#1BANK OF GEORGIA GROUP PLC INVESTOR PRESENTATION 1Q20 Financial Results 14 May 2020 www.bankofgeorgiagroup.com#2DISCLAIMER - FORWARD LOOKING STATEMENTS 2 This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Bank of Georgia Group PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. By their nature, these forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, certain of which are beyond our control, include, among other things: macroeconomic risk, including currency fluctuations and depreciation of the Georgian Lari; impact of COVID-19; regional instability; loan portfolio quality; regulatory risk; liquidity risk; operational risk, cyber security, information systems and financial crime risk; and other key factors that indicated could adversely affect our business and financial performance, which are contained elsewhere in this document and in our past and future filings and reports of the Group, including the 'Principal risks and uncertainties' included in Bank of Georgia Group PLC's Annual Report and Accounts 2019. No part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in Bank of Georgia Group PLC or any other entity within the Group, and must not be relied upon in any way in connection with any investment decision. Bank of Georgia Group PLC and other entities within the Group undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Nothing in this presentation should be construed as a profit forecast.#3CONTENTS RESPONSE TO COVID-19 OUTBREAK GROUP OVERVIEW 1920 RESULTS DISCUSSION GEORGIAN MACRO OVERVIEW APPENDICES 3#4GEORGIA HAS TAKEN DECISIVE STEPS TO CONTAIN THE COVID-19 PANDEMIC AND LIMIT ITS ECONOMIC IMPACT 2/26/2020 GOVERNMENT SAFETY MEASURES All international flights banned since 18 March 2020 Full lockdown introduced on 21 March 2020 and state of emergency declared in the country, which is now in place until 22 May 2020 14-day mandatory quarantine period imposed on citizens returning to Georgia Educational process suspended; educational institutions now on distance learning. Georgia is considered one of the best examples of distance learning according to the OECD report All public transportation closed; except for vehicles and taxis operating with regulatory approval All economic activities, other than grocery stores, pharmacies, food and pharmacy delivery services, gas stations, banks, post offices, restricted entirely The Government maintains an informational website that provides live statistics on the spread of the virus in Georgia - www.stopcov.ge COVID-19 STATISTICS IN GEORGIA, PERSONS Daily new cases Cumulative cases - Cumulative recoveries 3/4/2020 3/11/2020 3/18/2020 3/25/2020 4/1/2020 4/8/2020 4/15/2020 4/22/2020 Source: NCDC COVID-19 STATISTICS IN GEORGIA 647 Confirmed cases 4.461 Under quarantine Source: www.stopcov.ge at 15:00, 13 May 2020 372 Active cases 394 Under hospital supervision COVID-19 CASES PER 100,000 PERSONS at 15:00, 13 May 2020 433 426 4/29/2020 5/6/2020 5/13/2020 Singapore USA 366 351 273 Italy 207 168 166 132 126 Switzerland France Germany 83 77 Source: Johns Hopkins, Worldometers at 15:00, 13 May 2020. Developed countries Emerging markets 38 35 30 29 27 16 13 6 Turkey Russia Iran Armenia R Romania 88 Czechia Ukraine Hungary S Bulgaria Kazakhstan Azerbaijan N Georgia Japan China#5GOVERNMENT'S ANTI-CRISIS STIMULUS PLAN The Government announced a series of support measures designed to mitigate the negative economic impact of COVID-19. The anti-crisis plan was presented by the Prime Minister of Georgia on 24 April 2020 and includes a social assistance package for individuals, as well as tax exemptions and various funding mechanisms for businesses. A total of GEL 3.5 billion (7% of GDP) will be allocated for implementing the economic stimulus plan, of which GEL 1.035 billion will be used to support citizens, GEL 2.11 billion to support businesses, and GEL 350 million will be spent to enhance the country's healthcare system. The stimulus plan may be further expanded and the 2020 revised Government budget document, which will be available in May 2020, will detail the full picture of measures. SUPPORT TO BUSINESSES - Tourism sector companies will fully be exempted from property tax payments in 2020 (resulting in savings of GEL 45 million), while personal income tax payments for this sector companies will be postponed until the end of 2020 (around GEL 90 million) GEL 60 million has been allocated to subsidise bank loan interest payments for hotels, which will affect around 3,000 hotels operating in hospitality industry. GEL 5 million will be allocated to support travel agencies and tourist guide. operators Hotels offered to turn into quarantine zones at a specified rate reimbursed by the Government Customs clearance for car importers postponed for 90 days until 1 Sep 2020; Around 38,000 importers affected, resulting in savings of GEL 50 million For all infrastructure projects, the State has insured against an increase in the price of construction materials totalling c.GEL 200 million With the support of local banks, legal entities were given the opportunity of loan restructuring; 7,000 legal entities have already benefited VAT refunds to double to around GEL 1.2 billion from initially planned GEL 600 million Government subsidised prices of nine food products rice, buckwheat, pasta, oil, flour, wheat, milk powder, sugar and beans; Agreement concluded with large importers, allocating GEL 15 million for the measure Support to agriculture development (grants, bank loans and irrigation systems) GEL 600 million long-term local-currency resource to be provided to commercial banks GEL 500 million will be allocated for supporting businesses, through: - % 5 LINOW GEL 300 million credit guarantee scheme GEL 2 billion loan portfolio coverage, with 90% guarantee cover on new loans and 30% on restructured loans Co-financing scheme under the State programme "Produce in Georgia" - loan/lease co-financing period increase from 24 to 36 months; interest rate co-financing mechanism change; increase the coverage of the programme; lower minimum loan/lease limit; increase working capital funding#6GOVERNMENT'S ANTI-CRISIS STIMULUS PLAN SUPPORT TO INDIVIDUALS Individuals who lost jobs during the pandemic will receive a monthly allowance of GEL 200 for a period of six months Individuals with monthly salary of GEL 750, who have not been laid-off during the pandemic, will be exempt from income tax payments for the next six months; In case of monthly salary of GEL 1,500, the exemption will apply to the GEL 750 tax base Self-employed or unemployed individuals who are able to prove that they lost income due to the pandemic outbreak, will receive GEL 300 as a one- off assistance Socially disadvantaged groups (320,000 people), as well as adults and children with disabilities (40,000 people), will be entitled to a monthly financial assistance of GEL 600 for the next six months Three-month utility payments (electricity, water and sanitation charges for more than 1.2 million families and natural gas payments for more than 670,000 families) of GEL 150 million will be subsidised by the Government With the support of the local commercial banks, retail clients were given the opportunity to defer loan payments for three months; 600,000 citizens have already benefited from this measure REOPENING TIMELINE INTERNATIONAL SUPPORT 6 Georgian authorities have mobilised US$3.0 billion financing from the International Monetary Fund (the "IMF") and other international partners (US, EU, World Bank, KFW, AFD, EBRD, EIB, ADB, etc.) to respond effectively to the COVID-19 pandemic associated economic crisis. Georgia's long-lasting ties with these institutions, prudent economic policymaking of recent years and the country's aspiration to democratic changes made this support from long-standing partners possible. Of this funding, US$1.5 billion (9.9% of GDP) is earmarked for the public sector and US$1.5 billion for the private sector. The IMF's financing is c.US$400 million, of which US$200 million will be made available immediately to the budget, US$100 million to the National Bank of Georgia (the "NBG") in the second half of 2020, and another US$100 million in 2021. With this support, the estimated stimulus in 2020 will be substantial at 11-15% of GDP, which will help to finance healthcare and macroeconomic stabilisation initiatives. On 24 April 2020, the Prime Minister of Georgia presented a timeline for gradually lifting the coronavirus-related restrictions and resuming economic activity. The reopening plan commenced on 27 April 2020 and will be executed in six phases, two weeks per stage, depending on the epidemiological situation in the country. On 7 May 2020, the Prime Minister announced an update to the plan, with target to re-open Georgia's borders to foreign tourists from 1 July 2020, while domestic tourism will resume from June 15th. Detailed Tourism Recovery plan was presented as a top priority with GEL 200 million allocated to the industry initiatives and aim to promote Georgia as a safe destination, which will be shortly followed by support schemes for agriculture, construction and development, and anti-crisis actions in education.#7NATIONAL BANK OF GEORGIA SUPERVISORY PLAN - COVID-19 National Bank of Georgia In March 2020, NBG introduced an updated Supervisory Plan for the banking sector with immediate effect, aimed at alleviating the negative financial and economic challenges created by the global COVID-19 pandemic. The measures were mainly focused on capital adequacy and liquidity initiatives that allow banks to use existing regulatory capital buffers to support customers in the current financially stressed circumstances, to continue normal business activities as far as possible, and to support the economy through ongoing lending operations. Capital adequacy initiatives: Combined buffer the conservation buffer requirement of 2.5% of risk- weighted assets has been reduced to 0% indefinitely Pillar 2 requirements: Currency induced credit risk buffer (CICR) requirement reduced by 2/3rds indefinitely The phase-in of additional credit portfolio concentration risk buffer (HHI) and net GRAPE buffer requirements on CET1 and Tier 1 capital, planned at the end of March 2020, has been postponed indefinitely The possibility of fully or partially releasing the remaining requirements of Pillar 2 buffers (HHI, CICR, net GRAPE), if necessary, remains open During the period the banks are allowed to partially or fully use these buffers, they are restricted to make capital distribution in any form This supervisory relief frees up GEL 1.6 billion of capital, which can be used for absorbance of potential losses or funding the real economy with GEL 16 billion. The banking sector has capital buffer of GEL 4 billion above the minimum requirements, which can be fully released in case of necessity General loan loss provisioning relating to COVID-19: NBG requested the Georgian banks to create general provisions under the local accounting basis used for calculation of capital adequacy ratios in the first quarter of 2020. The specific quantum of the provision reflected the NBG's current expectation of estimated credit losses on the lending book of the banking system for the whole economic cycle, given current economic expectations. The NBG considers the banking system capital ratios to be sufficiently in excess of the expected minimum capital requirements, to be able to absorb this upfront general provision, whilst maintaining sufficiently comfortable buffers over the required minimum capital ratios Liquidity initiatives 7 Liquidity coverage ratio (LCR) requirements (for local and foreign currency, as well as total requirement) may be revisited and reduced, if necessary. On 1 May 2020, NBG temporarily cancelled the 75% LCR requirement for local currency for a one-year period, or until further communicated by NBG Mandatory reserve requirements may be revisited and reduced, if necessary The eligibility criteria for repo-eligible securities has already been extended by NBG and may be revisited further, if necessary, to support GEL liquidity Other initiatives The deadline for submitting previously planned stress testing results to NBG was postponed until the end of May, 2020 NBG will not impose any monetary sanctions in case of breach of economic normatives and limits driven by external factors (e.g. reserves, exchange rate depreciation) NBG on-site audits, except for ongoing anti-money laundering reviews, postponed indefinitely All new regulatory changes and requirements postponed until September, 2020, or until further communicated by NBG. This does not apply to regulations with regard to open banking, XBRL reporting and resolution framework#8BANK OF GEORGIA'S BUSINESS CONTINGENCY PLAN - COVID-19 The Group has introduced a number of resilience protocols and a comprehensive Business Continuity Plan ("BCP") aimed at curbing the spread of COVID-19 in Georgia and mitigating the negative impact on our business and the community. We started developing the BCP at the end of January 2020, such that all of our operations would be successfully adapted to the new operating environment, while establishing the health and safety of all our staff and customers as the number one priority. Our BCP is focused on three main pillars: Operating efficiency (employees, customers and community), capital, and liquidity and funding positions. SAFETY MEASURES 8 The Bank's main branches remain open with additional security measures introduced. We reduced the physical presence of bankers in the Bank's service centres. Two-week shifts have been introduced in front offices and other service areas throughout the business, to ensure ongoing availability of team members Most Express branches remain open, however, the Bank has initiated the temporary closure of the customer service support areas of these branches, with only the self-service terminals and ATM areas remaining open Banking services, where possible, are conducted exclusively via call centres, which is operating remotely, with employees working from home with significantly increased capacity since March 2020 A three-month grace period on principal and interest payments has been introduced on all retail loans in order to significantly reduce the requirement for customers to physically visit Bank branches We have further increased focus on our digitalisation strategy and introduced various initiatives to incentivise the transfer of our customers' activity to digital channels In the Bank's back office environments, the majority of staff are now working from home Additional safety measures have been introduced in our locations. Glass barriers have been installed for our teller/operators to ensure secure interaction with customers; all employees are required to wear gloves and face masks and are equipped with hand sanitisers. The Bank's premises, as well as ATMs and self-service terminals, are sanitised twice a day, and all employees and customers entering the Bank premises have to undergo mandatory body temperature checks. Maximum of three customers are allowed to enter the branch at the same time. Cash center is split in two locations and operating in two-week shifts, where employees have to follow even stricter protocols and procedures in order to minimise the infection risk due to direct interaction with cash#9BANK OF GEORGIA'S BUSINESS CONTINGENCY PLAN - COVID-19 9 SUPPORT TO CUSTOMERS AND COMMUNITY All retail clients have been given the opportunity to defer loan principal and interest payments for three months Corporate customers and all legal entities operating in the tourism industry have been given an immediate loan restructuring opportunity. Specific sectors include hotels, as well as restaurants, travel agencies, and passenger transportation companies, amongst others In order to ensure uninterrupted secure service for our customers and incentivise the use of remote channels, since mid-March 2020, we have temporarily removed fees for transactions executed through our internet and mobile banking platforms for a two month period. Furthermore, in collaboration with mobile service providers in Georgia, Bank of Georgia ensures full access to the mBank, even in the offline mode, without an internet connection. Finally, we launched a nationwide educational campaign with informative and instructive videos (more than 100 pieces of educational content), which help people to get familiar with and learn easily how to use the mBank application The Group also introduced а new online web-based platform argacherde.ge to help businesses survive while they are closed. The businesses listed on the platform offer vouchers to its customers for future services after the full reopening of the economy The Group's digital ecosystem arm introduced a combined packed solution of Optimo and extra.ge, branded as Adapter, which offers best-in-class solution to the merchants, who can now undergo fast and efficient transformation to digital sales with just a simple plug-in. With Optimo they get effective inventory and order management platform, which is digitally integrated with extra.ge, through which they can sell their products directly to customers remotely. This structured unique digital solution was highly accepted by hundreds of retailers and producers and enabled them to quickly adjust to the new challenging environment and restrictions Galt & Taggart together with JSC Bank of Georgia organised several web- conferences for its corporate and SME clients to discuss the COVID-19 impact on Georgian economy and Georgian economic outlook for 2020. The web-conferences were also attended by high-level representatives from the Georgian Government. The presentations were followed by a Q&A session, during which our business customers had the chance to hear directly from the Group, as well as Government representatives, and discuss the current challenges and plans to overcome those In collaboration with charte.ge, we financed one-year internet access for 300 impoverished families to help youngsters continue their education The Bank financed and donated 20,000 laboratory tests of COVID-19, 10 respirators, 50,000 face masks and 60,000 gloves to the Ministry of Health of Georgia to support the battle to prevent the virus spread#10BANK OF GEORGIA'S BUSINESS CONTINGENCY PLAN - COVID-19 10 CAPITAL ADEQUACY Robust capital position: The Bank's capital position remains robust, and comfortably above our minimum regulatory requirements. At 31 March 2020, having absorbed the full upfront GEL 400 million local accounting general provision (see details on page 28), the Bank's Basel III Common Equity Tier 1, Tier 1 and Total capital adequacy ratios stood at 8.3%, 10.6% and 15.3% respectively, all well above the minimum required levels of 6.9%. 8.7% and 13.3%, respectively. Strengthening capital position through Tier 2 instruments: To further improve its capital position, in April 2020, the Bank drew- down a $55 million second tranche of a Tier 2 capital instrument initially arranged in December 2019. Dividends: In March 2020, given the level of uncertainty with regard to the global impact of COVID-19 and the potential length of time of that impact, the Board of Directors decided not to recommend a dividend for the 2019 year to shareholders at the 2020 Annual General Meeting. As a result of the ongoing uncertainties, the Board has confirmed that the Group will not be distributing a 2019 dividend to shareholders. At part of the NBG's COVID-19 supervisory plan, during the period that banks partially or fully utilise Pillar 2 or conservation buffers, they are restricted from any form of capital distribution. Over time, the Group's dividend policy remains unchanged, and the Board plans to return to a targeted payout ratio range of 25-40% as soon as practically possible. LIQUIDITY AND FUNDING Strong liquidity and funding position: The Bank's liquidity and funding position has remained strong, and comfortably above minimum regulatory requirements. At 31 March 2020, the Bank's liquidity coverage ratio stood at 121.2% and net stable funding ratio at 123.5%, compared to required minimum levels of 100%. Strong support from IFIs: The Bank has strong support from International Financial Institutions, and has already attracted a number of new long-term borrowings both in local and foreign currencies over the last couple of months. These total more than US$100 million from a combination of International Finance Corporation, European Investment Bank and FMO - the Dutch entrepreneurial development bank (in collaboration with other participating lenders), most of which has been drawn-down in April 2020. Strong funding pipeline: We continue to work with our partner financial institutions and, expect to sign new long-term facilities of around US$500 million during the next two to six months. This will further improve our liquidity position and enable US to proactively support our customers and the forthcoming economic recovery.#11GEORGIA'S ECONOMIC OUTLOOK IN 2020 With the COVID-19 pandemic, Georgia's economic outlook has significantly deteriorated; International Monetary Fund (IMF) expects Georgia's real GDP to decline by 4% in 2020, and the expectations of our investment arm, Galt & Taggart, are consistent with the IMF's projections; According to the IMF, falling exports, halted tourism, and weaker remittances are expected to widen the current account deficit to 10.5% of GDP in 2020. Urgent balance-of-payments needs resulting from the COVID-19 shock are expected to amount to c.US$ 1.6 billion in 2020-2021, and this gap will be financed through international support mobilised from IMF and other international financial institutions; Notably, Galt & Taggart has a different view on the current account deficit - projected at 6% of GDP in 2020. This is based on the anticipated significant reduction in imports due to savings in oil imports and demand collapse, largely compensating for the tourism revenue loss in 2020; The fiscal deficit is expected to temporarily widen to 8.5% of GDP in 2020 based on the IMF's projections, as revenues decline and spending rises to offset the social and economic impact of the pandemic. Importantly, the mobilised financing from international community also allows for the building of buffers for additional policy space, if risks further widen; Galt & Taggart's baseline scenario assumes that the pandemic fades and the economy reopens in the second half of 2020, however, the projections are subject to more than usual uncertainty. In a more adverse scenario, Galt & Taggart expects normalisation process to take longer and the Georgian economy to contract by 6%. GEORGIA'S ECONOMIC GROWTH FORECAST Source: Geostat, IMF 6.2% 7.4% 6.4% 4.4% 4.8% 4.8% 5.1% 3.0% 2.9% 3.0% 2.4% 3.6% -4.0% -3.7% 2008 2010 2012 2014 2016 2018 2020F 11#12CONTENTS RESPONSE TO COVID-19 OUTBREAK GROUP OVERVIEW 1920 RESULTS DISCUSSION GEORGIAN MACRO OVERVIEW APPENDICES 12#13BANK OF GEORGIA GROUP AT A GLANCE RETAIL BANKING BANK OF GEORGIA GROUP PLC WEALTH MANAGEMENT CORPORATE AND INVESTMENT BANKING BNB (BANK IN BELARUS) BANK OF GEORGIA'S CREDIT RATINGS Outlook Agency MOODY'S Rating Ba3/Ba2 Stable Fitch Ratings BB- Negative LEADING BANKING GROUP IN GEORGIA 13 Top Systemically important financial institution in Georgia A leading market position by assets, loans and deposits Strong brand name recognition and retail banking franchise: Offers the broadest range of financial products to the retail market through a network of 228 branches, 939 ATMs, 3,183 Express Pay Terminals and more than 2.5 million customers as of 31 March 2020 Sustainable high profitability with average ROAE of more than 20% over the last four years on the back of solid NIM, low cost of credit risk and stringent cost control Resilient credit profile: Well-capitalised, diversified and high quality loan book and strong liquidity profile High standards of transparency and governance: The first entity from Georgia listed on the premium segment of the Main Market of the London Stock Exchange (LSE:BGEO) since February 2012. LSE listed through GDRs since 2006 The Group has been included in the FTSE 250 and FTSE All-share Index Funds since 18 June 2012 The Group continues to be included in the global responsible investment index FTSE4Good#14STRONG INSTITUTIONAL INVESTORS SUPPORT BANK OF GEORGIA GROUP PLC 14 TOP SHAREHOLDERS As of 31 March 2020 SHAREHOLDER STRUCTURE As of 31 March 2020 Rank Shareholder name Ownership 1 JSC Georgia Capital* 19.90% 2 Harding Loevner LP 4.85% 3 JP Morgan Asset Management (UK) Ltd 4.08% 2% 3% 4 Dimensional Fund Advisors (DFA) LP 2.96% 30% 29% 5 Van Eck Global 2.92% 6 Vanguard Group Inc 2.69% 4% 7 Norges Bank Investment Management 2.65% 6% Unvested and unawarded shares for management and employees Vested shares held by management and employees ■ US ■UK/Ireland Scandinavia ■Luxembourg 26% 8 GLG Partners LP 2.54% Other** 9 Jupiter Asset Management 2.43% 10 Grandeur Peak Global Advisors LLC 2.35% * JSC Georgia Capital will exercise its voting rights at the Group's general meetings in accordance with the votes cast by all other Group Shareholders, as long as JSC Georgia Capital's percentage holding in Bank of Georgia Group PLC is greater than 9.9% ** Includes 19.9% shareholding of JSC Georgia Capital#15TRACK RECORD OF DELIVERING STRONG RESULTS Key medium to long-term targets remain unchanged Nominal Real 26.4% 25.2% 26.1% 27.0% 22.2% ROAE 20%+ III Loan book growth 24.5% 21.4% 15-20% 17.4% 22.0% 15.9% 19.0% 16.1% 2016 T 2017 2018* 2019** 2016 2017 2018 2019 ROBUST CAPITAL MANAGEMENT TRACK RECORD = Capital position: We aim to maintain +200bps buffer for CET1 and Tier 1 capital ratios over minimum regulatory requirement Maintain regular dividend payouts: Aiming 25-40% dividend payout ratio GEL 648mln+ cash dividend paid during 2013-2019, within the targeted payout range over past 7 years Adjusted for GEL 30.3mln demerger related costs, GEL 8.0mln demerger related corporate income tax gain, GEL 30.3mln one-off impact of re-measurement of deferred tax balances and GEL 3.9mln (net of income tax) termination costs of the former CEO ** Adjusted for GEL 14.2mln (net of income tax) termination costs of the former CEO and executive management *** Dividend yield is calculated based on the closing price of shares immediately prior to ex-dividend date REGULAR DIVIDENDS PAYOUT 30% 36% 33% 34% 32% 30% 30% RATIO: 4.0% 4.2% 3.1% 3.1% 3.2% 2.4% 2.7% GEL MILLIONS 122 124 98 102 72 80 51 2013 2014 2015 2016 2017 2018 2019 Total dividend paid during the year Dividend yield** 15#16CONTENTS RESPONSE TO COVID-19 OUTBREAK GROUP OVERVIEW 1920 RESULTS DISCUSSION GEORGIAN MACRO OVERVIEW APPENDICES 16#171Q20 RESULTS HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS* 17 * Net foreign currency gain Net other income Operating income Operating expenses Change Change GEL thousands unless otherwise noted 1Q20 1Q19 4Q19 y-o-y q-o-q Net interest income 197,080 189,981 3.7% 207,091 -4.8% Net fee and commission income 40,112 42,180 -4.9% 46,558 -13.8% 30,661 22,985 33.4% 37,177 -17.5% 6,627 3,568 85.7% 18,439 -64.1% 274,480 258,714 (106,008) Profit from associates 301 Operating income before cost of risk 168,773 (91,927) 188 166,975 6.1% 15.3% 60.1% 309,265 (121,545) 153 -11.2% -12.8% 1.1% 187,873 Cost of risk (241,403) (42,652) NMF (14,232) Net operating (loss) / income before non- (72,630) 124,323 NMF 173,641 96.7% -10.2% NMF NMF recurring items Net non-recurring items (40,345) (1,575) NMF (1,591) NMF (Loss)/profit before income tax and one- (112,975) 122,748 NMF 172,050 NMF off costs Income tax (benefit) / expense 13,030 (10,536) NMF (Loss)/profit adjusted for one-off costs (99,945) 112,212 One-off termination costs of former CEO and executive management (after tax) (Loss) / profit (10,240) NMF NMF (15,515) 156,535 NMF NMF (99,945) 101,972 NMF 156,535 NMF The 1Q19 income statement adjusted profit excludes GEL 10.2mln one-off employee costs (net of income tax) related to former CEO and executive management termination benefits. The amount is comprised of GEL 7.8mln (gross of income tax) excluded from salaries and other employee benefits, GEL 4.0mln (gross of income tax) excluded from non-recurring items and GEL 1.6mln tax benefit excluded from income tax expense. Full IFRS income statement is presented on page 75 1Q20 cost of risk: The higher cost of credit risk was driven by GEL 220.2mln additional ECL provision, created for the full economic cycle in both the Retail and Corporate and Investment Banking segments, related adverse macro-economic environment and expected negative impact on creditworthiness of borrowers as a result of the COVID-19 pandemic. See details on page 26. to 1Q20 net non-recurring items: The Group recorded a GEL 38.7mln one-off net loss on modification of financial assets in relation to the three-month payment holidays on principal and interest offered to retail customers in March 2020, in order to reduce the requirement for customers to physically visit Bank branches and reduce the risk of COVID-19 virus spread. Interest continues to accrue on the outstanding principal of the loans and is distributed over the remaining period of each loan. The modification terms do not compound the three-month accrued interest, and have therefore, this resulted in a one-off net loss on modification of loans to customers. This type of restructuring offered to customers reflects the impact of the Bank's immediate social response to COVID-19 in Georgia, which management does not expect to recur.#181Q20 RESULTS HIGHLIGHTS BALANCE SHEET HIGHLIGHTS* KEY RATIOS* 18 GEL thousands Mar-20 Mar-19 Change y-o-y Change Dec-19 1Q20 1Q19 4Q19 9-0-9 ROAA** -2.1% 3.1% 3.4% Liquid assets 5,379,132 Cash and cash equivalents 1,507,142 Amounts due from credit institutions Investment securities Loans to customers and finance lease receivables Property and equipment Total assets 1,917,772 1,948,592 13,144,429 9,570,691 380,580 19,663,693 Client deposits and notes 10,835,918 349,728 15,054,570 8,393,861 4,502,390 19.5% 5,559,500 -3.2% 1,162,168 29.7% 2,153,624 -30.0% 1,954,218 1,391,630 40.4% 1,619,072 20.7% -1.6% 1,786,804 7.3% 37.3% 11,931,262 8.8% 379,788 30.6% 18,569,497 ROAE** -18.6% 24.5% 29.9% Net interest margin Loan yield 5.0% 6.0% 5.4% 10.8% 12.2% 11.4% Liquid assets yield 3.9% 3.8% 3.7% Cost of funds 4.7% 4.6% 4.7% 10.2% Cost of client deposits and notes 3.1% 3.1% 3.0% 0.2% Cost of amounts owed to credit institutions 7.6% 7.4% 7.4% 5.9% Cost of debt securities issued 7.6% 7.5% 7.9% 29.1% 10,076,735 7.5% Cost Income*** 38.6% 35.5% 39.3% Amounts owed to credit 4,144,701 2,463,408 68.3% 3,934,123 5.4% NPLs to gross loans to clients 2.1% 3.3% 2.1% institutions Borrowings from DFIs 1,689,610 1,309,976 Short-term loans from NBG 1,677,339 585,797 29.0% 1,486,044 NMF 1,551,953 NPL coverage ratio 147.2% 92.2% 80.9% 13.7% 8.1% NPL coverage ratio adjusted for discounted value 194.9% 132.6% 139.6% of collateral Loans and deposits from commercial banks Debt securities issued Total liabilities 777,752 2,294,431 2,045,428 17,616,438 13,135,789 2,047,255 1,918,781 567,635 37.0% 896,126 -13.2% Cost of credit risk ratio 7.4% 1.7% 0.2% 12.2% 2,120,064 34.1% 16,418,589 6.7% 2,150,908 8.2% 7.3% -4.8% NBG (Basel III) CET1 capital adequacy ratio NBG (Basel III) Tier I capital adequacy ratio NBG (Basel III) Total capital adequacy ratio 8.3% 12.7% 11.5% 10.6% 12.7% 13.6% 15.3% 17.1% 18.1% Total equity The detailed financials of the Group are presented on pages 75-79 ** The 1Q19 ROAA and ROAE are adjusted for GEL 10.2mln one-off employee costs (net of income tax) related to termination benefits of the former CEO and executive management *** 1Q19 cost/income ratio is adjusted for GEL 7.8mln one-off employee costs (gross of income tax) related to termination benefits of the former executive management#19THE COMPETITION Leading market position in Georgia by assets (35.9%), loans (35.6%), client deposits (35.4%) and equity (28.9%) MARKET SHARE IN TOTAL ASSETS 38.4% 35.9% 19 MARKET SHARE IN GROSS LOANS 39.4% 35.6% 14.3% 4.7% 3.5% 3.2% BOG TBC LB VTB PCB Others BOG TBC 2018 2019 1Q20 FOREIGN BANKS MARKET SHARE BY ASSETS No state ownership of commercial banks since 1994 Local banks 81.8% Foreign banks 18.2% LB 14.4% 3.7% 3.6% 3.3% VTB 2018 2019 1Q20 PCB Others MARKET SHARE IN CLIENT DEPOSITS 35.4% 39.8% 11.2% 6.5% 4.3% 2.9% BOG TBC LB VTB PCB Others ■2018 2019 1Q20 Market data based on standalone accounts as published by the National Bank of Georgia (NBG) as of 31 March 2020 www.nbg.gov.ge#20STRONG UNDERLYING PERFORMANCE AMID COVID-19 IMPACT OPERATING INCOME | QUARTERLY +6.1% NET NON-INTEREST INCOME | QUARTERLY +12.7% 20 20 -11.2% -24.3% 309.3 102.2 274.5 68.7 77.4 258.7 18.4 102.2 33% 3.5 6.6 37.2 68.7 27% 77.4 28% 23.0 30.7 42.2 46.6 40.1 190.0 73% 207.1 67% 197.1 72% 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 Net other income Net foreign currency gain Net interest income ■Net non-interest income Net fee and commission income OPERATING EXPENSES* | QUARTERLY +15.3% COST/INCOME* | QUARTERLY Operating Leverage*: -9.2% y-o-y +1.5% q-o-q 23.8 -12.8% 91.9 1.1 1215 106.0 1.1 21.4 27.0 61.5 4Q19 56.5 1Q20 25.7 52.4 1Q19 Other operating expenses Administrative expenses 35.1 Depreciation, amortisation and impairment Salaries and other employee benefits 39.3% 35.5% 1Q19 * The 1Q19 operating expenses, cost to income ratio and operating leverage are adjusted for one-off costs. Please see details on one-offs on page 75 38.6% 4Q19 1Q20#21SOLID INCOME NOTWITHSTANDING PRESSURE ON YIELDS LOAN YIELDS | QUARTERLY LOAN YIELDS | FULL YEAR 12.2% 11.4% 10.8% 14.2% 13.5% 11.7% 10.8% 60.7% 58.5% 62.1% 61.7% 61.7% 58.5% 62.1% 39.3% 41.5% 37.9% 38.3% 38.3% 41.5% 37.9% 1Q19 4Q19 1Q20 2017 2018 2019 1Q20 Net loans, FC Net loans, FC, Net loans, GEL Net loans, GEL -Currency-blended loan yield, annualised LOAN YIELDS, LOCAL CURRENCY | QUARTERLY 18.4% 16.3% 15.6% -Currency-blended loan yield, annualised 21 LOAN YIELDS, FOREIGN CURRENCY | QUARTERLY 8.3% 7.9% 7.5% 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20#22STABLE COST OF FUNDING COST OF CUSTOMER FUNDS | QUARTERLY COST OF CUSTOMER FUNDS | FULL YEAR 3.1% 3.0% 3.1% 3.5% 3.5% 3.0% 3.1% 67.1% 69.3% 72.4% 69.5% 67.5% 69.3% 72.4% 32.9% 30.7% 27.6% 30.5% 32.5% 30.7% 27.6% 1Q19 4Q19 1Q20 2017 2018 2019 1Q20 Client deposits, FC I Client deposits and notes, FC Client deposits, GEL -Currency-blended cost of client deposits, annualised O Client deposits and notes, GEL Currency-blended cost of client deposits and notes COST OF FUNDS | QUARTERLY 4.6% 4.7% 4.7% COST OF FUNDS | FULL YEAR 4.7% 4.7% 5.0% 4.6% 1Q19 4Q19 1Q20 2016 2017 2018 2019 22#23DIVERSIFIED ASSET STRUCTURE AND LOAN PORTFOLIO 23 TOTAL ASSETS | 31 MARCH 2020 LIQUID ASSETS | 31 MARCH 2020 Total: GEL 19.7bln Total: GEL 5.4bln Other assets 5.8% Liquid assets 17.9% assets 27.4% Government bonds, Other liquid Cash and equivalents 28.0% Loans to customers, net 66.8% treasury bills, NBG LOANS BREAKDOW | 31 MARCH 2020 Total Gross Loans by segments Bank of Georgia standalone Total: GEL 12.7bln Retail Banking Net Loans by product Total: GEL 8.Obln CIB loans, GEL Credit cards and overdrafts Other 2.1% General consumer 2.8% 4,543.7 loans Retail mln, 19.0% loans, GEL 35.7% 8,189.1 mln, 64.3% CDs 17.8% Amounts due from credit institutions 36.3% Corporate and Investment Banking Gross Loans by sectors Total: GEL 4.5bln Health & Mining & quarrying 2.7% social work Mortgage loans 41.4% Financial intermediation 2.0% 3.6% Other 7.9% Construction Manufacturing 26.9% Electricity, gas &. water supply 11.3% Micro and SME loans 34.7% 1.5% Transport & Communication Trade Hospitality 15.0% 6.8% Real estate Service 3.9% 14.0% 4.4%#24GEL millions LOAN PORTFOLIO BREAKDOWN RETAIL BANKING | 31 MAR 2020 JSC Bank of Georgia standalone 2.9% 8,189 239 3.7% 4,316 159 3,873 80 2.1% Loan portfolio Allowance for ECL ECL rate FC GEL Amounts in GEL millions GEL loans* FC loans not exposed to FC risk FC loans exposed to FC risk Total * Includes credit cards GEL millions 24 CORPORATE INVESTMENT BANKING | 31 MAR 2020 JSC Bank of Georgia standalone 3.3% 4,544 152 1.7% 13 782 139 3,761 3.7% Loan portfolio Allowance for ECL FC GEL ECL rate RB Loan portfolio 4,316 652 3,221 8,189 % of total RB loan portfolio 52.7% Consumer Mortgages SME & Micro loans* CB & WM Loan portfolio % of total CIB loan portfolio 8.0% 1,310 510 1,727 1,280 782 17.2% 88 54 1,973 43.4% 39.3% 1,512 209 1,500 1,788 39.4% 100.0% 3,332 2,024 2,833 4,544 100.0%#25RESILIENT LOAN PORTFOLIO QUALITY 25 EXPECTED CREDIT LOSS AND NIM NPL COMPOSITION 7.3% NPL 92.7% 90.5% 80.9% 147.2% 6.5% coverage 5.6% 418 3.8% 3.3% 2.1% 279 288 2.1% 5.0% 301 318 204 253 284 27 49 21 18 3.5% 159 3.0% 3.1% 185 121 139 1.7% 133 114 124 68 2017 2018 2019 1Q20 2017 2018 2019 1Q20 Allowance for ECL, GEL mln Allowance for ECL as % of gross loans Net Interest Margin INPLS RB, GEL mln NPLs Other, GEL mln NPLS CIB, GEL mln NPLs to gross loans COST OF CREDIT RISK -70bps +570bps COST OF RISK INCREASE IN 1Q20 DUE TO COVID-19 7.4% -32.8% 241 +720bps 2.2% 1.7% 1.6% 0.9% 0.2% 2017 2018 2019 1Q19 4Q19 1Q20 GEL millions 167 160 108 43 14 2017 2018 2019 1Q19 4Q19 1Q20#26COST OF CREDIT RISK - COVID-19 IMPACT 26 The Group created additional reserves for expected credit losses for the full economic cycle in the first quarter of 2020, primarily related to deterioration of macro-economic environment and expected creditworthiness of borrowers as a result of the COVID-19 pandemic impact. The following assumptions were used to estimate the amount of reserves: Macroeconomic assumptions: In the absence of the consensus forecasts, the Group used macro parameters based on Galt & Taggart Research projections, which are consistent to the IMF expectations. We determined three scenarios (Baseline, Downside and Upside) with macro parameters for a three-year horizon and assigned respective probabilities. The weighted average of these scenario results were further considered in estimating expected credit losses (ECL). Other assumptions: Given the unprecedented nature of the COVID-19 pandemic and the uncertainties associated with it, we re- considered the existing impairment model and applied management overlays to the methodology to reflect a COVID-19 effect in ECL. In particular, granting three-month payment holidays to borrowers was not automatically considered as SICR event (i.e. a trigger to transfer the exposures from Stage 1 to Stage 2). We performed a more in depth analysis of the loan portfolio and identified pools of exposures (tourism and hospitality sectors, among others, as well as some of the retail customers) that were most likely to suffer from pandemic consequences in the short to medium term and, transferred these exposures to Stage 2; Further, to estimate the ECL for certain borrowers, in the downside scenario we assigned them Probability of Default (PD) of 1 and used only a stressed value of the real estate collateral as an estimate of Loss Given Default (LGD). The ECL was calculated as a weighted average of the scenario results; Baseline scenario (50% probability) Macro parameter Real GDP growth CPI Inflation 2020 2021 -2.7% 5.5% 4.7% 2022 5.0% 3.5% 3.0% 3.3 2.95 2.9 GEL/US$ rate Downside scenario (40% probability) Macro parameter Real GDP growth CPI Inflation GEL/US$ rate 2020 -7.0% 2.5% 7.0% 5.0% 3.8 3.3 2021 2022 3.5% 4.5% 3.2 Upside scenario (10% probability) 2020 2021 2022 2.1% 7.0% 6.0% 4.2% 3.0% 3.0% GEL/US$ rate 3.05 2.8 2.8 Base on these assumptions, additional reserves of GEL 220.2mln was created in the first quarter of 2020. Given that we are operating in a rapidly changing environment with a high level of uncertainty with regards to both the length and the severity of the COVID-19 impact, we are monitoring the new facts and circumstances on a continuous basis and will be updating the market on any significant changes in our assessments in the coming months. In order to reflect the effects of increased unemployment in the country in our ECL estimation, 12-month PD rates were amended using management expert judgment, resulting in an increase of 12-month PD rate by 5ppts in Baseline scenario and by 10ppts in Downside scenario. We also applied a 15% haircut in Baseline and 30% haircut in Downside scenario to real estate collateral values and adjusted Cure and Recovery rates. Where relevant, the Bank also used post model adjustments (credit rating override) for certain individually significant borrowers to reflect SICR driven by COVID-19 impact. Result: Macro parameter Real GDP growth CPI Inflation#27STRONG LIQUIDITY GEL millions LIQUID ASSETS TO TOTAL LIABILITIES LCR AND NSFR 27 JSC Bank of Georgia standalone (Basel III Liquidity) 133.6% 38.3% 34.9% 33.9% 125.5% 30.5% 120.1% 11,355 13,000 100.3% 16,419 17,616 5,560 5,379 4,347 4,540 31-Dec-17 Liquid assets 31-Dec-18 31-Dec-19 Total liabilities 31-Mar-20 Liquid assets to total liabilities NET LOANS TO CUSTOMER FUNDS & DFIS 109.4% 115.5% 118.4% 121.3% 103.2% 104.9% 99.6% 89.0% 31-Dec-17 31-Dec-18 31-Dec-19 31-Mar-20 Net loans to customer funds & DFIs Netloans to customer funds GEL millions 31-Dec-17 31-Dec-18* 136.7% 123.5% 132.5% 121.2% 31-Dec-19* 31-Mar-20* Liquidity coverage ratio Net stable funding ratio * 2018-2020 ratios are calculated for standalone Bank of Georgia according to NBG guidelines CUMULATIVE MATURITY GAP | 31 MARCH 2020 1,245 1,144 174 (320) (3,734) (1,838) 6.3% 5.8% 0.9% On 0-3 Demand Months 3-6 Months -1.6% 6-12 Months 1-3 Years >3 Years -9.3% -19.0% Maturity gap Maturity gap, as % of total assets#28STRONG NBG (BASEL III) CAPITAL ADEQUACY POSITION NBG MEASURES AS A RESPONSE TO COVID-19 NBG's COVID-19 Supervisory Plan impact on capital adequacy ratios, effective since March 2020: 28 CAPITAL ADEQUACY RATIOS 17.1% 16.7% 16.8% 18.1% 15.3% Combined buffer - the conservation buffer requirement of 2.5% of risk- weighted assets has been reduced to 0% indefinitely; 13.3% 12.7% 13.3% 13.6% 10.6% 12.7% 8.3% 11.0% 11.5% 11.1% Pillar 2 requirements: Currency induced credit risk buffer (CICR) requirement reduced by 2/3rds indefinitely; The phase-in of additional credit portfolio concentration risk buffer (HHI) and net GRAPE buffer requirements on Common Equity Tier 1 (CET1) and Tier 1 capital, planned at the end of March 2020, has been postponed indefinitely; The possibility of fully or partially releasing the remaining requirements of Pillar 2 buffers (HHI, CICR, net GRAPE), if necessary, remains open. Capital distribution during the period the banks are allowed to partially or fully use the Pillar 2 and conservation buffers, the banks are restricted to make capital distribution in any form; General loan loss provisioning relating to COVID-19. The Bank's actual capital adequacy position at 31 March 2020 considers the additional general provision of GEL 400 million (approximately 3.3% of the Bank's lending portfolio subject to provision under the local accounting standards) booked under the Bank's local accounting basis, which is used for calculation of the Bank's capital ratios, reflecting NBG's expectation of estimated credit losses on the Bank's lending book for the whole economic cycle, given current economic expectations. In the view of above, the Bank was subject to following minimum capital adequacy requirements at 31 March 2020: CET1-6.9%, Tier 1 -8.7% and Total capital - 13.3%. GEL millions 1Q19 2Q19 CET1 Capital Adequacy Ratio Total Capital Adequacy Ratio 3Q19 RISK WEIGHTED ASSETS 4Q19 1Q20 Tier I Capital Adequacy Ratio 13,585 13,868 14,641 12,559 11,461 1Q19 2Q19 3Q19 4Q19 1Q20#29STRONG NBG (BASEL III) CAPITAL ADEQUACY POSITION CAPITAL MANAGEMENT Capital Adequacy Decline in capital ratios during 1Q20 was primarily due to GEL 400 million general provision created for the full economic cycle in relation to COVID-19 impact Existing additional capital buffers (within c.3.9% of RWAs) reflecting differences in provisioning between NBG methodology and IFRS 9 Dividends In March 2020, given the level of uncertainty with regard to the global impact of COVID-19 and the potential length of time of that impact, the Board of Directors decided not to recommend a dividend for the 2019 year to shareholders at the 2020 AGM. As a result of the ongoing uncertainties, the Board has confirmed that the Group will not be distributing a 2019 dividend to shareholders. Tier 2 subordinated club facility To further improve the Bank's capital position, in April 2020, the Bank drew down a $55 million second tranche of a Tier 2 capital instrument initially arranged in December 2019. 29 BOG EQUITY VS. CET1 REG. CAPITAL | 31 MAR 2020 % of 8.3% RWAS GEL millions 3.1% 0.8% 1.3% 1,988 194 123 449 1,222 3.9% NBG CET1 Capital Loan IP Other BOG provisioning provisioning deductions* methodology methodology Equity (IFRS) difference difference * Revaluation reserve, investments in non-financial subsidiaries and intangible assets CET1, TIER 1 AND TOTAL CAPITAL RATIOS EVOLUTION DURING 1Q20 Capital ratios 31 December Business growth 2019 1Q20 profit (excl. general provision) General provision - COVID-19 GEL devaluation Other Capital ratios 31 March 2020 Minimum requirement 31 March impact 2020 Impact of additional 10% GEL devaluation CET1 capital adequacy ratio 11.5% -0.1% 0.5% -2.5% -0.8% -0.3% 8.3% 6.9% -0.5% Tier I capital adequacy ratio 13.6% -0.1% 0.5% -2.5% -0.6% -0.3% 10.6% 8.7% -0.4% Total capital adequacy ratio 18.1% -0.1% 0.5% -2.4% -0.5% -0.3% 15.3% 13.3% -0.3%#30US$ millions * WELL-ESTABLISHED FUNDING STRUCTURE | 31 MARCH 2020 INTEREST BEARING LIABILITIES Debt securities Borrowin issued gs 13.3% 12.1% Other amounts owed to Interest Bearing Liabilities GEL 17.3bln Client deposits & notes 62.7% 11.9% 30 WELL DIVERSIFIED INTERNATIONAL BORROWINGS S European Bank for Reconstruction and Development ADB IFC LEFSE EUROPEAN FUND FOR SOUTHEAST EUROPE Black Sea Current accounts & demand Time deposits, 53.2% deposits, 46.8% FMO Trade & Finance for Development Development Bank Other debt securities, GEL 429mln, 9.8% Others borrowings, GEL 401mln, 9.2% DFIs, Eurobonds, GEL GEL 1,690mln, 38.5% 1,865min, 42.5% BORROWED FUNDS MATURITY BREAKDOWN* 1.2% 422 4.3% 1.3% 7.0% 1.7% 0.6% 0.1% 258 339 0.8% 0.0% 0.0% 152 103 90 106 79 83 9 36 48 13 T T T 2020 2021 2022 2023 2024 2025 2026 2027 Senior Loans Subordinated Loans Eurobonds converted at GEL/US$ exchange rate of 3.2845 at 31 March 2020 2028 72 2029 % of Total assets STRONG FUNDING PIPELINE At 31 March 2020, the Bank had c.GEL 408 million undrawn loan facilities from DFIs with up to ten years maturity, part of which were already drawn-down in April 2020 BOG's 3 year, GEL 500 million local currency international bonds, with 11.00% coupon, are due on 1 June 2020, and will be repaid as scheduled Active communication on-going with partner financial institutions and signing of new long-term facilities of around US$500 million expected during the next two to six months. This will further improve liquidity position and enable to support customers and the economy during these unprecedented times#31RETAIL BANKING HIGHLIGHTS AT 31 MARCH 2020 FOR JSC BANK OF GEORGIA STANDALONE 1 2 3 BANK OF GEORGIA BANK OF GEORGIA BUSINESS SOLO Segments Clients Emerging & Mass Retail Mass Affluent 2,286 k 56 k MSME 225k Loans GEL 2,668 mln GEL 2,504 mln GEL 3,017 mln Deposits GEL2,824min GEL 2,399 mln GEL 751 min 1Q20 Loss GEL 40 min GEL 13 mln GEL 20 min P/C ratio 2.1 5.0 1.4 Branches 215 12 1 31#32Empty#33GEL millions RETAIL BANKING LOANS AND DEPOSITS MARKET SHARE-LOANS TO INDIVIDUALS 38.8% 37.5% 35.5% MARKET SHARE - DEPOSITS TO INDIVIDUALS 38.9% 36.9% 34.6% 40.3% 40.2% 2017 2018 2019 1Q20 2017 2018 2019 1Q20 RETAIL BANKING LOANS 7,428 6,267 5,044 +7.0% 7,950 2017 2018 2019 1Q20 GEL millions RETAIL BANKING DEPOSITS +4.6% 5,713 5,974 4,339 3,267 2017 2018 2019 1Q20 33#34RETAIL BANKING LOAN YIELD, COST OF DEPOSITS & NIM RETAIL BANKING LOAN YIELD I QUARTERLY 34 RETAIL BANKING COST OF DEPOSITS I QUARTERLY 5.2% 5.1% 5.7% 19.3% 16.7% 15.7% 13.6% 12.4% 11.8% 2.7% 2.5% 2.6% 7.7% 6.8% 6.8% 1.6% 1.4% 1.3% Loan Yield Loan yield, GEL Loan yield, FC Cost of deposits Cost of deposits, GEL Cost of deposits, FC ■1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 RETAIL BANKING NIMI QUARTERLY 6.6% 5.7% 4.9% 1Q19 4Q19 1Q20#35RETAIL BANKING - LEADING RETAIL BANK IN GEORGIA RETAIL BANKING CLIENT DATA MORTGAGE LOANS DOLLARISATION 35 Operating Data, GEL min Number of total Retail clients, of which: Number of Solo clients 31-Mar-20 31-Dec-19 31-Dec-18 31-Dec-17 5% 2,567,097 56,327 Consumer loans & other outstanding, volume Consumer loans & other outstanding, number Mortgage loans outstanding, volume Mortgage loans outstanding, number Micro & SME loans outstanding, volume 1,776 2,540,466 54,542 1,726 472,284 472,791 3,332 48,211 3,043 46,907 2,833 2,523 Micro & SME loans outstanding, number 83,220 81,739 Credit cards and overdrafts outstanding, volume 248 245 2,440,754 44,292 1,555 566,740 2,539 39,007 2,005 68,832 290 2,315,038 32,104 23% 26% 42% 39% 1,480 738,694 1,706 26,643 95% 77% 74% 58% 61% 1,637 53,732 308 Credit cards and overdrafts outstanding, number Credit cards outstanding, number, of which: 378,837 395,012 454,512 369,005 American Express cards 99,557 395,536 99,307 547,038 105,899 480,105 673,573 97,178 2016 2017 2018 2019 1Q20 ■Mortgage loans, FC Mortgage loans, GEL RETAIL BANKING PORTFOLIO I 31 MARCH 2020 Net Loans by products Total: GEL 8.Obln Deposits by currency Total: GEL 6.Obln Credit Other cards and 2.1% General overdrafts consumer Client Deposits, Mortgage 2.8% GEL loans loans 19.0% 28.5% 41.4% Micro and SME loans 34.7% Deposits by category Total: GEL 6.Obln Client Deposits, FC 71.5% Current accounts & demand deposits Time deposits 58.9% 41.1%#36DIVERSIFIED RETAIL PORTFOLIOS AND INCOME STREAMS 36 BALANCE SHEET | 31 MARCH 2020 JSC Bank of Georgia Standalone 32% Emerging/Mass Retail (GEL 2,668mln) 37% ■ Solo (GEL 2,504mln) ■MSME 31% (GEL 3,017min) 13% 40% Total Gross Loans GEL 8,189mln Total Deposits GEL 5,974mln Emerging/Mass Retail (GEL 2,824mln) 47% ■ Solo (GEL 2,399mln) ■MSME (GEL 751min) INCOME STATEMENT | 1920 JSC Bank of Georgia Standalone Net Interest Income GEL 118mln Emerging/Mass Retail (GEL 49mln) 31% 42% ■ Solo (GEL 32mln) 27% ■MSME (GEL 37mln) Net Fee & Commission Income GEL 24mln Emerging/Mass Retail (GEL 11min) 27% 48% ■ Solo 26% (GEL 6mln) MSME (GEL 6mln)#37RETAIL BANKING | DIGITAL PENETRATION MBANK/IBANK STATISTICS Number of Active Users | '000 Number of transactions (millions) mBank iBank mBank 620 საქართველოს ბანკის 569 13.6 მობილბანკი შენი 452 481 506 12.8 მობილური ცხოვრებისთვის 15.000 10.8 9.5 8.1 www.mBank.ge 11.5 12.5 6.7 8.2 9.5 1.4 1.3 1.3 1.3 T T 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 11 1Q20 DIGITAL VS NON-DIGITAL TRANSACTIONS Number of transactions in millions 15.000.00 Transactions breakdown by channel | 1Q20 45.0 45.6 41.5 49.1 44.0 ■mBank/iBank 6% 16% 3.2 3.3 3.2 3.4 2.7 Express pay terminals 94.2% share of digital transactions ATMs 1Q19 2Q19 3Q19 4Q19 1Q20 -Through tellers -Through digital channels Information on this slide depicts the usage of digital and non-digital channels by individual customers Branches 49% 29% 85.00 5600 e Te 37 +10.9% YoY -10.7% YoY#38RETAIL BANKING | MULTICHANNEL PERFORMANCE NUMBER OF TRANSACTIONS '000 1Q18 1Q19 1Q20 +71% 22,612 x4.4 16,530 13,207 38 -11% 26,751 25,835 22,934 12,454 +25% +1% 6,698 3,220 2,714 2,730 2,818 -26% 7,445 6,518 5,973 1,421 1,487 1,107 Tellers Mobile banking Internet banking POS terminals ATMs Express Pay terminals Information on this slide depicts the usage of channels by individual customers#39DIGITAL AREA ECOSYSTEM OVERVIEW MSME Merchant services " " Lite and modular solutions All-in-one solution (hardware + software) Al-driven offers Business loan pre-qualification HR solutions Lite and modular solutions Open API model Streamlined HR operation Al-based performance management Business intelligence /accounting ◉ Lite and modular solutions Open API model Advanced visualisations • Tailored to MSMEs DIGITAL AREA RETAIL Real estate ecosystem " ☐ Al-optimised content 39 Advanced real estate estimation Mortgage loan pre-qualifications Remodeling and interior design Online marketplace ☐ Advanced search/comparison Al-optimised content Consumer loan pre-qualification Utilisation of BOG merchant networks Auto ecosystem ■ Al-optimised content - Cross-selling (e-commerce, leasing, 11 Auto loan pre-qualification dealerships, etc.) Advanced vehicle inspection#40DIGITAL AREA ECOSYSTEM OVERVIEW Current standing and next steps SINCE AUGUST 2018 COMING SOON - 2020 40 40 area.ge full scale re-launch extra.ge acquisition and beta launch optimo.ge merchant services full scale launch Auto ecosystem active development in progress RESPONSE TO COVID-19 IN 1920 Auto ecosystem full scale launch HR solutions MVP launch BI/Accounting MVP launch adapter.ge - launch of a combined packaged solution of Optimo and extra.ge, branded as Adapter, which offers best-in-class solution to the merchants, who can now undergo fast and efficient transformation to digital sales with just a simple plug-in. With Optimo they get effective inventory and order management platform, which is digitally integrated with extra.ge, through which they can sell their products directly to customers remotely. argacherde.ge - launch of a digital platform to help businesses survive while they are closed. The businesses listed on the platform offer vouchers to its customers for future services, which can be used after the full reopening of the economy.#41CORPORATE AND INVESTMENT BANKING HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS* GEL thousands unless otherwise noted 41 1Q20 1Q19 Change y-o-y Change 4Q19 q-o-q Net interest income Net fee and commission income Net foreign currency gain Net other income Operating income Salaries and other employee benefits Administrative expenses Depreciation, amortisation and impairment Other operating expenses Operating expenses 69,341 48,541 42.9% 65,642 5.6% 8,955 8,151 9.9% 11,928 -24.9% 8,534 10,242 -16.7% 14,341 -40.5% 4,681 1,386 NMF 9,212 -49.2% 91,511 68,320 33.9% 101,123 -9.5% (10,561) (12,439) -15.1% (15,495) -31.8% (4,466) (4,027) 10.9% (8,989) -50.3% (2,473) (1,701) 45.4% (2,387) 3.6% (296) (203) 45.8% (295) 0.3% (17,796) (18,370) -3.1% (27,166) -34.5% Operating (loss) / income before cost of risk 73,715 49,950 47.6% 73,957 -0.3% Cost of risk (95,902) (1,824) NMF (7,389) NMF Net operating (loss)/income before non-recurring items (22,187) 48,126 NMF 66,568 NMF Net non-recurring items (1,406) (72) NMF (217) NMF (Loss) / profit before income tax expense and one-off costs (23,593) 48,054 NMF 66,351 NMF Income tax benefit / (expense) 1,847 (3,864) NMF (5,344) NMF (Loss)/profit adjusted for one off costs (21,746) 44,190 NMF 61,007 NMF One-off costs (after tax) (3,165) NMF (Loss)/profit (21,746) 41,025 NMF 61,007 NMF * The 1Q19 income statement adjusted profit excludes GEL 3.2mln one-off employee costs (net of income tax) related to the former CEO and executive management termination benefits. LOAN YIELD COST OF CLIENT DEPOSITS 10.7% 10.2% 8.9% 9.1% 4.0% 4.1% 3.3% 3.7% 63.1% 61.2% 65.9% 83.1% 82.3% 81.1% 82.5% 69.4% 36.9% 38.8% 34.1% 30.6% 16.9% 17.7% 18.9% 17.5% 2017 2018 2019 1Q20 2017 2018 2019 1Q20 Net loans, GEL Net loans, FC I Client deposits, FC Client deposits, GEL Currency-blended loan yield Currency-blended cost of deposits#42GEL millions CIB LOAN BOOK AND DEPOSITS MARKET SHARE - LOANS TO LEGAL ENTITIES 32.3% 31.0% 28.9% 28.8% 2017 2018 2019 1Q20 CIB NET LOANS 3,804 2,618 2,260 +15.4% 4,392 2017 2018 2019 1Q20 GEL millions 42 MARKET SHARE - DEPOSITS TO LEGAL ENTITIES 33.1% 30.9% 30.3% 29.2% 2017 2018 2019 1Q20 CIB DEPOSITS 3,825 3,457 3,473 +12.0% 4,285 2017 2018 2019 1Q20#43CIB LOAN BOOK AND DEPOSITS 43 HIGHLIGHTS - - Leading corporate bank in Georgia Integrated client coverage in key major sectors of the Georgian economy 2,811 corporate clients served by dedicated relationship bankers at 31 March 2020 GROSS LOAN BOOK BY SECTOR | 31 MAR 2020 Mining & quarrying 2.7% Financial intermediation 2.0% Electricity, gas & water supply Health & Social work 3.6% Top 10 CIB borrowers - 28.6% of CIB loan book Other 7.9% Construction 11.3% Manufacturing 26.9% Trade Hospitality Transport & Communication 6.8% Real 15.0% Top 20 CIB borrowers estate 3.9% Service 4.4% 14.0% 1.5% 39.4% of CIB loan book DEPOSITS BY CATEGORY | 31 MAR 2020 DEPOSITS BY CURRENCY | 31 MAR 2020 Time deposits, 40.6% Current accounts and demand deposits, 59.4% Client deposits, GEL, 30.6% Client deposits, FC, 69.4%#44CIB LOAN YIELD, COST OF DEPOSITS & NIM CIB LOAN YIELD I QUARTERLY CIB COST OF DEPOSITS I QUARTERLY 13.7% 12.5% 7.3% 11.5% 9.1% 9.2% 8.9% 5.9% 6.1% 8.6% 8.5% 7.8% 3.7% 3.5% 3.3% 44 1.9% 1.7% 1.6% Loan Yield Loan yield, GEL Loan yield, FC Cost of deposits Cost of deposits, GEL Cost of deposits, FC 1Q19 4Q19 1Q20 ■1Q19 4Q19 1Q20 CIB NIMI QUARTERLY 3.6% 4.0% 3.8% 1Q19 4Q19 1Q20#45BUILDING BLOCKS TO BECOME THE FINANCIAL SERVICES HUB WEALTH MANAGEMENT AIM-TO INCREASE AUM TO US$3.0BLN IN 5 YEARS TIME STRONG INTERNATIONAL PRESENCE Israel (2008), UK (2010), Hungary (2012), Turkey (2013) STRONG INTERNATIONAL PRESENCE 45 • Wealth Management Vision Become the regional hub for wealth management offering London Budapest Tbilisi Istanbul Tel Aviv AUM of GEL 2,704.4 million, up 14.1% y-o-y Diversified funding sources: " Georgia 37% Israel 8% UK 2% Germany 2% CIS 24% Other 27% - Business and tax friendly environment Secure and attractive destination Conservative regulation and high level of banking secrecy Market dominated by two LSE listed banks with high standards of transparency Dedicated office in the centre of Tbilisi, since January 2019 SCHE GELDSCHRANK RESORBAUANSTALT. HERM.BODE HANNOVER.#46BUILDING BLOCKS TO BECOME THE FINANCIAL SERVICES HUB GALT AND TAGGART - LARGEST INVESTMENT BANK IN GEORGIA BROKERAGE The leading brokerage house in the region The only international sub-custodian in the region The leading investment bank in the region Wide product coverage and Exclusive partner of SAXO Bank via White Label structure, that provides highly adaptive trading platform with professional tools, insights and world- class execution SAXO BANK DCM/ECM 46 Galt & Taggart continues to develop local capital markets in Georgia. During 1Q20, Galt & Taggart acted as a: lead manager for International Finance Corporation, facilitating a public placement of GEL 100mln local bond issuance in April 2020 rating advisor for one of the microfinance organisations, assisting in obtaining credit rating from Scope Ratings RESEARCH Sector, macro and fixed income coverage Georgian quarterly macroeconomic update International distribution S&P CAPITAL IQ MCGRAW HILL FINANCIAL Bloomberg THOMSON REUTERS Sheppey CORPORATE ADVISORY Team with sector expertise and international M&A experience Proven track record of more than 30 completed transactions over the past 8 years GLO FINANCE Best Investment Bank in Georgia 2020, 2019, 2018,2017,2016,2015#47CONTENTS RESPONSE TO COVID-19 OUTBREAK GROUP OVERVIEW 1920 RESULTS DISCUSSION GEORGIAN MACRO OVERVIEW APPENDICES 47#48GEORGIA AT A GLANCE GENERAL FACTS Area: 69,700 sq km Population (2019): 3.7 mln Life expectancy: 74 years Official language: Georgian Literacy: 100% Capital: Tbilisi Currency (code): Lari (GEL) ECONOMY Nominal GDP (Geostat) 2019: GEL 50.Obln (US$17.7 bln) Real GDP growth rate 2015-2019: 3.0%, 2.9%, 4.8%, 4.8%, 5.1% Real GDP 2011-2019 annual average growth rate: 4.7% GDP per capita 2019 (PPP): US$ 13,579 Annual inflation (e-o-p) 2019: 7.0% External public debt to GDP 2019: 31.5% Hamburg Penza POLAND BELARUS Herdam Dusseldorf GERMANY Frankfurt Leipzig UKRAINE CZECH REP SLOVAKIA Munich KAZA MOLDOVA AUSTRIA LECHTENSTEN HUNGARY Elista WICZERLAND SLOVENIA Milan aturin ROMANIA Genoa CROATIA HERZEG BOSNIA Majkop Nalak MONA ce SAN Grozny MARNO CAN YUGOSLAVIA ALBANIA MACEDONIA BULGARIA Black Sea Machač GEORGIA ARMENIA AZERBAUA Naple Salon CALY TURKEY AZER Polerme SOVEREIGN CREDIT RATINGS 48 Agency Rating Outlook Affirmed MOODY'S Ba2 Stable March 2020 Fitch Ratings BB Negative April 2020 S&P Global BB Stable October 2019#49GEORGIA'S KEY ECONOMIC DRIVERS 49 Liberal economic policy Regional logistics and tourism hub Strong FDI Support from international community Electricity transit hub potential Political environment Top performer globally in WB Doing Business over the past 12 years Liberty Act ensures a credible fiscal and monetary framework Fiscal deficit/GDP capped at 3%; Government debt/GDP capped at 60% Business friendly environment and low tax regime (attested by favourable international rankings) A natural transport and logistics hub, connecting land-locked energy rich countries in the east and European markets in the west Access to a market of 2.8bn customers without customs duties: Free trade agreements with EU, China, CIS, Turkey, Hong Kong and with EFTA countries. The GSP with USA, Canada and Japan Tourism inflows stood at 18.4% of GDP in 2019 and total international arrivals reached 9.4mln visitors in 2019 (up 7.8% y-o-y), out of which tourist arrivals were up 6.8% y-o-y to 5.1mln visitors Regional energy transit corridor accounting for 1.6% of the world's oil and gas transit volumes An influx of foreign investors on the back of the economic reforms FDI stood at US$ 1.3bln (7.1% of GDP) in 2019 FDI averaged 8.6% of GDP in 2010-2019 Georgia and the EU signed an Association Agreement and DCFTA in June 2014 Visa-free travel to the EU - another major success in Georgian foreign policy. Georgians were granted free entrance to the EU countries from 28 March 2017 Discussions commenced with the USA to drive inward investments and exports Strong political support from NATO, EU, US, UN and member of WTO since 2000; Substantial support from DFIs Developed, stable and competitively priced energy sector Only 25% of hydropower capacity utilized; 150 renewable (HPPS/WPPS/SPPS) energypower plants are in various stages of construction or development Georgia imports natural gas mainly from Azerbaijan Significantly boosted transmission capacity with 400 kV line to Turkey and 500 kV line to Azerbaijan built, other transmission lines to Armenia and Russia upgraded Additional 2,000 MW transmission capacity development in the pipeline, facilitating cross-border electricity trade and energy swaps to Eastern Europe Georgia underscored its commitment to European values by securing a democratic transfer of political power in successive parliamentary, presidential, and local elections and by signing an Association Agreement and free trade agreement with the EU Constitution amendments passed in 2013 to enhance governing responsibility of Parliament and reduce the powers of the Presidency Member of WTO since 2000, allowed Russia's access to WTO; In 2013 trade restored with Russia Despite resumed economic ties, exposure to Russia remains moderate. In 2019, Russia accounted for 13.2% of Georgia's exports and 10.7% of imports; just 3.7% of cumulative FDI over 2003-2019#50GROWTH ORIENTED REFORMS 50 EASE OF DOING BUSINESS | 2020 New Zealand Singapore 1 Source: WB-IFC Doing Business Report UK 7 ECONOMIC FREEDOM INDEX | 2020 Source: Heritage Foundation Denmark USA Georgia UK Norway Lithuania 6729 #1 in Europe and Central Asia Region Estonia Georgia Lithuania 10 12 16 USA Czech Rep. 17 23 Top 6 in Europe region out of 46 countries 11 Latvia 32 Estonia Latvia Germany Kazakhstan Russia Turkey Azerbaijan Poland Czech Rep. Armenia Ukraine 18 19 22 25 28 33 34 40 41 47 Russia 64 Ukraine Armenia Bulgaria Romania Kazakhstan Azerbaijan Poland Hungary France Turkey Italy 34 36 38 39 44 46 62 64 71 74 94 134 GLOBAL CORRUPTION BAROMETER | 2017 Source: Transparency International BUSINESS BRIBERY RISK | 2019 Germany Georgia 3% Norway 2 Sweden 4 7% Poland 7% % admitting having paid a bribe last year UK 6 Czech Rep. Slovakia Latvia Montenegro Bulgaria Turkey Lithuania Armenia Bosnia & Herz. Romania Kazakhstan Russia Ukraine Azerbaijan Moldova 9% Singapore 12% 15% 16% 17% 18% 24% 24% 27% 29% 29% 34% 38% 38% 42% Georgia is on a par with EU member states Lithuania Georgia Czech rep. Poland Latvia Armenia Bulgaria Azerbaijan Russia Ukraine Turkey Kazakhstan Uzbekistan Estonia USA France 341 Source: Trace International 40 42 74 77 79 110 122 123 126 181#51GOVERNMENT'S REFORMS ONGOING STRUCTURAL REFORMS 51 B Tax reform Corporate income tax reform Enhancing easiness of tax compliance Favorable tax rates for SME development Enhance business environment New insolvency law Capital market reform Boosting stock exchange activities Developing of local bond market Pension reform Implementation of private pension system B PPP reform B - - Transparent and efficient PPP framework Deposit insurance Boosting private savings Strengthening trust to financial system Responsible lending Decrease household exposure over indebtedness EU-Georgia association agreement agenda Deepening economic and political relations with EU Public investment management framework Improved efficiency of state projects General education reform Maximising quality of teaching in secondary schools Fundamental reform of higher education Based on the comprehensive research of the labor market needs Improvement of vocational education Increase involvement of the private sector in the professional education Promoting transit and tourism hub Development/enhancement of road, rail, air, maritime infrastructure Inclusive government Involvement of the private sector in legislative process " Accounting reform Increased transparency and financial accountability Enhanced protection of shareholder rights#52DIVERSIFIED RESILIENT ECONOMY GROSS DOMESTIC PRODUCT Source: Geostat 52 DIVERSIFIED NOMINAL GDP STRUCTURE | 2019 Source: Geostat Other 29.4% 20 Real GDP growth was 1.5% in 1Q20 12% 15 7.4% 9% 6.4% Financial & 10 4.4% 4.8% 4.8% 5.1% 6% 3.6% insurance 5.4% 3.0% 2.9% сл 5 3% Transport & O 0% storage 6.5% Trade 14.4% Real estate 11.5% Manufacturing 10.1% Public administration Agriculture 6.8% 7.2% Construction 8.6% Nominal GDP, US$ bn --Real GDP growth, % COMPARATIVE REAL GDP GROWTH RATES, % GDP PER CAPITA (2011-2019 AVERAGE) Source: IMF, Geostat 4% 0% olo ovo ove go 6% 16,000 5.6% 4.7% 4.7% 14,000 3.3% 3.6% 3.7% 3.8% 3.9% 4.5% 12,000 2.3% 2.5% 10,000 7,900 7,193 1.7% 8,000 2% 1.2% 6,000 3,233 4,000 0.1% 2,000 Ukraine Azerbaijan Russia Czech rep. Bulgaria Latvia Poland Lithuania Estonia Romania Moldova Georgia Armenia Turkey Source: IMF, Geostat, G&T 13,579 11,485 12,417 8,573 9,259 9,886 10,267 10,511 4,023 4,422 4,624 4,739 4,013 4,062 4,359 4,722 4,763 Nominal GDP per capita, US$ ■GDP per capita, PPP#53-12% 0% -2% -4% -6% -8% -6.5% -10% -8.6%8.1% 7.7% 7.5% Labor force 0.7% REAL GDP GROWTH PROJECTION, 2020 CAPITAL AND PRODUCTIVITY HAVE BEEN THE MAIN ENGINES OF GROWTH SINCE 2004 OVERALL CONTRIBUTION OF CAPITAL, LABOR, AND TOTAL FACTOR PRODUCTIVITY (TFP) TO GROWTH, 2011-2019 Total factor productivity 1.8% 53 CONTRIBUTIONS OF CAPITAL, LABOR, AND TFP TO GROWTH DURING PERIODS Source: Geostat, Galt &Taggart 10% 5% Source: Geostat, Galt &Taggart Latvia Lithuania Ukraine Estonia Czech Rep. Russia Turkey Romania Poland Bulgaria Georgia Moldova -5.5% 5.0%5.0% 4.6% 4.0%4.0% 3.0% 2.2%*1.5% Azerbaijan Armenia Capital stock 2.2% 0% Source: IMF 8% 6% 4% 2% 0% -2% -4% -6% 2011 Georgia -5% 2004-07 2008-09 2010-14 2015-19 ■ TFP ■Labor force ■Capital stock REAL GDP GROWTH: GEORGIA, MIDDLE EAST & CENTRAL ASIA, EMERGING & DEVELOPING EU 10% Source: IMF, Geostat Emerging & Developing EU 2012 2013 2014 2015 2016 Middle East & Central Asia 2017 2018 2019 2020F 2021F#54FURTHER JOB CREATION IS ACHIEVABLE UNEMPLOYMENT RATE DOWN 1.1PPTS Y/Y TO 54 HIRED WORKERS ON THE RISE Source: Geostat 11.6% IN 2019 Source: Geostat 1,100 1,800 17.4% 17.3% 17.2% 16.9% 20% 1,000 14.6% 14.1% 14.0% 13.9% 12.7% 1,600 11.6% 15% 900 800 849 840 1,400 1,628 1,643 1,659 1,643 1,694 1,734 1,717 1,707 1,694 1,690 10% 700 1,200 5% 600 500 1,000 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Employed, 000' persons -Unemployment rate, % 2010 2011 2012 2013 2014 2015 Self-employed, 000' persons SHARE OF SERVICES IN TOTAL EMPLOYMENT ON 2016 2017 2018 2019 Hired, 000' persons PRIVATE SECTOR CREATES JOBS THE RISE Source: Geostat Source: Geostat 2,000 1,000 116 121 120 122 123 124 124 138 140 1,500 800 782 796 779 774 778 761 750 737 659 600 1,000 512 530 540 560 366 403 429 442 485 400 500 730 726 760 747 794 849 843 833 895 200 302 281 287 252 259 287 272 284 300 O о 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 ■Services (incl. construction) ■ Agriculture Industry ■Public sector (hired workers) 2015 2016 2017 2018 ■Non-public sector (hired workers)#55LOW PUBLIC DEBT FISCAL DEFICIT 0% -2% -4% -2.0% -1.7% -1.9% -2.6% -2.4% -2.9% -2.7% -2.3% -2.0% -6% -5.3% -8% -10% Fiscal deficit (IMF program definition) Note: Deficit calculated as net lending / borrowing minus budget lending PUBLIC DEBT AS % OF GDP 70% 60% Public debt/GDP capped at 60% 50% 40% 30% 20% 10% ―― Total public debt to GDP, % ―― External public debt to GDP, % 2015 2016 2017 2018 2019E Source: IMF, MoF, Geostat 70% 140% 60% 120% 100% 50% 80% 40% 60% 30% 40% 20% 20% 0% 10% BREAKDOWN OF PUBLIC DEBT Source: MoF, IMF Source: MoF, as of December 2019 Multilateral 57% Domestic 21% External 79% weighted average interest rate 2.1% Bilateral 15% Eurobond 7% External public debt portfolio GROSS GOVERNMENT DEBT/GDP | 2019 Source: IMF, MoF, Galt & Taggart Russia Kazakhstan Uzbekistan Moldova Turkey Czech rep. Lithuania Latvia Romania Georgia 39.8% Belarus Poland Slovakia Armenia Ukraine Hungary Slovenia Croatia Spain Canada Montenegro Singapore Italy Contractual maturity 22 years 55#56Turkey 18% 2018 ■2019E 13% 8% 3% -2% Armenia Georgia Belarus Hungary Russia Estonia Lithuania Bulgaria Croatia Poland 0% Expenditures (current + capital), GEL mn ―― Expenditures (current + capital) as % of GDP GOVERNMENT SOCIAL EXPENDITURE AS % OF GDP 2019E BUDGET EXPENDITURES Source: MoF, Geostat INVESTING IN INFRASTRUCTURE AND SPENDING LOW ON SOCIAL 56 EXPENDITURE BREAKDOWN: CURRENT VS. CAPITAL Source: MoF 20,000 15,000 50% 100% 38.3% 32.3% 28.9% 76.0% 72.5% 73.4% 80.0% 81.7% 78.1% 80.0% 74.2% 73.1% 72.2% 40% °29.4% 29.4% 27.6%28.4%28.6% 29.4%28.2%27.7% 80% 30% 60% 10,000 20% 40% 24.0% 27.5% 26.6% 20.0% 18.3% 21.9% 20.0% 25.8% 26.9% 27.8% 5,000 10% 20% 0% 0% Source: IMF 8% ■2018 ■2019E 6% 4% 2% Turkey Armenia Croatia Lithuania Russia Poland Bulgaria Estonia Hungary Belarus Georgia 2010 2011 2012 2013 2014 Current Expenditures Capital Expenditures and net lending GOVERNMENT CAPITAL EXPENDITURE AS % OF GDP Source: IMF 2015 2016 2017 2018 2019E#57DIVERSIFIED FOREIGN TRADE 57 IMPORTS OF GOODS AND SERVICES EXPORTS OF GOODS AND SERVICES Source: NBG - BOP statistics Source: NBG - BOP statistics 12 10 20 000 10.1 9.2 9.3 7.5 8.0 1.7 8 1.4 1.6 8.7 8.5 9.4 2.0 10.8 11.1 2.2 2.4 10.0 9.5 8.9 7.6 1.0 7.2 7.0 0.8 6.1 6.2 1.7 6.0 0.5 1.3 1.7 1.1 0.9 1.2 6.1 5.2 5.3 0.9 0.4 0.3 3.6 3.9 3.1 6 5.0 4.0 0.7 1.1 3.1 3.1 2.6 2.5 1.0 0.5 2.5 4 6.3 6.7 7.7 8.3 7.7 8.6 8.7 2.5 7.0 7.4 6.8 1.9 2 4.3 5.1 1.6 2.0 2.6 3.0 3.0 3.1 3.3 4.0 4.5 4.6 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ■Goods imports, US$ bn ■Services imports, US$ bn ■Services exports, US$ bn Goods exports, Geo-originated, US$ bn Re-exports, US$ bn IMPORTS BY COUNTRY, 1Q20 EXPORTS BY COUNTRY, 1Q20 OIL IMPORTS Source: Geostat Source: Geostat Source: Geostat Ukraine 4.0% Other 15.4% EU 23.9% Armenia. 4.4% USA Uzbekist UAE an 1.4% 1.3% Oil imports were flat y/y in 1Q20 Other 13.8% EU 21.3% 1,000 800 USA 600 2.4% 400 Armenia Azerbaija 200 6.0% Turkey 17.4% 5.9% Ukraine 6.8% n о 15.7% -200 -400 Hillyd 75% 60% 45% 30% 15% 0% -15% -30% China 9.1% Azerbaija Russia n 10.5% 9.2% Turkey China 6.9% Russia 12.8% 11.7% 2014 2015 2016 2017 Oil imports, US$ mn Oil imports, % change, y/y#58DIVERSIFIED SOURCES OF CAPITAL STRONG FOREIGN INVESTOR INTEREST Source: Geostat 58 TOURIST ARRIVALS AND REVENUES ON THE RISE 2.5 25% 4.0 Source: NBG, Geostat 25% 2.0 20% 18.3% 18.4% 16.6% 20% 3.0 1.5 10.4% 11.6% 10.9% 12.1% 15% 13.9% 12.5% 15% 1.0 7.1% 7.5% 10.0% 10.1% 6.4% 6.0% 7.2% 7.1% 2.0 10% 8.6% 5.4% 6.3% 10% 0.5 5% 1.0 5% 0.0 0% 0.0 0% I FDI, US$ bn ――FDI as % of GDP REMITTANCES - STEADY SOURCE OF EXTERNAL ༔ རྞ ༔ ༔ ༔ ༔ ༔ རྩྭ ༔ ༔ Tourism revenues, US$ bn Tourism revenues as % of GDP PUBLIC EXTERNAL BORROWING FOR CAPEX, % OF GDP Source: MOF, Geostat FUNDING Source: NBG, Geostat 2.1 9.8% 7% 1.8 8.6% 8.4% 8.1% 8.6% 8.2% 9.0% 8.5% 5.8% 1.5 7.2% 7.6% 10% 6% 5.4% 1.7 5% 1.2 0.9 29 1.6 1.5 1.4 1.3 1.3 1.4 4% 1.1 1.1 1.2 12 5% 3% 0.6 2% 0.3 1% 0.0 0% 0% Remittances, US$ bn Remittances as % of GDP 3.2% 3.3% 3.1% 3.0% 3.1% 2.5% 2.8% 2.0% 2019E#59CURRENT ACCOUNT DEFICIT SUPPORTED BY FDI CURRENT ACCOUNT BALANCE (% OF NOMINAL GDP) 59 Source: NBG, Geostat 30% 20% 6.0% Goods, net 6.5% Services, net 10% 4.6% Income, net 5.3% 8.1% Transfers, net CA deficit .net FDI 9.5% 8.2% 10.4% 5.3% 5.6% 0% -10% -5.6% -20% -9.8% -12.2% -11.4% -10.2% -8.1% -6.8% -5.1% -11.8% -12.4% -30% -40% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 FDI AND CAPITAL GOODS IMPORT Source: Geostat BUILDING INTERNATIONAL RESERVES, US$ BN 18% Source: NBG 4.0 11.6% 12.1% 3.5 13% 10.9% 3.3 3.4 3.5 3.0 10.4% 2.8 2.9 7.1% 7.5% 8.1% 8.5% 3.0 2.8 2.7 2.8 2.5 7.8% 2.3 8% 6.5% 2.5 2.1 7.2% 6.4% 7.2% 8.7% 7.9% 7.6% 7.2% 7.1% 2.0 1.5 6.0% 3% 1.5 5.7% 1.0 0.5 -2% 0.0 --FDI to GDP, % 11 Capital goods imports to GDP, % 2011#60120 100 80 60 40 20 Jan-14 INFLATION TARGETING SINCE 2009 ANNUAL INFLATION Source: Geostat MONTHLY INFLATION Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Jan-16 May-16 Aug-16 Dec-16 Apr-17 Jul-17 Nov-17 Feb-18 Jun-18 Sep-18 Jan-19 Apr-19 Aug-19 Dec-19 Mar-20 Headline inflation -Core (non-food, non-energy, non-tobacco) WORLD COMMODITY PRICES -Energy Non-energy Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Jan-16 May-16 Aug-16 Dec-16 Apr-17 Jul-17 Nov-17 Feb-18 Jun-18 Sep-18 Jan-19 Apr-19 Aug-19 Dec-19 6.1% 0% MA 60 Source: Geostat 0.7% 1% M Mar-20 60 40 20 08 120 100 Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Jan-16 May-16 Note: Jan 2014=100 Source: World Bank AVERAGE INFLATION Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Jan-16 May-16 Aug-16 Aug-16 Dec-16 Dec-16 Apr-17 Apr-17 Jul-17 Jul-17 Nov-17 Nov-17 Feb-18 Feb-18 Jun-18 Jun-18 Sep-18 Sep-18 Jan-19 Jan-19 Apr-19 Apr-19 Aug-19 Dec-19 Mar-20 5.8% 6% Source: Geostat Aug-19 Dec-19 Mar-20#6110% 8% 6% 4% 2% 0% Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Feb-16 Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Jan-16 ■Gross international reserves, US$ bn MONETARY POLICY RATE NBG cut policy rate by 50bps May-16 Aug-16 Dec-16 Apr-17 Jul-17 Nov-17 Feb-18 Jun-18 Sep-18 Jan-19 to 8.5% on 29 April 2020 INTERNATIONAL RESERVES SUFFICIENT TO FINANCE MORE THAN 3 MONTHS OF IMPORTS INTERNATIONAL RESERVES 4.0 3.0 2.0 1.0 0.0 CENTRAL BANK'S INTERVENTIONS NBG sold US$ 120mn in Mar-Apr 2020 Source: NBG 300 220 US$ sale 200 120 100 100 40 40 27200 60 60 40 wl-15 O -100 -200 08- -120 US$ purchase -40 -63 -140 61 Source: NBG 100 40 32.8 20 20 -85 -20-20 -20-40 -30 -25-65 -70 -30 -101 May-16 Sep-16 Dec-16 Apr-17 Aug-17 Nov-17 Mar-18 Jun-18 Oct-18 Jan-19 May-19 Sep-19 Dec-19 Apr-20 Source: NBG 10% do do do do do do 8% 8.5% 4% Apr-19 Aug-19 Dec-19 Mar-20 80% 75% 70% 65% 60% 55% 50% Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Loan dollarization Jun-15 Oct-15 Jan-16 May-16 Aug-16 Jan-14 Apr-14 Jul-14 LOAN AND DEPOSIT DOLLARIZATION Dec-16 Apr-17 Jul-17 Nov-14 Feb-15 Jun-15 Sep-15 Dec-15 Apr-16 Jul-16 Nov-16 Feb-17 Jun-17 Sep-17 Dec-17 Apr-18 Jul-18 Nov-18 Nov-17 Feb-18 Jun-18 Sep-18 Jan-19 Apr-19 Aug-19 Dec-19 Mar-20 Deposit dollarization NBG net interventions, US$ mn Feb-19 May-19 Source: NBG 80% 75% 70% 66.3% 65% 58.5% 60% 55% 50% Sep-19 Dec-19 Apr-20#62Jan-14 Apr-14 Aug-14 FLOATING EXCHANGE RATE - POLICY PRIORITY FX RESERVES Source: NBG 5.0 1.42 1.30 1.25 1.36 1.31 1.23 1.24 1.5 1.16 1.29 1.13 130 4.0 1.03 120 1.0 3.0 3.5 110 3.3 3.4 2.8 2.9 3.0 2.0 2.8 2.7 2.8 100 2.5 2.3 0.5 1.0 0.0 0.0 Official FX reserves, US$ bn -M2 multiplier M2 AND ANNUAL INFLATION 40% 30% 20% 10% 0% -10% Nov-14 Mar-15 Jun-15 Oct-15 Jan-16 May-16 Aug-16 Dec-16 Apr-17 Jul-17 Nov-17 Feb-18 M2, % change, y/y (LHS) Jun-18 Sep-18 Jan-19 Apr-19 Aug-19 Annual inflation, eop (RHS) Dec-19 Mar-20 Jan-14 Apr-14 Jul-14 – 8 NOMINAL AND REAL EFFECTIVE EXCHANGE RATE (JAN2014=100) Nov-14 Feb-15 May-15 Sep-15 Dec-15 Apr-16 Jul-16 Nominal effective exchange rate Source: NBG M2 AND USD/GEL 8% 40% 6% 30% 4% 20% 2% 10% 0% 0% -2% -10% appreciation Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 M2, % change, y/y (LHS) Jan-16 May-16 Aug-16 Dec-16 Apr-17 Oct-16 Feb-17 May-17 Sep-17 Dec-17 Mar-18 Jul-18 Oct-18 Jan-19 May-19 62 Source: NBG 130 120 -6.6% y/y 110 100 90 -4.6% y/y 80 Aug-19 Dec-19 Mar-20 Real effective exchange rate depreciation Source: NBG Jul-17 Nov-17 Feb-18 Jun-18 Sep-18 Jan-19 Apr-19 Aug-19 Dec-19 Mar-20 GEL/USD, % change, y/y (RHS) 40% 30% 20% 10% 0% -10%#63GROWING AND WELL-CAPITALISED BANKING SECTOR SUMMARY Prudent regulation and oversight ensuring financial stability Demonstrated strong resilience towards both domestic and external shocks without single bank going bankrupt No nationalization of the banks and no government ownership since 1994 Resilient to different shocks to the economy, room for healthy credits growth with retail loans at 32.8% of GDP and total loans at 63.8% of GDP in 2019 Source: National Bank of Georgia, Geostat 50 WA5 40 30 20 10 63 BANKING SECTOR ASSETS, LOANS AND DEPOSITS 25.0% CAGR Assets, GEL bn ■Loans, GEL bn Source: NBG 47.2 31.9 26.2 BANKING SECTOR LOANS TO GDP, 2019E Source: IMF, Central Banks Bulgaria 49.3% Poland Czech Rep. Russia Croatia Armenia Slovakia Georgia Estonia Turkey Israel 49.9% 50.7% 53.3% 55.8% 55.8% 62.3% 63.8% 68.7% 70.1% 71.0% Deposits, GEL bn NON-PERFORMING LOANS, LATEST-2019 Lithuania Hungary Georgia Czech Rep. Poland Romania Belarus Turkey Latvia Armenia Bulgaria Croatia Bosnia & Herz. Portugal Kazakhstan Russia Source: IMF, NBG 1.2% 1.5% 1.9% 2.9% 4.0% 4.6% 4.6% 4.7% 5.0% 5.4% 7.6% 7.6% 7.7% 7.7% 8.6% 9.3%#641Q07 2Q07 3Q07 4Q07 4Q07 1Q08 8007 2Q08 3008 3Q08 8007 དང་༠༠ 100% 1Q09 2008 600Z REAL ESTATE PRICE INDEX 180 160 Inflation adjusted real estate price index (2010-100, GEL) Real wage index (2010=100, GEL) 140 120 100 80 60 40 300° 3Q09 60077 OLOL 1010 2010 2Q10 3010 3Q10 4Q10 1011 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 GROWING ECONOMY SUPPORTS HEALTHY CREDIT GROWTH 64 BANKING SECTOR CORPORATE & RETAIL LOANS MORTGAGE LOANS Source: NBG TO GDP Source: NBG, Geostat 106,370 107,840 7,711 70% 7,048 92,980 Retail loans to GDP 6,031 60% 72,140 31,720 31,420 Corporate loans to GDP 50% 35% 35,990 4,315 33% 5,062 4,453 33% 32,680 40% 27% 30% 4,604 23% 74,650 76,420 30% 20% 3,350 17% 56,990 11% 12% 13% 20% 2,595 2,649 39,470 10% 0% 17% 17% 18% 19% 21% 26% 24% 25% 27% 31% 35% 966 1,427 2017 2018 2019 1Q20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 FX-denominated mortgage loans, GEL mn ■GEL-denominated mortgage loans, GEL mn Total mortgage loans, GEL mn 2017 2018 2019 1Q20 Number of mortgage loans in FX Number of mortgage loans in GEL Total number of mortgage loans 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Source: NBG, Geostat#65Armenia Ukraine Russia Azerbaijan Belarus Georgia Kazakhstan Turkey Armenia Euro Moldova 15.5% 18.7% 22.6% Georgia Russia Azerbaijan CURRENCY WEAKENING VS. US$ Source: Bloomberg Note: US$ per unit of national currency, period 1-Aug-2014-30-April-2020 45.7% FLEXIBLE FX REGIME SUPPORTS TO MACRO STABILITY 65 INFLATION: GEORGIA AND PEERS Source: Geostat 14% End-2019 ■Mar-20 11.9% 15% MONETARY POLICY RATE: GEORGIA AND PEERS End-2019 Latest-2020 Source: Central Banks 12% 10% 8% 6.4% 6.1% 10% 7.25% 8.00% 8.75% 8.50% 8.75% 9.50% 4.9% 6% 5.50% 4% 2.3% 2.5% 3.2% 5.25% 5% -0.1% 2% 0% -2% 0% Armenia Russia Azerbaijan Ukraine Georgia Belarus Turkey Kazakhstan Ukraine Kazakhstan Belarus 52.0% 53.8% 55.3% 57.4% 58.0% Turkey 69.5%#661Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 RECENT TREND - REAL GDP AND ITS COMPONENTS REAL GDP GROWTH BY QUARTER, % CHANGE Y/Y Source: Geostat 66 CONTRIBUTION TO REAL GDP GROWTH Source: Geostat, Galt & Taggart 8% 7% 6% 5% 4.5% 4.4% 4% 4.5% 3% 3.4% 2.2% 2% 1.8% 1% ■Consumption Investment Net export 6.8% 7.2% 12% 6.0% 5.8% 9% 5.0% 5.1% 6% 4.6% 3% 4.1% 3.6% 0% 3.2% -3% 1.5% -6% LA TU 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 Consumption driving growth SAVINGS AND INVESTMENT TO GDP REAL GDP GROWTH BY MONTH, % CHANGE Y/Y Source: Geostat Source: Geostat ■Savings Investments 10% 40% 30% 20% 10% 0% 7.5% 6.7% 6.1% 8% 6.0% 6.5% 5.6% 5.5% 5.6% 6% 4.6% 4.6% 5.0% 5.8% 5.7% 6.4% 5.1% 5.6% 5.1% 4% 4.7% 5.2% 4.4% 4.0% 3.5% 3.8% 2.2% 2% 2.0% 2.2% 0% -2% -2.7% -4% 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 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20#67800 600 400 200 о -200 -400 -600 -800 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Trade deficit, US$ mn 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 Exports, US$ mn TRADE DEFICIT UP 1.7% Y/Y IN 1920 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 Feb-19 Mar-19 Apr-19 RECENT TREND - EXPORTS AND IMPORTS DOWN IN MAR-20 67 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 % change y/y EXPORTS DOWN 5.9% Y/Y IN 1920 Source: Geostat IMPORTS DOWN 1.4% Y/Y IN 1920 Source: Geostat 600 70% 1,000 50% 500 400 800 40% 50% 300 200 100 о M MY I N H H H N H U H 009 30% 30% 400 20% 10% 200 10% о 0% -100 -10% -200 -10% -200 -300 -30% -400 -20% Aug-19 Sep-19 Oct-19 Nov-19 % change y/y Dec-19 Jan-20 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Source: Geostat 60% Imports, US$ mn EXPORTS BY COMMODITY, 1Q20 - % change y/y Copper 20.4% 40% Other 20% 0% Pharm. 1.6% 32.0% -20% Gold -40% 2.5% Cars 16.4% -60% Feb-20 Mar-20 Spirits. 3.0% Ferro-alloys Precious Waters 3.4% metals Fertilizers 3.6% 3.9% Wine 7.5% 5.7% Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Source: Geostat#68INTERNATIONAL VISITORS BY COUNTRY RECENT TREND – TOURIST ARRIVALS DOWN DUE TO COVID-19 - 68 TOURIST ARRIVALS BY MONTH Source: GNTA 1.5 INTERNATIONAL VISITORS BY TYPE 1.33mn 1.5 1.33mn -16.0% y/y -16.0% y/y 1.12mn 1.12mn 0.30mn 0.45mn Other -21.3% Same-day 1.0 1.0 Tusm 0.25mn 0.27mn 0.36mn EU 006mn 0.17mn Russia 0.20mn 0.5 0.18mn Turkey 0.5 0.88mn -13.2% 0.76mn 0.23mn 0.29mn 0.0 1Q19 0.18mn 0.26mn 1Q20 Armenia Tourists Azerbaijan 0.0 1Q19 1Q20 800 2019 2020 Y-o-Y growth 600 18.9% 400 -56.1% 4.0% 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: GNTA 500 300 100 -100 -300 -500 Jan-18 TOURISM REVENUES AT US$ 430MN IN 1920 Source: NBG, Galt & Taggart Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 اللسا Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Tourism revenues, US$ mn Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 % change y/y Mar-20 100% 60% 20% -20% -60% -100% Source: GNTA#69Jan-18 Feb-18 ៦៦០ ៦២៩៩៩ Mar-18 Apr-18 REMITTANCES UP 2.4% Y/Y IN 1920 May-18 Jun-18 Jul-18 Sep-18 Aug-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 RECENT TREND - REMITTANCES AT US$ 389mn IN 1Q20 May-19 Jun-19 Jul-19 Remittances, US$ mn Total remittances, % change y/y Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Source: NBG REMITTANCES BY COUNTY, 1920 50% 40% 30% Kazakhstan. 1.3% Other 5.0% EU 41.5% 20% Azerbaijan. 10% 1.6% 0% Ukraine -10% 2.9% -20% Turkey. 5.8% Israel. Russia USA 10.1% 20.6% 11.1% Source: NBG 69#70EXPOSURE TO PARTNER COUNTRIES WELL DIVERSIFIED 70 EXPORTS, TOURISM, FDI AND REMITTANCES, % OF GDP Source: Geostat, NBG, GNTA, Galt & Taggart 50% 50% WELL DIVERSIFIED ECONOMIC LINKAGES, 2019 (EXPORTS, TOURISM, FDI AND REMITTANCES), SHARE IN TOTAL 42.0% 40% 30% 20% 10% 0% 40% 30% Source: Geostat, NBG, GNTA, Galt & Taggart Other countries 27.4% EU 25.0% 20% 9.4% 5.1% 10% 0% China 3.0% Ukraine 4.2% Russia 16.6% Armenia 7.0% Azerbaijan Turkey 7.7% 9.1% Turkey Russia Other countries SUMMARY In 2019: The EU (38% of total) remains the largest source of remittances, while Russia's share continue to decline (25% of total); The EU remains Georgia's largest FDI provider; Azerbaijan remains the top export market accounting for 13% of the total; Tourism sector demonstrated resilience to Russia's direct flight ban strong growth of tourist arrivals from EU and other countries fully compensated reduced Russian tourist in 2H19. ECONOMIC LINKAGES BREAKDOWN Source: Geostat, NBG, GNTA, Galt & Taggart % of GDP, 2019 Total Exports Tourism FDI Remittances Total 21.3% 18.4% 7.1% 9.8% 56.6% EU 4.7% 2.4% 3.4% 3.7% 14.2% Russia 2.8% 3.9% 0.3% 2.4% 9.4% Turkey 1.1% 2.1% 1.3% 0.5% 5.1% Ukraine 1.4% 0.7% 0.0% 0.2% 2.4% Azerbaijan 2.8% 1.2% 0.2% 0.1% 4.3% Armenia 2.3% 1.5% 0.1% 0.1% 4.0% China 1.3% 0.2% 0.2% 0.0% 1.7% Other countries 4.9% 6.5% 1.6% 2.6% 14.0%#71CONTENTS RESPONSE TO COVID-19 OUTBREAK GROUP OVERVIEW 1920 RESULTS DISCUSSION GEORGIAN MACRO OVERVIEW APPENDICES 71#72BOARD OF DIRECTORS 72 ROBUST CORPORATE GOVERNANCE BASED ON UK CORPORATE GOVERNANCE CODE Neil Janin, Independent Non-Executive Chairman Experience: formerly Director at McKinsey & Company in Paris; formerly co-chairman of the commission of the French Institute of Directors (IFA); formerly Chase Manhattan Banking New York and Paris Hanna Loikkanen, Senior Independent Non-Executive Director Experience: currently advisor to East Capital Private Equity AB; Non-Executive Director of PJSC Rosbank; formerly: Senior executive at East Capital, FIM Group Russia, Nordea Finance, SEB Tamaz Georgadze, Independent Non-Executive Director Experience: Executive Director and founder of Raisin GmbH (formerly Saving Global GmbH); formerly: Partner at McKinsey & Company in Berlin, aide to President of Georgia Cecil Quillen, Independent Non-Executive Director Experience: Partner at Linklaters LLP with nearly 30 years of experience in working on a broad spectrum of securities and finance matters Archil Gachechiladze, Chief Executive Officer Experience: with the Group since 2009; originally joined as Deputy CEO, Corporate Banking; formerly: CEO of Georgian Global Utilities (formerly part of BGEO Group PLC). Over 17 years' experience in the financial services Al Breach, Independent Non-Executive Director Experience: Director of Gemsstock Ltd, The Browser and Furka Holdings AG, and advisor to East Capital; formerly: Head of Research, Strategist & Economist at UBS Russia and CIS, economist at Goldman Sachs Jonathan Muir, Independent Non-Executive Director Experience: CEO of Letter One Holdings SA and of LetterOne Investment Holdings; formerly: CFO and Vice President of Finance and Control of TNK-BP, Partner at Ernst & Young Véronique McCarroll, Independent Non-Executive Director Experience: 30 years' in Financial Services; Currently, Head of Strategy for Digital banking across Europe at Orange; formerly: Executive Director at Crédit Agricole CIB, Partner at McKinsey & Company, Oliver Wyman and Andersen/ Ernst & Young#73HIGHLY EXPERIENCED MANAGEMENT TEAM 73 SENIOR EXECUTIVE COMPENSATION POLICY APPLIES TO TOP EXECUTIVES AND ENVISAGES LONG-TERM DEFERRED AND DISCRETIONARY AWARDS OF SECURITIES AND NO CASH BONUSES TO BE PAID TO SUCH EXECUTIVES Archil Gachechiladze, Chief Executive Officer With the Group since 2009. Previously, CEO of Georgian Global Utilities. Held various positions with the Group - Deputy CEO, CB; Deputy CEO, IM; CFO of BGEO Group; Deputy CEO, CIB. Over 17 years of experience of senior roles at TBC Bank, Lehman Brothers Private Equity, Salford Equity Partners, KPMG, World Bank, EBRD. Holds and MBA from Cornell University. Levan Kulijanishvili, Deputy CEO, Operations With the Group since 1997. Joined as a Junior Financial Analyst of the Bank. Held various senior positions - Deputy CEO in charge of finance, Head of Internal Audit, Head of Financial Monitoring, Head of Strategy and Planning, and Head of the Financial Analysis. Holds an MBA from Grenoble Graduate School of Business. Mikheil Gomarteli, Deputy CEO, Emerging and Mass Retail With the Group since 1997. Mikheil is a textbook professional growth story made possible in our Group - he developed his way from selling debit cards door-to-door to successfully leading our Retail Banking franchise for over ten years now. Holds an undergraduate degree in Economics from Tbilisi State University. Giorgi Pailodze, Deputy CEO, Corporate and Investment Banking Joined in June 2019. Previously, VP at Evercore, London (2017-2019) and New York (2015-2017); worked in corporate and investment banking in Citigroup in New York (2013-2015). He started banking career in Georgia and held various managerial roles at TBC Bank and HSBC Bank Georgia. Holds an MBA from Cornell University. Sulkhan Gvalia, Chief Financial Officer With the Group since 2004. Previously, founder and CEO of E- Space Limited, Tbilisi. Various positions with the Group - Chief Risk Officer and Head of Corporate Banking. Prior to joining the Group, served as Deputy CEO of TbilUniversal Bank. Also, serves as non- executive independent director at Inecobank (Armenia) since 2018. Holds a law degree from Tbilisi State University. George Chiladze, Deputy CEO, Chief Risk Officer With the Group since 2008. Joined as a Deputy CEO, finance at Bank. Left in 2011 and rejoined in 2013 as Deputy CEO, CRO. Prior to rejoining, he was Deputy CEO at the Partnership Fund. Prior to returning to Georgia in 2003, he worked at the programme trading desk at Bear Stearns in New York City. Holds a PhD in physics from Johns Hopkins University in Baltimore, Maryland. Vakhtang Bobokhidze, Deputy CEO, Information Technologies With the Group since 2005. Joined as Quality Control Manager. Left the Group in 2010 and rejoined the Group in December 2010. Prior to being appointed as Deputy CEO, served as Head of IT Department since 2016. Holds an MBA from Tbilisi State University.#74HIGHLY EXPERIENCED MANAGEMENT TEAM Etuna Iremadze, Head of SOLO Business Banking With the Group since 2006. More than 18 years of experience in financial services. Previously, Head of Strategic Projects Department in Georgian Global Utilities (formerly part of BGEO Group). Held various positions within Group - Head of Blue Chip Corporate Banking Unit covering structured lending, M&As, significant buyouts in Georgia, project financing. Holds an MBA from Grenoble Graduate School of Business. Ekaterine Liluashvili, Head of Wealth Management With the Group since 2008. Extensive experience in financial services. Previously, Head of International Business Development and Private Banker in the Bank. Prior to joining the Group, served as Private Banker in Bank Republic (Société Générale Group). Holds a degree in Banking from University of Cooperative Education - Berufsakademie Mosbach, Germany, with a specialisation in Private Banking. Levan Gomshiashvili, Chief Marketing Officer With the Group since 2019. Extensive experience in marketing. Founder of HOLMES&WATSON, creative agency, where he acted as Account Manager for banking and other sector clients. Founder of Tbilisi School of Communication, an educational facility with an emphasis on ExEd. Started his career in Georgian Railway, covering advertising and project management. Holds MSc in Management from University of Edinburgh. Nino Suknidze, General Counsel, Georgia With the Group since 2017. Previously, Counsel at Dentons Georgia. Held various senior positions - Legal Director at DLA Piper Georgia, a legal advisor to financial director of United Energy Distribution Company of Georgia, senior legal advisor at Georgian representative office of PA Consulting Group GmbH. Holds a LLM (cum laude, Nuffic scholar) in Business and Trade Law from Erasmus University Rotterdam. Certified attorney and a member of the Georgian bar. * 74 Zurab Masurashvili, Head of SME Business Banking With the Group since 2015. Extensive experience in financial services. Previously, Head of Express Business, Head of MSME Business, Head of Retail Business in the Bank. Prior to joining the Group, held several positions in international organisations - EBRD, the World Bank, GTZ, served as a Deputy Chairman of the Board of Directors in Privatbank. Holds a degree in Geology from Georgian Technical University. Andro Ratiani, Head of Innovation With the Group since 2018. Extensive experience in the global financial services. Previously, Global Head of Product Management at IHS Markit, spent 6 years in UBS AG Investment & Wealth Management Bank in New York, worked in Wells Fargo during acquisition phase of Wachovia Bank. Started his career at the Bank's CIB Department. Holds a Master's degree in technology management from Columbia University. Nutsa Gogilashvili, Head of Customer Experience and HCM With the Group since 2016. Over 8 years of experience in financial services. Previously, Head of Strategic Processes of Corporate and Investment Banking and Head of Customer Experience Management in the Bank. Prior to joining the Group, held various senior positions in local and international financial institutions. Holds MSc in Finance from Cass Business School in London.#75GROUP INCOME STATEMENT GEL thousands, unless otherwise noted Interest income Interest expense Net interest income Fee and commission income Fee and commission expense Net fee and commission income Net foreign currency gain Net other income Operating income 75 Change Change 1Q20 1Q19 4Q19 388,326 (191,246) 334,735 (144,754) y-o-y 16.0% q-o-q 393,480 -1.3% 32.1% (186,389) 2.6% 197,080 189,981 3.7% 207,091 -4.8% 70,894 62,531 13.4% 77,472 -8.5% (30,782) (20,351) 51.3% (30,914) -0.4% 40,112 42,180 -4.9% 46,558 -13.8% 30,661 22,985 33.4% 37,177 -17.5% 6,627 3,568 85.7% 18,439 -64.1% 274,480 258,714 6.1% 309,265 -11.2% Salaries and other employee benefits (excluding one-offs) (56,538) (52,418) 7.9% (61,504) -8.1% One-off termination costs of former executive management (1) (7,842) NMF Salaries and other employee benefits (56,538) (60,260) -6.2% (61,504) -8.1% Administrative expenses (27,021) (22,741) 18.8% (35,131) -23.1% Depreciation, amortisation and impairment (21,390) (15,688) 36.3% (23,815) -10.2% Other operating expenses (1,059) (1,080) -1.9% (1,095) -3.3% Operating expenses (106,008) (99,769) 6.3% (121,545) -12.8% Profit from associates 301 188 60.1% 153 96.7% Operating income before cost of risk 168,773 159,133 6.1% 187,873 -10.2% Expected credit loss/ impairment charge on loans to customers (228,189) (40,117) NMF (7,985) NMF Expected credit loss/ impairment charge on finance lease receivables (1,885) (446) NMF 451 NMF Other expected credit loss/ impairment charge on other assets and provisions Cost of risk (11,329) (2,089) NMF (6,698) 69.1% (241,403) (42,652) NMF (14,232) NMF Net operating (loss) / income before non-recurring items (72,630) 116,481 NMF 173,641 NMF Net non-recurring items (excluding one-offs) Net non-recurring items (40,345) (1,575) NMF (1,591) NMF One-off termination costs of former CEO (2) (3,985) NMF (40,345) (5,560) NMF (1,591) NMF (Loss) profit before income tax expense (112,975) 110,921 NMF 172,050 NMF Income tax benefit (excluding one-offs) 13,030 (10,536) NMF (15,515) NMF Income tax benefit related to one-off termination costs of former CEO and executive management (3) 1,587 NMF Income tax benefit / (expense) 13,030 (8,949) NMF (15,515) NMF (Loss) / profit (99,945) 101,972 NMF 156,535 NMF One-off items (1)+(2)+(3) (10,240) NMF (Loss) / profit attributable to: - shareholders of the Group - non-controlling interests (Loss) / earnings per share (basic) (Loss) / earnings per share (diluted) (99,515) 101,512 NMF 155,823 NMF (430) 460 NMF 712 NMF (2.09) 2.12 NMF 3.30 NMF (2.08) 2.11 NMF 3.29 NMF#76GROUP BALANCE SHEET 76 Change Change GEL thousands, unless otherwise noted Mar-20 Mar-19 Dec-19 y-o-y 9-0-9 Cash and cash equivalents 1,507,142 1,162,168 29.7% 2,153,624 -30.0% Amounts due from credit institutions 1,954,218 1,391,630 40.4% 1,619,072 20.7% Investment securities 1,917,772 1,948,592 -1.6% 1,786,804 7.3% Loans to customers and finance lease receivables 13,144,429 9,570,691 37.3% 11,931,262 10.2% Accounts receivable and other loans 3,460 3,134 10.4% 3,489 -0.8% Prepayments 42,144 31,621 33.3% 42,632 -1.1% Inventories 13,342 11,756 13.5% 12,297 8.5% Right-of-use assets Investment property Property and equipment Goodwill Intangible assets Income tax assets 92,335 91,248 1.2% 96,095 -3.9% 208,776 169,328 23.3% 225,073 -7.2% 380,580 349,728 8.8% 379,788 0.2% 33,351 33,352 0.0% 33,351 0.0% 112,152 87,005 28.9% 106,290 5.5% 71,500 19,446 NMF 282 NMF Other assets 134,578 144,343 -6.8% 143,154 -6.0% Assets held for sale 47,914 40,528 18.2% 36,284 32.1% Total assets 19,663,693 15,054,570 30.6% 18,569,497 5.9% Client deposits and notes 10,835,918 8,393,861 29.1% 10,076,735 7.5% Amounts owed to credit institutions 4,144,701 2,463,408 68.3% 3,934,123 5.4% Debt securities issued 2,294,431 2,045,428 12.2% 2,120,064 8.2% Lease liabilities 104,976 78,364 34.0% 94,616 10.9% Accruals and deferred income 34,470 48,449 -28.9% 52,471 -34.3% Income tax liabilities 80,601 37,396 115.5% 37,918 112.6% Other liabilities 121,341 68,883 76.2% 102,662 18.2% Total liabilities Share capital Additional paid-in capital Treasury shares Other reserves 17,616,438 1,618 483,006 (54) 7,141 13,135,789 34.1% 16,418,589 7.3% 1,618 0.0% 1,618 0.0% 495,452 (42) -2.5% 28.6% 492,072 -1.8% (64) -15.6% 36,474 -80.4% (7,481) NMF Retained earnings 1,546,456 1,376,834 12.3% 1,655,256 -6.6% Total equity attributable to shareholders of the Group 2,038,167 1,910,336 6.7% 2,141,401 -4.8% Non-controlling interests 9,088 Total equity Total liabilities and equity Book value per share 2,047,255 19,663,693 42.88 8,445 1,918,781 15,054,570 7.6% 9,507 -4.4% 6.7% 2,150,908 -4.8% 39.88 30.6% 7.5% 18,569,497 5.9% 45.36 -5.5%#77BNB FINANCIAL HIGHLIGHTS 77 INCOME STATEMENT HIGHLIGHTS Change Change 1Q20 1Q19 4Q19 GEL thousands, unless otherwise stated y-o-y q-o-q Net interest income 9,469 6,585 43.8% 7,194 31.6% Net fee and commission income 1,703 1,812 -6.0% 1,602 6.3% Net foreign currency gain 493 3,955 -87.5% 6,548 -92.5% Net other income 334 147 127.2% 92 NMF Operating income 11,999 12,499 -4.0% 15,436 -22.3% Operating expenses (8,706) (7,847) 10.9% (9,493) -8.3% Operating income before cost of risk 3,293 4,652 -29.2% 5,943 -44.6% Cost of risk (3,422) (1,442) 137.3% (7) NMF Net non-recurring items (10) (50) -80.0% (46) -78.3% Profit before income tax expense (139) 3,160 NMF 5,890 NMF Income tax expense Profit BALANCE SHEET HIGHLIGHTS (32) (571) (171) 2,589 -94.4% NMF (1,261) 4,629 -97.5% NMF Change Mar-20 Mar-19 Dec-19 GEL thousands, unless otherwise stated y-o-y Change 9-0-9 Cash and cash equivalents 150,349 79,497 89.1% 212,777 -29.3% Amounts due from credit institutions 13,141 20,556 -36.1% 12,742 3.1% Investment securities 81,592 116,082 -29.7% 81,573 0.0% Loans to customers and finance lease receivables 671,854 451,665 48.8% 580,876 15.7% Other assets 54,981 54,001 1.8% 55,102 -0.2% Total assets 971,917 721,801 34.7% 943,070 3.1% Client deposits and notes 643,614 425,563 51.2% 608,777 5.7% Amounts owed to credit institutions 143,374 144,314 -0.7% 144,621 -0.9% Debt securities issued 51,063 53,846 -5.2% 69,438 -26.5% Other liabilities Total liabilities Total equity Total liabilities and equity 13,407 9,477 41.5% 11,038 21.5% 851,458 633,200 34.5% 833,874 2.1% 120,459 88,601 36.0% 109,196 10.3% 971,917 721,801 34.7% 943,070 3.1%#78KEY RATIOS 1Q20 1Q19 4Q19 78 1Q20 1Q19 4Q19 Profitability ROAA, annualised (2) -2.1% 3.1% ROAA, annualised (unadjusted) -2.1% 2.8% 3.4% 3.4% Liquidity NBG liquidity coverage ratio 121.2% 133.1% 136.7% (minimum requirement 100%) ROAE, annualised (2) -18.6% 24.5% 29.9% Liquid assets to total liabilities 30.5% 34.3% 33.9% RB ROAE (2) -25.5% 25.3% 31.4% Net loans to client deposits and notes 121.3% 114.0% 118.4% CIB ROAE (2) -10.6% 27.1% 28.5% ROAE, annualised (unadjusted) -18.6% 22.2% 29.9% Net loans to client deposits and notes + DFIs Leverage (times) 104.9% 98.6% 103.2% 8.6 6.8 7.6 Net interest margin, annualised 5.0% 6.0% 5.4% Asset Quality: RB NIM 4.9% 6.6% 5.7% NPLs (in GEL) 284,038 Loan yield, annualised CIB NIM RB Loan yield 4.0% 3.6% 3.8% NPLs to gross loans to clients 2.1% 326,127 3.3% 252,695 2.1% 10.8% 12.2% 11.4% NPL coverage ratio 147.2% 92.2% 80.9% 11.8% 13.6% 12.4% CIB Loan yield 8.9% 9.1% 9.2% NPL coverage ratio, adjusted for discounted value of collateral 194.9% 132.6% 139.6% Liquid assets yield, annualised 3.9% 3.8% 3.7% Cost of credit risk, annualised 7.4% 1.7% 0.2% Cost of funds, annualised 4.7% 4.6% 4.7% RB Cost of credit risk 7.4% 2.4% 0.2% Cost of client deposits and notes, annualised 3.1% 3.1% 3.0% CIB Cost of credit risk 8.3% 0.1% 0.5% RB Cost of client deposits and notes 2.6% 2.7% 2.5% Capital Adequacy: CIB Cost of client deposits and notes 3.7% 3.5% 3.3% NBG (Basel III) CET1 capital adequacy ratio 8.3% 12.7% 11.5% Cost of amounts owed to credit institutions, Minimum regulatory requirement 6.9% 9.6% 10.1% 7.6% 7.4% 7.4% annualised Cost of debt securities issued 7.6% 7.5% 7.9% Operating leverage, y-o-y (3) Operating leverage, q-o-q (3) Efficiency Cost Income (3) RB Cost/Income (3) CIB Cost/Income (3) -9.2% 5.0% -7.3% 1.5% 3.6% -4.1% NBG (Basel III) Tier I capital adequacy ratio Minimum regulatory requirement NBG (Basel III) Total capital adequacy ratio Minimum regulatory requirement 10.6% 12.7% 13.6% 8.7% 11.6% 12.2% 15.3% 17.1% 18.1% 13.3% 16.1% 17.1% 38.6% 35.5% 39.3% 46.6% 35.5% 43.5% 19.4% 26.9% 26.9% Cost Income (unadjusted) 38.6% 38.6% 39.3% (1) For the description of Key Ratios, refer to page 83 (2) The 1Q19 ratios are adjusted for one-off employee costs related to termination benefits of the former CEO and executive management (3) The 1Q19 ratios are adjusted for one-off employee costs related to termination benefits of the former executive management#79KEY OPERATING DATA Mar-20 Mar-19 Dec-19 Selected operating data: Total assets per FTE 2,676 2,017 2,515 Number of active branches, of which: 233 276 272 - Express branches (including Metro) 124 166 162 - Bank of Georgia branches 97 98 98 - Solo lounges 12 12 12 Number of ATMs. 939 886 933 Number of cards outstanding, of which: 2,160,942 2,139,239 2,145,060 - Debit cards 1,791,937 1,627,070 1,749,524 - Credit cards 369,005 512,169 Number of POS terminals Number of Express Pay terminals FX Rates: 22,472 17,684 3,183 3,152 395,536 21,870 3,217 GEL/US$ exchange rate (period-end) 3.2845 2.6914 GEL/GBP exchange rate (period-end) 4.0725 3.5147 2.8677 3.7593 Full time employees (FTE), of which: 7,349 7,465 7,383 - Full time employees, BOG standalone 5,851 5,886 5,879 - Full time employees, BNB 550 644 565 - Full time employees, BB other 948 935 939 Shares outstanding Ordinary shares Treasury shares Total shares outstanding 47,528,704 1,640,724 49,169,428 47,899,817 1,269,611 49,169,428 47,210,876 1,958,552 49,169,428 79#80SOLO - A FUNDAMENTALLY DIFFERENT APPROACH TO PREMIUM BANKING At 31 March 2020, we were serving 56,327 Solo clients through 12 Solo lounges SOLO SOLO SOLO 80 Solo offers: ° • • • Tailor made banking solutions New financial products such as bonds Concierge-style environment Access to exclusive products and events Lifestyle opportunities Solo Club Launched in second quarter of 2017, a membership group within Solo, which offers exclusive access to Solo products and services ahead of other Solo clients. At 31 March 2020, Solo Club had 5,620 members, up 26.4% y-o-y and up 2.5% q-o-q#81SOLO - THINKING AHEAD OF CUSTOMERS NEEDS Banking TOP AFFLUENT Advisory services in Customer-centric approach maximisation banking and lifestyle solutions MASS AFFLUENT Personal banking Lifestyle and lifestyle offering EDUCATION TRAVEL ENTERTAINMENT HEALTH 81#82RETAIL BANKING - CLIENT-CENTRIC MODEL At 31 March 2020, we have 76 branches operating on our client- centric model 82 გაიგე#83KEY RATIO DEFINITIONS - 83 Cost of funds Interest expense of the period divided by monthly average interest bearing liabilities; Cost of credit risk Expected loss/impairment charge for loans to customers and finance lease receivables for the period divided by monthly average gross loans to customers and finance lease receivables over the same period; Cost to income ratio Operating expenses divided by operating income; Interest bearing liabilities Amounts owed to credit institutions, client deposits and notes, and debt securities issued; Interest earning assets (excluding cash) Amounts due from credit institutions, investment securities (but excluding corporate shares) and net loans to customers and finance lease receivables; Leverage (times) Total liabilities divided by total equity; Liquid assets Cash and cash equivalents, amounts due from credit institutions and investment securities; Liquidity coverage ratio (LCR) High quality liquid assets (as defined by NBG) divided by net cash outflows over the next 30 days (as defined by NBG); Loan yield Interest income from loans to customers and finance lease receivables divided by monthly average gross loans to customers and finance lease receivables; NBG (Basel III) Common Equity Tier I capital adequacy ratio Common Equity Tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions; NBG (Basel III) Tier I capital adequacy ratio Tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions; NBG (Basel III) Total capital adequacy ratio Total regulatory capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions; Net interest margin (NIM) Net interest income of the period divided by monthly average interest earning assets excluding cash for the same period; Non-performing loans (NPLs) The principal and interest on loans overdue for more than 90 days and any additional potential losses estimated by management; NPL coverage ratio Allowance for expected credit loss/impairment loss of loans and finance lease receivables divided by NPLs; NPL coverage ratio adjusted for discounted value of collateral Allowance for expected credit loss/impairment loss of loans and finance lease receivables divided by NPLs (discounted value of collateral is added back to allowance for expected credit loss/impairment loss); Operating leverage Percentage change in operating income less percentage change in operating expenses; Return on average total assets (ROAA) Profit for the period divided by monthly average total assets for the same period; Return on average total equity (ROAE) Profit for the period attributable to shareholders of the Group divided by monthly average equity attributable to shareholders of the Group for the same period; NMF Not meaningful#84COMPANY INFORMATION 84 Registered Address 84 Brook Street London W1K 5EH United Kingdom Registered under number 10917019 in England and Wales Secretary Link Company Matters Limited 65 Gresham Street London EC2V 7NQ United Kingdom Stock Listing London Stock Exchange PLC's Main Market for listed securities Ticker: "BGEO.LN" Contact Information Bank of Georgia Group PLC Investor Relations Telephone: +44 (0) 203 178 4052; +995 322 444444 (9282) E-mail: [email protected] www.bankofgeorgiagroup.com Auditors Ernst & Young LLP 25 Churchill Place Canary Wharf London E14 5EY United Kingdom Registrar Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS13 8AE United Kingdom Please note that Investor Centre is a free, secure online service run by our Registrar, Computershare, giving you convenient access to information on your shareholdings. Investor Centre Web Address - www.investorcentre.co.uk Investor Centre Shareholder Helpline - +44 (0)370 873 5866 Share price information Shareholders can access both the latest and historical prices via the website, www.bankofgeorgia group.com