#1BANK OF GEORGIA GROUP PLC INVESTOR PRESENTATION 2Q21 and 1H21 Financial Results 17 August 2021 www.bankofgeorgiagroup.com#2DISCLAIMER - 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 Lari; regional and domestic instability; loan portfolio quality risk; regulatory risk; liquidity risk; capital risk; financial crime risk; cyber-security, information security and data privacy risk; operational 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 presentation 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 2020 and in 2Q21 and 1H21 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. 2#3CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q21 AND 1H21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 3#4600 500 400 300 200 100 о Feb-20 COVID-19 STATISTICS IN GEORGIA COVID-19 STATISTICS IN GEORGIA, 000' PERSONS Source: NCDC at 14:30, 16 August 2021 COVID-19 STATISTICS IN GEORGIA Georgia now has sufficient vaccine supplies (Pfizer, Sinovac, Sinopharm and AstraZeneca). The government plans to vaccinate around 60% of adult population by the end of 2021. 484,254 Confirmed cases 425,651 Recovered CUMULATIVE VACCINATIONS, 000' 900 800 Source: www.stopcov.ge, 700 NCDC at 14:30, 16 August 2021 600 52,141 500 400 300 Active cases 200 100 806,681 ○ Total administered vaccine doses 20.0% of Georgia's adult population has received at least one dose of a COVID-19 vaccine, while 8.4% of adult population is fully vaccinated. Vaccination process significantly accelerated since the end of July 2021, and if that pace continues, we expect around 46% of adult population to be vaccinated with at least one dose by the end of September 2021, on track with the government's target. Source: NCDC, ourworldindata 16 August 2021 900 800 700 600 500 400 300 200 100 O 29-Mar-21 4-Apr-21 10-Apr-21 16-Apr-21 22-Apr-21 28-Apr-21 4-May-21 10-May-21 16-May-21 22-May-21 28-May-21 3-Jun-21 9-Jun-21 15-Jun-21 21-Jun-21 27-Jun-21 3-Jul-21 9-Jul-21 15-Jul-21 21-Jul-21 27-Jul-21 2-Aug-21 8-Aug-21 14-Aug-21 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Total cases (LHS) Total recoveries (LHS) Daily new cases (RHS) Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 5 4 3 2 2,500 2,000 1,500 1,000 500 о о COVID-19 ACTIVE CASES PER 100,000 PERSONS Source: Johns Hopkins, Worldometers at 14:30, 16 August 2021 Et 19 23 37 64 213 234 246 348 377 399 409 472 493 544 603 Uzbekistan Belarus Ukraine Germany Italy Azerbaijan Armenia Greece Russia Estonia Poland Lithuania Turkey Israel 703 Kazakhstan Iran Georgia UK 1,921 1,404 4#5STRONG ECONOMIC GROWTH IN 2Q21 REAL GDP GROWTH EXCEEDING 2019 LEVEL Real GDP growth in 1H21: 12.7% y-o-y 5.7% compared to 1H19 Source: Geostat 25.8% 20.8% 18.7% 8.8% 9.5% 70% 60% 44.8% 50% 40% 30% 20% 4.0% 10% -3.0% 0% -7.0% 1.2% -10% -5.1% -11.5% -20% -30% Jan Feb Mar Apr Real GDP growth, 2021 vs. 2020 COVID-19 pandemic-related mobility restrictions caused GDP to contract by 6.2% in 2020 and by 4.5% in 1Q21 With restrictions gradually eased, recovery gained impressive momentum in the second quarter of 2021, with real GDP up 29.8% y-o-y and up 12.6% compared to the second quarter of 2019 (pre-pandemic) Overall, real GDP growth during the first half of 2021 was 12.7% y-o-y, exceeding the first half of 2019 pre-pandemic level by 5.7% Robust growth in remittances and exports, and faster than expected rebound in tourism supported the recovery along with the fiscal stimulus May Jun Real GDP growth, 2021 vs. 2019 In the first half of 2021: Exports were up 25.2% y-o-y and up 5.3% compared to the first half of 2019 Remittances were up 40.8% y-o-y and up 34.4% compared to the first half of 2019 Tourism revenues accounted for c.21% of 2019 level, with tourism arrivals accelerating since April 2021 5#6TRACKING GEORGIA'S ECONOMIC RECOVERY EXPORTS, REMITTANCES, IMPORTS AND TOURISM REVENUES SHOWING STRONG REBOUND Remittances 145.4% 150% 120% 90% Exports 70.0% 60% 49.5% 42.4% 44.8% 42.4% 40.6% 29.4%28.6% 30.5% 30% 36.0% 41.5% 21.6% 28.8% 30.1% 20.7% 19.2% 17.5% 19.3% 1.9% 12.5% -5.1% 0% 0.9% -0.1% -0.4% -16.2% -30% 6 Source: Geostat, NBG, GNTA, G&T Imports Trade deficit Tourism revenues in 2021 as % of 2019 level 150% 120% 90% 58.0% 45.2% 38.5% 47.6% 45.5% 45.1% 51.3% 60% 36.0% 27.3% 15.5% 17.7% 15.3% 18.7% 30% 6.6% 2.7% 6.3% 8.1% 12.1% 9.4% -3.4% 14.2% -10.6%-6.3% 0% 5.5% -8.0% 1.5% -2.9% -3.2% -2.5% -5.2% -12.9% -4.6% -12.1%-14.0% -19.2% -30% -60% -60% Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul % change, 2021 vs. 2020 % change, 2021 vs. 2019#7GEORGIA'S ECONOMIC OUTLOOK IN 2021 GEORGIA'S ECONOMIC GROWTH FORECAST 12% 10% 7.4% 8% 6.4% 6.2% 6% 4% 2.4% 2% ovo ovo 0% -2% -4% -3.7% -6% Source: Geostat, Galt & Taggart 4.8% 4.8% 5.0% 4.4% 3.6% 3.0% 2.9% 8.6% -6.2% 7 5.7% Our brokerage and investment arm, Galt & Taggart's revised 2021 growth forecasts upwards to 8.6% from the previous forecast of 7.0%. Government and International Monetary Fund revised Georgia's real GDP growth projection upwards to 7.7%, expecting GDP growth in 2021 to exceed pre-pandemic level. The National Bank of Georgia forecasts real GDP growth at 8.5% in 2021. Downside risks remain - delays in the vaccination progress, as well as the potential appearance of new COVID-19 variants may require tightening of restrictions and may increase Lari volatility. If the risks do not materialise, there is a likelihood of higher real GDP growth of 11.2% in 2021. -8% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F 2022F#8CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q21 AND 1H21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 8#9BANK OF GEORGIA GROUP AT A GLANCE BANK OF GEORGIA GROUP PLC RETAIL BANKING Mass Retail SOLO MSME CORPORATE AND INVESTMENT BANKING Corporate Banking WM and Investment Banking Leader in payments and financial mobile app 51% of total POS payments transactions are executed in BOG POS terminals c.8.5mln transactions executed in mobile app per month, almost doubled y-o-y 96% of daily transactions of individuals executed through digital channels Strongest retail banking franchise 40% market share in deposits of individuals 38% market share in loans to individuals Most trusted bank and top of mind bank in Georgia* NPS** of 43% in June 2021 Sustainable high profitability ☐ ROAE of 20%+ over the last four years (pre-COVID-19) ROAE of 20%+ for the fifth consecutive quarter since pandemic *Based on Spring 2021 external research by IPM Georgia ** Based on summer 2021 external research by IPM Georgia#10STRATEGIC FOCUS BANK OF THE FUTURE DATA-DRIVEN ORGANISATION CUSTOMER SATISFACTION Mobile app Payments Loyalty STRONG FRANCHISE PROFITABILITY EMPLOYEE EMPOWERMENT 10 10#11GEORGIA'S MOST POPULAR FINANCIAL MOBILE APP MBANK/IBANK STATISTICS* ** Number of active users* THOUSANDS +19.3% +1.0% 795 787 760 714 665 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 40.2% Daily active users/monthly active users Number of transactions MILLIONS +84.0% 9:41 Operations +18.8% Categories 26.3 22.2 20.6 18.3 14.3 Payments Payments 25.3 19.5 21.2 17.2 13.3 1.0 1.1 1.1 T 0.9 T T 1.0 2Q20 3Q20 4Q20 1Q21 2Q21 iBank mBank NEXT STEP: BUILDING THE SUPER APP *Information on this slide depicts the usage of internet and mobile banking platforms by individual customers **Active user - at least one login in the past three months Transfer to Own Accounts 9:41 Search Total Available Amount 4,652.230 Visa Gold 2,744.00 0000 PLUS Point 8,744 Deposits and Liabilities Lublines 9.744.000 VISA M 26,744 Deposts 7,060.000 11 c.8.5min Transactions per month 86.3% Customer Satisfaction Score ANDROID APP ON Google play 4.7 Download on the App Store 4.7#12STRONG TRANSACTIONS OFFLOADING TO DIGITAL CHANNELS* 12 NUMBER OF TRANSACTIONS MILLIONS Share of digital transactions 93.2% 93.5% 93.5% 94.2% 96.0% 95.1% 96.1% 95.9% 96.2% +61.5% 57.7 52.5 51.9 51.9 48.3 48.8 2.2 48.3 46.8 3.4 2.5 2.0 9.1 3.3 3.2 8.7 2.7 8.5 8.2 2.0 7.8 8.1 35.8 7.3 7.4 1.4 20.1 35% 6.1 21.0 40% 27.5 57% 26.6 55% 27.4 52% 22.5 43% 16.8 35% 22.9 49% 13.8 39% 9.5 20% 12.8 24% 10.8 22% 18.3 35% 20.6 40% 22.2 46% 26.3 46% 13.6 29% 14.3 40% 2Q19 3Q19 4Q19 iBank/mBank 1Q20 2Q20 Express Pay terminals 3Q 20 ATMs 4Q20 ■Branches Other 1Q21 Strong presence in Georgia via our self-service Express Pay terminals Continuous migration of customers activity to mBank/iBank from Express Pay terminals - 26% of customers activity migrated to mBank/iBank during the past two years 2Q21 3,141 Express pay terminals +0.7% y-o-y +0.5% q-0-9 206 Branches -8.0% y-o-y Flat q-o-q 795k mBank/iBank active users** +19.3% y-o-y +1.0% q-o-q 972 ATMs +3.4% y-o-y More than 96% of daily transactions executed through digital channels * Information on this slide depicts the usage of channels by individual customers ** Active user - at least one login in the past three months +0.9% q-o-q#13SIGNIFICANT UPSIDE IN PRODUCT OFFLOADING TO DIGITAL CHANNELS HAVING ACHIEVED HIGH TRANSACTIONS OFFLOADING RATE TO DIGITAL CHANNELS, OUR AIM NOW IS TO INCREASE PRODUCT OFFLOADING RATE PRODUCT OFFLOADING* THOUSANDS 13 60 50 40 8R200 COVID-19 pandemic impact Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 I Numbers of activated products 79.1 70% 60% 50% 40% 30% 20% 10% 0% May-21 Jun-21 Total offloading, % * Mainly comprises cards, deposits and loans offloading through digital channels Continuously developing our digital products and refining end-to-end digital journeys. Our digital channels' functionalities are updated every two to three weeks Digital consumer lending process improvements launched at the end of June 2021 ■ Further improvements planned in deposit activation process in digital channels in 3Q21 21% JUN-21 Total products offloading rate c.36% Planned offloading rate over the next 12 months#14REMITTANCES AND POTENTIAL IN GEORGIAN EMIGRANTS MARKET POTENTIAL c.1.3 mln NUMBER OF RECEIVED REMITTANCES AT BOG THROUGH DIGITAL CHANNELS THOUSANDS 250 42% 44% 50% 38% Georgians living abroad in need of 35% 200 New functionality 40% 32% added in mBank daily banking services in Georgia and iBank 150 US$ 1.9 bin Transferred in 2020 +8.8% y-o-y c.350 k Customers with high potential for loans and deposits* We expect to gain 35%-40% of the potential market share in the medium-term 100 11% 50 3% 4Q19 1Q20 30% 20% 10% 0% 2Q20 3Q20 4Q20 Digital offloading rate 1Q21 2Q21 Received remittances BOG MARKET SHARE IN TOTAL REMITTANCE INFLOWS** 35% 35% 32% 32% COVID-19 pandemic impact 32% 31% 27% * More than three transfers in the last 12 months 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 **Based on the National Bank of Georgia and Bank of Georgia data 14#15PAYMENTS AS A DAILY TOUCHPOINT WITH CUSTOMERS 15 NUMBER OF PAYMENTS TRANSACTIONS AT BOG TERMINALS MILLIONS +45.8% VOLUME OF PAYMENTS TRANSACTIONS AT BOG TERMINALS GEL MILLIONS +71.9% +45.0% +89.6% 33k+ 64 +32.2% 1,715 +43.2% Multifunctional POS terminals +42.0% y-o-y 36 44 1,183 27 21 1,010 705 533 1H20 1H21 2Q20 1Q21 2Q21 1H20 1H21 2Q20 1Q21 2Q21 51% Share by number of POS payments transactions in BOG's POS terminals | 1H21* +2ppts YoY *Based on the National Bank of Georgia and Bank of Georgia data 49% Share by volume of POS payments transactions in BOG's POS terminals | 1H21* +1ppts YoY 2.3mln+ Mass Retail and SOLO customers +0.8% y-o-y#16LOYALTY PROGRAMME - ONE OF THE STRENGTHS OF BANK OF GEORGIA GEL 874k +28.3% y-o-y 129k+ +9.1% y-o-y worth of loyalty points exchange operations per month 1H21 loyalty points exchange operations per month 1H21 ADVANCED ANALYTICS for partner merchants PERSONALISED CAMPAIGNS * Members with at least one active product 1.4min+ +5.0% y-o-y active Loyalty programme members* Jun-21 TRANSACTIONS AND SPEND PER CUSTOMER PER MONTH INCREASING 686 619 605 573 489 489 22 20 20 19 17 17 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Spend volume per customer (GEL) Number of transactions per customer 16#17FULL DIGITAL EXPERIENCE TO OUR BUSINESS CUSTOMERS BUSINESS MBANK/IBANK STATISTICS* Number of active users* ** THOUSANDS Number of transactions +28.9% +8.1% MILLIONS +39.2% +25.8% 2.6 41 2.5 38 2.2 2.1 36 1.9 34 32 1111 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 c.825k Transactions per month Transactions offloading rate 96.7% 96.1% 96.5% 96.7% 96.7% 1,124,147,437,000 New financial mobile application launched 63.7% 236994.000 0000 In 1921 KYALATE OB 05.03592 2Q20 3Q20 4Q20 1Q21 2Q21 01.08 *Information on this slide depicts the usage of internet and mobile banking platforms by legal entities **Active user - at least one login in the past three months Customer Satisfaction Score 17#18CUSTOMER SATISFACTION Engaging with customers proactively and responding in real time FOCUS ON INCREASING CUSTOMER SATISFACTION BY: 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 MEDALLIA salesforce NPS* 42% 39% 38% 37% 34% 33% 33% 27% COVID-19 pandemic impact 18 49% 46% 43% Mar-17 Oct-17 May-18 Sep-18 Jun-19 Nov-19 Feb-20 Aug-20 Dec-20 Mar-21 Jun-21** * Based on external research conducted by IPM Georgia ** NPS of all major banks has fallen due to the recent raise in the NBG's Monetary Policy Rate#19EMPLOYEE EMPOWERMENT Re-design of employee experiences New talent development strategy Employees feel more engaged and enabled 74% High-Performing Organisations Benchmark 68% 2019 71% 2020 Based on KORN FERRY survey 68% Banking Industry Benchmark High-trust environment Values-based organisation ENPS 74% High-Performing 58% 60% Organisations Benchmark 46% 64% 2019 69% 2020 68% Banking Industry Benchmark Nov-19 Nov-20 Apr-21 19#20INCREASING FOCUS ON ESG GOING FORWARD WE FOCUS ON THE FOLLOWING FIVE SDGs: NO POVERTY 4 QUALITY EDUCATION 5 GENDER EQUALITY 8 DECENT WORK AND ECONOMIC GROWTH 13 CLIMATE ACTION ர்க்க்கர் KEY DEVELOPMENTS IN 2021 Joined the UN Global Compact UN GLOBA COMPACT We believe in success that is shared. We are committed to rigorously managing risks and creating opportunities that fulfil the needs of our customers, employees, and communities, and help people achieve more of their potential Started the materiality assessment process to get a multi-stakeholder perspective on salient ESG issues and refine our sustainability strategy Began the journey to better understand climate-related risks and opportunities relevant to our business, develop climate action strategy, and implement the TCFD recommendations 20#21HIGH ESG SCORES FROM INDEPENDENT RATING AGENCIES * ISS▷ ENVIRONMENT MSCI ** SOCIAL 2 GOVERNANCE Bank of Georgia falls into the highest scoring range relative to global peers CCC B BB BBB A AA AAA LAGGARD AVERAGE FTSE4GOOD Index INCLUDED IN THE GLOBAL RESPONSIBLE INVESTMENT INDEX FTSE4GOOD SINCE 2017 LEADER * 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 August 2021 ** MSCI score is as of July 2021 21 21#22DATA-DRIVEN ORGANISATION 112 62% Data models running online, covering different business processes Automation rate for retail lending process in 1H21 35% Contribution in sales process, powered by data-driven models in 1H21 22 22 KEY DATA-RELATED INITIATIVES IMPLEMENTED DURING 1H21 Implementation of non-financial recommender engine Data and Al trainings for middle management Predicting and improving NPS with data-driven models Improvement of natural language understanding capabilities DATA IN BANKING Use of data analytics to cover core banking processes with impact on decision making, automation, sales, customer satisfaction, efficiency DATA BEYOND BANKING Use of data analytics for data monetisation and to create additional value for customers, the Bank, and the ecosystem#23CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q21 AND 1H21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 23 23#24TRACK RECORD OF DELIVERING STRONG RESULTS 24 24 Revised medium-term loan book growth target from c.15% to c.10% Nominal Constant currency basis 26.4% 26.1% 25.2% 25.6% 27.0% 21.4% 13.0% Loan book growth YoY 17.4% 18.9% 17.4% c.10% 22.0% 19.0% 15.9% 10.2% 13.7% 2017 2018 2019 2020 1H21 ROAE 20%+ 2017 2018* 2019** 2020 1H21 ROBUST CAPITAL MANAGEMENT TRACK RECORD Maintain regular dividend payouts: aiming 25-40% dividend payout ratio GEL 648mln+ cash dividend paid during 2013-2019, within the targeted payout range Capital repatriation policy: In the light of the evolving macroeconomic situation and expected levels of medium- term growth, the Board will formally review the Group's capital repatriation policy in the second half of 2021. Adjusted for GEL 30.3mln demerger related costs, GEL 8.0mln demerger related corporate income tax gain, GEL 30.3mln one-off impact of re-measurement of deferred tax balances and GEL 3.9mln (net of income tax) termination costs of the former CEO Adjusted for GEL 14.2mln (net of income tax) termination costs of the former CEO and executive management Dividend yield is calculated based on the closing price of shares immediately prior to ex-dividend date REGULAR DIVIDENDS GEL MILLIONS PAYOUT 30% 36% 33% RATIO: 34% 32% 30% 30% 4.0% 4.2% 3.1% 3.1% 3.2% 2.4% 2.7% Interim dividend 122 124 98 102 72 80 51 70 2013 2014 2015 2016 2017 2018 Total dividend paid during the year 2019 2020 2021 Dividend yield***#252Q21 KEY RESULTS HIGHLIGHTS Outstanding profitability Strong interest and F&C income generation Resilient loan portfolio quality and high cost efficiencies ROAE Operating income 2Q21 29.4% 2Q21 GEL 335min +39.8% y-o-y +10.3% q-o-q Cost of credit risk 2Q21 -0.6% Strong portfolio growth Loan growth 30 Jun 2021 GEL 14.8bln +17.4% y-o-y * +1.3% q-o-q Strong capital and liquidity positions CET 1 capital 30 Jun 2021 12.5% Minimum requirement 11.1% Net profit 2Q21 Net F&C income Cost to income 2Q21 2Q21 GEL 202min +76.3% y-o-y GEL 57mln 36.4% +45.5% q-o-q +73.9% y-o-y +17.6% q-o-q * Growth on a constant currency basis was 13.7% y-o-y and 5.5% q-o-q ** Growth on a constant currency basis was 17.4% y-o-y and 4.1% q-o-q 25 Deposits growth 30 Jun 2021 GEL 13.9bln Liquidity coverage 30 Jun 2021 124.5% Minimum requirement +20.4% y-o-y -0.4% q-o-q ** ** 100%#26STRONG PROFITABILITY NOTWITHSTANDING THE PANDEMIC TRACK RECORD OF STRONG PROFITABILITY 26.0% 21.8% 21.3% 21.5% 20% OUTSTANDING QUARTERLY PERFORMANCE Bank of Georgia's performance has been very strong in 2Q21: Strong balance sheet growth with better than expected levels of lending in consumer, micro and SME portfolios Robust operating income performance. Net interest income up 7.5% q-o-q, coupled with strong net fee and commission income generation, up 17.6% q-o-q, on the back of a strong performance in the payments and settlement operations Net interest margin of 4.7%, up 20 basis points q-o-q in 2Q21 Costs well-managed, with 36.4% cost to income ratio, while continuing to invest in IT-related resources, digitalisation and marketing Lending portfolio performing extremely well. Annualised cost of credit risk ratio was a net gain of 0.6% in 2Q21. The non-performing loans ratio remained stable at 3.5%, down 10 basis points q-o-q Robust capital adequacy ratios, comfortably above the increased minimum regulatory requirements. We do not utilise previously released capital buffers by the NBG Superior levels of profitability. Despite a still challenging operating environment, delivering ROAE of 29.4% in 2Q21, fifth consecutive quarter of delivering profitability above 20% during the pandemic 26 26 29.4% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 -18.6%#27STRONG UNDERLYING PERFORMANCE OPERATING INCOME GEL MILLIONS +24.2% 639 +39.8% +10.3% 335 304 NET NON-INTEREST INCOME GEL MILLIONS +39.3% 198 +64.8% +17.0% 51 514 198 31% 240 142 28% 65 27% 107 107 142 91 32% 91 16 27 30% 41 23 65 53 22 22 9 19 441 372 72% 69% 228 23 212 68% 175 70% 106 73% 73 49 40 57 33 1H20 1H21 2Q20 1Q21 2Q21 1H20 1H21 2Q20 1Q21 Net non-interest income Net interest income Net other income Net foreign currency gains Net fee and commission income Strong net interest income and net fee and commission income generation driving robust top-line performance 2Q21 27#28NET INTEREST MARGIN NET INTEREST MARGIN 4.6% 4.6% | I 4.2% 4.7% 4.5% LOAN YIELD, COST OF FUNDS, COST OF DEPOSITS 10.6% 10.4% 10.2% 10.4% 10.4% 4.8% 4.8% 4.5% 4.5% 4.5% 3.3% 3.6% 3.5% 3.8% 3.5% 1H20 1H21 2Q20 1Q21 2Q21 1H20 1H21 Loan yield Cost of funds 2Q20 1Q21 2Q21 Cost of client deposits and notes NIM UP IN 2Q21 DUE TO Rebound in economic activity ■ Decline in cost of funds on the back of successful deployment of excess liquidity kept at high level for risk mitigation purposes NIM OUTLOOK Broadly stable margin going forward 28 28#29FOCUS ON EFFICIENCY AND STRINGENT COST CONTROL COST TO INCOME RATIO 41.1% 35.9% 1H20 1H21 43.9% 36.4% 35.4% 2Q20 1Q21 2Q21 Continued investment in IT-related resources, digitalisation and marketing, in line with strategic priorities, and, at the same time, maintaining focus on efficiency and cost control OPERATING EXPENSES GEL MILLIONS +8.5% +15.8% 229 211 2 +13.5% 2 45 43 122 105 107 O 54 54 1 1 22 50 21 23 30 23 24 129 117 69 61 60 Cost optimisation measures initiated in 2Q20, the impact of which had been reflected in subsequent quarters 1H20 1H21 2Q20 1Q21 2Q21 c.35% Medium-term guidance Other operating expenses Administrative expenses Depreciation, amortisation and impairment Salaries and other employee benefits 29#30RESILIENT LOAN PORTFOLIO QUALITY COST OF CREDIT RISK RATIO ECL provision created for the full economic cycle in 1Q20 proved to be sufficient Entering the COVID-19 environment with a de-risked banking sector 2.2% 1.6% 0.9% 1.8% 3.5% LOAN PORTFOLIO QUALITY NPL coverage 92.7% 90.5% 80.9% 76.3% 73.1% NPL coverage adjusted for collateral value 130.6% 129.9% 3.8% 3.3% 139.6% 128.8% 122.2% 3.7% 3.5% 2.1% 546 525 301 318 253 0.1% 2017 2018 2019 2020 1H20 1H21 Dec-17 Dec-18 Dec-19 NPLs, GEL millions Dec-20 Jun-21 NPLs to gross loans 30#31STRONG LOAN AND DEPOSIT PORTFOLIO GROWTH LOAN PORTFOLIO GEL MILLIONS +7.2% +4.2% +17.4% DEPOSIT PORTFOLIO GEL MILLIONS +1.9% -0.5% +20.4% +13.7% +17.4% 14,192 14,789 14,020 13,944 12,599 11,931 11,583 10,077 9,398 8,389 59% 8,351 56% 6,985 59% 7,598 60% 8,134 8,500 61% 8,190 59% 7,285 63% 5,800 62% 6,986 69% 5,488 67% 4,946 41% 5,80441% 6,438 44% 5,521 39% 5,755 41% 5,00140% 4,298 3,598 38% 2,646 33% 3,090 31% 37% Dec-18 Dec-19 Dec-20 Jun-20 Jun-21 Dec-18 Dec-19 Dec-20 Jun-20 Jun-21 Net loans, GEL ■Net loans, FC Client deposits and notes, FC Client deposits and notes, GEL Growth on a constant currency basis 31#32WELL-DIVERSIFIED LOAN BOOK LOAN PORTFOLIO BREAKDOWN | JUN-21 Gross Loans by segment Bank of Georgia standalone Total: GEL 14.4bln CIB loans, GEL 4,949 mln, 34.4% Retail loans, GEL 9,458 mln, 65.6% Retail Banking Gross Loans by product Total: GEL 9.5bln Corporate and Investment Banking Gross Loans by sectors Total: GEL 4.9bln 32 Credit cards_ and overdrafts 2.0% Other 2.7% Mining & quarrying Health & social work General 3.6% consumer Financial 2.3% Other Manufacturing 15.5% 19.9% loans 20.5% Mortgage loans 39.9% intermediation 3.2% Micro and SME loans Electricity, gas & water supply 7.9% Construction 1.7% Trade 8.9% Real estate 17.2% 34.9% Transport & Communication Hospitality 14.4% Service 3.8% 1.6%#33LOAN PORTFOLIO BREAKDOWN RETAIL BANKING | JUN-21 JSC Bank of Georgia standalone GEL MILLIONS 2.5% 9,458 235 2.9% 5,556 159 CORPORATE AND INVESTMENT BANKING | JUN-21 JSC Bank of Georgia standalone GEL MILLIONS 2.5% 4,949 123 1.2% 13 1,010 110 2.8% 3,939 2.0% 3,901 76 Loan portfolio Allowance for ECL ECL rate Loan portfolio FC GEL Allowance for ECL ■FC GEL ECL rate RB Loan Amounts in GEL millions GEL loans* FC loans not exposed to FC risk FC loans exposed to FC risk Total portfolio 5,556 630 3,271 9,458 % of total RB loan portfolio Consumer CB & WM Loan % of total CIB Mortgages SME & Micro loans* portfolio loan portfolio 58.7% 6.7% 1,838 476 2,066 1,652 1,010 20.4% 93 61 1,985 40.1% 34.6% 1,457 226 1,589 1,954 39.5% 100.0% 3,771 2,385 3,302 4,949 100.0% * Includes credit cards 33#34STRONG COMPETITIVE POSITION MARKET SHARE-GROSS LOANS MARKET SHARE-CUSTOMER DEPOSITS 38.8% 39.5% 39.0% 38.1% 41.2% 39.0% 38.9% 38.9% 33.5% 34.9% 34.9% 35.6% 36.3% 37.2% 37.8% 33.9% Dec-18 Dec-19 BOG Dec-20 Jun-21 Dec-18 Dec-19 Dec-20 Jun-21 Peer bank BOG Peer bank MARKET SHARE-LOANS TO INDIVIDUALS MARKET SHARE-DEPOSITS OF INDIVIDUALS 41.2% 40.0% 40.0% 39.4% 40.3% 40.3% 40.3% 38.4% 37.5% 38.8% 37.7% 38.3% 36.9% 37.9% 39.5% 39.6% Dec-18 Dec-19 Dec-20 Jun-21 BOG Peer bank Dec-18 Dec-19 Dec-20 Jun-21 BOG Peer bank Top two banks hold more than 70% of market share Bank of Georgia focuses on profitability, while maintaining solid market share Market share in deposits of and loans to individuals underlines the strength of Bank of Georgia's franchise Market data based on standalone accounts as published by the National Bank of Georgia 34#35STRONG LIQUIDITY AND FUNDING POSITIONS LIQUIDITY COVERAGE AND NET STABLE FUNDING RATIOS JSC Bank of Georgia standalone (Basel III liquidity) NET LOANS TO CUSTOMER FUNDS AND DFIs 136.7% 138.6% 137.5% 136.8% 118.4% 133.6% 132.5% 115.5% 124.5% 120.1% 106.1% 103.2% 101.2% 99.6% 93.2% 89.4% Dec-18 Dec-19 Dec-20 Jun-21 Dec-18 Dec-19 Dec-20 ■Liquidiy coverage ratio ■Net stable funding ratio Net loans to customer funds Net loans to customer funds and DFIs Excess liquidity maintained for risk mitigation purposes, on the back of the COVID-19 crisis, partially successfully deployed during the second quarter of 2021 Strong support from International Financial Institutions Jun-21 35#36WELL-ESTABLISHED FUNDING STRUCTURE | JUN-21 INTEREST BEARING LIABILITIES Interest Bearing Liabilities GEL 18.7bln Debt Borrowings securities 12.6% Current issued 8.1% accounts Other amounts owed to Cl 4.7% Client deposits & & demand deposits, 43.6% notes 74.6% Time deposits, 56.4% BORROWED FUNDS MATURITY BREAKDOWN* US$ MILLIONS 481 1.7% 1.3% 7.0% 2.3% 1.9% 0.3% 0.2% 366 0.9% 0.1% 117 90 115 135 76 64 59 0.0% 159 14 7 24 T 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 I Senior Loans Subordinated Loans Eurobonds % of Total assets * converted at GEL/US$ exchange rate of 3.1603 at 30 June 2021 WELL DIVERSIFIED INTERNATIONAL BORROWINGS Other debt Others European Investment Bank European Bank GEL femtion and Devement IFC EFSE Black EUROPEAN FUND FOR SOUTHEAST EUROPE Sea Trade & Development Bank FMO Finance for Development securities, borrowings, GEL 245min, 6.3% 423mln, DFIs, 10.9% GEL Eurobonds, GEL 1,271mln, 32.9% 1,927mln, 49.9% STRONG SUPPORT FROM IFIS ■ C.GEL 225 million undrawn long-term facilities attracted from DFIs at 30 June 2021 with up to five years of maturity Strong long-term funding pipeline to secure resources needed for the next 12 months Liquidity management: US$27.8 million Eurobonds due 2023 repurchased since July 2020 36#37STRONG CAPITAL ADEQUACY POSITION 37 NBG'S COVID-19 RESPONSE AND CURRENT UPDATE Release of capital buffers: In April 2020, as part of its updated supervisory plan as a response to the COVID-19 pandemic, the NBG released Pillar 2 and conservation buffers, which reduced the minimum regulatory capital requirements at the time. Capital distribution: During the period that banks partially or fully utilised the reduced buffers, banks have not been able to make any form of capital distribution. General COVID-19-related loan loss provision: The Bank has recorded c.GEL 400 million general provision (c.3.3% of the Bank's lending portfolio) under the Bank's local regulatory accounting basis in March 2020, reflecting the NBG's expectations of estimated credit losses on the Bank's lending book for the full economic cycle. Subsequently, the NBG has announced a released capital buffers rebuild plan and has updated the timeline for the phase-in of additional Basel III capital requirements for the banking sector. Rebuild of capital buffers: As a result of robust operating performance and strong internal capital generation, and thus strong capital position, to ensure flexibility on capital distribution to shareholders, the Bank has confirmed to the NBG that since May 2021, it is no longer utilising, or expects to utilise, any of the Pillar 2 or conservation buffers that were waived last year. Consequently, there is no longer any regulatory restriction for Bank of Georgia on making any capital distributions. CAPITAL ADEQUACY RATIOS 18.6% 19.1% 18.1% 17.4% 17.3% 17.6% 15.3% 14.4% 13.6% 13.3% 12.0% 12.0% 12.4% 12.5% 11.5% 10.6% 11.2% 10.4% 9.9% 9.9% 8.3% Dec-19 Mar-20 Jun-20 ■CET1 Capital Adequacy Ratio Total Capital Adequacy Ratio Sep-20 Dec-20 Mar-21 Jun-21 Tier I Capital Adequacy Ratio MINIMUM REGULATORY REQUIREMENTS 17.7% 17.1% 13.3% 13.3% 13.8% 13.3% 13.8% 13.4% 12.2% 11.1% 10.1% 8.7% 8.7% 8.7% 9.2% 9.8% 7.4% 7.8% 6.9% 6.9% 6.9% Dec-19 Mar-20 Jun-20 Sep-20 ■CET1 Capital Adequacy Ratio Total Capital Adequacy Ratio Dec-20 Mar-21 Jun-21 Tier I Capital Adequacy Ratio#38CAPITAL RATIOS EVOLUTION AND UPDATE ON MINIMUM CAPITAL REQUIREMENTS CAPITAL RATIOS EVOLUTION DURING 1H21 Capital ratios DEC-20 Tier 2 1H21 profit Business growth appreciation GEL facility impact Capital ratios JUN-21 Potential impact of 10% GEL devaluation CET1 capital adequacy ratio 10.4% 2.6% -0.8% 0.3% 12.5% -0.8% Tier I capital adequacy ratio 12.4% 2.6% -0.9% 0.3% 14.4% -0.7% Total capital adequacy ratio 17.6% 2.6% -1.1% 0.2% -0.2% 19.1% -0.6% EXPECTED MINIMUM CAPITAL REQUIREMENTS FOR 2021-2023 Bank of Georgia's ongoing minimum capital adequacy ratios reflecting the full phase-in of Basel III capital requirements, which remain subject to ongoing annual regulatory reviews, are currently expected to be as follows: DEC-21 DEC-22 DEC-23 CET1 capital requirement 11.6% 11.9% 12.2% Tier I capital requirement 13.8% 14.3% 14.7% Total capital requirement 17.9% 17.9% 17.9% 38#39STRONG CAPITAL ADEQUACY POSITION BOG EQUITY VS. CET1 REG. CAPITAL | JUN-21 GEL MILLIONS % of RWAs 12.5% 1.8% 0.7% 1.6% RISK WEIGHTED ASSETS GEL MILLIONS 268 2,761 16,040 16,516 304 116 15,162 14,099 2,074 2.5% +17.7% +0.5% 16,599 NBG CET1 capital Loan IP Other provisioning provisioning deductions* methodology methodology difference BOG equity (IFRS) Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 difference * Revaluation reserve, investments in non-financial subsidiaries and intangible assets Existing additional capital buffers (within c.2.5% of risk-weighted assets) reflecting differences in provisioning methodology between the NBG and IFRS 9 The NBG plans to transition to IFRS-based financial reporting during 2021-2022 39#40CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q21 AND 1H21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 40#41GEORGIA AT A GLANCE GENERAL FACTS ■ ■ Area: 69,700 sq. km Population (2019): 3.7 million Life expectancy: 74 years Official language: Georgian Literacy: 100% Capital: Tbilisi Currency (code): Lari (GEL) ECONOMY Nominal GDP (Geostat) 2020: GEL 49.2bln (US$ 15.9bln) Real GDP growth rate 2016-2020: 2.9%, 4.8%, 4.8%, 5.0%, -6.2% Real GDP 2011-2019 annual average growth rate: 4.9% GDP per capita 2020 (PPP): US$ 14,918 Annual inflation (EOP) 2020: 2.4% External public debt to GDP 2020: 47.5% Hamburg Herdam Dusseldorf GERMANY Frankfurt Penza POLAND BELARUS POrel Leipzig UKRAINE CZECH REP SLOVAKIA Munich Turin LIECHTENSTEIN WICZERLAND MONA Milan Genog G TIA HERZEG MARNO nice SAN CAN AUSTRIA MOLDOVA HUNGARY SLOVENIA ROMANIA BOSNIA YUGOSLAVIA ALANIA MACEDONIA Nop ICALY Salon Polermo KAZA Elista Astro Мајкор Nafak Grozny BULGARIA Black Sea Macha GEORGIA ARMENIA AZERBAUA TURKEY AZER SOVEREIGN CREDIT RATINGS Agency Rating Outlook Affirmed MOODY'S Ba2 Stable May 2021 Fitch Ratings BB Stable August 2021 S&P Global BB Negative February 2021 41#42GEORGIA'S KEY ECONOMIC DRIVERS Top performer globally in WB Doing Business over the past 12 years Liberal economic policy Liberty Act ensures a credible fiscal and monetary framework " Fiscal deficit/GDP capped at 3%; Government debt/GDP capped at 60% Regional logistics and tourism hub Strong FDI Support from international community Business friendly environment and low tax regime (attested by favourable international rankings) 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 2.8bn customers without customs duties: Free trade agreements with EU, China, CIS, Turkey, Hong Kong and with EFTA countries. The GSP with USA, Canada and Japan Tourism halted in 2020 due to pandemic, recovery ongoing from April 2021 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 " FDI stood at US$ 617mln (3.9% of GDP) in 2020 " FDI averaged 8.4% of GDP in 2011-2020 42 Georgia and the EU signed an Association Agreement and DCFTA in June 2014 " " Visa-free travel to the EU - another major success in Georgian foreign policy. Georgians were granted free 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 Electricity transit hub potential Political environment Developed, stable and competitively priced energy sector Only 25% of hydropower capacity utilized; 150 renewable (HPPS/WPPS/SPPs) energypower plants are in various stages of construction or development Georgia imports natural gas mainly from Azerbaijan Significantly boosted transmission capacity with 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 Constitution amendments passed in 2013 to enhance governing responsibility of Parliament and reduce the powers of the Presidency Member of WTO since 2000, allowed Russia's access to WTO; In 2013 trade restored with Russia Despite resumed economic ties, exposure to Russia remains moderate. In 2020, Russia accounted for 13.2% of Georgia's exports and 11.1% of imports; just 3.7% of cumulative FDI over 2003-2020#43GROWTH ORIENTED REFORMS EASE OF DOING BUSINESS | 2020 New Zealand 1 Singapore Denmark USA Georgia UK Norway Lithuania Estonia Latvia Germany Kazakhstan Russia Turkey Azerbaijan Poland Czech Rep. Armenia Ukraine 6189 11 18 Source: Heritage Foundation ECONOMIC FREEDOM INDEX | 2021 7 18 12 16 20 Top 7 in Europe region out of 46 countries Source: WB-IFC Doing Business Report UK Estonia Georgia #1 in Europe and Central Asia Region Lithuania USA Czech Rep. 19 22 25 28 33 34 40 41 47 64 GLOBAL CORRUPTION BAROMETER | 2017 Source: Transparency International Germany Georgia Poland Czech Rep. Slovakia Latvia Montenegro Bulgaria Turkey Lithuania Armenia Bosnia & Herz. Romania Kazakhstan Russia Ukraine Azerbaijan Moldova Latvia Armenia Kazakhstan Bulgaria Azerbaijan Poland Romania Hungary France Italy Turkey Russia Ukraine 27 30 32 34 35 38 41 43 55 64 68 76 92 127 BUSINESS BRIBERY RISK | 2020 Source: Trace International 3% Norway 2 Sweden 7% 7% 9% % admitting having paid a bribe last year UK Estonia 9 13 Singapore 33 15 12% USA 15% 16% 17% Georgia is on a par with EU member states 23 France 24 18% 24% Lithuania Georgia Latvia Czech rep. 27 28 24% Poland Armenia 27% 29% 29% Bulgaria Ukraine Turkey 34% 38% 38% 42% Kazakhstan Russia Azerbaijan Uzbekistan हम म कुछ मह 69 98 114 12327 136 150 43#44Ukraine 2.1% 1.6% 0.5% ៤៩ ៦០ ៣៩ ៤ ៩ ថ -10 -15 DIVERSIFIED ECONOMY GROSS DOMESTIC PRODUCT Real GDP increased by 12.7% y-o-y in 1H21 Source: Geostat 15% 12% 7.4% 6.4% 9% 4.4% 4.8% 4.8% 5.0% 3.6% 3.0% 2.9% 6% 3% 0% -3% -6% -6.2% -9% Nominal GDP, US$ bn Real GDP growth, % COMPARATIVE REAL GDP GROWTH RATES, % (2010-2019 AVERAGE) Source: IMF, Geostat 5.9% 4.9% 4.5% 4.5% 3.6% 3.6% 3.7% 3.1% 2.4% 2.4% 2.6% Azerbaijan Russia Bulgaria Czech Rep. Latvia Romania Lithuania Poland Estonia Moldova Armenia Georgia Turkey 2019 2020 2012 GDP PER CAPITA Entertainment 3.0% Accomm. & food service 3.1% Healthcare 4.6% Education 4.6% DIVERSIFIED NOMINAL GDP STRUCTURE | 2020 Other 12.1% Trade 14.5% Financial & insurance Manufacturing 10.8% 4.9% Transport & storage 5.9% Public admin. 7.4% Agriculture 8.4% Construction 8.9% Source: IMF, Geostat 15,613 10,610 11,583 12,100 12,855 13,596 14,584 14,918 9,799 8,322 7,541 3,233 4,023 4,422 4,624 4,739 4,013 4,062 4,359 4,722 4,763 4,275 2013 2014 2015 Nominal GDP per capita, US$ ■GDP per capita, PPP Real estate 11.7% Source: Geostat 44#45Kazakhstan Estonia Latvia 3.2% 3.4% 3.6% 3.6% Germany Lithuania Russia Poland Italy Total factor productivity 1.8% REAL GDP GROWTH PROJECTION, 2021 Turkey Spain UK USA Labor force 0.1% CAPITAL AND PRODUCTIVITY HAVE BEEN THE MAIN ENGINES OF GROWTH SINCE 2004 OVERALL CONTRIBUTION OF CAPITAL, LABOR, AND TOTAL FACTOR PRODUCTIVITY (TFP) TO GROWTH, 2010-2020 CONTRIBUTIONS OF CAPITAL, LABOR, AND TFP TO GROWTH DURING PERIODS 45 Source: Geostat, Galt &Taggart Source: Geostat, Galt &Taggart 10% 8% 6% Capital stock 2.0% 4% 2% 0% -2% 2004-2007 Source: IMF 10% 7.7% 8% Georgia 7.0% 7.0% 5.8% 6.2% Middle East & Central Asia 6% 4.4% 4.4% 4.6% 4.9% 4% 2% 0% -2% Emerging & Developing EU -4% -6% Georgia -8% 2010 2011 2012 2013 2014 2015 2016 2017 2018 REAL GDP GROWTH: GEORGIA, MIDDLE EAST AND CENTRAL ASIA, EMERGING & DEVELOPING EU 2019 2020 2021F 2020F 2023F 2024F 2025F 2026F 2008-2009 2010-2015 2016-2020 TFP Labor force Capital stock Source: IMF#46FURTHER JOB CREATION IS ACHIEVABLE UNEMPLOYMENT RATE UP 0.9PPTS Y-O-Y TO HIRED WORKERS ON THE RISE Source: Geostat 18.5% IN 2020 Source: Geostat 1,400 27.2% 27.2% 26.7% 26.4% Note: Labor force statistics presented according to the updated ILO's new standards 1,200 30% 23.0% 21.9% 21.7% 21.6% 1,000 25% 1,300 19.2% 17.6% 18.5% 800 20% 1,200 15% 600 1,255 1,308 1,295 1,287 1,296 1,296 1,100 1,168 1,183 1,212 1,198 1,242 10% 400 5% 200 1,000 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Employed, 000' persons Unemployment rate, % EMPLOYMENT BY SECTOR, 000' PERSONS Source: Geostat 845 2010 2011 2012 2013 2014 2015 2016 Self-employed, 000' persons 2017 2018 2019 2020 Hired, 000' persons 396 EMPLOYMENT: PUBLIC AND PRIVETE SECTORS, 000' PERSONS Source: Geostat 153.8 153.9 147.0 141.3 289.5 253.9 247.4 246.3 569 582 585 604 598 551 408 443 472 487 537 843.6 888.5 901.4 854.3 302 281 287 252 259 287 272 284 300 300 295 2017 2018 2019 2020 2010 ■Services (incl. construction) Agriculture Industry 2011 2012 2013 2014 2015 Public sector (hired workers) 2016 2017 2018 2019 2020 Non-public sector (hired workers) 46#4770% 60% 50% 40% 30% 20% 10% -4% PUBLIC DEBT FISCAL DEFICIT 0% -2.0% -1.9% -2% -1.7% -2.6% -6% -5.3% -8% -10% -12% -2.4% -2.8% -2.7% Source: MoF -2.1% -2.7% -3.0% -2.3% -4.4% -6.9% -9.3% Note: Deficit calculated as net lending / borrowing minus budget lending PUBLIC DEBT AS % OF GDP 2010 2011 2012 2013 2021F 2022F 2023F 2024F Source: MoF 70% 180% Public debt/GDP capped at 60% 54.6% 60% 150% 49.9% 43.4% 50% 120% 36.7% 40% 90% 30% 60% 20% 30% 10% 0% Public debt to GDP, according to 2021 budget law External public debt to GDP, % 2023F 2024F Russia Kazakh... BREAKDOWN OF THE PUBLIC DEBT Source: MoF, as of May 2021 Multilateral 58% Domestic 19% External 81% Bilateral 17% Eurobond 5% External public debt portfolio weighted average interest rate 0.99% Contractual maturity 20.6 years GROSS GOVERNMENT DEBT/GDP | 2020 Source: IMF, MoF Moldova Turkey Czech... Uzbekis... Latvia Lithuania Belarus 60.0% Romania Poland Georgia Slovakia Ukraine Armenia Hungary Slovenia Croatia Monten... Spain Canada Singap Italy 47#485% 0% BUDGET EXPENDITURES INVESTING IN INFRASTRUCTURE AND SPENDING LOW ON SOCIAL Expenditures (current + capital), GEL mn Source: MoF 20,000 50% 100% 80.0% 81.7% 76.0% 72.5% 73.4% 78.1% 80.0% 74.2% 73.1% 72.2% 75.2% 76.0% 15,000 32.3% 34.8% 33.3% 40% 80% 29.4% 29.4% 27.6% 28.4% 28.6% 29.4% 28.2% 27.7% 29.4% 30% 60% 10,000 5,000 20% 40% 24.0% 27.5% 26.6% 20.0% 18.3% 21.9% 20.0% 25.8% 26.9% 27.8% 24.8% 24.0% 10% 20% о 0% 0% Expenditures (current + capital) as % of GDP GOVERNMENT SOCIAL EXPENDITURE AS % OF GDP Source: IMF 25% 2019 2020 2021F 20% 17.4% 14.6% 15% 10.4% 10% 8.0% Armenia Georgia Russia Bulgaria Poland 19.4% EXPENDITURE BREAKDOWN: CURRENT VS. CAPITAL Source: MoF Current expenditures 10% 2019 2020E 2021F 8% 6% 2% do olo olo olo glo 4% 0% Russia GOVERNMENT CAPITAL EXPENDITURE AS % OF GDP 2.9% 3.4% 4.4% Armenia Poland Bulgaria Capital expenditures and net lending 4.9% Georgia Source: IMF 8.1% 48#49DIVERSIFIED FOREIGN TRADE IMPORTS OF GOODS AND SERVICES Source: NBG BOP statistics 49 EXPORTS OF GOODS AND SERVICES Source: NBG - BOP statistics 10 20 12 11.1 10.8 12 10.1 9.3 9.2 8.7 8.5 9.4 9.5 2.2 2.4 9.0 10 8.9 1.7 7.6 8.0 8 00 7.5 1.4 1.6 2.0 6.2 1.0 1.7 1.4 0.8 1.7 8 7.2 7.0 6.1 1.3 0.5 1.2 6.1 6.0 1.1 0.9 a 5.3 6 5.2 0.4 0.3 3.6 3.9 5.9 1.1 0.9 3.1 1.0 1.0 4.0 0.7 4 7.7 7.7 8.3 8.6 8.7 3.1 3.1 2.6 2.5 6.3 6.7 7.0 7.4 7.5 4 0.5 2.5 6.8 2.5 3.3 1.9 5.1 2 4.3 2 1.6 2.0 2.6 3.0 3.0 3.1 3.3 4.0 4.5 4.6 1.6 O 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ■Goods imports, US$ bn ■Services imports, US$ bn ■Services exports, US$ bn Goods exports, Geo-originated, US$ bn Re-exports, US$ bn IMPORTS BY COUNTRY, 1H21 EXPORTS BY COUNTRY, 1H21 OIL IMPORTS Source: Geostat Source: Geostat Source: Geostat Oil imports were up 41.3% y/y in 1H21 Other Kazakhstan 1.5% 18.0% EU 23.1% Ukraine Uzbekistan 1.8% Other 12.4% EU 17.0% 1,000 800 600 4.4% China USA 3.5% 400 15.4% Armenia 5.3% Azerbaija n 200 Armenia 0 Turkey 18.0% 5.4% -200 Ukraine 7.3% Russia -400 100% 80% 60% 40% 20% 0% -20% -40% 5.8% USA 6.2% China 8.4% Russia 10.8% 14.0% Turkey 8.7% Azerbaijan 13.0% Oil imports, US$ mn Oil imports, % change, y/y#50DIVERSIFIED SOURCES OF CAPITAL FOREIGN DIRECT INVESTMENTS Source: Geostat 2.5 FDI down 28.3% y/y to US$ 125.4mn in 1Q21 18% 4.0 TOURISM REVENUES Tourism revenues down 34.3% y/y to US$ 300mn in 1H21 Source: NBG, Geostat 24% 2.0 10.4% 11.6% 12.2% 15% 3.2 16.6% 18.3% 18.7% 20% 10.9% 13.9% 12% 12.5% 16% 1.5 2.4. 7.1% 7.5% 7.4% 7.5% 10.0% 10.1% 6.4% 9% 6.0% 8.6% 12% 1.0 1.6 6.3% 3.9% 6% 5.4% 8% 3.4% 0.5 3% 0.8 4% 0.0 0% 0.0 0% FDI, US$ bn FDI as % of GDP REMITTANCES - STEADY SOURCE OF EXTERNAL Tourism revenues, US$ bn FUNDING Source: NBG, Geostat GDP Remittances up by 40.8% y/y to US$ 1.1bn in 1H21 7% 11.9% 5.8% 2.1 12% 6% 5.4% 9.9% 1.8 8.6% 8.4% 8.1% 8.6% 8.2% 8.5% 9.0% 10% 5% 1.5 7.2% 7.6% 1.9 1.7 8% 4% 1.6 1.2 1.5 1.4 1.3 1.4 1.3 6% 3% 0.9 1.2 1.1 1.1 4% 0.6 2% 0.3 2% 1% 0.0 0% 0% Remittances, US$ bn. Remittances as % of GDP 2019 2020 Tourism revenues as % of GDP PUBLIC EXTERNAL BORROWING FOR CAPEX, % OF Source: MOF, Geostat 3.2% 3.3% 3.1% 3.0% 3.1% 2.5% 2.0% 2014 2018 2019 2.8% 50#51CURRENT ACCOUNT DEFICIT SUPPORTED BY FDI FDI AND CAPITAL GOODS IMPORT CURRENT ACCOUNT BALANCE (% OF GDP) Source: NBG, Geostat 30% Goods, net Services, net Income, net Transfers, net CA deficit net FDI 20% 10.5% 6.0% 6.5% 10% 4.6% 5.3% 8.1% 9.5% 8.2% 5.5% 5.9% 3.7% 3.6% 1.2% 0% -10% -5.6% -9.8% -20% -12.2% -11.4% -10.2% -8.0% -6.8% -5.5% -11.8% -12.5% -12.5% -11.2% -10.7% -30% -40% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q20 1Q21 14% 12% 12.2% 11.6% 10.9% 10.4% 10% 8.5% 9.4% 7.1% 7.5% 8.1% 8.0% 8.1% 8% 6.5% 8.8% 6% 7.2% 7.9% 7.8% 7.4% 7.5% 7.2% 6.4% 6.0% 4% 5.7% 2% 0% 2016 2017 FDI to GDP, % -Capital goods imports to GDP, % 2018 2019 2020 1H21 Source: Geostat BUILDING INTERNATIONAL RESERVES, US$ BN Source: NBG 3.9 3.9 3.5 3.3 2.8 2.9 2.8 2.7 3.0 2.8 2.1 2.3 2.5 1.4 1.5 3.9% 3.7% 2011 51#52。៩ ៦៩ ៖ ៩ ៩ 40 20 60 80 INFLATION TARGETING SINCE 2009 ANNUAL INFLATION MONTHLY INFLATION Source: Geostat 12% higher world commodity prices, along with strong Inflation acceleration reflects utility price increases, 11.9% 5% 12% 10% 10% 4% demand 8% 6.3% 8% 3% 6% 6% 2% 4% 4% 1% 2% 2% 0% 0% 0% -2% -2% -1% Jan-14 May-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 Dec-19 Mar-20 Jul-20 Nov-20 Mar-21 Jul-21 -2% Headline inflation Core (non-food, non-energy, non-tobacco) Jan-14 May-14 Aug-14 Dec-14 Apr-15 Apr-15 Aug-15 Aug-15 Dec-15 Apr-16 Energy Non-energy 100 WORLD COMMODITY PRICES Source: World Bank Note: Jan2014=100 Jan-14 Apr-14 Aug-14 Dec-14 Apr-15 Jul-15 Nov-15 Mar-16 Jul-16 Oct-16 Feb-17 Jun-17 Sep-17 Jan-18 May-18 Sep-18 Dec-18 Apr-19 Aug-19 Dec-19 Mar-20 Jul-20 Nov-20 Mar-21 Jun-21 2800220 8% 6% 4% 2% 0% -2% Jan-14 AVERAGE INFLATION Source: Geostat 5% 4% 1.3% 3% Aug-16 Dec-16 Apr-17 Aug-17 Dec-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 Dec-19 Mar-20 Jul-20 Nov-20 Mar-21 Jul-21 May-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19 Dec-19 Mar-20 Jul-20 Nov-20 Mar-21 Jul-21 Source: Geostat 5.8% do do ove dve glo o -2% 2% 1% 0% -1% -2% 52#5311% 10% 9% 8% 7% 6% 5% Jan-16 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-17 Dec-17 Mar-18 Jun-18 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Jan-14 May-14 Aug-14 Dec-14 Dec-14 INTERNATIONAL RESERVES International reserves at US$ 3.9bn in 7M21, up 0.8% y/y Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Aug-17 Dec-17 Apr-19 Apr-18 Aug-18 Dec-18 Dec-18 Apr-19 Aug-19 Dec-19 MONETARY POLICY RATE NBG increased policy rate by 200bps to 10.0% in 2021 (50bps in March, +100bps in April and +50bps in August) Sep-18 Dec-18 Mar-19 May-19 Aug-19 Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Gross international reserves, US$ mn INTERNATIONAL RESERVES AT ADECUATE LEVEL Mar-20 Jul-20 Nov-20 Mar-21 Jul-21 Source: NBG 75% 11% 10.0% 10% 70% 9% 65% 8% 60% 7% 55% 6% 50% 5% 45% Jan-14 Apr-14 Aug-14 Dec-14 Mar-15 Jul-15 Nov-15 Mar-16 Loan dollarization Jun-16 Oct-16 Feb-17 May-17 Sep-17 Jan-18 Source: NBG Jan-14 May-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 CENTRAL BANK'S INTERVENTIONS 250 220 NBG sold US$ 257.4mn in 7M21 200 US$ sale 200 174 100 120 120 150 100 80 83 100 40 40 2720 60 60 40 50 40 32.8 20 087 50 -15 -85 о -50 -20-20 -40 -20 -30 -100 US$ purchase 3 -25 -65 08- -30 -150 -200 -70 -120 -101 -140 Apr-16 Aug-16 LOAN AND DEPOSIT DOLLARISATION May-18 Aug-18 Dec-18 Apr-19 Jul-19 Nov-19 Mar-20 Deposit dollarization Dec-16 Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 NBG net interventions, US$ mn Apr-19 Aug-19 Dec-19 Mar-20 Source: NBG 75% 70% 60.0% 65% 60% 55% 52.4% 50% 45% Jul-20 Oct-20 Feb-21 Jun-21 Jul-20 Nov-20 Mar-21 Jul-21 Source: NBG 53#5460% 50% 40% 30% 20% 10% 0% -10% FX RESERVES FLOATING EXCHANGE RATE - POLICY PRIORITY Source: NBG 5.0 1.42 1.30 1.36 1.25 1.31 1.35 1.6 130 1.23 1.24 1.27 1.16 1.29 1.4 4.0 120 1.03 1.2 3.0 3.9 3.9 110 3.5 1.0 3.3 2.8 2.9 2.8 3.0 0.8 100 2.0 2.7 2.8 2.5 2.3 0.6 90 1.0 0.4 80 0.2 0.0 0.0 70 Official FX reserves, US$ bn M2 multiplier M2 AND ANNUAL INFLATION -M2, % change, y/y (LHS) Jun-16 Oct-16 Feb-17 Sep-17 Jan-18 May-18 Dec-18 Apr-19 Nov-19 Mar-20 Annual inflation, eop (RHS) NOMINAL AND REAL EFFECTIVE EXCHANGE RATE (JAN2014-100) Source: NBG Jan-14 Apr-14 Z Jul-14 Nominal effective exchange rate Nov-14 Feb-15 Jun-15 Sep-15 Jan-16 Apr-16 Aug-16 Nov-16 Mar-17 Jun-17 Source: NBG M2 AND USD/GEL 40% 12% 10% 30% 8% 20% 6% 4% 10% 2% 0% 0% -2% -10% Jun-21 M2, % change, y/y (LHS) Sep-17 Jan-18 Apr-18 Aug-18 Nov-18 Mar-19 Jun-19 Oct-19 130 120 -1.2% y/y 110 100 90 +1.9% y/y 80 70 Jan-20 Apr-20 Aug-20 Nov-20 Mar-21 Jun-21 Real effective exchange rate Source: NBG Ая Apr-19 Jul-19 Nov-19 Mar-20 Jul-20 Oct-20 Feb-21 Jun-21 GEL/USD, % change, y/y (RHS) 40% 30% 20% 10% 0% -10% 54#55GROWING AND WELL-CAPITALISED BANKING SECTOR SUMMARY Prudent regulation and oversight ensuring financial stability Strong resilience towards both domestic and external shocks without single bank going bankrupt No nationalisation of banks and no government ownership since 1994 Resilience to different shocks to the economy, room for healthy credit growth Source: National Bank of Georgia, Geostat BANKING SECTOR LOANS TO GDP, 2020 Czech Rep. Bosnia & Herz. Russia Croatia Estonia Slovakia Armenia Israel Brazil Turkey Georgia Greece Malta Austria Portugal Source: World Bank, NBG 53.6% 54.6% 60.0% 61.1% 64.0% 67.6% 69.0% 69.4% 70.2% 70.9% 77.4% 81.8% 83.6% 93.9% 100.0% 。៩៩៩៦ 8 8 20 40 30 BANKING SECTOR ASSETS, LOANS AND DEPOSITS 2003 24.7% CAGR Assets, GEL bn ■Loans, GEL bn Deposits, GEL bn NON-PERFORMING LOANS, LATEST 2020 Source: NBG 56.9 38.2 34.6 Source: IMF Hungary Lithuania 0.9% 1.0% Georgia 2.3% Czech Rep. 3.0% Latvia 3.1% Poland 3.7% Romania Turkey Belarus Portugal Bulgaria Bosnia & Herz. Armenia Croatia Kazakhstan Russia 3.8% 3.9% 4.8% 4.9% 5.8% 6.1% 6.6% 7.2% 8.4% 8.8% 55#56៦ 8 8 8 ៩៩៩ ៩ 100 120 180 160 140 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 80077 1Q09 2Q09 3Q09 60077 REAL ESTATE PRICE INDEX 1Q10 2Q10 3Q10 4Q10 1Q11 CREDIT GROWTH DYNAMICS BANKING SECTOR CORPORATE & RETAIL LOANS Inflation adjusted real estate price index (2010=100, GEL) Real wage index (2010-100, GEL) TO GDP Source: NBG, Geostat 8,624 8,626 119,300 Source: NBG 123,500 70% 106,370 Retail loans to GDP 7,048 92,980 28,500 60% Corporate loans to GDP 39% 6,031 29,600 37% 50% 5,035 4,708 31,720 33% 35,990 33% 40% 27% 30% 4,453 23% 30% 20% 4,604 17% 89,700 95,000 11% 12% 13% 74,650 20% 31% 38% 35% 3,589 3,918 56,990 24% 26% 25% 27% 2,595 10% 17% 17% 18% 21% 19% 1,427 0% 2018 2019 2020 1H21 2018 2019 2020 1H21 2Q11 MORTGAGE LOANS 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H21 FX-denominated mortgage loans, GEL mn ■GEL-denominated mortgage loans, GEL mn ◆ Total mortgage loans, GEL mn Number of mortgage loans in FX Number of mortgage loans in GEL Total number of mortgage loans 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 LZOL 2Q21 Source: NBG, Geostat 56#570% Azerbaijan Armenia INFLATION: GEORGIA AND PEERS 20% End-2020 ■Jun-21 15% 9.5% 9.9% 9.9% 10% 7.9% 6.5% 6.5% 4.7% 5% Russia Kazakhstan Ukraine Georgia Belarus Turkey Euro Azerbaijan Source: Statistic Offices GEORGIA VS REGION: FX, INFLATION, POLICY RATE Armenia 5.7% 0.1% -1.6% -4.0% -9.0% -11.1% -12.9% -17.3% -18.4% Moldova Georgia CURRENCY WEAKENING VS. US$ Source: Bloomberg Note: +/-appreciation/depreciation period 1-January, 2020 - 31-July, 2021 Kazakhstan 17.5% 20% End-2020 Jul-21 15% 10% 6.25% 6.50% 6.50% 5% 0% Azerbaijan Russia Armenia Ukraine Kazakhstan Ukraine Russia Belarus Turkey -41.4% MONETARY POLICY RATE: GEORGIA AND PEERS Source: Central Banks 8.00% Belarus Georgia 9.25% 9.25% 9.50% Turkey 19.0% 57#581Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 RECENT TREND - REAL GDP AND ITS COMPONENTS REAL GDP GROWTH BY QUARTER, % CHANGE YOY Source: Geostat 29.8% 15% UNEMPLOYMENT RATE 25% 21.7% 20% 15% 10% 5% 0% 18.4% 18.3% 18.6% 1Q19 30% 10% 25% 20% 5% 15% 6.8% 0% 10% 4.5% 4.4% 7.2% 6.0% 5.2% 5.4% 4.6% 5% 2.2% 2.3% -5% - 0% 3.4% 4.5% 4.1% 3.6% 3.2% 4.8% 1.8% -5.6% -4.5% -10% -5% -10% -6.8% -15% Consumption Net export -15% -13.2% -20% -20% 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Source: Geostat 40% 21.9% 19.7% 18.3% 20.4% 35% 17.3% 16.8% 16.6% 18.3% 17.0% 30% 25% 20% 15% 10% 5% 0% 1Q16 1Q16 2Q16 3Q16 4Q16 CONTRIBUTION TO REAL GDP GROWTH 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Investment Real GDP growth SAVINGS AND INVESTMENTS TO GDP ■Savings Source: Geostat Investments 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Source: Geostat, Galt & Taggart 1Q21 58#59600 400 200 0 -200 -400 009- -800 Jan-19 Feb-19 Mar-19 Oct-19 Trade deficit, US$ mn 500 400 300 200 100 0 -100 -200 -300 -400 Jan-19 Feb-19 Mar-19 Apr-19 STRONG GROWTH OF EXPORTS EXPORTS UP 25.2% Y-0-Y IN 1H21 Dec-19 Jan-20 Feb-20 Exports, US$ mn % change y/y TRADE DEFICIT UP 14.5% Y-o-Y IN 1H21 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jan-19 Feb-19 IMPORTS UP 18.9% YoY IN 1H21 Source: Geostat Source: Geostat 80% 1,000 75% 800 60% 60% 600 45% 40% 400 37.5% 30% 200 O 0% -200 -20% -400 -40% -600 15% 0% -15% -30% -45% Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Source: Geostat 43.3% 60% 40% Imports, US$ mn EXPORTS BY COMMODITY, 1H21 Copper 20.7% % change y/y 20% Other 37.0% 0% -20% Cars 10.9% -40% -60% Nuts 1.9% Ferro-alloys -80% 9.9% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 T-shirts 1.9% Wine Pharm. 2.3% Mineral waters 5.5% 3.5% % change y/y Fertilizers 2.7% Spirits 3.7% Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Source: Geostat 59#60BENEFITS FROM DIVERSIFIED ECONOMIC LINKAGES AND CLOSER TIES WITH EU EXPORTS, TOURISM, REMITTANCES AND FDI BY COUNTRY IN 1H21, AS of % OF TOTAL • ECONOMIC LINKAGES BREAKDOWN IN 1H21, SHARE IN EACH CATEGORY Other countries 39.3% Armenia 3.5% EU 25.0% Azerbaijan Ukraine 7.7% 5.7% Exports Tourism FDI Remittances EU 17.0% 10.0% 27.9% 42.5% Russia 14.0% 11.3% 25.4% 17.1% Turkey 8.7% 25.8% 19.5% 4.7% Russia 13.4% Azerbaijan 13.0% 4.3% -5.0% 3.9% Ukraine 7.3% 11.2% 0.9% 4.4% Armenia 5.4% 7.7% 2.5% 0.5% Other countries 34.6% 29.7% 28.8% 26.8% Turkey 8.3% Source: Geostat, NBG, GNTA, Galt & Taggart Source: Geostat, NBG, GNTA, Galt & Taggart Note: FDI is for 1Q21. Negative investment means a sale of shares or distributed profit 60#61CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q21 AND 1H21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | SEGMENT RESULTS 61#62RETAIL BANKING HIGHLIGHTS 1 2 BANK OF GEORGIA SOLO 3 BANK OF GEORGIA BUSINESS Segments Clients Mass Retail 2,268 k Mass Affluent 66k MSME 240k Loans GEL 3,157 mln GEL 2,811min GEL 3,490 mln Deposits GEL3,555min GEL 2,802 mln GEL 977 mln 1H21 profit GEL 53 mln GEL 50 mln GEL 60 min P/C ratio 2.2 4.7 1.5 Branches 194 11 1 At 30 June 2021 for JSC Bank of Georgia standalone 62#63RETAIL BANKING HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS Change Change Change GEL thousands unless otherwise noted 2Q21 2Q20 1Q21 1H21 1H20 y-o-y q-o-q y-o-y Net interest income Net fee and commission income Net foreign currency gain Net other income 135,064 44,223 102,667 31.6% 131,448 2.8% 266,512 220,934 20.6% 22,184 99.3% 37,385 18.3% 81,608 51,581 58.2% 10,026 7,525 33.2% 11,109 -9.7% 21,135 29,159 -27.5% 9,502 4,085 132.6% 8,841 7.5% 18,343 5,991 NMF Operating income 198,815 136,461 45.7% 188,783 5.3% 387,598 307,665 26.0% Salaries and other employee benefits (48,230) (41,826) 15.3% (40,055) 20.4% (88,285) (82,394) 7.1% Administrative expenses (22,992) (16,898) 36.1% (18,393) 25.0% (41,385) (37,629) 10.0% Depreciation, amortisation and impairment (19,097) (17,610) 8.4% (18,914) 1.0% (38,011) (35,499) 7.1% Other operating expenses (429) Operating expenses (90,748) (550) (76,884) -22.0% 18.0% (630) (77,992) -31.9% (1,059) (1,103) -4.0% 16.4% (168,740) (156,625) 7.7% (Loss) profit from associate (4,299) 113 Operating income before cost of risk 103,768 59,690 NMF 73.8% 167 NMF 110,958 -6.5% (4,132) 214,726 414 NMF 151,454 41.8% Cost of risk (10,435) (5,757) 81.3% (31,296) -66.7% Net operating income before non-recurring items 93,333 53,933 73.1% 79,662 17.2% (41,731) 172,995 (147,835) -71.8% 3,619 NMF Net non-recurring items 211 (1,249) NMF 156 35.3% 367 (40,178) NMF Profit before income tax 93,544 52,684 77.6% 79,818 17.2% Income tax (expense) / benefit (8,518) Profit 85,026 (3,214) 49,470 NMF 71.9% (5,834) 73,984 46.0% 14.9% 173,362 (14,352) 159,010 (36,559) NMF 8,000 NMF (28,559) NMF RB LOANS AND LOAN YIELD RB CLIENT DEPOSITS AND COST OF DEPOSITS 15.1% 12.9% 11.4% 11.1% 2.9% 2.9% 2.7% 2.6% 50.3% 43.7% 44.9% 41.5% 69.7% 68.0% 68.7% 68.4% 49.7% 2018 56.3% 55.1% 58.5% 30.3% 32.0% 31.3% 31.6% 2019 2020 1H21 2018 2019 2020 1H21 Net loans, GEL Currency-blended loan yield Net loans, FC Client deposits, FC O Client deposits, GEL Currency-blended cost of deposits 63#64RETAIL BANKING LOANS AND DEPOSITS MARKET SHARE - LOANS TO INDIVIDUALS* 37.5% 38.8% 37.7% MARKET SHARE - DEPOSITS OF INDIVIDUALS* 38.4% 40.3% 36.9% 40.3% 40.3% Dec-18 Dec-19 Dec-20 Jun-21 Dec-18 Dec-19 Dec-20 Jun-21 RETAIL BANKING LOANS GEL MILLIONS 8,735 7,428 6,267 +5.6% RETAIL BANKING DEPOSITS GEL MILLIONS 9,223 Dec-18 Dec-19 Dec-20 Jun-21 7,102 5,713 4,339 +3.3% 7,335 Dec-18 Dec-19 Dec-20 Jun-21 * Market shares by loans and deposits of individuals based on standalone accounts of the banks published by the National Bank of Georgia 64#65RETAIL BANKING LOAN YIELD, COST OF DEPOSITS AND NIM RETAIL BANKING LOAN YIELD I QUARTERLY RETAIL BANKING LOAN YIELD I HALF-YEAR 14.9% 15.2% 15.2% 11.1% 11.1% 11.1% 15.3% 15.2% 6.6% 6.1% 5.9% 11.5% 11.1% Loan Yield 2Q20 Loan yield, GEL 1Q21 Loan yield, FC 2Q21 6.8% 6.0% Loan Yield Loan yield, GEL 1H20 1H21 Loan yield, FC 65 RETAIL BANKING COST OF DEPOSITS I QUARTERLY RETAIL BANKING COST OF DEPOSITS I HALF-YEAR 6.4% 5.9% 5.8% 2.9% 2.7% 2.6% 1.4% 1.3% 1.2% 6.0% 5.8% 2.8% 2.7% 1.4% 1.2% Cost of deposits Cost of deposits, GEL Cost of deposits, FC Cost of deposits Cost of deposits, GEL Cost of deposits, FC ■1H20 1H21 2Q20 1Q21 2Q21 RETAIL BANKING NIM I QUARTERLY 4.0% 4.6% 4.5% RETAIL BANKING NIM I HALF-YEAR 4.4% 4.6% 2Q20 1Q21 2Q21 1H20 1H21#66RETAIL BANKING LOAN PORTFOLIO COMPOSITION RETAIL BANKING CLIENT DATA MORTGAGE LOANS DOLLARISATION Operating Data, GEL mln Number of total Retail clients, of which: Jun-21 Number of Solo clients Consumer and other loans, volume 2,573,729 65,746 2,192 Dec-20 2,616,480 60,330 1,924 Dec-19 Consumer and other loans, number 464,019 431,927 2,540,466 54,542 1,726 472,791 Dec-18 2,440,754 44,292 1,555 566,740 23% 26% 42% 46% 49% Mortgage loans, volume Mortgage loans, number Micro & SME loans, volume 3,771 3,734 55,564 52,665 3,302 3,126 Micro & SME loans, number 76,106 75,723 3,043 46,907 2,523 81,739 2,539 39,007 2,005 77% 74% 58% 54% 51% 68,832 Credit cards and overdrafts, volume 194 198 Credit cards and overdrafts, number 315,212 303,283 245 395,012 290 454,512 Dec-17 Credit cards, number, of which: 190,573 Dec-18 264,311 Dec-19 Dec-20 Jun-21 American Express cards 103,434 97,318 395,536 99,307 547,038 105,899 ■Mortgage loans, FC Mortgage loans, GEL RETAIL BANKING PORTFOLIO I JUN-21 Gross Loans by products Total: GEL 9.5bln Deposits by currency Total: GEL 7.3bln Deposits by category Total: GEL 7.3bln Credit. Other cards and General 2.7% overdrafts 2.0% consumer Mortgage Client Deposits, loans loans GEL 20.5% 39.9% 31.6% Micro and Client Deposits, FC Time deposits Current accounts & demand deposits 39.2% SME loans 68.4% 60.8% 34.9% 66#67DIVERSIFIED RETAIL PORTFOLIOS AND INCOME STREAMS BALANCE SHEET | JUN-21 JSC Bank of Georgia Standalone 33% Mass Retail (GEL 3,157min) 37% ■ Solo (GEL 2,811min) MSME 30% (GEL 3,490mln) 13% 38% 49% Mass Retail (GEL 3,555mln) ■Solo (GEL 2,802min) MSME (GEL 977mln). Total Loans GEL 9,458mln Total Deposits GEL 7,335min INCOME STATEMENT | 1H21 JSC Bank of Georgia Standalone Mass Retail (GEL 109mln) Net Interest Income GEL 267mln 34% 41% ■Solo 25% 14% 21% 65% (GEL 68mln) MSME (GEL 90mln) ■Mass Retail (GEL 44mln) ■ Solo (GEL 14mln) MSME (GEL 10min) Net Fee & Commission Income GEL 68mln 67#68CIB HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS Change Change Change GEL thousands unless otherwise noted 2Q21 2Q20 1Q21 1H21 1H20 y-o-y 9-o-q y-o-y Net interest income Net fee and commission income Net foreign currency gain Net other income 83,427 63,110 32.2% 72,532 15.0% 155,959 132,451 17.7% 11,322 9,197 23.1% 9,655 17.3% 20,977 18,152 15.6% 9,027 11,431 -21.0% 4,521 99.7% 13,548 19,965 -32.1% 18,176 4,825 NMF 15,069 20.6% 33,245 9,506 NMF Operating income 121,952 88,563 37.7% 101,777 19.8% 223,729 180,074 24.2% Salaries and other employee benefits (14,498) (14,170) 2.3% (14,905) -2.7% (29,403) (24,731) 18.9% Administrative expenses (4,978) (3,488) 42.7% (3,503) 42.1% (8,481) (7,954) 6.6% Depreciation, amortisation and impairment (2,020) (2,434) -17.0% (2,492) -18.9% (4,512) (4,907) -8.0% Other operating expenses (166) (227) -26.9% (271) -38.7% (437) (523) -16.4% Operating expenses (21,662) (20,319) 6.6% (21,171) 2.3% (42,833) (38,115) 12.4% Operating income before cost of risk 100,290 68,244 47.0% 80,606 24.4% Cost of risk 23,407 (2,536) NMF (12,066) NMF Net operating income before non-recurring items 123,697 65,708 88.3% 68,540 80.5% 180,896 11,341 192,237 141,959 27.4% (98,438) NMF 43,521 NMF Net non-recurring items (1) 32 NMF (73) -98.6% (74) (1,374) -94.6% Profit before income tax expense 123,696 65,740 88.2% 68,467 80.7% 192,163 42,147 NMF Income tax expense (10,914) (4,246) 157.0% (6,864) 59.0% (17,778) (2,398) NMF Profit 112,782 61,494 83.4% 61,603 83.1% 174,385 39,749 NMF CIB LOAN PORTFOLIO AND LOAN YIELD CIB CLIENT DEPOSITS AND COST OF DEPOSITS 4.1% 4.4% 4.6% 10.2% 9.1% 8.5% 8.6% 3.3% 47.7% 43.9% 61.2% 65.9% 82.3% 81.1% 79.7% 79.3% 52.3% 56.1% 38.8% 34.1% 17.7% 18.9% 2018 2019 20.3% 2020 20.7% 1H21 2018 2019 2020 1H21 Net loans, GEL Currency-blended loan yield Net loans, FC Client deposits, FC Client deposits, GEL Currency-blended cost of deposits 68#69CIB LOAN BOOK AND DEPOSITS MARKET SHARE - LOANS TO LEGAL ENTITIES* MARKET SHARE-DEPOSITS OF LEGAL ENTITIES* 32.0% 32.6% 31.0% 30.3% 30.9% 28.8% Dec-18 Dec-19 Dec-20 Jun-21 CIB LOANS GEL MILLIONS +3.5% 4,662 4,826 3,804 2,618 Dec-18 Dec-19 Dec-20 Jun-21 37.3% 37.4% Dec-18 Dec-19 Dec-20 Jun-21 CIB DEPOSITS GEL MILLIONS 3,825 3,473 Dec-18 -3.3% 6,395 6,185 Dec-19 Dec-20 Jun-21 * Market shares by loans and deposits of legal entities based on standalone accounts of the banks published by the National Bank of Georgia 69#70CIB LOAN BOOK AND DEPOSITS HIGHLIGHTS Leading corporate bank in Georgia Integrated client coverage in key major sectors of the Georgian economy 3,281 corporate customers served by dedicated relationship bankers at 30 June 2021 GROSS LOAN BOOK BY SECTOR | JUN-21 Mining & quarrying Health & social work 2.3% Top 10 CIB borrowers - 27.1% of CIB loan book 3.6% Financial intermediation 3.2% Other Manufacturing 15.5% 19.9% Construction 1.7% Trade 8.9% Real estate 17.2% Transport & Communication Hospitality 14.4% Service 3.8% 1.6% Electricity, gas &. water supply 7.9% Top 20 CIB borrowers - 37.2% of CIB loan book DEPOSITS BY CATEGORY | JUN-21 Time Current accounts deposits, 50.0% and demand deposits, 50.0% DEPOSITS BY CURRENCY | JUN-21 Client deposits, FC, 43.9% Client deposits, GEL, 56.1% 70#71CIB LOAN YIELD, COST OF DEPOSITS AND NIM CIB LOAN YIELD I QUARTERLY CIB LOAN YIELD I HALF-YEAR 13.1% 12.8% 7.8% 7.5% 12.4% 12.2% 13.3% 8.3% 8.6% 8.5% 7.5% 7.6% 7.3% 8.7% 8.5% Loan Yield ■2Q20 Loan yield, GEL 1Q21 Loan yield, FC 2Q21 CIB COST OF DEPOSITS I QUARTERLY Loan Yield Loan yield, GEL 1H20 ■1H21 Loan yield, FC CIB COST OF DEPOSITS I HALF-YEAR 8.1% 8.1% 7.4% 7.5% 7.7% 4.9% 4.4% 4.2% 4.6% 4.0% 1.7% 1.5% 1.4% 1.7% 1.5% Cost of deposits Cost of deposits, GEL Cost of deposits, FC 2Q20 1Q21 2Q21 Cost of deposits Cost of deposits, GEL Cost of deposits, FC 1H20 1H21 CIB NIMI QUARTERLY CIB NIMI HALF-YEAR 4.1% 3.9% 3.7% 3.4% 3.6% 2Q20 1Q21 2Q21 1H20 1H21 71#72WEALTH MANAGEMENT AND INVESTMENT BANKING WEALTH MANAGEMENT . STRONG REGIONAL PRESENCE Israel (2008), UK (2010), Turkey (2013) ☐ LONDON TBILISI ISTANBUL TEL AVIV CIB AUM - GEL 2,917 million, up 15.1% y-o-y Diversified funding base: 1,593 from 79 customers countries BANK OF GEORGIA WEALTH GALT & TAGGART ☐ ■ GALT & TAGGART CREATING OPPORTUNITIES LARGEST INVESTMENT BANK IN GEORGIA BROKERAGE Leading brokerage house in the region SAXO Exclusive partner of SAXO Bank via white label structure BANK RESEARCH " Macro, sector, and fixed income coverage Global market coverage DCM/ECM " Leading player on the local market Lead manager of choice for corporates as well as IFIs CORPORATE ADVISORY Track record of more than 30 completed transactions over the past ten years FINANCE Best Investment Bank in Georgia 2015-2020 72#73LEADING REGIONAL FRANCHISE GROWTH IN AUM GEL MILLIONS +15.1% -5.6% 3,091 2,917 2,740 2,769 2,534 1,432 1,043 1,157 1,395 961 1,573 1,697 1,612 1,659 1,522 Jun-20 Sep-20 Dec-20 Mar-21 Wealth Management Galt & Taggart Jun-21 DIVERSIFIED CUSTOMER BASE ACROSS MULTIPLE GEOGRAPHIES Israel 9% UK 10% Europe 16% Other 9% CIS 19% Georgia 37% Addressable market to drive growth covers multiple geographies 73 23#74GALT & TAGGART BROKERAGE - ONLINE BROKERAGE DRIVING GROWTH GALT & TAGGART BROKERAGE-GROSS REVENUES AND NET MARGINS* GEL MILLIONS NET 53.3% 49.9% 54.4% 54.7% 44.5% MARGIN 1.6 46 1.4 14 2.0 2.0 1.9 1.6 1.5 1.3 133 1.4 1.0 0.6 0.5 0.4 0.4 0.2 2Q20 3Q20 4Q20 1Q21 2Q21 FOCUS ON DIGITALISING BROKERAGE OFFERINGS SIGNIFICANT MILESTONES TOWARDS DIGITALISATION ACHIEVED IN 2020 ERP SYSTEM DASHBOARD TRADER.GE MOBILE APP ERP system enhancement to increase operational efficiency Launched Client Dashboard to improve customer experience and transparency Galt & Taggart Trader website enhancement to increase customer engagement Traditional Brokerage ■Online Brokerage** With investment phase behind, Galt & Taggart Brokerage business is now profitable and growing gradually, driven by Online Brokerage * Gross revenue stands for brokerage revenues before subtracting any brokerage and third-party brokerage fees; net margins are post these fees ** Offered through the white label solution from SAXO Bank 74 DIGITAL SOLUTION POWERED BY AI Develop mobile app in 2021 Gearing towards fully digital solution powered by AI FOCUSING ON MOBILE AND FULLY DIGITAL SOLUTIONS#75DIGITAL AREA ECOSYSTEM OVERVIEW ON-DEMAND CHILDCARE FULLY AUTOMATED INFLUENCER MARKETING UNIVERSAL MARKETPLACE- CHARITY SUPPORT PLATFORM ONLINE PHYSIOTHERAPY ONLINE BRANDING PLATFORM SELF-GUIDED TOURS AND TICKETS MARKETPLACE FOR GROUP TOURS REAL ESTATE ECOSYSTEM Corebook TRAVEL ME y nanny 8 363300 ONLINE CAR RENTALS MARKETPLACEWEGOTRIP Tripcars HOPSITALITY MANAGEMENT SOLUTION INTERNATIONAL VEHICLE AUCTIONS PREDICTIVE ANALYTICS FOR FARMERS LOGISTICS & DELIVERY CAR MAINTENANCE OUTSOURCING MODERN TECHNOLOGIES FOR FARMERS CARDEAL AREA GE LOYALTY extra.ge DIGITAL AREA izi OPTIMO COUPONS AND DISCOUNTS kvalifika Phubber adapter S AGROLABS CARU 2 FINMAP Quick Cash PAYZE ON DEMAND FREIGHT LOGISTICS SIMP LIUM SOFTWARE FOR MODELING URBAN AREAS lil KERNEL B2C SAAS PLATFORM FOR CLIENT AUTHENTICATION FASHION SHOPPING MARKETPLACE GROWTH MANAGEMENT FOR ONLINE SHOPS SIMPLE FINANCIAL TOOLS DIGITAL ADAPTATION PROGRAM FOR BUSINESSES TAB-LESS BROWSER FOR PRODUCTIVITY INTELLIGENT EMPLOYEE REFERRALS AI BASED E-COMMERCE SOLUTION AI DIGITAL LENDING INFRASTRUCTURE NATURAL LANGUAGE TRAINING TOOL MULTICHANNEL CUSTOMER ENGAGEMENT SOFTWARE INNOVATIVE DIGITAL SOLUTION FOR MSME TELECOMMUNICATION SOLUTION FINANCIAL MANAGEMENT TOOL FOR SME E-COMMERCE PAYMENTS 75#76DIGITAL AREA ECOSYSTEM OVERVIEW SINCE JUNE 2019 extra.ge launch of web platform largest e-commerce marketplace launch on IOS and Android apps " optimo.ge launch of merchant services " adapter.ge launch of digital transformation for MSMEs area.ge launch of real estate marketplace mortgage prequalification with Bank of Georgia IZibox - launch of full logistic services Accelerated 28 local and international startups INVESTED US$ 7.8 MLN 2018-1H21 COMING SOON extra.ge website and mobile app redesign top of mind e-commerce platform and best in class customer services in Georgia optimo.ge launch of loyalty programme launch of HORECA programme area.ge additional premium services accelerate the uptake of real estate sales management tool with developer companies Continue partnerships with other ecosystem players Digital Area ecosystem data harnessing PLAN TO INVEST US$ 3-10 MLN 2021-2023 76#77CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q21 AND 1H21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | CORPORATE GOVERNANCE 77#78STRONG INSTITUTIONAL INVESTORS SUPPORT TOP SHAREHOLDERS Rank Shareholder name BANK OF GEORGIA GROUP PLC As of 30 Jun 2021 Ownership SHAREHOLDER STRUCTURE As of 30 Jun 2021 1 JSC Georgia Capital* 19.90% 2 Fidelity Investments 6.35% 3% 3 Harding Loevner LP 4.34% 3% Unvested and unawarded shares for management and employees ■Vested shares held by management and employees ■ US 4 Van Eck Associates Corporation 3.48% 36% 27% 5 Dimensional Fund Advisors (DFA) LP 2.99% 6 Standard Life Investments 2.55% ■ UK/Ireland ■Luxembourg Scandinavia 7 Prosperity Capital Management Ltd 2.42% 2% 24% 5% 8 Vanguard Group Inc 2.31% Other** 9 Tiger Management Ltd 2.06% 10 M&G Investment Management Ltd 1.93% * JSC Georgia Capital will exercise its voting rights at the Group's general meetings in accordance with the votes cast by all other Group Shareholders, as long as JSC Georgia Capital's percentage holding in Bank of Georgia Group PLC is greater than 9.9% ** Includes 19.9% shareholding of JSC Georgia Capital 78#79BOARD OF DIRECTORS ROBUST CORPORATE GOVERNANCE BASED ON UK CORPORATE GOVERNANCE CODE Neil Janin, Independent Non-Executive Chairman Experience: formerly Director at McKinsey & Company in Paris; formerly co-chairman of the commission of the French Institute of Directors (IFA); formerly Chase Manhattan Banking New York and Paris. Archil Gachechiladze, Chief Executive Officer Experience: with the Group since 2009; originally joined as Deputy CEO, Corporate Banking; formerly: CEO of Georgian Global Utilities (formerly part of BGEO Group PLC). Over 17 years' experience in the financial services. 79 Hanna Loikkanen, Senior Independent Non-Executive Director Experience: Non-Executive Director of PJSC Rosbank; Non-Executive Director of Finn Fund, Non-Executive Director of VEF Ltd; formerly: Senior Executive at East Capital, FIM Group Russia, Nordea Finance, SEB. Al Breach, Independent Non-Executive Director Experience: Director of Gemsstock Ltd, The Browser and Furka Holdings AG, and advisor to East Capital; formerly: Head of Research, Strategist & Economist at UBS Russia and CIS, economist at Goldman Sachs. Tamaz Georgadze, Independent Non-Executive Director Experience: Executive Director and founder of Raisin GmbH (formerly Saving Global GmbH); formerly: Partner at McKinsey & Company in Berlin, aide to President of Georgia. Jonathan Muir, Independent Non-Executive Director Experience: CEO of LetterOne Holdings SA and of Letter One Investment Holdings; formerly: CFO and Vice President of Finance and Control of TNK-BP, Partner at Ernst & Young. Cecil Quillen, Independent Non-Executive Director Experience: Partner at Linklaters LLP with nearly 30 years of experience in working on a broad spectrum of securities and finance matters. Véronique McCarroll, Independent Non-Executive Director Experience: 30 years' in Financial Services; Currently, Head of Strategy for Digital banking across Europe at Orange; formerly: Executive Director at Crédit Agricole CIB, Partner at McKinsey & Company, Oliver Wyman and Andersen/ Ernst & Young. Mariam Megvinetukhutsesi, Independent Non-Executive Director Experience: 20 years' in Financial Services; formerly: Head of Georgia's Investors Council Secretariat, Deputy CEO at TBC Bank, banking appointments at the EBRD.#80HIGHLY EXPERIENCED MANAGEMENT TEAM 80 SENIOR EXECUTIVE COMPENSATION POLICY APPLIES TO TOP EXECUTIVES AND ENVISAGES LONG-TERM DEFERRED AND DISCRETIONARY AWARDS OF SECURITIES AND NO CASH BONUSES TO BE PAID TO SUCH EXECUTIVES Archil Gachechiladze, Chief Executive Officer With the Group since 2009. Previously, CEO of Georgian Global Utilities. Held various positions with the Group - Deputy CEO, CB; Deputy CEO, IM; CFO of BGEO Group; Deputy CEO, CIB. Over 20 years of experience of senior roles at TBC Bank, Lehman Brothers Private Equity, Salford Equity Partners, KPMG, World Bank, EBRD. Holds and MBA from Cornell University. Sulkhan Gvalia, Chief Financial Officer With the Group since 2004. Previously, founder and CEO of E- Space Limited, Tbilisi. Various positions with the Group - Chief Risk Officer and Head of Corporate Banking. Prior to joining the Group, served as Deputy CEO of TbilUniversal Bank. Also, serves as non- executive independent director at Inecobank (Armenia) since 2018. Holds a law degree from Tbilisi State University. Levan Kulijanishvili, Deputy CEO, Operations With the Group since 1997. Joined as a Junior Financial Analyst of the Bank. Held various senior positions - Deputy CEO in charge of finance, Head of Internal Audit, Head of Financial Monitoring, Head of Strategy and Planning, and Head of the Financial Analysis. Holds an MBA from Grenoble Graduate School of Business. George Chiladze, Deputy CEO, Chief Risk Officer With the Group since 2008. Joined as a Deputy CEO, finance at Bank. Left in 2011 and rejoined in 2013 as Deputy CEO, CRO. Prior to rejoining, he was Deputy CEO at the Partnership Fund. Prior to returning to Georgia in 2003, he worked at the programme trading desk at Bear Stearns in New York City. Holds a PhD in physics from Johns Hopkins University in Baltimore, Maryland. Mikheil Gomarteli, Deputy CEO, Mass Retail With the Group since 1997. Mikheil is a textbook professional growth story made possible in our Group - he developed his way from selling debit cards door-to-door to successfully leading our Retail Banking franchise for over ten years now. Holds an undergraduate degree in Economics from Tbilisi State University. Vakhtang Bobokhidze, Deputy CEO, Information Technology, Data Analytics, Digital Channels With the Group since 2005. Joined as Quality Control Manager. Left the Group in 2010 and rejoined the Group in December 2010. Prior to being appointed as Deputy CEO, served as Head of IT Department since 2016. Holds an MBA from Tbilisi State University.#81HIGHLY EXPERIENCED MANAGEMENT TEAM 81 Etuna Iremadze, Deputy CEO, Premium Business Banking With the Group since 2006. Around 20 years of experience in financial services. Previously, Head of Strategic Projects Department in Georgian Global Utilities (formerly part of BGEO Group). Held various positions within Group - Head of Blue Chip Corporate Banking Unit covering structured lending, M&As, significant buyouts in Georgia, project financing. Holds an MBA from Grenoble Graduate School of Business. Zurab Masurashvili, Head of SME Business Banking With the Group since 2015. Extensive experience in financial services. Previously, Head of Express Business, Head of MSME Business, Head of Retail Business in the Bank. Prior to joining the Group, held several positions in international organisations - EBRD, the World Bank, GTZ, served as a Deputy Chairman of the Board of Directors in Privatbank. Holds a degree in Geology from Georgian Technical University. Zurab Kokosadze, Deputy CEO, Corporate Banking With the Group since 2003. Around 20 years of experience in financial services. Prior to his recent appointment, he served as Head of Corporate Banking under the direct supervision of Deputy CEO, Corporate and Investment Banking. Held various senior positions within Group Senior Corporate Banker, FMCG Sector Head and Deputy Head of Corporate Banking. Holds an MBA from Grenoble Graduate School of Business. Andro Ratiani, CEO of Digital Area With the Group since 2018. Extensive experience in the global financial services. Previously, Head of Innovations and Bank of Georgia, Global Head of Product Management at IHS Markit, spent 6 years in UBS AG Investment & Wealth Management Bank in New York, worked in Wells Fargo during acquisition phase of Wachovia Bank. Started his career at the Bank's CIB Department. Holds a Master's degree in technology management from Columbia University. Levan Gomshiashvili, Chief Marketing Officer With the Group since 2019. Extensive experience in marketing. Founder of HOLMES&WATSON, creative agency, where he acted as Account Manager for banking and other sector clients. Founder of Tbilisi School of Communication, an educational facility with an emphasis on ExEd. Started his career in Georgian Railway, covering advertising and project management. Holds MSc in Management from University of Edinburgh. Nutsa Gogilashvili, Head of Customer Experience and HCM With the Group since 2016. Over 10 years of experience in financial services. Previously, Head of Strategic Processes of Corporate and Investment Banking and Head of Customer Experience Management in the Bank. Prior to joining the Group, held various senior positions in local and international financial institutions. Holds MSc in Finance from Cass Business School in London.#82CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q21 AND 1H21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | FINANCIAL AND OPERATING INFORMATION 82#83GROUP INCOME STATEMENT 83 Change Change Change GEL thousands, unless otherwise noted 2Q21 2Q20 1Q21 1H21 1H20 y-o-y 9-0-9 y-o-y Interest income Interest expense Net interest income Fee and commission income Fee and commission expense Net fee and commission income Net foreign currency gain Net other income Operating income Salaries and other employee benefits Administrative expenses Depreciation, amortisation and impairment Other operating expenses Operating expenses 446,636 (218,387) 228,249 379,038 17.8% 428,580 4.2% 875,216 767,364 14.1% (204,102) 7.0% (216,248) 1.0% (434,635) (395,347) 9.9% 174,936 30.5% 212,332 7.5% 440,581 372,017 18.4% 94,727 54,389 74.2% 76,446 23.9% 171,173 125,284 36.6% (37,521) (21,488) 74.6% (27,796) 35.0% (65,317) (52,271) 25.0% 57,206 32,901 73.9% 48,650 17.6% 105,856 73,013 45.0% 22,082 22,743 -2.9% 19,176 15.2% 41,258 53,404 -22.7% 27,438 9,081 NMF 23,482 16.8% 50,920 15,707 NMF 334,975 239,661 39.8% 303,640 10.3% 638,615 514,141 24.2% (68,812) (60,656) 13.4% (60,223) 14.3% (129,035) (117,194) 10.1% (30,068) (22,450) 33.9% (23,563) 27.6% (53,631) (49,470) 8.4% (22,354) (21,139) (584) (121,818) (Loss) profit from associates (4,299) Operating income before cost of risk 208,858 (913) (105,158) 113 134,616 Expected credit loss on loans to customers 25,140 11,621 Expected credit loss on finance lease receivables (683). (3,387) Other expected credit loss and impairment charge on other assets and provisions (10,424) (18,455) 5.7% -36.0% 15.8% NMF 55.2% 116.3% -79.8% -43.5% (22,561) -0.9% (44,915) (42,529) 5.6% (1,012) -42.3% (1,596) (1,974) -19.1% (107,359) 13.5% 167 NMF Cost of risk 14,033 (10,221) NMF 196,448 (28,236) (931) (14,950) (44,117) 6.3% (229,177) (4,132) 405,306 (211,167) 8.5% 414 NMF NMF -26.6% -30.3% NMF (3,096) (1,614) 303,388 (216,568) 33.6% -98.6% (5,273) -69.4% (25,374) (30,084) (29,782) -14.8% Net operating income before non-recurring items 222,891 124,395 79.2% 152,331 46.3% 375,222 (251,623) 51,765 -88.0% NMF Net non-recurring items (67) (1,241) -94.6% 17 NMF Profit before income tax 222,824 123,154 80.9% 152,348 46.3% (50) 375,172 (41,586) -99.9% 10,179 NMF Income tax (expense) / benefit Profit (20,654) (8,470) 143.8% 202,170 114,684 76.3% (13,424) 138,924 53.9% (34,078) 4,560 NMF 45.5% 341,094 14,739 NMF Profit attributable to: - shareholders of the Group - non-controlling interests Earnings per share (basic) Earnings per share (diluted) 201,239 114,174 76.3% 138,214 931 510 82.5% 710 45.6% 31.1% 339,454 14,659 NMF 1,640 80 NMF 4.21 2.40 75.4% 2.87 46.7% 7.08 0.31 NMF 4.19 2.40 74.6% 2.87 46.0% 7.04 0.31 NMF#84GROUP BALANCE SHEET Change Change GEL thousands, unless otherwise noted Jun-21 Jun-20 Mar-21 y-o-y 9-0-9 Cash and cash equivalents 1,719,058 Amounts due from credit institutions 2,035,487 1,633,755 1,700,075 5.2% 19.7% 2,361,663 2,200,803 -27.2% -7.5% Investment securities 2,149,725 2,113,900 1.7% 2,406,405 -10.7% Loans to customers and finance lease receivables 14,789,371 12,599,092 17.4% 14,601,275 1.3% Accounts receivable and other loans 2,475 4,060 -39.0% 6,051 -59.1% Prepayments 33,903 31,513 7.6% 33,921 -0.1% Inventories Right-of-use assets Investment property Property and equipment Goodwill Intangible assets Income tax assets 10,476 13,901 -24.6% 10,775 -2.8% 81,865 89,758 -8.8% 81,056 1.0% 235,649 212,182 11.1% 246,441 -4.4% 387,014 396,272 -2.3% 385,352 0.4% 33,351 33,351 0.0% 33,351 0.0% 138,341 116,355 18.9% 129,044 7.2% 190 54,595 -99.7% 3,668 -94.8% Other assets Assets held for sale 189,311 45,294 139,945 35.3% 208,135 -9.0% 45,212 0.2% 44,305 2.2% Total assets 21,851,510 19,183,966 13.9% 22,752,245 -4.0% Client deposits and notes 13,944,383 11,583,139 20.4% 14,003,209 -0.4% Amounts owed to credit institutions 3,224,577 3,521,860 -8.4% 4,039,250 -20.2% Debt securities issued 1,515,511 1,561,933 -3.0% 1,653,399 -8.3% Lease liabilities 91,670 96,878 -5.4% 97,488 -6.0% Accruals and deferred income 54,626 37,257 46.6% 59,455 -8.1% Income tax liabilities 74,704 70,171 6.5% 57,541 29.8% Other liabilities 132,678 112,929 17.5% 154,253 -14.0% Total liabilities 19,038,149 16,984,167 12.1% 20,064,595 -5.1% Share capital Additional paid-in capital Treasury shares Other reserves 1,618 511,273 (52) 11,975 1,618 0.0% 1,618 0.0% 500,887 (54) 2.1% -3.7% 532,787 -4.0% (34) 52.9% 25,417 -52.9% 61,857 -80.6% Retained earnings 2,275,882 Total equity attributable to shareholders of the Group 2,800,696 1,662,164 2,190,032 36.9% 2,079,362 9.5% 27.9% 2,675,590 4.7% Non-controlling interests 12,665 9,767 29.7% 12,060 5.0% Total equity 2,813,361 Total liabilities and equity 21,851,510 2,199,799 19,183,966 27.9% 2,687,650 4.7% 13.9% 22,752,245 -4.0% Book value per share 58.86 46.07 27.8% 55.59 5.9% 84#85BNB FINANCIAL HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS Change Change Change 2Q21 2Q20 1Q21 1H21 1H20 GEL thousands, unless otherwise noted y-o-y 9-0-9 y-o-y Net interest income 9,752 9,157 6.5% 8,347 16.8% 18,099 18,626 -2.8% Net fee and commission income 1,622 1,486 9.2% 1,570 3.3% 3,192 3,190 0.1% Net foreign currency gain 3,029 3,787 -20.0% 3,546 -14.6% 6,575 4,280 53.6% Net other income/ (expense) 53 350 -84.9% (237) NMF (184) 683 NMF Operating income 14,456 14,780 -2.2% 13,226 9.3% 27,682 26,779 3.4% Operating expenses (9,656) (8,098) 19.2% (8,342) 15.8% (17,998) (16,804) 7.1% Operating income before cost of risk 4,800 6,682 -28.2% 4,884 -1.7% 9,684 9,975 -2.9% Cost of risk 1,061 (1,928) NMF (755) NMF 306 (5,350) NMF Net non-recurring items (277) (24) NMF (66) NMF (343) (34) NMF Profit before income tax expense 5,584 4,730 18.1% 4,063 37.4% 9,647 4,591 110.1% Income tax expense (1,222) (1,010) 21.0% (726) 68.3% Profit 4,362 3,720 17.3% 3,337 30.7% (1,948) 7,699 (1,042) 3,549 86.9% 116.9% BALANCE SHEET HIGHLIGHTS Jun-21 Jun-20 GEL thousands, unless otherwise noted Change y-o-y Change Mar-21 9-0-9 Cash and cash equivalents 122,271 187,920 -34.9% 192,338 -36.4% Amounts due from credit institutions 56,967 13,605 NMF 66,673 -14.6% Investment securities 95,899 93,549 2.5% 94,952 1.0% Loans to customers and finance lease receivables 657,473 638,713 2.9% 705,261 -6.8% Other assets 45,624 50,667 -10.0% 50,418 -9.5% Total assets 978,234 984,454 -0.6% 1,109,642 -11.8% Client deposits and notes 493,355 647,977 -23.9% 587,724 -16.1% Amounts owed to credit institutions 329,063 144,815 127.2% 347,018 -5.2% Debt securities issued 6,583 57,289 -88.5% 20,761 -68.3% Other liabilities Total liabilities Total equity Total liabilities and equity 15,696 12,873 21.9% 17,498 -10.3% 844,697 862,954 -2.1% 973,001 -13.2% 133,537 121,500 9.9% 136,641 -2.3% 978,234 984,454 -0.6% 1,109,642 -11.8% 85#86KEY RATIOS 2Q21 2Q20 1Q21 1H21 1H20 Profitability ROAA, annualised ROAE, annualised RB ROAE 3.6% 2.4% 2.5% 3.1% 0.2% 29.4% 21.8% 21.5% 25.6% 1.4% 22.1% 16.4% 20.7% 21.4% -4.7% CIB ROAE Net interest margin, annualised RB NIM 42.1% 31.5% 24.1% 33.4% 9.9% 4.7% 4.2% 4.5% 4.6% 4.6% 4.5% 4.0% 4.6% 4.6% 4.4% CIB NIM 4.1% 3.4% 3.6% 3.9% 3.7% Loan yield, annualised 10.4% 10.2% 10.4% 10.4% 10.6% RB Loan yield CIB Loan yield Liquid assets yield, annualised Cost of funds, annualised Cost of client deposits and notes, annualised 11.1% 11.1% 11.1% 11.1% 11.5% 8.5% 8.3% 8.6% 8.5% 8.7% 3.3% 3.4% 3.1% 3.2% 3.7% 4.5% 4.8% 4.5% 4.5% 4.8% 3.5% 3.5% 3.8% 3.6% 3.3% RB Cost of client deposits and notes 2.6% 2.9% 2.7% 2.7% 2.8% CIB Cost of client deposits and notes 4.4% 4.2% 4.9% 4.6% 4.0% Cost of amounts due to credit institutions, annualised 6.9% 7.3% 6.2% 6.6% 7.5% Cost of debt securities issued 7.0% 7.7% 6.9% 7.0% 7.7% Operating leverage, y-o-y 23.9% -13.6% 9.3% 15.7% -11.2% Operating leverage, q-o-q -3.1% -11.9% 10.9% 0.0% 0.0% Efficiency Cost income RB Cost/income CIB Cost/income 36.4% 43.9% 35.4% 35.9% 41.1% 45.6% 56.3% 41.3% 43.5% 50.9% 17.8% 22.9% 20.8% 19.1% 21.2% * For the description of Key Ratios, refer to page 89 86#87KEY RATIOS 2Q21 2Q20 1Q21 1H21 1H20 Liquidity NBG liquidity coverage ratio (minimum requirement 100%) 124.5% 135.4% 149.3% 124.5% 135.4% Liquid assets to total liabilities 31.0% 32.1% 34.7% 31.0% Net loans to client deposits and notes 106.1% 108.8% 104.3% 106.1% 32.1% 108.8% Net loans to client deposits and notes + DFIs 93.2% 94.5% 90.0% 93.2% 94.5% Leverage (times) 6.8 7.7 7.5 6.8 7.7 Asset Quality: NPLs (in GEL) 524,964 NPLs to gross loans to clients 3.5% 355,260 2.7% 534,626 524,964 355,260 3.6% 3.5% 2.7% NPL coverage ratio 73.1% 115.7% 77.5% 73.1% 115.7% NPL coverage ratio, adjusted for discounted value of collateral 122.2% 166.3% 127.8% 122.2% 166.3% Cost of credit risk, annualised -0.6% -0.2% 0.8% 0.1% 3.5% RB Cost of credit risk 0.3% 0.2% 1.4% 0.8% 3.7% CIB Cost of credit risk -2.5% -1.7% -0.2% -1.4% 3.2% Capital Adequacy: NBG (Basel III) CET1 capital adequacy ratio 12.5% 9.9% 11.2% 12.5% 9.9% Minimum regulatory requirement 11.1% 6.9% 7.8% 11.1% 6.9% NBG (Basel III) Tier I capital adequacy ratio 14.4% 12.0% 13.3% 14.4% 12.0% Minimum regulatory requirement 13.4% 8.7% 9.8% 13.4% 8.7% NBG (Basel III) Total capital adequacy ratio 19.1% 17.4% 18.6% 19.1% 17.4% Minimum regulatory requirement 17.7% 13.3% 13.8% 17.7% 13.3% * For the description of Key Ratios, refer to page 89 87#88KEY OPERATING DATA Jun-21 Jun-20 Mar-21 Selected operating data: Total assets per FTE 2,863 2,671 3,054 Number of active branches, of which: 211 229 211 - Express branches 105 121 105 - Bank of Georgia branches 95 97 95 - Solo lounges 11 11 11 Number of ATMs 972 940 963 Number of cards outstanding, of which: 2,079,786 2,178,053 2,111,255 - Debit cards 1,889,213 1,828,691 1,877,281 - Credit cards 190,573 349,362 233,974 Number of POS terminals Number of Express Pay terminals FX Rates: 33,772 23,787 30,053 3,141 3,118 3,125 GEL/US$ exchange rate (period-end) 3.1603 3.0552 GEL/GBP exchange rate (period-end) 4.3754 3.7671 3.4118 4.6929 Full time employees (FTE), of which: 7,633 7,181 7,450 - Full time employees, BOG standalone 6,050 5,693 5,889 - Full time employees, BNB 543 543 536 - Full time employees, other 1,040 945 1,025 Shares outstanding Ordinary shares Treasury shares Total shares outstanding 47,578,565 1,590,863 49,169,428 47,536,332 1,633,096 49,169,428 48,130,454 1,038,974 49,169,428 88#89KEY RATIO DEFINITIONS Cost of funds Interest expense of the period divided by monthly average interest bearing liabilities; Cost of credit risk Expected loss on loans to customers and finance lease receivables for the period divided by monthly average gross loans to customers and finance lease receivables over the same period; Cost to income ratio Operating expenses divided by operating income; Interest bearing liabilities Amounts owed to credit institutions, client deposits and notes, and debt securities issued; Interest earning assets (excluding cash) Amounts due from credit institutions, investment securities (but excluding corporate shares) and net loans to customers and finance lease receivables; Leverage (times) Total liabilities divided by total equity; Liquid assets Cash and cash equivalents, amounts due from credit institutions and investment securities; Liquidity coverage ratio (LCR) High quality liquid assets (as defined by NBG) divided by net cash outflows over the next 30 days (as defined by NBG); Loan yield Interest income from loans to customers and finance lease receivables divided by monthly average gross loans to customers and finance lease receivables; NBG (Basel III) Common Equity Tier I capital adequacy ratio Common Equity Tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions; NBG (Basel III) Tier I capital adequacy ratio Tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions; NBG (Basel III) Total capital adequacy ratio Total regulatory capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions; Net interest margin (NIM) Net interest income of the period divided by monthly average interest earning assets excluding cash for the same period; Net stable funding ratio (NSFR) available amount of stable funding (as defined by NBG) divided by the required amount of stable funding (as defined by NBG) Non-performing loans (NPLs) The principal and interest on loans overdue for more than 90 days and any additional potential losses estimated by management; NPL coverage ratio Allowance for expected credit loss of loans and finance lease receivables divided by NPLs; NPL coverage ratio adjusted for discounted value of collateral Allowance for expected credit loss of loans and finance lease receivables divided by NPLs (discounted value of collateral is added back to allowance for expected credit loss); Operating leverage Percentage change in operating income less percentage change in operating expenses; Return on average total assets (ROAA) Profit for the period divided by monthly average total assets for the same period; Return on average total equity (ROAE) Profit for the period attributable to shareholders of the Group divided by monthly average equity attributable to shareholders of the Group for the same period; NMF Not meaningful 89#90COMPANY INFORMATION Registered Address 42 Brook Street London W1K 5DB United Kingdom Registered under number 10917019 in England and Wales Secretary Link Company Matters Limited 65 Gresham Street London EC2V 7NQ United Kingdom Stock Listing London Stock Exchange PLC's Main Market for listed securities Ticker: "BGEO.LN" Contact Information Bank of Georgia Group PLC Investor Relations Telephone: +44 (0) 203 178 4052; +995 322 444444 (9282) E-mail: [email protected] www.bankofgeorgiagroup.com 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)370 873 5866 Share price information Shareholders can access both the latest and historical prices via the website, www.bankofgeorgiagroup.com 90