#1BANK OF GEORGIA INVESTOR 20 DAY 20 Overview and Strategy Speaker: Archil Gachechiladze CEO Conc#2*Based on MAY-20 external research by IPM Georgia BANK OF GEORGIA AT A GLANCE ● LEADER PAYMENTS AND FINANCIAL MOBILE APP 48% BOG share in number of transactions in POS terminals c. 6mln transactions in mobile app per month STRONGEST RETAIL FRANCHISE SUSTAINABLE PROFITABILITY 41% market share in deposits of individuals MOST TRUSTED BANK* 20%+ ROE over the last four years 2#3RESILIENCE THROUGHOUT THE PANDEMIC 3 OPERATIONAL CONTINUITY ABUNDANT LIQUIDITY SUPPORTING THE PUBLIC HEALTH SYSTEM AND THE COMMUNITIES CAPITAL STRENGTH#4EMPLOYEES OPERATIONAL CONTINUITY CUSTOMERS • Anticipated national lockdown and promptly shifted all of our 2,000+ back office employees to remote work • Implemented extensive safety measures in the front office • Provided transportation to front office employees • Offered 3-month payment holidays on retail loans • Strengthened safety measures in cash vault and ensured uninterrupted cash supply#5STANDING BY CUSTOMERS AND COMMUNITIES DURING LOCKDOWN ENABLING BUSINESSES TO Adapt operations and switch to digital sales 1 adapter • Continue operating during lockdown by selling future-use coupons to customers through the online platform set up by the Bank • Sell their products on amazon.com ebay ENABLING MORE RETAIL CUSTOMERS TO GO DIGITAL BY Launching mBank without data package BOG 421PM ეძებნა ხელმისაწვდომი თანხა 380.00 ჩემი ფულ 400.00 Q ენი ვალდებულებები 200.000 5,453 PLUS 28.453 ბოლო ოპერაცroსი დღეს კატა შპს სემფლი KOR ZEველდეგე 5,000.00 305330060 0% 0036 -7.60 სერსათი > სუპერმარკეტი დღეს ანტრე -11.60 სურსათი > სუპერმარკეტი 000 მთავარი პროდექტები გადარიცივები სტატისტიკა შეტი O • Removing fees on mBank/iBank transactions for 2 months SUPPORTING PUBLIC HEALTH Donating 20,000 PCR tests and 10 ventilators to Georgian government Maximum safety measures in our branches 5#6LIQUIDITY COVERAGE RATIO ENSURING ABUNDANT LIQUIDITY After repayment of GEL 500 million bonds in June 147% 137% 133% 135% 126% 121% DEC-19 MAR-20 APR-20 MAY-20 JUN-20 SEP-20 100% minimum - requirement • GEL 500 million local currency bonds due and repaid in June 2020 . Hit by high Lari cost during the first phase of the pandemic • Achieved commitments for US$200 million from IFIs during the first nine months of 2020 • Maintaining high liquidity given COVID-19-related uncertainty 6#7ENTERING COVID-19 ENVIRONMENT WITH A DE-RISKED BANKING SECTOR 7 • Introduction of responsible lending regulations in December 2018 • Shift in loan portfolio mix that followed the new regulations Robust risk management system at the Bank COST OF CREDIT RISK RATIO COVID-19 impact recorded in 1Q20 2.7% 2.4% 2016 2.2% 1.6% 2017 2018 Cost of credit risk ratio normalised 1.1% 0.9% 2019 9M19 1.1% 9M20 Cost of credit risk ratio#8STRENGTH OF CAPITAL • Upfront provision for the full economic cycle: 8 NBG BASEL III CET1 CAPITAL ADEQUACY RATIO 12.4% 12.2% NBG - c. GEL 400 million IFRS-GEL 220 million 11.5% 9.9% 9.9% 9.1% 8.3% • Release of capital buffers by the National Bank of Georgia • Strong internal capital generation 7.0% 8.1% 9.5% 10.1% 6.9% 6.9% 6.9% DEC-16* DEC-17 DEC18 DEC-19 MAR-20 JUN-20 SEP-20 CET1 capital requirement ● CET1 capital adequacy ratio * Basel II CET1 capital adequacy ratio and requirement#9STRENGTH OF CAPITAL BOG REGULATORY CAPITAL VS. IFRS EQUITY - SEP-20 GEL millions % of RWAs 9.9% 2.7% 0.9% 1.8% 266 2,310 132 415 1,496 3.6% NBG CET1 capital Loan IP Other provisioning provisioning deductions* methodology methodology BOG equity (IFRS) difference difference * Revaluation reserve, investments in non-financial subsidiaries and intangible assets Existing additional capital buffers (within c.3.6% of risk-weighted assets) reflecting differences in provisioning methodology between NBG and IFRS 9 9#10STRONG COMEBACK IN 3Q20 ROE - TRACK RECORD OF PROFITABILITY 25.2% 26.4% 26.1% 22.2% 26.0% 21.8% 2016 2017 2018* 2019** 1Q20 2Q20 3Q20 -18.6% 2020 *Adjusted for demerger-related costs, demerger-related corporate income tax gain, one-off impact of re-measurement of deferred tax balances, and one-off termination costs of the former CEO *Adjusted for one-off termination costs of the former CEO and executive management ** Challenging operating environment affecting all quarters in 2020 10 10 Upfront expected credit loss reserves for the full economic cycle and loan modification charges affecting the first quarter#11CREATING OPPORTUNITIES FOR OUR COMMUNITIES EDUCATION EMPLOYMENT BUSINESS ich 11#12EDUCATION CREATING OPPORTUNITIES FOR OUR COMMUNITIES EMPLOYMENT BUSINESS 12 Scholarships ET MON CHEVENING M EUROPE FULBRIGHT SAN DIEGO STATE UNIVERSITY Preparing the youth for the future Providing career advice to students, raising awareness about professions of the future, and enabling the youth to access diverse opportunities, such as exclusive shadowing projects and crash courses The biggest thing to ever happen to Georgian Startups. Really. 500 We, in partnership with the Geor- gian Innovation and Technology Agency, brought Silicon Valley's finest to Georgia. 30 startups have an opportunity to scale up and a chance to Ideathecas Building multi-functional resource hubs in Georgia's public schools Providing internet and educational supplies to children living in poverty ჩართე become global companies. Encouraging Social Businesses Bank of Georgia has been a partner of global Social Impact Award from the very SOCIAL IMPACT AWARD beginning of their expansion to Georgia. To help promote the cause, we've also launched our own grant programme. Both of these programmes provide grants as well as expert advice to businesses that address biggest social challenges in our communities.#13* ISS‣ HIGH ESG SCORES AND MORE FOCUS ON ESG GOING FORWARD ENVIRONMENT 3 SOCIAL 2 GOVERNANCE 3 MSCI Bank of Georgia falls into the highest scoring range relative to global peers CCC B LAGGARD BB BBB A AA AAA AVERAGE LEADER INCLUDED IN THE GLOBAL RESPONSIBLE INVESTMENT INDEX FTSE4GOOD SINCE 2017 * ISS uses 1-10 scale. 1 indicates lower governance risk, while 10 indicates higher governance risk versus its index or region. 1 indicates higher E&S disclosure, while 10 indicates lower E&S disclosure. Scores are as of 1 OCT 2020. 13#14STRENGTH OF OUR BUSINESS RETAIL BANKING Mass Retail საქართველოს ბანკი BANK OF GEORGIA CORPORATE AND INVESTMENT BANKING Corporate Banking SOLO MSME WM and Investment Banking 14#15Mass Retail RETAIL BANKING SOLO MSME Gross loans GEL 2.8BLN up 11.6% YoY Deposits GEL 3.2BLN GEL 2.6BLN Gross loans Deposits GEL 2.6BLN Gross loans GEL 3.2BLN Deposits GEL 0.9BLN up 29.3% YoY up 22.0% YoY up 21.9% YoY up 27.7% YoY up 15.6% YoY ROAE 27.5% ROAE 28.9% UPSIDES Georgian emigrants and Premium Mass Retail segment Tailor-made bundled offerings Balance sheet figures as of SEP-20 and ROAE for 3Q20 ROAE 21.5% Next level service model 15#16CORPORATE AND INVESTMENT BANKING Corporate Banking Gross loans GEL 4.5BLN up 20.9% YoY Deposits GEL 5.8BLN up 55.8% YoY ROAE 30.7% Advanced advisory franchise Balance sheet figures as of SEP-20 and ROAE for 3Q20 for Corporate and Investment Banking segment UPSIDES Wealth Management and Investment Banking AUM GEL 2.7BLN up 10.6% YoY Brokerage for Retail customers 16#17༣. ཏནྟི, ༣ གཉྩ, STRATEGIC FOCUS#18STRATEGIC FOCUS 18 DATA-DRIVEN ORGANISATION Payments CUSTOMER EMPLOYEE Mobile app SATISFACTION EMPOWERMENT Loyalty STRONG FRANCHISE PROFITABILITY#19PAYMENTS AS A DAILY TOUCHPOINT WITH CUSTOMERS 48% 26% 23k+ Multifunctional POS terminals BOG share in number of transactions in POS terminals (+2% YoY) YoY increase in number of transactions in BOG terminals 3.1k+ Self-service terminals 2.3mln+ Mass Retail customers 19#20THE MOST POPULAR MOBILE APP NUMBER OF TRANSACTIONS, MILLIONS 18.3 14.3 13.6 12.8 10.8 9.5 17.2 8.1 7.0 11.5 12.5 13.3 5.5 9.5 8.2 6.7 5.5 4.1 1.4 1.5 1.4 1.3 1.3 1.3 1.1 1.0 1.1 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 iBank mBank 38.8% Daily active users/monthly active users NEXT STEPS: BUILDING THE GO-TO MOBILE APP 9:41 9:41 < პროდუქტები 8,744.00 ვალუტის კურსებ 1,000.00 ოფიციალური კურს 07.05.2020 / 15:32 850.00$ 850.00$ $ 1 Jaa com მიბმული ბარათები (2) 3.1980 +0.0435 BANK OF American Express Gold... **** 5474 € 193MM ვადა გასდის: 5 დღეში 3.4702 +0.0012 ანგარიშის დეტალე £ 1939600 L 3007 ანგარიშის ნომერი GE68BG00000942604500 c. 6mln Transactions per month 700K+ Active digital users 川 自 82.5% Customer satisfaction score ANDROID APP ON Google play Download on the App Store 4.8 6 4.7 20#21LOYALTY PLUS LOYALTY PROGRAM - ONE OF THE STRENGTHS OF BANK OF GEORGIA 1.3mln c. 125k 43% active Loyalty Program members loyalty points exchange operations per month average increase in sales volume during merchant campaigns ADVANCED ANALYTICS for partner merchants PERSONALISED campaigns 21#22CUSTOMER SATISFACTION FOCUSED ON INCREASING CUSTOMER SATISFACTION BY • Engaging with customers proactively and responding in real time • Anticipating customer needs, wants, and future behavior Harnessing strong human relationships with data analytics for dynamic customer insights • Investing in technology to deliver seamless customer experiences salesforce MEDALLIA NPS 42.3% 38.8% 37.5% 36.6% 34.3% 32.8% JUN-18 NOV-18 JUN-19 NOV-19 FEB-20 AUG-20 Based on external research by IPM Georgia 22#23EMPLOYEE EMPOWERMENT Re-design of employee experiences High-trust environment Employees feel more engaged 74% High-Performing Organisations Benchmark -68% 2019 ● 71% 2020 Based on KORN FERRY survey 68% Banking Industry Benchmark New talent development strategy Values-based organisation and enabled 74% High-Performing Organisations Benchmark ●64% 2019 ●69% 2020 68% Banking Industry Benchmark 23#24DATA-DRIVEN ORGANISATION 24 DATA CULTURE Data culture is decision culture DATA IN BANKING DATA BEYOND BANKING Use of analytics for the majority of decisions and business processes Use of analytics for data monetisation and to create additional value for customers, the Bank, and the ecosystem#25STRONG FRANCHISE 25 MOST TRUSTED BANK* LEADER IN DEPOSITS OF INDIVIDUALS 41% market share * Based on MAY-20 external research by IPM Georgia#26BANK OF THE FUTURE DATA-DRIVEN ORGANISATION Payments CUSTOMER EMPLOYEE Mobile app SATISFACTION EMPOWERMENT Loyalty STRONG FRANCHISE PROFITABILITY 26#27DISCLAIMER - FORWARD LOOKING STATEMENTS 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 Bank of Georgia Group 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: macroeconomic risk, including currency fluctuations and depreciation of the Georgian Lari; regional instability; loan portfolio quality; regulatory risk; liquidity and funding risk; capital risk; operational risk, cyber security, information systems and financial crime risk; COVID-19 pandemic impact risk; climate change 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 of the Group, including the 'Principal risks and uncertainties' included in Bank of Georgia Group PLC's Annual Report and Accounts 2019 and in 2Q20 and 1H20 results announcement. No part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in Bank of Georgia Group PLC or any other entity within the Group, and must not be relied upon in any way in connection with any investment decision. Bank of Georgia Group PLC and other entities within the Group 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. 27#28• THANK YOU