#1GEORGIA CAPITAL Georgia-focused investment company Investor Presentation: 1Q18 results#2Forward looking statements Disclaimer GEORGIA CAPITAL This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Georgia Capital PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. By their nature, these forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, certain of which are beyond our control, include, among other things: currency fluctuations, including depreciation of the Georgian Lari, and macroeconomic risk; regional tensions and instability; regulatory risk across a wide range of industries; cyber security, information systems and financial crime risk; investment business and investment business strategy risk; risks associated with the demerger and future performance; and other key factors that indicated could adversely affect our business and financial performance, which are contained elsewhere in this document and in our past and future filings and reports and also the 'Principal Risks and Uncertainties' included in BGEO Group PLC's Annual Report and Accounts 2017. No part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in Georgia Capital PLC or any other entity, including Bank of Georgia Group PLC or any of their associated entities, and must not be relied upon in any way in connection with any investment decision. Georgia Capital PLC and other entities undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Nothing in this presentation should be construed as a profit forecast. Page 2#3Content 1. 1Q18 results discussion | Georgia Capital 2. Investment strategy & portfolio overview 3. 1Q18 results discussion | Investment portfolio 4. Georgian Macro Overview 5. Appendices GEORGIA CAPITAL Page 3#4Georgia Capital at glance Georgia Capital portfolio GEORGIA CAPITAL Investment company focused on investing in and developing businesses in Georgia LSE listed Bank of Georgia (Banking) 19.9% Energy (managed by GGU) 65% Private Early stage Hospitality & Commercial real estate (managed by m²) 100% Late stage GHG (Healthcare) 57% Beverages (managed by Teliani) 76% Water Utility (managed by GGU) 100% Housing Development (managed by m²) 100% P&C Insurance (managed by Aldagi) 100% First day of trading on LSE premium segment -29 May 2018 GEORGIA CAPITAL Page 4#5Georgia Capital's early stage portfolio - 3x1,000 target GEORGIA CAPITAL 1,000 hotel rooms 1,000 hectares of vineyard 1,000MW capacity Target Georgia Capital targets to have 1,000 hotel rooms in its hospitality business portfolio over the next 3 years Our beverage business targets to increase its vineyard base to 1,000 hectares over the next 3 years Our energy business plans to have 1,000MW installed capacity over the next 5 years Current | 31 March 2018 Currently 760 rooms of which 152 are operational and 608 are in the pipeline Currently 86 hectares of vineyard base (436 hectares at 30 April 2018)¹ Up to 53MW of hydro projects are currently under construction, together with 46MW of hydro projects under development, and 100MW wind projects - at the feasibility stage 3x1,000 target to capitalize on the fast-growing Georgian economy and increase shareholder value 1 In April 2018, we acquired a 60% indirect controlling interest in Kindzmarauli Marani LLC, a producer of exquisite Georgian wines and spirits, which owns 350 hectares of vineyards. Page 5#61Q18 performance highlights 1Q18 Revenue y-o-y growth ☑ +27.5% 1Q18 revenue, adjusted to include revenue of the discontinued operations (1), was GEL 296.7mln, up 16.3% y-o-y GGU revenue Aldagi revenue m² revenue Teliani revenue Revenue from discontinued operations 1Q18 EBITDA y-o-y performance (2) +10.6% ►1Q18 EBITDA, adjusted to include EBITDA of the discontinued operations, was GEL 46.1mln +13.1% GGU EBITDA +3.4% Aldagi EBITDA +48.0% +94.4% +11.4% 1Q18 Revenue contribution 209.7 296.7 87.0 30.7 29.2 12.9 12.5 1.7 GGU Aldagi m² Teliani Other Consolidated³ GHG Total m² EBITDA Teliani EBITDA EBITDA from discontinued operations 1Q18 EBITDA contribution +0.8% +5.1% +71.7% NMF +25.3% 31.8 46.1 14.4 14.3 4.5 1.3 (2.1) (3.0) GGU Aldagi m² Teliani Consolidated³ Other GHG Total 1 In December 2017, the Group's board of directors decided to reduce the Group's stake in GHG to less than 50% during 2018 and in line with IFRS, Georgia Capital continues to classify GHG as a "disposal group held for sale" in its 1Q18 balance sheet and GHG's results of operations are reported under the "discontinued operations" line as a single amount in the Georgia Capital's consolidated income statement. 2y-o-y EBITDA growth includes discontinued operations, GHG 3 excludes eliminations GEORGIA CAPITAL Page 6#7Georgia Capital - 1Q18 results highlights Consolidated Income Statement Quarterly income statement GEL thousands, unless otherwise noted Gross utility and energy profit Gross insurance profit Gross real estate profit Gross beverage profit Other income Gross profit Operating expenses Impairment charge EBITDA change change 1Q18 1Q17 4Q17 y-o-y q-o-q 20,850 17,527 19.0% 22,869 (8.8%) 6,852 6,890 (0.6%) 6,305 8.7% 3,937 2,589 52.1% 5,773 (31.8%) 4,471 2,317 93.0% 7,109 (37.1%) 1,672 1,528 9.4% 2,502 (33.2%) 37,782 30,851 22.5% 44,558 (15.2%) (21,510) (13,891) 54.8% (22,675) (5.1%) (2,005) (104) NMF (618) NMF 14,267 16,856 (15.4%) 21,265 (32.9%) Depreciation and amortisation (8,972) (5,598) 60.3% (9,056) (0.9%) Net foreign currency gain (loss) 5,878 5,771 1.9% (5,797) NMF Interest income 3,934 2,532 55.4% 4,088 (3.8%) Interest expense (9,524) (6,770) 40.7% (8,969) 6.2% Profit before non-recurring items and income tax 5,583 12,791 (56.4%) 1,531 264.7% Net non-recurring items (156) 113 NMF (460) (66.1%) Profit before income tax expense 5,427 12,904 (57.9%) 1,071 406.7% Income tax expense (693) (687) 0.9% (1,666) (58.4%) Profit (loss) from continuing operations 4,734 12,217 (61.3%) (595) NMF Profit from discontinued operations¹ 24,641 12,829 92.1% 12,270 100.8% Profit Earnings per share (basic) Earnings per share (diluted) 29,375 0.46 0.44 25,046 17.3% 11,675 151.6% 0.47 (2.5%) 0.19 141.5% 0.45 (2.3%) 0.18 145.7% (1) Profit from discontinued operations includes GEL 7.7min reversal of GHG's depreciation expense in line with IFRS requirements, GHG's underlying profit was GEL 16mln GEORGIA CAPITAL Page 7#8Georgia Capital - 1Q18 results highlights Consolidated Balance Sheet For the quarter ended GEL thousands, unless otherwise noted Cash and cash equivalents Amounts due from credit institutions Debt securities owned Equity investments at fair value change change 31-Mar-18 31-Mar-17 31-Dec-17 y-o-y q-o-q 528,697 37,667 359,629 47.0% 374,301 41.2% 174,248 (78.4%) 38,141 (1.2%) 45,233 2,197 NMF 31,906 41.8% 707,153 1,153 NMF 1,153 NMF Property and equipment 700,905 1,053,786 (33.5%) 661,176 6.0% Investment properties 153,638 131,378 16.9% 155,367 (1.1%) Assets of disposal group held for sale 1,202,765 1,165,182 3.2% Total assets 3,841,003 2,415,485 59.0% 2,763,913 39.0% Borrowings 381,070 532,572 (28.4%) 377,501 0.9% Debt securities issued 732,401 335,773 118.1% 357,442 104.9% Liabilities of disposal group held for sale 629,955 619,026 1.8% Total liabilities 1,964,463 1,353,402 45.1% 1,584,245 24.0% Total equity 1,876,540 1,062,083 76.7% 1,179,668 59.1% GEORGIA CAPITAL Page 8#9Key portfolio highlights | 31 March 2018 GEL millions 788 503 GEL 2.1 billion Portfolio value | 31-Mar-2018 706 Estimated fair value of 19.9% equity holding LSE Market value adjustment Book value of equity GEL 418 million Liquid assets | 31-Mar-2018 Cash at bank of GEL 341 million Liquid assets of GEL 77 million 285 141 285 65 55 GHG BOG GGU m2 Teliani Aldagi Value creation Georgia Capital invested GEL 570 million in GGU, GHG, m², Aldagi and Teliani, translating into GEL 1,333 million portfolio value at 31 March 2018(1) Min. IRR of 25% 121% IRR from GHG IPO 75% IRR from m² Real Estate projects 1 Excluding BoG 2 Stated at book value 3 Georgia Capital on-lent funds from bond proceeds to the portfolio companies US$ millions GEL 240 million Net debt |31-Mar-2018 ► Georgia Capital issued inaugural US$ 300mln international corporate bonds in March 2018 GEORGIA CAPITAL Outstanding debt coverage 898 53 226 619 99 Listed investments ■Private investments On-lent funds' ■Net debt Portfolio over net debt Listed assets over net debt 9.0x 6.2x Page 9#10Georgia capital's US$300mm Eurobond issuance Notes: Listing: Notes rating: Joint Bookrunners: Joint Lead- Manager: Co-Manager: First ever non-sovereign owned corporate international bond from Georgia US$ 300 million, 6 year, 6.125% Eurobonds Irish Stock Exchange, GEM market B2 (Moody's) / B+ (S&P) Citi, J.P. Morgan Renaissance Capital Galt & Taggart ALLOCATION BY INVESTOR TYPE Other 2% Supranational 23% Asset managers GEORGIA CAPITAL Georgia Capital's risk management policy key measures Georgia Capital intends to hold liquid assets of at least US$ 50 million at all times Net Debt to Asset Portfolio to be no more than 30% at all times ALLOCATION BY GEOGRAPHY United states 7% Rest of Europe 16% 34% Banks/PBs 41% United Kingdom 57% Georgia 16% Asia & Other 4% Page 10#11Content 1. 1Q18 results discussion | Georgia Capital 2. Investment strategy & portfolio overview 3. 1Q18 results discussion | Investment portfolio 4. Georgian Macro Overview 5. Appendices GEORGIA CAPITAL Page 11#12Georgia Capital - strategy Georgia Capital strategy is based on three pillars GEORGIA CAPITAL 1 Georgia Leading economy in the region ■ Diversified non-commodity reliant economy with consistently high GDP growth across the last decade Top-ranked in economy environment indices #9 in ease of doing business (2018) Top-9 in Europe region by Economic Freedom Index (Heritage Foundation, 2018) and #16 internationally ■Low corruption and bribery risk (TI, 2017 and Trace international, 2017) Investment-led GDP growth with 5.5% growth potential expected in 2018 Development of large public infrastructure programs backed by multilateral international funding driving GDP growth Historically low inflation with 3% target set for 2018- 2020 by National Bank of Georgia 2 3 3-fundamental enablers Access to capital Only investment company in Georgia ■ Uniquely positioned given the access to capital in a small frontier economy Flexibility to use own shares as acquisition currency " Access to management Reputation among talented managers as the - "best group to work for" Attracted talents have demonstrated track record of successful delivery Commitment to the highest level of corporate governance Outstanding track record Strong board and robust corporate governance Aligned shareholders' and management's interests by share compensation Capital allocation & Managing investments Capital allocation Highly disciplined approach to unlock value through investments Clear, company specific, exit paths through IPO or trade sale in 5-10 years and outstanding divesture skills demonstrated via successful public listing of healthcare business Disciplined when investing, by buying cheaply Buying assets cheaply is the first and most important element of Georgia Capital's investment strategy Harvesting investments " Attracting and developing talent is a top priority Aligned management style with institutionalized/ non-institutionalized portfolio companies Share ownership plans (proxy shares) for portfolio companies' management ■Track record of Institutionalizing and creating independently managed healthcare business Page 12#13Georgia 3-fundamental enablers Capital allocations & managing investments GEORGIA CAPITAL Access to a Market with 2.8bn population without Customs Duties Georgia is the second country in the world, after Switzerland, with FTAs with both EU and China Georgia highlights FTA with China signed in May 2017, effective from January 2018 FTA with European Free Trade Association countries signed in June 2016, effective for Iceland and Norway from September 2017, pending for Liechtenstein and Switzerland FTA with Hong Kong, negotiations completed ➤FTA with India under consideration WTO member since 2001 ➤ Very simple and service-oriented customs policy and administration c. 80% of goods free from import tariffs No quantitative restrictions Preferential Trade Regimes: DCFTA (Deep and Comprehensive Free Trade Agreement) with EU signed in June 2014 1. 2. FTA with CIS countries (Russia, Kazakhstan, etc.) 3. FTA with Turkey 4. FTA with China 56 5. 6. FTA with EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) GSP agreements with USA, Canada, and Japan Page 13#140 20 20 60 60 40 40 1990 160 140 120 100 80 Ground floor opportunity Georgia 3-fundamental enablers Capital allocations & managing investments GEORGIA CAPITAL Georgian Economy 1990-2017: collapse, stabilization, acceleration, crisis, rebound, sustainable economic growth and finally strong future growth potential Real GDP Index, 1990=100 1991 Soviet union collapse Rebound from highly depressed levels during 1995-2000 2003 Launch of ambitious economic reforms Rebound and sustainable economic growth Strong growth potential By 1994, economy lost 73% of its 1990 level 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Economy at 100% of its 1990 level Acceleration halted by global financial crisis Economy at 50% of its 1990 level Sources: World Bank, IMF, GeoStat 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F 2022F Page 14#15Georgia Capital value proposition - 3-fundamental enablers 1 Superior access to capital Only investment company in Georgia Uniquely positioned given the access to capital in a small frontier economy, where access to capital is limited: c.US$ 500 mln raised in equity at LSE Issued five Eurobonds totaling US$ 1.5 billion US$ 3 billion+ raised from IFIS (EBRD, IFC etc.) Flexibility to use own shares as acquisition currency 3 2 Georgia 3-fundamental enablers Capital allocations & managing investments GEORGIA CAPITAL Access to management - Reputation among talented managers as the "best group to work for" Attracted talents have demonstrated track record of successful delivery Proven DNA in turning around companies and growing them efficiently Strong skillset in company exits LSE IPO track record Divestiture skills Strong corporate governance Outstanding track record in: ■ Institutionalizing businesses, creating independently run/managed institutions Investor reporting transparency and granularity Strong board and robust corporate governance Aligned shareholders' and management's interests Management compensation linked to performance Equity/performance dominating compensation structure Page 15#16Capital allocation & harvesting investments 3 Georgia 3-fundamental enablers Capital allocations & managing investments GEORGIA CAPITAL Georgia Focused Diversified Investment Company Targeting Minimum IRR of 25% 1 2 Capital allocation Highly disciplined approach to unlock value through investments, targeting " High-multiple businesses, defensive industries - service, consumer Consider greenfields through mature stage companies 360° analysis to be performed when evaluating capital returns, new investment opportunities or divestments: Buybacks to be actively considered as an investment opportunity when appropriate " and subject to rigorous analyses Recycling of publicly traded investments into privately held ones Use of Georgia Capital shares as acquisition currency Clear exit paths through IPO or trade sale in 5-10 years Harvesting investments Developing talent is a top priority Advisory approach for management of more mature phase companies Hands-on management approach to the non-public portfolio companies at early stages of their development Board participation (if needed) in publicly listed companies Page 16#17Georgia Capital's board of directors Board of Directors - Georgia Capital PLC GEORGIA CAPITAL Irakli Gilauri, Chairman & CEO Experience: formerly BGEO Group CEO; MS in banking from CASS Business School, London; BBS from University of Limerick, Ireland William Huyett, Independent Non-Executive Director Experience: formerly a Director of McKinsey & Company, based in its Boston office, for over 28 years Caroline Brown, Independent Non-Executive Director Experience: Chief Financial Officer at Listen Media Campaign Company, Chief Innovation Officer and Founding Partner at Cambridge Advisory Partners Jyrki Talvitie, Independent Non-Executive Director Experience: 28 years of experience in the banking, including Sberbank, VTB, East Capital and Bank of New York in both buy and sell-side transactions David Morrison, Senior Independent Director Experience: formerly Director at Sullivan & Cromwell with a track record of over 28 years, Founding CEO of the Caucasus Nature Fund (CNF) Kim Bradley, Independent Non-executive Director Experience: Goldman Sachs AM, Senior Executive at GE Capital, President of Societa Gestione Crediti, Board Chairman at Archon Capital Deutschland Massimo Gesua'sive Salvadori, Independent Non- Executive Director Experience: currently an analyst at Odey asset management, formerly with McKinsey & Company for over 9 years Page 17#18Georgia Capital's highly experienced management team Georgia Capital Irakli Gilauri, Chairman & CEO Formerly CEO of BGEO Group since 2011, joined as CFO of Bank of Georgia in 2004. Mr Gilauri was appointed Chairman of the Bank in September 2015, having previously served as CEO of the Bank since May 2006. Prior, he was EBRD (European Bank for Reconstruction and Development) banker. Over the last decade, Irakli's leadership has been instrumental in creating major players in a number of Georgian industries, including banking, healthcare, utilities and energy, real estate, insurance and wine. Holds an MS in banking from CASS Business School. Avto Namicheishvili, Deputy CEO Formerly BGEO Group General Counsel. Joined as a General Counsel at the Bank in 2007, and has since played a key role in all of the Group's equity and debt raises on the capital markets, and over 25 mergers and acquisitions. Prior, was a Partner at a leading Georgian law firm. Holds LLM in international business law from Central European University, Hungary. Ekaterina Shavgulidze, Chief Investment Officer Formerly served as Head of Funding and Investor Relations in BGEO Group. Joined BGEO as a CEO of healthcare services business in 2011. Most recently Eka played a key role in the GHG IPO as a Group Head of IR. Prior, she was an Associate Finance Director at AstraZeneca, UK. Holds an MBA from Wharton Business School. Georgia Capital Management BOG Listed GHG GGU չա Nikoloz Gamkrelidze, CEO, Georgia Healthcare Group GEORGIA CAPITAL Previously deputy CEO (Finance) of BGEO Group. Our healthcare business story starts with Nick, who started it in 2006, and has successfully led it through outstanding growth and most recently the IPO on the London Stock Exchange. Holds an MA in international healthcare management from the Tanaka Business School of Imperial College London. Kaha Kiknavelidze, CEO of Bank of Georgia Joined as member of the Bank's Supervisory Board and Audit Committee in 2008. Kaha founded and managed Rioni Capital Partners LLP, a London-based investment management company until his appointment as a CEO of the Bank. Kaha has served in a number of roles at UBS and Troika Dialog. Holds an MBA from Emory University. Archil Gachechiladze, CEO, Georgia Global Utilities Previously a Deputy CEO in charge of corporate banking in Bank of Georgia. He launched the Bank's industry and macro research, brokerage, and advisory businesses, as well as leading investments in GGU and launched Hydro Investments. Prior, he was an Associate at Lehman Brothers Private Equity in London, and worked at Salford Equity Partners, EBRD, KPMG, Barents, and the World Bank. Holds MBA with distinction from Cornell University and is CFA charterholder Irakli Burdiladze, CEO, m² Real Estate Joined as a CFO at the Bank of Georgia in 2006. Before taking leadership of real estate business in 2010, he served as the COO of the Bank. Prior he was a CFO at a leading real estate developer and operator in Georgia. Holds a graduate degree in International Economics and International Relations from the Johns Hopkins University School of Advanced International Studies. Giorgi Alpaidze, Chief Financial Officer Formerly BGEO Group CFO. Joined BGEO as Head of Group's Finance, Funding and Investor Relations in 2016. He has extensive international experience in banking, accounting and finance. Previously he was a senior manager in Ernst & Young LLP's Greater New York City's assurance practice. BBA from the European School of Management in Georgia. U.S. Certified Public Accountant. Private Aldagi Teliani Shota Kobelia, CEO, Teliani Valley Having previously worked at Pernod Ricard in the USA and Easter Europe, joined Teliani to build up Ukrainian distribution in 2009. In 2010, became CEO for Teliani Valley and developed it from a small and loss-making winery into a major beverage group with own distribution channels on the main markets. Holds MS in Sales & Marketing from Bordeaux Business School. Giorgi Baratashvili, CEO, Aldagi Joined as the Head of Corporate Clients Division of Aldagi in 2004. Before taking the leadership of our P&C insurance business in 2014, he served as Deputy CEO of Aldagi in charge of strategic management for corporate sales and corporate account management. Holds the Master Diploma in International Law. Page 18#19Portfolio management principles Investment Stage Acquisition/Entrance Discovery Portfolio Company Development Focus Significance of Influence Renewable Energy Early Young Portfolio Companies Beverages Hospitality & Commercial real estate Rapid growth organically and through M&A High 3 Georgia 3-fundamental enablers Late Large Portfolio Companies P&C Insurance Housing development Water Utility Focus on efficiency improvements Capital allocations & managing investments GEORGIA CAPITAL Target to Exit Exit Possible Completion of Exit Mature Portfolio Companies GEORGIA HEALTHCARE GROUP BANK OF GEORGIA Sustainable shareholder value creation and dividend distributions Influence Through Strategy and agenda setting ■ Active human capital management ■Talent development ■ Executive coaching Active involvement Strategy approval Capital allocation approval ■ Human capital management ■ Advisory and mentoring ■ Oversight ■ Board membership ■ AGM voting Institutionalisation/ Independence Low Low High Page 19#20Business model with cost and synergy advantages Only integrated player in the region with significant cost advantage in scale and synergies Financial metrics (GEL m) 1Q17 4Q17 1Q18 Number of hospitals 35 37 37 Number of beds 2,731 3,014 3,320 Number of polyclinics 13 16 17 Number of pharmacies 245 255 256 Bed occupancy rate, referral hospitals 68.1% 60.4% 65.7% * FY16 includes only May-Dec GPC's results Annual Quarterly Revenue EBITDA 2015 246 2016 2017 1017 1Q18 450.00 426 748 186 208 400.00 56 78 108 25 31 GBP 1.70 350.00 Profit before tax 24 40 46 13 16 IPO price 300.00 Healthcare EBITDA margin 27.4% 30.2% 26.4% 25.3% 25.2% 250.00 Pharma EBITDA margin N/A 4.3%* 8.6% 7.8% 10.0% 200.00 Selected operating metrics 150.00 100.00 Healthcare and pharmacy business (GHG) overview Market Leader 26.4% market share by number of beds (3,320) ■ 30% market share by Pharma sales. Key facts The widest population coverage: over 3/4 of Georgia's 3.7mln population Long-term high-growth opportunities GEORGIA HEALTHCARE GROUP Market opportunity Total healthcare market (including healthcare services and pharmacy) GEL million GEORGIA CAPITAL 6,000 5,000 Very low base: healthcare services spending per capita only US$ 325 4,000 Growing market: healthcare spending growing at 11.5% CAGR 2000-2014 3,000 ■ Implying long-term, high-growth expansion driven by potential to develop medical tourism and Polyclinics (outpatient clinics) 2,000 Total Market CAGR 2011-2016 of 16% 1,552 1,716 2,034 3,062 3,218 Total Market CAGR 2017-2021 of 8% 3,760 4,062 4,397 3,488 4,765 2,464 1,000 0 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Exit Strategy - Sell downs/Block trades In May 2017 Georgia Capital sold 9.5 million shares of GHG (7.2%) for US$ 40 million Georgia Capital's stake in GHG is currently at 57% 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F Source: Frost & Sullivan analysis 2017 Stock price performance Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 GBP 2.65 as of 10-May-2018 Jan-18 Mar-18 May-18 Page 20#21Bank of Georgia (BOG) Overview Key facts High standards of transparency and governance The first entity from Georgia to be listed on the premium segment of the Main Market of the London Stock Exchange (LSE:BGEO) since February 2012. Industry investment rationale Leading market position¹ in Georgia by assets (36.2%), loans (33.3%), client deposits (35.4%) and equity (28.6%) Market with stable growth perspectives ■ Strong brand name recognition and retail banking franchise Sustainable growth combined with strong capital, liquidity and robust profitability ■ Outstanding ROAE performance Targets ■ Become a regional private banking hub with AUM: GEL 2.5bln Maintenance of dividend payout ratio within 25-40% Financial metrics (GEL m) BANK OF GEORGIA GEORGIA CAPITAL 30 Market opportunity Banking sector assets, loans and deposits 40 ww 35 26.2% CAGR 34.6 30.1 25 25.2 20 20.6 22.3 17.3 18.9 15 12.7 14.4 16.0 8.9 10.6 13.0 10 1.3 1.7 2.5 4.2 7.2 8.3 10.5 6.0 4.6 5.2 6.3 7.7 8.7 5 0.8 0.9 1.7 2.7 19.8 0.7 2.1 1.0 3.2 3.6 0 1.3 4.0 5.5 6.7 7.6 9.7 11.6 14.3 17.0 2003 2004 2005 2006 2007 2008 Source: NBG Assets, GEL bn 2009 2010 2011 2012 2013 2014 2015 2016 2017 Loans, GEL bn Deposits, GEL bn GEL 7.8bln loan portfolio breakdown (GEL m) (2) | 31 March 2018 Annual 2015 2016 2017 Quarterly 1Q17 1Q18 ROAE NIM 21.9% 22.2% 25.2% 23.7% 25.9% 7.7% 7.4% 7.3% 7.4% 7.0% NPL coverage 83.4% 86.7% 92.7% 87.1% 111.4% Retail loans, 5,279.8mln, Corporate loans, 2,333.9mln, 30.7% Loan portfolio 5,367 6,682 7,741 6,471 7,792 69.3% Retail banking growth 35.3% 39.5% 29.3% 34.1% 32.5% Cost/income 35.5% 37.7% 37.7% 36.0% 37.0% Dividend record (GEL m) Selected operating metrics Payout ratio: 10% 15% 30% 36% 33% 34% 32% 32% 1Q17 4Q17 1Q18 140 Retail clients (thousands) Product to client ratio (retail) Mobile bank transactions (thousands) Digital transactions (mln) 2,188 2,315 2,356 120 100 Dividend per share CAGR (GEL)-39.6% 3.50 3.10 2.40 2.60 3.00 2.10 2.00 2.50 2.0 2.2 2.2 80 1.50 2.00 60 0.70 c.120 1.50 980 98 102 2,324 2,818 40 0.30 72 80 1.00 20 9 24 51 0.50 8.1 10.3 10.5 0 0.00 2010 2011 2012 2013 2014 2015 Total dividend paid for the year 2016 Dividend per share 2017F (1) (2) Exit Strategy - Sell downs Market data based on standalone accounts as published by the National Bank of Georgia (NBG) as of 31 March 2018 www.nbg.gov.ge Excluding BNB Page 21#22Water utility and energy business (GGU) overview Key facts Utility Natural monopoly ■Stable cash collection rates ■Growing dividend payment capacity ■RAB-based tariff methodology WACC set at 15.99% by regulator Energy Untapped energy market with potential for significant growth Low per capita power usage Hydro Power Plants are cheap to build Wind Power Plants generate large portion of annual production during winter, when Georgia faces deficit Targeting 1,000MW capacity over the next 5 years GWh 22,000 CAGR: 5.4% 17,000 12,000 7,000 2,000 ° 1 Market opportunity 6 00 0 O Generation, actual GEORGIA CAPITAL Consumption: 5% 6.1 Twh Generation, forecast Dividend record (GEL m) 13 28 Financial metrics (GEL m) Annual Quarterly 2016 2017 2015 2016 2017 1Q17 1Q18 Total revenue* 118 127 135 28.6 32.3 Of which, u EBITDA 2014-2020E (GEL m) , utility revenue 104 117 125 27.4 30.2 Of which, hich, energy revenue 18 15 14 2.2 3.1 Total EBITDA 62 68 71 14.4 14.6 Total EBITDA 55 62 68 71 87 116 122 Of which, utility EBITDA 46 57 62 13.1 12.8 CAGR: Of which, energy EBITDA 80 16 11 9 1.3 1.7 80% 59% 59% 14.1% 51% 52% 52% 55% 60 45% Selected operating metrics 60% 40 70 70 75 40% 57 62 1Q17 4Q17 1Q18 20 44 46 47 20% 11 16 11 9 17 Water sales (m³) 35,321 36,825 35,682 0% 2014A 2015A 2016A 2017A 2018E 2019E 2020E Electricity generation (kwh thousand) 64,711 85,292 86,671 Electricity consumption (kwh thousand) 72,951 68,442 Utility EBITDA Energy EBITDA EBITDA margin 61,065 New connections 385 843 891 * Includes eliminations Exit Strategy - IPO in 2020-2021 Page 22#23Housing development & Hospitality business (m²) overview m Outstanding track record Key facts ■ Generated IRR ranging from 31% to 329% on 7 completed residential projects ■ Cost advantage through the vertical integration of its construction, project management and sales platforms Industry investment rationale ■ Average household size is significantly higher compared to Europe Most of the housing stock dates back to Soviet era and is amortised ■ As country continues to grow urbanisation levels are increasing ■Record number of tourists visiting Georgia every year Asset light strategy Unlock land value by developing housing projects Developing third party land - franchise m² brand name Grow yielding asset portfolio Generate fee income from third party construction projects Enter hotel development business ■ Build, Sell (by wrapping into REIT) and Manage Reach 1000 hotel rooms over the next 3 years. Currently approximately 760 rooms of which 152 are operational and c. 610 are in the pipeline უძრავი ქონეგა REAL ESTATE GEORGIA CAPITAL Market opportunity Tourist inflow expected to double over the next 3 years Number of tourists, millions 10 Average Household Size 8 5.5 6 4.8 3.3 2.8 2.7 2.7 4.1 4 3.5 2.6 2.4 2.3 2.3 2.2 2.1 4 2.2 2.3 2.7 2 0 2 0 Georgia i Croatia Slovakia Poland Romania Bulgaria NAV track record (USD m) - Triple NAV by 2022 Hungary EU Estonia Lithuania Financial metrics (USD m) Annual Quarterly 2015 2016 2017 1Q17 1Q18 Gross revenue from apartments sales $20 $41 $37 $7 $11 Commercial real estate portfolio EBITDA $14 $18 $30 $17 $30 $8 $6 $10 $0.3 $0.5 $59 Net Asset Value $45 $51 $59 $55 $61 $45 $51 $55 $61 Selected operating metrics 1Q17 4Q17 1Q18 Number of apartments sold 143 165 53 Apartments in stock 704 217 164 On-going projects 4 4 4 Leased area (sq.m.) 17,925 20,477 19,629 2015 2016 2017 1Q17 1Q18 Exit Strategy - Spin-off as REIT Page 23#24P&C insurance business (Aldagi) overview Key facts Industry investment rationale Underpenetrated insurance market Lack of digitalisation providing first-mover advantage Compulsory border TPL kicked in from 1 March 2018 and local TPL in 2020 Untapped retail Casco insurance market ■c. 50k cars insured out of 1.2m cars, only 4% penetration Aldagi's market share in retail Casco insurance - 40% per GPW based on 2017 data Solid track record Outstanding ROAE performance ■Doubled retail portfolio during the last 3 years Target to grow net income to GEL 50 million in 2022 year Financial metrics (GEL m) Annual 2015 2016 2017 Quarterly 1Q17 1Q18 Earned premiums, gross 68 71 86 19 20 Net income 12* 14 16 4 4 Combined ratio 79% 73% 75% 72.7% 72.4% Loss ratio 43% 35% 40% 39.1% 40.8% ROAE 37% 37% 38% 36.9% 31.3% Selected operating metrics 1Q17 4Q17 1Q18 Active corporate clients 2,073 2,125 2,404 Active retail clients 37,209 45,598 55,418 Corporate insurance policies written 14,159 12,486 14,405 Retail insurance policies written 17,539 24,497 32,529 *Excluding one-off FX contract with GEL 8mln loss ALDAGI Market opportunity Penetration (GPW I GDP) & Density (GPW per Capita USD) (¹) GEORGIA CAPITAL 8,000 6,000 10.2% 8.9% 9.2% 4,000 6,934 2,000 4,064 3,395 6.4% 6.1% 12.0% 10.0% UK (1) P&C insurance lines for Geogia Switzerland France 2,613 2,548 Insurance Density Belgium Germany Slovenia Poland 4.9% 8.0% 1,036 351 2.8% 2.1% 6.0% 1.3% 155 144 Bulgaria 135 Turkey Russia Dividend record (GEL m) Insurance Penetration Armenia Azerbaijan Georgia 1.5% 0.6% 0.7% 1.2% 4.0% 23 2.0% 28 40 0.0% 7 2016 7 2017 Best combined ratio on the market 78.5% 72.7% 72.4% 35.0% 33.6% 31.6% 39.1% 43.5% 40.8% Q1 2017 Q4 2017 Q1 2018 Loss Ratio Expense Ratio Exit Strategy - IPO or strategic sale in 5 years Page 24#25Beverage business (Teliani valley) overview Key facts TELIANI VALLEY Market opportunity GEORGIA CAPITAL Low consumption per capita compared to peers Beer consumption in Peer Countries 2016 (1/capita) 200 2.5 2.0 Peer Average 88 litre 1.5 1.0 0.5 0.0 Industry investment rationale High growth sector which has doubled during last 5 years to GEL 1.8 billion High multiple business Best-in-class distribution network platform provides competitive advantage to onboard additional beverage businesses ■ Recent free trade agreements with China and EU provide opportunities for growing wine exports 10 year exclusivity with Heineken to produce beer to be sold in Georgia, Armenia and Azerbaijan (c.17mln population) Wine business ■ Market leader with 35% market share in premium HoReCa and modern trade segment based on bottle wine sales ■ Increase vineyard base to 1,000 hectares, from current 436 hectares¹, over the next three years. Beer production business Local production - 13% market share² at 31 March 2018 since mainstream beer "ICY" launch in June'17 Financial metrics (GEL m) Annual 2015 2016 2017 Quarterly 1Q17 1Q18 Revenue (wine) 18 18 3 5 Revenue (beer) N/A N/A EBITDA (wine) 2 EBITDA (beer) N/A 3 N/A 563 22865 18 0.4 0.6 (5) (0.6) (3) 150 100 50 0 Czech Republic GEL millions Wine sales (bottles) Selected operating metrics Beer sales (liters) 1 Includes current acquisition of Kindzmarauli Marani LLC 2 market share is calculated based on liter sales 1Q17 4Q17 1Q18 559,538 1,137,518 732,446 1,841,845 2,250,945 Austria Germany Poland Lithuania Ireland Estonia Romania Slovenia Georgia 2011 2012 2013 2014 2015 ul Beverage Market GEL billions 2016 2017E Consolidated EBITDA track record (GEL m) Turned-around loss making business and increased wine EBITDA Wine EBITDA was 3.4 GEL 0.6mln in 3.1 3.0 2.5 1Q18, posting 1.7 2.0 1.3 1.7 53.2% y-o-y growth 0.9 (2.6) 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 Exit Strategy - Strategic Sale Page 25#26Content 1. 1Q18 results discussion | Georgia Capital 2. Investment strategy & portfolio overview 3. 1Q18 results discussion | Investment portfolio 4. m² Real Estate Georgian Macro Overview 5. Appendices GEORGIA CAPITAL Page 26#27m² financial highlights Income statement GEORGIA CAPITAL Housing development Change Change GEL thousands, unless otherwise noted 1Q18 1Q17 4Q17 1Q18 1Q17 y-o-y q-o-q Hospitality Change y-o-y Consolidated¹ Change Change Change 4Q17 1Q18 1Q17 4Q17 q-o-q y-o-y q-o-q Revenue from apartments sales 27,861 Cost of apartments (24,939) Gross profit from apartments sales 2,922 18,399 (17,109) 1,290 51.4% 45.8% 126.5% 30,788 (9.5%) 27,861 18,399 51.4% 30,788 (9.5%) (26,890) (7.3%) (24,939) (17,109) 45.8% (26,890) (7.3%) 3,898 (25.0%) 2,922 1,290 126.5% 3,898 (25.0%) Revenue from operating lease 1,001 899 11.3% 986 1.5% 1,001 899 11.3% 986 1.5% Cost of operating leases (151) (83) 81.9% (135) 11.9% (151) (83) 81.9% (135) 11.9% Gross profit from operating leases 850 816 4.2% 851 (0.1%) 850 816 4.2% 851 (0.1%) Revenue from hospitality services 344 NMF NMF 344 NMF NMF Cost of hospitality services (277) NMF NMF (277) NMF NMF Gross profit from hospitality services 67 NMF NMF 67 NMF NMF Revaluation of commercial property 479 NMF 99 NMF (618) NMF 479 NMF (519) NMF Gross real estate profit 2,922 1,769 Other income 178 11 Gross profit 3,100 1,780 65.2% NMF 74.2% 3,997 (26.9%) 917 816 12.4% 233 NMF 3,839 56 NMF 9 NMF NMF 90 2,585 11 48.5% 4,230 (9.2%) NMF 56 60.7% 4,053 (23.5%) 926 816 13.5% 233 NMF 3,929 2,596 51.3% 4,286 (8.3%) Salaries and other employee benefits (829) Administrative expenses (1,426) (396) (1,336) 109.3% (939) (11.7%) (318) (11) NMF (256) 24.2% (1,147) (407) NMF (1,195) (4.0%) 6.7% (1,459) (2.3%) (48) (91) Operating expenses (2,255) (1,732) EBITDA 845 48 Depreciation and amortization (134) (63) 30.2% NMF 112.7% (2,398) (6.0%) (366) (102) (47.3%) NMF (41) 17.1% (1,474) (1,427) 3.3% (1,500) (1.7%) (297) 23.2% (2,621) (1,834) 42.9% (2,695) (2.7%) 1,655 (48.9%) 560 714 (21.6%) (64) NMF 1,308 762 71.7% 1,591 (17.8%) (305) (56.1%) (5) (3) 66.7% (10) (50.0%) (139) (66) 110.6% (315) (55.9%) Net foreign currency (loss) gain (297) (184) 61.4% 89 NMF (10) (10) 5 NMF (307) (194) 58.2% 94 NMF Interest income 99 182 (45.6%) 151 (34.4%) 3 7 (57.1%) (6) (150.0%) 102 189 (46.0%) 145 (29.7%) Interest expense (2) NMF (41) (46) (10.9%) (47) (12.8%) (41) (48) (14.6%) (47) (12.8%) Net operating income (loss) before 513 (19) NMF 1,590 (67.7%) 507 662 (23.4%) (122) NMF 923 643 43.5% 1,468 (37.1%) non-recurring items Net non-recurring items (31) (73) (57.5%) (191) (83.8%) (1) Profit before income tax 482 (92) NMF 1,399 (65.5%) 506 (3) 659 (66.7%) (23.2%) (6) (128) (83.3%) (32) (76) (57.9%) (197) (83.8%) NMF 891 567 57.1% Income tax expense (468) NMF (13) NMF 1,271 (481) (29.9%) NMF Profit 482 (92) NMF 931 (48.2%) 506 659 (23.2%) (141) NMF 891 567 57.1% 790 12.8% 1 includes inter-segment eliminations Page 27#28m² financial highlights GEL thousands, unless otherwise noted Balance Sheet Mar-18 Change Change Mar-17 Dec-17 y-o-y q-o-q Cash and cash equivalents Amounts due from credit institutions 107,822 208 48,636 121.7% 34,751 NMF 179 16.2% 114 82.5% Prepayments 45,656 17,842 155.9% 34,932 30.7% Inventories 55,684 83,922 (33.6%) 59,683 (6.7%) Investment property, of which: 145,738 110,831 31.5% 150,143 (2.9%) Land bank 74,452 68,789 8.2% 72,902 2.1% Commercial real estate 71,286 42,042 69.6% 77,241 (7.7%) Property and equipment 51,917 9,110 NMF 49,641 4.6% Other assets 16,702 25,202 (33.7%) 21,565 (22.6%) Total assets 423,727 295,722 43.3% 350,829 20.8% Amounts due to credit institutions¹ 155,078 38,912 298.5% 58,992 162.9% Debt securities issued 61,879 62,278 (0.6%) 65,122 (5.0%) Deferred income 33,128 53,670 (38.3%) 46,660 (29.0%) Other liabilities 17,531 7,657 129.0% 15,425 13.7% Total liabilities 267,616 162,517 64.7% 186,199 43.7% Share Capital 4,180 4,180 4,180 Additional paid-in capital 84,356 86,227 (2.2%) 82,793 1.9% Other reserves 4,299 13,469 (68.1%) 14,460 (70.3%) Retained earnings 53,573 29,329 82.7% 52,779 1.5% Total equity attributable to shareholders of the Group 146,408 133,205 9.9% 154,212 (5.1%) Non-controlling interest 9,703 NMF 10,418 (6.9%) Total equity 156,111 133,205 Total liabilities and equity 423,727 295,722 17.2% 43.3% 164,630 (5.2%) 350,829 20.8% 1 m² borrowed US$39mln from Georgia Capital at the end of 1Q18 to refinance some of the existing borrowings and fund the on-going developments of hotels in pipeline GEORGIA CAPITAL Page 28#29m² financial highlights Cash Flow Change Change GEL thousands, unless otherwise noted Cash flows from operating activities Proceeds from apartments sales Cash outflows for development of apartments Net proceeds from yielding assets 1Q18 1Q17 4Q17 y-o-y q-o-q 21,489 (24,165) 850 27,740 (22,362) 856 (22.5%) 33,042 (35.0%) 8.1% (18,399) 31.3% (0.7%) 851 (0.1%) Cash paid for operating expenses (4,560) (1,725) NMF (2,131) 114.0% Interest paid (43) (1,587) (97.3%) (5,030) (99.1%) Income tax paid (3,854) (100.0%) (890) (100.0%) Net cash flows from/(used in) operating activities (6,429) (932) NMF 7,444 (186.4%) Cash flows from investing activities Purchase of investment properties Capital expenditure on investment property Purchase of property, plant and equipment Acquisition of subsidiaries Net cash flows used in investing activities (4,295) NMF NMF (1,788) (673) NMF (3,281) (45.5%) (8,568) (2,389) NMF (6,519) 31.4% 0% (10,562) (100.0%) (14,651) (3,062) NMF (20,362) (28.0%) Cash flows from financing activities Repayment of debt securities issued (34,099) (100.0%) 0.0% Contributions under share-based payment plan Proceeds from borrowings Repayment of borrowings 98,745 (56) 0.0% NMF (4,998) 12,696 (100.0%) NMF Net cash flows from/(used in) financing activities 98,689 (1,166) (35,265) (95.2%) NMF (15,633) (99.6%) (7,935) NMF Effect of exchange rate changes (4,444) (5,136) (13.5%) 4,234 NMF Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period* Cash and cash equivalents at the end of the period* 73,165 (44,395) 34,865 93,210 108,030 48,815 NMF (62.6%) 121.3% (16,619) 51,484 34,865 NMF (32.3%) NMF * The balances include cash and cash equivalents and amounts due from credit institutions GEORGIA CAPITAL Page 29#30- m² – a leading player on Georgian real estate market Housing Development - Market of US$ 1.1 bln¹ 1 Affordable housing Fully Develop land bank with total value of US$ 29 mln and c.3,697³ apartments 7 Completed projects 1,691 apartments, 99% sold with 145mln US$ sales value 4 Ongoing projects 1,202 apartments, 87% sold with 85mln US$ sales value Asset base at 31 March 2018 US$ 80 million 2 Includes: 1. Inventory of 46% of residential real estate m²'s total assets 2. Land bank 1. Transactions volume of residential flats in Tbilisi in 2017 2 Franchise m² Develop third-party land plots under m² brand name Largest Franchise Deal Signed 3,600 apartments to be delivered in 4-5 years; Expected m² fees: " Construction Fee: 10% of construction costs Sales & Marketing Fee: 2.5% sales commissions Incentive Fee: 30% of projects overall profit 3 Construction Management Earn Construction management fees from third-party projects and bring construction works in-house 2 Signed third party deals 3 City Radisson Tsinandali Inhouse projects Melikishvili Ave mixed-use (Hotel and Residential) Hotel on Gergeti St. Hotel in Telavi Hotel in Gudauri Track record contributing to m² strengths and opportunities m² Brand name: 92% customer brand awareness among real estate developers in Georgia m² pricing power: Extensive development expertise to increase efficiency in planning and design stages and drive revenues as well as margins; m² sales: m² pre-sales power reduces equity needed to finance the projects; Top three banks in Georgia provide mortgages under m² completion guarantee; m² execution: m² manages process from feasibility through apartment handover and property management; m² completed all projects on time and on budget; m² accessibility to financing: m² has the ability to raise financing, both in terms of securing mortgage lending to clients from the local banks and in terms of standby facilities for liquidity support in case of slowdown in sales; 2. Total Assets are US$ 175mln. Pie charts do not sum-up to 100% due to Cash holdings of US$ 45min 3. Including 3,300 apartments of Digomi project GEORGIA CAPITAL Page 30#31Targeting to spin-off yielding properties as a listed REIT managed by m² Hospitality & Commercial real estate - Market of US$ 6.8bln¹ GEORGIA CAPITAL 1 Rent-earning assets Grow Portfolio of rent-earning assets through residential developments/opportunistic acquisitions 10.3% Yield 90% Occupancy 2 Hotels Develop hotels with combined room-count of 1,000 keys in three years 152 Operational Rooms 3-star Ramada Encore Kazbegi in Tbilisi, opened in Feb'18 Portfolio composition As a property manager, m2 makes opportunistic investments and manages a well diversified portfolio of yielding assets: m2 retains commercial space (ground floor) at its own residential developments, constituting up to 30% of total yielding portfolio m² acquired opportunistically the commercial space, constituting over 70% of total yielding portfolio 225 Rooms under construction 4-star Ramada Melikishvili in Tbilisi: 125 rooms and Lifestyle hotel on Gergeti St. in Tbilisi: 100 rooms 385 Rooms under design Ramada Encore in Kutaisi: 121 rooms; Hotel in Telavi: 130 rooms, Gudauri: 134 rooms Only c.240 rooms left to reach the target Asset base at 31 March 2018 Asset base at 31 March 2018 Includes: US$ 30 million 2 Includes: US$ 20 million 2 1. High street retail 17% of m2's total assets 1. Hotels (mixed use) 11% of m²'s 2. Industrial total assets 2. Land bank properties: warehouses and logistics centers 3. Offices 1. Gross tourism inflows (US$ 2.8bln) and retail trade volume(US$ 4.0bln) in 2017 2. Total Assets are US$ 175mln. Pie charts do not sum-up to 100% due to Cash holdings of US$ 45min Page 31#32m² housing development business performance highlights Strong sales performance 1Q18 apartments sales track record 2 217 35 2 6 5 3 164 Inventory Tamarashvili Kartozia Skyline at 31-Dec-17 13 Street Kazbegi Street II ave. 50 Chavch. Melikishvili Inventory Ave. at 31-Mar-18 # of apartments 94% of apartments are sold-out 1800 1,691 1600 1400 1,202 1200 153 1000 800 1,680 600 1,049 400 200 0 Completed Projects * 4 are currently leased out On-going Projects Sold In Stock Apartment sales track record in completed projects US$ millions # of apartments 143 sold Revenue and sales from residential segment 165 53 GEORGIA CAPITAL Skyline 4.6 0.8 5.3 Moscow avenue Tamarashvili Street II 1.6 7.9 3.5 11.4 16.0 14.5 14.0 17.5 4.7 23.8 12.0 11.9 10.1 Nutsubidze Street 2.2 12.4 1.6 16.2 10.0 7.7 8.0 Kazbegi Street 11.5 12.4 2.8 26.6 6.0 11.2 Tamarashvili street 42.4 3.1 45.5 4.0 7.1 2.0 Chubinashvili street 7.8 1.0 8.8 5 Pre-Sale 10 15 20 25 30 35 40 45 50 Construction phase Post-construction phase Q1'17 Q4'17 Revenue from appartments sales, US$ mln Q1'18 Sales, US$ min Page 32#33m² - affordable housing track record Operating/Financial data for completed and on-going projects at 31 March 2018 Number of # Project name Number of apartments apartments sold Number of apartments sold as % of total Number of apartments available for sale Start date (construction) Actual/ Planned Completion date (construction) Construction progress Total Sales (US$ min) Recognised as revenue (US$ mln) Deferred revenue (US$ mln) Deferred GEORGIA CAPITAL revenue expected to be Land value Realised & recognised as unlocked (US$) Expected IRR revenue in 2018 Completed projects 1,691 1,680 99.3% 11 145.5 145.4 19.5 1 Chubinashvili Street 123 123 100.0% Sep-10 Aug-12 100% 9.9 9.9 0.9 47% 2 Tamarashvili Street 525 525 100.0% May-12 Jun-14 100% 48.9 48.9 5.4 46% 3 Kazbegi Street 295 295 100.0% Dec-13 Feb-16 100% 27.2 27.2 3.6 165% 4 Nutsubidze Street 221 221 100.0% Dec-13 Sep-15 100% 17.4 17.4 2.2 58% 5 Tamarashvili Street II 270 266 98.5% 4 Jul-14 Jun-16 100% 24.3 24.3 2.7 71% 6 Moscow Avenue 238 238 100.0% Sep-14 Jun-16 100% 12.3 12.3 1.6 31% 7 Skyline 19 12 63.2% 7 Dec-15 Dec-17 100% 5.4. 5.4 3.1 329% On-going projects 1,202 1,049 87.3% 153 84.6 62.3 22.3 21.9 14.2 8 Kartozia Street 801 738 92.1% 63 Nov-15 Oct-18 84% 51.9 41 10.9 10.9 5.8 60% 9 Kazbegi Street II 303 223 73.6% 80 Jun-16 Nov-18 52% 19.5 12.5 7 7 4.3 51% 10 50 Chavchavadze Ave. 82 74 90.2% 8 Oct-16 Oct-18 84% 9.7 7.3 2.4 2.4 3.3 75% = 11 Melikishvili ave. 16 14 87.5% 2 Sep-17 May-19 11% 3.5 1.5 2 1.6 0.8 101% Total 2,893 2,729 94.3% 164 230.1 207.7 22.3 22 33.7 Page 33#3412.4 11.1 93% 96% 90% 90% 90% 83% 86% 82% 81% 69% m² housing development business - market opportunity Average household size and home ownership | 2016 Source: Eurostat, Colliers International GEORGIA CAPITAL # of housing units developed by time periods Source: Colliers International 3.3 2.8 2.7 2.7 2.6 2.4 2.3 2.3 2.2 2.1 33 35 Georgia Croatia Slovakia Poland Romania Bulgaria Hungary EU Estonia Lithuania Average Household Size Home Ownership 2016 <1941 1941-1960 1961-1980 2014 2015 2016 2017 Old flats New flats Houses Thousands Georgia has one of the highest average household size of 3.3 people. This number has dropped from 3.8 in 2015 and further decrease in this number will increase the demand Around 120,000 (35%) of housing units in Tbilisi were built more than 40 years ago and are out of their usable lifecycle 10.6 11.7 Number of sales transactions by unit types Source: Colliers International Mortgage loans as a % of GDP 2017 Source: IMF, Central banks 12 66 58 55 1.0 15.3 Thousands 1.1 6.2 12 0.9 11.6 49 45 43 43 41 36 35 33 31 30 28 25 22 6.7 Netherlands Cyprus Luxemburg Portugal Spain France Finland Malta Germany Belgium Greece Compared to peers, Georgia has one of the lowest Mortgage Loan as a % of GDP ratio. Implying that there is a room for increase on the total value of outstanding mortgage loans. Page 34 Estonia Slovakia Austria Irland Italy Lithuania Latvia 123 57 4 1981-1990 1991-2001 2002-2012 17 16 Slovenia Georgia 88 29 21 2013-2015 2016-2018E#35US$ thousands m² hospitality & commercial real estate business performance highlights GEORGIA CAPITAL US$ millions Yielding portfolio growth 30 30 63.7% 18 16 16 6 14 14 12 31-Dec-16 31-Dec-17 31-Mar-18 Property Cost ■Revaluation Gross profit from operating leases Strong Performance US$ millions Yielding portfolio composition 30 30 1 18 15 15 15 14 14 31-Dec-16 31-Dec-17 31-Mar-18 Under construction Leased out Vacant Key performance metrics of yielding business 8.9% 345 323 316 9.7% 10.3% 93% 90% 87% 1Q17 4Q17 1Q18 1Q17 4Q17 1Q18 occupancy rate yield Page 35#36m² hospitality & commercial real estate business - market opportunity Arrivals of tourists and tourism revenue | Georgia Source: Georgian National Tourism Administration 2.1 1.8 1.3 1.1 3.5 2.7 22 2.2 2.3 2.8 12.2 1.9 Source: STR Key performance metrics of hotels | Tbilisi 145144136132 100 94 92 95 0.7 69 65 68 72 0.5 0.6 0.4 GEORGIA CAPITAL Arrivals at airports (min) | Georgia Source: Georgian Civil Aviation Agency CAGR 24% 2.8 2.3 1.8 2.0 45 1.4 34 33 36 1.2 0.9 4.1 2010 2011 2012 2013 2014 2015 2016 2017 20173M 20183M Occupancy Rate (%) ADR(US$) Arrivals of tourists (min) Tourism revenue(US$ bln) Hotel Room Supply | Tbilisi RevPar(US$) Revenue(US$min) 2010 2011 2012 2013 2014 2015 2016 2017 2014 2015 2016 2017 Modern office stock supply(GLA'000) | Tbilisi Source: Colliers International # of hotel 3,591 5,967 rooms 7,331 Source: Colliers International 7,875 12,610 211 196 176 154 38% 40% 143 134 131 53% 57% 56% 111 21% 35% 25% 22% 22% 18% 17% 16% 13% 14% 21% 10% 6% 8% 7% 2014 2015 2016 2017 2020F 2012 2013 2014 2015 2016 2017 2018F 2019F International upscale brands International midscale brands Local upscale & middle class Local budget/economy class Page 36#37Content 1. 1Q18 results discussion | Georgia Capital 2. Investment strategy & portfolio overview 3. 4. 1Q18 results discussion | Investment portfolio GGU Georgia Global Utilities Georgian Macro Overview 5. Appendices GEORGIA CAPITAL Page 37#38GGU Financial highlights Income statement GEORGIA CAPITAL Utility Energy¹ Eliminations Consolidated Change GEL thousands, unless otherwise noted Change 1Q18 1Q17 4Q17 1Q18 1Q17 y-o-y q-o-q Change y-o-y 4Q17 Change 9-0-q Change 1Q18 1Q17 4Q17 1Q18 1Q17 4Q17 y-o-y Change q-o-q Revenue from water supply to legal 19,088 18.336 4.1% 22,215 (14.1%) 19,088 18,336 4.1% 22,215 (14.1%) entities Revenue from water supply to 9,769 7,911 23.5% 8,529 14.5% 9,769 7,911 23.5% 8,529 14.5% individuals Revenue from electric power sales 3,055 2,148 42.2% 3,892 (21.5%) (900) (957) (1,019) 2,155 1,191 80.9% 2,873 (25.0%) Other income 1,325 1,160 14.2% 2,278 (41.8%) 4 4 5 (20.0%) 1,329 1,164 14.2% Revenue 30,182 27,407 10.1% 33,022 (8.6%) 3,059 2,152 42.1% 3,897 (21.5%) (900) (957) (1,019) 32,341 28,602 13.1% 2,283 35,900 (9.9%) (41.8%) Salaries and benefits (4,790) (3,950) 21.3% (5,155) (7.1%) (346) (307) 12.7% (231) 49.8% (5,136) (4,257) 20.6% (5,386) (4.6%) Electricity and transmission costs (5,722) (5,913) (3.2%) (5,311) 7.7% (25) (16) 56.3% (27) (7.4%) 900 957 1,019 Assets maintenance expenses (1,250) (1,066) General and administrative expenses (2,519) (2,257) 17.3% (1,693) 11.6% (3,229) (26.2%) (18) (26) (30.8%) (20) (10.0%) (4,847) (4,972) (1,268) (1,092) (2.5%) (4,319) 12.2% 16.1% (1,713) (26.0%) (22.0%) (649) (419) 54.9% (558) 16.3% (3,168) (2,676) 18.4% (3,787) (16.3%) Other operating expenses (1,630) (1,359) 19.9% Operating expenses (15,911) (14,545) 9.4% (1,560) (16,948) 4.5% (6.1%) (288) (86) NMF (483) (40.4%) (1,326) (854) 55.3% (1,319) 0.5% 900 957 1,019 (1,918) (16,337) (1,445) 32.7% (14,442) 13.1% (2,043) (17,248) (6.1%) 5.3% Provisions for doubtful trade (1,449) 274 NMF 338 NMF (1,449) 274 NMF 338 NMF receivables EBITDA 12,822 EBITDA Margin 42% Depreciation and amortisation (5,233) 13,136 48% (4,135) (2.4%) EBIT 7,589 9,001 26.6% (15.7%) 16,412 50% (4,469) (21.9%) 1,733 1,298 33.5% 2,578 (32.8%) 14,555 57% 60% 66% 0% 0% 0% 17.1% (884) (686) 28.9% (760) 16.3% 45% (6,117) 14,434 50% 0.8% 18,990 53% (23.4%) (4,821) 26.9% (5,229) 17.0% 11,943 (36.5%) 849 612 38.7% 1,818 (53.3%) 8,438 9,613 (12.2%) 13,761 (38.7%) EBIT Margin 25% Net interest expense (3,104) 33% (2,036) 36% 28% 28% 47% 26% 34% 38% 52.5% (2,975) 4.3% (192) (230) (16.5%) (743) (74.2%) (3,296) (2,266) 45.5% (3,718) (11.4%) Net non-recurring expenses (383) NMF (124) NMF (196) (36.7%) (124) NMF (579) (78.6%) Foreign exchange (loss)gain 1,786 (104) NMF (271) NMF (26) (224) (88.4%) (115) (77.4%) 1,760 (328) NMF (386) NMF Profit before income tax 6,271 6,861 (8.6%) Income tax expense Profit 6,271 6,861 (8.6%) 8,314 (210) 8,104 (24.6%) 507 158 NMF 764 (33.6%) 6,778 7,019 (3.4%) 9,078 (25.3%) NMF (210) NMF (22.6%) 507 158 NMF 764 (33.6%) 6,778 7,019 (3.4%) 8,868 (23.6%) Attributable to: -Shareholders of the Group 6,271 6,861 (8.6%) 8,104 (22.6%) 693 316 -Non-controlling interests (186) (158) 119.3% 17.7% 381 383 81.9% NMF 6,964 7,177 (3.0%) (186) (158) 17.7% 8,485 383 (17.9%) NMF ¹Prior to 2017, GGU's standalone results excluded the Group's renewable energy business results due to its absence from GGU's legal structure and insignificant size. Effective from 2017, we are reporting GGU results on a pro-forma basis together with renewable energy business and have retrospectively revised the comparable information accordingly. The Group owns 65% of renewable energy business Page 38#39GGU Financial highlights Balance sheet Utility Energy GEL thousands, unless otherwise noted Mar-18 Mar-17 change Dec-17 y-o-y change q-o-q Mar-18 Mar-17 change y-o-y Dec-17 change q-o-q Mar-18 Mar-17 change y-o-y Consolidated Dec-17 Change q-o-q Cash and cash equivalents Trade and other receivables Prepayments and other assets Total current assets Property, plant and equipment Investment Property Intangible assets Other non-current assets Total non-current assets Total assets 431,895 955 36,120 2,867 NMF 55,950 (35%) 18,670 21,927 (15%) 22,442 (17%) 6,235 11,397 (45%) 6,887 61,026 36,191 69% 85,279 307,312 41% 399,990 9,385 18,453 (49%) 10,817 1,643 15,730 5,028 (9%) (28%) 8% (13%) 7,873 13,909 623 265 7,410 1,461 15,905 15,635 94,447 469 42,655 89,519 (43%) 14,311 (45%) NMF 1,312 (53%) NMF 8,659. (14%) 2% 24,282 (34%) NMF 6% 469 0% 469 0% 72% 1,847 (11%) 316 404 (22%) 375 (16%) NMF 18,909 (17%) 38,668 14,214 NMF 32,999. 17% 458,653 331,747 519,678 367,938 38% 431,562 41% 516,841 6% 1% 133,900 57,743 149,806 73,378 NMF 123,363 104% 147,645 9% 1% 43,993 16,776 19,293 22,192 13,645 12,858 76,931 51,826 526,342 349,967 9,854 18,922 1,959 1,359 54,398 19,242 592,553 389,490 669,484 441,316 NMF 70,261 (37%) (13%) 23,754 (19%) 6% 15,546 (12%) 48% 109,561 (30%) 50% 489,509 (48%) 11,286 44% 2,222 8% (13%) (12%) NMF 51,908 5% 52% 554,925 7% 52% 664,486 1% Current borrowings 5,366 21,990 Trade and other payables 31,029 27,323 (76%) 1,277 14% 32,358 NMF (4%) Provisions for liabilities and charges 554 Other taxes payable 886 Total current liabilities Long term borrowings Deferred income Total non-current liabilities Total liabilities 743 (26%) 2,609 (66%) 92 37,835 52,664 (28%) 34,143 236,952 73,142 NMF 239,083 19,955 17,817 12% 19,474 256,906 90,959 NMF 258,557 294,741 143,623 105% 292,700 416 33% NMF 11% (1%) 508 576 1,612 1,068 3,022 365 127 5,507 1,772 74,568 18,392 (12%) 2,555 51% 1,260 NMF 2,686 NMF 299 NMF 6,800 NMF 69,290 2% 1,184 NMF 1,279 (1%) 75,753 18,392 NMF 70,569 1% 81,260 20,164 NMF 77,369 (80%) 5,874 22,566 28% 32,641 28,391 13% 3,576 22% 1,251 (19%) 43,342 54,436 8% 311,520 91,534 (7%) 21,139 17,817 7% 332,659 109,351 5% 376,001 163,787 (74%) 3,832 53% 15% 33,618 (3%) 743 2,736 NMF (54%) (20%) 40,943 3,102 15% 391 NMF 6% NMF 308,373 1% 19% 20,753 2% NMF 329,126 1% NMF 370,069 2% Total equity attributable to shareholders of the Group 224,958 224,314 Non-controlling interest 0% 224,161 (100%) Total equity Total liabilities and equity 224,957 224,316 519,678 367,938 0% 224,161 41% 516,841 0% NMF 0% 1% 60,001 50,793 8,524 2,422 68,526 53,213 149,806 73,378 18% 60,130 NMF 10,126 29% 70,256 104% 147,645 0% (16%) (2%) 1% 284,959 275,107 8,524 2,422 293,483 277,529 669,484 441,316 4% 284,291 NMF 10,126 6% 294,417 52% 664,486 0% (16%) 0% 1% GEORGIA CAPITAL Page 39#40GGU Financial highlights GEL thousands, unless otherwise noted Cash received from customers Cash paid to suppliers Cash paid to employees Interest received Interest paid Taxes paid Cash flow Change Change 1Q18 1Q17 y-o-y 4Q17 q-o-q 35,743 30,582 16.9% 44,768 (20.2%) (11,966) (11,330) 5.6% (11,387) 5.1% (3,591) 180 (3,859) (6.9%) (3,265) 10.0% 419 (57.0%) 800 (77.5%) (861) (2,356) (63.5%) (4,486) (80.8%) (1,743) Restricted cash in Bank (1,757) 945 (0.8%) 2,256 (177.3%) (100.0%) (1,362) (100.0%) Cash flow from operating activities 17,762 12,644 40.5% 27,324 (35.0%) Maintenance capex (6,958) (8,832) (21.2%) (3,068) 126.8% Operating cash flow after maintenance capex 10,804 3,812 183.6% 24,256 (55.5%) Purchase of PPE and intangible assets (47,628) (15,337) NMF (86,947) (45.2%) Proceeds from PPE and investment property sale 1,100 Restricted cash in Bank. 2,567 Total cash used in investing activities (43,961) (12,249) (27,586) (121.0%) 59.4% 5,876 (56.3%) (81,071) (45.8%) Proceeds from borrowings 11,697 12,412 Repayment of borrowings (2,744) (4,328) Contributions under share-based payment plan Dividends paid Capital increase Total cash flow from financing activities 8,953 780 8,864 (5.8%) (36.6%) 0.0% 0.0% (100.0%) 1.0% 226,572 (94.8%) (107,616) (97.5%) (2,596) (100.0%) (28,244) (100.0%) 2,653 (100.0%) 90,769 (90.1%) Effect of exchange rates changes on cash (2,064) Total cash (outflow)/inflow (26,268) (693) (15,603) 197.8% 68.4% 5,650 39,604 (136.5%) (166.3%) Cash balance Cash, beginning balance Cash, ending balance 70,261 43,993 32,379 16,776 117.0% 162.2% 30,657 70,261 129.2% (37.4%) GEORGIA CAPITAL Page 40#41GGU - water utility and energy business overview Utility At a glance Key facts GWP Tbilisi Water Energy Operating HPPS Zhinvali HPP (130.0MW) Rustavi Water Mtskheta Water Gardabani WWTP1 Tetrikhevi HPP (12.0MW) Saguramo HPP (4.4MW) Pshavela HPP² (2.9MW) Committed projects GEORGIA CAPITAL Population coverage: c.1.4m EBITDA 1Q18: GEL 12.8m Dividend distribution in 2017: GEL 28m New WSS tariffs set by GNERC for a 3-year regulatory period. Tariffs in Tbilisi have increased by 23.8% for residential customers and decreased by 0.4% for legal entities, serving as a first step towards gradually unifying WSS tariffs Long-term financing obtained from international financial institutions (EIB, FMO, DEG), total committed amount of up to EUR 81.5min through GWP in 3Q17 to finance capital expenditures increasing efficiency GWP, a wholly owned subsidiary of GGU which operates the water utility business in Tbilisi, had its credit rating of BB- reaffirmed with stable outlook by Fitch in February 2018. Bodorna HPP Mestiachala HPP Zoti HPP (2.5MW) (50MW) under construction under construction EBITDA 1Q18: GEL 1.7m Total capacity: 149.3MW (46MW) under development Investing in additional capacity for electricity generation with the goal to establish a renewable energy platform Cheap to develop Up to US$1.5min for 1MW hydro and up to US$1.3min for wind development in Georgia Strategic partnership with RP Global (Austria) - Independent Power Producer with 30 years experience of developing, building, owning and operating renewable power plants globally Notes: 1. WWTP stands for wastewater treatment plant 2. Under operating lease Page 41#42GEL millions GEL millions GGU - water utility and energy business performance highlights EBITDA Margin 50% EBITDA 53% 45% 19 14 3 15 1 2 16 13 13 1Q17 4Q17 1Q18 EBITDA Utility EBITDA Energy Capex evolution 2017-2021E 501 429 275 213 465 114 81 119 138 66 109 23 2017 2018E 2019E 2020E Maintenance capex ■Development capex Utility 1Capex figures are presented including VAT Strong performance Capex GEL millions 29* 2 Revenue composition 36* 32* 4 3 33 30 27 1Q17 4Q17 1Q18 "Includes eliminations ■Revenue Utility Revenue Energy 402 2018E Capex breakdown New customer connections, 2% Facilities and equipment, 8% Existing HPPS, Other, 4% 3% Metering, 4% New HPPS, 47% 5 22 2021E Development capex Energy Water and wastewater network, 33% Page 42 GEORGIA CAPITAL#43Georgian electricity market overview Electricity supply and consumption, 2017 GWh 1,500 1,000 500 Source: ESCO GWh 23,000 18,000 Actual and forecasted consumption GEORGIA CAPITAL Consumption, 5% 6.1 TWh 2030 2029 2028 2027 2026 2025 2024 2023 Consumption, +5% 2022 2021 2020 2019 2018 2017 2016 Generation, forecast 2015 13,000 CAGR: 5.4% 8,000 3,000 Jan. Feb. Mar Apr May Jun Jul Aug Sep Oct Nov Dec Generation, renewables Net imports Generation, TPPS Internal consumption 2014 2013 2012 2011 2010 2009 Generation, actual Electricity deficit during Sep-Apr 8-month PPA policy in place 18.8% of total consumption produced by gas-fired TPPS, 12.6% - imported (2017 data) Distribution of windfarms annual generation¹ 8% growth of internal consumption in 2017 (10% and 14% growth in Jul & Aug) Consumption growth forecasted at minimum 5% CAGR in coming 15 years Anticipated deficit of 6.1TWh by 2030 Import-export dynamics GWh 1,600 1,200 9% 9% 8% 8% 9% 7% 7% 7% 9% 10% 9% 9% 800 484 450 400 % of annual output, WPPS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1,497 793 699 660 686 559 545 479 2013 2014 2015 2016 2017 Import Export Compared to HPPS, wind power plants (WPPS) have more even distribution throughout the year, adding more portion of output to domestic supply deficit Merchant risk is c. 30% in May-Aug, as opposed to 48% on average in run-of-river HPPS Note 1: Based on preliminary measurement of GGU windfarm locations Import's share in domestic consumption has tripled in 2017 compared to 2016, as the yoy growth in consumption was entirely supplied for by imports Page 43#44Coverage by population Georgian utility market overview Largely privatized utility sector with high barriers to entry ■ Utilities sector represents ~3% of total economic output in Georgia and is constantly growing at a sustainable rate (CAGR 8.3% in 2006 - 2016) Bulk of sector players are natural monopolies and the barriers to entry are high Large part of the industry is privatized, except for the fraction of WSS utilities and irrigation Reforms are in progress in utilities sector to approximate the sector with EU energy regulations in accordance to Georgia's undertaking under the Association Agreement with the EU ■ Georgian National Energy and Water Supply Regulatory Commission (GNERC) is an independent body that regulates the utilities market ■ GNERC is independent from the Government of Georgia and has no direct supervision from any state authorities and its independence is guaranteed by a legally mandated, self-sufficient revenue stream from the regulation fees paid by utility market participants (0.3% of the utility revenues) The sector is regulated by the set of laws, by-laws and government decrees on tariff setting, utilities (water, electricity, natural gas) market rules, grid / network codes, legislation on licensing, resource extraction and environmental accountability GGU - only profitable player on Georgia's WSS market 63.4% 70.1% ■ 36.6% Water ■GGU - State Electricity (privatized) GEORGIA CAPITAL 29.9% ■ Telasi (Tbilisi) ■ Energo-Pro (regions) 7.0% 29.9% Natural Gas (privatized) KazTransGas (Tbilisi) ■ Socar Group ■ Other Largely depreciated water and sanitation infrastructure with average water losses at c. 70% (4-5 times higher than in western Europe) Average collection rates from households in Georgia - c. 50% GGU's average collection rates - around 96% Water utilities other than GGU heavily subsidized by state 63.1% c. 47% of the population serviced on the municipal level with bad service quality, frequent interruptions and poor coverage Page 44#45GGU: A privately-owned natural monopoly Current standing Business strategy Medium term goal 1 Utility REVENUE 1Q18: GEL 30.2m EBITDA 1Q18: GEL 12.8m EBITDA 2021: GEL 75mln+ Dividend provider Targeting 2 Energy REVENUE 1Q18: GEL 3.1m EBITDA 1Q18: GEL 1.7m 149.3MW existing capacity EBITDA 2021: GEL 120mln+ Value creation upside Projects going forward and forecasted EBITDA Operational 149.3 MW 2018 201.8 MW 130 MW HPP (Zhinvali) MT target c.500 MW LT target c.1,000 MW 50 MW HPP (Svaneti Hydro) 12.0 MW HPP (Tetrikhevi) Project cost - USD 62m Completion: end of 2018. 4.4 MW HPP (Saguramo) 2.9 MW HPP (Pshavela) 2.5 MW HPP (Bodorna HPP) Project cost USD 3.6m Completion: September, 2018 46 MW HPP (Zoti Hydro) Project cost- USD 58m Completion: end of 2020 200 MW Wind Project cost-USD 240m Completion: end of 2021 c.55 MW renewables pipeline Hydro / Wind/Solar/TPP Additional 500 MW GEL millions IPO in 2020-2021 300 CAGR 17A-21E +29.2% 90% 250 66% 75% 59% 59% 200 55% 197 60% 52% 150 45% 116 122 120 100 87 71 46 47 30% 17 50 15% 62 70 70 75 77 0% 2017A 2018E 2019E 2020E 2021E EBITDA Energy EBITDA Margin EBITDA Utility Cost saving from reduction in electricity own consumption Subsequent savings from freed-up energy Page 45 GEORGIA CAPITAL#46Agenda 1. 1Q18 results discussion | Georgia Capital 2. Investment strategy & portfolio overview 3. 1Q18 results discussion | Portfolio companies Aldagi - P&C insurance 4. Georgian Macro Overview 5. Appendices GEORGIA CAPITAL Page 46#47Aldagi financial highlights Income Statement Change Change GEL thousands, unless otherwise noted Gross premiums written Earned premiums, gross Earned premiums, net 1Q18 1Q17 4Q17 y-o-y q-o-q 18,114 18,907 (4.2%) 17,962 0.8% 19,950 18,520 7.7% 21,891 (8.9%) 14,925 14,436 3.4% 16,578 (10.0%) Insurance claims expenses, gross (7,520) (10,700) (29.7%) (13,452) (44.1%) Insurance claims expenses, net (6,092) (5,637) 8.1% (7,207) (15.5%) Acquisition costs, net (1,413) (1,677) (15.7%) (2,662) (46.9%) Net underwriting profit 7,420 7,122 4.2% 6,709 10.6% Investment income 831 767 8.3% 814 2.1% Net Fee and commission income 145 99 46.5% 142 2.1% Net investment profit 976 866 12.7% 956 2.1% Salaries and employee benefits (2,129) (1,978) 7.6% (2,258) (5.7%) Selling, general and administrative expenses (928) (893) 3.9% (830) 11.8% Depreciation & Amortisation (232) (234) (0.9%) (135) 71.9% Impairment charges (208) (242) (14.0%) (82) 153.7% Net other operating income 199 172 15.7% 163 22.1% Operating profit Foreign exchange (loss)/gain Pre-tax profit Income tax expense Net profit 5,098 4,813 5.9% 4,523 12.7% (503) (425) 18.4% 452 NMF 4,595 4,388 4.7% 4,975 (7.6%) (693) (638) 8.6% (806) (14.0%) 3,902 3,750 4.1% 4,169 (6.4%) GEORGIA CAPITAL Page 47#48Aldagi financial highlights GEL thousands, unless otherwise noted Cash and cash equivalents Balance Sheet Mar-18 Change Change Mar-17 Dec-17 у-о-у q-o-q 2,071 6,143 (66.3%) 4,186 (50.5%) Amounts due from credit institutions Investment securities 29,273 27,450 6.6% 25,968 12.7% 4,423 2,562 72.6% 4,180 5.8% Insurance premiums receivable, net 26,184 21,812 20.0% 28,491 (8.1%) Ceded share of technical provisions 17,881 14,998 19.2% 20,671 (13.5%) PPE and intangible assets, net 7,985 10,015 (20.3%) 11,899 (32.9%) Goodwill Deferred acquisition costs Pension fund assets Other assets Total assets 13,051 13,051 13,051 2,750 1,658 65.9% 3,047 (9.7%) 18,838 16,721 12.7% 18,536 1.6% 9,529 4,926 93.4% 5,130 85.9% 131,985 119,336 10.6% 135,159 (2.3%) Gross technical provisions 46,174 43,607 Other insurance liabilities 9,691 8,640 5.9% 12.2% 50,272 (8.2%) 11,147 (13.1%) Current income tax liabilities 483 591 (18.3%) 30 NMF Pension benefit obligations 18,836 16,721 12.6% 18,536 1.6% Derivative financial instruments 562 NMF 130 NMF Other Liabilities 4,152 6,018 Total liabilities 79,336 76,139 (31.0%) 4.2% 6,296 (34.1%) 86,411 (8.2%) Total equity 52,649 43,197 Total liabilities and equity 131,985 119,336 21.9% 10.6% 48,748 135,159 8.0% (2.3%) GEORGIA CAPITAL Page 48#49Aldagi financial highlights Cash flow Change Change 1Q18 1Q17 y-o-y 4Q17 q-o-q GEL thousands, unless otherwise noted Cash flows from operating activities Insurance premium received Reinsurance premium paid Insurance benefits and claims paid Reinsurance claims received Acquisition costs paid 17,000 15,558 9.3% (3,639) (2,685) 35.5% 21,107 (2,952) (19.5%) 23.3% (8,813) (8,477) 4.0% (11,910) (26.0%) 3,509 5,113 (31.4%) 1,616 117.1% (1,209) (1,367) (11.5%) (2,326) Salaries and benefits paid (4,992) (1,882) 165.2% (2,253) (48.0%) 121.6% Interest received 625 1,048 (40.3%) 158 NMF Net other operating exepnses paid (578) (911) (36.7%) (952) (39.6%) Net cash flows from operating activities before income tax 1,903 6,397 (70.2%) 2,488 (23.4%) Income tax paid (1,230) (100.0%) (652) (100.0%) Net cash flows from operating activities 1,904 5,167 (63.2%) 1,835 3.8% Cash flows from (used in) investing activities Purchase of property and equipment (216) (104) 108.8% (1,387) Purchase of intangible assets (228) (19) Proceeds from (Placement of) bank deposits (2,218) NMF (100.0%) (50) (84.4%) NMF (890) (100.0%) Purchase of available-for-sale assets/ Deposits (3,449) (831) Net cash flows from used in investing activities (3,893) (3,172) NMF 22.7% 505 NMF (1,822) 113.7% Cash flows from financing activities Net cash flows from financing activities Effect of exchange rates changes (124) (201) (38.5%) (29) NMF Net increase/(decrease) in cash and cash equivalents (2,114) 1,794 NMF (15) NMF Cash and cash equivalents, beginning 4,185 4,349 (3.8%) 4,201 (0.4%) Cash and cash equivalents, ending 2,071 6,143 (66.3%) 4,186 (50.5%) GEORGIA CAPITAL Page 49#50P&C insurance market overview Market & Aldagi Revenue Market Share (earned premium, gross) 38% Market Aldagi Market share 227 CAGR 2010-2017 202 Market - 11% Aldagi - 17% 179 142 122 115 106 100 37% 38% 37% 37% 38% 35% 32% 10% 9% 27% 8% 5% 6% 3% Market PL & Combined Ratio YE17 GEORGIA CAPITAL VIG Total Market Profit GEL 19.5 mln 16.5* 21% 96% 99% 91% 90% 92% 74% 116% 108% Market CR 96% 6.7 2.2 1.4 1.1 (0.0) (7.9) (0.5) 29 32 42 46 52 67 71 86 Aldagi GPIH Unison TBC Insurance Irao Ardi IC Group Other 2010 2011 2012 2013 2014 2015 2016 2017 Other IC Group Ardi Irao TBC Unison GPIH Insurance Aldagi Market Composition by product lines UK Switzerland France Insurance Density 4,064 Belgium Germany 10.2% 9.2% 8.9% Insurance Penetration & Density 6.4% 6.1% 6,934 Density $20 4.9% 2.8% 2.1% 3,395 1.3% 1.5% 1.2% 2,613 2,548 1,036 351 155 144 135 40 Slovenia Poland Bulgaria Insurance penetration Turkey Russia Georgia Georgia P&C Penetration 0.6% Property, 27% Agro, 5% Other, 9% Motor, 33% Liability, 13% Credit Life, 13% < Highlights 17 insurance companies operating in Georgia Aldagi is undisputed leader in P&C market Aldagi had 205% solvency ratio** as of 31.03.201 Outperforming market growth by 6% (2010-2017) Aldagi has best combined ratio in the market Aldagi's share in total market profit 84% Source: Insurance State Supervision Service of Georgia, Swiss Re Institute * IFRS profit slightly differs from ISSSG reported profit due to differences in accounting policies per regulatory requirements ** Solvency ratio - regulatory capital divided by required solvency capital (greater of 18% of premium written and 26% of claims paid) Page 50#51Aldagi - P&C insurance business performance highlights Profit (GEL '000) Earned Premium, gross (GEL '000) Earned Premium, gross | Composition +7.7% y-o-y GEL 20 mln 21,891 18,520 19,950 8,478 6,921 8,027 40% Government, 2% Other, 12% Credit Life, 13% Motor, 37% Liability, 12% Retail, 40% 11,599 13,413 11,924 60% Corporate, 58% 1Q17 4Q17 1Q18 Property, 26% Corporate Retail Total Combined Ratio ROAE flat y-o-y 73% -6ppt y-o-y 31% 78% 73% 72% 37% 35% 31% 1Q17 4Q17 1Q18 35% 34% 32% 39% 43% 41% 1Q17 4Q17 1Q18 ■Loss Ratio Expense Ratio Combined Ratio Stable dividend payout within 40% -60% range GEORGIA CAPITAL +4.1% y-o-y GEL 3.9mln 3,750 4,169 3,902 1,283 1,955 1,982 51% 2,467 2,214 1,920 49% 1Q17 4Q17 1Q18 Corporate Retail Total 1Q18 Retail segment growth (premiums earned) Retail Segment Concentration in portfolio Retail profit growth 16% 40% (+3ppt y-o-y) 54% Market Share 38% (+3ppt y-o-y) Corporate 81% Renewal Ratio Retail 57% Page 51#52Aldagi - P&C insurance business overview Key Segments Motor Motor own damage, motor third party liability insurance 40% Market size (2017) Aldagi market share (by earned premium gross) # of Clients GEL 74mln Corporate-1,180 Retail -22,062 Well-diversified business model Property CAR (2), Commercial property, Household Property, Machinery breakdowns insurance GEL 73mln 39% Corporate-954 Retail 21,857 Credit life Loan-linked life insurance GEL 29mln 30% Retail 3 channels Liability Financial risk, employer's liability, professional indemnity, GTPL(3), FFL(4), Household GTPL, Product liability insurance GEL 29mln 43% Corporate - 710 Retail - 540 Other Cargo, CPM(5), Livestock, BBB(6) D&O), Agro insurance GEL 21mln 28% Corporate-233 Retail 13,165 Financials 1Q18 Underwriting profit, net Earned premiums, gross Net profit GEL 3.9 mln GEL 7.6 mln GEL 19.95 սյա Combined ratio: 72% 2014-2017 CAGR 19% GEL 7.4mln 2014-2017 CAGR 3% 2014-2017 CAGR 2% 19% 0% 7% 10% 2014-2017 CAGR 34% 2014-2017 CAGR 26% 2014-2017 CAGR 52% 43% 57% GEL 5.2mln 81% GEL 2.5mln 2014-2017 CAGR 16% 2014-2017 0% CAGR 27% 48% 52% 50% 50% GEL 1.9mln GEL 1.4mln 2014-2017 7% 2014-2017 CAGR 4% CAGR 19% GEL 1.8mln 2014-2017 CAGR 31% 0% 25% 75% GEL 0.5mln GEL 0.6mln GEL 1.3mln 93% Corporate-84% Retail - 97% Corporate - 88% Retail -56% (1) Sources: Insurance State Supervision Service of Georgia (2) CAR: Contractors' all risks insurance (3) GTPL: General third party liability insurance (4) FFL: Freight Forwarders' liability (5) CPM: Contractor's Plant And Machinery insurance (6) BBB: Bankers blanket bond insurance (7) D&O: Directors and officers liability Insurance Retail - 45% Corporate Retail 100% GEL 2.6mln 93% GEL 2.3mln 8% 2014-2017 CAGR 29% 2014-2017 CAGR 39% 33% 100% GEL 1.3mln 92% GEL 1.1mln 2014-2017 CAGR 41% 12% 2014-2017 CAGR 60% 21% 100% GEL 0.8mln 88% GEL 0.7mln Corporate - 44% Retail -47% 79% Corporate - 43% Retail -28% 90% 67% Page 52 GEORGIA CAPITAL#53Aldagi - P&C insurance business targets & priorities 2017 16.3 MLN GEL ALDAGI PROFIT 2022 Retail 5.8min min GEL 50.0 mln GEL Corporate 10.5min GEL Omin GEL SME Retail Penetration SME | Penetration Zero Corporate | Penetration " " Local MTPL insurance to be introduced in 2019-2020 Develop simple products for mass retail Digitalization of all processes More partnership with financial institutions after demerger Underpenetrated market Developing tailored products Digital portal for SME Good investment climate Stable economical growth Increase in infrastructural projects GEORGIA CAPITAL Page 53#54Content 1. 1Q18 results discussion | Georgia Capital 2. Investment strategy & portfolio overview 3. 4. 1Q18 results discussion | Portfolio companies Teliani - beverage business Georgian Macro Overview GEORGIA CAPITAL Page 54#55Teliani financial highlights Income Statement Change Change GEL thousands; unless otherwise noted 1Q18 1Q17 4Q17 y-o-y q-o-q Wine Business Beer Business Distribution Business Revenue Wine Business Beer Business 4,593 3,446 33.3% 7,164 (35.9%) 4,921 NMF 4,736 3.9% 2,902 2,940 (1.3%) 5,383 (46.1%) 12,416 6,386 94.4% 17,283 (28.2%) (2,228) (1,831) 21.7% (3,328) (33.1%) (3,567) NMF (3,438) 3.8% Distribution Business (2,250) (2,244) 0.3% (4,195) (46.4%) COGS (8,045) (4,075) 97.4% (10,961) (26.6%) Gross Profit 4,371 2,311 89.1% 6,322 (30.9%) Gross Profit Margin 35.2% 36.2% 36.6% Salaries and other employee benefits (2,838) (1,094) 159.4% (2,542) 11.6% Sales and marketing expenses (1,048) (238) NMF (1,497) (30.0%) General and administrative expenses (1,721) (720) 139.0% (1,577) 9.1% Distribution expenses (884) (327) 170.3% (957) (7.6%) Other operating expenses (455) (88) NMF (147) NMF EBITDA (2,575) (156) NMF (398) NMF Of which, wine EBITDA 600 392 53.2% 2,233 (73.1%) Of which, beer EBITDA (3,004) (561) NMF (2,775) 8.3% Of which, distribution EBITDA (171) 15 NMF 144 NMF Net foreign currency gain (loss) 2,174 2,096 3.7% (4,404) NMF Depreciation and amortization (2,547) (360) NMF (2,056) 23.9% Net interest income/expense (1,158) (216) NMF (1,247) (7.1%) Net non-recurring items. 46 NMF (47) NMF (Loss) profit before income tax (4,106) 1,410 NMF (8,152) (49.6%) (Loss) Profit (4,106) 1,410 NMF (8,152) (49.6%) GEORGIA CAPITAL Page 55#56Teliani financial highlights Balance Sheet Change Change GEL thousands unless otherwise noted Cash and cash equivalents Amounts due from financial institutions Trade and other receivables Inventory Mar-18 Mar-17 y-o-y Dec-17 q-o-q 9,055 17,085 (47.0%) 17,455 (48.1%) 3,330 6,742 (50.6%) 4,381 (24.0%) 10,714 5,112 109.6% 12,179 (12.0%) 18,961 11,189 69.5% 17,454 8.6% PPE and intangible assets, net 109,801 81,058 35.5% 104,671 4.9% Goodwill 5,186 2,836 82.9% 2,836 82.9% Prepayments and other assets 5,747 16,355 (64.9%) 4,472 28.5% Total assets 162,794 140,377 16.0% 163,448 (0.4%) Trade and other payables 13,249 15,763 (15.9%) 14,335 (7.6%) Borrowings 66,738 57,588 15.9% 71,430 (6.6%) Short term borrowings 7,134 8,020 (11.0%) 9,948 (28.3%) Long term borrowings 59,604 49,568 20.2% 61,482 (3.1%) Other liabilities 2,710 1,369 98.0% 1,776 52.6% Total liabilities 82,697 74,720 10.7% 87,541 (5.5%) Share capital 5,200 3,688 41.0% 5,200 0.0% Additional paid-in capital 92,877 59,793 55.3% 84,465 10.0% Retained earnings (16,081) 3,829 NMF (11,976) 34.3% Revaluation and other reserves (1,899) (1,653) 14.9% (1,782) 6.6% Total equity 80,097 65,657 22.0% 75,907 5.5% Total liabilities and equity 162,794 140,377 16.0% 163,448 (0.4%) GEORGIA CAPITAL Page 56#57GEORGIA CAPITAL Teliani - Beverage business targets & priorities Goal Become leading beverages producer and distributor in Caucasus Wine business Distribution business Beer production business THE FAMOUS GROUSE Marie Brizard Russian Fed Heineken ՏՈՆՈ BAGRATIONI Black LAVAZZA Sea TORINO, ITALIA. 1895 MEDOFF Poff Batu TELIANI VALLEY MACALLAN SOBIESKI ქამა granini Armenia Turkey stavi Azerbaijan Baku Business Segments Market share 2018 C. 732k bottles sold in 1Q18 GEL 4.59 mln revenue in 1Q18 GEL 600 k EBITDA in 1Q18 76% of sales from export In April 2018, we acquired a 60% indirect controlling interest in Kindzmarauli Marani LLC, a producer of exquisite Georgian wines and spirits, which owns 350 hectares of vineyards. With this acquisition major step was made towards increasing our vineyard base to the targeted 1,000 hectares, from the current 86 hectares, over the next three years Local market-market leader with 35% market share in premium HoReCa and modern trade segment based on bottle wine sales Export sales - c. 9% market share of exported wine from Georgia, excluding Russia C. 5,369 sales points Exporting wine to 14 countries, including all FSU, Poland, Sweden, USA, Canada, China Wine & Sparkling Wine distribution - market leader Other products distribution - second largest distributor on the market Lavazza coffee distribution - market leader in ground coffee and in HoReCa distribution Launched mainstream beer and lemonade production under ICY and Berika brands in June and August 2017, respectively In February 2018, we acquired a 100% equity stake in a leading Georgian craft beer producer - Black Lion LLC Beer and Lemonade sales amounted GEL 4.4 mln and GEL 0.5 mln in 1Q18, respectively C. 7,600 sales points at the end of 1Q18 10 year exclusivity with Heineken to produce beer to be sold in Georgia, Armenia and Azerbaijan (c.17mln population) Local production - 13% market share based on LT sales at the end of 1Q18 Imported beer - 21% market share of the total imported beer (LT) at the end of 1Q18 Heineken is the highest equity valued brand in Georgia - 8.4 (out of 10) Priorities Grow in line with market locally Enhance exports Grow its vineyard base to 1,000 hectares from currently owned 436 hectares over the next three years Enhance product portfolio, becoming the leading FMCG distributor in Georgia Achieve 23% market share Strategic sale Page 57#58Teliani - Beverage business performance highlights Exclusive Heineken producer in Caucasus Highly concentrated beer market Domestic market segmentation 1Q18 Strong performance of local beer brands Local Beer Gross sales dynamics 14% 30% 11% Local beer brands: ICY & Black Lion Launched 3.1 Efes Georgia 2.3 45% Georgian Beer Company ■Global Beer Georgia ■Other BACK 盟 GEL millions 0.9 تلت 13.0% market share¹ 1.6 1.3. 0.7 0.8 0.6 0.7 0.5 0.1 0.1 Jun-17 1 Market share is calculated based on beer sales in liters Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 ■ICY Black lion Wine Exports Dynamics (milllions of bottles) Export sales, are presented excluding wine sales to Russia 2.1 2017 1.5 2016 1.4 2015 1.7 2014 17.8 22.6 21.5 Teliani Exp.Sales mln bottles Georgia wine Exp.Sales mln bottles EBITDA projection EBITDA Evolution, US$ million (2018-2020) GEORGIA CAPITAL 8.00 14% 12% 7.00 12% 28.9 11% 6.00 1.91 10% 5.00 8% 1.8 4.00 6% 3.00 4% 4.78 4% 2.00 3.5 2% 1.00 1.7 0% 2018 E 2019 E 2020 E Beer Business EBITDA Wine and distribution Business EBITDA EBITDA Margin Page 58#59Content 1. 1Q18 results discussion | Georgia Capital 2. Investment strategy & portfolio overview 3. 4. 1Q18 results discussion | Portfolio companies Georgian Macro Overview 5. Appendices GEORGIA CAPITAL Page 59#60Sovereign Ratings with Stable Outlook and Favourable Macro Fundamentals Key Ratings Highlights General Facts GEORGIA CAPITAL Rating Agency Rating Outlook Affirmed SWEDEN FINLAND NORWAY RUSSIA MOODY'S Ba2 Stable March 2018 Norn sea MAR S&P Global BB- Stable May 2018 Copenhagen Wotric Seu BELARUS Burlin POLAND BELGIUM Fitch Ratings CZECH REP Georgia Кути UKRAINE BB- Positive March 2018 KAZAKHSTAN AUSTRIA HUNGARY FRANCE морбул ROMANIA Belgrade Bay of Bay Georgia is favorably placed among peers BULGARIA Black Seu Rabat MOROCCO SPAIN Lichan Aiglers TUNGIK Тирий Mediterranean Sou Tyrrhenian ONEEL Ankara TURKEY Bishk SINGIANG UYGU UZBEKISTAN Toshkent ADAN TURKMENISTAN Dushanbe Ashgabat SYRIA Baghdad IRAQ AFGHANISTAN IRAN lahabad TIBET Country Country Rating Rating Outlook Armenia B+ Positive Azerbaijan BB+ Stable Belarus B Stable Czech Republic A+ Positive ¡ Georgia BB- Stable Kazakhstan BBB Stable Turkey BB+ Stable Ukraine B- Stable ALGERIA LIBYA EGYPT Riyadh PAKISTAN NEPAL Kathmandu VALITAN INDIA Area: 69,700 sq km Population (2017): 3.7 mln Capital: Tbilisi; Economy Life expectancy: 77 years Official language: Georgian Literacy: 100% Currency (code): Lari (GEL) Nominal GDP (Geostat, preliminary) 2017: GEL 38.0 bln (US$15.2 bln) Real GDP growth rate 2013-2017: 3.4%, 4.6%, 2.9%, 2.8%, 5.0% Real GDP 2007-17 annual average growth rate: 4.5% GDP per capita 2017 (PPP) per IMF: US$ 10,644 Annual inflation (e-o-p) 2017: 6.7% External public debt to GDP 2017: 35.4% Page 60#61Georgia's key Economic Drivers Liberal economic policy Top performer globally in WB Doing Business over the past 12 years " Liberty Act (effective January 2014) ensures a credible fiscal and monetary framework: Public expenditure/GDP capped at 30%; Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60% GEORGIA CAPITAL Regional logistics and tourism hub Strong FDI Support from international community Electricity transit hub potential Political environment stabilised 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 and Turkey and GSP with USA, Canada, Japan, Norway and Switzerland; FTA with Hong Kong expected to be signed shortly; FTA with India under consideration Tourism revenues on the rise: tourism inflows stood at 18.2% of GDP in 2017 and arrivals reached 7.6mln visitors in 2017 (up 18.8% y-o-y), out of which tourist arrivals were up 27.9% y-o-y to 3.5mln visitors. Regional energy transit corridor accounting for 1.6% of the world's oil and gas transit volumes An influx of foreign investors on the back of the economic reforms have boosted productivity and accelerated growth " FDI stood at US$ 1.9bln (12.3% of GDP) in 2017, up 16.2% y-o-y FDI averaged 10.0% of GDP in 2007-2017 Georgia and the EU signed an Association Agreement and DCFTA in June 2014 Visa-free travel to the EU is another major success in Georgian foreign policy. Georgian passport holders were granted free visa entrance to the EU countries from 28 March 2017 Discussions commenced with the USA to drive inward investments and exports Strong political support from NATO, EU, US, UN and member of WTO since 2000; Substantial support from DFIs, the US and EU Developed, stable and competitively priced energy sector " " " " " " " Only 20% of hydropower capacity utilized; 145 renewable (HPPS/WPPS/SPPS) energy power plants are in various stages of construction or development Georgia imports natural gas mainly from Azerbaijan Significantly boosted transmission capacity in recent years, a new 400 kV line to Turkey and 500 kV line to Azerbaijan built, other transmission lines to Armenia and Russia upgraded Additional 2,000 MW transmission capacity development in the pipeline, facilitating cross-border electricity trade and energy swaps to Eastern Europe Georgia underscored its commitment to European values by securing a democratic transfer of political power in successive parliamentary, presidential, and local elections and by signing an Association Agreement and free trade agreement with the EU New constitution amendments passed in 2013 to enhance governing responsibility of Parliament and reduce the powers of the Presidency Continued economic relationship with Russia, although economic dependence is relatively low Russia began issuing visas to Georgians in March 2009; Georgia abolished visa requirements for Russians - Russia announced the easing of visa procedures for Georgians citizens effective December 23, 2015 " Direct flights between the two countries resumed in January 2010 " Member of WTO since 2000, allowed Russia's access to WTO; In 2013 trade restored with Russia In 2017, Russia accounted for 14.5% of Georgia's exports and 9.9% of imports; just 3.5% of cumulative FDI over 2003-2017 Page 61#62Institutional Oriented Reforms Ease of Doing Business | 2018 (WB-IFC Doing Business Report) New Zealand 1 Singapore US Norway Georgia Estonia Germany Poland Czech rep. Russia Kazakhstan Italy Armenia Azerbaijan Turkey Ukraine India up from 16th in 2017 2 6 8 9 12 20 27 30 35 36 46 47 57 60 76 100 Global Corruption Barometer | TI 2017 % admitting having paid a bribe last year Estonia UK 7 8 Georgia 16 USA 18 Economic Freedom Index | 2018 (Heritage Foundation) GEORGIA CAPITAL Top 9 in Europe region out of 44 countries Latvia 28 Romania 37 Bulgaria Hungary Turkey 47 55 58 Azerbaijan France Italy 67 71 79 Russia 107 Ukraine 150 Business Bribery Risk, 2017 | Trace International Germany Poland 3% 7% 7% 9% Georgia Czech Rep. Slovak Rep. Latvia Montenegro Bulgaria Turkey Armenia Lithuania Bosnia & Herz. Kazakhstan Romania Russia Azerbaijan Ukraine Moldova Sources: Transparency International, Heritage Foundation, World Bank, Trace International 12% 15% 16% Ireland France 17% 18% 24% 24% Georgia Japan Czech rep. 27% Poland Italy 29% Armenia 29% 34% 38% Azerbaijan Turkey 38% Russia 142% Kazakhstan Sweden 1 Georgia is on a par with EU member states Norway UK 5 Estonia 9 Singapore 13 18 20 25 26 37 39 43 83 112 139 144 152 Page 62#63Ukraine Latvia Estonia Russia Diversified resilient economy Gross domestic product Source: Geostat One of the Fastest Developing Economies in the Region (2007-2017 average) Sources: IMF Comparative real GDP growth rates, % (2007-2017 average) 6% 5.1% 4.5% 5% 3.5% 3.6% 3.7% 4% 2.9% 3% 2.3% 1.9% 1.9% 2% 1.1% 1.4% 1% 0% -1% -0.9% -2% Czech Rep. Lithuania Romania Armenia Growth was 5.2% in 1Q18 20 20 12.6% 9.6% 9.4% 15 5.8% 110 10 16% Healthcare. 6% Education 5% Other 5% Agriculture 8% Construction 9% 12% 7.2% 6.2% 6.4% 4.6% 5.0% 8% Public administration 9% 3.4% .4% 2.9% 2.8% 4% Real estate 5 0% -3.7% -4% 7% Financial intermediation 4% Industry 16% Nominal GDP, US$ bn, RHS Real GDP growth, y/y, %, LHS Translport and communication 10% Hotels and restaurants 3% Trade 18% Moldova Poland Georgia Turkey Jan-16 0.8 Feb-16 Mar-16 Apr-16 May-16 Sources: GeoStat Source: Geostat Diversified nominal GDP structure, 2017 GEORGIA CAPITAL Monthly Economic Activity Estimate, y/y growth 4.3 3.4 2.9 2.9 2.6 2.1 2.1 2.0 2.1 1.5 1.3 0.3 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 5.7 5.2 5.3 5.3 5.5 5.6 5.0 4.6 4.7 4.4 4.3 4.4 3.8 3.7 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Page 63#64Room for Further Job Creation Unemployment rate down 0.2ppts y/y to 11.8% in 2016 Sources: GeoStat UNDP Human Development Index Sources: UNDP 2,000 1,800 1,600 20% 15% 10% 0.73 0.74 0.74 0.75 0.76 0.76 1,400 5% 1,200 1,000 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 Employed, 000' persons Unemployment rate, % Average monthly wages and income per household Sources: GeoStat 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Wages, US$ Total income, US$ Hired workers accounted for 42.3% in total employment in 2016 Sources: GeoStat 800 700 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ■Public sector (hired workers) ■ Non-public sector (hired workers) GEORGIA CAPITAL Page 64#65-3.0 7.0 Inflation targeting since 2009 Inflation y/y vs. inflation target Sources: NBG, GeoStat 12.0 Inflation target is 3 % for 2018-2020 years 2.0 20 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 M2 vs. inflation, y-o-y,% Sources: Geostat, NBG 70% 60% 50% 40% 30% 20% 10% %0 writing -10% -20% -30% Jan-03 ⚫ Aug-03 Mar-04 Oct-04 May-05 Dec-05 90-jnr Feb-07 Sep-07 Apr-08 Nov-08 M2, % change, y/y (LHS) 60-unr Jan-10 Aug-10 Mar-11 Oct-11 May-12 Dec-12 Jul-13 Feb-14 Sep-14 Apr-15 Nov-15 Jul-14 Oct-14 Jan-15 Apr-15 Annual inflation, %, eop (RHS) Jul-15 Oct-15 Jan-16 Jun-16 Jan-17 Aug-17 Mar-18 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 16 14 12 10 8 Apr-18 -3.0 2.0 8 12.0 7.0 3 Inflation y/y Source: GeoStat Jan-15 Mar-15 May-15 Jul-15 Sep-15 Monthly Inflation Core (non-food, non-energy) Inflation Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 Average monthly wages in business sector Source: Geostat 1,024 897 938 714 760 801 520 538 593 623 382 286 162 205 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 I II III IV 2017 Headline Inflation 1,107 1,144 Page 65 1,242 3 8 GEORGIA CAPITAL#66Sources: NBG 30 20 10 0 -10 -10.9 -20 -15.3 -19.6 -22.0 -30 -40 2005 Current account deficit supported by FDI Current account balance (% of nominal GDP) Exports and Re-exports, US$ bln 2008 Goods, net Current transfers, net Goods' Trade Deficit Source: GeoStat 500 300 100 -100 -300 -500 -700 Тулинци Trade Deficit, US$ mn, LHS -10.6 -10.3 -12.8 -11.7 Www Services, net Current account 2012 2013 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 % change y/y, trade deficit, RHS I -5.8 2014 -10.7 -12.0 -12.8 ☑ 2017 10 0 -10 -8.6 -20 -30 -40 Source: NBG 20 2000 2001 2002 200321 ■Re-exports 1.0 0.1 ܘ ܝ 2004 Investment income, net FDI and capital goods import Source: GeoStat Mar-18 3.0 3.0 2.6 2.0 1.6 3.2 3.4 3.1 3.1 2.5 2.5 3.1 2.1 1.9 2.6 2.5 1.8 1.3 1.4 1.6 0.1 0.2 0.2 0.3 0.2 0.7 0.5 2005 2006 2008 2009 2010 2011 م 2012 0.9 1.1 0.9 0.4 0.3 0.5 2013 2014 Goods exports, geo-originated 20 Service exports 2015 2016 2017 40% 20% 30% 17.2% 15.1% 20% 15% 12.3% 10% 11.0% 11.8% 12.3% 11.1% 9.6% 0% 8.4% 10% 7.1% -10% 6.2% 7.3% 7.8% 6.5% 6.3% -20% 5% 7.9% 8.2% 7.9% 7.6%8.4% 8.5% 9.1% -30% 5.2% 5.6% 5.8% 7.0% 7.7% 8.1% 5.9% 6.0% -40% 0% FDI to GDP, % Capital goods imports to GDP, % 2016 Page 66 GEORGIA CAPITAL#67US$ millions Diversified sources of capital Strong foreign investor interest Sources: GeoStat 2,000 1,500 1,000 9.7% 8.5% 500 0 7.0% FDI, US$ mln, LHS 2003 2004 2005 2006 2007 동 2008 2009 Sources: GNTA, NBG 3,100 1.5 mln visitors in 1Q18, up 15.5% y/y 25% Visitors and tourism revenues on the rise Tourism inflows up 29% y/y to US$ 560 mln in 1Q18 2,600 17.2% 20% 15.1% 2,100 12.3% 11.0% 11.8% 11.1% 12.3% 15% 6.2% 7.3% 7.8% 1,600 6.5% 6.3% 10% 1,100 5% 600 0% 100 ――FDI as a % of GDP, RHS 2005 2006 2007 2008 2009 Remittances - steady source of external funding Source: NBG Remittances reached US$ 355 mln in 2018Q1, up 22.4% y/y Number of Tourists(1) Source: GNTA In 2018 Q1 # of tourists reached 659 thousand persons, up 28% y/y I Tourism inflows, US$ mn, LHS 700 min $ 145 600 131 124 500 114 125 110 105 Thousands 400 292 278 300 189 178 85 200 65 100 0 45 Jan Feb Mar Apr May Jun 2015 2016 Jul Aug Sep Oct Nov Dec 2017 2018 2015 2010 Number of foreign visitors, mln, RHS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2016 2017 (1)Tourists are defined as visitors staying 24 hour and more Page 67 0 2 4 6 8 GEORGIA CAPITAL#68Diversified foreign trade Contribution to import growth Source: NBG 30% 20% 10% 0% M -10% -20% -30% Jan-16 Feb-16 Mar-16 Apr-16 May-1 Jun-16 Jul-16 Aug-16 Investment goods. Imports, 2017 Sources: GeoStat Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Intermediate goods. Consumer goods Dec-17 Jan-18 Feb-18 Foreign Demand, 2017 Source:, Geostat 30% 20% 10% 0% 11% -10% 3% -20% 4% 0% 12% 26% Food and beverages ■Industrial supplies Fuels and lubricants ■Capital goods Transport equipment -30% Import growth, y/y, % Exports, 2017 Sources: GeoStat 44% Oil imports Sources: GeoStat Other 1,200 Other USA 3.5% Iran 2.8% 16.8% 900 16.6% EU 28.5% EU 23.7% 600 Armenia USA 300 3.8% 4.5% 0 Ukraine 5.6% Ukraine 4.6% -300 Russia 14.5% -600 Azerbaijan China Turkey 16.9% China 7.6% 7.1% 8.5% Russia Armenia 7.7% Turkey Azerbaijan 9.5% 7.9% 10.0% Consumer goods ■Other I Oil imports, US$ mn Oil imports, % change, y/y 100% 75% 50% 25% 0% -25% -50% Page 68 GEORGIA CAPITAL#69Sources: NBG 3500 3000 2500 2000 1500 1000 500 0 -500 Prudent monetary policy ensures macro-financial stability International reserves Monetary policy rate Sources: NBG Jan-04 Jun-04 Nov-04 Apr-05 Sep-05 Feb-06 Jul-06 Dec-06 May-07 Oct-07 Mar-08 Aug-08 Jan-09 Jun-09 Nov-09 Sources: IMF, NBG Georgia Turkey Lithuania Latvia Czech Rep. Poland Hungary Armenia Russia Bosnia & Herz. Croatia Bulgaria Kazakhstan Belarus Portugal Official Reserve Assets, US$ mln Apr-10 Sep-10 Feb-11 Jul-11 Dec-11 May-12 Oct-12 Mar-13 Jan-14 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 Dec-16 May-17 Oct-17 Mar-18 Nonperforming loans to total gross loans Net Foreign Assets, US$ mln 2.8% 3.0% 3.3% 3.6% 3.8% 4.1% 4.8% 6.8% 10.2% 11.1% 12.3% 12.4% 12.7% 12.8% 15.5% 3500 9% 3000 8% 2500 7% 2000 6% 1500 5% 1000 4% 500 3% 0 2% -500 1% 0% Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jun-15 Sep-15 Dec-15 Mar-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Jul-17 Oct-17 Monetary policy rate remains low vs. peers Sources Central banks 18% End-2017 Latest-2018 15% 12% 9% of do do do 3% 8.00% 7.25% 7.25% 6.00% 6% Kazakhstan 9.25% 10.50% 11.00% Belarus Azerbaijan Ukraine 17.00% Jan-18 Page 69 Apr-18 5% 3% 1% 0% dlo do do do do do do do do do 9% 8% 7% 6% 4% 2% GEORGIA CAPITAL#70180 160 140 120 100 80 60 40 20 0 Dec-12 Mar-13 Jun-13 Sep-13 EUR/GEL Jan-14 Apr-14 Jul-14 Oct-14 Floating exchange rate - policy priority 200 120 150 100 60 60. 100 4040 4040 40 27202020, 50 0 ☐ -50 -100 -80 -150 -120 -200 -15 -40 -20 63 -70 -140 Jan-15 Central Bank's interventions Sources: NBG 250 220 NBG purchased US$ 20mn in April 2018 Sources: NBG Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 ■NBG monthly net interventions US$ mn Bilateral exchange rate indices (Dec2012= 100) Sources: NBG Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec- RUB/GEL TRY/GEL Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 USD/GEL 0 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 40 -40 Apr-18 20 US$ purchase US$ sale Jan-18 180 80 160 140 75 120 70 100 80 65 60 40 60 20 50 Jan-11 55 Mar-11 May-11 Jul-11 Sep-11 TT-AON Mar-12 vay ST-IDC Loan dollarization Jan-14 Jan-03 Aug-03 Mar-04 Oct-04 May-05 Dec-05 90-Inr Feb-07 Sep-07 Apr-08 Jan-2003 100 Nov-08 REER (Jan 2003=100) Dollarization ratios Source: NBG Nov-15 Jan-16 Mar-16 May-16 66 or-das Deposit dollarization Jan-17 Mar-17 May-17 Jul-17 Sep-17 ΛΟΝ Jan-18 Mar-18 50 Page 70 60-unr8 Real effective exchange rate (REER) Jan-10 Aug-10 Mar-11 Oct-11 May-12 Dec-12 Jul-13 Feb-14 Linear (REER (Jan 2003-100)) Sep-14 Apr-15 Nov-15 Jun-16 Jan-17 Aug-17 Mar-18 80 75 70 65 60 55 155 145 135 125 115 105 95 85 GEORGIA CAPITAL#710% -2% -0.3% -1.8% -4% -6% -8% -10% 2003 2004 2005 Sources: MOF 70% 60% 50% 40% 30% 20% 10% 0% 2003 Low public debt Public debt as % of GDP is capped at 60% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018F ――Total public debt to GDP, % --External public debt to GDP, % Fiscal deficit Source: MOF Note: Deficit calculated based on IMF's GFSM-1986 methodology -2.6% -3.4% -4.8% -6.5% 2006 2007 Fiscal deficit (GFS 1986) 2008 -9.2% 2009 N 2010 -6.7% 2011 2012 2013 2014 2015 2016 2017 2018F Breakdown of public debt Source: MOF, as of 31 December 2017 70% 60% 50% 40% 30% Multilateral 57% 20% Domestic 21% External 79% 10% 0% Source: MOF Current vs Capital Expenditure 100% 80% 79.8% 79.9% 81.6% 78.0% 79.9% -2.8% -2.6% 60% 75.9% 72.4% 73.3% 74.1% 74.7% -3.2% -3.3% -3.6% -3.7% -4.1% -3.9% 40% 27.6% 26.7% 25.9% 24.1% 25.3% 20.2% 20.1% 22.0% 18.4% 20.1% 20% 90 0% ―― Current Expenditures -- Capital Expenditures and net lending Bilateral 13% Eurobond 8% Page 71 GEORGIA CAPITAL#721 Government 4-pillar of Reforms Structural Reforms 3 " Tax Reform ■ Corporate income tax reform Enhancing easiness of tax compliance Capital Market Reform " Boosting stock exchange activities Developing of local bond market Pension Reform ■Introduction of private pension system PPP Reform Introduction of transparent and efficient PPP framework. Public Investment Management Framework " Improved efficiency of state projects Deposit Insurance Boosting private savings Enhancing trust to financial system Accounting Reform ■ Increased Transparency and financial accountability Enhanced protection of shareholder rights Association Agreement Agenda 2 Promoting Transit & Tourism Hub GEORGIA CAPITAL Roads Rail Plan to finish all spinal projects by 2020 - East-West Highway, other supporting infrastructure ■ Baku - Tbilisi Kars new railroad line " Air Railway modernization project ■Tbilisi International Airport - 2nd runway to be constructed International Cargo terminal Maritime ■Anaklia deep water Black Sea port Strategic location Capable of accommodating Panamax type cargo vessels High capacity up to 100mln tons turnover annually Up to USD 1bln for first phase (out of 9) in Georgia Promoting Open Governance 4 Improvement of Public Services offered to the Private Sector Creation of "Front Office" Application of "Single Window Principle" Involvement of the Private Sector in Legislative Process " Discussion of draft legislation at an early stage Strict monitoring of implementation of government decisions Creation of special unit for monitoring purposes General Education Reform Education Reform Maximising quality of teaching in secondary schools Fundamental Reform of Higher Education Based on the comprehensive research of the labour market needs ■ Improvement of Vocational Education Increase involvement of the private sector in the professional education Page 72#73Content 1. 1Q18 results discussion | Georgia Capital 2. Investment strategy & portfolio overview 3. 4. 1Q18 results discussion | Portfolio companies Georgian Macro Overview 5. Appendices GEORGIA CAPITAL Page 73#74Georgia Capital - consolidated income statement GEORGIA CAPITAL Quarterly income statement GEL thousands unless otherwise noted Utility and energy revenue Cost of utility and energy Gross utility and energy profit Net insurance premiums earned Net insurance claims incurred Gross insurance profit Real estate revenue Cost of real estate Gross real estate profit Beverage revenue Cost of beverage Gross beverage profit Other income Gross profit Salaries and other employee benefits Administrative expenses Other operating expenses Impairment charge EBITDA Depreciation and amortisation 1Q18 1Q17 y-o-y change (%) 4Q17 q-o-q change (%) 30,654 27,236 12.5% 33,286 (7.9%) (9,804) (9,709) 1.0% (10,417) (5.9%) 20,850 17,527 19.0% 22,869 (8.8%) 12,943 12,527 3.3% 13,512 (4.2%) (6,091) (5,637) 8.1% (7,207) (15.5%) 6,852 6,890 (0.6%) 6,305 8.7% 29,207 19,781 47.7% 32,982 (11.4%) (25,270) (17,192) 47.0% (27,209) (7.1%) 3,937 2,589 52.1% 5,773 (31.8%) 12,516 7,145 75.2% 14,615 (14.4%) (8,045) (4,828) 66.6% (7,506) 7.2% 4,471 2,317 93.0% 7,109 (37.1%) 1,672 1,528 9.4% 2,502 (33.2%) 37,782 30,851 22.5% 44,558 (15.2%) (11,053) (6,259) 76.6% (10,427) 6.0% (9,882) (7,456) 32.5% (11,824) (16.4%) (575) (176) NMF (424) 35.6% (2,005) (104) NMF (618) NMF 14,267 16,856 (15.4%) 21,265 (32.9%) (8,972) (5,598) 60.3% (9,056) (0.9%) Net foreign currency gain (loss) 5,878 5,771 1.9% (5,797) NMF Interest income 3,934 2,532 55.4% 4,088 (3.8%) Interest expense (9,524) (6,770) 40.7% (8,969) 6.2% Net operating income before non-recurring items 5,583 12,791 (56.4%) 1,531 NMF Net non-recurring items (156) 113 NMF (460) (66.1%) Profit before income tax expense from continuing operations 5,427 12,904 (57.9%) 1,071 NMF Income tax expense (693) (687) 0.9% Profit (loss) from continuing operations¹ 4,734 12,217 (61.3%) (1,666) (595) (58.4%) NMF Profit from discontinued operations 24,641 12,829 92.1% 12,270 100.8% Profit Attributable to: 29,375 25,046 17.3% 11,675 151.6% -shareholders of the Group 17,168 17,791 (3.5%) 7,042 143.8% -non-controlling interests 12,207 7,255 68.3% 4,633 163.5% Page 74 (1) Profit from discontinued operations includes GEL 7.7min reversal of GHG's depreciation expense in line with IFRS requirements, GHG's underlying profit was GEL 16mln#75Georgia Capital - consolidated balance sheet For the quarter ended GEL thousands unless otherwise noted Cash and cash equivalents Amounts due from credit institutions Debt securities owned Equity investments at fair value Accounts receivable Insurance premiums receivable Inventories Investment property Property and equipment Goodwill Intangible assets 31-Mar-18 528,697 31-Mar-17 359,629 y-o-y change (%) 47.0% 31-Dec-17 q-o-q change (%) 374,301 41.2% 37,667 174,248 (78.4%) 38,141 (1.2%) 45,233 2,197 NMF 31,906 41.8% 707,153 1,153 NMF 1,153 NMF 32,669 140,489 (76.7%) 35,446 (7.8%) 28,392 53,256 (46.7%) 30,854 (8.0%) 77,626 195,946 (60.4%) 80,108 (3.1%) 153,638 131,378 16.9% 155,367 (1.1%) 700,905 1,053,786 (33.5%) 661,176 6.0% 24,275 124,371 (80.5%) 21,925 10.7% 5,233 20,601 (74.6%) 5,455 (4.1%) Income tax assets 1,179 4,291 (72.5%) 1,374 (14.2%) Prepayments 105,803 74,168 42.7% 88,057 20.2% Other assets 189,768 79,972 137.3% 73,468 158.3% Assets of disposal group held for sale 1,202,765 NMF 1,165,182 3.2% Total assets 3,841,003 2,415,485 59.0% 2,763,913 39.0% Accounts payable 42,012 133,720 (68.6%) 46,479 (9.6%) Insurance contracts liabilities 43,103 71,620 (39.8%) 46,402 (7.1%) Borrowings 381,070 532,572 (28.4%) 377,501 0.9% Debt securities issued 732,401 335,773 118.1% 357,442 104.9% Income tax liabilities 545 1,662 (67.2%) 859 (36.6%) Deferred income Other liabilities Liabilities of disposal group held for sale Total liabilities 64,035 73,970 (13.4%) 73,066 (12.4%) 71,342 629,955 1,964,463 204,085 (65.0%) 63,470 12.4% NMF 619,026 1.8% 1,353,402 45.1% 1,584,245 24.0% Total equity attributable to shareholders of the Group 1,572,608 824,709 90.7% 874,788 79.8% Non-controlling interests Total equity Total liabilities and equity 303,932 237,374 28.0% 304,880 (0.3%) 1,876,540 1,062,083 76.7% 1,179,668 59.1% 3,841,003 2,415,485 59.0% 2,763,913 39.0% GEORGIA CAPITAL Page 75#76Water utility and energy business (GGU) – cash flow GEORGIA CAPITAL GEL thousands unless otherwise noted Profit before income tax Adjustments for: Depreciation and amortisation 1Q18 Quarterly cash flow statement 1Q17 y-o-y change (%) 4Q17 q-o-q change (%) 6,778 7,019 (3.4%) 9,077 (25.3%) 6,117 4,821 26.9% 5,229 17.0% Allowance for impairment of trade receivables 1,449 (274) NMF (338) NMF Reversal of/(Charge for) provisions and legal claims related expenses 137 38 NMF (99) NMF Net loss from disposal of property, plant and equipment and investment property 395 184 NMF 295 33.8% Revaluation gain on investment property 0.0% (554) (100.0%) Net foreign exchange losses Interest income (1,760) 328 NMF 386 NMF (221) (388) (43.0%) (823) (73.2%) Finance costs 3,517 2,638 33.3% 4,605 (23.6%) Non-reccurring expenses 124 100.0% 1,263 (90.1%) Share-based payment expense 181 100.0% 388 (53.4%) Operating cash flows before working capital changes Change in inventories 110 (50) NMF (7) NMF Change in trade and other receivables (4,797) (2,686) 78.6% (1,697) NMF Change in prepaid taxes other than income tax 1,624 1,301 24.8% (1,589) NMF Change in prepayments (950) (5,510) (82.8%) 7,109 NMF Change in trade and other payables 5,708 4,879 17.0% (2,160) NMF Change in deferred revenue 481 145 NMF 795 (39.6%) Change in advances received 1,205 2,636 (54.3%) 3,007 (59.9%) Change in other tax payables 837 (103) NMF (1,435) NMF Change in restricted cash. 2,567 359 NMF (3,341) NMF Change in other non-current liabilities 1 100.0% (22) NMF Interest received 180 419 (56.9%) 940 (80.8%) Interest paid (864) (2,606) (66.8%) (5,188) (83.3%) Income tax paid 1 Total cash flow from operating activities 22,819 (534) 12,617 (100.3%) (1,683) NMF 80.9% 14,158 61.2% Purchase of PPE and intangible assets (57,076) (24,142) Purchase of investment property Proceeds from PPE sale (0) 14 NMF 0.0% (100.0%) (80,534) (29.1%) (12) (100.0%) (0) (100.0%) Proceeds from sale of investment property 1,100 Restricted cash in Bank Total cash flow used in investing activities (55,976) (12,249) (36,377) 0.0% (100.0%) 0 NMF 8,275 (100.0%) 53.9% (72,271) (22.5%) Proceeds from borrowings 11,697 12,412 Repayment of borrowings (2,744) (4,359) Contributions under share-based payment plan Dividends paid out (5.8%) (37.1%) 0.0% 0.0% 265,792 (95.6%) (146,159) (98.1%) (2,599) (100.0%) (28,000) (100.0%) Capital increase 780 (100.0%) 2,607 (100.0%) Total cash flow used in financing activities 8,953 8,833 1.4% 91,641 (90.2%) Effect of exchange rates changes Total cash (outflow)/inflow (2,064) (26,268) (676) NMF 6,075 NMF (15,603) 68.4% 39,604 NMF Cash, beginning balance Cash, ending balance 70,261 32,379 117.0% 30,657 129.2% 43,993 16,776 162.2% 70,261 (37.4%) Page 76#77GEORGIA CAPITAL