#1BANK OF GEORGIA GROUP PLC INVESTOR PRESENTATION 4Q21 and FY21 Financial Results 22 February 2022 www.bankofgeorgiagroup.com#2Empty#3CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY Q921 4Q21 AND FY21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 3#4COVID-19 STATISTICS IN GEORGIA COVID-19 STATISTICS IN GEORGIA at 12:00, 21 February 2022 2,000 COVID-19 STATISTICS IN GEORGIA, 000' PERSONS Source: NCDC 1,553,668 129,978 1,407,776 43.2% Confirmed cases Active cases Recovered Of adult population fully vaccinated 1,500 1,000 Total cases (LHS) Total recoveries (LHS) 500 O Feb-20 Mar-20 Apr-20 May-20 Jun-20 Daily new cases (RHS) Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Jan-22 Feb-22 30 10,000 9,000 25 8,000 5 250 so 7,000 6,000 15 5,000 4,000 10 3,000 2,000 O Source: NCDC at 12:00, 21 February 2022 COVID-19 ACTIVE CASES PER 100,000 PERSONS Source: Johns Hopkins, Worldometers at 12:00, 21 February 2022 64 1,000 14 19 53 80 165 299 370 556 875 1,4271,5551,565 1,821 India Uzbekistan Saudi Arabia Belarus Kazakhstan Azerbaijan Iran Armenia Turkey Israel Poland 4,335 3,498 Ukraine Russia Georgia Germany Estonia 9,299 4#5SOLID ECONOMIC GROWTH IN 2021 REAL GDP GROWTH IN 2021 EXCEEDING 2019 LEVEL Source: Geostat 70% Real GDP growth in 2021: 10.6% y-o-y 3.1% compared with 2019 60% 44.8% 50% 40% 30% 20% 25.8% 20.8% 18.7% 8.8% 9.9% 10.3% 12.0% 9.6% 9.5% 6.9% 6.9% 10% 4.0% -3.0% 0% -7.0% 1.2% 3.8% 4.5% 6.1% 2.7% 3.4% 0.9% -10% -5.1% -11.5% -20% -30% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Real GDP growth, 2021 vs. 2020 Real GDP growth, 2021 vs. 2019 GDP contracted by 6.8% in 2020 and by 4.1% in 1Q21, mainly due to the COVID-19-related restrictions As restrictions were gradually lifted, the economy has gained momentum since 2Q21, with real GDP up 28.9% y-o-y in 2Q21, up 9.1% y-o-y in 3Q21 and up 9.5% y-o-y in 4Q21 Estimated real GDP growth was 10.6% y-o-y for full year 2021, exceeding the 2019 pre-pandemic level by 3.1% Robust growth in remittances and exports, and a faster than expected rebound in tourism, together with fiscal stimulus and accelerated banking sector lending, have supported the recovery In 2021: Exports were up 26.9% y-o-y and up 11.7% compared with 2019 Remittances were up 24.6% y-o-y and up 35.6% compared with 2019 Tourism revenues were at 38.1% of the 2019 level, with tourism arrivals accelerating since April 2021 5#6TRACKING GEORGIA'S ECONOMIC RECOVERY EXPORTS, REMITTANCES, IMPORTS AND TOURISM REVENUES SHOWING STRONG REBOUND Remittances Exports 150% 120% 90% 60% 33.2% 28.8% 30% Imports Trade deficit 2021 vs. 2020 2021 vs. 2019 26.9% 11.7% 25.1% 5.8% 23.8% 1.9% 24.6% 35.6% 129.8% -61.9% Exports Imports Trade deficit Remittances Tourism 26.3% 24.6% 5.9% 14.9% 0% 6.7% 7.2% -30% -60% % change, 2021 vs. 2020 ――% change, 2021 vs. 2019 6 Source: Geostat, NBG, GNTA Tourism revenues, 2021 as % of 2019 level 58.0%#7-8% -4% -2% 0% 10% 12% GEORGIA'S ECONOMIC OUTLOOK IN 2022 GEORGIA'S ECONOMIC GROWTH FORECAST 7.4% 8% 6.4% 6.2% 6% 4% 2.4% 2% -6% -3.7% 2008 2009 2010 2011 2012 2013 2014 2015 2016 4.8% 4.8% 5.0% 4.4% 3.6% 3.0% 2.9% 2017 -6.8% 2020 2021E 2022F Source: Geostat, Galt & Taggart 5.0% 10.6% Our brokerage and investment arm, Galt & Taggart, forecasts a 5.0% real GDP growth in 2022, driven by a continued recovery in tourism Downside risks to growth are the ongoing COVID-19 pandemic and regional instability 7#8CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 44921 4Q21 AND FY21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 8#9BANK OF GEORGIA GROUP AT A GLANCE BANK OF GEORGIA GROUP PLC RETAIL BANKING Mass Retail SOLO MSME CORPORATE AND INVESTMENT BANKING Leader in payments and financial mobile app 51% of total POS payment transactions executed in BOG POS terminals c.11.4 mln transactions executed in mobile app per month, up 76% y-o-y 96% of transactions of individuals executed through digital channels Strongest retail banking franchise 40% market share in deposits of individuals* ☐ 39% market share in loans to individuals* Most trusted bank and top of mind bank in Georgia** NPS of 55% in December 2021*** Sustainable high profitability ROAE of 20%+ over the last five years (pre-COVID-19) ROAE of 20%+ for the seventh consecutive quarter during the pandemic * Based on data published by the National Bank of Georgia as at 31 December 2021 **Based on autumn 2021 external research by IPM Georgia *** Based on December 2021 external research by IPM Georgia#10STRATEGIC FOCUS BANK OF THE FUTURE DATA-DRIVEN ORGANISATION CUSTOMER SATISFACTION Mobile app Payments Loyalty STRONG FRANCHISE PROFITABILITY EMPLOYEE EMPOWERMENT 10 10#11GEORGIA'S MOST POPULAR FINANCIAL MOBILE APP MBANK/IBANK STATISTICS* Number of active users** THOUSANDS +21.2% MILLIONS +10.8% Number of transactions +71.9% 9:41 Operations +17.4% Categories 35.4 30.2 921 26.3 Payments Transfer to Own Accounts 22.2 20.6 831 787 795 760 Payments 34.3 29.1 25.3 19.5 21.2 1.1 0.9 1.0 1.0 1.1 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 4Q20 1Q21 2Q21 3Q21 4Q21 iBank mBank Daily active 44.2% users/monthly active users Dec-21 NEXT STEP: BUILDING THE SUPER APP * Information on this slide depicts the usage of internet and mobile banking platforms by individual customers ** Active user - at least one login in the past three months 9:41 Search Total Available Amount 4,652.230 Visa Gold 2,744.00 0000 PLUS Point 8,744 Deposits and Liabilities Lubines 9,744.00€ VISA M 26,744 Deposts 7,060.000 11 c.11.4mln Transactions per month 86.0% Customer Satisfaction Score ANDROID APP ON Google play 4.8 Download on the App Store 4.8#12STRONG TRANSACTIONS OFFLOADING TO DIGITAL CHANNELS* NUMBER OF TRANSACTIONS 12 MILLIONS Share of 93.5% 94.2% 96.0% 95.1% 96.1% 95.9% 96.2% 96.5% 96.0% digital transactions +34.2% 69.6 0.1 61.7 2.8 57:7 Q.1 10.2 52.5 51.9 51.9 2.2 0.1 46.8 0.1 0.1 48.3 2.2 9.7 3.4 2.5 2.0 0.1 9.1 0.1 8.7 2.7 35.8 8.5 8.2 20 21.1 30.3% 7.3 7.4 0.1 19.6 31.7% 14 20.1 34.7% 6.1 22.5 43.3% 21.0 40.5% 16.8 34.7% 27.4 52.3% 22.9 49.0% 13.8 38.7% 18.3 35.2% 20.6 39.7% 22.2 45.9% 26.3 45.6% 30.2 48.9% 35.4 50.8% 1 12.8 24.4% 13.6 29.0% 14.3 40.0% 4Q19 1Q20 2Q20 iBank/mBank 3Q20 4Q20 1Q21 Express Pay terminals ATMs 2Q21 Branches Other ☐ Strong presence in Georgia with our self-service Express Pay terminals 3Q21 Continuous migration of customers' activity to mBank/iBank from Express Pay terminals - c.26% of customers' activity migrated to mBank/iBank during the past two years Information on this slide depicts the usage of channels by individual customers 4Q21 ** Includes representative offices of the Wealth Management business, which was reclassified from Corporate and Investment Banking to the Retail Banking segment in 3Q21 *** Active user - at least one login in the past three months 3,134 Express Pay terminals +3.8% y-o-y +0.1% q-o-q 211 Branches** Flat y-o-y -0.5% q-0-9 921k mBank/iBank active users*** +21.2% y-o-y +10.8% q-o-q 989 ATMs +3.0% y-o-y +0.4% q-o-q#13140 COVID-19 pandemic 120 impact 100 80 60 40 42° 20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Numbers of activated products * Mainly comprises cards, deposits and loans offloading to digital channels SIGNIFICANT UPSIDE IN PRODUCT OFFLOADING TO DIGITAL CHANNELS HAVING ACHIEVED HIGH TRANSACTIONS OFFLOADING RATE TO DIGITAL CHANNELS, OUR AIM NOW IS TO INCREASE PRODUCT OFFLOADING RATE PRODUCT OFFLOADING* THOUSANDS 13 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Offloading rate Oct-21 Nov-21 131.4 70% 60% 50% 40% 30% 20% 10% 0% Dec-21 Continuously developing our digital products and refining end-to-end digital journeys. The functionalities of our digital channels are updated every two to three weeks Redesigned digital consumer lending process launched at the end of June 2021 Redesigned deposit activation process launched at the end of 2021 c.30% Product c.36% offloading rate Dec-21 Planned product offloading rate by Jun-22#14REMITTANCES AND POTENTIAL IN GEORGIAN EMIGRANTS MARKET POTENTIAL c.1.3 mln NUMBER OF RECEIVED REMITTANCES AT BOG THROUGH DIGITAL CHANNELS THOUSANDS 300 60% Georgians living abroad in need of daily banking services 49% 46% 250 42% 44% 50% New functionality 200 added in mBank and iBank 38% 35% 32% 40% US$ 2.3 bln Transferred in 2021 150 30% 100 11% 20% 50 3% 10% +24.6% y-o-y 0% c.350 k Received remittances 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Offloading rate Customers with high potential for loans and deposits* We expect to gain 35%-40% of the potential market in the medium- term BOG MARKET SHARE IN TOTAL REMITTANCE INFLOWS** 36% COVID-19 pandemic impact 35% 35% 35% 32% 32% 32% 31% 27% * More than three transfers in the last 12 months 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 ** Based on the National Bank of Georgia and Bank of Georgia data 14#15PAYMENTS AS A DAILY TOUCHPOINT WITH CUSTOMERS NUMBER OF PAYMENT VOLUME OF PAYMENT TRANSACTIONS TRANSACTIONS IN BOG TERMINALS IN BOG TERMINALS MILLIONS +50.2% GEL MILLIONS +62.9% +63.7% +7.0% 4,371 150 100 45 42 2,671 27 +86.9% +9.1% 1,386 1,270 742 2020 2021 4Q20 3Q21 4Q21 2020 2021 4Q20 3Q21 4Q21 51% Share by number of POS payment transactions in BOG's POS terminals | 2021* +3ppts YoY 49% Share by volume of POS payment transactions in BOG's POS terminals | 2021* +2ppts YoY *Based on the National Bank of Georgia and Bank of Georgia data ** Active individual customer - an individual who used the Bank's any channel at least once, or performed at least one debit transaction, or was a payroll customer, or had at least one active credit product, or had any type of deposit with a balance above a certain threshold during the last three months 15 c.39k Multifunctional POS terminals +41.7% y-o-y#16LOYALTY PROGRAMME - ONE OF THE STRENGTHS OF BANK OF GEORGIA GEL 1.1mln+ +42.6% y-o-y 139k +12.1% y-o-y worth of loyalty points exchange operations per month 2021 loyalty points exchange operations per month 2021 ADVANCED ANALYTICS for partner merchants PERSONALISED CAMPAIGNS * Members with at least one active product 1.5min +7.7% y-o-y active Loyalty programme members* Dec-21 TRANSACTIONS AND SPEND PER CUSTOMER PER MONTH INCREASING 830 759 686 619 605 573 489 489 24 22 224 24 20 20 19 17 17 1Q20 2Q20 3Q20 4Q20 1Q21 Spend volume per customer (GEL) 2Q21 3Q21 4Q21 Number of transactions per customer 16#17FULL DIGITAL EXPERIENCE FOR OUR BUSINESS CUSTOMERS BUSINESS MBANK/IBANK STATISTICS* Number of active users ** THOUSANDS +32.0% +6.2% 48 45 41 38 36 17 Number of transactions Transactions offloading rate MILLIONS +44.3% +19.5% 97.4% 97.1% 3.6 96.7% 96.7% 96.5% 3.0 2.5 2.6 24 2.1 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 -II 이 1,094k Transactions per month 72.9% Customer Satisfaction Score * Information on this slide depicts the usage of internet and mobile banking platforms by legal entities **Active user - at least one login in the past three months 1124347437.080 Financial mobile application launched in 1Q21 104k+ Transactions per month 23699.00 0000 KYLATE 78.7% 00 30108 Customer Satisfaction Score#18CUSTOMER SATISFACTION Engaging with customers proactively and responding in real time FOCUS ON INCREASING CUSTOMER SATISFACTION BY: MEDALLIA Anticipating customer needs, wants, and future behavior Harnessing strong human relationships with data analytics for dynamic customer insights Investing in technology to deliver seamless customer experiences NPS* 42% 39% 38% 37% 33% 33% salesforce 27% 34% COVID-19 pandemic impact 49% 47% 46% 43% 18 55% Mar-17 Oct-17 May-18 Sep-18 Jun-19 Nov-19 Feb-20 Aug-20 Dec-20 Mar-21 Jun-21** Sep-21 Dec-21 *Based on external research by IPM Georgia ** NPS of all major banks decreased due to Monetary Policy Rate hike#19EMPLOYEE EMPOWERMENT Re-design of employee experiences New talent development strategy Employees feel more engaged and enabled 71% 2020 73% High-Performing Organisations Benchmark 73% 2021 67% Banking Industry Benchmark Based on the KORN FERRY survey High-trust environment Values-based organisation ENPS 73% High-Performing 58% 60% 61% Organisations Benchmark 46% 69% 2020 74% 2021 68% Banking Industry Benchmark Nov-19 Nov-20 Apr-21 Nov-21 19#20DATA-DRIVEN ORGANISATION 127 70% Data models running online, covering different business processes Automation rate in the retail lending process in 2021 40% Contribution to sales, powered by data- driven models in 2021 KEY DATA-RELATED INITIATIVES DURING 2021 Implementing non-financial recommender engine Running data and Al trainings for middle management Improving analytics for business customers Predicting and improving NPS with data-driven models Improving natural language understanding capabilities Improving customer churn analytics DATA IN BANKING Use of data analytics to cover core banking processes with impact on decision making, automation, sales, customer satisfaction, efficiency DATA BEYOND BANKING Use of data analytics for data monetisation and to create additional value for customers, the Bank, and the ecosystem 20#21INCREASING FOCUS ON ESG WE FOCUS ON THE FOLLOWING FIVE SDGs: NO POVERTY 4 QUALITY EDUCATION 5 GENDER EQUALITY 8 DECENT WORK AND ECONOMIC GROWTH 13 CLIMATE ACTION ர்க்க்கர் KEY DEVELOPMENTS IN 2021 Joined the UN Global Compact UN GLOBA COMPACT We believe in success that is shared. We are committed to rigorously managing risks and creating opportunities that empower our customers, employees, and communities, and help people achieve more of their potential Completed the materiality assessment process to get a multi-stakeholder perspective on ESG issues. The outcomes of the process will be reflected in the Annual Report 2021 Began the journey to better understand climate-related risks and opportunities relevant to our business, develop climate action strategy, and implement the TCFD recommendations 21#22ESG SCORES FROM INDEPENDENT RATING AGENCIES * ISS‣ ENVIRONMENT MSCI ** SOCIAL 2 GOVERNANCE 2 Bank of Georgia falls into the highest scoring range relative to global peers CCC B BB BBB A AA AAA LAGGARD AVERAGE FTSE4GOOD Index INCLUDED IN THE GLOBAL RESPONSIBLE INVESTMENT INDEX FTSE4GOOD SINCE 2017 LEADER ISS uses 1-10 scale. 1 indicates lower governance risk, while 10 indicates higher governance risk versus its index or region. 1 indicates higher E&S disclosure, while 10 indicates lower E&S disclosure. Scores are as of February 2022 ** MSCI score is as of December 2021 22 22#23CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 4Q21 AND FY21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 23 23#24TRACK RECORD OF DELIVERING STRONG RESULTS Nominal Constant currency basis 26.4% 26.1% 25.2% 25.8% 27.0% ROAE Loan book YoY growth 21.4% 17.4% 13.0% 18.9% 19.8% 20%+ c.10% 19.0% 22.0% 15.9% 10.2% 13.9% 2017 2018 2019** 2020 2021 2017 2018 2019 2020 2021 24 ROBUST CAPITAL MANAGEMENT TRACK RECORD Maintain regular progressive semi-annual dividend payouts: aiming at a 30-50% dividend/share buyback payout ratio Given higher levels of lending growth in the near-term, the Board currently expects the dividend/share buyback payout ratio to be approximately 35-40% over the next two years Interim dividend of GEL 1.48 per ordinary share paid on 5 November 2021 At the 2022 Annual General Meeting, the Board intends to recommend a final dividend for 2021 of GEL 2.33 per share payable in British Pounds Sterling at the prevailing rate Adjusted for GEL 30.3mln demerger-related costs, a GEL 8.0mln demerger-related corporate income tax gain, a GEL 30.3mln one-off impact of re-measurement of deferred tax balances and GEL 3.9mln (net of income tax) termination costs of the former CEO Adjusted for GEL 14.2mln (net of income tax) termination costs of the former CEO and executive management Dividend yield for 2013-2019 and for interim dividend for 2021 is calculated based on the closing price of shares immediately prior to ex-dividend date. Final dividend yield is calculated based on the closing price of shares on 21 February 2022 REGULAR DIVIDENDS GEL MILLIONS PAYOUT RATIO: 30% 36% 33% 34% 32% 30% 30% 25% 6.3% Final dividend 4.0% 4.2% 3.1% 2.7% 3.1% 3.2% 2.4% Interim dividend 122 124 72 80 98 102 51 72 2014 2015 2016 2017 2018 2019 2020 Total dividend paid during the year 170 2021 2022 Dividend yield*** 2013#254Q21 RESULTS HIGHLIGHTS Outstanding profitability Strong interest and F&C income generation Resilient loan portfolio quality and high cost efficiencies ROAE Operating income 4Q21 26.4% 4Q21 +26.4% y-o-y +9.0% 9-0-9 GEL 379mln Cost of credit risk 4Q21 -0.2% Strong portfolio growth Loan growth 31 Dec 2021 GEL 16.2bln +13.9% y-o-y* +3.8% q-o-q* Strong capital and liquidity positions CET 1 capital 31 Dec 2021 13.2% Minimum requirement 11.5% Net profit 4Q21 GEL 201mln +52.2% y-o-y +8.3% q-o-q +36.5% y-o-y +2.6% 9-o-q Net F&C income 4Q21 Cost to income 4Q21 GEL 64mln 39.8% * Growth on a constant currency basis was 19.8% y-o-y and 4.9% q-o-q ** Growth on a constant currency basis was 12.5% y-o-y and 6.3% q-o-q 25 Deposits growth 31 Dec 2021 GEL 14.Obln +0.1% y-o-y +5.4% 9-0-9 ** Liquidity coverage 31 Dec 2021 124.0% Minimum requirement 100%#26STRONG PROFITABILITY NOTWITHSTANDING THE PANDEMIC OUTSTANDING QUARTERLY PERFORMANCE Strong balance sheet growth with better than expected levels of lending in the consumer, micro and SME portfolios Strong operating income performance. Net interest income up 11.0% q-o-q, coupled with strong net fee and commission income generation, up 2.6% q-o-q, on the back of a strong performance in our settlement operations Net interest margin of 5.3%, up 30 basis points q-o-q TRACK RECORD OF STRONG PROFITABILITY 26.0% 21.8% 21.3% 21.5% 20% 29.4% 26.4% 25.7% Cost to income ratio of 39.8%, up from 36.8% in 3Q21, mainly driven by strong business growth, and increased investments in IT- related resources, digitalisation, and marketing Lending portfolio performing well. Annualised cost of credit risk ratio was a net gain of 0.2% in 4Q21. The non-performing loans ratio improved to 2.4% from 2.6% in 3Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Robust capital adequacy ratios, comfortably above the increased minimum regulatory requirements. We no longer use the capital buffers previously released by the NBG Superior levels of profitability. Despite a still challenging operating environment, delivering ROAE of 26.4% in 4Q21, the seventh consecutive quarter of delivering profitability above 20% during the pandemic -18.6% 26#27STRONG UNDERLYING PERFORMANCE OPERATING INCOME GEL MILLIONS +25.2% NET NON-INTEREST INCOME GEL MILLIONS +31.5% 412 +26.4% 1,366 +10.9% +9.0% 70 313 1,091 412 30% +4.4% 379 348 48 109 313 29% 300 105 30% 109 29% 99 105 109 98 98 33% 11 9 25 954 70% 33 34 778 71% 232 202 67% 243 70% 270 71% 26 166 62 47 49 64 2020 2020 2021 4Q20 3Q21 4Q21 Net non-interest income Net interest income 2021 4Q20 3Q21 4Q21 Net other income Net foreign currency gains Net fee and commission income Strong net interest income and net fee and commission income generation driving robust top-line performance 27#28NET INTEREST MARGIN NET INTEREST MARGIN 4.9% 1 I 4.6% 5.3% 5.0% 4.7% 4.5% 4.4% LOAN YIELD, COST OF FUNDS, COST OF DEPOSITS 10.5% 10.6% 10.4% 10.4% 10.4% 10.6% 11.0% 4.7% 4.6% 4.6% 4.5% 3.6% 3.6% 4.5% 4.7% 4.8% 3.8% 3.8% 3.5% 3.6% 3.5% 28 28 4Q20 1Q21 2Q21 3Q21 4Q21 Loan yield Cost of funds Cost of client deposits and notes 2020 2021 4Q20 1Q21 2Q21 3Q21 4Q21 2020 2021 NIM UP IN 4Q21 DUE TO Increase in loan yields and successful deployment of excess liquidity during the second and third quarters of 2021 on the back of a rebound in economic activity in 2021 NIM OUTLOOK Broadly stable margin going forward#29FOCUS ON EFFICIENCY AND COST CONTROL COST TO INCOME RATIO OPERATING EXPENSES 39.7% 39.6% 39.8% GEL MILLIONS 37.2% 36.8% +17.4% 508 +26.9% 4 433 5 94 +17.8% 83 151 130 1 128 119 2020 2021 4Q20 3Q21 4Q21 106 1 25 2 23 21 44 Continuing investments in IT-related resources, digitalisation and marketing, in line with strategic priorities, while maintaining focus on efficiency and cost control 32 32 281 240 The impact of cost optimisation measures that were initiated in 2Q20 has been reflected in subsequent quarters c.35% Medium-term guidance 2 72 81 4 64 3Q21 2020 2021 4Q20 4Q21 Other operating expenses Administrative expenses Depreciation, amortisation and impairment Salaries and other employee benefits 29#30RESILIENT LOAN PORTFOLIO COST OF CREDIT RISK RATIO 2.2% Entering the COVID-19 environment with a de-risked banking 1.6% sector 0.9% LOAN PORTFOLIO QUALITY NPL coverage ECL provision created for the full economic cycle in 1Q20 92.7% 90.5% 80.9% 76.3% 95.5% NPL coverage adjusted for collateral value 130.6% 129.9% 139.6% 128.8% 147.7% 1.8% 3.8% 3.3% 3.7% 2.4% 2.1% 546 395 318 301 253 0.0% 2017 2018 2019 2020 2021 Dec-17 Dec-18 Dec-19 INPLS, GEL millions Dec-20 Dec-21 NPLs to gross loans 30#31STRONG LOAN AND DEPOSIT PORTFOLIO GROWTH LOAN PORTFOLIO GEL MILLIONS DEPOSIT PORTFOLIO GEL MILLIONS +13.9% +19.8% 16,169 14,020 +0.1% +12.5% 14,038 14,192 11,931 9,398 10,077 55% 8,820 59% 8,134 8,389 59% 6,985 5,800 62% 61% 61% 8,500 8,612 69% 6,986 5,488 67% 7,349 45% 4,946 5,804 41% 5,521 39% 3,598 38% 41% 5,426 39% 2,646 33% 3,090 31% Dec-18 Dec-19 Dec-20 Dec-21 Dec-18 Dec-19 Dec-20 Dec-21 ■Net loans, GEL Net loans, FC Client deposits and notes, FC Client deposits and notes, GEL Growth on a constant currency basis 31#32WELL-DIVERSIFIED LOAN BOOK LOAN PORTFOLIO BREAKDOWN | DEC-21 Gross loans by segment Bank of Georgia standalone Total: GEL 15.8bln CIB loans, GEL 5,220 mln, 33.0% Retail loans, GEL 10,581 mln, 67.0% Retail Banking gross loans by product Total: GEL 10.6bln Corporate and Investment Banking gross loans by sector* Total: GEL 5.2bln Credit. Other cards and General 2.8% overdrafts 1.9% consumer loans 23.8% Mortgage loans 37.6% Micro and SME loans 33.9% Other 29.4% Manufacturing 20.4% Service 4.1% Hospitality 14.9% Real estate Electricity, gas & water supply 7.2% 14.9% Trade 9.1% * Sectors that represent more than 1% of total CIB gross loan portfolio: financial intermediation, mining & quarrying, transport & communication, construction, health & social work Starting from 3Q21, the Wealth Management business has been reclassified from Corporate and Investment Banking to the Retail Banking segment 32#33LOAN PORTFOLIO BREAKDOWN RETAIL BANKING | DEC-21 JSC Bank of Georgia standalone GEL MILLIONS 2.2% 10,581 231 2.8% 6,383 181 CORPORATE AND INVESTMENT BANKING | DEC-21 JSC Bank of Georgia standalone GEL MILLIONS 2.3% 5,220 119 1.2% 13 1,127 106 4,093 2.6% 4,198 1.2% 50 Loan portfolio Allowance for ECL ECL rate Loan portfolio FC GEL Allowance for ECL FC GEL ECL rate Amounts in GEL millions GEL loans* FC loans not exposed to FC risk FC loans exposed to FC risk Total RB Loan portfolio % of total RB loan portfolio % of total CIB Mortgages Consumer loans* SME & Micro CIB portfolio loan portfolio 6,383 666 3,532 10,581 60.3% 6.3% 2,010 491 2,613 115 1,759 60 1,127 21.6% 2,190 42.0% 33.4% 1,477 286 1,770 1,903 36.4% 100.0% 3,978 3,014 3,590 5,220 100.0% * Includes credit cards ** Starting from 3Q21, the Wealth Management business has been reclassified from Corporate and Investment Banking to the Retail Banking segment 33#34STRONG COMPETITIVE POSITION MARKET SHARE-GROSS LOANS MARKET SHARE-CUSTOMER DEPOSITS 38.8% 39.5% 39.0% 38.8% 41.2% 39.0% 40.4% 38.9% 33.5% 34.9% 34.9% 35.7% 36.3% 37.2% 33.9% 36.4% Dec-18 Dec-19 BOG Dec-20 Dec-21 Dec-18 Dec-19 BOG Dec-20 Peer bank Dec-21 Peer bank MARKET SHARE - LOANS TO INDIVIDUALS MARKET SHARE - DEPOSITS OF INDIVIDUALS 40.0% 41.2% 40.0% 39.4% 40.3% 40.3% 40.3% 39.0% 37.5% 38.8% 37.7% 38.6% 36.9% 37.9% 39.5% 40.3% Dec-18 Dec-19 Dec-20 Dec-21 BOG Peer bank Top two banks hold more than 70% of the market Dec-18 Dec-19 Dec-20 Dec-21 BOG Peer bank Bank of Georgia focuses on profitability, while maintaining strong competitive positions Market shares in deposits of and loans to individuals reflect the strength of Bank of Georgia's franchise Market data based on standalone accounts as published by the National Bank of Georgia 34#35STRONG LIQUIDITY AND FUNDING POSITIONS LIQUIDITY COVERAGE AND NET STABLE FUNDING RATIOS JSC Bank of Georgia standalone (Basel III liquidity) NET LOANS TO CUSTOMER FUNDS AND DFIs 136.7% 138.6% 137.5% 133.6% 118.4% 132.5% 132.5% 115.5% 115.2% 124.0% 120.1% 103.2% 101.2% 99.6% 100.0% 89.4% Dec-18 Dec-19 Dec-20 Dec-21 Dec-18 Liquidiy coverage ratio Net stable funding ratio Dec-19 Dec-20 Net loans to customer funds Net loans to customer funds and DFIs Excess liquidity maintained for risk mitigation purposes, on the back of the COVID-19 crisis, successfully deployed during the second and third quarters of 2021 Strong support from International Financial Institutions Dec-21 35#36WELL-ESTABLISHED FUNDING STRUCTURE | DEC-21 INTEREST-BEARING LIABILITIES Interest-Bearing Liabilities GEL 19.9bln WELL-DIVERSIFIED INTERNATIONAL BORROWINGS Debt European Investment Bank Borrowings securities European Bank 12.6% femtion and Devement issued 7.7% Other amounts owed to Cl 9.1% Client deposits & notes 70.6% Current accounts & demand deposits, 49.9% Time deposits, 50.1% IFC Black Sea Trade & Development EFSE EUROPEAN FUND FOR SOUTHEAST EUROPE FMO Finance for Development BORROWED FUNDS MATURITY BREAKDOWN* US$ MILLIONS 462 6.1% 2.3% 1.3% 2.1% 1.9% 0.5% 0.2% 0.1% 0.0% 297 162 70 174 165 36 101 92 12 6 147 2022 2023 2024 2025 2026 2027 2028 2029 2030 Senior loans Subordinated loans Eurobonds % of total assets * Converted at GEL/US$ exchange rate of 3.0976 at 31 December 2021 Bank Other debt Others securities, GEL borrowings, GEL 373mln, 280mln, 7.0% 9.3% DFIs, Eurobonds, GEL 1,239mln, 30.7% GEL 2,135min, 53.0% STRONG SUPPORT FROM IFIS ■ C.GEL 960 million undrawn long-term facilities attracted from DFIs at 31 December 2021 with up to twelve years of maturity Strong long-term funding pipeline to secure resources needed for the next 12 months Liquidity management: US$53.4 million Eurobonds due 2023 repurchased since July 2020 36#37STRONG CAPITAL ADEQUACY POSITION 37 NBG'S COVID-19 RESPONSE AND CURRENT UPDATE Release of capital buffers: In April 2020, as part of its updated supervisory plan in response to the COVID-19 pandemic, the NBG released Pillar 2 and conservation buffers, reducing the minimum regulatory capital requirements at the time Capital distribution: During the period that banks partially or fully used the released buffers, banks could not distribute capital in any form General COVID-19-related loan loss provision: The Bank recorded c.GEL 400 million general provision (c.3.3% of the Bank's lending portfolio) under the Bank's local regulatory accounting basis in March 2020, reflecting the NBG's expectations of estimated credit losses on the Bank's lending book for the full economic cycle Subsequently, the NBG has announced a released capital buffers rebuild plan and has updated the timeline for the phase-in of additional Basel III capital requirements for the banking sector Rebuild of capital buffers: As a result of robust operating performance and strong internal capital generation, the Bank has confirmed to the NBG that since May 2021, it no longer uses or expects to use any of the Pillar 2 or conservation buffers that were waived in 2020. Consequently, there is no longer any regulatory restriction for Bank of Georgia on making any capital distributions Capital distribution: In August 2021, the Group declared an interim dividend of GEL 1.48 per ordinary share for the period ended 30 June 2021, paid to shareholders on 5 November 2021. The Board intends to recommended a final dividend for 2021 of 2.33 GEL per ordinary payable in British Pounds Sterling at the prevailing rate. This will make a total dividend paid in respect of the Group's 2021 earnings of GEL 3.81 per share. In addition, the Board aims to implement a share buyback and cancellation programme CAPITAL ADEQUACY RATIOS 18.1% 18.6% 19.1% 19.2% 19.3% 17.4% 17.3% 17.6% 15.3% 13.6% 13.3% 11.5% 10.6% 12.0% 12.0% 9.9% 9.9% 12.4% 14.4% 14.6% 12.8% 12.5% 15.0% 13.2% 11.2% 10.4% 8.3% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 ■CET1 Capital Adequacy Ratio ■Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio MINIMUM REGULATORY REQUIREMENTS 17.1% 17.7% 17.3% 17.7% 13.3% 13.3% 13.3% 13.8% 13.8% 13.4% 12.2% 11.1% 13.2% 13.6% 11.0% 11.5% 10.1% 9.8% 8.7% 8.7% 8.7% 9.2% 7.4% 7.8% 6.9% 6.9% 6.9% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 ■CET1 Capital Adequacy Ratio ■Total Capital Adequacy Ratio ■Tier I Capital Adequacy Ratio#38EVOLUTION OF CAPITAL RATIOS AND UPDATE ON MINIMUM CAPITAL REQUIREMENTS 38 EVOLUTION OF CAPITAL RATIOS DURING 2021 Capital ratios DEC-20 2021 profit Business growth appreciation GEL Dividend Tier 2 facility impact Capital ratios DEC-21 Potential impact of a 10% GEL devaluation CET1 capital adequacy ratio 10.4% 5.1% Tier I capital adequacy ratio 12.4% 5.1% -2.4% -2.6% 0.5% -0.4% 13.2% -0.8% 0.5% -0.4% 15.0% -0.7% Total capital adequacy ratio 17.6% 5.1% -3.2% 0.4% -0.4% -0.2% 19.3% -0.6% EXPECTED MINIMUM CAPITAL REQUIREMENTS FOR 2022-2023 Bank of Georgia's minimum capital requirements, reflecting the full loading of Basel III capital requirements, to be completed in 2023, which remain subject to ongoing annual regulatory reviews, are currently expected to be as follows: DEC-22 DEC-23 CET1 capital requirement 11.9% 12.2% Tier I capital requirement 14.2% 14.6% Total capital requirement 17.8% 17.8%#39STRONG CAPITAL ADEQUACY POSITION BOG EQUITY VS. CET1 REG. CAPITAL | DEC-21 GEL MILLIONS RISK-WEIGHTED ASSETS GEL MILLIONS +12.1% % of RWAs 13.2% 1.5% 0.7% 1.5% +4.2% 271 3,040 267 121 2,381 16,040 16,516 16,599 17,248 17,978 2.2% NBG CET1 Loan capital Other provisioning provisioning deductions* methodology methodology difference difference IP BOG equity (IFRS) Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 * Revaluation reserve, investments in non-financial subsidiaries and intangible assets Existing additional capital buffers (c.2.2% of risk-weighted assets) reflect the differences in the provisioning methodology between the NBG and IFRS 9 The NBG plans to transition to IFRS-based financial reporting during 2022 39#40CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY Q921 4Q21 AND FY21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 40#41GEORGIA AT A GLANCE GENERAL FACTS ■ ■ Area: 69,700 sq. km Population (2021): 3.7 million Life expectancy: 74 years Official language: Georgian Literacy: 100% Capital: Tbilisi Currency (code): Lari (GEL) ECONOMY Nominal GDP 2021E: GEL 60.Obln (US$ 18.7bln) Real GDP growth rate 2017-2021E: 4.8%, 4.8%, 5.0%, -6.8%, 10.6% Real GDP 2012-2021E annual average growth rate: 3.9% GDP per capita 2021E (PPP): US$ 17,391 Annual inflation (EOP) 2021: 13.9% External public debt to GDP 2021E: 39.9% Hamburg Herdam Dusseldorf GERMANY Frankfurt Penza POLAND BELARUS POrel Leipzig UKRAINE CZECH REP SLOVAKIA Munich Turin LIECHTENSTEIN WICZERLAND MONA Milan Genog G TIA HERZEG MARNO nice SAN CAN AUSTRIA MOLDOVA HUNGARY SLOVENIA ROMANIA BOSNIA YUGOSLAVIA ALANIA MACEDONIA Nop ICALY Salon Polermo KAZA Elista Astro Мајкор Nafak Grozny BULGARIA Black Sea Macha GEORGIA ARMENIA AZERBAUA TURKEY AZER SOVEREIGN CREDIT RATINGS 41 Agency Rating Outlook Affirmed MOODY'S Ba2 Stable September 2021 Fitch Ratings BB Stable February 2022 S&P Global BB Negative August 2021#42GROWTH-ORIENTED REFORMS ECONOMIC FREEDOM INDEX | 2022 Estonia Lithuania. Source: Heritage Foundation EASE OF DOING BUSINESS | 2020 New Zealand 1 Singapore Denmark USA Georgia UK Norway Lithuania Estonia 6189 11 18 Source: WB-IFC Doing Business Report #1 in Europe and Central Asia Latvia Czech Rep. UK USA Georgia Bulgaria Poland Latvia Germany Kazakhstan Russia Turkey Azerbaijan Poland Czech Rep. Armenia Ukraine 19 22 25 28 33 34 40 41 47 Romania Hungary France Italy Armenia Kazakhstan Azerbaijan Turkey Russia Ukraine 64 7 17 18 16 24 25 26 29 39 47 18 52 48 18th among 45 countries in the European region 57 58 64 75 107 113 130 42 GLOBAL CORRUPTION BAROMETER | 2017 Germany Georgia Poland Czech Rep. Slovakia Latvia Montenegro Bulgaria Turkey Lithuania Armenia Bosnia & Herz. Romania Kazakhstan Russia Ukraine Azerbaijan Moldova 3% Source: Transparency International 7% 7% % admitting having paid a bribe last year 9% 19 12% 23 15% Georgia is on par with 24 BUSINESS BRIBERY RISK | 2021 Norway 2 Sweden UK Estonia Singapore USA Lithuania 3 97 11 Source: Trace International 16% the EU member states France 26 17% Georgia 29 18% Latvia 31 24% Czech rep. 39 Poland 24% 46 Armenia 67 47 27% Bulgaria 71 29% 29% 34% 38% Ukraine Kazakhstan Turkey Russia 104 127 129 134 38% Azerbaijan 140 42% Uzbekistan 147#43Ukraine 2.1% 1.6% 0.5% Azerbaijan -5 -10 -15 DIVERSIFIED AND RESILIENT ECONOMY GROSS DOMESTIC PRODUCT 250505 15 6.4% 4.4% 4.8% 4.8% 5.0% 10 3.6% 3.0% 2.9% Nominal GDP, US$ bn 2016 COMPARATIVE REAL GDP GROWTH RATES, % (2010-2019 AVERAGE) Source: IMF, Geostat 5.9% 4.9% 4.5% 4.5% 3.6% 3.6% 3.7% 3.1% Russia 2.4% 2.4% 2.6% Bulgaria Czech Rep. Latvia Romania Lithuania Poland Estonia Moldova Armenia Source: Geostat 10.6% 12% Accomm. & food service 3.3% Other 12.4% 9% Arts & entertainment 6% 3% 4.1% Education 0% 4.2% Healthcare -3% 4.8% -6% Financial inter. -6.8% -9% 5.3% Real GDP growth, % Transport & storage 6.1% Public admin. 6.6% Agriculture 7.5% Georgia Turkey GDP PER CAPITA DIVERSIFIED NOMINAL GDP STRUCTURE | 9M21 Trade 16.2% Source: Geostat Manufacturing 11.4% Real estate 10.2% Construction 7.7% Source: IMF, Geostat 17,391 9,799 10,610 11,583 12,100 12,855 13,596 14,582 15,608 14,849 7,542 8,322 3,233 4,023 4,422 4,624 4,739 4,013 4,062 4,359 4,722 4,696 4,256 5,017 Nominal GDP per capita, US$ ■GDP per capita, PPP 43#44Azerbaijan CAPITAL AND PRODUCTIVITY - MAIN ENGINES OF GROWTH SINCE 2004 OVERALL CONTRIBUTION OF CAPITAL, LABOR, AND TOTAL FACTOR PRODUCTIVITY (TFP) TO GROWTH, 2010-2020 CONTRIBUTIONS OF CAPITAL, LABOR, AND TFP TO GROWTH DURING PERIODS 44 Source: Geostat, Galt &Taggart Total factor productivity 1.8% Source: Geostat, Galt &Taggart 10% 8% 6% Capital stock 2.0% 4% 2% 0% -2% 2004-2007 Labor force 0.1% REAL GDP GROWTH PROJECTIONS, 2022 2.3% 2.8% Russia 2008-2009 2010-2015 TFP Labor force Capital stock 2016-2020 REAL GDP GROWTH: GEORGIA, MIDDLE EAST AND CENTRAL ASIA, EMERGING & DEVELOPING EU Source: IMF 5.8% 12% 3.3% 3.6% 3.8% 4.1% 4.2% 4.5% 4.5% 4.6% 4.8% 5.2% 5.2% 5.4% 10% Georgia Middle East & Central Asia 8% 6% 4% 2% 0% -2% Emerging & Developing EU -4% Turkey Ukraine Kazakhstan Lithuania Estonia Armenia Czech Rep. Poland Romania Latvia Moldova Uzbekistan Georgia -6% -8% 2014 2015 2016 2017 2018 2019 2020 2021E 2022F 2023F Source: IMF, Geostat 2024F 2025F 2026F#45FURTHER JOB CREATION IS ACHIEVABLE HIRED AND SELF-EMPLOYED, 000' PERSONS Source: Geostat EMPLOYED PERSONS AND UNEMPLOYMENT RATE Source: Geostat 1,400 27.2% 27.2% 26.7% 26.4% Note: Labor force statistics presented according to the updated ILO standards 1,200 30% 23.0% 21.9% 21.7% 21.6% 1,000 25% 1,300 19.2% 17.6% 18.5% 800 20% 1,200 15% 600 1,255 1,308 1,295 1,287 1,296 1,296 10% 400 1,100 1,168 1,183 1,212 1,198 1,242 5% 200 1,000 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Employed, 000' persons Unemployment rate, % EMPLOYMENT BY SECTOR, 000' PERSONS 845 2010 2011 2012 2013 2014 2015 2016 Self-employed, 000' persons 2017 2018 2019 Hired, 000' persons 2020 EMPLOYMENT: PUBLIC AND PRIVETE SECTORS, Source: Geostat 000' PERSONS 396 Source: Geostat 153.8 153.9 147.0 141.3 289.5 253.9 247.4 246.3 569 582 585 604 598 551 408 443 472 487 537 843.6 888.5 901.4 854.3 302 281 287 252 259 287 272 284 300 300 295 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 Services (incl. construction) Agriculture Industry Public sector (hired workers) 2016 2017 2018 2019 2020 Non-public sector (hired workers) 45#462010 2011 2012 2013 2014 PUBLIC DEBT FISCAL DEFICIT Source: MOF, Geostat, forecasts as of 2022 budget law 0% -2.0% -1.9% -2.4% -2.7% -2.1% -2% -1.7% -2.6% -2.8% -2.3% -4% -6% -5.3% -8% -10% -12% 2016 2017 Note: Deficit calculated as net lending / borrowing minus budget lending 2018 -9.3% -2.7% -2.5% -3.0% -4.4% -6.1% 2019 2020 2021E 2022F 2023F 2024F 2025F PUBLIC DEBT AS % OF GDP Source: MOF, Geostat, forecasts as of 2022 budget law 180% 70% 60% 50% 40% 30% 20% 10% 70% Public debt/GDP 150% capped at 60% 60% 49.6% 47.7% 120% 50% 90% 40% 39.9% 60% 30% 33.9% 30% 20% 0% 10% Total public debt to GDP, % External public debt to GDP, % 2021E 2022F 2023F 2024F 2025F Multilateral 58% Domestic 20% External 80% BREAKDOWN OF PUBLIC DEBT Source: MoF, as of 31 December 2021 Bilateral 17% Eurobond 5% GROSS GOVERNMENT DEBT/GDP | 2022F Russia Kazakhstan Turkey _ Moldova Uzbekistan Belarus Lithuania Latvia Czech rep. Ukraine Romania 51.1% Poland| Georgia Armenia Slovakia Slovenia Hungary Montenegro Croatia Canada Spain Singapore Italy External public debt portfolio weighted average interest rate 0.97% Contractual maturity 20.8 years Source: IMF, MoF 46#47Armenia INVESTING IN INFRASTRUCTURE AND SPENDING LOW ON SOCIAL BUDGET EXPENDITURES EXPENDITURE BREAKDOWN: CURRENT VS. CAPITAL Source: MOF, Geostat, forecasts as of 2022 budget law Source: MOF, forecasts as of 2022 budget law 25,000 50% 100% 80.0% 81.7% 76.0% 78.1% 80.0% 72.5% 73.4% 74.2% 73.1% 72.2% 75.2% 76.0% 71.9% 34.9% 20,000 15,000 33.1% 40% 80% 32.3% 29.4% 29.4% 27.6% 28.4% 28.6% 29.4% 29.4% 31.5% 28.2% 27.7% 30% 60% 10,000 20% 40% 27.5% 26.6% 24.0% 25.8% 26.9% 27.8% 28.1% 20.0% 18.3% 21.9% 20.0% 24.8% 24.0% 5,000 10% 20% о 0% 0% Expenditures (current + capital), GEL mn Expenditures (current + capital) as % of GDP GOVERNMENT SOCIAL EXPENDITURE AS % OF GDP Source: IMF, MOF Georgia Lithuania Current expenditures 25% 10% 2019 2020E 2021F 2019 2020E ■2021F 7.9% 19.4% 20% 17.4% 17.6% 8% 16.5% 6.5% 15.7% 14.6% 14.8% 15% 6% 4.9% 10.7% 4.4% 4.6% 10% 8.0% 3.4% 3.7% 4% 2.9% 3.0% 5% 2% 0% 0% GOVERNMENT CAPITAL EXPENDITURE AS % OF GDP Capital expenditures and net lending 2021F Source: IMF, MOF 2022F 47#48DIVERSIFIED FOREIGN TRADE IMPORTS OF GOODS AND SERVICES Source: NBG - BOP statistics 48 EXPORTS OF GOODS AND SERVICES Source: NBG - BOP statistics 10 20 12 11.1 10.8 12 10.1 9.3 9.2 8.7 8.5 9.4 9.5 2.2 2.4 9.0 10 8.9 1.7 7.6 8.0 8 00 7.5 1.4 1.6 2.0 1.4 6.2 1.0 0.8 1.7 1.7 8 7.2 1.3 7.0 6.1 0.5 1.2 6.1 6.0 1.1 0.9 a 5.3 6 5.2 1.1 0.4 0.3 3.6 3.9 5.9 0.9 3.1 1.0 1.0 4.0 0.7 4 7.7 7.7 8.3 8.6 8.7 3.1 3.1 2.6 2.5 6.3 6.7 7.0 6.8 7.4 7.5 4 0.5 2.5 2.5 3.3 5.1 1.9 2 4.3 2 1.6 2.0 2.6 3.0 3.0 3.1 3.3 4.0 4.5 4.6 1.6 O 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ■Goods imports, US$ bn ■Services imports, US$ bn ■Services exports, US$ bn Goods exports, Geo-originated, US$ bn Re-exports, US$ bn OIL IMPORTS IMPORTS BY COUNTRY, 2021 EXPORTS BY COUNTRY, 2021 Source: Geostat Source: Geostat 1,000 Other 19.3% EU 22.9% Armenia 4.2% Ukraine Uzbekistan 2.0% Other 11.9% EU 16.9% 800 Kazakhstan 600 2.3% China 400 4.5% Azerbaijan Turkey 18.1% USA 4.6% Armenia 6.1% 14.5% 200 о -200 Russia -400 14.4% 6.0% USA 6.2% China 8.6% Russia 10.2% Ukraine 7.2% Turkey 7.6% Azerbaijan 12.5% Source: Geostat ارا! I Oil imports, US$ mn. Oil imports, % change, y/y 100% 80% 60% 40% 20% 0% -20% -40%#49DIVERSIFIED SOURCES OF CAPITAL FOREIGN DIRECT INVESTMENTS FDI up 3.2% y/y to US$ 728.4mn in 9M21 2.5 2.0 1.5 7.1% 7.5% 6.4% 6.0% 1.0 0.5 0.0 FDI, US$ bn 12.2% 10.4% 11.6% 10.9% Remittances, US$ bn Remittances as % of GDP FDI, as % of GDP TOURISM REVENUES Source: Geostat Source: NBG, Geostat 4.0 18% 15% 3.2 Tourism revenues up 11x y/y to US$ 114mn in Jan-22, representing 69.3% of Jan-19 level 24% 16.6% 18.3% 18.7% 20% 13.9% 12% 12.5% 16% 2.4 7.5% 7.6% 10.0% 10.1% 9% 8.6% 12% 1.6 3.6% 6% 5.4% 6.3% 6.7% 8% 0.8 3.4% 3% 4% 0% 0.0 0% REMITTANCES - STEADY SOURCE OF EXTERNAL FUNDING Source: NBG, Geostat PUBLIC EXTERNAL BORROWING FOR CAPEX, % OF GDP Source: MOF, Geostat 2.8 Remittances up 12.7% y/y to US$ 168.8mn in Jan-22 12.6% 14% 7% 11.9% 5.8% 2.4 9.9% 12% 6% 5.4% 2.0 8.6% 8.4% 8.1% 8.6% 9.0% 8.2% 8.5% 2.3 10% 7.2% 7.6% 5% 1.6 1.9 8% 4% 1.7 1.2 1.5 S 1.6 1.4 6% 3.2% 3.1% 3.0% 3.3% 3.1% 1.3 1.3 1.4 3% 2.8% 0.8 1.1 1.1 1.2 2.5% 2.0% 4% 2% 0.4 2% 1% 0.0 0% 0% 2021E Tourism revenues, US$ bn Tourism revenues as % of GDP 2014 2015 2016 2017 2018 2019 49#50CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT BALANCE (% OF GDP) Source: NBG, Geostat 30% Goods, net Services, net Income, net Transfers, net CA deficit net FDI 20% 10.5% 6.0% 6.5% 10% 4.6% 5.3% 8.1% 9.5% 8.2% 5.6% 6.0% 3.5% 4.0% 3.6% 0% -10% -5.6% -9.8% -8.0% -6.8% -5.5% -20% -12.2% -11.4% -10.2% -11.8% -12.5% 12.4% 12.1% -9.7% 12.1% -30% -40% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9M20 9M21 FDI AND CAPITAL GOODS IMPORT BUILDING INTERNATIONAL RESERVES, US$ BN Source: Geostat 14% 12% 12.2% 11.6% 10.9% 10.4% Source: NBG 4.3 3.9 3.5 10% 7.1% 7.5% 8.1% 8.5% 3.3 8.0% 2.8 2.9 8% 7.6% 2.8 3.0 2.7 2.8 6.5% 6.9% 2.5 6% 7.2% 6.4% 7.2% 7.9% 8.8% 7.8% ... 2.1 2.3 7.5% 7.6% 5.5% • 6.0% 1.4 1.5 4% 5.7% 2% 3.6% 0% FDI to GDP, % - Capital goods imports to GDP, % 50#51о 09 Jan-14 May-14 Sep-14 Jan-15 140 120 100 80 0% -2% 14% 12% 10% 8% 6% 4% Jan-14 May-14 Sep-14 Jan-15 May-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 ANNUAL INFLATION Headline inflation WORLD COMMODITY PRICES -Energy Non-energy May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-... Sep-20 Jan-21 May-21 Sep-21 Jan-22 Jul-17 Nov-17 INFLATION TARGETING SINCE 2009 Mar-18 Jul-18 Nov-18 Apr-19 Aug-19 Dec-19 Apr-20 Aug-20 Jan-21 May-21 Sep-21 Jan-22 Core inflation 5.6% 6% %7 -2% 0% 2% MONTHLY INFLATION Source: Geostat Source: Geostat 13.9% 14% 5% 4% 12% 10% 3% 8% Jan-14 May-14 Sep-14 Note: Jan2014=100 Source: World Bank AVERAGE INFLATION 120 140 100 80 60 40 20 о Jan-14 May-14 Sep-14 Jan-15 May-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jul-17 Nov-17 Mar-18 Jul-18 Nov-18 Apr-19 Aug-19 Dec-19 Apr-20 Aug-20 Jan-21 May-21 Sep-21 Jan-22 Jan-15 May-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jul-17 Nov-17 Mar-18 Jul-18 Nov-18 Apr-19 Aug-19 Dec-19 Apr-20 Aug-20 Jan-21 May-21 Sep-21 Jan-22 Source: Geostat 10.5% 12% 10% W 1% 1.1% 2% 551 51#52Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jan-14 May-14 Sep-14 Jan-15 May-15 INTERNATIONAL RESERVES INTERNATIONAL RESERVES AT ADEQUATE LEVEL Source: NBG 4.0 International reserves at US$ 4.1bn in Jan-22 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 MONETARY POLICY RATE Gross international reserves, US$ mn Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jul-17 Nov-17 Mar-18 Jul-18 Nov-18 Apr-19 Aug-19 Dec-19 Apr-20 Aug-20 Jan-21 May-21 Sep-21 Jan-22 Source: NBG 11% NBG increased policy rate by 250bps to 10.5% in 2021 (+50bps in March, +100bps in April, +50bps in August and 10.5% 11% 75% 10% +50bps in December) 10% 70% 9% 65% 9% 8% 7% 8% 60% 7% 55% %9 6% 50% 5% 5% 45% Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Jan-14 CENTRAL BANK'S INTERVENTIONS NBG sold $916.1mn in 2020 (of which US$ 42.9mn out 200 of FX auction) 174 100 50 40 20 09.09 Jan-20 Feb-20 Mar-20 Apr-20 Apr-20 May-20 May-20 Jun-20 Jun-20 Jul-20 Aug-20 Sep-20 Sep-20 Oct-20 OZ-120 Nov-20 OZ-ARN Dec-20 Dec-20 120 80 50 40 40 Jan-21 IZ-Upc Feb-21 8 Mar-21 LOAN AND DEPOSIT DOLLARISATION Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Nov-15 Mar-16 Jul-16 Loan dollarization Nov-16 Mar-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Jan-19 May-19 Sep-19 83 Source: NBG NBG sold $354.9mn in 2021 (of which US$ 22.Omn out of FX auction) 60 30 Apr-21 Apr-21 May-21 May-21 Jun-21 Jul-21 301-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Source: NBG 75% 70% 65% 60.0% 60% 55% 50% Jan-20 May-20 Sep-20 Dec-20 Apr-21 Deposit dollarization 50.6% 45% Aug-21 Dec-21 52#5340% 30% 20% 10% 0% -10% Jan-14 Apr-14 Aug-14 FX RESERVES FLOATING EXCHANGE RATE - POLICY PRIORITY Source: NBG 5.0 1.55 1.8 1.42 1.30 1.36 1.31 1.6 4.0 1.25 1.23 1.24 1.27 1.16 1.29 1.4 1.03 4.3 3.9 1.2 3.0 3.5 3.3 1.0 2.0 2.8 2.9 2.8 2.7 3.0 2.8 0.8 2.5 2.3 0.6 1.0 0.4 0.2 0.0 0.0 I Official FX reserves, US$ bn M2 multiplier M2 AND ANNUAL INFLATION Dec-14 Apr-15 Aug-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 M2, % change, y/y (LHS) Jan-19 May-19 Sep-19 Jan-20 Annual inflation, eop (RHS) Source: NBG 20% 40% 15% 30% 10% 20% 5% 10% 0% 0% -5% -10% May-20 Sep-20 Dec-20 Apr-21 Aug-21 Dec-21 Jan-14 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Nov-15 Mar-16 Jul-16 Jan-14 Apr-14 Aug-14 ៩ 8 ៖ ៩ ៩ ៩ ៩ 100 120 130 Nov-14 Mar-15 Jun-15 Oct-15 Jan-16 M2 AND USD/GEL M2, % change, y/y (LHS) NOMINAL AND REAL EFFECTIVE EXCHANGE RATE (JAN2014=100) May-16 Aug-16 Real effective exchange rate GEL depreciation Dec-16 Apr-17 Jul-17 Nov-17 GEL appreciation Jun-18 Oct-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Dec-20 Apr-21 Aug-21 GEL/USD, % change, y/y (RHS) Dec-21 Feb-18 Jun-18 Sep-18 Jan-19 Apr-19 Aug-19 Dec-19 Source: NBG 130 120 +17.9% y/y 110 +20.4% y/y 70 Nominal effective exchange rate Mar-20 Jul-20 Oct-20 Feb-21 May-21 Sep-21 Dec-21 Source: NBG 40% 30% 20% 10% 0% -10% 08 06 100 53#54SUMMARY GROWING AND WELL-CAPITALISED BANKING SECTOR Prudent regulation and oversight ensuring financial stability Strong resilience to both domestic and external shocks, without a single bank going bankrupt No nationalisation of banks and no government ownership since 1994 Source: National Bank of Georgia, Geostat BANKING SECTOR LOANS TO GDP, 2020 Source: World Bank, NBG Czech Rep. 53.2% Bosnia & Herz. Croatia 54.2% 59.8% Russia Estonia 60.0% 64.8% Slovakia Israel Armenia Brazil 67.2% 68.6% 69.1% 70.2% Turkey 70.9% Georgia 77.6% Greece 82.1% Malta Austria Portugal 83.6% 93.0% 101.1% BANKING SECTOR ASSETS, LOANS AND DEPOSITS Source: NBG × 3 666 88 d 30 20 40 70 60 2003 2004 2005 2006 2007 2008 23.6% CAGR 2013 2014 2015 2016 2017 2018 2019 2020 2021 Assets, GEL bn ■Loans, GEL bn Deposits, GEL bn NON-PERFORMING LOANS, LATEST 2021 Hungary Source: IMF 0.8% Lithuania 0.9% Georgia 1.9% Czech Rep. 3.0% Latvia 3.0% Poland 3.4% Turkey 3.4% Armenia Romania Kazakhstan Bulgaria Uzbekistan Bosnia & Herz. Belarus Croatia Russia 3.4% 3.6% 4.8% 5.1% 5.5% 5.5% 5.6% 6.3% 7.5% 60.6 43.0 37.2 54#55180 160 140 120 100 80 60 40 1Q07 2Q07 CREDIT GROWTH DYNAMICS BANKING SECTOR CORPORATE & RETAIL LOANS TO GDP MORTGAGE LOANS Source: NBG, Geostat REAL ESTATE PRICE INDEX 2Q09 3Q09 Source: NBG 9,197 132,900 Retail loans to GDP 8,624 119,300 70% Corporate loans to GDP 106,370 7,048 28,900 60% 92,980 39% 6,031 29,600 37% 4,863 50% 33% 5,035 31,720 33% 40% 27% 30% 35,990 4,453 23% 30% 20% 4,604 17% 11% 12% 13% 89,700 20% 74,650 104,00 O 38% 10% 17% 17% 18% 19% 21% 24% 26% 25% 27% 31% 35% 4,334 3,589 56,990 2,595 1,427 0% 2018 2019 2020 2021 2018 2019 2020 2021 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E 60077 1Q10 Inflation adjusted real estate price index (2010-100, GEL) Real wage index (2010-100, GEL) 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 FX-denominated mortgage loans, GEL mn ■GEL-denominated mortgage loans, GEL mn ◆ Total mortgage loans, GEL mn Number of mortgage loans in FX ■Number of mortgage loans in GEL Total number of mortgage loans Source: NBG, Geostat 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 55#560% Armenia 10% Russia INFLATION: GEORGIA AND PEERS Source: Statistics Offices 40% End-2020 End-2021 30% 20% 13.9% 12.0% 10.0% 10.0% 7.7% 8.4% 8.4% Kazakhstan Belarus Ukraine Azerbaijan Georgia Turkey 0% Euro Azerbaijan GEORGIA VS REGION: FX, INFLATION, POLICY RATE Armenia 0.9% 0.1% -0.3% -3.1% -7.5% -11.4% -12.9% -16.7% -17.7% Moldova Georgia CURRENCY VS. US$ Source: Bloomberg Note: US$ per regional currencies; +/- appreciation/depreciation period 1 January 2020 - 31 December 2021 Kazakhstan 36.1% 20% End-2020 End-2021 15% 10% 7.3% 5% Azerbaijan Armenia Russia Ukraine Russia Belarus -54.3% Turkey MONETARY POLICY RATE: GEORGIA AND PEERS Source: Central Banks 7.8% 8.5% 9.0% 9.3% 9.8% Ukraine Belarus Kazakhstan Georgia Turkey 14.0% 10.5% 56#57RECENT TREND - REAL GDP AND ITS COMPONENTS REAL GDP GROWTH BY QUARTER, % CHANGE YOY CONTRIBUTION TO REAL GDP GROWTH Source: Geostat Source: Geostat, Galt & Taggart 35% 28.9% 30% Consumption Investment 30% 25% 25% Net export Real GDP growth 20% 20% 15% 15% 9.5% 6.8% 10% 4.5% 4.4% 7.2% 10% 6.0% 5.2% 5.4% 4.6% 5% 2.2% 3.3% 5% 9.1% 0% 3.4% 4.5% 4.1% 3.6% 3.2% 4.8% 0% 1.8% -6.8% -5% -5% -4.1% -10% -10% -7.4% -15% -15% -20% -14.5% -20% 1Q16 1Q78 2Q18 2018 3018 3Q18 6018 1Q20 2Q20 3Q20 4Q20 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 UNEMPLOYMENT RATE 25% 21.7% 18.4% 18.3% 18.6% 19.7% 20% 15% 10% 5% 0% Source: Geostat 22.1% 40% 21.9% 18.3% 20.4% 19.5% 35% 17.3% 16.8% 16.6% 18.3%17.0% 19.0% 30% 25% 20% 15% 10% 5% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 0% 1Q16 SAVINGS AND INVESTMENTS TO GDP ■Savings Source: Geostat Investments 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 3Q21 57#58600 400 200 о -200 -400 -600 -800 Jan-19 Apr-19 Jul-19 Trade deficit, US$ mn 400 300 200 100 о -100 -200 -300 Jan-19 Apr-19 Jul-19 FOREIGN TRADE EXPORTS UP 47.6% Y-0-Y IN JAN-22 Oct-19 Jan-20 Apr-20 Jul-20 Exports, US$ mn % change y/y TRADE DEFICIT UP 32.5% Y-o-Y IN JAN-22 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 % change y/y Oct-21 Oct-20 Jan-21 Apr-21 Jul-21 Source: Geostat 1,000 80% 800 47.6% 60% 600 40% 400 20% 200 о 0% -200 -20% -40% -400 -600 -60% Oct-21 Jan-22 Jan-19 Source: Geostat 60% 32.5% 40% 20% 0% -20% -40% Gold 1.5% -60% Pharm. -80% Jan-22 2.3% Apr-19 Jul-19 Oct-19 IMPORTS UP 38.5% Y-o-Y IN JAN-22 Jan-20 Apr-20 Imports, US$ mn EXPORTS BY COMMODITY, 2021 Jul-20 Oct-20 Jan-21 Apr-21 % change y/y Jul-21 Source: Geostat Copper 19.2% Other 36.7% Nuts Wine 2.8% 5.6% Spirits Fertilizers 2.8% 3.7% Mineral waters 3.3% Cars 10.8% Ferro-alloys 11.3% Oct-21 Source: Geostat 75% 60% 38.5% 45% 30% 15% 0% -15% -30% Jan-22 -45% 58#59BENEFITS FROM DIVERSIFIED ECONOMIC LINKAGES EXPORTS, TOURISM, REMITTANCES AND FDI BY COUNTRY IN 2021, AS % OF TOTAL ECONOMIC LINKAGES BREAKDOWN IN 2021, SHARE IN EACH CATEGORY Exports Tourism FDI Remittances EU 17.5% 13.7% 75.2% 41.6% Other countries 32.1% EU 28.4% Russia 14.4% 12.2% 7.3% 17.5% Turkey 7.6% 9.8% 10.4% 4.4% Azerbaijan 12.5% 3.5% -0.4% 3.6% Ukraine 7.2% 13.2% 0.9% 3.9% Armenia 3.6% Russia 14.3% Armenia 6.1% 2.4% 0.8% 0.5% Ukraine 6.7% Azerbaijan Turkey 7.7% Other countries 34.7% 45.3% 5.9% 28.4% 7.3% Source: Geostat, NBG, GNTA Note: EU includes EU countries and the UK Source: Geostat, NBG, GNTA Note: EU includes EU countries and the UK FDI is for 9M21. Negative investment means a sale of shares or distributed profit 59#60CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY Q921 4Q21 AND FY21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | SEGMENT RESULTS 60#61RETAIL BANKING HIGHLIGHTS Segments 1 2 BANK OF GEORGIA Mass Retail SOLO Premium Banking (SOLO & WM*) 4 BANK OF GEORGIA BUSINESS MSME Active clients** 1,500 k 72k 64k Loans GEL 3,592 mln GEL 3,034 min GEL 3,955 mln Deposits GEL3,887 mln GEL 4,518 mln GEL 1,153 mln Branches 194 16 1 At 31 December 2021 for JSC Bank of Georgia standalone Starting from 3Q21, the Wealth Management business has been reclassified from Corporate and Investment Banking to the Retail Banking segment, under SOLO - Premium Banking. The comparative periods have been restated accordingly ** Active individual customer - an individual who used the Bank's any channel at least once, or performed at least one debit transaction, or was a payroll customer, or had at least one active credit product, or had any type of deposit with a balance above a certain threshold during the last three months. Active business customer - a legal entity that had at least one active credit product, or performed at least one debit transaction, or had any type of deposit with a balance above a certain threshold (varying for micro, SME, or corporate clients) during the last three months 61#62RETAIL BANKING HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS Change Change Change GEL thousands, unless otherwise noted 4Q21 4Q20 3Q21 2021 2020 y-o-y q-o-q y-o-y Net interest income Net fee and commission income Net foreign currency gain Net other income 161,161 130,418 23.6% 147,155 9.5% 582,525 497,155 17.2% 50,116 34,976 43.3% 46,685 7.3% 178,928 121,973 46.7% 17,234 14,057 22.6% 18,805 -8.4% 58,139 59,677 -2.6% 3,527 13,987 -74.8% 3,477 1.4% 25,869 24,755 4.5% Operating income 232,038 193,438 20.0% 216,122 7.4% 845,461 703,560 20.2% Salaries and other employee benefits (59,875) (47,363) 26.4% (52,888) 13.2% (205,055) (176,243) 16.3% Administrative expenses (32,221) (24,942) 29.2% (25,846) 24.7% (100,393) (81,749) 22.8% Depreciation, amortisation and impairment (21,622) (18,122) 19.3% (19,925) 8.5% (80,127) (70,151) 14.2% Other operating expenses (1,078) (1,112) -3.1% Operating expenses (114,796) (91,539) 25.4% Profit/(loss) from associate 128 154 -16.9% Operating income before cost of risk 117,370 102,053 15.0% (435) (99,094) 223 117,251 147.8% 15.8% -42.6% (2,595) (2,886) -10.1% (388,170) (3,781) (331,029) 17.3% 0.1% 453,510 Cost of risk (20,003) (19,046) 5.0% (10,587) 88.9% (72,352) 782 373,313 (183,160) NMF 21.5% -60.5% Net operating income before non-recurring items 97,367 83,007 17.3% 106,664 -8.7% 381,158 190,153 100.4% Net non-recurring items (11) 149 NMF (338) -96.7% 20 (39,898) NMF Profit before income tax expense 97,356 83,156 17.1% 106,326 -8.4% Income tax expense (7,977) (5,340) 49.4% (10,375) -23.1% Profit 89,379 77,816 14.9% 95,951 -6.8% 381,178 (33,036) 348,142 150,255 153.7% (6,137) NMF 144,118 141.6% RB LOANS AND LOAN YIELD RB CLIENT DEPOSITS AND COST OF DEPOSITS 15.0% 12.8% 11.4% 11.3% 50.7% 44.1% 45.1% 40.1% 49.3% 2018 2.9% 2.9% 2.6% 2.6% 75.3% 72.9% 73.1% 69.6% 59.9% 24.7% 2018 27.1% 26.9% 30.4% 2019 2021 55.9% 54.9% 2019 2020 2021 Net loans, FC Net loans, GEL Currency-blended loan yield Client deposits, FC Currency-blended cost of deposits 2020 Client deposits, GEL Starting from 3Q21, the Wealth Management business has been reclassified from Corporate and Investment Banking to the Retail Banking segment. The comparative periods have been restated accordingly 62#63RETAIL BANKING LOANS AND DEPOSITS MARKET SHARE-LOANS TO INDIVIDUALS* 38.8% 37.5% 37.7% MARKET SHARE - DEPOSITS OF INDIVIDUALS* 39.0% 40.3% 36.9% 40.3% 40.3% Dec-18 Dec-19 Dec-20 Dec-21 Dec-18 Dec-19 Dec-20 Dec-21 RETAIL BANKING LOANS GEL MILLIONS 8,768 7,488 6,323 +18.0% RETAIL BANKING DEPOSITS GEL MILLIONS 10,350 Dec-18 Dec-19 Dec-20 Dec-21 8,608 7,117 5,607 +11.0% 9,558 Dec-18 Dec-19 Dec-20 Dec-21 * Market shares by loans to and deposits of individuals based on standalone accounts of the banks published by the National Bank of Georgia 63#64RETAIL BANKING LOAN YIELD, COST OF DEPOSITS AND NIM RETAIL BANKING LOAN YIELD I QUARTERLY 15.4% 15.3% 15.6% 11.1% 11.4% 11.7% RETAIL BANKING LOAN YIELD I FULL YEAR 11.4% 11.3% 6.0% 5.7% 5.8% 15.4% 15.3% 6.5% 5.9% Loan Yield ■4Q20 Loan yield, GEL 3Q21 Loan yield, FC Loan Yield Loan yield, GEL ■2020 2021 Loan yield, FC 4Q21 RETAIL BANKING COST OF DEPOSITS I QUARTERLY 6.0% 6.3% 6.8% RETAIL BANKING COST OF DEPOSITS I FULL YEAR 6.2% 6.2% 2.9% 2.6% 2.9% 2.5% 2.5% 1.8% 1.1% 0.8% 1.8% 1.2% Cost of deposits Cost of deposits, GEL Cost of deposits, FC Cost of deposits Cost of deposits, GEL Cost of deposits, FC 2020 2021 4Q20 3Q21 4Q21 RETAIL BANKING NIM I QUARTERLY 4.0% 4.2% 4.4% RETAIL BANKING NIMI FULL YEAR 4.1% 4.2% 4Q20 3Q21 4Q21 2020 2021 64#65RETAIL BANKING LOAN PORTFOLIO COMPOSITION RETAIL BANKING CLIENT DATA Operating data, GEL millions MORTGAGE LOANS DOLLARISATION Number of total active clients, of which:* Number of active SOLO and WM clients Consumer and other loans, volume Dec-21 1,635,689 71,654 2,804 Consumer and other loans, number Mortgage loans, volume Mortgage loans, number Micro & SME loans, volume Micro & SME loans, number 588,577 Dec-20 1,485,559 60,578 1,945 431,987 Dec-19 1,439,229 56,021 1,777 472,851 22.5% 25.6% 42.2% 45.7% 50.5% 3,978 3,745 59,609 52,697 3,052 46,937 77.5% 74.4% 3,590 3,126 78,548 75,723 2,523 81,739 57.8% 54.3% 49.5% Credit cards and overdrafts, volume Credit cards and overdrafts, number Credit cards, number, of which: American Express cards 201 199 288,246 303,408 175,903 264,311 110,647 97,318 246 395,135 395,536 99,307 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Mortgage loans, FC ■Mortgage loans, GEL RETAIL BANKING PORTFOLIO I DEC-21 Gross loans by product Total: GEL 10.6bln Credit. cards and overdrafts 1.9% Other General 2.8% consumer Mortgage loans loans 23.8% 37.6% Micro and SME loans 33.9% Deposits by currency Total: GEL 9.6bln Client deposits, GEL 30.4% Client deposits, FC 69.6% Deposits by category Total: GEL 9.6bln Current accounts & demand Time deposits 57.2% deposits 42.8% 65 Active individual customer - an individual, who used the Bank's any channel at least once, or performed at least one debit transaction, or was a payroll customer, or had at least one active credit product, or had any type of deposit with a balance above a certain threshold during the last three months. Active business customer - a legal entity that had at least one active credit product, or performed at least one debit transaction, or had any type of deposit with a balance above a certain threshold (varying for micro, SME, or corporate clients) during the last three months#66DIVERSIFIED RETAIL PORTFOLIO AND INCOME STREAMS BALANCE SHEET | DEC-21 JSC Bank of Georgia standalone Mass Retail 34% (GEL 3,592mln) 37% SOLO and WM (GEL 3,034mln) MSME 29% (GEL 3,955min) 47% 12% ■Mass Retail (GEL 3,887mln) 41% SOLO and WM (GEL 4,518mln) MSME (GEL 1,153mln) Total Loans GEL 10,581min Total Deposits GEL 9,558min INCOME STATEMENT | DEC-21 JSC Bank of Georgia standalone Mass Retail 32% (GEL 232mln) 40% ■SOLO and WM 28% 17% 23% 60% (GEL 161mln) MSME (GEL 190min) Mass Retail (GEL 85mln) SOLO and WM (GEL 33mln) MSME (GEL 24mln) Net Interest Income GEL 583mln Net Fee & Commission Income GEL 142mln 66#67WEALTH MANAGEMENT WEALTH MANAGEMENT STRONG REGIONAL PRESENCE Israel (2008), UK (2010), Turkey (2013) LONDON BANK OF GEORGIA WEALTH TBILISI ISTANBUL TEL AVIV DIVERSIFIED CUSTOMER BASE ACROSS MULTIPLE GEOGRAPHIES Other 13% Israel 9% Georgia 37% UK 2% Europe 21% CIS 18% Addressable market to drive growth covers multiple geographies AUM* - GEL 1,504 million, down 6.7% y-o-y, Diversified funding base: down 1.2% q-o-q GROWTH IN AUM GEL MILLIONS 1,503 Active customers** from 78 -6.7% -1.2% countries 1,612 1,659 1,522 1,522 1,504 * In addition, the Bank's Wealth Management customers' investments in assets which are held through Galt & Taggart reached GEL 879.5min at 31 December 2021, up 10.2% y-o-y and up 0.3% q-o-q. ** Active customer - an individual who used the Bank's any channel at least once, or performed at least one debit transaction, or was a payroll customer, or had at least one active credit product, or had any type of deposit with a balance above a certain threshold during the last three months Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 67#68CIB HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS Change Change Change GEL thousands, unless otherwise noted Net interest income 4Q21 4Q20 3Q21 2021 2020 y-o-y 9-0-9 y-o-y 96,625 62,287 55.1% 86,825 11.3% 331,712 244,224 35.8% Net fee and commission income Net foreign currency gain Net other income 13,175 10,617 24.1% 14,237 -7.5% 47,869 37,597 27.3% 13,788 10,437 32.1% 11,248 22.6% 37,619 33,161 13.4% 6,377 9,970 -36.0% 4,982 28.0% 43,979 22,567 94.9% Operating income 129,965 93,311 39.3% 117,292 10.8% 461,179 337,549 36.6% Salaries and other employee benefits (14,387) (12,046) 19.4% (13,053) 10.2% (52,836) (43,805) 20.6% Administrative expenses (5,403) (4,468) 20.9% (3,948) 36.9% (16,788) (15,662) 7.2% Depreciation, amortisation and impairment (2,313) (2,106) 9.8% (2,296) 0.7% (8,551) (8,539) 0.1% Other operating expenses (342) (445) -23.1% (136) 151.5% (892) (1,041) -14.3% Operating expenses (22,445) (19,065) Operating income before cost of risk 107,520 74,246 17.7% 44.8% (19,433) 15.5% (79,067) (69,047) 14.5% 97,859 9.9% 382,112 268,502 42.3% Cost of risk 12,730 (22,204) NMF (1,437) NMF 22,663 (113,856) NMF Net operating income before non-recurring items 120,250 52,042 131.1% 96,422 24.7% 404,775 154,646 NMF Net non-recurring items Profit before income tax expense Income tax expense Profit (1) 120,249 (11,167) 52,042 109,082 (3,957) 48,085 NMF 131.1% NMF 126.9% (3) -66.7% (78) 96,419 24.7% 404,697 (1,288) 153,358 -93.9% NMF (9,781) 86,638 14.2% 25.9% (38,393) (12,684) NMF 366,304 140,674 NMF CIB LOAN PORTFOLIO AND LOAN YIELD CIB CLIENT DEPOSITS AND COST OF DEPOSITS 5.5% 10.3% 8.7% 4.5% 3.4% 4.9% 9.2% 8.6% 42.1% 33.4% 36.3% 50.0% 82.0% 80.9% 79.6% 78.2% 57.9% 66.6% 50.0% 18.0% 2018 19.1% 2019 20.4% 2020 21.8% 2021 Net loans, FC Net loans, GEL Currency-blended loan yield 2018 Client deposits, FC Currency-blended cost of deposits Starting from 3Q21, the Wealth Management business has been reclassified from Corporate and Investment Banking to the Retail Banking segment. The comparative periods have been restated accordingly 2019 63.7% 2020 Client deposits, GEL 2021 68#69CIB LOAN BOOK AND DEPOSITS MARKET SHARE - LOANS TO LEGAL ENTITIES* MARKET SHARE-DEPOSITS OF LEGAL ENTITIES* 32.0% 32.3% 31.0% 30.3% 30.9% 28.8% Dec-18 Dec-19 Dec-20 Dec-21 CIB LOANS GEL MILLIONS +10.2% 5,101 4,629 3,744 2,562 Dec-18 Dec-19 Dec-20 Dec-21 37.3% 31.9% Dec-18 Dec-19 Dec-20 Dec-21 CIB DEPOSITS GEL MILLIONS 2,205 2,420 Dec-18 -17.9% 4,888 4,015 Dec-19 Dec-20 Dec-21 * Market shares by loans to and deposits of legal entities based on standalone accounts of the banks published by the National Bank of Georgia 69#70CIB LOAN BOOK AND DEPOSITS HIGHLIGHTS Leading corporate bank in Georgia Integrated client coverage in key sectors of the Georgian economy ■ 2,621 active corporate customers* served by dedicated relationship bankers at 31 December 2021 DEPOSITS BY CATEGORY | DEC-21 Client deposits, FC, 36.3% Client deposits, GEL, 63.7% GROSS LOAN BOOK BY SECTOR | DEC-21 Other 29.4%. Manufacturing 20.4% Top 10 CIB borrowers - 26.3% of CIB loan book Service Hospitality 14.9% 4.1% Electricity, gas & Real estate 14.9% water supply 7.2% Trade 9.1% DEPOSITS BY CURRENCY | DEC-21 * Active business customer - a legal entity that had at least one active credit product, or performed at least one debit transaction, or had any type of deposit with a balance above a certain threshold during the last three months Time deposits, 31.3% Current accounts and demand deposits, 68.7% Top 20 CIB borrowers - 38.2% of CIB loan book 70#71CIB LOAN YIELD, COST OF DEPOSITS AND NIM CIB LOAN YIELD I QUARTERLY CIB LOAN YIELD I FULL YEAR 12.7% 14.1% 14.3% 8.5% 8.7% 9.2% 12.8% 13.5% 7.6% 7.2% 7.8% 8.6% 8.7% 7.7% 7.5% Loan Yield 4Q20 Loan yield, GEL ■3Q21 Loan yield, FC 4Q21 CIB COST OF DEPOSITS I QUARTERLY 7.8% 8.1% 8.4% 5.4% 5.6% 5.6% Loan Yield Loan yield, GEL ■ 2020 2021 Loan yield, FC CIB COST OF DEPOSITS I FULL YEAR 5.5% 4.9% 1.0% 0.4% 0.3% Cost of deposits Cost of deposits, GEL Cost of deposits, FC 4Q20 3Q21 4Q21 CIB NIMI QUARTERLY 3.9% 5.5% 5.8% 7.7% 8.0% T 0.7% 0.6% Cost of deposits Cost of deposits, GEL Cost of deposits, FC ■2020 2021 CIB NIMI FULL YEAR 4.2% 5.1% 4Q20 3Q21 4Q21 2020 2021 71#72GALT & TAGGART - BROKERAGE GALT & TAGGART LARGEST INVESTMENT BANK IN GEORGIA BROKERAGE GALT & TAGGART CREATING OPPORTUNITIES Leading brokerage house in the region SAXO ☐ Exclusive partner of SAXO Bank via white label structure BANK AUM - GEL 1,469 mln, up 27.0% y-o-y RESEARCH Macro, sector, and fixed income coverage Global market coverage DCM/ECM B Leading player on the local market Lead manager of choice for corporates as well as IFIs CORPORATE ADVISORY Track record of more than 30 completed transactions over the past ten years GLOBAL Best Investment Bank in Georgia 2015-2020 Gross revenue stands for brokerage revenues before subtracting any brokerage and third-party brokerage fees; net margins are post these fees Offered through a white label solution from SAXO Bank and a US brokerage house DriveWealth GALT & TAGGART BROKERAGE-GROSS REVENUES GEL MILLIONS 2.0 2.0 1.9 1.9 1.7 1.6 1.5 1.3 1.0 1.3 0.4 0.5 0.6 0.7 0.6 4Q20 1Q21 2Q21 3Q21 4Q21 Traditional Brokerage Online Brokerage** FOCUS ON DIGITALISING BROKERAGE OFFERINGS SIGNIFICANT MILESTONES TOWARDS DIGITALISATION ACHIEVED IN 2020 AND 2021 ERP system Dashboard Trader.ge Mobile app Digital solution powered by Al ERP system enhancement to increase operational efficiency Launched Client Dashboard to improve customer experience and transparency Galt & Taggart Trader website enhancement to increase customer engagement Developed mobile app in 2021 Gearing towards fully digital solution powered by Al 72#73DIGITAL AREA ECOSYSTEM OVERVIEW Fully Automated influencer marketing On-demand Childcare Universal Marketplace Charity support platform Online physiotherapy Online Branding Platform Self-guided tours and tickets Corebook YOU A Marketplace for group tours Real estate ecosystem TRAVEL ME Online car rentals marketplace Hospitality management solution International vehicle auctions y nanny 8 Trigocars CARDEAL area.ge extra.ge kvalifika Phubber DIGITAL AREA IZIBOX OPTIMO adapter Logistics & Delivery: AGROLABS Predictive Analytics for Farmers CARU Z FINMAP Car maintenance outsourcing Modern technologies for Farmers On demand freight logistics Software for modeling urban areas S KERNEL SAAS platform for client authentication Fashion shopping marketplace Growth management for online shops Simple Financial tools Digital adaptation program for businesses Tab-less browser for productivity Quick Cash lil B2C Al based E-commerce solution Intelligent employee referrals Ai Digital Lending Infrastructure Natural language training tool Multichannel Customer Engagement Software Innovative digital solution for MSME Telecommunication Solution Financial management tool for SME E-commerce payments PAYZE SIMP LIUM 23 73#74DIGITAL AREA ECOSYSTEM OVERVIEW SINCE JUNE 2019 extra.ge launch of web platform largest B2C e-commerce marketplace launch on IOS and Android apps website redesign, search and filtering improvements optimo.ge launch of merchant services launch of digital transformation for MSMEs adapter.ge-launch of web platform area.ge launch of real estate marketplace mortgage prequalification with Bank of Georgia IZibox - launch of full sorting and logistics services Accelerated 28 local and international startups INVESTED US$ 8.6 MLN 2018-2021 COMING SOON extra.ge mobile app (IOS & Android) redesign top of mind e-commerce platform and best-in-class customer service in Georgia launch of loyalty programme enhancement of delivery functionality optimo.ge launch of loyalty programme Launch of Optimo Lite launch of HORECA programme area.ge accelerating primary real estate brokerage business for developer companies marketplace positioning on primary and private owners market Continuing partnerships with other ecosystem players Digital Area ecosystem data harnessing PLAN TO INVEST US$ 3-8 MLN 2022-2023 74#75CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY Q921 4Q21 AND FY21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | CORPORATE GOVERNANCE 75#76STRONG INSTITUTIONAL INVESTOR SUPPORT BANK OF GEORGIA GROUP PLC TOP INSTITUTIONAL INVESTORS As of 31 Dec 2021 Rank Shareholder name Ownership 1 JSC Georgia Capital* INSTITUTIONAL INVESTOR STRUCTURE As of 31 Dec 2021 19.9% 2 Harding Loevner LP 4.5% 3% 4% 3 Fidelity Investments 4.0% ■Unvested and unawarded shares for management and employees ■Vested shares held by management and employees ■ US 4 Van Eck Associates Corporation 3.5% 36% 27% 5 Dimensional Fund Advisors (DFA) LP 3.1% 6 M&G Investment Management Ltd 2.9% 7 Prosperity Capital Management Ltd 2.7% 3% 4% ■UK/Ireland ■Luxembourg Scandinavia 8 Vanguard Group Inc 2.4% 23% Other** 9 Standard Life Investments 2.2% 10 Tiger Management Ltd 2.1% * JSC Georgia Capital will exercise its voting rights at the Group's general meetings in accordance with the votes cast by all other Group Shareholders, as long as JSC Georgia Capital's percentage holding in Bank of Georgia Group PLC is greater than 9.9% ** Includes 19.9% shareholding of JSC Georgia Capital 76#77BOARD OF DIRECTORS ROBUST CORPORATE GOVERNANCE BASED ON UK CORPORATE GOVERNANCE CODE Neil Janin, Independent Non-Executive Chairman Experience: formerly Director at McKinsey & Company in Paris; formerly co-chairman of the commission of the French Institute of Directors (IFA); formerly Chase Manhattan Banking New York and Paris. Archil Gachechiladze, Chief Executive Officer Experience: with the Group since 2009; originally joined as Deputy CEO, Corporate Banking; formerly: CEO of Georgian Global Utilities (formerly part of BGEO Group PLC). Over 17 years' experience in the financial services. Hanna Loikkanen, Senior Independent Non-Executive Director Experience: Non-Executive Director of PJSC Rosbank; Non-Executive Director of Finn Fund, Non-Executive Director of VEF Ltd; formerly: Senior Executive at East Capital, FIM Group Russia, Nordea Finance, SEB. Al Breach, Independent Non-Executive Director Experience: Director of Gemsstock Ltd, The Browser and Furka Holdings AG, and advisor to East Capital; formerly: Head of Research, Strategist & Economist at UBS Russia and CIS, economist at Goldman Sachs. Tamaz Georgadze, Independent Non-Executive Director Experience: Executive Director and founder of Raisin GmbH (formerly Saving Global GmbH); formerly: Partner at McKinsey & Company in Berlin, aide to President of Georgia. Jonathan Muir, Independent Non-Executive Director Experience: CEO of Letter One Holdings SA and of LetterOne Investment Holdings; formerly: CFO and Vice President of Finance and Control of TNK-BP, Partner at Ernst & Young. 77 Cecil Quillen, Independent Non-Executive Director Experience: Partner at Linklaters LLP with nearly 30 years of experience in working on a broad spectrum of securities and finance matters. Véronique McCarroll, Independent Non-Executive Director Experience: 30 years' in Financial Services; Currently, Head of Strategy for Digital banking across Europe at Orange; formerly: Executive Director at Crédit Agricole CIB, Partner at McKinsey & Company, Oliver Wyman and Andersen/ Ernst & Young. Mariam Megvinetukhutsesi, Independent Non-Executive Director Experience: 20 years' in Financial Services; formerly: Head of Georgia's Investors Council Secretariat, Deputy CEO at TBC Bank, banking appointments at the EBRD.#78HIGHLY EXPERIENCED MANAGEMENT TEAM 78 Archil Gachechiladze, Chief Executive Officer With the Group since 2009. Previously, CEO of Georgian Global Utilities. Held various positions with the Group - Deputy CEO, CB; Deputy CEO, IM; CFO of BGEO Group; Deputy CEO, CIB. Over 20 years of experience of senior roles at TBC Bank, Lehman Brothers Private Equity, Salford Equity Partners, KPMG, World Bank, EBRD. Holds MBA with honors from Cornell University. CFA Charterholder. Sulkhan Gvalia, Chief Financial Officer With the Group since 2004. Previously, founder and CEO of E- Space Limited, Tbilisi. Various positions with the Group - Chief Risk Officer and Head of Corporate Banking. Prior to joining the Group, served as Deputy CEO of TbilUniversal Bank. Also, serves as non- executive independent director at Inecobank (Armenia) since 2018. Holds a law degree from Tbilisi State University. Levan Kulijanishvili, Deputy CEO, Operations With the Group since 1997. Joined as a Junior Financial Analyst of the Bank. Held various senior positions - Deputy CEO in charge of finance, Head of Internal Audit, Head of Financial Monitoring, Head of Strategy and Planning, and Head of the Financial Analysis. Holds MBA from Grenoble Graduate School of Business. George Chiladze, Deputy CEO, Chief Risk Officer With the Group since 2008. Joined as a Deputy CEO, finance at Bank. Left in 2011 and rejoined in 2013 as Deputy CEO, CRO. Prior to rejoining, he was Deputy CEO at the Partnership Fund. Prior to returning to Georgia in 2003, he worked at the programme trading desk at Bear Stearns in New York City. Holds PhD in physics from Johns Hopkins University in Baltimore, Maryland. Mikheil Gomarteli, Deputy CEO, Mass Retail With the Group since 1997. Mikheil is a textbook professional growth story made possible in our Group - he developed his way from selling debit cards door-to-door to successfully leading our Retail Banking franchise for over ten years now. Holds an undergraduate degree in Economics from Tbilisi State University. Vakhtang Bobokhidze, Deputy CEO, Information Technology, Data Analytics, Digital Channels With the Group since 2005. Joined as Quality Control Manager. Left the Group in 2010 and rejoined the Group in December 2010. Prior to being appointed as Deputy CEO, served as Head of IT Department since 2016. Holds MBA from Tbilisi State University.#79HIGHLY EXPERIENCED MANAGEMENT TEAM 79 Etuna Iremadze, Deputy CEO, Premium Banking With the Group since 2006. Around 20 years of experience in financial services. Previously, Head of Strategic Projects Department in Georgian Global Utilities (formerly part of BGEO Group). Held various positions within the Group - Head of Blue Chip Corporate Banking Unit covering structured lending, M&As, significant buyouts in Georgia, project financing. Holds MBA from Grenoble Graduate School of Business. Zurab Kokosadze, Deputy CEO, Corporate Banking With the Group since 2003. Around 20 years of experience in financial services. Prior to his recent appointment, he served as Head of Corporate Banking under the direct supervision of Deputy CEO, Corporate and Investment Banking. Held various senior positions within the Group Senior Corporate Banker, FMCG Sector Head and Deputy Head of Corporate Banking. Holds MBA from Grenoble Graduate School of Business. Levan Gomshiashvili, Chief Marketing Officer With the Group since 2019. Extensive experience in marketing. Founder of HOLMES&WATSON, a creative agency, where he acted as Account Manager for banking and other sector clients. Founder of Tbilisi School of Communication, an educational facility with an emphasis on ExEd. Started his career in Georgian Railway, covering advertising and project management. Holds MSc in Management from University of Edinburgh. Ana Kostava, Chief Legal Officer With the Group since 2018. Extensive experience in legal services. Prior to her recent appointment, she served as Chief Legal Officer of the Bank under the direct supervision of the Deputy CEO, Chief Risk Officer since June 2020. Prior to joining the Bank, she held various positions in local and international companies. Ms Kostava is Associate Lecturer at Free University of Tbilisi. Holds LLM from University of Cambridge. Zurab Masurashvili, Head of SME Business Banking With the Group since 2015. Extensive experience in financial services. Previously, Head of Express Business, Head of MSME Business, Head of Retail Business in the Bank. Prior to joining the Group, he held several positions in international organisations - EBRD, the World Bank, GTZ, served as Deputy Chairman of the Board of Directors in Privatbank. Holds a degree in Geology from Georgian Technical University. Andro Ratiani, CEO of Digital Area With the Group since 2018. Extensive experience in the global financial services. Previously, Head of Innovations at Bank of Georgia, Global Head of Product Management at IHS Markit, spent 6 years in UBS AG Investment & Wealth Management Bank in New York, worked in Wells Fargo during acquisition phase of Wachovia Bank. Started his career at the Bank's CIB Department. Holds a Master's degree in technology management from Columbia University. Nutsa Gogilashvili, Head of Customer Experience and HCM With the Group since 2016. Over 10 years of experience in financial services. Previously, Head of Strategic Processes of Corporate and Investment Banking and Head of Customer Experience Management in the Bank. Prior to joining the Group, she held various senior positions in local and international financial institutions. Holds MSc in Finance from Cass Business School in London.#80CONTENTS COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY Q921 4Q21 AND FY21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | FINANCIAL AND OPERATING INFORMATION 80#81GROUP INCOME STATEMENT 81 Change Change Change GEL thousands, unless otherwise noted 4Q21 4Q20 3Q21 2021 2020 y-o-y 9-0-9 y-o-y Interest income Interest expense Net interest income Fee and commission income Fee and commission expense Net fee and commission income Net foreign currency gain Net other income Operating income Salaries and other employee benefits Administrative expenses Depreciation, amortisation and impairment Other operating expenses Operating expenses 509,563 (239,492) 270,071 113,664 420,398 21.2% 466,265 9.3% (218,802) 9.5% (222,976) 7.4% 1,851,044 (897,103) 1,595,427 16.0% (817,785) 9.7% 201,596 34.0% 243,289 11.0% 953,941 777,642 22.7% 77,382 46.9% 105,992 7.2% 390,829 274,458 42.4% (49,564) (30,424) 62.9% (43,516) 13.9% (158,398) (108,955) 45.4% 64,100 46,958 36.5% 62,476 2.6% 232,431 165,503 40.4% 34,495 26,457 30.4% 33,346 3.4% 109,099 99,040 10.2% 10,579 25,016 -57.7% 8,706 21.5% 70,206 48,474 44.8% 379,245 300,027 26.4% 347,817 9.0% 1,365,677 1,090,659 25.2% (80,501) (64,243) 25.3% (71,551) 12.5% (281,087) (239,607) 17.3% (43,552) (31,617) 37.7% (32,342) 34.7% (129,524) (105,531) 22.7% (25,256) (21,283) 18.7% (23,448) 7.7% (93,618) (82,937) 12.9% (1,463) (1,714) -14.6% Profit/(loss) from associates (150,772) 128 Operating income before cost of risk 228,601 (118,857) 154 181,324 Expected credit loss on loans to customers 9,836 (14,579) Expected credit loss on finance lease receivables (3,406) (381) Other expected credit loss and impairment charge on other assets and provisions (14,174) (23,471) Cost of risk (7,744) (38,431) Net operating income before non-recurring items 220,857 142,893 Net non-recurring items (62) 21 Profit before income tax expense 220,795 142,914 Income tax expense Profit (20,076) (11,065) (661) 26.9% (128,002) -16.9% 26.1% NMF NMF -39.6% -79.8% 54.6% NMF 54.5% 81.4% 223 220,038 121.3% 17.8% -42.6% 3.9% (3,723) (4,560) -18.4% (507,952) (3,781) 853,944 (432,635) 17.4% 782 NMF 658,806 29.6% (8,192) NMF (1,452) (236,983) -99.4% 70 NMF (4,950) (8,025) -38.3% (5,462) (13,584) 159.5% (45,010) (55,989) -19.6% -43.0% (51,412) (300,997) -82.9% 206,454 (479) 205,975 7.0% -87.1% 802,532 357,809 124.3% (590) (41,311) -98.6% 7.2% 200,719 131,849 52.2% (20,671) 185,304 -2.9% 801,942 (74,824) 316,498 153.4% (21,555) NMF 8.3% 727,118 294,943 146.5% Profit attributable to: - shareholders of the Group - non-controlling interests Earnings per share (basic) Earnings per share (diluted) 199,889 131,220 830 629 52.3% 32.0% 184,462 8.4% 723,806 293,584 146.5% 842 -1.4% 3,312 1,359 143.7% 4.25 2.76 54.0% 3.90 9.0% 15.22 6.17 146.7% 4.12 2.76 49.3% 3.80 8.4% 14.88 6.17 141.2%#82GROUP BALANCE SHEET Change Change GEL thousands, unless otherwise noted Cash and cash equivalents Dec-21 Dec-20 Sep-21 y-o-y 9-0-9 1,520,562 1,970,955 -22.9% 1,274,079 19.3% Amounts due from credit institutions 1,931,390 2,016,005 -4.2% 1,904,747 1.4% Investment securities 2,595,664 2,544,397 2.0% 2,282,983 13.7% Loans to customers and finance lease receivables 16,168,973 14,192,078 13.9% 15,579,496 3.8% Accounts receivable and other loans 3,680 2,420 52.1% 2,591 42.0% Prepayments 40,878 27,593 48.1% 44,540 -8.2% Inventories 11,514 10,340 11.4% 11,418 0.8% Right-of-use assets Investment property Property and equipment Goodwill Intangible assets Income tax assets 80,186 83,208 -3.6% 79,174 1.3% 226,849 231,241 -1.9% 232,446 -2.4% 378,808 387,851 -2.3% 377,287 0.4% 33,351 33,351 0.0% 33,351 0.0% 144,251 125,806 14.7% 140,386 2.8% 292 22,033 -98.7% 479 -39.0% Other assets Assets held for sale Total assets Client deposits and notes 246,947 46,731 23,430,076 325,994 -24.2% 192,810 28.1% 62,648 -25.4% 54,765 -14.7% 22,035,920 6.3% 22,210,552 5.5% Amounts owed to credit institutions 14,038,002 4,318,445 14,020,209 0.1% 13,312,965 5.4% 3,335,966 29.5% 4,037,523 7.0% Debt securities issued 1,518,685 1,585,545 -4.2% 1,537,593 -1.2% Lease liabilities 87,662 95,635 -8.3% 87,099 0.6% Accruals and deferred income 80,157 53,894 48.7% 66,449 20.6% Income tax liabilities 110,868 62,434 77.6% 92,784 19.5% Other liabilities 183,349 332,322 -44.8% 168,385 8.9% Total liabilities Share capital Additional paid-in capital 20,337,168 1,618 492,243 19,486,005 4.4% 19,302,798 5.4% 1,618 0.0% 1,618 0.0% 526,634 -6.5% 496,708 -0.9% Treasury shares Other reserves (75) (3,223) (54) 38.9% (66) 13.6% 71,227 NMF 6,139 NMF Retained earnings 2,588,463 1,939,122 33.5% 2,390,255 8.3% Total equity attributable to shareholders of the Group 3,079,026 2,538,547 21.3% 2,894,654 6.4% Non-controlling interests 13,882 Total equity Total liabilities and equity Book value per share 3,092,908 23,430,076 65.65 11,368 2,549,915 22.1% 13,100 6.0% 21.3% 2,907,754 6.4% 22,035,920 6.3% 22,210,552 5.5% 53.41 22.9% 61.37 7.0% 82#83BNB FINANCIAL HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS Change Change Change 4Q21 4Q20 3Q21 2021 2020 GEL thousands, unless otherwise noted y-o-y 9-0-9 y-o-y Net interest income. 12,277 8,888 38.1% 9,300 32.0% 39,676 36,249 9.5% Net fee and commission income 769 1,268 -39.4% 1,515 -49.2% 5,476 5,678 -3.6% Net foreign currency gain 3,473 1,963 76.9% 3,293 5.5% 13,341 6,202 115.1% Net other income 930 1,240 -25.0% 496 87.5% 1,242 1,812 -31.5% Operating income 17,449 13,359 30.6% 14,604 19.5% 59,735 49,941 19.6% Operating expenses (12,000) (8,334) 44.0% (9,676) 24.0% (39,675) (32,950) 20.4% Operating income before cost of risk 5,449 5,025 8.4% 4,928 10.6% 20,060 16,991 18.1% Cost of risk (471) 2,819 NMF (1,560) -69.8% (1,723) (3,981) -56.7% Net non-recurring items (50) (128) -60.9% (138) -63.8% (532) (125) NMF Profit before income tax expense Income tax expense Profit 4,928 7,716 -36.1% 3,230 52.6% 17,805 12,885 38.2% (932) (1,768) -47.3% (515) 81.0% (3,395) (2,734) 24.2% 3,996 5,948 -32.8% 2,715 47.2% 14,410 10,151 42.0% BALANCE SHEET HIGHLIGHTS Change Change Dec-21 Dec-20 Sep-21 GEL thousands, unless otherwise noted y-o-y 9-0-9 Cash and cash equivalents 186,050 163,193 14.0% 146,716 26.8% Amounts due from credit institutions 8,719 20,042 -56.5% 9,245 -5.7% Investment securities 69,794 94,459 -26.1% 85,399 -18.3% Loans to customers and finance lease receivables 662,297 698,542 -5.2% 657,568 0.7% Other assets 54,060 42,416 27.5% 51,087 5.8% Total assets 980,920 1,018,652 -3.7% 950,015 3.3% Client deposits and notes 516,634 589,152 -12.3% 465,203 11.1% Amounts owed to credit institutions 309,812 234,641 32.0% 326,715 -5.2% Debt securities issued 7,327 34,067 -78.5% 7,195 1.8% Other liabilities Total liabilities Total equity Total liabilities and equity 12,490 28,237 -55.8% 12,944 -3.5% 846,263 886,097 -4.5% 812,057 4.2% 134,657 980,920 132,555 1.6% 137,958 -2.4% 1,018,652 -3.7% 950,015 3.3% 83#84KEY RATIOS 4Q21 4Q20 3Q21 2021 2020 Profitability ROAA, annualised ROAE, annualised RB ROAE CIB ROAE Net interest margin, annualised RB NIM CIB NIM Loan yield, annualised RB Loan yield CIB Loan yield 3.5% 2.4% 3.3% 3.2% 1.5% 26.4% 21.3% 25.7% 25.8% 13.0% 19.7% 22.1% 23.4% 21.4% 11.0% 39.2% 20.5% 31.4% 34.6% 16.7% 5.3% 4.4% 5.0% 4.9% 4.6% 4.4% 4.0% 4.2% 4.2% 4.1% 5.8% 3.9% 5.5% 5.1% 4.2% 11.0% 10.4% 10.6% 10.6% 10.5% 11.7% 11.1% 11.4% 11.3% 11.4% 9.2% 8.5% 8.7% 8.7% 8.6% Liquid assets yield, annualised 4.0% 3.0% 3.6% 3.5% 3.4% Cost of funds, annualised 4.8% 4.6% 4.7% 4.6% 4.7% Cost of client deposits and notes, annualised 3.5% 3.8% 3.6% 3.6% 3.6% RB Cost of client deposits and notes 2.5% 2.9% 2.5% 2.6% 2.9% CIB Cost of client deposits and notes 5.6% 5.4% 5.6% 5.5% 4.9% Cost of amounts due to credit institutions, annualised 8.3% 6.6% 8.0% 7.3% 7.1% Cost of debt securities issued 6.8% 7.0% 6.8% 6.9% 7.4% Operating leverage, y-o-y -0.4% -0.8% 1.1% 7.8% -4.8% Operating leverage, q-o-q -8.8% -7.3% -1.2% 0.0% 0.0% Efficiency Cost income RB Cost/income CIB Cost/income 39.8% 39.6% 36.8% 37.2% 39.7% 50.2% 47.3% 45.9% 46.1% 47.1% 17.3% 20.4% 16.6% 17.1% 20.5% * For the description of Key Ratios, refer to page 88 84#85KEY RATIOS 4Q21 4Q20 3Q21 2021 2020 Liquidity NBG liquidity coverage ratio (minimum requirement 100%) 124.0% 138.6% 112.7% 124.0% 138.6% Liquid assets to total liabilities 29.7% 33.5% 28.3% 29.7% 33.5% Net loans to client deposits and notes 115.2% 101.2% 117.0% 115.2% 101.2% Net loans to client deposits and notes + DFIs 100.0% 89.4% 102.1% 100.0% 89.4% Leverage (times) 6.6 7.6 6.6 6.6 7.6 Asset Quality: NPLs (in GEL) 394,720 545,837 413,626 394,720 NPLs to gross loans to clients 2.4% 3.7% 2.6% 2.4% 545,837 3.7% NPL coverage ratio 95.5% 76.3% 90.9% 95.5% 76.3% NPL coverage ratio, adjusted for discounted value of collateral 147.7% 128.8% 140.9% 147.7% 128.8% Cost of credit risk, annualised -0.2% 0.4% 0.2% 0.0% 1.8% RB Cost of credit risk 0.7% 0.6% 0.4% 0.7% 2.1% CIB Cost of credit risk -1.8% 0.4% -0.3% -1.2% 1.5% Capital Adequacy: NBG (Basel III) CET1 capital adequacy ratio 13.2% 10.4% 12.8% 13.2% 10.4% Minimum regulatory requirement 11.5% 7.4% 11.0% 11.5% 7.4% NBG (Basel III) Tier I capital adequacy ratio 15.0% 12.4% 14.6% 15.0% 12.4% Minimum regulatory requirement 13.6% 9.2% 13.2% 13.6% 9.2% NBG (Basel III) Total capital adequacy ratio 19.3% 17.6% 19.2% 19.3% 17.6% Minimum regulatory requirement 17.7% 13.8% 17.3% 17.7% 13.8% * For the description of Key Ratios, refer to page 88 85#86KEY OPERATING DATA Dec-21 Dec-20 Sep-21 Selected operating data: Total assets per FTE 2,998 2,993 2,886 Number of active branches, of which: 211 211 212 - Express branches 106 105 107 - Bank of Georgia branches 94 95 94 - Solo lounges 11 11 11 Number of ATMs 989 960 985 Number of cards outstanding, of which: 2,290,716 2,137,744 2,078,033 - Debit cards 2,114,813 1,873,433 1,894,260 - Credit cards 175,903 264,311 183,773 Number of POS terminals Number of Express Pay terminals FX Rates: 38,514 27,184 35,793 2,998 2,993 2,886 GEL/US$ exchange rate (period-end) 3.0976 3.2766 3.1228 GEL/GBP exchange rate (period-end) 4.1737 4.4529 4.2198 Full time employees (FTE), of which: 7,816 7,363 7,695 - Full time employees, BOG standalone 6,207 5,821 6,108 - Full time employees, BNB 547 537 542 - Full time employees, other 1,062 1,005 1,045 Shares outstanding Ordinary shares Treasury shares Total shares outstanding 46,900,982 2,268,446 49,169,428 47,530,584 1,638,844 49,169,428 47,168,814 2,000,614 49,169,428 86#87KEY RATIO DEFINITIONS 87 " " Cost of funds Interest expense of the period divided by monthly average interest bearing liabilities; Cost of deposits Interest expense on client deposits and notes of the period divided by monthly average client deposits and notes Cost of credit risk Expected loss on loans to customers and finance lease receivables for the period divided by monthly average gross loans to customers and finance lease receivables over the same period; Cost to income ratio Operating expenses divided by operating income; Interest bearing liabilities Amounts owed to credit institutions, client deposits and notes, and debt securities issued; Interest earning assets (excluding cash) Amounts due from credit institutions, investment securities (but excluding corporate shares) and net loans to customers and finance lease receivables; Leverage (times) Total liabilities divided by total equity; Liquid assets Cash and cash equivalents, amounts due from credit institutions and investment securities; Liquidity coverage ratio (LCR) High quality liquid assets (as defined by the NBG) divided by net cash outflows over the next 30 days (as defined by the NBG); Loan yield Interest income from loans to customers and finance lease receivables divided by monthly average gross loans to customers and finance lease receivables; NBG (Basel III) Common Equity Tier I capital adequacy ratio Common Equity Tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia; NBG (Basel III) Tier I capital adequacy ratio Tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia; NBG (Basel III) Total capital adequacy ratio Total regulatory capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia; Net interest margin (NIM) Net interest income of the period divided by monthly average interest earning assets excluding cash for the same period; Net stable funding ratio (NSFR) available amount of stable funding (as defined by the NBG) divided by the required amount of stable funding (as defined by the NBG) Non-performing loans (NPLs) The principal and interest on loans overdue for more than 90 days and any additional potential losses estimated by management; NPL coverage ratio Allowance for expected credit loss of loans and finance lease receivables divided by NPLs; NPL coverage ratio adjusted for discounted value of collateral Allowance for expected credit loss of loans and finance lease receivables divided by NPLs (discounted value of collateral is added back to allowance for expected credit loss); Operating leverage Percentage change in operating income less percentage change in operating expenses; Return on average total assets (ROAA) Profit for the period divided by monthly average total assets for the same period; Return on average total equity (ROAE) Profit for the period attributable to shareholders of the Group divided by monthly average equity attributable to shareholders of the Group for the same period; NMF Not meaningful#88COMPANY INFORMATION Registered Address 42 Brook Street London W1K 5DB United Kingdom Registered under number 10917019 in England and Wales Secretary Link Company Matters Limited 65 Gresham Street London EC2V 7NQ United Kingdom Stock Listing London Stock Exchange PLC's Main Market for listed securities Ticker: "BGEO.LN" Contact Information Bank of Georgia Group PLC Investor Relations Telephone: +44 (0) 203 178 4052; +995 322 444444 (7515) E-mail: [email protected] www.bankofgeorgiagroup.com Auditors Ernst & Young LLP 25 Churchill Place Canary Wharf London E14 5EY United Kingdom Registrar Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS13 8AE United Kingdom Please note that Investor Centre is a free, secure online service run by our Registrar, Computershare, giving you convenient access to information on your shareholdings. Investor Centre Web Address - www.investorcentre.co.uk Investor Centre Shareholder Helpline - +44 (0)370 873 5866 Share price information Shareholders can access both the latest and historical prices via the website, www.bankofgeorgiagroup.com 88