#1GEORGIA CAPITAL Investor presentation 10 x = 10 y 27 February 2020#2Forward looking statements GEORGIA CAPITAL Disclaimer This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Georgia Capital PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. By their nature, these forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, which could include, among other things: regional instability, regulatory risk across a wide range of industries, investment risk, portfolio company strategic and execution risks, currency fluctuations, including depreciation of the Georgian Lari, and macroeconomic risk and other key factors that indicated could adversely affect our business and financial performance, which are contained in our past and future filings and reports and also the 'Principal Risks and Uncertainties' included in Georgia Capital PLC's Annual Report and Accounts 2018 and in Georgia Capital PLC's 1H19 results announcement. No part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in Georgia Capital PLC or any other entity, and must not be relied upon in any way in connection with any investment decision. Georgia Capital PLC and other entities undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Nothing in this presentation should be construed as a profit forecast. Page 2#3Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices GEORGIA CAPITAL Page 3#4GBP 15.0 13.0 11.0 9.0 7.0 5.0 May-18 Includes both vested and unvested awarded shares Historical GCAP share price Jun-18 Jul-18 Aug-18 Aug-18 Aug-18 Sep- Oct- Nov- Nov- Dec- CGEO:LN performance LSE premium listed, with more than 90% institutional shareholder base GCAP shareholders allocation by geography 30.2% O 5.9% 5.5% 7.6% Number of outstanding shares as at 31-Dec-19 39,384,712 (2,650,375) 3,435,438 37,441,971 (2,727,804) ■ USA 28.7% ■ UK/Ireland ■Luxembourg ■Scandinavia Number of shares Shares cancelled Unawarded shares, issued in May 2018 management trust Shares issued* Number of shares outstanding ■Management* 22.1% ■ other GEORGIA CAPITAL As of 26 February 2020 Average daily trading volume - GBP 1.0 (million) Market Capitalization - GBP 298 (million) * In December 2019 GCAP issued 3.4 million new shares for acquisition of 13.6% equity stake in GHG Feb-1 Mar-19 Mar-19 Apr- May-1 Jun-1 Jul-19 Jul-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 GCAP top shareholders | 31-Dec-2019 Rank Shareholder name Ownership 1 M&G Investment Management Ltd 7.53% 2345 Schroder Investment Management Ltd 4.73% LGM Investments Ltd 3.40% Consilium Investment Management LLC 3.38% Vanguard Group Inc 3.12% 6 Norges Bank Investment Management 3.12% 7 Dunross & Co AB 2.85% 8 9 10 Van Eck Global T Rowe Price Total 2.68% Firebird Management LLC 2.39% 2.18% 35.38% Page 4#5Our portfolio at a glance GEORGIA CAPITAL Management platform Public portfolio - GEL 1,028mln¹ Private portfolio – GEL 1,225mln¹ Late Stage - GEL 693mln¹ GEORGIA HEALTHCARE GROUP Georgia Healthcare Group 70.6% GEL 430mln² Water Utility 100% GEL 484mln Valued: LSE Valued: 8.8x LTM EV/EBITDA BANK OF GEORGIA Early Stage - GEL 439min¹ Bank of Georgia 19.9%4 GEL 598mln² Renewable Energy 100%5 GEL 107mln² 1. As of 31 December 2019. 2. GCAP share Valued: LSE Valued: at acquisition price Housing Development P&C Insurance 100% GEL 44mln 100% GEL 165mln Valued: DCF Valued: 9.0x LTM P/E GEORGIA CAPITAL Pipeline - GEL 93mln 1.3 Third-party managed capital Education GEL 56mln Valued: at acquisition price Hospitality & Commercial Beverages 100% GEL 246mln Valued: NAV 87% GEL 87mln² Valued: 10.0x LTM EV/EBITDA (wine); 2.2x LTM EV/Sales (beer); Auto Service GEL 26mln Valued: 10.4x EV/EBITDA (PTI) At acquisition price (Amboli) Digital Services GEL 9mln Valued: at acquisition price Upcoming funds ➤ Targeting to raise c. US$ 200 million 3. Total pipeline portfolio includes other pipeline projects with GEL 2 million value. 4. As long as Georgia Capital's stake is greater than 9.9%, it will exercise its voting rights in accordance with the votes cast by all other shareholders on all shareholder votes at any general meeting. 5. Following the buyout of the 34.4% minority shareholder in GRPC on 25 February 2020, Renewable Energy consists of wholly-owned hydro and wind power plants with 91MW installed capacity in aggregate. Page 5#6Key portfolio highlights | 31 December 2019 Gross cash invested of GEL 1.2bln Net cash invested of GEL 395mln Listed Private late stage Private early stage GEORGIA CAPITAL Portfolio fair value of GEL 2.3bln Pipeline Original investment 252 129 214 92 10 99 194 62 96 56 10 9 MOIC¹ GEL millions 116 2.2 7.9 430 598 132 2.6 2.1 19.7 1.1 1.3 1.2 0.2 NMF 2.6 NMF 484 246 194 165 99 107 96 62 72 15 56 56 10 26 9 9 44 (59) (26) GHG BOG Water Utility Housing Development P&C Insurance Renewable Energy Hospitality & Commercial RE Wine Beer Education Auto Service Digital Services (1) (292) Fair value LSE Market value at 31-Dec-19 Net cash investment Multiple of Capital Invested is calculated as follows: i) the numerator is the cash and non-cash inflows from dividends and sell-downs plus fair value of investment at reporting date ii) the denominator is the gross investment amount. Page 6#7Solid track record Created three listed companies from Georgia, on the premium segment of the London Stock Exchange ||| Acquisitions Capital raise |ı. Exit IRR GEORGIA CAPITAL The Georgia Capital management team has a track record of executing more than 50 acquisitions in banking, insurance, healthcare, utilities, education, renewable energy, retail, FMCG and other sectors (c. 40 acquisitions were made under the BGEO Group) 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.) 121% IRR from GHG IPO 60%+ IRR from completed m² Real Estate projects Total number of acquisitions executed 50+ Total amount of debt raised (US$) 4.5bn+ IRR from GHG IPO 121% Page 7#8Acquisitions in 2019 | private portfolio • February 2019 Kempinski Hotel Buyout of the remaining 40% equity stake for US$ 5.2 million Expected to add c. 100 rooms to hospitality business portfolio from 4Q20. March 2019 Kazbegi brand acquisition . Georgia's oldest beer brand- Kazbegi. • Total cash consideration of US$ 3.65mln May 2019 Redberry • The leading Georgian digital marketing agency . US$ 0.4 million cash consideration to acquire 60% equity stake • US$ 2.8 million new capital injected for digital start-up development • • GEORGIA CAPITAL July 2019 Buckswood International • The leading school in the mid-level segment . Purchase of 80% equity stake Valued at 6.4x EV/EBITDA 2020 Targeted capacity of c. 2,980 learners by 2021 (Current 760 learners) Capital allocation from GCAP of GEL 24 million² August 2019 Alaverdi winery • Purchase of 100% equity stake ⚫ 244 hectares of vineyards and 135 hectares of free land in the Kakheti region The acquisition tripled the Wine Business's production capacity Capital allocation from GCAP of GEL 16 million • November 2019 Qartli wind farm Purchase of 100% equity stake Valued at 7.2x EV/EBITDA 2020 • 21MW installed capacity • US$ 14.4 million cash consideration . Capital allocation from GCAP of GEL 13 million February March April May June July August October November December April 2019 Amboli • Second largest player in Georgian auto service industry ⚫ GEL 3.4 million cash consideration to acquire 80% equity stake • Valued at 0.7x EV/Sales 2018 • Additional Equity capital injection of GEL 1.6 million June 2019 British-Georgian Academy • The leading school in the premium segment • • Purchase of 70% equity stake Valued at 6.4x EV/EBITDA 2020 Targeted capacity of c. 3,200 learners by 2021 (Current 800 learners) Capital allocation from GCAP of GEL 75million² July 2019 Green School • The leading player in affordable segment Purchase of 80-901% equity stake Valued at 5.6x EV/EBITDA³ Targeted capacity of c. 5,000 learners by 2024 (Current 1,250 learners) Capital allocation from GCAP of GEL 21million² October 2019 Hydrolea ⚫ Purchase of 100% equity stake ⚫ Three operating HPPs with 21MW installed capacity ⚫ Greenfield HPP project with 19MW targeted capacity Capital allocation from GCAP of GEL 30 million December 2019 Four famous Georgian restaurants • Our hospitality business partnered (50% ownership) with the famous Georgian chef, Tekuna Gachechiladze, owner of four leading Georgian restaurants. • Total consideration of GEL 1.3 million. (1) 80% equity stake in the current campus and 90% equity stake in three new schools that will be developed under green school brand. (2) Includes actual and projected future capital allocations. (3) An additional earn-out may apply subject to EBITDA target within the next three academic years. The cumulative EV paid will not exceed 5.6x EV/EBITDA of the respective year (including performance-related deferred consideration). Page 8#9Content 1. Georgia Capital at a glance 2. 3. Georgia Capital strategy & capital allocations Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices GEORGIA CAPITAL Page 9#10Georgia Capital - Your ground floor investment opportunity GEORGIA CAPITAL Capitalizing on fast-growing economy with strong governance, management and access to capital Access to capital GEORGIA CAPITAL Access to management Three fundamental enablers Strong corporate governance Page 10#11Strong corporate governance How we run Georgia Capital Strong board, composed solely of independent directors with extensive international experience Approximately 35 employees at the management company level Highly experienced management team in each portfolio company with a strong measure of independence Solid corporate governance and oversight GEORGIA CAPITAL Page 11#12Strong corporate governance Aligned shareholder and management interests by share compensation Platform costs - targeted at maximum c.2% of MCAP Key things to know GEORGIA CAPITAL 1 Cash preservation is a key target for GCAP: two thirds of total operating expenses are related to share-based compensation. 33% 2 c. 1% of executives compensation is in fixed shares; with another 1% being fully discretionary, subject to achieving KPIs. 67% 3 GCAP's management's compensation is paid in long-vested (6-year) shares only, with no cash component. cash non-cash Page 12#13Managing investments Share ownership plan of management in portfolio companies Investment stage Sector Portfolio Company Development Focus Pipeline Acquisition/ Entrance Early Late Listed Target to exit Discovery Young Portfolio Companies Large Portfolio Companies Mature Portfolio Companies GEORGIA CAPITAL Possible completion of Exit Digital Education services Auto Service Renewable Energy Hospitality & Beverages Commercial RE Housing P&C Development Insurance Water Utility Georgia Healthcare Group Bank of Georgia Group ➤ Discovery stage Institutionalisation/ Independence Low Hands-on management approach ➤ Rapid growth organically and through M&A ➤ Active investment stage Strategic guidance / advisory approach Focus on efficiency improvements ➤ Diversification of revenue streams Introduction of dividend discipline ➤ Sustainable shareholder value creation and dividend distributions High Page 13#14Two new strategic priorities Over time Georgia Capital will: 1. Decrease share of listed assets to 20% and 2. manage third-party money Over the next 5 years we will reshape our 31-Dec-2019 balance sheet In 5 years GEORGIA CAPITAL GEORGIA CAPITAL 20% Management company 54% 46% 80% Third-party managed capital GCAP investment portfolio Private Listed Private Listed Page 14#15Our investment philosophy We will pick well, we will manage very well and sell extremely well GEORGIA CAPITAL 2nd exit 1st exit: cash-out ■ Trade sale, IPO, Fund, Promote Entry point Cash inflows through leveraging up and/or dividend payouts Using scale to access to debt capital markets Low acquisition multiples 360-degree analysis Exit options set prior to making investment Entering a new industry with a small ticket size 10x = 10y Cash generation at both GCAP and portfolio company level is a key success factor Page 15#16Capital allocations 360-degree analysis - a strong foundation for value creation Buying assets at attractive prices is a key part of our investment philosophy Targeting to buy assets at a higher discount to their listed peers than GCAP's fair value discount GCAP fair value Buyback opportunity 360° analysis opportunity Investment Target peer multiple Sale opportunity Market value of our listed portfolio companies Discounts at 26 February 2020 New opportunities ? GEORGIA CAPITAL BOG GHG 42% ? discount ? GEORGIA CAPITAL Page 16#17Capital allocations Buybacks US$45 million share buyback programme, commenced in Jun-18, was completed in Aug-19 GEORGIA CAPITAL US$ 45 million 3,336,843 GBP 10.45 Programme amount Shares bought back Average price of shares bought back On 1 August 2019 we announced market purchase of CGEO shares of up to US$ 20 million for the management trust Shares of US$ 19.1 million were purchased as of 26 February 2020. Page 17#18Capital allocations Clear exit paths GEORGIA CAPITAL Trade sale IPO Fund Promote Water Utility X X X P&C Insurance X Housing Development X Renewable Energy X X X Hospitality & Commercial X X Beverages X Education X X X X Auto Service Digital services Exit options are set prior to making an investment decision Page 18#19Capital allocations How we evaluate investment performance ROIC, MOIC and IRR combination is the key decision making matrix MOIC and IRR at GCAP level Money multiples. We want to know achievable money multiples with all acquisitions and analyze them in combination with the expected IRR. MOIC and IRR combination. Targeting to have a combination of high MOIC and high IRR. Realised and unrealised MOICs are equally important for us. GEORGIA CAPITAL ROIC for financing projects and reinvestment at portfolio companies' level ROIC. We measure our expected return on the total invested capital at each portfolio company level. Different yields will be appropriate for different industries, US$ dollar and Lari businesses Page 19#20Content 1. Georgia Capital at a glance 2. 3. Georgia Capital strategy & capital allocations Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices GEORGIA CAPITAL Page 20#21NAV Statement | 31 December 2019 GEORGIA CAPITAL GEL thousands unless otherwise noted Dec-18 1. Value creation 2a. 2b. Buybacks 2c. Dividends Investments 3. Operating expenses 4. Liquidity management/ FX /Other Dec-19 Change % Listed Portfolio Companies GHG' 520,332 (199,127) 112,856 (3,982) BoG¹ 457,495 165,190 (24,950) Total Listed Portfolio Value 977,827 (33,937) 112,856 (28,932) Listed Portfolio value change % -3.5% 11.5% -3.0% 1,027,814 5.1% 430,079 597,735 -17.3% 30.7% 5.1% Private Portfolio Companies Late Stage 628,326 157,009 698 (93,287) 692,746 10.3% Water Utility 431,017 74,953 (22,000) 483,970 12.3% Housing Development 66,785 35,624 698 (59,254) 43,853 -34.3% P&C Insurance 130,524 46,432 (12,033) 164,923 26.4% Early Stage 271,288 (5,098) 173,287 439,477 62.0% Renewable Energy 61,182 45,618 106,800 74.6% Hospitality and Commercial RE 149,079 9,918 86,561 245,558 64.7% Beverages 61,027 (15,016) 41,108 87,119 42.8% Of which, wine 56,771 (1,098) 16,369 72,042 26.9% Of which, beer 4,256 (13,918) 24,739 15,077 NMF Pipeline Education Auto Service Digital Services Other 5,933 16,397 70,716 93,046 NMF 7,071 49,279 56,350 NMF (1,326) 17,056 10,027 25,757 NMF 8,790 8,790 NMF 188 (659) 2,620 2,149 NMF Total Private Portfolio Value 905,547 Private Portfolio value change % 168,308 18.6% 244,701 27.0% (93,287) -10.3% 1,225,269 35.3% 35.3% Total Portfolio Value (1) 1,883,374 134,371 Total Portfolio value change % 7.1% 357,557 19.0% (122,219) 2,253,083 19.6% -6.5% 19.6% Net Debt (2) (196,915) (193,482) (124,781) 72,875 (19,869) (31,393) (493,565) NMF of which, Cash and liquid funds 299,650 of which, Loans issued 305,480 (188,842) (4,640) (124,781) 72,875 (19,869) of which, Gross Debt (802,045) 172,856 (148,956) (55,293) 211,889 -29.3% 151,884 -50.3% (857,338) 6.9% Net other assets/ (liabilities) (3) 1,762 (51,219) 49,344 (14,522) of which, share-based compensation (14,522) 8,985 14,522 (5,650) NMF Net Asset Value (1)+(2)+(3) 1,688,221 NAV growth % Shares outstanding Net Asset Value per share 134,371 8.0% 112,856 6.7% (124,781) -7.4% (34,391) 0.0% -2.0% (22,408) -1.3% 1,753,868 3.9% 3.9% 38,089,558 44.32 3.53 NAV per share growth % NAV per share, Listed portfolio NAV per share, Private portfolio 8.0% 3,435,438 (0.95) -2.1% (4,083,025) 37,441,971 -1.7% 1.43 (0.90) (0.59) 46.84 5.7% 3.2% 0.0% -2.0% -1.3% 5.7% 23.01 21.31 21.07 -8.4% 25.77 20.9% Page 21 (1) Number of shares owned in GHG and BoG were 93,011,414 (Dec-18: 75,118,503) and 9,784,716 (Dec-18: 9,784,716) as of 31-Dec-19, respectively.#22NAV per share (GEL) growth in 2019 GEL unless otherwise noted NAV per share up 5.7% to GEL 46.84 during 2019 NAV per share change % -2.0% 10.0% 3.2% -2.1% -2.0% -1.3% 5.7% GEL 44.32 (0.89) 1.43 (0.95) 4.42 (0.9) (0.59) GEL 46.84 listed assets NAV per share Value creation on Value creation on 31-Dec-18 private portfolio Buybacks & Cancellation GHG share exchange facility Operating expenses Liquidity management & FX & Other NAV per share 31-Dec-19 GEORGIA CAPITAL ➤ NAV per share up 5.7% to GEL 46.84 on the back of 3.9% growth in NAV and 1.7% decrease in number of shares outstanding ➤ The private businesses led to 10.1% growth in NAV per share, which was offset by 4.4% negative impact from listed businesses ➤ Value creation from listed assets: GEL 165 million value creation from BOG, offset by GEL 199 million decrease in the value of our holding in GHG (-2.0% impact on NAV per share during 2019) ➤ Value creation in private portfolio: GEL 168 million value creation in private portfolio (10% growth in NAV per share during 2019), of which, value creation excluding multiple change at GEL 145 million ➤ Share exchange facility: Acquisition of a 13.6% equity stake in GHG in exchange for 3.4 million CGEO share issuance valued at GEL 113 million (-2.1% impact on NAV per share) o Our holding in GHG increased from 57% to 70.6% on 18 December 2019 following the completion of a Share Exchange Facility whereby GCAP exchanged one share in GHG for 0.192 shares in GCAP.1 ➤ Buybacks & Cancellation: 3.5 million CGEO shares worth GEL 125 million bought back in 2019, while 2.7 million shares were cancelled (3.2% growth in NAV per share) ➤ Platform costs: FY19 management platform related costs (-2.0% impact on NAV per share). о Management expense fee ratio at 1.8%, below our targeted 2% of MCAP. ➤ FY19 net interest, FX and other costs (-1.3% impact on NAV per share). (1) Further details of the transaction are available at the following link: https://georgiacapital.ge/ir/ghg-shares Page 22#23NAV growth in 2019 Value creation of GEL 134 million contributed 8.0% to NAV growth GEL millions unless otherwise noted NAV change % -2.0% 10.0% 6.7% -7.4% -2.0% -1.3% 3.9% 168 GEL 1,688 (34) NAV 31-Dec-18 113 ➤ 3.4 million CGEO share issuance valued at GEL 113 million for the acquisition of 13.6% stake in GHG. (125) (34) GEL 1,754 (22) Value creation on Value creation on listed assets private portfolio GHG share exchange facility Buybacks Operating expenses Liquidity NAV management / FX / 31-Dec-19 Other GEORGIA CAPITAL Page 23#24Value creation across private portfolio | 2019 Private Portfolio Businesses Operating Performance Greenfields Multiple Change and FX GEL thousands (1) (2) (3) Listed GHG BOG Value Creation (1)+(2)+(3) (33,937) (199,127) 165,190 Private Late Stage Water Utility 109,745 34,961 23,602 168,308 136,926 20,083 157,009 78,954 (4,001) 74,953 Housing Development 35,624 I 35,624 P&C Insurance 22,348 24,084 46,432 Early Stage (27,181) 18,564 3,519 (5,098) Renewable Energy Hospitality & Commercial Real Estate (8,646) 18,564 Beverages (18,535) 3,519 of which, wine (4,617) 3,519 9,918 (15,016) (1,098) of which, beer (13,918) Pipeline Education 16,397 T (13,918) 16,397 17,056 17,056 GEORGIA CAPITAL Auto Service Digital Services Other (659) Total Portfolio 109,745 34,961 23,602 (659) 134,371 Page 24#25Capital allocations | FY19 GEORGIA CAPITAL GEL millions Investments Buybacks Dividends Total¹ BOG (25) (25) Listed portfolio Private late stage portfolio GHG Water Utility Housing Development P&C Insurance Investment highlights ➤ GHG: Acquisition of 13.6% holding in GHG as part of Share Exchange Facility ➤ Renewable Energy: Acquisition of Hydrolea HPPs and Qartli WPPS 113 (4) 109 (22) (22) (59) (59) ➤ Hospitality & Commercial RE: GEL 37.3 million cash capital for development of pipeline hotels and GEL 49.3 million finished commercial properties ➤ Wine business: Acquisition of Alaverdi winery (12) (12) ➤ Beer business: Acquisition of prominent beverages brand Kazbegi and working capital financing. Renewable Energy Hospitality & Commercial RE Private early stage portfolio Beverages 41 Of which, wine 46 46 46 87 87 ➤ Education: Investment in high quality partnerships with three top schools with excellent management teams: BGA, Buckswood and Green school ➤ Auto Service: Acquisition of Amboli and launch of PTI business 41 ➤ Digital Services: Acquisition of Redberry 16 16 Of which, beer 25 25 Buyback highlights Education 49 49 Auto Service 10 10 ➤ 3.5 million shares were bought back for total cash consideration of GEL 125 million (US$ 43.8 million), of which: Pipeline portfolio Digital Services 9 9 o 2.1 million shares were bought under the US$ 45 million share buyback programme Other 2 2 o 1.4 million shares for the management trust. Buybacks GCAP 125 125 o 2.7 million shares were cancelled and 0.7 shares were transferred to management trust Total 358 125 (122) 360 (1) In line with our new strategic priority to raise third part money through upcoming funds, we are assessing future capital allocations and expect to provide capital allocation outlook in due course. Page 25#26GCAP Performance highlights | 2019 Income statement highlights Cash flow highlights GEORGIA CAPITAL FY19 FY18 Change 229 164 +40% | I I I GEL millions ¦ Dividend income Net interest expense FY19 122 GEL millions Group consolidated operating cash flow* * Including GHG, adjusted for IFRS16 impact. (7) GCAP operating expenses (34) Total value creation GEL 134 million GCAP Standalone interest coverage | FY19 GCAP net operating income 81 2.8x Total investment return 12 Net income 72 Strong dividend inflows of GEL 122 million from our portfolio businesses. GCAP standalone cash expense Coverage | FY19 8.4x Page 26#27Liquidity management at Georgia Capital GEL 493 million Net debt | 31-Dec-2019 ► Georgia Capital issued inaugural US$ 300mln international corporate bonds in March 2018 Net debt overview | 31-Dec-2019 364 152 Liquid assets & Loans issued | 31-Dec-2019 GEL 364 million 212 Loans issued (42%) Cash & liquid funds (58%) GEORGIA CAPITAL GEL millions 212 Cash and liquid funds 152 Loans issued 857 493 Gross debt Liquid assets & Loans issued Net debt GEL millions GEL millions Portfolio over net debt 4.6x Listed assets over net debt 2.1x LTV Ratio below its 30% target 28%* * Net debt divided by portfolio value. Loans to portfolio companies are included in portfolio value instead of net debt. 212 Cumulative maturity gap 47 105 364 Cash Up to 6 months Up to 1 year Total liquidity 31 December 2019 Page 27#28Portfolio performance highlights | FY19 GHG' Water Utility Private late stage Housing Development +13.3% 849.9 963.1 +16.6% +9.6% +11.6% GEORGIA CAPITAL P&C Insurance +25.7% -11.1% +21.3% 132.3 154.2 163.5 +14.0% 149.1 125.2 +7.3% 99.6 95.1 99.0 132.4 117.7 NMF 67.5 75.3 -6.8% 83.4 81.6 11.9% 17.1 18.3 20.9 19.5 16.0 (3.0) (10.2) (8.9) Revenue EBITDA Operating cash flow Revenue EBITDA Operating cash flow Earned premiums, Net income Operating cash flow Revenue EBITDA (1) Excluding IFRS 16. FY18 ■FY19 FY18 ■FY19 Operating cash flow net FY18 FY19 FY18 FY19 Private early stage Renewable Energy Hospitality & Commercial RE Wine Beer Pipeline Auto Service³ -2.3% +43.6% +48.9% -19.8% NMF 42.2 16.2 NME 38.5 37.6 +22.1% 43.6 30.9 -42.6% 29.4 NME 29.3 53.1% NMF NME -1.0% 13.1 24.7 18.0 2.8 (0.8) (0.7) 5.7 3.3 7.2 8.7 0.1 2.8 3.1 0.4 (13.8) (6.5) (13.8) (14.0) (1.4) (1.1) Revenue EBITDA Operating cash flow Revenue² NOI Operating cash flow Revenue EBITDA FY18 ■FY19 Operating FY18 FY19 cash flow Revenue Revenue FY18 ■FY19 EBITDA FY18 FY19 Operating cash flow FY18 EBITDA ■FY19 Operating cash flow (2) Including revaluation gain. (3) Includes PTI & Amboli Page 28#29Content 1. Georgia Capital at a glance 2. 3. Georgia Capital strategy & capital allocations Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices GEORGIA CAPITAL Page 29#30Listed portfolio Georgia Healthcare Group (GHG) overview http://ghg.com.ge/ GEORGIA HEALTHCARE GROUP GEORGIA CAPITAL " Investment rationale Very low base: healthcare services spending per capita only US$ 308 (EU average is US$ 3,2111) Growing market: healthcare spending growth estimated at 8% CAGR 2020-2021 Value creation potential Total healthcare market (including healthcare services and pharmacy) GEL million Total Market CAGR 2020-2021 of 8% CAGR Total Market CAGR 2011-2019 of 13% 4,765 20-21 4,397 4,062 3,760 3,488 968 10% " High-growth potential driven by opportunity to develop medical tourism and Polyclinics (outpatient clinics) 2,464 2,034 1,552 1,716 543 " Only integrated player in the region with significant cost advantage in scale and synergies 438 696 1,092 3,062 3,218 607 1,217 884 806 734 669 1,311 1,404 1,504 1,611 1,722 7% 305 343 908 782 675 714 " " Well positioned to take advantage of the expected long term macroeconomic and structural growth drivers ROIC enhancement and substantially increased free cash flow generation following the completion of significant three-year investment programme in 2018. 573 659 814 1,013 1,273 1,622 1,508 1,395 1,752 1,903 2,075 9% 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020F 2021F Source: Frost & Sullivan analysis 2017 Pharma ■Hospitals Polyclinics Medium to long term strategic targets by segment Hospitals • Double digit revenue CAGR Clinics Pharmacy and Distribution Medical Insurance State healthcare spending dynamics GEL million 10% Double digit revenue CAGR - 20%+ • Double digit revenue CAGR Increase contribution to the Group segments 9% 9% 9% 8% 8% Gradually improving to 28-30% EBITDA margin • Gradually improving to 25% EBITDA margin 9%+ EBITDA margin • Combined ratio <97% (1) Double digit revenue CAGR next 5 years Source: World Bank, 2016 data. GHG medium to long term targets Mid-teen EBITDA CAGR next 5 years Gradually approaching ROIC c.15-17% 681 710 760 754 754 574 281 343 305 329 337 364 2015 2016 2017 2018 2019E 2020B State Healthcare Spending - UHC State Healthcare Spending - Other Healthcare spending as a % of total state spending Source: Ministry of finance of Georgia Page 30#31Listed portfolio Georgia Healthcare Group (GHG) overview (cont'd) http://ghg.com.ge/ Stock price performance 4.50 GBP 1.70 4.00 IPO price 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Selected operating metrics 2018 GEORGIA HEALTHCARE GROUP GEORGIA CAPITAL Financial metrics (GEL millions) 2015 20161 2017 2018 2019 Healthcare services EBITDA, excl. IFRS 16 Pharmacy and distribution EBITDA, excl. IFRS 16 54 74 70 76 844 Change 9.9% N/A 39 52 65 25.1% GBP 1.22 as of 26-Feb-2020 Healthcare services EBITDA margin, excl. IFRS 16 Pharmacy and distribution EBITDA margin, excl. IFRS 16 Net profit, excl. IFRS 16 27.4% 30.2% 26.4% 24.9% 24.6%4 -0.3ppts N/A 4.3% 8.6% 10.1% 10.6% 0.5ppts 24 375 46 53 69 29.8% EPS (GEL) 0.15 0.24 0.23 0.27 0.36 33.4% Dividend payout ratio N/A N/A N/A 20% 25% 5.Oppts Feb-19 May-19 Aug-19 Nov-19 Feb-20 Performance track record Capex evolution ROIC Declared 3-year investment 20.0% 111 programme at IPO in 2015 14.9% 13.9% 12.8% 90 15.0% GEL millions 71 10 64 9.0% 12.7% 11 42 10.0% 102 10.8% 11.0% 80 13 64 53 7.9% 29 5.0% 2016 2017 2018 2019 2015 2016 2017 Development capex 2018 Maintanance capex 2019 ⚫ROIC adjusted³ ROIC 2019 Change Number of hospitals & clinics 53 52 -1 Number of hospital beds 2,967 2,967 NMF Hospital bed occupancy rate² 54.7% 57.1% +2.4ppts Number of community clinic beds 353 353 NMF Number of pharmacies 270 296 +26 Number of bills issued (millions) 27.1 28.8 +1.7 Number of individuals insured c. 157,000 c. 236,000 50.3% Insurance claims retention rates within Group 39.4% 42.5% +3.1 ppts (1) (2) FY16 includes only May-Dec pharmacy and distribution results. Excluding emergency beds. (3) Adjusted to exclude newly launched hospitals and polyclinics that are in roll-out phase. (4) (5) Calculated based on aggregation of Hospitals, Clinics and Diagnostic segment results. Excluding deferred tax adjustment of GEL 24 million. GEL millions EBITDA & Operating cash flow (excluding IFRS16) Revenue 81% 81% 54% 54% 75% EBITDA CAGR 28.9% 154 132 125 108 100 78 56 45 42 58 2015 EBITDA 2016 Operating cash flow GEL millions 426 246 CAGR 40.7% 748 850 963 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA to cash conversion ratio Page 31#32Listed portfolio Bank of Georgia (BOG) Overview http://bankofgeorgiagroup.com/ Investment rationale ■ The first entity from Georgia to be listed on the premium segment of the Main Market of the London Stock Exchange (LSE:BGEO) since February 2012 High standards of transparency and governance Leading market position¹ in Georgia by assets (36.3%), loans (34.9%), client deposits (36.3%) and equity (29.8%) as of 31 December 2019 ■Market with stable growth perspectives ■ Strong brand name recognition and retail banking franchise Sustainable growth combined with strong capital, liquidity and robust profitability Outstanding ROAE performance " Dividend per share growing at 30.7% CAGR in 2010-2019 years Value creation potential ■Loan book growth c.15% ■ Maintenance of dividend pay-out ratio within 25-40% Banking business key targets ROAE 20%+ Loan book growth c.15% (1)Market data based on standalone accounts as published by the National Bank of Georgia (NBG) www.nbg.gov.ge BANK OF GEORGIA Market opportunity Banking sector assets, loans and deposits CAGR 25.0% GEORGIA CAPITAL 50 40 30 47.2 39.7 34.6 30.1 31.9 25.2 26.6 20.6 22.3 26.2 20 8.9 10 1.3 0.8 1.7 2.5 0.9 1.0 0.7 4.2 7.2 4.6 1.7 2.7 8.3 10.6 6.3 12.7 14.4 17.3 18.9 23.0 16.0 19.8 13.0 1.3 2.1 6.0 76.7 8.7 5.2 7.6 97 3.2 3.6 4.0 5.5 10.5 17.0 14.3 11.6 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: NBG Assets, GEL bln Loans, GEL bln Deposits, GEL bln Robust capital management track record Capital position: aiming to maintain +200bps buffer for CET1 and Tier 1 capital ratios over minimum regulatory requirement during the medium term ➤ Regular dividends: Aiming 25-40% dividend payout ratio ➤ Cash dividend paid GEL 648mln + during 2013-2019, within the targeted payout range over past 7 years Page 32#33Listed portfolio Bank of Georgia (BOG) Overview (cont'd) http://bankofgeorgiagroup.com/ 23 18 13 8 Stock price performance May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Feb-19 Mar-19 GBP 17.14 as of 26-Feb-2020 Apr-19 May-19 Jun-19 Jul-19 -19 Aug-19 Aug-19 Sep-19 Oct-19 Nov-19 Nov-19 Dec-19 Jan-20 Feb-20 Selected operating metrics Retail clients ('000) Digital transactions (millions) Net profit ROAE NIM NPL coverage Loan portfolio Cost/income BANK OF GEORGIA GEORGIA CAPITAL Financial metrics (GEL millions) 2015 2016 2017 2018 2019 Change 21.9% 22.2% 25.2% 26.4%² 26.1%³ -0.3ppts 7.7% 7.4% 7.3% 6.5% 5.6% -0.9ppts 83.4% 86.7% 92.7% 90.5% 80.9% -9.6ppts 5,367 6,682 7,741 9,398 11,931 +27.0% 35.5% 37.7% 37.7% 36.7% 37.8% +1.1ppts GEL 11.4 billion loan portfolio breakdown* | 31 December 2019 Corporate loans, GEL 3,878.1 million, 34.0% 2018 2019 2,441 2,540 156.4 181.2 * Bank of Georgia Standalone. Retail loans, GEL 7,536.9 million, 66.0% Loan book growth Dividend record¹ (GEL m) GEL millions 30.0% 500 370 379 25.0% 296 274 Payout 10% ratio: 15% 30% 36% 33% 34% 32% 30% 30% 26% 27.0% 150 24.5% 20.8% 20.0% Dividend per share CAGR (GEL) - 30.7% 2.55 2.67 3.00 2.44 2.08 1.92 21.4% 1.68 100 1.60 2.00 1.20 15.0% 15.9% 50 0.56 122 124 130 98 102 0.24 72 80 1.00 9 24 51 10.0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 0 0.00 2010 2011 2012 2013 2014 2015 2016 2017 Total dividend paid for the year 2018 Dividend per share 2019 (1) Actual dividend per share information for 2010-2016 years are adjusted for 19.9% Bog share issuance. (2) Adjusted for demerger related expenses, one-off impact of re-measurement of deferred tax balance and termination costs of the former CEO. (3) ROAE adjusted for termination costs of the former CEO and executive management. Page 33#34Private late stage portfolio Water utility business overview Investment rationale Regulated monopoly in Tbilisi and surrounding districts with high entry barriers ■ Sectoral output increasing at a robust growth rate (on average 9.5% in the last 10 years) ■ Stable regulatory environment with fair return on investment ■149MW hydro power plants linked to Water Utility Value creation potential ■ EU harmonization reforms in progress in utilities sector, expected to drive water tariffs up High GDP growth combined with rapid tourism growth drive high demand from corporates Energy market deregulation positively affecting electricity sales price Upside opportunity from efficiency gains Stable dividend distribution capacity Existing assets WACC of 15.99% for the first regulation period (2018-2020) Effect of new consumers on the market 13.6 TWh 6% 1st May 2019 13.6 TWh 20% GEORGIA CAPITAL ■ Direct consumers' demand ■Direct consumers' with own generation ■Distribution companies 79% 65% ■ Export ■ System Losses Electricity market deregulation, effective from May 2019 enabled the company to immediately increase the selling price per KWh by at least 1.5x Efficiency gains (2019) Down from 16% in 2014 Net book value WACC Return on assets New CAPEX Elevation kWh/m3 Depreciation Level 4 2.3 1 0.1% I ■ Independent regulator - GNERC¹ ■ New tariff setting methodology since August, 2017 3-year tariff setting period I Level 3 2.2 3.6% Metering program and grid rehabilitation works focused on higher elevation zones Total operating expenses Level 2 0.8 9.9% ■ The WSS 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 Level 1 0.4 33.6% Allowed revenue Level 0 0.0 52.8% % of total water supply (1) Georgian National Energy and Water Supply Regulatory Commission (GNERC) is an independent body that regulates the utilities market. Page 34 Down from 49% in 2014 Up from 35% in 2014#35GEL millions Private late stage portfolio Water utility business overview (cont'd) Key highlights | 31 December 2019 Financial metrics (GEL millions) GEORGIA CAPITAL 2015 2016 2017 2018 2019 Change 31-Dec-19 31-Dec-18 GEL millions, unless otherwise noted Change Total revenue 119 127 135 149 163 9.6% LTM EBITDA 95 83 14.0% Multiple applied 8.8 8.8 NMF Enterprise value 837 738 13.5% Of which, utility revenue Of which, energy revenue Of which, other revenue Cash flow from operations FCF 105 109 119 132 133 1.1% 9 10 10 5 8 16. 9 20 NMF 8 10 20.5% 52 54 70 82 99 21.3% 17 (2) (58) (66) 17 NMF Net debt (353) (307) 15.1% Equity fair value 484 431 12.3% Selected operating metrics millions except for connections 2018 2019 Change LTM ROIC1 12.5% 13.7% -1.2ppt Water Utility Water sales (m³) 179.8 178.4 -0.8% Valuation peer group³ Self-produced electricity consumption (kwh) 193.2 174.0 -9.9% New connections 5,015 5,439 8.5% Company Aguas Andinas Country Chile Ticker AGUAS-A Stock Exchange Sant Comerc Energy Electricity generation (kwh) 323.8 351.6 8.6% EASTW² Thailand EASTW Thailand Energy sales (kwh) 130.6 177.6 35.9% Tallinna Vesi Estonia TVEAT Tallinn Electricity purchases (kwh) 43.9 37.7 -14.1% Performance track record EBITDA 2014-2019 +72.0% 14.0% 55 62 69 73 83 95 GEL millions CAPEX 49 53 35 171 137 -42.2% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 (1) (2) ROIC is calculated as EBITDA less depreciation, divided by aggregate amount of total equity and borrowed funds. Eastern Water Resources Dev. & Man. (3) Manila Water was removed from peer group due to ongoing issues with Government regarding concession agreement. 99 kWh millions Self-produced electricity consumption 2014-2019 -43.6% -9.9% 309 319 256 239 193 174 2014 2015 2016 2017 2018 2019 Page 35#36Household size further reduction driving demand for housing market Average household size and home ownership, latest available data Private late stage portfolio Housing development business overview Investment rationale ■ Shortage of housing from Soviet era combined with Georgian tradition of multi generations living under one roof - average household size is significantly higher at 3.3 compared to Eastern or Western Europe ■ Most of the housing stock dates back to Soviet era and is amortised ■In line with the economic growth, urbanization level is expected to increase from current low level Value creation potential ■ Unlock land value by developing housing projects ■ Development of third-party land - franchise m² brand name. ■ Earn Construction management fees from third-party projects and bring construction works in-house In 2018 the number of residential unit transactions peaked at 34,600 units with record growth and the share of new apartment sales has been increasing each year. Total share of new apartments sold 59% 57% 54% 60% 54% 75% 71% 76% 69% 68% 33% 38% 52% 57% 60% Spain France 92% 91% 90% 84% 97% 83% 85% 82% 90% 69% Thousands 2014-2018 CAGR - 16.8% 34.6 27.0 Thousands 22.3 53 18.6 17.8 20.8 15.3 6.2 6.7 11.6 3.3 2.8 2.8 2.8 2.6 2.4 2.3 2.3 2.2 2.2 12.4 11.1 10.6 11.7 13.8 <1960 Georgia Croatia Slovakia Poland Romania Bulgaria Hungary EU Estonia Lithuania Average Household Size Urbanization Level Source: Eurostat, TBC Capital, World Bank, National statistics office of Georgia. 2014 2015 2016 2017 Home Ownership Old apartments sold New apartments sold 2018 Apartment units by development period Source: Galt and Taggart Source: TBC Capital Page 36 1961-1990 Source: IMF, Central banks 28% increase in the number of transactions in Tbilisi in 2018 1991-2005 7 2006-2019 Finland Malta Germany Belgium Mortgage loans to GDP %, 2018 45% 43% 43% 41% 36% 35% 31% 30% 28% 25% 22% 17% 16% 14% 13% Estonia Slovakia Austria Ireland Italy Lithuania Latvia Most of the housing stock needs replacement Around 205,000 units (62%) of the apartments were built between 1961 and 1990 and are out of their usable lifecycle. 205 66 m უძრავი ქონეგა REAL ESTATE Significant room for further growth in mortgages GEORGIA CAPITAL Slovenia Georgia#37Private late stage portfolio Housing development business overview (cont'd) Key highlights | 31 December 2019 m უძრავი ქონეგა REAL ESTATE GEORGIA CAPITAL Financial metrics (GEL millions)1 2015 2016 2017 2018 2019 Change GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Apartments sales revenue Construction revenue 45 96 92 95 55 -41.7% 36 60 65.2% 205 174 17.7% EBITDA 18 11 28 16 (3) NMF Enterprise value Net debt Digomi residential project stage I update (161) (107) 50.0% Equity fair value 44 67 -34.3% Sq.m. of apartments sold Sq.m. sold as % of total available space IFRS revenue recognition² Dividends (lifetime) 152 93 63.6% Total sales value Cash received Price per square meter US$ Performance track record 10 completed projects 358k sq.m (2,855 apartments developed with 100% sales Gross Buildable Area on completed projects progress and US$ 251mln sales value) 3,225 apartments sold 31 December 2019 16,980 77% 32% US$ 18 million US$ 8 million 1,053 US$ 41.9mln land value unlocked 2 on-going projects (82.2% as a % of total with sales value of US$ 276mln) (with 1,067 apartments under development) US$ 55.1mln dividends distributed over 7 years 72 (1) Housing development business' functional currency is US dollars. (2) Revenue from apartments sales is recognized over the time based on the IFRS construction progress (proportion of costs incurred up to date to total expected project cost). Percentage of completion calculated based on total costs of the building is applied to apartment selling price to recognize revenue from apartment sale. Page 37#38Private late stage portfolio P&C insurance business overview Market share | YTD Sep-19 (earned premium, gross) ALDAGI GEORGIA CAPITAL Market composition by product lines 9.6% 8.5% 9.0% 6.1% 6.0% 6,811 3,810 3,446 1,184 2,655 2,687 421 175 I Insurance Density USD 1 UK Switzerland France Belgium Source: Swiss Re Institute (1) Including healthcare insurance. Germany Slovenia Poland Bulgaria Turkey Russia Georgia Investment rationale Significantly underpenetrated P&C insurance market in Georgia (0.6% penetration) • Market leader with a powerful distribution network of point of sale and sales agents Value creation potential Compulsory border TPL effective from 1 March 2018 • Local TPL expected to kick in and provide access to untapped retail CASCO insurance market with only 4% existing penetration • Increasing footprint in untapped MSME sector, where Aldagi's revenues have grown by 93% in 2019 (from GEL 0.7mln to GEL 1.3mln) . Developing and introducing new digital channels to simplify purchase of insurance products Undisputed leader in providing insurance solutions to corporate clients Insurance penetration & density VIG 20% 17% 29% Property, 25% Other, 9% 12% 8% 5% 5% 3% Liability, 12% Other IC Group Ardi TBC Unison Insurance Source: Insurance State Supervision Service of Georgia Irao GPIH Aldagi Market & Aldagi Revenue (GEL millions) Georgia P&C Penetration 0.6% Density $25 YTD Sep-19: CAGR 2010-2018 Market revenue GEL 254mln Aldagi share 29%, Market - 13% Aldagi - 15% Motor, 42% Source: Internal data Market PL & Combined Ratio | YTD Sep-19 Credit Life, 13% Total Market Profit GEL 28.7 mln 286 12.8* 4.9% 227 3.0% 202 2.2% 1.4% 1.4% 1.2% 179 117% 10.7 98% 100% 104% 82% 86% 142 115 122 149 152 44 106 100 Market CR 92% 80% 46 6.0 38% 37% 37% 35% 38% 2.0 37% 32% 27% 32% 0.7 0.0 (1.7) (2.0) 67 71 86 29 32 42 46 52 90 Aldagi 2010 2011 2012 2013 2014 2015 2016 2017 2018 TBC Unison Ardi Insurance* Irao Alfa fa GPIH Other Insurance penetration Market PL Combined ratio Market Aldagi -Market share *Aldagi and TBC Insurance net profits and combined ratios are based on IFRS amounts. Source: Insurance State Supervision Service of Georgia Page 38#39Private late stage portfolio P&C insurance business overview (cont'd) Key highlights | 31 December 2019 ALDAGI Financial metrics (GEL millions) GEORGIA CAPITAL GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change 2015 2016 2017 2018 2019 Change Earned premiums, net 47 50 63 67 75 11.6% LTM net income Multiple applied4 Equity FV LTM ROAE Valuation peer group 18 182 3.3% Net income 121 14 16 182 18 3.3% 9.0 7.4 22.3% Combined ratio 79% 73% 75% 75% 82% 6.6ppts Loss ratio 43% 35% 40% 38% 42% 3.4ppts 165 131 26.4% Expense ratio 36% 38% 35% 37% 41% 3.3ppts 30.4% 34.4%² -4.0ppts Solvency ratio N/A 160% 180% 136% 119% -17ppts Selected operating metrics Company Country Dhipaya Insurance Thailand Ticker TIP Stock Exchange Thailand Zavarovalnica Triglav Slovenia ZVTG Ljubljana Pozavarovalnica Sava Slovenia POSR Ljubljana Aksigorta Turkey AKGRT Istanbul Anadolu Sigorta Turkey ANSGR Istanbul 2018 2019 change (y-o-y) Corporate insurance policies written³ Retail insurance policies written 60,227 91,361 51.7% 150,246 171,509 14.2% Performance track record Earned premium, gross FY19 Earned premium, gross composition: Segment: Corporate 47%, Retail 42%, Compulsory lines 7%, Government 4% Product: Motor 36%, Property 25%, Credit life 13% Liability 11%, Other 15% CAGR 14% 2019 highlights (GEL millions) Profit & Dividend payout ratio (GEL millions) Retail segment growth (premiums earned) 16% ROAE 28% 37% 37% 38% 34%2 30% 48% CAGR 21% Retail Segment Concentration in portfolio (+3 ppt y-o-y) 182 18 16 14 Retail profit growth 12% 11 68% 7 61% 29% 86 90 98 51% Market Share 68 71 (-3 ppt y-o-y) 51 64% Corporate 84% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Renewal Ratio Profit Dividend payout ratio Retail 64% (1) Excluding impact of one-off FX contract with GEL 8 million loss. (2) Adjusted for non-recurring items. (3) Excluding credit life insurance. (4) Multiples improved significantly across all peer group companies Page 39#40Private early stage portfolio Renewable energy business overview Investment rationale ■ Growing electricity market as supply lags behind the increasing demand, creating opportunities. ■ Underutilized energy resources - availability of economically feasible hydro and wind projects. ■ Cheap to develop - up to US$1.5min for 1MW hydro and up to US$1.4mln for wind development on average with 1.5x higher capacity factors compared to Europe over the last decade. Value creation potential Opportunity to establish a renewable energy platform with up to 440 MW operating capacity over the medium-term, targeting to capture approximately one third of deregulated electricity market. Energy consumption is expected to grow at least by CAGR 5% over the next 10-15 years on the back of following key drivers: о Rapid tourism growth combined with high GDP growth with pronounced growth in electricity- heavy sectors. о о Increasing penetration of domestic appliances, with accelerating imports of electricity-intensive conventional domestic devices. Increasing number of installed residential and industrial air conditioning systems on the back of decreasing unit prices, expected to result in at least 5x growth in penetration level over the next decade. Actual and forecasted consumption Energy consumption has grown at 5.3% CAGR in last 10 years and is expected to further grow at least by CAGR 5% over the next 15 years Electricity supply and consumption, 2019 GEORGIA CAPITAL 1,500 Deficit (4 months) 1,000 500 0 Deficit (6 months) Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Source: ESCO Hydros&Wind TPPS Imports Consumption Electricity deficit during July-April 22% of total consumption produced by gas- fired TPPS, 13% - imported Low base and high CDD¹ point towards 5x increase in AC penetration by 2030 Air conditioners are the most electricity-intensive conventional domestic devices and increasing penetration of ACs quickly eats away the surplus electricity on the market in the summer months GWh 23,000 18,000 13,000 Consumption CAGR 2009-2019: 5.3% 8,000 3,000 2009 Consumption CAGR 2019-2030: 5% 2011 2013 2015 2017 2019 2021 2023 Forecasted generation Hydros & Wind Actual generation Hydros & Wind 2025 2027 Forecasted consumption Actual consumption 2029 Growth of internal consumption: 7.7% in 2017, 6.1% in 2018 and 1.5% in 2019 Anticipated deficit of at least 6.4 TWh by 2030 1,457 299 418 107 223 362 6.4 TWh 88% 47% 36% 33% 31% 10% Cyprus Croatia Bulgaria AC penetration (2018) Italy Spain Georgia Mean CDD Source: World Bank's World Development indicators; Geostat, Galt&Taggart, Eurostat (1) cooling degree day Page 40#41Private early stage portfolio Renewable energy business overview (cont'd) Key highlights | 31 December 2019 Financial metrics (GEL millions) GEORGIA CAPITAL GEL millions, unless otherwise noted 31-Dec-19 At acquisition price (GCAP share) 107 65%-100% GCAP ownership Following the buyout of the 34.4% minority shareholder in GRPC on 25 February 2020, Renewable Energy consists of wholly-owned hydro and wind power plants with 91MW installed capacity in aggregate. Renewable energy platform 31-Dec-18 2015 2016 2017 2018 2019 Change Change Development Capex NMF NMF 77 68 33 -51.8% 61 74.6% EBITDA NMF NMF (1.7) (0.8) 13 NMF 65% NMF A year о Hydro: 210 MW Wind: 228 MW о Of which operational 71MW Of which operational 21MW о Renewable energy projects overview | 31 December 2019 о Greenfield projects MWs Cost per MW Target commissioning² Gross generation о PPA Current stage of significant growth - increasing installed capacity to 91MW and progressing on the 350MW pipeline The first HPP, Mestiachala HPPs launched in 1H19 on time and within budget before suffering flood damage Acquisition of Hydrolea HPPs with an aggregate 21MW installed capacity, adding GEL 1.0 million EBITDA in 2019 since acquisition Acquisition of 21MW Qartli wind farm, the only operational wind farm in Georgia Construction works commenced on 46MW Zoti HPPs in 4Q19, expected to be operational in 2H21 The Government approved the concept of 108MW wind power plant ("WPP") projects, expected to be commissioned in 2H22 (GWh)1 Mestiachala HPPS 50 1.2 1H19 174 Yes Operational4 Mestiachala FY19 performance4 Zoti HPPS 46 1.3 2H21 173 Yes Under Construction Bakhvi 2 HPP 36 1.3 1H22 130 Yes Feasibility Racha HPPS 38 1.5 1H23 168 No Feasibility GEL thousands, unless otherwise noted Wind Tbilisi Wind Kaspi 54 1.2 2H22 172 Yes Development Revenue 54 1.4 2H22 211 Yes Development Wind (other) 99 1.4 TBD 340 Yes Feasibility Darchi HPP 19 1.4 2H22 89 Yes Feasibility Of which, business interruption insurance reimbursement EBITDA Recent acquisitions 5 Generation (Gwh)4 14,777 10,047 12,588 54.1 Hydrolea HPPS 21 1.8 2H19 105 Yes Operational Qartli Wind Farm 21 1.4 2H19 85 Yes Operational о Total 438 1,647 (1) (2) (3) (4) ➤ Targeting to earn on average c.12% US$ dollar ROICS³ from renewable energy projects. Generation capacity refers to target gross annual generation. Target commissioning dates are indicative and subject to regulatory procedures. Target return on invested capital is calculated based on average stabilized EBITDA divided by total invested capital. The first phase (30MW) was launched on 8 April 2019, followed by the second phase (20MW) on 4 June 2019. Mestiachala HPPs were flooded and taken offline in late July 2019. (5) Recently acquired projects are wholly owned by Georgia Capital PLC. O о Operations successfully resumed at the first phase (30MW) within the expected timeline and at the originally planned generation level in December 2019. Restoration works continue on the second phase (20MW HPP), expected to return online in 1H21. The insurance company has confirmed the amount of Bl reimbursement for the year 2019 for both HPPs and is in process of remitting the funds to the business. Page 41#42Private early stage portfolio Hospitality and commercial real estate business overview Investment rationale Record number of tourists visiting Georgia every year: 5.1 million visitors in 2019 (up 6.8% y-o-y) with 16% CAGR over the last 3 years; Value creation potential " Grow Portfolio of rent-earning assets through residential developments/opportunistic acquisitions Reach more than 1,000 hotel rooms. Currently approximately 1,222 rooms are confirmed, of which 273 are operational, 460 are under construction and 489 are under design stage. Targeting mostly 3-star and 4-star hotels, mostly taping unpenetrated markets in Georgian regions Leasable modern office stock remains scarce Georgian office stock's significant portion is non-refurbished, soviet-era stock (traditional). Although Tbilisi's has one of the highest modern office rents among the CEE¹ cities. Traditional, 28% Modern, 22% Owner Occupied, 50% Source: Galt and Taggart (1) Central and Eastern Europe. GEORGIA CAPITAL Arrivals of tourists and tourism revenue | Georgia Source: Georgian National Tourism Administration National Bank of Georgia 5.1 4.8 4.1 3.3 2.9 2.9 3.0 2.5 3.2 3.3 2.7 1.8 1.7 1.8 1.9 2.1 1.4 1.0 2011 2012 2013 2014 Arrivals of tourists (min) 2015 2016 - Tourism revenue(US$ bln) 2017 2018 2019 Hotel market is expected to expand significantly Accommodation rooms and beds in Tbilisi ('000) Tbilisi accommodation rooms breakdown | 30-Sep-19 International chain brands 24% Rooms in other accomodations 23 Modern office rents and yields in 2018 Prime yield in Tbilisi stands at 11.7%, compared to average yield of 7.1% in peer cities 20 18 16% 16 40 12% 30 8% 20 12% 7% 6% 6% 6% 5% 10 0 Istanbul Kyiv Athens 38 32 25 25 23 22 19 19 18 Warsaw Budapest Tbilisi Rent, US$ per sq Prime Yield Vilnius Tallinn Sofia Riga Bratislava Zagreb 13 8% 8% 12% 10 7% 9 6% 8 8% 10,244 Rooms 7 6 4% 18 18 17 0% 2015 2016 2017 2018 30-Sep-19 Rooms Beds Source: Galt and Taggart 76% Page 42#43Private early stage portfolio Hospitality and commercial real estate business overview (cont'd) GEORGIA CAPITAL Key highlights | 31 December 2019 Financial metrics (GEL millions)² GEL millions, unless otherwise noted 31-Dec-19 NAV LTM ROIC1 6.5% 31-Dec-18 Change 246 149 64.7% NO1³ from operating leases NO13 from hospitality services Revaluation gain 16.0% -9.5ppt Total net Operating Income Commercial real estate portfolio 2016 2017 2018 2019 3 3 5 2 28 2 31 42 42 68 129 62222 Change 40.8% -6.1% -21.5% 25 -19.8% +90.3% Gross yield (leased portfolio) Occupancy rate Leased area (sq.m.) Selected operating metrics Hotel rooms pipeline as of 31 December 20194 Target opening 2018 2019 Change Hotel Location Rooms date4 Current Stage Total Cost US$ mln 9.9% 9.5% -0.4ppt Ramada Encore Kazbegi, Tbilisi GUDAURI LODGE Capital city 152 Q1-2018 Operational 12.1 Region 121 Q4-2019 Operational 16.0 90.1% 87.1% -3.0ppt 22,331 34,212 53.2% Ramada Melikishvili, Tbilisi Kempinski, Tbilisi Capital city 125 Q2-2020 Construction 13.5 Capital city 99 Q4-2020 Seti Square in Mestia, Svaneti Region 52 Q1-2021 Ramada Encore FY19 performance Ramada Kutaisi Region 124 Q1-2021 Construction Construction Construction 26.4 4.9 9.4 Kakheti Wine & Spa Region 60 Q2-2022 Construction 12.8 ADR, US$ 62 Occupancy% Shovi, Racha Region 109 Q2-2022 Design 5.6 Mestia, Svaneti Region 140 Q1-2023 Design 11.7 53.7% Telavi Zugdidi Total Region 110 Q4-2022 Design 15.6 Region 130 Q3-2023 Design 13.7 1,222 140.3 RevPAR, US$ 33 (1) ROIC is calculated as NOI divided by aggregate amount of total equity and borrowed funds. (2) Hospitality & Commercial real estate business' functional currency is US dollars. (3) Net operating income. (4) Target opening dates remain subject to adjustment following passing of the design stage. (5) Target return on invested capital is calculated based on average stabilized EBITDA divided by total invested capital. ➤ Targeting to earn on average c.14% US$ dollar ROICS³ from hotels. Page 43#4447 Private early stage portfolio Wine business overview " Investment rationale Georgia is considered the "cradle of wine" with a rich, 8,000-year history of wine-making and home to over 500 unique grape varieties Georgia's favorable trade regimes (free trade agreements with EU and China) provide potential for export growth for beverages 20.0 " Growing urbanization and tourism inflows are raising demand for bottled wine locally 16.0 " 12.0 8.5 8.0 Approximately 27% of the tourism inflows is spent on food & beverages Strong demand in the Georgia's export markets resulted in a 9% y-o-y increase in volume in 2019, with export bottles sold reaching a 14 year high of 93 million. Value creation potential " Best-in-class distribution network platform Grow vineyard base to 1,000 hectares, from current 704 hectares Georgian wine exports (Bottles, US$ millions) Export Sales ($US) over past 6 years increased at 8.7% CAGR 144 185 238 203 170 114 98 77 50 36 H 93 2013 2014 2015 2016 ■Wine exports (Bottles) Source: LEPL Georgian National wine agency 2017 2018 Wine exports ($US millions) 2019 19.9 GEORGIA CAPITAL Vineyard productivity - 2019 (TON/HA) At 5.1 tons per hectare, grapes yield is three times lower in the country compared to other top exporters. However, the yield equals 8.5 tons/ha on average for the large-scale producers ---Georgia - Large-scale producers 8.0 8.3 8.9 9.3 4.0 5.1 4.6 4.9 5.7 0.0 Georgia Moldova Source: TBC Capital Portugal Wine consumption per capita, liters (2019) Primarily established export markets 7.0 3.5 4.6 3.8 1.7 Georgia China Ukraine Source: TBC Capital Japan Kazakhstan Poland Russia Spain France Russia Argentina Chile Target and emerging export markets 31.3 26.4 28.0 23.0 24.1 62% 11.9 13.6 USA Czechia Netherlands Germany UK Belgium Ukraine 9.9 10.1 10.1 10. Turkey Germany Italy New Zealand Australia 16.5 16.9 17.1 13.3 USA China South Africa Georgian wine bottle sales, by export countries 37% 28% 11% 10% 3% 4% 7% 4%5% 8%6% 8%7% Russia Ukraine Baltics Poland Kazakhstan Country share in Georgian wine export I Country share in our export portfolio Source: National statistics office of Georgia; China Other Page 44#45Private early stage portfolio Wine business overview (cont'd) Key highlights | 31 December 2019 Financial metrics (GEL millions) GEORGIA CAPITAL 2015 2016 2017 2018 2019 Change GEL millions, unless otherwise noted 31-Dec-19 31-Dec-18 Change Wine Revenue 18 18 20 29 42 GCAP ownership 87% 80% +7ppts Gross profit margin 52% 53% 49% 45% 48% 43.6% -3.2ppts LTM EBITDA² 9.5 5.0 89.1% Wine EBITDA 2 3 5 7 9 +22.1% Multiple applied 10.0 9.1 9.9% Operating cashflow 2.6 1.8 1.5 0.1 2.8 NMF Enterprise value 95 46 46 NMF Net debt (31) (7) NMF ➤ FY19 operating cash flow at GEL 2.8 million (GEL 0.1 million in FY18), benefiting from decreased reliance on grape purchases Kindzmarauli at acquisition price 26 NMF Selected operating metrics (in '000) Alaverdi at acquisition price 16 NMF 2018 2019 Change Equity fair value 72 57 26.9% Wine sales bottles 4,346 5,865 35.0% LTM ROIC1 6.2% 12.1% -5.9ppt Valuation peer group Company Purcari Wineries Country Moldova Romania Vina Concha Y Toro Vina San Pedro Bodegas Esmeralda Chile Ticker Wine CONCHA Stock Exchange Of which, export sales Export share (%) 3,101 4,544 46.5% 71.4% 77.5% +6.1ppt Bucharest Chile Argentina VSPT Sant Comerc Sant Comerc In August 2019 the wine business acquired 100% stake in Alaverdi, adding 244 hectares of vineyards and tripling its production capacity ESME Buenos Aires (1) ROIC is calculated as EBITDA less depreciation, plus divided by average amount of total equity and borrowed fund. (2) LTM EBITDA includes distribution business. LTM EBITDA is stated excluding Kindzmarauli and Alaverdi, valued at acquisition price in 2018 and 2019, respectively. Page 45#46Private early stage portfolio Beer business overview Investment rationale Georgia falls behind beer consumption per capita against EU Georgia's favorable trade regimes (free trade agreements with EU and China) provide potential for export growth for beverages Value creation potential Best-in-class distribution network platform 10-year exclusivity from Heineken to produce and sell beer in Georgia One of the strongest brand equity across Georgian beer market Strong export market for carbonated soft drinks (CSD) Growing market Export value of US$ 26.5mln (41.8mln litres) in 2018. GEORGIA CAPITAL 50%+ CAGR in 2015-2018 years; greater organic demand from CIS countries. Export to more than 25 countries 。 Recently more countries have been importing Georgian CSD, showing its growing popularity. Annual beer consumption (liter per capita) in 2019² Per capita beer consumption implies room for growth Georgia falls behind beer consumption per capita against EU 66 99 12% 83 84 49 49 34 35 8 5 15 Azerbaijan Armenia Turkey China Georgia Ukraine Russia USA EU Source: TBC Capital (1) Management estimate at the end of 2019. (2) Georgia 2019, other countries 2016. 20% 9% Domestic market share¹ | 31-Dec-19 27% 32% Improved product mix allowed the business to increase beer market share from 14% to 20% in 2019 ■ Efes Georgia ■Zedazeni GBG ■Castel ■ Other Page 46#47Private early stage portfolio Beer business overview (cont'd) Key highlights | 31 December 2019 Financial metrics (GEL millions) GEORGIA CAPITAL Annually 31-Dec-19 31-Dec-18 Change GEL millions, unless otherwise noted 2017 2018 2019 2H18 Semi-annually 1H19 GCAP ownership 87% 80% +7ppts Beer Revenue Beer EBITDA 18 29 44 16 18 2H19 25 (6) (14) (6) (6) (6) 0 LTM Revenue² 47 28 67.9% Selected operating metrics (in '000) Multiple applied 2.2 2.2 NMF 2018 2019 Change Enterprise Value 104 61 70.7% Beer sales liters ('000) 13,808 21,831 58.1% Lemonade sales liters ('000) 2,174 3,282 51.0% Net debt (86) (64) 34.8% Key highlights Black Lion at acquisition price 7 NMF Equity fair value LTM ROIC1 Valuation peer group 15 4 NMF ➤ Strong beer sales volumes in 3Q19, driving market share growth from 14% in 2018 to 20% in 2019 ➤ Beer business EBITDA at break-even level in 2H19 -15.5% -22.0% +6.5ppt Focused on launching new brands within the first five months of 2019 Apr-19: Acquisition of Georgia's oldest beer brand - Kazbegi; also launched Kazbegi lemonade Company Anadolu Efes Grupa Zywiec Turk Tuborg Cerveceria San Juan Country Ticker Stock exchange Turkey AEFES Istanbul Poland ZWC Warsaw KRUSOVICE May-19: Krusovice full scale launch Turkey TBORG Istanbul the Peru SNJUANC1 Lima პაიასი May-19: Local light beer launch Jun-19: Heineken brand Amstel launch AMSTEL (1) (2) ROIC is calculated as EBITDA less depreciation, plus divided by average amount of total equity and borrowed fund. Normalised for annualization of revenues from newly launched brands. LTM revenue is stated excluding Black Lion in 2018, as Black Lion was valued at cost as of 31 December 2018. Heineken Jul-19: Heineken launch, exclusive Heineken producer in Georgia Page 47#48Pipeline Attractive service business - Auto Service We aim to build a diversified business model combining different auto-related services to capitalise on the large and growing automotive services market Auto park in Georgia ('000) CAGR 2012-2019: Auto park- 7% Auto park by age in 2019: 0-1 years -0.5% 7-9 years - 5.8% Cars per 1,000 people - 7% 1-3 years 1.7% 4-6 years - 3.8% 10-12 years 7.2% 12+ years -81.0% 934 1,024 1,108 1,196 1,258 1,322 1,376 860 GEORGIA CAPITAL Room for growth in the highly fragmented auto service market in Georgia Leading player 16% The rest of the market is dominated by small, owner operated lower-end service shops. 268 279 173 189 209 226 245 256 2012 2013 2014 2015 Source: MOIA Autopark 2016 2017 2018 2019 Total auto service market - Car services and parts Car insurance Secondary car trading c. GEL 1 billion market c. GEL 2.8 billion PTI No of private pessanger cars per 1,000 people c. GEL 0.1 billion market c. GEL 1.7 billion market c. GEL 50 million market We have allocated GEL 10 million¹ capital to auto service business in 2019 Successfully launched the periodic technical inspection business (PTI) Periodic technical inspection business highlights Acquired second largest player, Amboli, in Georgian auto service industry Amboli transaction Highlights Total investment GCAP allocated capital (1) Holdback of GEL 0.6 million. GEL 48mln Equity stake purchased Total cash consideration GEL 5mln Enterprise Value Additional equity capital injection ➤ Amboli deal was closed on 28 June 2019 80% GEL 3.4mln¹ 0.7x EV/Sales 2018 GEL 1.6mln Page 48#49Pipeline Periodic technical inspection business overview Investment rationale Georgia's Auto park continues to grow steadily, with 7.4% CAGR during the years 2012-2019 Key highlights | 31 December 2019 GEORGIA CAPITAL " Georgia lags behind developed countries by number of private passenger cars per capita, showing room for further growth* GEL millions, unless otherwise noted 31-Dec-19 30-Jun-19 Change " Vehicles older than 10 years represent 90% of total auto park EBITDA² 6.7 6.7 NMF " " Value creation potential " In July 2018, the business (Greenway Georgia or "GWG") won state tender to launch and operate 51 periodic technical inspection lines across Georgia with a 10-year license. Currently, inspection covers the basic technical control of vehicles. The government plans to gradually tighten procedures in 2020 to try and reduce the level of harmful emissions* GWG is the only player on the market with support from an international partner, Applus+, a Spain- headquartered worldwide leader in testing, inspection and certification services, with a market presence in more than 70 countries * Source: GALT & TAGGART Multiple applied 10.4 10.1 2.8% Enterprise Value 70.0 68 2.8% Net debt (49) (49) 1.0% PTI | Equity fair value 21 19 7.2% Amboli acquisition price 5 5 NMF Market opportunity Number of passenger cars per 1,000 people, (2017) 527 510 419 418 378 351 348 322 313 307 Auto service business | Equity fair value 26 24 5.7% Source: GALT & TAGGART Selected metrics Number of inspection lines I 256 1 I 202 51 147 112 Financial highlights Current market share¹ 36% Operating highlights Czech rpb Slovenia Estonia Lithuania Company Opus Group VICOM Applus Services Sweden Hungary Croatia Latvia Belarus Valuation peer group Country Sweden Singapore Spain Russia Georgia Kazakhstan Turkey Azerbaijan Ticker OPUS VCM APPS Bolsa de Madrid Stock Exchange Stockholm Singapore GEL thousands Revenue³ Gross margin EBITDA EBITDA margin (1) Based on available inspection lines. (2) Combination of the last six months and the next six months earnings. (3) Technical inspection prices are fixed set at GEL 60 and GEL 100 for light vehicles and heavy vehicles, respectively. 2019 2019 12,917 Cars serviced 342,275 66% of which, primary 246,932 3,262 of which, secondary 95,343 25% ➤ All inspection centers were constructed and put into operations within 6 months (end of Feb-19) ➤ Average time per checks decreased significantly from 25 minutes upon launch to 11 minutes at 31-Dec-19 Page 49#50Pipeline Education business overview Fragmented education market offers attractive opportunity for a scaled player Industry investment rationale ➤ Highly fragmented private school market ➤ Large and growing market ➤ Efficiency upside High trading multiples ➤ Low base - 3.8% of GDP, compared to EU average of 4.6% * © 2017 data: World bank, Eurostat Medium term demand outlook for private high schools currently- 10% private Private 10% in 5-years - 20% private 20% State 90% 80% Currently c.570,000 learners across Georgia Diversified business model with strategy 1-2-3 Strong platform to facilitate growth and scale to become the leading integrated education player with up to 30,000 learners by 2025 Annual tuition fee: 3,500 GEL 15,000+ 1 Premium learners BGA Annual tuition fee: 7,000 learners GEL 5,000 15,000 2 Mid-level Two partners Annual tuition fee: 16,500 learners Up to GEL 5,000 3 Affordable Three partners ➤ Partnership model, with 70-90% majority stakes ➤ Education business holding company won't exist ➤ GCAP involvement will be limited to: strategy setting, hiring financial director, oversight of CAPEX spending GEL 70 million+ EBITDA by 2025 GEL 185 million gross capital allocation from GCAP through 2025 GEORGIA CAPITAL Page 50#51Pipeline Acquisitions of majority stakes in three leading schools Premium Mid-level British-Georgian Academy 2 Buckswood Transaction Purchase of 70% equity stake. Purchase of 80% equity stake. highlights ➤ Valued at 6.4x EV / EBITDA 2020. Valued at 6.4x EV/EBITDA 2020. Affordable 3 Green School GEORGIA CAPITAL Purchase of 80% - 90%¹ equity stake. Valued at 5.6x EV/EBITDA. Three high quality school partnerships across premium, mid-level and affordable education segments, providing a clear pathway to approximately 11,180 learners and to more than 50% of our targeted GEL 70 million EBITDA by 2025 School Segment Deal close date Total capital allocation from GCAP² Debt/Equity GCAP ownership Current capacity of learners Targeted capacity of learners Targeted cost per learner (GEL) BGA Buckswood Green School Premium Mid-level Affordable 23 July 2019 29 July 2019 22 August 2019 OGEL 75 million OGEL 24 million 50% 50% 70% 800 3,200 35,000 - 40,000 80% 760 2,980 13,000 16,000 Total OGEL 21 million GEL 120 million 50% 80% - 90%¹ 1,250 5,000 6,500 - 8,500 2,810 11,180 (1) (2) 80% equity stake in the current campus and 90% equity stake in three new schools that will be developed under green school brand. Includes actual and projected future capital allocations. Page 51#52Pipeline Acquisition of the leading Georgian digital marketing agency GEORGIA CAPITAL Acquisition of Redberry enables us to have a platform for investments in the digital business US$ 2.8 million new capital injected for digital start-up development About Redberry ➤ One of the most successful Georgian digital marketing agency Providing tech-based marketing solutions to large Georgian corporates and government agencies US$ 0.4 million cash consideration to acquire 60% equity stake 1 2 Joint ventures with corporates - partnership model with minority stake of c. 20%. Creating digital start-ups focused and applicable to Georgia (c. US$ 0.1mln per start-up) Redberry has developed app "Lunchoba", engaged in delivering ready-food made to the offices. Page 52#53Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices GEORGIA CAPITAL Page 53#54Sovereign ratings with stable outlook and favourable macro fundamentals Key Ratings Highlights Rating Agency Rating Outlook Affirmed SWEDEN FINLAND NORWAY MOODY'S Ba2 Stable September 2019 No sea Copenhador Wetric Sen LITHUANIA S&P Global BB Stable October 2019 BELARUS IRELAND London BLANDS Amterdam Berlin POLAND GERMANY Fitch Ratings BB Stable February 2019 BELOIDS Parks CZECH REPUB Georgia is favorably placed among peers Bay, of day SAIN Fitch Rating Country Country Rating Rabat MOROCCO Outlook Armenia BB- Stable Azerbaijan BB+ Stable Belarus B Stable Czech Republic AA- Stable Georgia BB Stable Kazakhstan BBB Stable Turkey BB- Stable Ukraine B Positive ADI HUNGARY FRANCE V Zagreb ROMANIA ITALY FULANIA ALGERIA Mediterranean Sea General Facts Georgia Kyiv UKRAINE LIBYA EGYP KAZAKHSTAN Actans GEORGIA CAPITAL RUSSIA INDIANG UYU Bioce Seu UZBEKISTAN Toshkent KYRGYZSTAN Ankara Yerevan VerRADAL TURKEY TURKMENISTAN Ashgabat Dushane, TAKISTAN Baghdad IRAQ IRAN Riyadh AFGHANISTAN PAKISTAN Islamabad INDIA Area: 69,700 sq km Population (2018): 3.7 million Capital: Tbilisi; Economy Life expectancy: 73.5 years Official language: Georgian Literacy: 100% Currency (code): Lari (GEL) Nominal GDP (Geostat) 2018: GEL 41.1 billion (US$16.2 billion) Real GDP growth rate 2014-2018: 4.6%, 2.9%, 2.8%, 4.8%, 4.7% Real GDP 2007-2018 annual average growth rate: 4.5% GDP per capita 2018 (PPP, international dollar) IMF: 11,485 Annual inflation 2019: 4.9% External public debt to GDP 2018: 34.3% DINGHA Page 54#55Georgia's key economic drivers Top performer globally in WB Doing Business over the past 12 years Liberal economic policy " Liberty Act (effective January 2014) ensures a credible fiscal and monetary framework: Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%; Business friendly environment and low tax regime (attested by favourable international rankings); GEORGIA CAPITAL Regional logistics and tourism hub A natural transport and logistics hub, connecting land-locked energy rich countries in the east and European markets in the west " " Access to a market of 2.8 billion customers without customs duties: Free trade agreements with EU, China, Hong Kong, CIS and Turkey and GSP with USA, Canada, Japan, Norway and Switzerland; FTA with Israel and India under consideration. Tourism revenues on the rise: tourism inflows stood at US$ 3.3 billion in 2019 and international travelers reached 9.4 million in 2019 (up 7.8% y-o-y), out of which tourist arrivals were up 6.8% y-o-y to 5.1 million. 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$ 1.3 billion (7.8% of GDP) in 2018. Strong FDI Support from international community Electricity transit hub potential Political environment stabilised FDI averaged 9.8% of GDP in 2007-2018. Georgia and the EU signed an Association Agreement and DCFTA in June 2014 Visa-free travel to the EU is another major success in Georgian foreign policy. Georgian passport holders were granted free visa entrance to the EU countries from 28 March 2017. Discussions commenced with the USA to drive inward investments and exports. Strong political support from NATO, EU, US, UN and member of WTO since 2000; Substantial support from DFIs, the US and EU. Developed, stable and competitively priced energy sector " " " " " " " " Only 20% of hydropower capacity utilized; 155 renewable (HPPS/WPPS/SPPS) energy power plants are in various stages of construction or development. Georgia imports natural gas mainly from Azerbaijan. Significantly boosted transmission capacity in recent years, a new 400 kV line to Turkey and 500 kV line to Azerbaijan built, other transmission lines to Armenia and Russia upgraded. Additional 2,000 MW transmission capacity development in the pipeline, facilitating cross-border electricity trade and energy swaps to Eastern Europe. Georgia underscored its commitment to European values by securing a democratic transfer of political power in successive parliamentary, presidential, and local elections and by signing an Association Agreement and free trade agreement with the EU. New constitution amendments passed in 2013 to enhance governing responsibility of Parliament and reduce the powers of the Presidency. Continued economic relationship with Russia, although economic dependence is relatively low. Russia began issuing visas to Georgians in March 2009; Georgia abolished visa requirements for Russians - Russia announced the easing of visa procedures for Georgians citizens effective December 23, 2015. Direct flights between the two countries resumed in January 2010. However, they have been banned again since July 2019 following the decision from Russia. Member of WTO since 2000, allowed Russia's access to WTO; In 2013 trade restored with Russia. " In 2019, Russia accounted for 13.2% of Georgia's exports and 10.8% of imports. Page 55#56Institutional oriented reforms Ease of Doing Business | 2020 (WB Doing Business Report) New Zealand Singapore US Georgia Norway Lithuania Estonia Kazakhstan Russia Azerbaijan Poland Czech rep. Armenia Turkey Romania Bulgaria Ukraine 7 9 11 18 25 28 34 40 41 41 47 55 Economic Freedom Index | 2019 (Heritage Foundation) UK USA 12 15 Estonia Georgia Latvia Bulgaria Romania Azerbaijan Hungary Turkey France Italy 56 16 35 37 GEORGIA CAPITAL Top 8 in Europe region out of 44 countries 42 60 64 68 71 80 98 61 64 Russia Ukraine Business Bribery Risk, 2019 | Trace International Estonia Open Budget Index, 2017 | International Budget Partnership Georgia is on par with EU 14 Lithuania 24 member states Japan Georgia 25 27 Czech Republic 34 Latvia 42 Romania 68 Armenia Bulgaria Azerbaijan 峇爬 27 77 79 35 Corruption Perception Index | TI 2019 Lithuania Poland Georgia Czech Republic 41 44 44 Latvia 44 Italy 51 Slovakia 59 Belarus Romania Bulgaria Armenia Turkey Kazakhstan Moldova 66 70 74 77 91 113 120 Ukraine Azerbaijan Russia Uzbekistan 126 126 137 153 Sources: Transparency International, Heritage Foundation, World Bank, Trace International. Belarus Russia Moldova Ukraine Turkey Kazakhstan Uzbekistan 147 New Zealand Norway Georgia 5 up from 16th in 2015 US 7 Italy 13 Russia 15 Germany 17 Czech rep. 25 Poland 30 108 Turkey 32 110 Ukraine 117 39 122 Kazakhstan 42 123 India 53 126 Azerbaijan 77 181 Page 56#572010 2011 2012 Debt to GDP (SNA 2008) Data Sources: NBG, GeoStat, IMF 2013 2014 2015 2016 Debt to GDP (SNA 1996) 2017 Methodological changes led GDP and external measures to improve Nominal GDP and GDP Per Capita 50 40 G Gel bn After transition, 2018 GDP increased by 8.6%, out of which 3% was due to methodological changes, and 5.6% due to improved sources US$ GEORGIA CAPITAL CA and FDI 6,000 20% CAB (SNA 1993) ■CAB (SNA 2008) FDI (SNA 1993) FDI (SNA 2008) 4,722 500 5,000 15% 10% 30 7.8% 7.2% 4,346 5% 4,000 20 10 10 21 22 24 25 26 27 27 29 29 31 32 34 34 36 38 41 41 45 3,500 0% 3,000 -5% 2,500 -10% -6.8% -7.3% 0 2010 2011 2,000 2012 2013 2014 2015 2016 2017 2018 -15% Public Debt GDP (SNA 1993) GDP Per Capita (SNA 2008) 36.5% 34.8% 34.7% 35.7% GDP (SNA 2008) -20% GDP Per Capita (SNA 1993) 2010 2011 2012 2013 2014 2015 2016 2017 2018 70% 42.4% 44.4% 44.9% 43.9% 41.4% 50% 60% 40% 50% 30% 40% 30% 40.3% 38.8% 42.2% 41.7% 40.4% 20% 34.8% 33.5% 20% 10% 32.6% 33.4% 10% 0% 0% Methodological changes and improved sources Methodological changes mainly concern FISIM*, R&D expenditures, and imputed rent of occupied dwellings. Improved sources include the shadow economy, illegal activities, and intermediate consumption. * Financial intermediation services indirectly measured. 2018 Page 57#5810 Diversified resilient economy Gross domestic product Source: Geostat, internal estimates US$ billion 20 7.4% 6.4% 3.6% 15 5 2011 2012 2013 2014 4.4% Nominal GDP, US$ b, LHS Diversified nominal GDP structure, 9M19 Source: Geostat Other Healthcare Communication 8% Industry 14% 4% 3% 16% 12% 4.8% 4.8% 5.2% Education 5% 8% 3.0% 2.9% Accommodation 4% Trade 14% 5% 0% Financial activities -4% 6% 2015 Transportation 6% -Real GDP, Y-o-Y growth Public administration 7% Real estate 12% Agriculture 8% Construction 8% One of the Fastest Developing Economies in the Region Source: IMF Comparative real GDP growth rates*, % (2007-2018 average) 4.9 4.5 3.6 3.7 3.8 3.0 3.1 2.4 2.0 2.0 1.7 1.5 Ukraine Latvia Estonia Russian Federation Czech Republic Lithuania * Data for Georgia corresponds to the previously used SNA 1993 methodology. Belarus Romania Armenia Moldova Poland Georgia Turkey Monthly Economic Activity Estimate, y-o-y growth Source: Geostat Economic activity increased by 5.2% in 20191 7.5 6.5 5.7 5.6 5.2 5.3 5.3 5.0 5.5 4.6 4.7 4.4 4.3 4.4 3.8 3.7 Jan-17 Feb-17 Mar-17 1 preliminary data 2.1 6.7 6.0 6.1 5.6 5.6 5.1 5.0 4.6 4.6 4.7 4.0 3.5 2.0 2.2 22 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 5.85.2 5.7 6.4 Sep-19 Oct-19 Nov-19 Dec-19 Page 58 3.8 GEORGIA CAPITAL#59500 2016 I 2016 II 2016_III Energy 1000 p 1600 1500 1400 1998 2000 1900 15.1 15.4 12.4 12.6 13.5 13.9 12.7 1800 1700 1999 Room for further job creation Unemployment rate down 1.3 ppts y-o-y to 12.7% in 2018 Sources: GeoStat 17.4 17.9 18.3 2000 2001 17.4 17.3 17.2 16.9 14.6 14.1 14.0 13.9 12.7 15 Employed Unemployment % Average monthly nominal earnings in business sector 2016 IV 2017 I Construction 2017_11 2017_III 2017 IV Trade 2018 I 2018_11 2002 2003 2004 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 III 2018 IV 2019 I 0 5 10 20 UNDP Human Development Index Sources: UNDP 2000 2001 2002 2003 0.67 2004 Sources: GeoStat 2000 Sources: GeoStat 2000 Labor force decomposition 2018 Hired workers accounted 51% in total employment in 2018 1500 1,130 1,242 922 978 1,012 1,024 1,1071,144 1,152 1,106 1,1501,187 1,319 1,241 1,316 1,983 1500 1,912 1,909 1,945 1,972 1,971 1,988 2,005 1,979 1,985 2,018 1,996 1,983 1,940 300 1000 294 331 347 361 343 345 345 335 290 284 279 276 246 1000 Tourism 2019 II 2019 III 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1,050 500 1,008 949 974 975 957 952 936 940 944 928 910 882 833 0 632 608 629 622 635 669 684 716 694 744 798 801 824 860 Real estate Total 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Hired Self-employed Unemployed Not-identified worker Page 59 2018 2019 GEORGIA CAPITAL#6080 60 40 20 -20 -40 NON Jan-05 Jul-05 Jan-06 90-Inf Jan-07 Jul-07 Jan-08 80-1nr Jan-09 60-Inf Jan-10 Jul-10 Jan-11 Jul-11 M2 Y/Y % LHS Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 M2 vs. inflation, y-o-y,% Sources: Geostat, NBG Jan-12 Jul-12 Jan-13 Inflation targeting since 2009 Inflation y-o-y vs. inflation target Sources: NBG, GeoStat Following a temporary supply side shock and inflationary expectations stemming from depreciated NEER, we expect inflation to converge to the 3% target by the end of 2020, with annual expected inflation slightly above 4% Inflation y-o-y 10 Source: GeoStat 8 6 9.0 4 7.0 6.4 2 5.0 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Jul-13 Jan-14 Apr-18 Jul-14 Jan-15 Jul-18 Jul-15 Oct-18 Jan-16 Jul-16 Jan-19 Jan-17 Apr-19 Jul-17 Jul-19 Jan-18 Jul-18 Oct-19 Jan-19 Jan-20 Jul-19 Inflation Y/Y % RHS -1.0 -3.0 20 1300 15 1200 1100 10 1000 900. 5 800 700 600 500 -5 400 3.0 1.0 -2 0 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May- Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Monthly Inflation Headline Inflation Average monthly nominal earnings Source: Geostat Core (non-food, non-energy) Inflation Monthly nominal earnings increased on average 7.7% y-o-y in 2010-2018 GEL 2010_I 2010 III 2011 I 2011_III 2012_I 2012 III 2013 I 2013 III 2014_I 2014_III 2015_I 2015 III 2016_I 2016 III 2017 I 2018 I 2017_III 2018 III 2019 I 2019_III Page 60 Mar-18 May-18 1217 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 Core inflation closer to target May-19 Jul-19 Sep-19 Nov-19 Jan-20 6 4 ~O~ 2 0 -2 10 8 GEORGIA CAPITAL#61Current account deficit down to historic lows Current account balance (% of nominal GDP) Sources: NBG Exports and Re-exports, US$ billion Source: NBG 30% 20% 10% 0% -10% -20% -9.8% -12.2% -30% -40% Double digit shrinking in the trade deficit helped CAB to improve to a historic low of under 3% in 9M19 10.0 20% 10% 8.0 0% 6.0 -10% -2.7% 40 4.0 -11.4% -5.6% -10.2% -8.1% -6.8% -6.1% -20% -11.8% -12.5% -30% 2.0 -40% 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M2018 9M2019 20 00 Goods, net Services, net Investment income, net Current transfers, net Current account FDI FDI and capital goods import Source: GeoStat 20.0% 15.0% GEORGIA CAPITAL ■Service exports Goods exports, geo-originated 0.8 1 ■Re-exports 0.5 1.1 0.9 0.5 0.7 0.9 0.4 0.3 3.6 0.7 3.1 2.7 2.9 0.3 0.5 3.1 3.1 2.6 2.5 0.2 2000 2001 2002 8158 2007 0.0 0.0 0.0 0.0 0.1 0.1 0.2 0.6 0.7 2004 2005 2006 R 20 0.2 2.5 2.5 1.9 1.6 2.6 3.0 3.0 3.1 3.3 4.0 4.5 3.5 3.6 1.1 1.3 1.6 2.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ------ 9M2018 9M2019 11.1% 11.7% 10.3% 10.3% 10.0% 6.9% 7.5% 7.2% 8.1% 8.7% 7.9% 8.5% 8.4% 8.6% 5.7% 6.2% 5.9% 6.5% 7.2% 7.6% 7.2% 8.0% 7.1% 5.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M2018 9M2019 FDI, % of GDP ■Capital Goods Import, % of GDP Page 61#62Diversified sources of capital Strong foreign investor interest Sources: GeoStat FDI, US$ mln, LHS FDI as % of GDP 2,500 25% 3600 3100 2,000 20% 2600 5.7 5.9 1,500 11.6% 12.1% 10.4% 10.9% 15% 4.7 2100 8.4% 1,000 6.9% 7.5% 6.2% 5.9% 7.2% i 7.1% 1600 3.1 10% 1100 500 5% 600 0 0% 100 2017 Source: NBG million $ Remittances - steady source of external funding Remittances increased to US$ 1.7 billion, up 9.7% y-o-y in 2019 172 185 155 165 146 144 146 150 153 151 138 137 145 125 116 125 105 85 65 45 Jan Feb Mar 2016 Apr May Jun Jul Aug Sep 2017 2018 Oct 2019 Nov Dec Jan-16 Mar-16 May-16 Jul-16 2018 9M2018 9M2019 2011 2012 2013 I Tourism inflows, US$ mn, LHS Visitors and tourism revenues Sources: GNTA, NBG 2014 2015 2016 8.7 9.4 10.0 7.9 63 6.3 6.7 8.0 6.0 4.0 2.0 Export continues to support economic growth 500 400 300 100 ༔ ༔ ༔ ཋ 。 200 Source: Georstat In 2019, exports increased by 12.4% y-o-y to US$ 3.7 billion тим Sep-16 Nov-16 Jan-17 Jul-17 Mar-17 May-17 Sep-17 Nov-17 Jan-18 Mar-18 Jul-18 May-18 Sep-18 Nov-18 Jan-19 Jul-19 Mar-19 May-19 Sep-19 Nov-19 Exports, US$ mn, LHS % change y/y, exports, RHS Page 62 -40% 2017 Number of foreign visitors, mln, RHS 60% 40% 20% 0% -20% 2018 2019 0.0 GEORGIA CAPITAL#63US$ million 2100 9% 10% Tourism sector on the rise Tourism revenues to GDP Sources: NBG, Geostat 3600 3100 2600 Spending per arrival, 2017 10% 1600 6% 1100 600 100 2011 2012 2013 2014 Source: WDI 20% 20% 25% 1496 1600 18% 17% 1310 13% 14% 20% 1400 1200 15% 1000 10% 800 5% 600 0% 400 2015 2016 2017 2018 9M2018 9M2019 200 0 Tourism revenues, % of GDP Hungary Azerbaijan Cyprus Turkey Slovenia Poland Armenia Tourism inflows, US$ mn, LHS Arrivals to country's population, 2017 Source: WDI 900 4 3.8 3.5 3.1 3.0 3 2.5 2.5 Thousands 700 425 500 328 349 306 2.5 1.7 1.7 1.6 1.3 2 1.0 1.0 0.9 1.5 1 0.5 0 Croatia Cyprus Montenegro Greece Estonia Georgia Albania Slovenia Bulgaria Latvia Czech Republic Lithuania Hungary Armenia Poland Turkey Ukraine Azerbaijan 248 300 0.6 0.5 0.5 0.5 0.3 0.2 100 Jan Feb Mar Apr May 2017 2016 Source: GNTA Number of Tourists (overnight visitors) In 2019, the number of overnight visitors increased by 6.8% y-o-y, including 4.6% growth in 2H19 despite the Russian air travel ban Czech Republic Croatia Greece Estonia Lithuania Montenegro Latvia 857 848 823 771 763 757 714 692 661 629 591 555 527 458 441 Bulgaria Georgia Albania Ukraine GEORGIA CAPITAL 140 754 570 540 439 472 339 312 Jun Jul Oct Aug Sep Nov Dec 2018 2019 Page 63#64-200 -300 -400 -500 -600 0 -100 Jan-17 Feb-17 Mar-17 Apr-17 73% 88% 99% 99% 99% May-17 Jun-17 Jul-17 Aug-17 Sep-17 1400 1200 1000 800 600 59% 45% 400 200 0 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 63% 68% 91% 67% 64% 78% 93% 99% 99% 70% 96% 86% Trade Deficit, US$ mn, LHS Electricity generation and trade, GWH Source: ESCO % change y/y, trade deficit, RHS m TPPS HPPS WPPS ⚫Imports Exports Diversified foreign trade Goods' Trade Deficit Source: GeoStat In 2019, the trade deficit narrowed by 8.5% y-o-y to US$ 5.3 billion from US$ 5.8 billion, further decreasing FX pressure 1200 50% 1000 40% 800 30% 600 20% 10% 400 0% 200 -10% 0 -20% -30% -200 -400 -600 2001 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 84% 80% 74% 63% 71% 59% 54% 55% 83% 99% 99% 99% Domestic Supply Aug-19 Sep-19 Oct-19 Nov-19 Page 64 Dec-19 54% 55% 86% 74% 73% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -30% -50% Oil imports, US$ mn Oil imports, % change, y/y 90% 70% 50% Лющий 30% 10% -10% Oil imports Source: GeoStat GEORGIA CAPITAL#65Foreign Demand, 2019 Source:, Geostat 2015Q1 Diversified foreign trade Imports of Goods, contribution to growth Source: NBG Investment goods I Intermediate goods Consumer goods Imports y/y 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% ༼f, 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 Import countries, 2019 Sources: GeoStat Armenia 3% Ukraine 5% United States 4% Azerbaijan 6% 2016Q4 201701 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 Other 18% EU countries 26% 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 China 9% Russia 11% 10% 14% 8% 24% 16% Export countries, 2019 Sources: GeoStat Turkey 18% United States 2% GEORGIA CAPITAL Machinery and transport equipment Crude materials, inedible, except fuels Beverages and tobacco ■Manufactured goods Chemicals and related products, n.e.s. Food and live animals ■Miscellaneous manufactured articles 20% ■Commodities Mineral fuels, lubricants and related materials Animal and vegetable oils, fats and waxes Other 27% EU countries 22% Ukraine 7% Armenia 11% Azerbaijan Turkey 13% 5% Russia 13% Page 65#663700 3200 2700 2200 1700 1200 700 200 -300 -800 Jan-05 May-05 Sep-05 90-uer May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Sep-10 Jan-11 Official Reserve Assets, US$ mln Net Foreign Assets, US$ mln Nonperforming loans to total gross loans, latest 2019 Sources: IMF 1.6% Georgia Poland Romania Armenia Bulgaria Kazakhstan Moldova 1.9% 2.2% 4.0% 4.1% 4.6% 5.0% 5.4% 5.7% 7.6% 7.6% 8.6% 10.0% 10.2% May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 112223334445556669998 May-18 Sep-18 Jan-19 May-19 Sep-19 Prudent monetary policy ensures macro-financial stability International reserves Sources: NBG Monetary policy rate GEORGIA CAPITAL NBG gradually increased its refinancing rate by 250 basis points up to 9%, aiming to alleviate inflationary pressures due to the NEER depreciation and negative expectations 30% 25% 20% 15% 10% 5.50% 5% 0% Armenia Georgia Russia Sources: NBG 3700 3200 14 2700 12 2200 10 1700 1200 700 200 -300 2086420 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Monetary policy rate remains low vs. peers Sources Central banks End-2017 End-2018 End-2019 9.00% 6.25% 12.00% 9.25% 9.00% Turkey Kazakhstan Belarus Ukraine Azerbaijan Page 66 Sep-11 Jan-12 May-12 Sep-12 Jan-13 3.50% 7.50% May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 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 9.00#67180 160 140 120 60 40 20 ༔ ༔ ą ཤྐ ཎྜ ¥ བླུ ° 100 80 Sources: NBG ■NBG monthly net interventions US$ mn Bilateral exchange rate indices (Dec2012= 100) Floating exchange rate - policy priority Central Bank's interventions Sources: NBG 250 220 200 150 100 50 0 -50 -100 -80 -150 -200 -120 120 4040 4040 شلش Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 60 27000 ww Mar-15 May-15 Jul-15 Sep-15 Nov-15 T -15 -40 63 -140 NBG purchased $165 million in 1H19, but sold $92.8 million in 2H19 to curb negative expectations 60 100 40 لب 33 40 20 -20 -20-30201825-20 -30 -40 -50 -65 -70 85 Jan-16 Mar-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 لا US$ sale May-19 Jul-19 Sep-19 US$ purchase Real effective exchange rate (REER) Sources: NBG 155 145 135 125 115 105 95 85 Jan-03 Jun-03 Nov-03 Apr-04 Sep-04 Feb-05 Jul-05 Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 GEORGIA CAPITAL Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 Aug-17 Jan-18 Jun-1 Nov-18 Apr-19 Sep-19 .........Linear (REER (Jan 2003=100)) Flexible exchange rate regime plays a role as a shock-absorber 180 75 160 140 70 120 65 100 60 80 60 55 40 50 20 0 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 EUR/GEL RUB/GEL Jul-17 TRY/GEL Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 ⚫USD/GEL Aug-11 REER (Jan 2003=100) Dollarization ratios Source: NBG 80 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Loan dollarization Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Deposit dollarization Page 67 80 75 70 65 60 55 50 85655#68Low public debt Public debt as % of GDP is capped at 60% 70% 50% 30% 10% -10% -1 -1.4 -1.8 -2.2 Sources: MOF 2010 2011 2012 2013 2014 2015 2016 2017 External public debt to GDP, % Total public debt to GDP, % Modified Fiscal Deficit, % of GDP (IMF programme) Source: MOF -2.6 -3.0 -3 % 2016 -2.7 2017 Breakdown of public debt Source: MOF, as of December 2019 50% 40% 30% 20% Domestic 20% External 80% 10% 0% Source: MOF Current vs Capital Expenditure, % of GDP Multilateral 56% Bilateral 15% Eurobond 7% 30% 24.6% 22.6% 25% 21.3% 21.3% 21.5% 21.6% 21.6% 21.7% 20% 15% -2.3 -2.4 10% 4.8% 5.7% 6.4% 7.1% 6.9% 6.6% 6.4% 6.2% -2.5 -2.6 -2.6 -2.7 5% 0% 2016 2017 2018 2019E 2020F 2021F 2022F 2023F 2018 2019E 2020F 2021F Current Expenditures Capital Expenditures (Acquisition of Non-financial Assets) Page 68 GEORGIA CAPITAL#69Growth-oriented government reforms (2019-2020) 1 Structural Reforms 2 Promoting Transit & Tourism Hub GEORGIA CAPITAL Tax Reform Favorable tax rates for SME development Special tax regimes for regional offices of multinational companies Enhancing easiness of tax compliance Capital Market Reform Boosting stock exchange activities Development of local bond market Pension Reform Introduction of private pension system ■ PPP Reform ■ Introduction of transparent and efficient PPP framework Public Investment Management Framework Improved efficiency of state projects ■ Law of Georgia on Entrepreneurs New law will be drafted reflecting requirements of Association Agreement between EU and Georgia Responsible Lending " Decrease household over indebtedness Regulatory actions to support responsible lending ■ Maximizing Government Effectiveness ■ Modification of government support programs based on performance ■ Association Agreement Agenda 3 Roads ■ Rail Plan to finish all spinal projects by 2020 - East-West Highway, other supporting infrastructure Baku Tbilisi Kars new railroad line Railway modernization and integration in international transport systems " General Education Reform Education Maximising quality of teaching in secondary schools ■ Fundamental Reform of Higher Education Based on the comprehensive research of the labour market needs Improvement of Vocational Education Increase involvement of the private sector in the professional education Page 69#70Content 1. Georgia Capital at a glance 2. 3. Georgia Capital strategy & capital allocations Results discussion | Georgia Capital 4. Portfolio overview 5. Georgian macro overview 6. Appendices Georgia Capital results discussion & overview Georgia Capital financial statements Portfolio companies overview Portfolio companies financial statements GEORGIA CAPITAL Page 70#71Net Asset Value evolution (1) GEL millions, except per share information Change since 31-Dec-18 GEL 44.32 GEL 53.90 +21.6% NAV per share GBP 13.05 GBP 14.81 +13.5% Private 54% Listed 58% Private 54% 1,043 Change since 31-Dec-18 GEL 46.84 +5.7% GBP 12.46 -4.5% Private 70% 1,225 906 Listed 62% Listed 59% 1,195 978 1,028 Net debt -12% (197) 31-Dec-181 Components do not sum up, as NAV also includes net other assets/liabilities. Net debt -16% (305) Net debt -28% (494) 30-Jun-191 31-Dec-191 GEORGIA CAPITAL Page 71#72Portfolio overview | 31 December 2019 GEORGIA CAPITAL GEL thousands unless otherwise noted Ownership % Valuation Method Multiples Dec-19 Jun-19 Dec-18 Listed Portfolio Companies GHG 70.6% Public markets BOG 19.9% Public markets Private Portfolio Companies Late Stage Water Utility 100% Housing Development 100% P&C Insurance 100% EV/EBITDA LTM Discounted Cash Flows P/E (LTM) 8.8 9.0 8.8 9.0 9.1 7.4 Early Stage Renewable Energy 65%-100% At acquisition price Hospitality & Commercial RE 100% NAV¹ Dec-19 1,027,814 430,079 597,735 1,225,269 1,042,811 17.5% 692,746 681,973 1.6% 483,970 459,706 5.3% 43,853 164,923 439,477 106,800 245,558 Jun-19 change 1,194,712 -14.0% 661,413 -35.0% Fair Values Dec-18 Change 977,827 5.1% 520,332 -17.3% 533,299 12.1% 457,495 30.7% 905,547 35.3% 628,326 10.3% 431,017 12.3% Beverages 87% 87,119 Of which, wine Of which, beer Pipeline Education EV/EBITDA (LTM) EV/Sales (LTM) 10.0 9.9 9.1 72,042 60,858 -27.9% 161,409 2.2% 314,901 39.6% 62,737 70.2% 182,431 34.6% 69,733 24.9% 59,633 20.8% 66,785 -34.3% 130,524 26.4% 271,288 62.0% 61,182 74.6% 149,079 61,027 64.7% 42.8% 56,771 26.9% 2.2 2.1 2.2 15,077 10,100 49.3% 4,256 NMF 93,046 45,937 NMF 5,933 NMF Auto Service Digital Services Other Total Portfolio Value (1) NAV for the hospitality & commercial real estate business refers to IFRS 13 FV measurement methodology. 70%-90% 100% 60% At acquisition price EV/EBITDA At acquisition price At cost 56,350 11,209 NMF 7,071 NMF 10.4 10.1 25,757 24,363 5.7% (1,326) NMF 8,790 8,790 NMF NMF 2,149 1,575 36.4% 188 NMF 2,253,083 2,237,523 0.7% 1,883,374 19.6% Page 72#73Number of outstanding shares overview & Value creation reconciliation | 2019 Opening balance at 31 December 2018 Buybacks* Cancellation of prior year buybacks (held in treasury) Transfer of treasury shares to management trust Share compensation awards Number of outstanding shares overview # of shares issued (1) 39,384,712 (2,085,014) (565,361) Unawarded shares in trust (2) (1,295,154) (1,409,350) (686,468) 663,168 # of outstanding shares (1) + (2) 38,089,558 (3,494,364) (565,361) (686,468) 663,168 3,435,438 Issue of shares for the acquisition of a 13.6% equity stake in GHG Closing balance at 31 December 2019 3,435,438 40,169,775 (2,727,804) 37,441,971 The buyback and cancellation together with issuance of 3.4 million shares drove a 1.7% decrease in the number of outstanding shares during 2019. *2.1 million shares bought back under the programme, were cancelled in 2019. 1.4 million shares were repurchased on the market for management trust. GEL '000, unless otherwise noted Value creation - reconciliation of Management Income Statement with NAV Statement Per Management Income Statement Per NAV Statement Dividend income (1) Investment return (2) Total (1)+(2) Listed portfolio companies Of which, Georgia Healthcare Group PLC Of which, Bank of Georgia Group PLC Private portfolio companies Late Stage Of which, Water Utility Of which, Housing Development Of which, P&C Insurance Early Stage 28,932 (62,869) (33,937) (33,937) 3,982 (203,109) (199,127) (199,127) 24,950 140,240 165,190 165,190 93,287 75,021 168,308 168,308 93,287 63,722 157,009 157,009 22,000 52,953 74,953 74,953 59,254 (23,630) 35,624 35,624 12,033 34,399 46,432 46,432 (5,098) (5,098) (5,098) Of which, Renewable energy Of which, Hospitality & Commercial Real Estate 9,918 9,918 9,918 Of which, Beverages (15,016) (15,016) (15,016) Pipeline businesses 16,396 16,396 Of which, Auto Service 17,056 17,056 Of which, other (659) (659) Total investment return / total value creation 122,219 12,152 134,371 134,371 GEORGIA CAPITAL 16,396 17,056 (659) Page 73#74Multiple of Invested Capital (MOIC) | 31 December 2019 GEL millions Gross Investment Sell down Dividends Fair Value MOIC Realized MOIC (1) (2) (3) (4) (2+3+4)/(1) (2+3)/(1) Listed Investments Georgia Healthcare Group PLC Bank of Georgia Group PLC Private investments, late stage Water Utility Housing Development 381 418 138 1,028 4.2x 1.5x 252 131 4 430 2.2x 0.5x 129 287 134 598 7.9x 3.3x 316 270 693 3.0x 0.9x 214 82 484 2.6x 0.4x 92 152 44 2.1x 1.6x P&C Insurance 10 36 165 19.7x 3.5x Private investments, early stage 450 439 1.0x Renewable Energy 99 107 1.1x Hospitality and Commercial Real Estate 194 246 1.3x Beverage 157 87 0.6x Of which, wine 62 72 1.2x Of which, beer 96 15 0.2x Pipeline Education Auto Service Digital Services Other Total 77 93 1.2x 56 56 1.0x 10 26 2.6x 9 9 1.0x 2 2 1.0x 1,224 418 408 2,253 2.5x 0.7x GEORGIA CAPITAL Page 74#752H19 NAV overview GEL thousands unless otherwise noted Jun-19 1. Value creation 2a. 2b. Buybacks 3. Operating 2c. Dividends Investments expenses 4. Liquidity management/ FX /Other Dec-19 Change % Listed Portfolio Companies GHG¹ 1,194,712 661,413 (279,754) 112,856 1,027,814 -14.0% (344,190) 112,856 430,079 -35.0% BOG' 533,299 64,436 597,735 12.1% Private Portfolio Companies 1,042,811 67,540 181,460 (66,542) 1,225,269 17.5% Late Stage 681,973 77,315 (66,542) 692,746 1.6% Water Utility 459,706 46,264 (22,000) 483,970 5.3% Housing Development 60,858 23,504 (40,509) 43,853 -27.9% P&C Insurance 161,409 7,547 (4,033) 164,923 2.2% Early Stage 314,901 (10,510) 135,086 439,477 39.6% Renewable Energy 62,737 44,063 106,800 70.2% Hospitality and Commercial RE 182,431 2,841 60,286 245,558 34.6% Beverages 69,733 (13,351) 30,737 87,119 24.9% Of which, wine 59,633 (3,689) 16,098 72,042 20.8% Of which, beer 10,100 (9,662) 14,639 15,077 49.3% Pipeline Education 45,937 735 46,374 93,046 102.6% 11,209 45,141 56,350 NMF Auto Service 24,363 1,394 25,757 5.7% Digital Services 8,790 8,790 0.0% Other 1,575 (659) 1,233 2,149 36.4% Total Portfolio Value (1) 2,237,523 (212,214) 294,316 (66,542) 2,253,083 0.7% Net Debt (2) (304,519) (150,318) (66,046) 39,916 (10,301) (2,297) (493,565) 62.1% of which, Cash and liquid funds 323,959 (145,679) (66,046) 39,916 (10,301) 70,040 211,889 -34.6% of which, Loans issued 232,289 (4,639) (75,766) 151,884 -34.6% of which, Gross Debt (860,767) 3,429 (857,338) -0.4% Net other assets/ (liabilities) (3) of which, share based compensation 5,361 (31,142) 1,200 26,626 (7,481) (214) (5,650) NMF (7,481) 7,481 Net Asset Value (1)+(2)+(3) NAV change % 1,938,365 (212,214) -10.9% 112,856 5.8% (64,846) -3.3% (17,782) -0.9% (2,511) -0.1% 1,753,868 -9.5% -9.5% Shares outstanding Net Asset Value per share 35,961,403 53.90 NAV per share change % (5.90) -10.9% 3,435,438 (1.83) -3.4% (1,954,870) 1.23 (0.49) (0.07) 2.3% -0.9% -0.1% 37,441,971 46.84 -13.1% 4.1% -13.1% (1) Number of shares owned in BoG and GHG were 9,784,716 and 93,011,414 shares, respectively. GEORGIA CAPITAL Page 75#76Georgia Capital's board of directors Irakli Gilauri, Chairman & CEO Board of directors - Georgia Capital PLC Experience: formerly BGEO Group CEO; Up to 20 years of experience in the banking, investment and finance. BMS in banking from CASS Business School, London; BBS from University of Limerick, Ireland Caroline Brown, Independent Non-Executive Director Experience: Chief Financial Officer at Listen Media Campaign Company, Chief Innovation Officer and Founding Partner at Cambridge Advisory Partners David Morrison, Senior Independent Director GEORGIA CAPITAL Experience: formerly Director at Sullivan & Cromwell with a track record of over 28 years, Founding CEO of the Caucasus Nature Fund (CNF) Kim Bradley, Independent Non-executive Director Experience: Goldman Sachs AM, Senior Executive at GE Capital, President of Societa Gestione Crediti, Board Chairman at Archon Capital Deutschland Jyrki Talvitie, Independent Non-Executive Director Experience: 28 years of experience in the banking, including Sberbank, VTB, East Capital and Bank of New York in both buy and sell-side transactions Massimo Gesua'sive Salvadori, Independent Non- Executive Director Experience: currently an analyst at Odey asset management, formerly with McKinsey & Company for over 9 years 5 out of 6 members are independent Page 76#77Listed GHG Georgia Capital Georgia Capital's highly experienced management team Georgia Capital Management Irakli Gilauri, Chairman & CEO Formerly CEO of BGEO Group since 2011, joined as CFO of Bank of Georgia in 2004. Mr Gilauri was appointed Chairman of the Bank in September 2015, having previously served as CEO of the Bank since May 2006. Up to 20 years of experience in the banking, investment and finance. Prior, he was EBRD (European Bank for Reconstruction and Development) banker. Over the last decade, Irakli's leadership has been instrumental in creating major players in a number of Georgian industries, including banking, healthcare, utilities and energy, real estate, insurance and wine. Holds an MS in banking from CASS Business School. Avto Namicheishvili, Deputy CEO Formerly he was BGEO Group General Counsel. Joined as a General Counsel at the Bank of Georgia in 2007, and has since played a key role in all of the Group's equity and debt raises on the capital markets, and over 25 mergers and acquisitions. Prior, was a Partner at a leading Georgian law firm. Holds LL.M. in international business law from Central European University, Hungary. Ekaterina Shavgulidze, Chief Investment Officer Formerly served as Head of Funding and Investor Relations in BGEO Group. Joined BGEO as a CEO of healthcare services business in 2011. Most recently Eka played a key role in the GHG IPO as a Group Head of IR. Prior, she was an Associate Finance Director at AstraZeneca, UK. Holds an MBA from Wharton Business School. Giorgi Alpaidze, Chief Financial Officer Formerly BGEO Group CFO. Joined BGEO as Head of Group's Finance, Funding and Investor Relations in 2016. He has extensive international experience in banking, accounting and finance. Previously he was a senior manager in Ernst & Young LLP's Greater New York City's assurance practice. BBA from the European School of Management in Georgia. U.S. Certified Public Accountant. la Gabunia, Chief Exit Strategy Officer Formerly Investment Director at Georgia Capital. Joined BGEO as an Investment Director in 2017. la has over 10 years of experience in banking and investment management. Prior to joining BGEO la served as Head of Corporate Banking at Bank Republic, Societe Generale Group. Previously she held numerous executive positions in the leading Georgian companies, la holds a BSc degree from London School of Economics and Political Science, UK. Nikoloz Gamkrelidze, CEO, Georgia Healthcare Group 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. Listed Georgia Real Estate* GGU BOG Private Beer Wine Aldagi GEORGIA CAPITAL Archil Gachechiladze, CEO, Bank of Georgia Previously CEO at GGU, the Group's water utility and renewable businesses. Prior to that Archil was a Deputy CEO in charge of corporate banking in BoG. He launched the Bank's industry and macro research, brokerage, and advisory businesses. Previously, he was an Associate at Lehman Brothers Private Equity in London, and worked at Salford Equity Partners, EBRD, KPMG, Barents, and the World Bank. Holds MBA with distinction from Cornell University and is CFA charterholder. Avto Namicheishvili, Interim CEO, Georgia Global Utilities Staring from 28-Jan-19, Avto assumes the role of interim CEO of the Group's Water Utility and Renewable Energy businesses, in addition to his deputy CEO role at Georgia Capital. Formerly he was BGEO Group General Counsel. Joined as a General Counsel at the Bank of Georgia in 2007, and has since played a key role in all of the Group's equity and debt raises on the capital markets, and over 25 mergers and acquisitions. Prior, was a Partner at a leading Georgian law firm. Holds LL.M. in international business law from Central European University, Hungary. Irakli Burdiladze, Co-CEO, Georgia 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. Shota Berekashvili, Co-CEO, Georgia Real Estate* Joined JSC m² Real Estate in 2017. Before joining m² from 2009 to 2017 Shota was the founder and the CEO of "BK Capital" construction company. From 2003 to 2009 worked in Moscow as CFO of "BK Capital". From 1999 to 2003 worked in investment banking sector in NY and London. In 1999 Shota graduated from Columbia University NY with Bachelor's degree in Science and in 2002 Shota graduated from Cass Business School London with Master's Degree in Corporate Finance and Risk Management. 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. Temo Jankarashvili, CEO, Wine Business CEO of Wine business since November 2019, in addition to his CFO role at beer business. Formerly CFO at Rustavi Azot JSC. He has an extensive experience in finance. Previously, worked for BGEO Group for 11 years, served as a VIP Director at Bank of Georgia, successfully leading the commercial lending team, covering structured financing, M&As, LBOS and project financing. Holds BBA degree in Banking and Finance from Tbilisi State University. Tornike Nikolaishvili, CEO, Beer Business CEO of beer business since September 2018, having previously been Chief Marketing Officer at Bank of Georgia from March 2018. Previously he was a Commercial Director at EFES Georgia - Natakhtari Brewery. Before joining EFES, he was an Advertising Manager of Cartu-Universal. Overall, he has 15 years' experience in FMCG sector. Holds BBA degree of European School of Management. * m² was renamed as Georgia Real Estate in 2019 Page 77#78Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. 6. Georgian macro overview Appendices Georgia Capital results discussion & overview Georgia Capital financial statements ➤ Portfolio companies overview ➤ Portfolio companies financial statements GEORGIA CAPITAL Page 78#79Reconciliation of management accounts to IFRS Income statements reconciliation, FY19 GEORGIA CAPITAL GEL '000, unless otherwise noted GHG BOG Water Utility Housing P&C Development Insurance Renewable Energy Hospitality and Commercial RE Beverages Auto Service Digital Services Other Corporate Center Inter- Business Eliminations/ Consolidations Group Total Total investment return (203,109) 140,240 52,953 (23,630) 34,399 9,918 (15,017) 17,056 (659) 81,349 93,500 Net foreign currency loss/ non-recurring expenses (21,949) (21,948) Net Income (Investment Basis) (203,109) Difference between Shareholder return and IFRS profit of portfolio companies 226,430 140,240 52,953 (140,240) (17,483) (23,630) 6,834 34,399 9,918 (15,017) 17,056 (659) 59,400 71,551 (16,119) 2,796 5,932 (10,884) (23,625) 264 2,558 36,463 Profit attributable to non-controlling shareholders 38,229 833 (28) (4,782) (160) 125 787 35,004 Gain on change in Investment entity status Reversal of intragroup dividend income Reversal of Hotel revaluation gains for Group consolidation purposes Reversal of Fair valuation of Debt securities measured at FVOCI Reversal of gains on intragroup sale of assets Other Profit for the period (IFRS Consolidated) 588,830 588,830 (97,268) (97,268) (16,517) (16,517) (6,231) (6,231) (3,425) (3,425) (4,141) (4,141) 61,550 35,470 (16,796) 18,280 3,629 15,822 (30,683) (6,729) 389 2,686 648,230 (127,582) 604,266 Balance sheet reconciliation, 31 December 2019 GEL '000, unless otherwise noted GHG BOG Water Utility Housing P&C Development Insurance Energy Renewable Hospitality and Commercial RE Beverages Auto Service Digital Services Other Corporate Center Inter- Business Eliminations/ Consolidations Group Total Fair Value FS Other Transfer of Market value of 19.9% in BoG to Corporate Center Total equity attributable to shareholders of Georgia Capital (IFRS) 430,079 597,735 483,970 43,853 164,923 106,800 245,558 (597,735) 87,119 25,757 8,790 58,499 (499,215) 1,753,868 597,735 (1,847) (1,847) 430,079 483,970 43,853 164,923 106,800 245,558 87,119 25,757 8,790 58,499 98,520 (1,847) 1,752,021 Page 79#80Georgia Capital Consolidated IFRS Accounts Consolidated IFRS Income Statement Consolidated IFRS Statement of Cash Flow GEORGIA CAPITAL Consolidated IFRS Balance Sheet GEL '000, unless otherwise noted 2019 2018 change GEL '000, unless otherwise noted 2019 2018 Change GEL '000, unless otherwise noted 31-Dec-19 31-Dec-18 Cash and cash equivalents 1,243 256,930 Revenue Cost of sales Gross profit Operating expenses 1,473,437 1,282,995 (883,024) (789,884) 590,413 493,111 (317,927) (268,608) 14.8% EBITDA 272,486 224,503 11.8% 19.7% 18.4% 21.4% Net cash flow from operating activities Net cash flow from investing activities 256,291 (572,400) 163,502 56.8% (590,182) -3.0% Amounts due from credit institutions 40,299 Marketable securities 71,824 Accounts receivable 170,228 Of which, change in investment entity status Net cash flow from financing activities (248,735) 63,716 NMF Insurance premiums receivable 57,801 296,946 -78.5% Inventories 276,230 Investment properties 151,232 Prepayments 234 117,909 Share in profit of associates 357 Dividend income 24,953 247 23,875 44.5% Effect of exchange rates changes on cash and cash equivalents (3,295) Income tax assets 2,405 (8,416) NMF 4.5% Property and equipment 1,573,624 Depreciation and amortisation (110,075) (66,449) Net foreign currency (loss)/ gain (41,663) (37,546) 65.7% 11.0% Net (decrease) increase in cash and cash equivalents Goodwill 142,095 (255,687) (138,149) 85.1% Intangible assets 51,471 Other assets 251,462 Equity investments at fair value 1,758,197 457,495 Net realized gains from investment 1,654 NME securities measured at FVPL Net realized gains from investment 1,187 NMF Cash and cash equivalents, beginning of the year Cash and cash equivalents of disposal group held for sale beginning of the period 256,930 securities measured at FVOCI Cash and cash equivalents, end of the period 1,243 346,239 48,840 256,930 -25.8% Assets of disposal group held for sale Total assets 1,759,674 3,621,005 NMF Accounts payable 143,114 -99.5% Insurance contracts liabilities Interest income 30,672 Interest expense (150,370) 23,275 (96,895) 31.8% 55.2% Income tax liabilities 68,207 1,119 Deferred income Borrowings Net operating income before non- recurring items 29,201 Net non-recurring items (9,130) 71,010 -58.9% (41,251) -77.9% Debt securities issued Other liabilities Gain from change in investment entity status 588,828 NMF Profit before income tax expense 608,899 29,759 NMF Income tax expense (4,633) Profit for the period 604,266 (3,606) 28.5% 26,153 NMF 62,345 764,355 916,401 Total liabilities 7,653 7,653 235,771 2,191,312 Total equity attributable to 1,752,021 1,100,688 shareholders of Georgia Capital PLC Non-controlling interests 329,005 Total equity 1,752,021 1,429,693 Total liabilities and equity 1,759,663 3,621,005 Total profit/(loss) attributable to: -shareholders of Georgia Capital PLC 569,262 (254) NMF - non-controlling interests 35,004 26,407 32.6% - basic earnings per share 16.45 (0.01) NMF - Diluted earnings per share 16.09 (0.01) NMF Page 80#81Georgia Capital FY19 Performance (management accounts) GEORGIA CAPITAL Income Statement Cash flow, Georgia Capital stand-alone GEL '000, unless otherwise noted FY19 FY18 Change GEL thousands unless otherwise noted FY19 FY18 Change Dividend income 122,219 72,504 68.6% Dividends received 72,876 72,446 0.6% Interest income 39,044 35,282 10.7% Interest received 39,853 27,909 42.8% Realised/unrealised (loss)/ gain on liquid funds 9,547 (5,984) NMF Interest paid (51,923) (45,838) 13.3% Interest expense (55,071) (44,711) 23.2% Cash inflow from Operations before operating expenses 60,806 54,517 11.5% Gross operating income 115,739 57,091 NMF GCAP operating expenses (19,280) (10,513) 83.4% Operating expenses (34,391) (18,689) 84.0% Cash inflow from operations 41,526 44,004 -5.6% GCAP net operating income 81,348 38,402 NMF Capital allocations (188,842) (85,048) NMF Fair value changes of portfolio companies Listed portfolio companies (62,869) (661,655) -90.5% Loans (Issued)/Repaid 164,407 (275,102) NMF Of which, Georgia Healthcare Group PLC (203,109) (413,148) -50.8% of which, Loans to portfolio companies Of which, Bank of Georgia Group PLC 140,240 (248,507) NMF of which, Loans to third parties Private portfolio companies Late Stage Of which, Water Utility Of which, Housing Development Of which, P&C Insurance 75,021 (94,058) NMF Cash outflow on buybacks 52,370 (153,187) 112,037 (124,737) (87,414) NMF (121,915) NMF 42.7% 63,722 (86,944) NMF of which, management trust 52,953 (67,164) NMF of which, Staff ESOP (23,630) (8,824) NMF of which, Buyback programme (46,685) (2,588) (75,464) (42,628) 9.5% NMF (44,786) 68.5% 34,399 (10,956) NMF Early Stage (5,098) (6,682) -23.7% (Purchase)/Sale of PPE 32 (924) NMF Of which, Renewable energy Of which, Hospitality & Commercial Real Estate 9,918 4,700 40,515 NMF Fees paid (5,750) NMF -75.5% Of which, Beverages (15,016) (51,897) -71.1% Cash outflow/inflow from financing activities 467,434 NMF Pipeline businesses 16,397 (432) NMF Of which, Auto Service 17,056 (1,326) NMF Proceeds from debt securities issued Repayment of borrowings from former Parent company 715,729 NMF (248,295) NMF Of which, other (659) 894 NMF Total investment return 12,152 (755,713) NMF Demerger related outflows (587) (32,597) -98.2% FX Effect & Fair valuation 26,190 4,751 NMF Income before foreign exchange movements Net cash flow (87,761) 35,104 NMF 93,500 (717,311) NMF and non-recurring expenses Beginning cash and liquid funds 299,650 264,546 13.3% Net foreign currency loss (20,967) (25,371) -17.4% Ending cash and liquid funds 211,889 299,650 -29.3% Non-recurring expenses (982) (23,449) NMF Net Income 71,551 (766,131) NMF Page 81#82Content 1. Georgia Capital at a glance 2. 3. Georgia Capital strategy & capital allocations Results discussion | Georgia Capital 4. Portfolio overview 5. 6. Georgian macro overview Appendices Georgia Capital results discussion Georgia Capital financial statements ➤ Portfolio companies overview Portfolio companies financial statements GEORGIA CAPITAL Page 82#83P&C insurance business | segment results in 2019 Well-diversified business model Motor(²) Property(3) Credit life(4) Liability(5) GEL 105mln GEL 63mln GEL 33mln GEL 30mln 30% Key Segments Market size (3Q19) (1) Aldagi market share (1) # of Clients 25% Corporate 1,322 Retail -27,183 profit, net Underwriting Earned premiums, gross GEL 31.8 GEL 98.3 սլա սյա 37% Corporate-993 Retail 11,049 Retail -3 channels 36% Corporate-984 Retail - 794 GEORGIA CAPITAL Other (6) GEL 23mln 18% Corporate-973 Retail 16,143 2014-2019 CAGR 28% 40% 60% (1) Sources: Insurance State Supervision Service of Georgia. Market shares by earned premium gross. (2) Motor own damage, motor third party liability insurance. (3) Contractor's all risks insurance (CAR), Commercial property, Household Property, Machinery breakdowns insurance. (4) Loan-linked life insurance. (5) Financial risk, employer's liability, professional indemnity, General third party liability insurance (GTPL), Freight Forwarders' liability (FFL), Household GTPL, Product liability insurance. (6) Cargo, Contractor's Plant And Machinery insurance (CPM), Livestock, Bankers blanket bond insurance (BBB), Directors and officers liability Insurance (D&O), Agro insurance. 2014-2019 2014-2019 2014-2019 2014-2019 CAGR 14% CAGR 4% CAGR 29% 0% CAGR 14% 22% 20% 38% 100 62% 78% 80% % GEL 35.0mln GEL 24.6mln GEL 12.8mln GEL 11.2mln GEL 14.8mln 2014-2019 2014-2019 2014-2019 CAGR 14% CAGR 16% CAGR 32% 0% 2014-2019 CAGR 18% 2014-2019 CAGR 24% 38% 42% 34% 36% 62% 58% GEL 34.8mln 2014-2019 CAGR 13% GEL 12.0mln 2014-2019 CAGR 3% 35% 39% 65% 61% 100 % GEL 12.7mln GEL 7.2mln 66% 64% GEL 8.7mln GEL 11.1mln 2014-2019 2014-2019 2014-2019 CAGR 10% 0% CAGR 14% CAGR 33% 44% 40% 56% 60% 100 % GEL 4.0mln GEL 4.7mln 2014-2019 CAGR 16% GEL 5.4mln GEL 6.8mln 2014-2019 2014-2019 20% CAGR 6% CAGR 11% 0% 2014-2019 CAGR 20% 2014-2019 CAGR 49% 39% 45% 50% 50% 55% 61% 100 % GEL 2.7mln GEL 3.2mln 80% GEL 3.8mln GEL 3.3mln Loss ratio: 42% Combined ratio: 82% Corporate-60% Retail -48% Corporate-96% Corporate-35% Retail - 62% Retail - 16% Corporate - 81% Retail - 84% Retail - 89% Retail - 78% Corporate-20% Retail - 15% Corporate -75% Retail - 51% GEL 5.3mln Corporate-13% Retail - 0% Corporate - 60% Retail - 52% Corporate Retail Page 83#84Hospitality and commercial RE business | commercial portfolio & hotel portfolio highlights Commercial portfolio breakdown | 31-Dec-19 ■Retail 14% 6% ■ Office 40% 40% Hotel Rooms by stage ■Industrial ■Residential US$ millions Commercial portfolio growth 77.3% 45 56.8% 10 25 16 8 35 6 17 10 31-Dec-17 31-Dec-18 31-Dec-19 Property Cost ■Revaluation Progressing against the 1,222 hotel room portfolio Operational - 22%, Under construction - 38%, Design stage - 40% Construction stage Ramada Melikishvili, Tbilisi Kempinski, Tbilisi Construction stage Seti Square Mestia Ramada Kutaisi Construction Stage Kakheti Wine &Spa Design Stage Shovi, Racha Telavi Design Stage Mestia, Svaneti Zugdidi 270 Operational Stage Ramada Encore Kazbegi Gudauri Lodge 176 224 279 1,222 273 2019 2020 2021 2022 2023 2023 Hotel rooms by type Luxury Hotel, 8% Budget Hotel, 13% Business Hotel, 20% Resort Hotel, 59% 65 68 72 US$ millions GEORGIA CAPITAL Commercial portfolio growth 45 6 25 16 4 39 21 15 31-Dec-17 31-Dec-18 31-Dec-19 Leased Vacant Key performance metrics of hotels | Tbilisi 68 64 144 136132130 119 94 92 95 88 76 51 51 45 33 36 Occupancy Rate (%) ADR(US$) Source: STR 2015 RevPar(US$) 2016 2017 2018 2019 Revenue(US$mln) Page 84#85Housing development business | Overview of completed and on-going projects as of 31 December 2019 GEORGIA CAPITAL Total Sq.m. (Net # Project name Sellable Area) Number of apartments Sq.m. of Number of apartments apartments sold sold Number of apartments sold as % of total Number of Sq.m. Number of Sq.m. of apartments apartments apartments apartments available available for transferred transferred for sale sale to IP to IP Start date (construction) Actual / Planned Completion date (construction) Deferred Recognised Construction Total Sales progress (US$ mln) as revenue Deferred revenue revenue Land value expected to be unlocked (US$ min) (US$ mln) recognised as revenue in 2020 (US$ mln) Realised & Expected IRR Completed projects 218,349 2,855 218,196 2,854 100.0% 1 153 20 3,183 250.5 250.4 0.1 0.1 32.9 1 Chubinashvili Street 9,366 123 9,366 123 100.0% Sep-10 Aug-12 100% 9.9 9.9 0.9 47% 2 Tamarashvili Street 40,717 525 40,717 525 100.0% May-12 Jun-14 100% 48.9 48.9 5.4 46% 3 Kazbegi Street 21,937 295 21,937 295 100.0% Dec-13 Feb-16 100% 27.2 27.2 3.6 165% 4 Nutsubidze Street 15,757 221 15,757 221 100.0% Dec-13 Sep-15 100% 17.4 17.4 2.2 58% 5 Tamarashvili Street II 21,023 266 21,023 266 100.0% 4 476 Jul-14 Jun-16 100% 24.3 24.3 2.7 71% 6 Moscow avenue 15,053 238 15,053 238 100.0% Sep-14 Jun-16 100% 12.3 12.3 1.6 31% 7 Skyline 2,614 12 2,614 12 100.0% 7 1,375 Dec-15 Dec-17 100% 5.4 5.4 3.1 329% 8 Kartozia Street 58,443 801 58,443 801 100.0% Nov-15 Nov-18 100% 61.1 61.0 10 0.1 0.1 ཚ 5.8 37% 9 50 Chavchavadze ave. 6,550 77 6,550 77 100.0% 5 741 Oct-16 Nov-18 100% 10.9 10.9 3.3 27% 10 Kazbegi Street II 26,889 297 26,736 296 99.7% 1 153 4 591 Jun-16 Jun-19 100% 33.0 33.0 4.3 43% On-going projects 71,783 1,067 22,901 371 34.8% 696 48,882 25.8 9.1 16.7 9.1 9.0 11 10 Melikishvili ave. 2,527 16 2,527 16 100.0% Sep-17 Apr-20 92% 4.4 3.2 1.2 1.2 0.8 101% 12 m3 Saburtalo, Stage I 22,089 391 16,980 301 77.0% 90 5,109 Jul-19 Sep-21 12% 18.0 59 5.9 12.1 6.7 2.5 112% 13 m3 Saburtalo, Stage II 47,167 660 3,394 54 8.2% 606 43,773 Jan-20 May-22 0% 3.4 3.4 1.2 5.7 132% Total 290,132 3,922 241,097 3,225 82.2% 697 49,035 20 20 3,183 276.3 259.5 16.8 9.2 41.9 Page 85#86Content 1. Georgia Capital at a glance 2. Georgia Capital strategy & capital allocations 3. Results discussion | Georgia Capital 4. Portfolio overview 5. 6. Georgian macro overview Appendices Georgia Capital results discussion & overview Georgia Capital financial statements ➤ Portfolio companies overview ➤ Portfolio companies financial statements GEORGIA CAPITAL Page 86#87FY19 FY18 Change 93,556 92,229 39,728 39,585 0.4% 20,216 9,052 3,562 2,741 Water utility business financial highlights Income statement GEL thousands, unless otherwise noted Revenue from water supply to legal entities Revenue from water supply to individuals Revenue from electric power sales Revenue from technical support Other income Revenue Salaries and benefits Electricity and transmission costs Other operating expenses Operating expenses Provisions for doubtful trade receivables EBITDA EBITDA Margin Depreciation and amortization. EBIT EBIT Margin Net interest expense Net non-recurring income/ (expenses) Foreign exchange (loss) gain EBT Profit 6,392 5,520 163,454 149,127 (20,249) (18,616) (16,810) (18,695) -10.1% (23,995) (23,407) 2.5% (61,054) (60,718) 0.6% (7,325) (5,033) 45.5% 95,075 83,376 14.0% 58.2% 55.9% 2.3ppts (31,188) (23,681) 31.7% 63,887 59,695 7.0% 39.1% 40.0% -0.9ppts (24,184) (14,086) 71.7% 1,104 (6,121) NMF (7,586) (4,970) 52.6% 33,221 34,518 -3.8% 33,221 34,518 -3.8% Interest paid Dividend paid Contributions under share-based payment plan Total cash flow from financing activities Effect of exchange rates changes on cash Total cash (outflow)/inflow Cash, beginning balance Cash, ending balance GEORGIA CAPITAL Statement of cash flow Balance sheet GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change 1.4% Cash received from customers 159,598 Cash paid to suppliers NMF Cash paid to employees 30.0% Interest received 15.8% Taxes paid (6,514) 9.6% Cash flow from operating activities before 98,973 maintenance capex 8.8% Maintenance capex (22,580) 144,468 10.5% (37,452) (38,906) -3.7% (18,694) (17,627) 6.1% 2,035 480 NMF (6,829) -4.6% 21.3% 81,586 (22,541) 0.2% Inventories Trade and other receivables Prepayments 3,703 1,647 3,799 3,913 -2.9% 22,357 19,657 13.7% NMF Other current assets Cash and cash equivalents Total current assets Property, plant and equipment Investment Property 57 1,901 -97.0% 26,581 13,713 93.8% 56,497 40,831 38.4% 522,702 461,385 13.3% Operating cash flow 76,393 59,045 29.4% Purchase of PPE and intangible assets (76,234) Proceeds from PPE and investment property sale CAPEX VAT 7,454 (148,453) -48.6% 2,028 8,324 14,801 NMF -43.8% Restricted cash in Bank 897 6,533 Total cash used in investing activities Proceeds from borrowings (59,559) 137,252 Repayment of borrowings (88,593) (25,472) (22,000) (4,501) (3,314) (652) 12,868 13,713 26,581 -86.3% (125,091) -52.4% 71,628 91.6% (738) NMF (20,440) 24.6% (28,840) -23.7% (2,307) 95.1% 19,303 NMF (1,507) -56.7% (48,250) NMF 61,963 -77.9% 13,713 93.8% Other non-current liabilities Total non-current liabilities Total liabilities Total equity Intangible assets Other non-current assets Total non-current assets Total assets Current borrowings Trade and other payables Other current liabilities Total current liabilities Long term borrowings Deferred income Total liabilities and equity 534,539 473,587 591,036 514,418 14.9% 25,954 20,170 28.7% 20,868 24,287 -14.1% 3,463 1,356 NMF 50,285 45,813 9.8% 353,021 300,076 17.6% 29,333 22,869 102 382,456 322,968 18.4% 432,741 368,781 17.3% 158,295 145,637 8.7% 591,036 514,418 14.9% 8,641 1,954 1,271 9,865 -12.4% 53.7% 1,242 1,066 16.5% 12.9% 22 28.3% NMF Page 87#88Housing development business financial highlights Income statement GEORGIA CAPITAL Statement of cash flow Balance sheet GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted Dec-19 Dec-18 Change Gross profit from apartments sale 7,611 15,882 Gross profit from construction 7,601 5,334 -52.1% 42.5% Proceeds from sales of apartments 51,566 80,692 Outflows for development (33,645) (76,566) management Net proceeds from construction services 6,751 (207) Other income 582 157 Gross Real Estate Profit 15,794 Revaluation of commercial property¹ Operating expenses (19,260) EBITDA (3,466) Net operating income before non- recurring items (13,401) 21,373 5,524 (10,903) 15,994 8,391 NMF -26.1% Cash paid for operating expenses (20,162) (14,073) -36.1% -56.1% NMF 43.3% Cash and cash equivalents 13,695 8,833 55.0% Amounts due from credit institutions Investment securities Income tax paid (13,458) NMF Accounts receivable and other loans Prepayments 1,907 909 15,773 6,063 1,634 16.7% 512 77.5% NMF NMF 76.6% Net cash flows from operating activities (8,948) (10,154) 11.9% Inventories Capital expenditure on investment property and PPE (1,123) (13,666) -91.8% Investment property NMF Loans issued (493) (25) NMF Land bank NMF Acquisition of subsidiaries (10,823) NMF Net non-recurring items Profit (3,019) (16,796) (6,224) -51.5% Net cash flows used in investing activities (12,439) (13,691) -9.1% Commercial real estate Property and equipment 2,167 NMF Net Intersegment loans received/(issued) (3,867) 37,760 NMF Other assets Proceeds from debt securities issued 105,660 NMF Total assets Repayment of debt securities issued (74,143) NMF Contributions under share-based payment plan (997) (1,280) -22.1% Amounts due to credit institutions Debt securities issued Proceeds from borrowings 32,065 41,615 -22.9% Deferred income Repayment of borrowings (5,935) (42,465) -86.0% Other liabilities Interest paid (13,850) (9,035) 53.3% Total liabilities Cash paid for lease liabilities (1,736) NMF Total equity Dividend paid (10,000) (10,000) NMF Total liabilities and equity 45,539 33,976 34.0% 97,075 102,923 -5.7% 1,640 52,603 -96.9% 1,552 8,722 -82.2% 88 43,881 -99.8% 20,669 8,232 NMF 26,528 33,833 -21.6% 223,735 248,609 -10.0% 75,368 46,069 63.6% 101,065 67,697 49.3% 27,792 23,295 19.3% 24,167 46,175 -47.7% 228,392 183,236 24.6% (4,657) 65,373 NMF 223,735 248,609 -10.0% Net cash flows from financing activities 27,197 16,595 63.9% Exchange (losses)/gains on cash equivalents (675) (2,342) -71.2% Total cash inflow/(outflow)² 5,135 (9,592) NMF Cash, beginning balance 10,467 20,059 -47.8% Cash, ending balance 15,602 10,467 49.1% (1) Value created on commercial property. (2) Net cash flow includes amounts due from credit institutions. Page 88#89P&C insurance business financial highlights Income statement Statement of cash flow GEL thousands, unless otherwise noted Gross premiums written FY19 FY18 Change GEL thousands, unless otherwise noted FY19 GEORGIA CAPITAL Balance sheet FY18 Change GEL thousands, unless otherwise noted Dec-19 Dec-18 change Earned premiums, gross Earned premiums, net Insurance claims expenses, gross 101,875 90,598 98,350 90,404 75,339 67,488 (88,632) (28,517) 12.4% 8.8% 11.6% NMF Insurance premium received Reinsurance premium paid Insurance benefits and claims paid Reinsurance claims received Insurance claims expenses, net (31,310) (25,748) 21.6% Acquisition costs paid Acquisition costs, net (12,212) (9,520) 28.3% Salaries and benefits paid Net underwriting profit 31,817 32,220 -1.3% Interest received Investment income 7,640 3,539 NMF Net other operating exepnses paid Net fee and commission income 129 Net investment profit 7,769 449 3,988 -71.3% Income tax paid 94.8% Net cash flows from operating activities Salaries and employee benefits (11,385) (9,867) 15.4% Selling, general and administrative expenses (5,239) (4,044) 29.5% Depreciation & Amortisation. (2,174) (1,023) NMF Purchase of property and equipment Purchase of intangible assets Loan Issued Impairment charges Net other operating income (478) 932 (1,536) -68.9% Operating profit 21,242 848 20,586 9.9% 3.2% Proceeds from repayment of loan issued Proceeds from (Placement of) bank deposits Purchase of available-for-sale assets/ Deposits 1,099 86,969 81,142 7.2% (12,801) (15,075) -15.1% (35,597) (32,181) 10.6% 6,072 8,318 -27.0% (8,865) (7,224) 22.7% (11,195) (11,494) -2.6% 2,723 3,018 -9.8% (4,233) (2,830) 49.6% (3,552) (2,734) 29.9% 19,521 20,940 -6.8% (357) (1,023) -65.1% Total assets (1,615) (1,444) 11.8% Gross technical provisions (25,946) (22,143) 17.2% Other insurance liabilities 21,206 18,150 16.8% Current income tax liabilities (7,106) 2,664 NMF Pension benefit obligations (111) NMF Cash and cash equivalents Amounts due from credit institutions Investment securities Insurance premiums receivable, net Ceded share of technical provisions PPE and intangible assets, net Goodwill 3,421 11,103 -69.2% 32,574 23,456 38.9% 7,109 4,408 61.3% 36,730 31,442 16.8% 64,706 16,928 NMF 14,448 9,594 50.6% 13,062 13,062 NMF Deferred acquisition costs Pension fund assets Other assets Other Liabilities Foreign exchange (loss) / gain (39) 138 Interest expense (208) NMF NMF Net cash flows from used in investing activities Dividend Paid (12,719) (3,907) (12,034) (10,000) NMF Total liabilities 20.3% Total equity Non-recurring expenses (652) NMF Purchase of treasury shares (927) Pre-tax profit 20,995 Income tax expense Net profit 20,072 (2,670) (2,990) 18,325 17,082 4.6% Cash paid for lease liabilities (1,469) NMF Total liabilities and equity NMF 3,812 3,324 4,868 18,931 -74.3% 19,544 13,462 45.2% 200,274 145,710 37.4% 100,886 45,664 NMF 15,714 16,101 -2.4% 376 588 -36.1% 4,868 18,932 -74.3% 15,819 8,287 90.9% 137,663 89,572 53.7% 62,611 56,138 11.5% 200,274 145,710 37.4% 14.7% -10.7% Net cash flows from financing activities (14,430) (10,000) 44.3% 7.3% Effect of exchange rates changes on cash and cash equivalents (54) (115) -53.0% Total cash inflow/(outflow) (7,682) 6,918 NMF Cash and cash equivalents, beginning 11,103 4,185 NMF Cash and cash equivalents, ending 3,421 11,103 -69.2% Page 89#90Renewable energy business financial highlights Income statement Statement of cash flow GEORGIA CAPITAL Balance sheet GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted Dec-19 Dec-18 Change Revenue from electricity sales 6,124 NMF Other revenue 10,047 Cash receipt from customers NMF Cash paid to suppliers 6,478 NMF Total current assets 89,065 11,895 NMF Total Revenue 16,171 NMF Cash paid to employees Salaries and benefits (582) (302) 91.9% Interest received (645) 244 (2,384) (630) NMF (209) 143 Property, plant and equipment 340,035 114,645 NMF NMF 70.6% Other non-current assets 12,384 42,764 -71.0% Electricity and transmission costs (108) NMF Taxes paid (909) NMF Total non-current assets Total assets 352,419 157,409 NMF Other operating expenses (2,391) (467) NMF Cash flow from operating activities Total Operating Expenses (3,081) (769) NMF Purchase of PPE and intangible assets EBITDA 13,090 (769) NMF VAT return EBIT 9,726 (1,121) NMF Loans issued Net interest expense (7,594) 129 NMF Acquisition of subsidiaries 2,784 (696) (32,908) (68,258) 3,521 5,963 (124) (88,015) NMF -51.8% -41.0% NMF NMF Total current liabilities Long term borrowings Other non-current liabilities Total non-current liabilities Total liabilities 441,484 169,304 31,562 NMF 6,658 NMF 258,250 66,458 NMF 2,175 2,029 7.2% 260,425 68,487 NMF 291,987 75,145 NMF Non-recurring expenses (807) 577 NMF Total cash flow used in investing activities (117,526) (62,295) 88.7% Total equity attributable to shareholders of the Group 113,000 61,203 84.6% Foreign exchange (losses) gains 2,305 (401) NMF Proceeds from borrowings 171,767 55,495 NMF Non-controlling interest Profit before income tax 3,630 (816) NMF Repayment of borrowings (74,382) NMF Total equity 36,497 32,956 149,497 94,159 10.7% 58.8% Net Profit 3,630 (816) NMF Interest paid (3,646) NMF Total liabilities and equity 441,484 169,304 NMF Attributable to: Capital increase 46,466 7,733 NMF - shareholders of the Group 2,815 (530) NMF Total cash flow used in financing activities 140,205 63,228 NMF - non-controlling interests 815 (286) NMF Exchange (losses)/gains on cash equivalents Total cash inflow/(outflow) 1,403 26,866 (147) NMF 90 NMF Cash, beginning balance 8,388 8,298 1.1% Cash, ending balance 35,254 8,388 NMF Page 90#91Hospitality & Commercial RE business financial highlights Income statement Statement of cash flow Balance sheet GEL thousands, unless otherwise noted Cash and cash equivalents Prepayments Investment property Land bank Commercial real estate Property and equipment Goodwill GEORGIA CAPITAL Dec-19 Dec-18 Change 19,245 28,615 -32.7% 24,031 15,713 52.9% 401,216 225,343 78.0% 69,693 37,459 86.1% 331,523 187,884 5,919 1,787 76.5% 172 NMF NMF GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change Revenue from operating lease 8,903 5,467 62.9% Gross profit from operating leases 6,458 4,588 40.8% Net proceeds from rent generating assets Net proceeds from hospitality services 6,087 5,414 12.4% 1,876 2,295 -18.3% Revenue from hospitality services 7,009 5,151 36.1% Other operating expenses paid (4,707) (2,039) NMF Gross profit from hospitality services 1,827 Other income 1,945 228 -6.1% NMF Net cash flows from operating activities Acquisition of investment property 3,256 5,670 -42.6% (29,197) (53,475) -45.4% Gross Real Estate Profit 8,285 6,761 Revaluation on commercial property¹ 21,676 27,621 Operating expenses (5,216) (3,520) 22.5% -21.5% 48.2% Capital expenditure on investment property VAT return Loans issued (62,200) 5,862 443 (27,525) 8,574 (7,018) NMF -31.6% Other assets NMF Total assets EBITDA 24,745 30,862 -19.8% Acquisition of subsidiaries (15,169) NMF Borrowings Net operating income before non- 15,823 27,056 -41.5% Net cash flows used in investing activities (100,261) recurring items Proceeds from preferred stock issued 36,434 (79,444) 32,914 26.2% Debt securities issued 10.7% Other liabilities Net non-recurring items (1,339) Profit before income tax 15,823 25,717 NMF -38.5% Proceeds from debt securities issued 59,964 19,609 NMF Total liabilities Contributions under share-based payment plan (162) (82) Profit 15,823 25,717 -38.5% Proceeds from borrowings 105,289 95,797 97.6% 9.9% Total equity attributable to shareholders of the Group Non-controlling interest Repayment of borrowings (102,010) (19,400) NMF Total equity Net intragroup loans (repaid) / received 3,867 (37,760) NMF Total liabilities and equity Interest paid (15,592) (3,343) NMF Net cash flows from financing activities 87,790 87,735 0.1% Effect of exchange rate changes on cash and cash (156) (151) 3.3% equivalents Total cash inflow/(outflow)² (9,371) 13,810 NMF Cash, beginning balance 28,616 14,806 93.3% (1) Value created on commercial property. (2) Net cash flow includes amounts due from credit institutions. Cash, ending balance 19,245 28,616 -32.7% 10,086 24,990 -59.6% 462,284 294,833 56.8% 110,889 104,557 6.1% 85,519 19,609 NMF 17,379 10,828 60.5% 213,787 134,994 58.4% 247,817 149,078 66.2% 680 10,761 -93.7% 248,497 159,839 55.5% 462,284 294,833 56.8% Page 91#92Beverages business financial highlights Income statement Balance sheet (Wine business) GEORGIA CAPITAL Balance sheet (Beer business) GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted Dec-19 Dec-18 change GEL thousands, unless otherwise noted Dec-19 Dec-18 change Wine Business 45,115 31,104 45.0% Cash and cash equivalents 5,230 Beer Business 55,901 29,288 90.9% Amounts due from financial institutions 994 Distribution Business 23,689 15,822 49.7% Accounts Receivable 14,269 Revenue 124,705 76,214 63.6% Prepayments & Other Assets 2,748 Wine Business Beer Business Distribution Business COGS (23,553) (15,199) (38,271) (19,190) (18,525) (12,571) 55.0% Inventory 28,174 8,380 -37.6% 930 6.9% 12,409 15.0% 985 18,979 Cash and cash equivalents 2,543 1,244 NMF Amounts due from financial institutions 8 NMF Accounts Receivable 7,912 2,161 NMF 99.4% Intangible Assets, Net 270 47.4% Goodwill 10,803 333 3,136 NMF 48.4% -18.9% Prepayments & Other Assets 4,489 4,998 -10.2% Inventory 12,113 6,618 83.0% Intangible Assets, Net 8,722 631 NMF NMF Goodwill 2,226 2,226 NMF (80,349) (46,960) 71.1% Property and Equipment, Net 57,138 32,233 77.3% Property and Equipment, Net 70,249 98,267 -28.5% Gross Profit 44,356 29,254 51.6% Total Assets 119,626 Gross Profit Margin 35.6% 38.4% -2.8ppts Accounts Payable 4,342 77,385 5,894 -26.3% 54.6% Total Assets 108,254 116,153 -6.8% Accounts Payable 10,491 9,530 10.1% Salaries and other employee benefits (21,598) (14,195) 52.2% Borrowings 49,373 49,857 -1.0% Borrowings 88,973 68,096 30.7% Sales and marketing expenses (4,178) (6,426) -35.0% Other Current Liabilities General and administrative expenses (8,268) (7,913) 4.5% Total Liabilities Distribution expenses (6,749) (4,883) 38.2% Total equity Other operating expenses (1,141) (2,278) EBITDA 2,422 (6,441) wine EBITDA 8,731 7,151 -49.9% NMF 22.1% Total liabilities and equity 4,188 3,658 57,903 59,409 61,723 17,976 119,626 77,385 54.6% 14.5% Other Current Liabilities 2,933 2,310 27.0% -2.5% Total Liabilities 102,397 79,936 28.1% NMF Total equity 5,857 36,217 -83.8% Total liabilities and equity 108,254 116,153 -6.8% beer EBITDA (6,450) (13,754) -53.1% distribution EBITDA 335 625 -46.4% Net foreign currency gain (loss) (3,418) (1,879) 81.9% Depreciation and amortization (16,327) (11,882) 37.4% Net interest income/expense (12,856) (7,085) 81.5% Net non-recurring items (25,717) (1,886) NMF (Loss) profit before income tax (Loss) Profit (55,896) (29,173) 91.6% (55,896) (29,173) 91.6% Page 92#93Beverages business financial highlights (cont'd) GEORGIA CAPITAL Statement of cash flow (Wine business) Statement of cash flow (Beer business) GEL thousands, unless otherwise noted FY19 FY18 Change GEL thousands, unless otherwise noted FY19 FY18 Change Cash received from customers Cash paid to suppliers 46,073 32,515 41.7% Proceeds from sales 60,003 44,710 34.2% (21,051) (18,161) 15.9% Cash outflows for inventory (29,319) (18,941) 54.8% Cash paid to employees (6,522) (3,769) 73.0% Transportation Cost (3,229) (1,772) 82.2% Cash paid for operating expenses (11,433) (7,495) 52.5% Sales and Marketing Expenses (7,086) (7,371) -3.9% Interest received 127 NMF Operating Expenses (34,358) (30,472) 12.8% Taxes paid (4,312) (3,119) 38.2% Net cash flows from operating activities (13,989) (13,846) 1.0% Net cash flows from operating activities 2,755 98 NMF Cash outflows for purchase of Property, plant and equipment (18,614) (10,043) 85.3% Acquisition of Subsidiaries (32,918) (21,674) 51.9% Net cash flows used in investing activities (18,614) (10,043) 85.3% Purchase of Property, Plant and Equipment (6,278) (641) NMF Proceeds from borrowings 95,019 9,200 NMF Loans Issued (467) NMF Repayment of borrowings (68,658) (1,216) NMF Cash inflow from restricted cash account 4,432 NMF Interest paid (6,733) (2,082) NMF Net cash flows from used in investing activities (39,196) (18,350) NMF Issue of share capital 15,143 6,924 NMF Proceeds from borrowings 52,845 40,089 31.8% Cash paid for lease liabilities (486) NMF Repayments of borrowings (36,320) (15,803) NMF Net cash flows from financing activities 34,285 12,826 NMF Interest paid (2,735) (1,470) 86.1% Capital increase 19,643 432 NMF Effect of exchange rate changes on cash and cash equivalents Total cash inflow/(outflow) (383) (695) -44.9% 1,299 (11,758) NMF Cash paid for lease liabilities (356) NMF Cash and cash equivalents at beginning of period 1,244 13,002 -90.4% Net cash flows from financing activities 33,077 23,248 Effect of exchange rates changes on cash and cash equivalents 214 (101) 42.3% NMF Cash and cash equivalents at end of period 2,543 1,244 NMF Total cash inflow/(outflow) (3,150) 4,895 NMF Cash and cash equivalents, beginning 8,380 3,485 NMF Cash and cash equivalents, ending 5,230 8,380 -37.6% Page 93#94Periodic technical inspection business financial highlights Statement of cash flow GEORGIA CAPITAL Income statement Balance sheet GEL thousands, unless otherwise noted 2H19 1H19 Change FY19 GEL thousands, unless otherwise noted 2H19 1H19 Change FY19 GEL thousands, unless otherwise noted Dec-19 Revenue 7,613 5,304 Costs of services Gross profit (2,111) (2,281) 43.5% -7.5% 12,917 Operating revenue received 7,785 5,237 48.7% 13,022 Cash and cash equivalents 95 (4,392) Salaries and benefits paid (3,011) (2,600) 15.8% (5,611) Accounts receivable 446 5,502 3,023 82.0% 8,525 Operating expenses paid (1,867) (2,620) -28.7% (4,487) Premises and equipment, net 42,480 Salaries and other employee benefits (1,513) (955) 58.4% (2,468) Net cash flows from operating activities 2,907 17 Selling, general administrative expenses (1,289) (1,427) -9.7% (2,716) Purchase of property and equipment (1,347) Net other operating income/ (expenses) (51) (28) 82.1% (79) Purchase of intangible assets (23) Total operating expenses (2,853) (2,410) EBITDA 2,649 613 Depreciation expense (882) (644) 18.4% NMF 37.0% (5,263) Loan Issued (12,509) (1,219) 22 3,262 (1,526) Net cash flows from investing activities Proceeds from borrowings Amortization expense (466) (356) 30.9% (822) Repayment of borrowings (1,370) 6,045 (4,855) NMF -89.2% -98.1% NMF (13,706) -90.0% 39,238 -84.6% (28,366) -82.9% 2,924 Intangible assets, net 8,202 (13,856) (1,242) Prepayments 1,101 Other Assets 1,525 22 Total assets 53,849 (15,076) 45,283 Borrowings 50,895 Finance lease liability 2,280 (33,221) Accounts payable 34 Interest expense (2,649) (2,409) 10.0% (5,058) Interest paid (2,339) (2,131) 9.8% (4,470) Other Liabilities 2,006 Foreign exchange gain/(loss) (487) (210) NMF (697) Issue of ordinary shares 5,000 NMF 5,000 Total liabilities 55,215 Non-recurring income / (costs) (315) NMF (315) Repayment of lease liabilities (47) (38) 23.7% (85) Share capital ordinary shares 4,999 Net profit (1,835) (3,321) -44.7% (5,156) Interest paid on lease liabilities (59) (54) 9.3% (113) Retained earnings (1,326) Net cash flows from financing activities Effect of exchange rates changes on cash and cash equivalents (1,255) 13,649 NMF 12,394 Net profit (5,156) (361) (15) NMF (376) Total equity (1,483) Non-controlling interest 117 Net increase in cash and cash equivalents (79) (55) 43.6% Cash and cash equivalents, beginning 174 229 Cash and cash equivalents, ending 95 174 -24.0% -45.4% (134) 229 95 Total liabilities and equity 53,849 Page 94#95GEORGIA CAPITAL Glossary • • • Combined ratio equals sum of the loss ratio and the expense ratio. EBITDA - earnings before interest, taxes, non-recurring items, FX gain/losses and depreciation and amortization; The Group has presented these figures in this document because management uses EBITDA as a tool to measure the Group's operational performance and the profitability of its operations. The Group considers EBITDA to be an important indicator of its representative recurring operations. - EV enterprise value. Expense ratio in P&C Insurance equals sum of acquisition costs and operating expenses divided by net earned premiums. GCAP refers to the aggregation of stand-alone Georgia Capital PLC and stand-alone JSC Georgia Capital accounts. Georgia Capital and "the Group" refer to Georgia Capital PLC and its portfolio companies as a whole. IRR - for portfolio companies is calculated based on a) historical contributions to the portfolio company less b) dividends received and c) market / fair value of the portfolio company at 30 September 2019. Liquid assets & loans issued include cash, marketable debt securities and issued short-term loans. Loss ratio equals net insurance claims expense divided by net earned premiums. LTM-last twelve months. MOIC - Multiple of Capital Invested is calculated as follows: i) the numerator is the cash and non-cash inflows from dividends and sell-downs plus fair value of investment at reporting date ii) the denominator is the gross investment amount. NAV - Net Asset Value, represents the net value of an entity and is calculated as the total value of the entity's assets minus the total value of its liabilities. Net investment - gross investments less capital returns (dividends and sell-downs). NMF - not meaningful. NOI - net operating income. NTM - next twelve months. Realised MOIC - realised Multiple of Capital Invested is calculated as follows: i) the numerator is the cash and non-cash inflows from dividends and sell-downs ii) the denominator is the gross investment amount. RevPAR - revenue per available room. ROAE - return on average total equity (ROAE) equals profit for the period attributable to shareholders divided by monthly average equity attributable to shareholders of the business for the same period for BoG and P&C Insurance. ROIC - return on invested capital is calculated as EBITDA less depreciation, divided by aggregate amount of total equity and borrowed funds. Investments - equity capital contribution WPP - Wind power plant HPP Hydro power plant PPA - Power purchase agreement Page 95#96Company information Georgia Capital PLC Registered Address 84 Brook Street London W1K 5EH United Kingdom www.georgiacapital.ge Registered under number 10852406 in England and Wales Stock Listing London Stock Exchange PLC's Main Market for listed securities Ticker: "CGEO.LN" Contact Information Georgia Capital PLC Investor Relations Telephone: +44 (0) 203 178 4052; +995 322 000000 E-mail: [email protected] Auditors Ernst & Young LLP 1 More London Place London, SE1 2AF United Kingdom Registrar Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS13 8AE United Kingdom Please note that Investor Centre is a free, secure online service run by our Registrar, Computershare, giving you convenient access to information on your shareholdings. Investor Centre Web Address - www.investorcentre.co.uk. Investor Centre Shareholder Helpline +44 (0) 370 702 0176 Share price information Shareholders can access both the latest and historical prices via the website www.georgiacapital.ge GEORGIA CAPITAL Page 96#97GEORGIA CAPITAL