited: c.US$ 500 mln raised in equity at LSE Issued five Eurobonds totaling US$ 1.5 billion US$ 3 billion+ raised from IFIS (EBRD, IFC etc.) Total amount of debt raised (US$) 4.5bn+ 121% IRR from GHG IPO 66% IRR from m² Real Estate projects IRR from GHG IPO 121% GEORGIA CAPITAL Page 27#28Our investment philosophy We will pick well, we will manage very well and sell extremely well GEORGIA CAPITAL 10x = 10y 2nd exit 1st exit: cash-out Trade sale or IPO Entry point Cash inflows through leveraging up and/or dividend payouts Using scale to access to debt capital markets Low acquisition multiples 360-degree analysis Exit options set prior to making investment Entering a new industry with a small ticket size Cash generation at both GCAP and portfolio company level is a key success factor Page 28#29Managing investments Proxy share ownership plans in portfolio companies' management Investment stage Pipeline Early Acquisition/ Entrance Discovery Young Portfolio Companies Sector םום Late Target to exit Large Portfolio Companies Listed GEORGIA CAPITAL Mature Portfolio Companies Possible completion of Exit Digital Education Services Auto Service Renewable Energy Hospitality Beverages &L Commercial Housing P&C Development Insurance Water Utility Georgia Healthcare Group Bank of Georgia Group Discovery stage Portfolio Company Development Focus Institutionalisation/ Independence Low Hands-on management approach ➤ Rapid growth organically and through M&A; ➤ Active investment stage; ➤ Strategic guidance / advisory approach ➤ Focus on efficiency improvements; Diversification of revenue streams; ➤ Introduction of dividend discipline; Sustainable shareholder value creation and dividend distributions High Page 29#30Clear exit paths Trade sale IPO Fund Promote Water Utility X X X P&C Insurance X Housing Development X Renewable Energy X X X Hospitality & Commercial X X Beverages X Education X X X X Auto Service Digital Services Exit options set prior to making an investment decision GEORGIA CAPITAL Page 30#31Two new strategic priorities Over time Georgia Capital will: 1. Decrease share of listed assets to 20% and 2. manage third-party money Over the next 5 years we will reshape our balance sheet GEORGIA CAPITAL GEORGIA CAPITAL 30 June 2019 47% 53% 80% In 5 years 20% Private Listed Private Listed Management company GCAP investment portfolio Third-party managed capital Page 31#32Georgia Capital's board of directors Board of directors - Georgia Capital PLC Irakli Gilauri, Chairman & CEO Experience: formerly BGEO Group CEO; Up to 20 years of experience in the banking, investment and finance. BMS in banking from CASS Business School, London; BBS from University of Limerick, Ireland Caroline Brown, Independent Non-Executive Director Experience: Chief Financial Officer at Listen Media Campaign Company, Chief Innovation Officer and Founding Partner at Cambridge Advisory Partners GEORGIA CAPITAL David Morrison, Senior Independent Director Experience: formerly Director at Sullivan & Cromwell with a track record of over 28 years, Founding CEO of the Caucasus Nature Fund (CNF) Kim Bradley, Independent Non-executive Director Experience: Goldman Sachs AM, Senior Executive at GE Capital, President of Societa Gestione Crediti, Board Chairman at Archon Capital Deutschland Jyrki Talvitie, Independent Non-Executive Director Experience: 28 years of experience in the banking, including Sberbank, VTB, East Capital and Bank of New York in both buy and sell-side transactions Massimo Gesua'sive Salvadori, Independent Non- Executive Director Experience: currently an analyst at Odey asset management, formerly with McKinsey & Company for over 9 years 5 out of 6 members are independent Page 32#33Georgia Capital's highly experienced management team Georgia Capital Irakli Gilauri, Chairman & CEO Formerly CEO of BGEO Group since 2011, joined as CFO of Bank of Georgia in 2004. Mr Gilauri was appointed Chairman of the Bank in September 2015, having previously served as CEO of the Bank since May 2006. Up to 20 years of experience in the banking, investment and finance. Prior, he was EBRD (European Bank for Reconstruction and Development) banker. Over the last decade, Irakli's leadership has been instrumental in creating major players in a number of Georgian industries, including banking, healthcare, utilities and energy, real estate, insurance and wine. Holds an MS in banking from CASS Business School. Avto Namicheishvili, Deputy CEO Formerly he was BGEO Group General Counsel. Joined as a General Counsel at the Bank of Georgia in 2007, and has since played a key role in all of the Group's equity and debt raises on the capital markets, and over 25 mergers and acquisitions. Prior, was a Partner at a leading Georgian law firm. Holds LL.M. in international business law from Central European University, Hungary. Ekaterina Shavgulidze, Chief Investment Officer Formerly served as Head of Funding and Investor Relations in BGEO Group. Joined BGEO as a CEO of healthcare services business in 2011. Most recently Eka played a key role in the GHG IPO as a Group Head of IR. Prior, she was an Associate Finance Director at AstraZeneca, UK. Holds an MBA from Wharton Business School. Giorgi Alpaidze, Chief Financial Officer Formerly BGEO Group CFO. Joined BGEO as Head of Group's Finance, Funding and Investor Relations in 2016. He has extensive international experience in banking, accounting and finance. Previously he was a senior manager in Ernst & Young LLP's Greater New York City's assurance practice. BBA from the European School of Management in Georgia. U.S. Certified Public Accountant. Georgia Capital Management Listed GGU BOG GHG Private շա Beer Wine Aldagi Nikoloz Gamkrelidze, CEO, Georgia Healthcare Group GEORGIA CAPITAL Previously deputy CEO (Finance) of BGEO Group. Our healthcare business story starts with Nick, who started it in 2006, and has successfully led it through outstanding growth and most recently the IPO on the London Stock Exchange. Holds an MA in international healthcare management from the Tanaka Business School of Imperial College London. Archil Gachechiladze, CEO, Bank of Georgia Previously CEO at GGU, the Group's water utility and renewable businesses. Prior to that Archil was a Deputy CEO in charge of corporate banking in Bank of Georgia. He launched the Bank's industry and macro research, brokerage, and advisory businesses, as well as leading investments in GGU and launched Hydro Investments. Previously, he was an Associate at Lehman Brothers Private Equity in London, and worked at Salford Equity Partners, EBRD, KPMG, Barents, and the World Bank. Holds MBA with distinction from Cornell University and is CFA charterholder. Avto Namicheishvili, Interim CEO, Georgia Global Utilities Staring from 28-Jan-19, Avto assumes the role of interim CEO of the Group's Water Utility and Renewable Energy businesses, in addition to his deputy CEO role at Georgia Capital. Formerly he was BGEO Group General Counsel. Joined as a General Counsel at the Bank of Georgia in 2007, and has since played a key role in all of the Group's equity and debt raises on the capital markets, and over 25 mergers and acquisitions. Prior, was a Partner at a leading Georgian law firm. Holds LL.M. in international business law from Central European University, Hungary. Irakli Burdiladze, CEO, m² Real Estate Joined as a CFO at the Bank of Georgia in 2006. Before taking leadership of real estate business in 2010, he served as the COO of the Bank. Prior he was a CFO at a leading real estate developer and operator in Georgia. Holds a graduate degree in International Economics and International Relations from the Johns Hopkins University School of Advanced International Studies. Giorgi Baratashvili, CEO, Aldagi Joined as the Head of Corporate Clients Division of Aldagi in 2004. Before taking the leadership of our P&C insurance business in 2014, he served as Deputy CEO of Aldagi in charge of strategic management for corporate sales and corporate account management. Holds the Master Diploma in International Law. Giorgi Tskhadadze, CEO, Wine Business. CEO of wine business since November 2018. He was previously Head of Water Utility within GGU, having joined the group in December 2014. Prior to that, he held executive positions at several leading local companies, including as CFO at IDS Borjomi and Poti Sea Port. Prior to joining GGU, Giorgi was acting as a partner at Proxima Prime Partners. Holds BSc degree in Economics and Engineering from Tbilisi State University. Tornike Nikolaishvili, CEO, Beer Business CEO of beer business since September 2018, having previously been Chief Marketing Officer at Bank of Georgia from March 2018. Previously he was a Commercial Director at EFES Georgia - Natakhtari Brewery. Before joining EFES, he was an Advertising Manager of Cartu-Universal. Overall, he has 15 years' experience in FMCG sector. Holds BBA degree of European School of Management (ESM). Page 33#34Content 1. 1H19 results discussion | Georgia Capital 2. Georgia Capital strategy 3. Portfolio overview 4. Georgian macro overview 5. Appendices GEORGIA CAPITAL Page 34#35Listed investments Healthcare and pharmacy business (GHG) overview http://ghg.com.ge/ GEORGIA HEALTHCARE GROUP GEORGIA CAPITAL Investment rationale " Very low base: healthcare services spending per capita only US$ 324 Growing market: healthcare spending growth estimated at 8% CAGR 2019-2021 Value creation potential " High-growth potential driven by opportunity to develop medical tourism and Polyclinics (outpatient clinics) Only integrated player in the region with significant cost advantage in scale and synergies Well positioned to take advantage of the expected long term macroeconomic and structural growth drivers Financial metrics (GEL millions) 2,000 1,000 Total Market CAGR 2011-2018 of 14% Market opportunity Total healthcare market (including healthcare services and pharmacy) GEL million 6,000 5,000 4,000 3,000 Total Market CAGR 2019- 2021 of 8% 4,765 4,397 4,062 3,760 3,062 3,218 3,488 2,464 1,552 1,716 2,034 Annual Semiannual 2011 2012 2013 2014 2015 2016 2017 Source: Frost & Sullivan analysis 2017 2018E 2019F 2020F 2021F 2015 2016 2017 2018 Revenue Gross EBITDA, excl. IFRS 16 Profit before tax, excl. IFRS 16 246 426 748 850 419.5 56 78 108 132 24 40 46 54 62.6 28.5 1H18 1H19 Change 472.9 12.7% 74.8 19.4% Stock price performance Hospitals EBITDA margin, excl. IFRS 16 27.9% 30.4% 27.6% 26.3% Pharmacy and distribution EBITDA margin, excl. IFRS 16 Operating cash flow N/A 45 4.3%1 8.6% 42 58 10.1% 100 31.6 11.0% 450 26.1% 25.5% -0.6ppt 9.7% 10.5% +0.8ppt 44.2 55.2 24.7% 300 GBP 1.70 400 350 IPO price GBP 2.27 as of 14-Aug-2019 250 Selected operating metrics 200 150 100 Number of hospitals Number of beds Number of clinics Number of pharmacies Bed occupancy rate, referral hospitals² EBITDA to cash conversion ratio 1H18 1H19 18 18 3,320 3,320 35 34 259 279 63.1% 65.6% 70.6% 73.8% Nov-15 Jan-16- Mar-16 May-16 Jul-16- Sep-16- Nov-16- Jan-17- Mar-17 May-17 Jul-17 Sep-17- Nov-17- Jan-18- Mar-18 May-18 Jul-18 Sep-18 Nov-18- Jan-19- Return on invested capital 1H18 1H19 ROIC 10.4% 12.2% ROIC adjusted³ 13.7% 14.4% 1 FY16 includes only May-Dec GPC's results. 2 Adjusted to exclude the Tbilisi Referral Hospital and Regional Hospital; the calculation also excludes emergency beds. 3 Return on invested capital is adjusted to exclude newly launched hospitals and polyclinics that are in roll-out phase. Mar-19- May-19- Jul-19 Page 35#36GEORGIA CAPITAL Listed investments Bank of Georgia (BOG) Overview http://bankofgeorgiagroup.com/ Investment rationale ■ The first entity from Georgia to be listed on the premium segment of the Main Market of the London Stock Exchange (LSE:BGEO) since February 2012 ■ High standards of transparency and governance Leading market position in Georgia by assets (34.3%), loans (34.6%), client deposits (33.9%) and equity (29.2%) Market with stable growth perspectives ■ Strong brand name recognition and retail banking franchise Sustainable growth combined with strong capital, liquidity and robust profitability Outstanding ROAE performance ■ Dividend per share growing at 34.3% CAGR Value creation potential ■Loan book growth c.15% " Maintenance of dividend pay-out ratio within 25-40% BANK OF GEORGIA Market opportunity Banking sector assets, loans and deposits 25.4% CAGR 50 39.7 40 34.6 30.1 26.6 30 25.2 20.6 22.3 17.3 18.9 20 12.7 14.4 16.0 13.0 1.3 1.7 10 2.5 4.2 0.8 0.9 1.71.3 2.3.1 7.2.6 8.9 6.0 8.3 10.6 5.2 $6.3 7.7 8.7 10.5 19.8 23.0 3.2 3.6 4.0 5.5 6.7 7.6 9.7 11.6 14.3 17.0 0.7 1.0 0 Source: NBG Financial metrics (GEL millions) Assets, GEL bn Loans, GEL bn Deposits, GEL bn GEL 10.3 billion loan portfolio breakdown (2) | 30 June 2019 Corporate loans, Annual Semiannual 2015 ROAE NIM 21.9% 2016 22.2% 2017 2018 1H18 1H19 change 25.2% 26.1%4 GEL 3,360.5 million, 32.8% 25.7% 23.7% -2.0ppt 7.7% 7.4% 7.3% 6.5% 7.0% 5.6% -1.4ppt NPL coverage 83.4% 86.7% 92.7% 90.5% 99.4% 88.1% -11.3ppt Retail loans, GEL 6,900.5 million, 67.2% Loan portfolio 5,367 6,682 7,741 9,398 8,109 10,580 30.5% Retail banking growth 35.3% 39.5% 29.3% 24.2% 6.7% 8.0% +1.3ppt Dividend record³ (GEL m) Cost/income 35.5% 37.7% 37.7% 36.7% 37.0% 36.9% -0.1ppt Payout 10% 15% 30% 36% 33% 34% 32% 30% 30% ratio: Selected operating metrics 150 1H18 1H19 Dividend per share CAGR (GEL) - 34.3% 2.44 2.55 3.00 2.08 1.92 1.60 1.68 100 Retail clients (millions) 2,382 2,475 1.20 2.00 0.56 122 124 50 Digital transactions (millions) 77.8 86.5 0.24 98 102 1.00 72 80 9 51 0 24 Volume of internet bank/mobile bank transactions (GEL millions) 1,604 2,863 0.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 (1) (2) Market data based on standalone accounts as published by the National Bank of Georgia (NBG) as of 30 June 2019 www.nbg.gov.ge Excluding BNB. Total dividend paid for the year Dividend per share (3) Actual dividend per share information for 2010-2016 years are adjusted for 19.9% Bog share issuance. (4) Adjusted for demerger related expenses and one-off impact of re-measurement of deferred tax balances. Page 36#37Private late stage portfolio Water utility business overview Investment rationale Natural monopoly in Tbilisi and surrounding districts with high entry barriers Sectoral output increasing at a robust growth rate (on average 9.5% in the last 10 years) Stable regulatory environment with fair return on investment Stable cash collection rates Value creation potential " EU harmonization reforms in progress in utilities sector, expected to drive water tariffs up High GDP growth combined with rapid tourism growth drive high demand from corporates " Energy market deregulation positively affecting electricity sales price Upside opportunity from efficiency gains Stable dividend distribution capacity Financial metrics (GEL millions) GEORGIA CAPITAL Key highlights | 30 June 2019 GEL millions, unless otherwise noted 30-Jun-19 31-Dec-18 Change LTM EBITDA 86 83 3.8% Multiple applied 9.0 8.8 2.3% Enterprise value 781 738 5.9% Net debt (321) (307) 4.8% Equity fair value 460 431 6.7% Annual Semiannually 2015 2016 2017 2018 1H18 1H19 Change LTM ROIC1 9.7% 10.3% -0.6ppt Total revenue 119 127 135 149 69.8 74.5 6.7% Of which, utility revenue 105 109 119 132 61.8 62.8 1.8% Of which, energy revenue 9 10 10 9 4.7 8.2 74.5% Performance track record Of which, other revenue 5 8 6 81 3.4 3.5 2.9% Total EBITDA 62 69 73 83 37.2 40.4 8.4% EBITDA evolution (GEL m) Cash flow from operations 52 54 70 82 30.6 44.7 46.2% Maintenance CAPEX 21 22 23 23 12.4 11.1 -10.9% +51% Development CAPEX 14 31 114 148 77.1 27.9 -63.8% Selected operating metrics 55 2014-2018 62 83 Electricity Consumption (KWh m) 2014-2018 -11% 69 73 +8.4% millions except for connections 1H18 1H19 Change Water Utility Water sales (m³) 86.5 87.3 0.9% Electricity consumption (kwh) 99.3 86.3 -13.1% New connections 2,183 2,312 5.9% Energy Electricity generation (kwh) 184.0 168.5 -8.4% Energy sales (kwh) 84.7 82.2 -2.9% Electricity purchases (kwh) 21.2 18.0 -15.1% 40 37 iillalling 2014 2015 2016 2017 2018 1H18 1H19 2014 2015 2016 2017 2018 | 1H18 1H19 (1) ROIC is calculated as EBITDA less depreciation, divided by aggregate amount of total equity and borrowed funds. 319 309 256 239 -13.1% 193 99 86 Page 37#38Private late stage portfolio Housing development business overview Investment rationale " " " Shortage of housing from Soviet era combined with Georgian tradition of multi generations living under one roof, average household size is significantly higher at 3.5 compared to Eastern or Western Europe Most of the housing stock dates back to Soviet era and is amortised In line with the economic growth, urbanization level is expected to increase from current low level Value creation potential Asset light strategy " Unlock land value by developing housing projects " " Development of third-party land - franchise m² brand name. Undisputed market leading platform of 2,500 apartments¹ to be delivered in 4-5 years Earn Construction management fees from third-party projects and bring construction works in-house Financial metrics (GEL millions)² უძრავი ქონეგა REAL ESTATE GEORGIA CAPITAL Key highlights | 30 June 2019 30-Jun-19 GEL millions, unless otherwise noted 31-Dec-18 Change Enterprise value 200 174 14.9% Net debt 139 107 29.9% Equity fair value In-kind dividends (lifetime) Market opportunity 61 67 -8.9% 101 83 +21.7% Annual 2015 2016 2017 2018 1H18 Apartments sales revenue 45 96 92 95 52.4 Semiannually 1H19 16.6 Average household size and home ownership, latest available data Change Construction revenue 36 7.5 21.6 EBITDA 18 11 28 15 8.8 (2.1) -68.3% NMF NMF 58% 57% 54% 60% 54% 75% 71% 75% 69% 68% 92% 91% 90% 84% 97% 83% 85% 90% 82% 69% (1) (2) Digomi residential project update Construction permit received on the largest ever in-house project at the end of June 2019 expected to drive cash flow generation in 2H19 Revenue recognition from Digomi project will start from 1 July 2019. No revenue recognized in 1H19 As of 14 August 2019 3.5 2.8 2.8 2.8 2.6 2.4 2.3 2.3 2.2 2.2 Sq.m. of apartments sold 6,430 Georgia Croatia Slovakia Poland Romania Bulgaria Hungary EU Estonia Lithuania Sq.m. sold as % of total available space 29% 6.5 Average Household Size Source: Eurostat, TBC Capital Home Ownership Urbanization Level Sales value $ million 2,500 apartments relate to the signed Tbilisi Airport Highway deal. Housing development business' functional currency is US dollars. Page 38#39Private late stage portfolio P&C insurance business overview Investment rationale • Significantly underpenetrated insurance market in Georgia • Market leader with a powerful distribution network of point of sale and sales agents Value creation potential • Compulsory border TPL effective from 1 March 2018 • Local TPL expected to kick in and provide access untapped retail CASCO insurance market with only 4% existing penetration • First mover advantage on underpenetrated SME segment • Growing dividend payout capacity ⚫ Digitalization ALDAGI Key highlights | 30 June 2019 GEORGIA CAPITAL GEL millions, unless otherwise noted 30-Jun-19 LTM net income² 31-Dec-18 Change 18 18 NMF Multiple applied4 9.1 7.4 23.6% Equity FV 161 131 23.7% LTM ROAE 32.1% 34.4% -2.3ppt Financial metrics (GEL millions) Annual 2015 2016 2017 2018 Earned premiums, gross 1H18 Semiannually 1H19 68 71 86 90 1 42.6 Net income 46.5 Change 9.3% 121 14 16 182 8.32 Combined ratio 8.3 NMF 79% 9.6% 73% 75% 75% 74.7% 80.2% Loss ratio +5.5ppt 8.5% 9.0% 43% 35% 40% 38% 39.8% ROAE 41.6% 37% +1.8ppt 6.1% 6.0% 4.9% 37% 38% 34%2 32.7%2 28.3% -4.3ppt 6,811 Selected operating metrics 3,810 1H18 1H19 change (y-o-y) Corporate insurance policies written³ 28,538 50,781 77.9% Retail insurance policies written 77,636 84,661 9.0% UK Switzerland (1) Excluding impact of one-off FX contract with GEL 8 million loss. (2) Adjusted for non-recurring items. (3) Excluding credit life insurance. (4) Multiples improved significantly across all peer group companies France Belgium Germany Insurance Density USD Slovenia Poland Bulgaria Turkey Insurance penetration Russia Georgia Market opportunity Georgia P&C Penetration 0.6% Density $25 3.0% 2.2% 1.4% 1.4% 1.2% 3,446 1,184 2,655 2,687 421 175 149 152 46 Page 39#40Private early stage portfolio Renewable energy business overview Key highlights | 30 June 2019 GEORGIA CAPITAL Investment rationale " GEL millions, unless otherwise noted 30-Jun-19 31-Dec-18 Change Underdeveloped energy market with potential for significant growth - Low per capita power usage Cheap to develop - up to US$1.5min for 1MW hydro and up to US$1.4mln for wind development Cost 63 61 2.5% Value creation potential Opportunity to establish a renewable energy platform with 380MW operating capacity over the medium-term Energy consumption has grown at 5.7% CAGR in last 10 years and is expected to further grow at least by CAGR 5% over the next 10-15 years Stabile dividend provider capacity in the medium-term GCAP ownership 65% 65% NMF Market opportunity GWh 23,000 18,000 Renewable energy projects overview | 30 June 2019 13,000 CAGR: 5.7% Target Target Project MWs commissioning² ROIC³ Generation capacity (GWh)¹ 8,000 Current stage 3,000 Mestiachala HPPS 50 1H19 12.1% 171 Operational Zoti HPPS 46 2H21 12.1% 170 Development Generation, actual Bakhvi 2 HPP 36 1H22 11.1% 127 Feasibility Racha HPPS 38 1H23 11.7% 165 Feasibility Wind Tbilisi 57 2H21 12.6% 172 Development Annual Wind Kaspi 54 2H21 14.3% 211 Development Wind (other) 99 1H23 12.4% 341 Feasibility Development Capex 2015 NMF 2016 NMF Total 380 1,357 (1) Generation capacity refers to target net annual generation. (2) Target commissioning dates are indicative and subject to regulatory procedures. 20+ (3) (4) Target return on invested capital is calculated based on average stabilized EBITDA divided by total invested capital. The first phase (30MW) was launched on 8 April 2019, followed by the second phase (20MW) on 4 June 2019. Revenue EBITDA Generation (Kwh '000) 2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Mestiachala 1H19 performance4 GEL thousands, unless otherwise noted Consumption, 5% 6.6 TWh Generation, forecast Financial metrics (GEL millions) Consumption, +5% Semiannually 2017 77 2018 68 1H18 20.6 1H19 Change 21.8 5.8% 1H19 2,395 1,826 28,143 Page 40#41Private early stage portfolio Hospitality and commercial real estate business overview Investment rationale y-o-y, Record number of tourists visiting Georgia every year: 4.8 million visitors in 2018, up 16.9% (2.1 million in 1H19, up 10% y-o-y), 10.5% CAGR over the last 5 years; Tourism inflows up 19.1% y-o-y from US$ 2.7bln in 2017 to US$ 3.2bln in 2018, 13.4% CAGR over the last 5 years Value creation potential " Grow Portfolio of rent-earning assets through residential developments/opportunistic acquisitions Reach more than 1,000 operational hotel rooms. Currently approximately 1,222 rooms are confirmed, of which 152 are operational and c. 1,070 are in the pipeline. Targeting mostly 3-star and 4-star hotels Financial metrics (GEL millions)² 182 GEORGIA CAPITAL GEL millions, unless otherwise noted Key highlights | 30 June 2019 30-Jun-19 31-Dec-18 Change Equity fair value 149 22.4% LTM ROIC¹ 14.1% 16.4% -2.3ppt Market opportunity Arrivals of tourists and tourism revenue | Georgia 4.1 4.8 Source: Georgian National Tourism Administration National Bank of Georgia Annual 2016 2017 2018 1H18 Semiannually 1H19 3.3 2.9 2.9 3.0 Change 2.5 3.2 NOI³ from operating leases 3 3 5 1.9 2.8 46.9% 1.8 2.7 1.9 2.1 NOI³ from hospitality services 2 0.5 0.7 52.5% 1.7 1.8 1.9 2.1 1.4 1.4 1.5 Revaluation gain 1.0 28 7.9 NMF Total net Operating Income 2 3 32 1.9 9.5 NMF Commercial real estate portfolio 42 77 112 95.2 121.9 28.1% 2011 2012 2013 2014 2015 2016 2017 2018 1H18 1H19 Arrivals of tourists (min) Tourism revenue(US$ bln) Selected operating metrics 1H18 1H19 Change Hotel rooms pipeline as of 30 June 20194 Gross yield (leased portfolio) Occupancy rate Leased area (sq.m.) 10.2% 8.6% -1.6ppt Hotel Location Rooms 89.5% 86.7% -2.8ppt Ramada Encore Kazbegi, Tbilisi Capital city Gudauri 152 Q1-2018 Target opening Current date4 Stage Operational Total Cost Target US$ mln ROICE 12.1 15.0% Region 121 Q4-2019 Construction 13.3 12.0% 22,240 26,301 18.3% Ramada Melikishvili, Tbilisi Kempinski, Tbilisi Capital city 125 Capital city 99 Ramada Encore 1H19 performance Seti Square in Mestia, Svaneti Region 52 Ramada Kutaisi Region 121 Q1-2020 Q3-2020 Q4-2020 Q4-2020 Construction Construction Construction Construction 13.0 14.9% 28.1 12.5% 5.9 16.3% 9.5 17.5% RevPAR, US$ 31.0 ADR, US$ 63 Occupancy% 48.8% Kakheti Wine & Spa Region 60 Q3-2021 Design 7.5 17.3% Shovi, Racha Region 92 Q3-2021 Design 5.7 15.8% Mestia, Svaneti Region 140 Q4-2021 Design 10.1 15.8% (1) ROIC is calculated as NOI divided by aggregate amount of total equity and borrowed funds. (2) Hospitality & Commercial real estate business' functional currency is US dollars. (3) Net operating income. Telavi Zugdidi Region 130 Q4-2021 Design 12.7 13.4% Region 130 Q4-2021 Design 14.1 12.0% Total 1,222 132.0 (4) Target opening dates remain subject to adjustment following passing of the design stage. (5) Including under construction retail properties presented in housing business, which will be transferred to hospitality & commercial real estate business at the date of construction completion. (6) Target return on invested capital is calculated based on average stabilized EBITDA divided by total invested capital. Page 41#42Private early stage portfolio Beverages - wine business overview Investment rationale " Georgia is considered the "cradle of wine" with a rich, 8,000-year history of wine-making and home to over 500 unique grape varieties Georgia's favorable trade regimes (free trade agreements with EU and China) provide potential for export growth for beverages Growing urbanization and tourism inflows are raising demand for bottled wine locally Approximately 29% of the tourism inflows is spent on food & beverages Value creation potential " " Best-in-class distribution network platform Grow vineyard base to 1,000 hectares, from current 451 hectares Key highlights | 30 June 2019 GCAP ownership LTM EBITDA² 30-Jun-19 86% 31-Dec-18 Change 80% +6.0ppt 5.4 5.0 7.6% Multiple applied 9.9 9.1 8.8% Enterprise value 54 54 46 46 17.1% Net debt (8) (7) 23.2% Financial metrics (GEL millions) Kindzmarauli 21 26 -21.3% Annual Semiannually Equity fair value 60 60 57 10 5.0% 2015 2016 2017 2018 1H18 Wine Revenue 18 18 20 29 9.9 Wine EBITDA 2 3 5 7 1.6 1H19 17.3 3.0 Change 75.0% 87.2% LTM ROIC1 12.1% -2.1ppt Selected operating metrics (in '000) 1H18 1H19 Change Wine sales bottles 1,706 2,541 49% Of which, export sales 1,286 2,002 56% Export share (%) 75.4% 78.8% +3.4ppt 47 10.0% Market opportunity Georgia's Wine Exports ($US Millions) Export Sales ($US) over past 5 years at 10% CAGR increased Our export market share (1H19)- 5% 172 192 166 119 109 91 77 86 89 97 59 50 36 38 40 (1) (2) ROIC is calculated as EBITDA less depreciation, plus divided by average amount of total equity and borrowed fund. LTM EBITDA is stated excluding Kindzmarauli, as Kindzmarauli is valued at cost as of 30 June 2019. 2013 2014 2015 2016 2017 2018 1H18 1H19 Wine exports (Bottles) ■Wine exports ($US millions) Source: LEPL Georgian National wine agency; National statistics office of Georgia GEORGIA CAPITAL Page 42#43GEORGIA CAPITAL Private early stage portfolio Beverages - beer business overview Investment rationale Beer consumption per capita at one of the lowest levels in the wider region at 27.5 liters per capita 50% CAGR growth in soft drinks export over the last 3 years Georgia's favorable trade regimes (free trade agreements with EU and China) provide potential for export growth for beverages Value creation potential " Best-in-class distribution network platform 10-year exclusivity from Heineken to produce and sell beer in Georgia, Armenia and Azerbaijan Financial metrics (GEL millions) Key highlights | 30 June 2019 30-Jun-19 31-Dec-18 Change GCAP ownership 86% 80% +0.6ppt LTM Revenue 29 28 2.6% Multiple applied 2.1 2.2 -3.0% Enterprise Value 61 61 -0.5% Net debt Annually Semiannually (89) (64) 39.4% 2017 2018 1H18 Beer Revenue 18 29 13.3 1H19 18.2 Change 37.7% Kazbegi/Black lion 10 7 NMF Equity fair value 10 10 4 NMF Beer EBITDA (6) (14) (7.6) (6.5) 14.8% LTM ROIC1 -22.0% -0.7ppt Selected operating metrics (in '000) 1H18 1H19 Change Beer sales liters ('000) 7,608 9,607 26.3% Beer business reached a significant milestone and successfully launched five new brands, including Amstel and Heineken In March 2019 the beer business acquired the fifth largest Georgian beverages brand, Kazbegi, with 5% market share Germany Per cap beer consumption implies room for growth Beer consumption per capita, L; 2017 Austria Romania Spain Bulgaria -21.3% Market opportunity 109 105 92 79 79 71 67 53 51 49 42 34 32 28 27 Hungary Serbia Switzerland Russia Portugal Ukraine Greece France Georgia falls behind beer consumption per capital against top 15 European wine producing countries Georgia Italy (1) ROIC is calculated as EBITDA less depreciation, plus divided by average amount of total equity and borrowed fund. Source: Euromonitor Page 43#44Pipeline Attractive service business - Auto Service We aim to build a diversified business model combining many different auto-related services to capitalise on the large and growing automotive services market Number of registered vehicles in Georgia ('000) – 8% CAGR 2012-2018 Average age of cars is high, hence spending is expected to increase due to the stricter regulatory environment 1,258 1,322 999 1,081 1,167 907 832 GEORGIA CAPITAL Room for growth in the highly fragmented auto service market in Georgia Leading player 16% The rest of the market is dominated by small, owner operated lower-end service shops. 43% 40% 45% 46% 45% 46% 47% 44% 45% 45% 46% 46% 48% 50% 2012 2013 2014 2015 2016 2017 2018 Total auto service market - 20 > years 11-20 years 7-10 years 4-6 years 0-3 years Car services and parts Car insurance Secondary car trading c. GEL 1 billion market c. GEL 1.8 billion PTI c. GEL 0.3 billion market c. GEL 0.5 billion market c. GEL 50 million market Source: MOIA We have allocated GEL 10 million¹ capital to auto service business in 1H19 Successfully launched the periodic technical inspection business (PTI) Periodic technical inspection business highlights Total investment GCAP allocated capital Amboli transaction Highlights GEL 48mln Equity stake purchased Total cash consideration GEL 5min Acquired second largest player, Amboli, in Georgian auto service industry 80% GEL 3.4mln¹ 0.7x EV/Sales 2018 ➤ Targeting 400,000 to 450,000 vehicles annually from 2020 (1) Holdback of GEL 0.6 million. Enterprise Value Additional equity capital injection ➤ Amboli deal was closed on 28 June 2019 GEL 1.6mln Page 44#45Pipeline Periodic technical inspection business overview Investment rationale Georgia's Auto park continues to grow steadily, with 8% CAGR during the years 2012-2018 " " Georgia lags behind developed countries by number of private passenger cars per capita, showing room for further growth " Vehicles older than 10 years represent 90% of total auto park Value creation potential Key highlights | 30 June 2019 NTM² EBITDA GEL 6.7mln 10.1 " " In July 2018, GWG won state tender to launch and operate 51 periodic technical inspection lines across Georgia with a 10-year license. Technical inspection prices are fixed set at GEL 60 and GEL 100 for light vehicles and heavy vehicles, respectively Currently, inspection covers the basic technical control of vehicles. The government plans to tighten procedures from January 2020 and also test vehicle catalytic converters to try and reduce the level of harmful emissions GWG is the only player on the market with support from an international partner, Applus+, a Spain- headquartered worldwide leader in testing, inspection and certification with services a market presence in more than 70 countries Multiple applied Enterprise Value Net debt PTI | Equity fair value Selected metrics Number of inspection lines Market share¹ 51 36% Financial highlights Operating highlights MTD GEL thousands 1H19 Jun-19 1H19 Revenue 5,304 1,244 Cars serviced 140,338 Gross margin 57% 67% of which, primary 101,513 EBITDA 613 446 of which, secondary 38,825 EBITDA margin 12% 36% (1) Based on available inspection lines. (2) Next twelve month. GEL 68mln GEL 49mln GEL 19mln GEL 5mln GEL 24mln Estonia Lithuania Sweden Hungary Croatia Market opportunity Number of passenger cars per 1,000 people, (2017) 527 510 419 418 Amboli acquisition cost Auto service business | Equity fair value Latvia Belarus Russia Georgia Kazakhstan 378 351 348 322 313 307 256 202 III 147 112 Turkey Azerbaijan Czech rpb Slovenia Page 45 GEORGIA CAPITAL#46Pipeline Education - Fragmented education market offers attractive opportunity for a scaled player Industry investment rationale ➤ Highly fragmented private school market ➤ Large and growing market Efficiency upside Medium term demand outlook for private high schools GEORGIA CAPITAL currently- 10% private Private 10% in 5-years - 20% private 20% High trading multiples ➤ Low base - 3.5% of GDP, compared to 5.4% of peers* Source: World bank, Eurostat State 90% 80% Currently c.650,000 learners across Georgia Diversified business model with strategy 1-2-3 Strong platform to facilitate growth and scale to become the leading integrated education player with up to 30,000 learners by 2025 Annual tuition fee: 3,500 GEL 15,000+ 1 Premium learners BGA Annual tuition fee: 7,000 learners GEL 5,000 15,000 Two partners 2 Mid-level Annual tuition fee: 16,500 learners Below GEL 5,000 3 Affordable Three partners ➤ Partnership model, with 70-90% majority stakes ➤ Education business holding company won't exist ➤ GCAP involvement will be limited to: strategy setting, hiring financial director, oversight of CAPEX spending GEL 70 million+ EBITDA by 2025 GEL 185 million gross capital allocation from GCAP through 2025 Page 46#47Pipeline Recent acquisitions - education business Premium Mid-level British-Georgian Academy 2 Buckswood Affordable 3 Green School GEORGIA CAPITAL Transaction Purchase of 70% equity stake. Purchase of 80% equity stake. Purchase of 80% - 90%¹ equity stake. highlights ➤ Valued at 6.4x EV/EBITDA 2020. Valued at 6.4x EV/EBITDA 2020. Valued at 5.6x EV/EBITDA. Three high quality school partnerships across premium, mid-level and affordable education segments, providing a clear pathway to approximately 11,750 learners and to more than 50% of our targeted GEL 70 million EBITDA by 2025 School Segment Deal close date Total capital allocation from GCAP² Debt/Equity GCAP ownership Current capacity of learners Targeted capacity of learners Targeted cost per learner BGA Buckswood Green School Premium Mid-level Affordable 24 July 2019 29 July 2019 GEL 75 million GEL 17 million 25% 70% 750 3,350 35,000 - 40,000 40% 80% 730 2,700 13,000 - 16,000 Total GEL 21 million OGEL 113 million 50% 80% - 90%¹ 1,050 5,700 6,500 - 8,500 2,530 11,750 (1) (2) 80% equity stake in the current campus and 90% equity stake in three new schools that will be developed under green school brand. Includes actual and projected future capital allocations. Page 47#48Pipeline Acquisition of the leading Georgian digital marketing agency GEORGIA CAPITAL Acquisition of Redberry enables us to have a platform for investments in the digital business About Redberry ➤ One of the most successful Georgian digital marketing agency Providing tech-based marketing solutions to large Georgian corporates and government agencies ➤ 50%+ revenue growth in 2018, with 25% net profit margin ➤US$ 0.4 million cash consideration to acquire 60% equity stake US$ 2.8 million new capital injected for 1 2 digital start-up development Joint ventures with corporates - partnership model with minority stake of c. 20%. Creating digital start-ups focused and applicable to Georgia (c. US$ 0.1mln per start-up) Redberry has developed app "Lunchoba", engaged in delivering ready-food made to the offices. Page 48#49Content 1. 1H19 results discussion | Georgia Capital 2. Georgia Capital strategy 3. Portfolio overview 4. Georgian macro overview 5. Appendices GEORGIA CAPITAL Page 49#50Sovereign ratings with stable outlook and favourable macro fundamentals Key Ratings Highlights Rating Agency Rating Outlook Affirmed MOODY'S Ba2 Stable September 2018 S&P Global BB- Positive April 2019 Fitch Ratings BB Stable February 2019 Georgia is favorably placed among peers NORWAY SWEDEN FINLAND No sea Copenhador Wetric Sen LITHUANIA (RELAND London BLANDS Amterdam Berlin POLAND BELOIDS Parks GERMANY Bay, of day SAIN Fitch Rating Country Country Rating Rabat MOROCCO Outlook Armenia B+ Positive Azerbaijan BB+ Stable Belarus B Stable Czech Republic AA- Stable Georgia BB Stable Kazakhstan BBB Stable Turkey BB- Negative Ukraine B- Stable FRANCE ALGERIA BELARUS CZECH REPUB ADI HUNGARY V Zagreb ROMANIA ITALY FULANIA rhenia Mediterranean Sea General Facts Georgia Kyiv UKRAINE LIBYA EGYP KAZAKHSTAN Actans GEORGIA CAPITAL RUSSIA INDIANG UYU Bioce Seu UZBEKISTAN Toshkent KYRGYZSTAN Ankara Yerevan VerRADAL TURKEY TURKMENISTAN Ashgabat Dushane, TAKISTAN Baghdad IRAQ IRAN Riyadh AFGHANISTAN PAKISTAN Islamabad INDIA Area: 69,700 sq km Population (2018): 3.7 million Capital: Tbilisi; Economy Life expectancy: 73.5 years Official language: Georgian Literacy: 100% Currency (code): Lari (GEL) Nominal GDP (Geostat) 2018: GEL 41.1 billion (US$16.2 billion) Real GDP growth rate 2014-2018: 4.6%, 2.9%, 2.8%, 4.8%, 4.7% Real GDP 2007-2018 annual average growth rate: 4.5% GDP per capita 2018 (PPP, international dollar) IMF: 11,485 Annual inflation (end of period) 2018: 1.5% External public debt to GDP 2018: 34.3% DINGHA Page 50#51Georgia's key economic drivers Liberal economic policy Top performer globally in WB Doing Business over the past 12 years " Liberty Act (effective January 2014) ensures a credible fiscal and monetary framework: Public expenditure/GDP capped at 30%; Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%; Business friendly environment and low tax regime (attested by favourable international rankings); GEORGIA CAPITAL Regional logistics and tourism hub Strong FDI A natural transport and logistics hub, connecting land-locked energy rich countries in the east and European markets in the west " " Access to a market of 2.8 billion customers without customs duties: Free trade agreements with EU, China, Hong Kong, CIS and Turkey and GSP with USA, Canada, Japan, Norway and Switzerland; FTA with Israel and India under consideration. Tourism revenues on the rise: tourism inflows stood at US$ 3.2 billion in 2018 and international travelers reached 8.7 million in 2018 (up 9.8% y-o-y), out of which tourist arrivals were up 17% y-o-y to 4.8 million visitors. Regional energy transit corridor accounting for 1.6% of the world's oil and gas transit volumes. An influx of foreign investors on the back of the economic reforms have boosted productivity and accelerated growth " FDI stood at US$ 1.2 billion (7.6% of GDP) in 2018. Support from international community Electricity transit hub potential Political environment stabilised FDI averaged 9.8% of GDP in 2007-2018. Georgia and the EU signed an Association Agreement and DCFTA in June 2014 " " Visa-free travel to the EU is another major success in Georgian foreign policy. Georgian passport holders were granted free visa entrance to the EU countries from 28 March 2017. Discussions commenced with the USA to drive inward investments and exports. Strong political support from NATO, EU, US, UN and member of WTO since 2000; Substantial support from DFIs, the US and EU. Developed, stable and competitively priced energy sector " " " " " " " Only 20% of hydropower capacity utilized; 155 renewable (HPPS/WPPS/SPPS) energy power plants are in various stages of construction or development. Georgia imports natural gas mainly from Azerbaijan. Significantly boosted transmission capacity in recent years, a new 400 kV line to Turkey and 500 kV line to Azerbaijan built, other transmission lines to Armenia and Russia upgraded. Additional 2,000 MW transmission capacity development in the pipeline, facilitating cross-border electricity trade and energy swaps to Eastern Europe. Georgia underscored its commitment to European values by securing a democratic transfer of political power in successive parliamentary, presidential, and local elections and by signing an Association Agreement and free trade agreement with the EU. New constitution amendments passed in 2013 to enhance governing responsibility of Parliament and reduce the powers of the Presidency. Continued economic relationship with Russia, although economic dependence is relatively low. Russia began issuing visas to Georgians in March 2009; Georgia abolished visa requirements for Russians - Russia announced the easing of visa procedures for Georgians citizens effective December 23, 2015. Member of WTO since 2000, allowed Russia's access to WTO; In 2013 trade restored with Russia. " Direct flights between the two countries resumed in January 2010. " In 2018, Russia accounted for 13.0% of Georgia's exports and 10.3% of imports. Page 51#52Institutional oriented reforms Ease of Doing Business | 2019 (WB Doing Business Report) New Zealand Singapore Georgia up from 9th in 2018 1 2 6 Norway 7 US 8 Estonia 16 Germany 24 Azerbaijan 25 Kazakhstan Russia Poland Czech rep. Armenia Turkey 28 31 33 35 41 43 Italy 51 Ukraine 71 India 77 Corruption Perception Index | TI 2018 Economic Freedom Index | 2019 (Heritage Foundation) Estonia GEORGIA CAPITAL Top 8 in Europe region out of 44 countries UK USA 12 15 Georgia 16 Latvia 35 Bulgaria 37 Romania Azerbaijan Hungary 42 60 64 Turkey France 68 71 Italy 80 98 Russia Ukraine Business Bribery Risk, 2018 | Trace International Open Budget Index, 2017 | International Budget Partnership 147 Higher index means lower corruption Lithuania 59 Georgia is on a Czech Republic Georgia Latvia Slovakia Romania 59 58 par with EU Sweden Norway New Zealand 2 3 Norway UK 7 Georgia 5 up from 16th in 2015 58 member states Singapore 12 US 50 7 Estonia 15 47 Italy 13 France 21 Montenegro 45 Russia 15 Bulgaria 42 Japan 26 Turkey 41 Georgia 27 Germany 17 Bosnia & Hezegovinia 38 Czech rep. 32 Czech rep. 25 Armenia 35 Poland 36 Poland 30 Moldova Ukraine Kazakhstan Russia 33 Italy 40 Turkey 32 32 Armenia 77 Ukraine 39 31 Azerbaijan 95 Kazakhstan 42 28 Ukraine 105 India 53 Azerbaijan 25 Russia 108 Uzbekistan 23 Kazakhstan Turkey 127 Azerbaijan 77 130 Sources: Transparency International, Heritage Foundation, World Bank, Trace International. Page 52#53Diversified resilient economy Gross domestic product Source: Geostat US$ billion 20 12.6% 15 10 10 5.8% 9.6% 9.4% 0 Diversified nominal GDP structure, 1Q19 16% Source: Geostat Other Hotels and restaurants. Education 5% Trade 3% 6% 17% 12% Financial intermediation 7.2% 5% 6.2% 6.4% 4.6% 4.8% 4.7% 8% 3.4% 2.9% 2.8% 4% Healthcare 7% Industry 17% 0% Real Estate 7% -4% Agriculture 6% Public administration Construction Transport and communications 11% 8% 8% 4% V 3.7% GEORGIA CAPITAL I Nominal GDP, US$ bln LHS -Real GDP growth rate, y/y One of the Fastest Developing Economies in the Region Source: IMF Comparative real GDP growth rates, % (2007-2018 average) Source: Geostat Monthly Economic Activity Estimate, y-o-y growth 4.9 4.5 3.6 3.7 3.8 Economic activity increased by 4.9% y-o-y in 1H19¹ 7.5 3.0 3.1 6.5 6.7 1.5 Ukraine -0.3 Latvia Estonia Russian Federation Czech Republic Lithuania 2.4 5.7 2.0 1.7 2.0 5.2 5.3 5.3 5.55.6 6.0 5.6 5.6 5.0 Belarus Romania Armenia Moldova Poland Georgia Turkey Jan-16- Feb-16 Mar-16 Apr-16 May-16 Jun-16 4.3 3.4 2.9 2.9 2.6 2.1 2.1 2.0 2.1 1.5.3 0.8 0.3 4.4 4.6 4.7 4.3 4.4 4.6 4.6 4.7 5.1 5.0 3.8 4.0 3.7 3.5 2.2 2.0 1 preliminary data Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Page 53#540 500 2015 I 1500 2000 Sources: GeoStat 1000 p Room for further job creation 2000 1900 15.1 15.4 12.4 12.6 13.5 13.9 12.7 1800 1700 1600 1500 1400 1998 1999 2000 2001 Unemployment rate down 1.3 ppts y-o-y to 12.7% in 2018 Sources: GeoStat 2002 2003 2004 2005 Employed 2006 2007 2007 2008 2000 2009 2010 2011 17.4 17.9 18.3 17.4 17.3 17.2 16.9 Average monthly nominal earnings in business sector 1,045 942 961 852 1000 II SLOZ 2015_111 922 978 1,012 1,130 Unemployment % 2015 IV 2016 I 2016_11 Construction 2016_111 2016 IV 2017_I ado 2017_11 2017_III ism 2018_1 2017 IV 1,024 1,107 1,144 1,242 2018 II 2018 III 2018_IV State 2019_1 14.6 14.1 14.0 13.9 12.7 15 2011 2012 2012 2013 2014 2015 2015 2016 2017 2018 500 0 5 10 20 UNDP Human Development Index Sources: UNDP 2005 2006 2007 2008 2009 2010 2000 1,983 1,912 1,909 1,945 1,972 1,971 1,988 2,005 1,979 1,985 2,018 1,996 1,983 1,940 1,319 1500 1,106 1,150 1,187 300 1,152 294 331 347 361 343 345 345 335 290 284 279 276 246 Labor force decomposition 2018 Sources: GeoStat Hired workers accounted 51% in total employment in 2018 2011 2012 2013 1000 928 1,050 1,008 949 974 975 957 952 936 944 910 882 833 940 632 608 629 622 635 669 684 716 694 744 798 801 824 860 0 2005 2006 Total 2007 2008 2009 2010 2011 2012 2013 Hired Self-employed Unemployed 2014 2015 2016 2017 2018 Not-identified worker Page 54 2014 2015 2016 2017 GEORGIA CAPITAL#5540 20 0 -20 -40 Mar-00 60 80 Jul-11 Nov-11 Mar-12 Jul-12 Inflation targeting since 2009 Inflation y-o-y vs. inflation target Sources: NBG, GeoStat Nov-12 Mar-13 Inflation target is 3% from 2018 Jul-13 Nov-13 Mar-14 Jul-14 M2 vs. inflation, y-o-y,% Sources: Geostat, NBG Oct-00 May-01 Dec-01 Jul-02 Feb-03 Sep-03 Apr-04 Nov-04 Jun-05 -ΛΟΝ Mar-15 15.0 13.0 Inflation y-o-y 10 Source: GeoStat GEORGIA CAPITAL 10 11.0 8 9.0 9 7.0 4.6 4 5.0 3.0 2 1.0 0 -1.0 -2 -3.0 Jul-09 Feb-10 Jul-15 Nov-15 Mar-16 Sep-10 Apr-11 Jul-16 Nov-11 Nov-16 Jun-12 Jan-13 Mar-17 Aug-13 Mar-14 Jul-17 Nov-17 Oct-14 May-15 Dec-15 Mar-18 Jul-18 Jul-16 Feb-17 Sep-17 Apr-18 Nov-18 Jun-19 Nov-18 Mar-19 Jul-19 Jan-06 Aug-06 Mar-07 Oct-07 May-08 Dec-08 M2 Y/Y % LHS Inflation Y/Y % RHS 0 Source: Geostat 16 1300 14 1200 12 10 1100 8 1000 6 900 4 800 700 -2 600 500 400 Monthly Inflation Headline Inflation Core (non-food, non-energy) Inflation Average monthly nominal earnings Monthly nominal earnings increased on average 7.7% y-o-y in 2010-2018 2010 I 2010_III 2011_I 2011 III 2012_1 2012 III 2013 I 2013_III 2014_1 2014 III 2015_I 2015_III 2016 I 2016 III 2017_1 2018 I 2017 III 2018 III 2019_1 GEL 1,093 Page 55 0 -2 2 8 6 4#56Current account deficit supported by FDI Current account balance (% of nominal GDP) Sources: NBG 30% 20% 10% 0% -10% -5.8% -6.1% -6.5% -7.0% -9.7% -11.1% -20% -15.2% -19.8% -22.0% -30% -40% 2000 2001 2002 2003 2004 10.6% 10.3% 2005 2006 2007 2008 2009 2010 GEORGIA CAPITAL 30% Source: NBG Exports and Re-exports, US$ billion 20% 10.0 10% 9.0 8.0 0% Service exports ■Goods exports, geo-originated ■Re-exports 0.8 7.0 -12.8% 11.9% -5.9% -10.8% 3% 12.6% 13.1% -8.8% -7.7%-6.2% -10% 6.0 1.1 0.9 0.5 0.9 -20% 5.0 I 0.4 0.3 3.6 4.0 -30% 3.1 3.0 0.3 0.5 2011 2012 2013 2014 2015 2016 2017 2018 2019Q1 -40% 2.0 0.1 0.0 0.0 0.0 0.0 1.0 Investment income, net 0.6 0.7 1.0 0.0 04 FDI 0.5 0.7 0.6 2000 2001 Capital Goods Import, % of GDP 17.2% 15.1% FDI, % of GDP 2002 2003 2004 2005 2006 2007 2008 2009 0.2 0.2 0.1 0.2 2.5 3.1 3.1 2.6 2.5 2.5 2.1 1.9 1.6 0.9 1.1 1.3 1.3 1.6 2.0 2.6 3.0 3.0 3.1 3.3 2010 2011 2012 2013 2014 2015 2016 2017 2018 4.0 4.5 Services, net Current account Goods, net Current transfers, net FDI and capital goods import Source: GeoStat 20.0% 15.0% 9.6% 8.4% 10.0% 7.1% 4.7% 4.3% 3.4% 5.0% 12.3% 12.6% 11.9% 11.0% 10.9% 7.3% 7.8% 6.2% 65% 6.3% 20.0% 15.0% 7.6% 10.0% 0.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Page 56 5.0%#57Diversified sources of capital Strong foreign investor interest Sources: GeoStat 2,000 Visitors and tourism revenues Sources: GNTA, NBG GEORGIA CAPITAL FDI, US$ min, LHS FDI as a % of GDP 25% mln $ 3600 8.7 10.0 17.2% 12.3% 1,500 1,000 8.5% 500 0 9.6% 7.1% 15.1% ནི 1:|:ཀ ཀ Remittances - steady source of external funding Source: NBG Remittances increased to US$ 806 million, 8.3% y-o-y in 1H19 7.9 3100 20% 6.7 6.3 8.0 2600 5.7 5.9 11.0% 10.9% 11.9% 12.6% 2100 4.7 6.0 15% 1600 3.1 6.2% 7.3% 7.8% 6.5% 6.3% 4.0 7.6% 10% 1100 2.0 600 5% 100 0.0 0% 2011 2018 US$ millions 165 146 144 138 137 145 125 116 125 400 350 300 250 105 85 200 150 100 65 50 45 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 2017 2018 2019 Tourism inflows, US$ mln, LHS Number of foreign visitors, mln, RHS Export continues to support economic growth Source: Georstat In seven months of 2019 exports increased by 12.3% y-o-y to US$ 2.1 billion тил 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Exports, US$ min, LHS % change y/y, exports, RHS Page 57#581100 600 100 Tourism sector on the rise US$ million Tourism revenues to GDP Sources: NBG, Geostat 3600 3100 2600 2100 1600 6% 9% 11% 11% Spending per arrival, 2017 2011 2012 2013 2014 2015 2016 2017 2018 Source: WDI 1496 25% 1600 20% 1310 1400 18% 20% 1200 15% 14% 1000 15% 800 10% 600 400 5% 200 0% 0 Hungary Azerbaijan Cyprus Turkey Slovenia Poland Armenia Tourism inflows, US$ mln, LHS Arrivals to country's population, 2017 Source: WDI Tourism revenues, % of GDP 800 4 3.8 3.5 3.1 3.0 Thousands 700 472 600 425 3 2.5 2.5 500 349 328 400 306 2.5 1.7 1.7 1.6 1.3 2 1.0 1.0 0.9 1.5 1 0.5 0 Croatia Cyprus Montenegro Greece Estonia Georgia Albania Slovenia Bulgaria Latvia Czech Republic Lithuania Hungary Armenia Poland Turkey Ukraine Azerbaijan 248 300 0.6 0.5 0.5 0.5 0.3 0.2 200 100 Jan Feb Mar Apr May Jun 2016 2015 Number of Tourists (overnight visitors) Source: GNTA In seven months of 2019 number of overnight visitors increased by 8% y-o-y Czech Republic Croatia Greece Estonia Lithuania Montenegro Latvia Bulgaria 857 848 823 771 763 757 714 692 661 629 591 555 527 458 441 Georgia Albania Ukraine GEORGIA CAPITAL 140 570, Jul Aug Sep Oct Nov Dec 2019 2017 2018 Page 58#590 -100 -200 -300 -400 -500 -600 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Diversified foreign trade Goods' Trade Deficit Source: GeoStat Based on the preliminary data in the first seven months of 2019 trade deficit narrowed by 14% y-o-y to US$ (2.9) billion from US$ (3.3) billion, further decreasing FX pressure. Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Trade Deficit, US$ mln, LHS Electricity generation and trade, GWH Source: ESCO 1400 1200 1000 800 59% 600 45% 400 200 0 Jan-17 Feb-17 Mar-17 Apr-17 May-17 73% 88% 99% 99% Jun-17 Jul-17 Aug-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 % change y/y, trade deficit, RHS 63% 99% 68% 67% 91% 70% 86% Oil imports Source: GeoStat 1200 50% 1000 40% 800 30% 600 20% 400 10% 200 0% 0 -10% -200 -20% -400 -30% -600 2001 TPPS HPPS WPPS Imports Exports Domestic Supply Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 2002 2003 2004 2005 2006 2007 2008 Oil imports, US$ mln, 2009 2010 2011 2012 2013 64% 78% 96% 93% 99% 99% 84% 80% 74% 63% 71% 59% 54% 55% 83% 99% 99% Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Page 59 Oil imports, % chage, y/y GEORGIA CAPITAL 90% 70% 50% 30% 10% -10% -30% -50%#60Diversified foreign trade Imports of Goods, contribution to growth I Investment goods Consumer goods Source: NBG 40% 30% 20% 10% 0% -10% -20% -30% -40% Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Importing countries, 1H19 Sources: GeoStat Armenia 3% Ukraine 4% United States 5% Azerbaijan 7% Other Foreign Demand, 1H19 Source:, Geostat 6% 6% 21% Intermediate goods Import growth, y/y, % 40% 30% 20% 10% 0% 12% -10% -20% -30% 15% -40% Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19 Jun-19 18% EU countries 26% Turkey 17% China 10% Russia 10% Machinery and transport equipment ■Crude materials, except fuels Manufactured goods 17% Exporting countries, 1H19 Sources: GeoStat 20% ■Beverages and tobacco Chemicals and related products Food and live animals Commodities Mineral fuels, lubricants and related materials Animal and vegetable oils United States 4% Other 23% EU countries 24% Ukraine 7% Armenia 8% Turkey Azerbaijan 12% 7% Russia 15% Page 60 GEORGIA CAPITAL#613000 2500 2000 1500 1000 500 0 -500 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Hungary Georgia Turkey Prudent monetary policy ensures macro-financial stability International reserves Sources: NBG 3500 Monetary policy rate GEORGIA CAPITAL NBG continued gradual exit from moderately tightened monetary policy and decreased its refinancing rate by 50 basis point in 1Q19. Dec-05 90-unr Sources: NBG Official Reserve Assets, US$ mln Net Foreign Assets, US$ mln 3500 % کس 14 3000 12 2500 10 2000 1500 1000 500 0 0 8 6 2 4 -500 0 Dec-06 Jun-07 Dec-07 80-unr Dec-08 60-unr Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Nonperforming loans to total gross loans, latest 2019 Sources: IMF Lithuania Poland Romania Latvia Armenia Bulgaria Bosnia and Herzegovina Kazakhstan Croatia Portugal Russia 2.20% 2.40% 3.00% % 370% 00% 4.90% 10% 6.40% 7.60% 8.40% 8.60% 9.4% 9.40% 10.70% Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 0% Armenia Georgia 30% 25% 20% 15% 10% 5.75% 6.50% 5% Russia Turkey Kazakhstan Belarus 7.25% 9.00% 10.00% 19.75% Monetary policy rate remains low vs. peers Sources Central banks end-2017 end-2018 latest-2019 Feb-08 Oct-08 Jun-09 Feb-10 Oct-10 Jun-11 Feb-12 Oct-12 Jun-13 Feb-14 Oct-14 Jun-15 Feb-16 Oct-16 Jun-17 Feb-18 17.00% Oct-18 Jun-19 Ukraine Azerbaijan 8.25% Page 61 6.50#62Floating exchange rate - policy priority Central Bank's interventions Sources: NBG 120 250 200 150 100 60 4040 4040 50 27202020 m TII II 0 NBG purchased US$ 165 million in 1H19 to farther accumulate reserves 100 60 40 US$ sale Real effective exchange rate (REER) Sources: NBG 155 145 135 125 115 Jan-2003 100 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 -200 -140 -50 -100 -80 -150 -120 -85 -15 -20 -40 ᎥᏝ -20-30201825 -20 -40 -30 -63 50 -70 -65 ויידי US$ purchase Bilateral exchange rate indices (Dec2012= 100) Sources: NBG 180 Flexible exchange rate regime plays a role as 160 shock-absorber 140 120 100 80 60 40 20 0 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 -eb-14 Apr-14 Jun-14 EUR/GEL Aug-14 RUB/GEL Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-1 Oct- Dec-17 Feb-18 Apr-18 Jun- Aug-18 Oct-18 Dec- Feb-19 Apr-19 Jun-19 TRY/GEL ⚫USD/GEL 80 180 160 75 140 70 120 100 65 80 60 60 60 40 55 20 0 50 Jul-11 105 95 85 Feb-03 Sep-03 Apr-04 Nov-04 Jun-05 Jan-06 Aug-06 Mar-07 Oct-07 May-08 Dec-08 60-In REER (Jan 2003=100) Dollarization ratios Source: NBG Loan dollarization Linear (REER (Jan 2003 = 100)) Deposit dollarization Dec-11 May-12 Oct-12 Mar-13 Aug-13 Jan-14 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 Dec-16 May-17 Feb-10 Sep-10 Apr-11 Nov-11 Jun-12 Jan-13 Aug-13 Mar-14 Oct-14 May-15 Dec-15 Jul-16 Feb-17 Sep-17 Apr-18 Nov-18 Jun-19 Oct-17 Mar-18 Aug-18 Jan-19 Jun-19 Page 62 50 55 60 65 75 70 80 GEORGIA CAPITAL#63Low public debt Public debt as % of GDP is capped at 60% Sources: MOF External public debt to GDP, % 70% 60% 50% 40% 30% 20% 10% 0% 2006 2007 Breakdown of public debt Source: MOF, as of December 2018 70% Total public debt to GDP, % 60% 50% 40% Multilateral 59% Domestic 30% 19% External 81% 20% 10% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F Bilateral 14% Eurobond 7% GEORGIA CAPITAL Modified Fiscal deficit, % of GDP (IMF programme) Current vs Capital Expenditure Source: MOF Source: MOF consolidated budget expenditure + increase in nonfinancial asset is -1 capped at 30% of GDP 100% 100% -1.2 78.5% 80.5% 75.6% 74.3% 75.5% 76.2% 76.0% -1.4 80% 80% -1.6 -1.8 60% 60% -2 40% 24.4% 25.7% 24.5% 23.8% 24.0% 40% 21.5% -2.2 19.5% -2.5 -2.4 -2.6 20% 20% -2.7 -2.7 -2.6 -2.8 -2.9 -2.9 0% 0% -2.8 -3.0 2015 2016 2017 2018 2019F 2020F 2021F -3 % 2015 2016 2017 2018E 2019F 2020F 2021F 2022F Capital Expenditures and net lending Current Expenditures Page 63#64Growth-oriented government reforms (2018-2020) 1 Structural Reforms 2 Promoting Transit & Tourism Hub GEORGIA CAPITAL Small government concept Optimization of government units and decrease bureaucracy expenses to get small, efficient and flexible government ■ Rail " Compensation of employees as a % of GDP will decrease and remain close to 3.9% of GDP ■ Tax Reform Favorable tax rates for SME development Special tax regimes for regional offices of multinational companies Enhancing easiness of tax compliance Capital Market Reform ■Boosting stock exchange activities Developing of local bond market Pension Reform ■Introduction of private pension system PPP Reform ■ Introduction of transparent and efficient PPP framework " Public Investment Management Framework " Improved efficiency of state projects ■ Law of Georgia on Entrepreneurs " " New law will be drafted reflecting requirements of Association Agreement between EU and Georgia Responsible Lending Regulatory actions to support responsible lending B Decrease household over indebtedness ■ Association Agreement Agenda 3 Roads Plan to finish all spinal projects by 2020 - East-West Highway, other supporting infrastructure Baku Tbilisi Kars new railroad line ■Railway modernization and integration in international transport systems Maritime Anaklia deep water Black Sea port - Strategic location Capable of accommodating Panamax type cargo vessels High capacity - up to 100 million tons turnover annually Up to USD 2.5 billion for the project completion; General Education Reform Education Maximising quality of teaching in secondary schools Fundamental Reform of Higher Education ■Based on the comprehensive research of the labour market needs Improvement of Vocational Education Increase involvement of the private sector in the professional education Page 64#65Content 1H19 results discussion | Georgia Capital 1. 2. Georgia Capital strategy 3. Portfolio overview 4. Georgian macro overview 5. Appendices GEORGIA CAPITAL Page 65#66NAV Statement | 30 June 2019 GEORGIA CAPITAL Valuation Realized GEL thousands unless otherwise noted % Multiples Fair Values Change% MOIC IRR Method MOIC Jun-19 Dec-18 Listed Equity Investments Jun-19 1,194,712 Dec-18 Jun-19 977,827 22.2% 6.5x 33.0% 2.1x Georgia Healthcare Group PLC 57.0% LSE 661,413 520,332 27.1% 5.7x 43.9% 1.0x Bank of Georgia Group PLC 19.9% LSE 533,299 457,495 16.6% 7.4x 21.4% 3.3x Private Investments 1,042,811 905,547 15.2% Late Stage (at fair value) 681,973 628,326 8.5% 2.8x 0.6x Water Utility 100% EV/EBITDA 9.0 8.8 459,706 431,017 6.7% 2.4x 32.0% 0.3x Housing Development 100% DCF 60,858 66,785 -8.9% 1.9x 14.6% 1.2x P&C Insurance 100% P/E 9.1 7.4 161,409 130,524 23.7% 18.9x 32.9% 3.1x Early stage (at fair value) 314,901 271,288 16.1% 1.0x Renewable Energy 65% Cost 62,737 61,182 2.5% 1.1x 3.7% Hospitality & Commercial RE 100% NAV 182,431 149,079 22.4% 1.4x 14.7% Beverage 86% 69,733 61,027 14.3% 0.6x 0.0% Of which, wine EV/EBITDA 9.9 9.1 59,633 56,771 5.0% 1.3x 7.0% Of which, beer EV/Sales 2.1 2.2 10,100 4,256 NMF 0.1x 0.0% Pipeline Education 45,937 5,933 NMF Auto Service Other Digital Services Total Portfolio Value (1) Net Debt (2) of which, Cash and liquid funds of which, Loans issued of which, Gross Debt Net other assets/ (liabilities) (3) Net Asset Value (1)+(2)+(3) Shares outstanding Net Asset Value per share (GEL) 100% Cost 100% EV/EBITDA 10.1 60% Cost 100% Cost 11,209 7,071 58.5% 24,363 (1,326) NMF 8,790 NMF 1,575 188 NMF 2,237,523 1,883,374 18.8% (304,519) (196,915) 54.6% 323,959 299,650 8.1% 232,289 (860,767) 305,480 (802,045) -24.0% 7.3% 5,361 1,762 NMF 1,938,365 1,688,221 14.8% 35,961,403 38,089,558 -5.6% 53.90 44.32 21.6% Net Asset Value per share (GBP) 14.81 13.05 13.5% Page 66#67GCAP cash flow statement (management accounts) | 1H19 GEORGIA CAPITAL Cash flow statement GEL thousands unless otherwise noted Dividends received Interest received 1H19 1H18 Change 32,951 10,000 NMF 19,110 10,426 83.3% Interest paid (24,694) (21,785) 13.4% Cash inflow from Operations before operating expenses 27,367 (1,359) NMF GCAP operating expenses (9,820) (2,787) NMF Cash inflow from operations 17,547 (4,147) NMF Capital allocations (43,152) (38,729) 11.4% Loans (Issued)/Repaid of which, Loans to portfolio companies of which, Loans to third parties Cash outflow on buybacks of which, Management Trust 90,788 90,788 (249,635) NMF (127,720) NMF (121,915) NMF (61,322) (49,580) 22.8% (3,444) (26,478) -87.0% of which, Buyback programme (57,878) (23,102) NMF Cash outflow/inflow from financing activities 467,434 NMF Proceeds from debt securities issued 715,729 NMF Repayment of borrowings from former Parent company (248,295) NMF Demerger related outflows (587) (24,245) -97.6% FX effect & Fair valuation 21,035 (13,642) NMF Net cash flow 24,309 87,456 -72.2% Beginning cash and liquid funds Ending cash and liquid funds 299,650 264,546 13.3% 323,959 352,002 -8.0% Page 67#68Reconciliation of management accounts to IFRS Income statement reconciliation, 1H19 GEORGIA CAPITAL Gel thousands, unless otherwise noted GHG BOG Water Utility Housing Development P&C Insurance Renewable Energy Hospitality & Commercial Real Estate Beverages Auto Service Digital Services Corporate Centre Eliminations/ Consolidations Group Total 141,081 75,804 28,689 12,109 30,885 7,087 (1,663) 15,662 Total investment return Net foreign currency loss/gain Net Income (Management accounts) 141,081 75,804 28,689 12,109 30,885 7,087 (1,663) 15,662 Difference between Shareholder return* and IFRS profit of portfolio companies (132,022) (75,804) (26,725) (19,957) (22,577) (680) (1,179) (19,224) (18,983) 42 Profit attributable to non-controlling shareholders 16,060 (366) (28) (3,877) 15 Reversal of intragroup dividend income Reversal of Hotel revaluation gains for Group consolidation purposes** Reversal of Fair valuation of Debt securities measured at FVOCI Reversal of gain on intragroup sale of assets Other Profit for the period (IFRS Consolidated) 25,119 *Calculated based on fair value estimates. ** Hotels are accounted at cost method for IFRS group consolidated purposes. 1,964 (7,848) 8,308 (1,046) 5,880 (24,764) (3,321) 21,597 331,251 (25,625) (25,625) (4,028) 305,626 (317,109) 11,804 (11,981) (11,981) (8,376) (8,376) (4,286) (4,286) (2,956) (2,956) (1,924) (1,924) 57 44 (4,028) (29,523) (29,202) Page 68#69Reconciliation of management accounts to IFRS Balance sheet reconciliation, 30 June 2019 GEORGIA CAPITAL Gel thousands, unless otherwise noted GHG BOG Water Housing P&C Renewable Utility Development Insurance Energy Hospitality & Commercial Beverages Real Estate Auto Service Digital services Other Corporate Eliminations/ Centre Consolidations Group Total Management accounts: 661,413 533,299 459,706 60,858 161,409 62,737 182,431 69,733 24,363 8,790 12,784 (299,158) 1,938,365 Difference between Fair Value and Book value of portfolio companies (361,366) - (184,821) (26,922) (105,348) 3,531 1,771 (7,592) (22,975) (3,977) (707,700) (533,299) Transfer of Market value of 19.9% in BoG to Corporate Center Reversal of hotels' revaluation gains for group consolidation purposes* Reversal of irrevocable instructions on buyback programme GHG Hospitals and clinics accounted at cost for GCAP consolidation purposes M² long-term share based Compensation adjustment for consolidation purposes Goodwill recognised at Corporate centre Other 533,299 (35,437) (35,437) (14,396) (14,396) (9,199) (9,199) Total equity attributable to shareholders of Georgia Capital (IFRS) 300,047 274,885 33,936 56,061 66,268 184,202 62,141 1,388 4,813 12,784 234,143 *Hotels are accounted at cost method for IFRS group consolidated purposes. (4,499) (4,499) 13,653 13,653 2 (3,658) (3,656) (53,536) 1,177,132 Page 69#70Group Consolidated IFRS Accounts Consolidated IFRS Income Statement Consolidated IFRS Statement of Cash Flow GEORGIA CAPITAL GEL thousands, unless otherwise noted Revenue Cost of sales Gross profit Operating expenses EBITDA Share in profit of associates 1H19 672,372 616,395 (415,287) (386,676) 257,085 229,719 1H18 change GEL thousands, unless otherwise noted 9.1% Net Cash flow from operating activities (147,975) (122,815) 7.4% 11.9% 20.5% Net cash flows used in investing activities Net cash from financing activities 1H19 1H18 Change 109,422 (194,909) 25,347 71,587 52.9% (508,051) -61.6% 254,697 -90.0% 109,110 106,904 2.1% Effect of exchange rates changes on cash and cash equivalents 317 NMF Net (decrease) increase in cash and cash equivalents 5,768 (54,372) (9,340) (191,107) NMF -71.5% Dividend income 24,951 NMF Depreciation and amortisation (54,712) (34,920) 56.7% Net foreign currency (loss)/ gain (53,621) 4,787 NMF Cash and cash equivalents, beginning of the year 256,930 346,241 -25.8% Net realized gains from investment securities measured at FVPL 1,011 NMF Cash and cash equivalents of disposal group held for sale beginning of the period 48,840 NMF Interest income Interest expense Net operating income before non-recurring items 14,908 10,703 (65,571) (46,475) (23,607) 40,999 39.3% Cash and cash equivalents of disposal group held for sale, end of the period 16,528 NMF 41.1% NMF Cash and cash equivalents, end of the period 202,558 187,446 8.1% Net non-recurring items Profit before income tax expense (26,990) (3,383) (36,829) 4,170 -90.8% NMF Income tax expense (2,212) (1,467) (29,202) 2,703 50.8% NMF Profit for the period Total profit/(loss) attributable to: - shareholders of Georgia Capital PLC - non-controlling interests - basic and diluted earnings per share (41,008) (12,798) NMF 11,806 15,501 -23.8% (1.1597) (0.3383) NMF Page 70#71Group Consolidated IFRS Accounts Consolidated IFRS Balance Sheet GEL thousands, unless otherwise noted Cash and cash equivalents Amounts due from credit institutions Debt securities owned Equity investments at fair value Accounts receivable Insurance premiums receivable Inventories Investment properties Prepayments Income tax assets Property and equipment Goodwill 30-Jun-19 31-Dec-18 Change 202,558 256,930 -21.2% 58,166 40,299 44.3% 120,304 71,824 67.5% 533,299 457,495 16.6% 194,540 170,228 14.3% 87,593 57,801 51.5% 290,532 276,230 5.2% 178,094 151,232 17.8% 133,347 117,909 13.1% 1,503 2,405 -37.5% Intangible assets 1,853,904 150,150 67,703 1,671,917 10.9% 142,095 5.7% 51,634 31.1% Other assets 272,473 251,462 8.4% Total assets 4,144,166 3,719,461 11.4% Accounts payable 170,968 143,114 19.5% Insurance contracts liabilities 99,405 68,207 45.7% Income tax liabilities 1,183 1,119 5.7% Deferred income 55,261 62,345 -11.4% Finance lease liabilities 97,025 NMF Borrowings 934,604 764,355 22.3% Debt securities issued 1,040,329 916,401 13.5% Other liabilities 241,563 235,771 2.5% Total liabilities 2,640,338 2,191,312 20.5% Total equity attributable to shareholders of Georgia Capital PLC Non-controlling interests Total equity Total liabilities and equity 1,177,132 1,199,144 -1.8% 326,696 1,503,828 4,144,166 329,005 -0.7% 1,528,149 3,719,461 -1.6% 11.4% GEORGIA CAPITAL Page 71#72Glossary Combined ratio equals sum of the loss ratio and the expense ratio GEORGIA CAPITAL EBITDA - Earnings before interest, taxes, non-recurring items, FX gain/losses and depreciation and amortization; The Group has presented these figures in this document because management uses EBITDA as a tool to measure the Group's operational performance and the profitability of its operations. The Group considers EBITDA to be an important indicator of its representative recurring operations. EV enterprise value Expense ratio in P&C Insurance equals sum of acquisition costs and operating expenses divided by net earned premiums GCAP refers to the aggregation of stand-alone Georgia Capital PLC and stand-alone JSC Georgia Capital accounts Georgia Capital and "the Group" refer to Georgia Capital PLC and its portfolio companies as a whole IRR - for portfolio companies is calculated based on a) historical contributions to the portfolio company less b) dividends received and c) market / fair value of the portfolio company at 30 June 2019 Liquid assets & loans issued include cash, marketable debt securities and issued short-term loans Loss ratio equals net insurance claims expense divided by net earned premiums LTM - last twelve months MTD - Month to date MOIC - Multiple of Capital Invested is calculated as follows: i) the numerator is the cash and non-cash inflows from dividends and sell-downs plus fair value of investment at reporting date ii) the denominator is the gross investment amount NAV - Net Asset Value, represents the net value of an entity and is calculated as the total value of the entity's assets minus the total value of its liabilities. Net investment - gross investments less capital returns (dividends and sell-downs) NMF - Not meaningful NOI - net operating income NTM - next twelve months Realised MOIC - Realised Multiple of Capital Invested is calculated as follows: i) the numerator is the cash and non-cash inflows from dividends and sell-downs ii) the denominator is the gross investment amount RevPAR - Revenue per available room ROAE - Return on average total equity (ROAE) equals profit for the period attributable to shareholders divided by monthly average equity attributable to shareholders of the business for the same period for BoG and P&C Insurance ROIC - return on invested capital is calculated as EBITDA less depreciation, divided by aggregate amount of total equity and borrowed funds Total return / value creation - total return / value creation of each portfolio investment is calculated as follows: we aggregate a) change in beginning and ending fair values, b) gains from realized sales (if any) and c) dividend income during period. We then adjust the net result to remove capital injections (if any) to arrive at the total investment return/shareholder return Page 72#73Company information Georgia Capital PLC Registered Address 84 Brook Street London W1K 5EH United Kingdom www.georgiacapital.ge Registered under number 10852406 in England and Wales Stock Listing London Stock Exchange PLC's Main Market for listed securities Ticker: "CGEO.LN" Contact Information Georgia Capital PLC Investor Relations Telephone: +44 (0) 203 178 4052; +995 322 000000 E-mail: [email protected] Auditors Ernst & Young LLP 25 Churchill Place Canary Wharf London E14 5EY United Kingdom Registrar Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS13 8AE United Kingdom Please note that Investor Centre is a free, secure online service run by our Registrar, Computershare, giving you convenient access to information on your shareholdings. Investor Centre Web Address - www.investorcentre.co.uk. Investor Centre Shareholder Helpline +44 (0) 370 702 0176 Share price information Shareholders can access both the latest and historical prices via the website www.georgiacapital.ge GEORGIA CAPITAL Page 73#74GEORGIA CAPITAL