#1Water utility and renewable energy businesses Speaker: Giorgi Vakhtangishvili, CEO Georgia Capital Investor Day 12 November 2020#2Content 1 Water utility and renewable energy businesses | snapshot 2 Water utility business - 3Q20 & 9M20 results 3 Water utility business - performance against the strategy 4 Renewable energy business - 3Q20 & 9M20 results 5 Renewable energy business – pipeline projects 6 Medium-term outlook 2#3Water utility and renewable energy businesses | snapshot Water utility business Providing Renewable energy business Commissioned (91MW) Pipeline (172MW) Water production and supply services Wastewater collection and treatment services Electricity generation and sale 50MW Mestiachala HPPS At a glance Serving c. 1.4m population 46MW Zoti HPP 17.5MW Darchi HPP 20MW Hydrolea HPPS c. 36,000 commercial customers H 54MW Tbilisi WPP H 21MW Qartli WPP c. 3,700km of water network H 54MW Kaspi WPP Owning & operating 149MW HPPs linked to water utility services Key highlights • Natural monopoly with full asset ownership of water and wastewater network in the capital city of Georgia and surrounding areas Regulated business with fair returns - current regulatory WACC set at 15.99% Outstanding cash collection rates of 95%+ Self-sufficient in terms of electricity consumption by operating 149MW installed capacity hydro power plant Opportunity to establish one of the largest renewable energy platforms (c. 412MW) and capitalize on favorable electricity market conditions Build cheaply (below USD 1.5m per MW) due to underinvested hydro and wind potential in Georgia High cash-flow visibility, as operational and pipeline projects benefit from long- term fixed price PPAs formed with the Government-backed entity The natural hedge of FX risk from USD denominated electricity sales, as the whole electricity market operates in US dollars Note: In July 2020, holding company of water utility business and operational/commissioned renewable energy assets issued USD 250m green bonds 3#4Regulatory environment Water tariff setting methodology fully aligned with EU best practice Water utility business is regulated by an independent regulatory body - GNERC (Georgian National Energy and Water Supply Regulatory Commission) Main goals of the regulator include: ■Increase of transparency and trust among regulated companies and customers Harmonization of laws and regulations with EU legislation Enforcing fair KPI's to measure service quality Transparent price setting methodology, enabling the company to efficiently plan its capital investments Existing assets + Net book value WACC Return on assets New CAPEX ■Georgia took an important step towards EU integration by signing the Association Agreement in June 2014 ■ One of the major reforms was the introduction of a new model for setting prices for regulated utilities for three year regulatory period Regulatory WACC for the current 3-year regulatory period of 2018-2020 is set at 15.99%, up from the previous 13.5% ■ Water tariff to be reset from 1st January 2021 for 3-year regulatory period + Depreciation + Total operating expenses Allowed revenue#5TWh TWh Electricity market dynamics Significant electricity deficit anticipated notwithstanding the COVID-19 outbreak 1. Electricity deficit during 10 months of the year (2019) 2. Incremental electricity consumption satisfied by import Deficit (4mths) 1.5 10 1.0 0.5 Deficit (6mths) 0.0 Jan Feb Mar Apr May Jun Jul Aug Hydro and wind TPPS Imports Sep Consumption Oct Nov Dec 3. 20.0 15.0 10.0 5.0 0.0 Note: TPPs (thermal-power plants) work on imported gas Significant electricity deficit of 6.1 TWh by 2030 2009 2010 2011 2012 2013 2014 2015 2016 - I Generation hydro and wind I Addition of new generation capacities CAGR: 5.3% 2017 2018 CAGR: 4.0% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Consumption TWh 4. 15.0 12.6 12.8 89% 11.9 11.0 10.2 10.4 9.2 9.4 9.7 10.0 8.4 5.0 0.0 00 65% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Hydro and wind TPPS Imports Share of local generation Electricity trade deficit at USD 70.5m 40.0 6.1 TWh 23.5 20.0 8.2 0.0 0.5 4.5 TWh USD'm -14.0 -16.3 -20.0 -17.8 -21.6 -40.0 -44.5 -55.9 -60.0 -70.5 -80.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Electricity exports I Electricity imports Deficit 5#6Electricity market liberalization Georgia is on track to the harmonization of current energy market structure with EU directives leading to liquid, competitive and transparent market Deregulation of electricity market by moving large industrial customers out of regulated scheme to free market 1H19 Adoption of new Electricity Market Model Concept 2H19 1H20 Foundation of Georgian Energy Exchange, which will operate on Nord Pool Consulting's trading platform Already implemented To be implemented Launch of Day-Ahead Market and Balancing Market platform 2H20 2H21 2H22 Introduction of feed-in tariff mechanism. Adoption of rules for day- ahead, intraday markets, balancing and ancillary services Launch of Intraday Market platform 9#7Water utility COVID-19 impact - water sales Water sales affected by COVID-19, though unearned revenues to be reimbursed through tariff in the next regulatory period 1. Quarterly revenues from water sales - total 21 March COVID-19 lockdown 22 May 2. Quarterly revenues from water sales - commercial customers COVID-19 lockdown 21 March 22 May GEL millions 30.7 27.7 35.7 -0.4% -21.9% -6.8% 1Q20 2Q20 3Q20 I Revenue from water sales -o-y-o-y change COVID-19 impact highlights 1. 10.0% y-o-y decrease in water revenues in 9M20, was primarily driven by a drop in demand from commercial customers due to reduced economic activities during the COVID-19 outbreak 2. Water sales to residential customers remain broadly stable GEL millions 19.3 16.2 0.5% O 1Q20 -32.8% 2Q20 I Water sales from commercial customers --y-o-y change 23.7 -9.3% O 3Q20 3. Rebound in water sales from May-20 gradually normalising at prior year levels 4. Cash collections remain strong at 95%+ for both commercial and residential customers, further supported by the Government's subsidy of water utility bills during the lockdown 7#8Water utility COVID-19 impact - electricity sales Electricity prices demonstrate resilience towards COVID-19 outbreak 1. Balancing prices showing y-o-y uptrend in 2020 2. Increasing electricity sales price offset by low generation levels USD/MWh 56 50 50 50 43 50 33 51 51 42 48 26 25 49 50 46 46 51 555 50 48 Revenue (GEL'm) 7 GWh 15 5 26 30 35 31 284 233 19 225 180 132 160 110 45 9M20 -134 19M20 normalized -134 January February March April May June July August September 9M18 9M19 -133 -150 -0-2020 prices -2019 prices ■Zhinvali HPP generation Other HPPS generation Own consumption Sold electricity Key Highlights 3. 2.5 Balancing price represents a weighted average price of imported electricity and PPAS 2.0 Despite a 6.5% y-o-y decrease in 9M20 electricity demand, balancing price increased by 7.2% y-o-y during this period 9M20 water inflows to Zhinvali HPP were 37.2% lower than historic average inflows of past 30-year period 1.5 10 1.0 0.5 2020 water inflows to Zhinvali reservoir - the lowest in 30 years 1.5 bn m³ 0.9 bn m³ 0.0 1990 1995 2000 Water inflow, bn m3 2005 Historical average 2010 2015 2020 2020 water inflow#9Performance against the strategy Strong results on the back of implemented strategic priorities 1. Revenue and EBITDA build-up 2. FCFF turned positive in 2019 Water utility 68 110 117 125 140 143 105 +37.7% - 17.1% 14.9% Revenue growth FCFF 17 (2) (58) (66) 163 149 20 135 9 127 Total revenue 119 10 120 148 128 10 9 15 99 95 83 GEL millions 73 69 62 17 12 11 (1) 2 7 99 82 82 70 50 44 38 52 56 54 6 35 94 27 73 61 52 51 26 28 22 15 21 38 36 2015 2016 2017 2018 2019 9M19 9M20 3Q19 3Q20 I Revenue from water sales Revenue from electricity sales Total EBITDA 2015 2016 2017 2018 2019 9M19 9M20 3Q19 3Q20 ■Capital expenditures Cash flow from operations Strategy highlights Note: Capital expenditure is the sum of cash flow from investing activities and maintenance capex 1. Decreased self-produced electricity consumption by c. 45% (by 145GWh) from 2015 to 2019 on the back of capital expenditures freeing up electricity for sale 2. 2017-2018 years of most intensive capital expenditures focused on upgrading a significant part of water and wastewater networks 3. As a result, Privatization Agreement formed with the Government was successfully exited in 2019 obtaining unencumbered title over its assets 4. Starting from 2019, capital expenditures have been gradually decreasing to run-rate level, contributing to positive FCFF generation#10Renewable energy business performance 9M20 electricity sales increased by 9.4% y-o-y, despite the decrease in generation by 11.9% 1. 2020 quarterly revenue from electricity sales 9M20 revenue - - GEL 34.8m Renewable energy 2. 9M19 and 9M20 generations and revenues by power plants 9M20 revenue y-o-y increase: 9.4% 15.2 16.5 Revenue (GEL'm) 12.1 GEL millions 16.0 1.7 12.2 7.4 2.3 5.8 8.9 Total revenue 6.4 6.6 3.9 3.3 3.9 0.3 8.5 6.4 6.3 5.9 5.0 5.8 GWh 14.1 132 119 12.5 9M19 generation - 259 GWh 9M20 generation - 228 GWh 7.3 5.5 64 70 63 39 1Q19 1Q20 2Q19 2Q20 3Q19 3Q20 Mestiachala HPPS PPA revenue Non-PPA revenue I Business interruption reimbursement Qartli WPP ■9M19 generation Hydrolea HPPS 9M20 generation Key highlights Like-for-like y-o-y increase¹ in 9M20 revenue from electricity sales was 9.4%. Without considering 2019 BI reimbursement amount for 20MW Mestiachala HPP (Aug-Sep), the growth would be 20.6%² 3. 2. 9M20 electricity sales price during non-PPA months amounted to 38.3 USD/MWh, increasing y-o-y by 34.5% on the back of electricity market deregulation and increasing electricity deficit on the Georgian market 4. EBITDA in 3Q20 and 9M20 amounted to GEL 13.4m and GEL 27.5m, with outstanding EBITDA margins of 83.8% and 78.8%, respectively 9M20 electricity sales from Mestiachala HPPS increased by 25.9% y-o-y, despite the decrease in generation by 9.5%. Revenue from Hydrolea HPPS was down by 24.0% y-o-y, on the back of planned rehabilitation works Note (1): Like-for-like y-o-y changes, including revenues generated by Hydrolea HPPs and Qartli wind farm prior to their acquisitions (acquired in 4Q19) Note (2): Restoration process in on-going For 20MW Mestiachala HPP, as it was flooded and taken offline in late July 2019 10#11Renewable energy business - pipeline projects 172MW power plants are under advanced stage of development Renewable energy Tbilisi WPP + Kaspi WPP Darchi HPP Zoti HPP Installed capacity (MW) 54.0 54.0 17.5 46.0 Generation (P501, GWh) 175 174 85 173 Capacity factor 37% 37% 55% 43% Target commissioning date 2H23 2H23 1H23 2H22 Target ROIC 11.0% 11.0% 13.2% 10.5% Total installed capacity 172MW Total annual generation (P50) 607GWh Note (1): P50 figure is the annual average level of generation, where the output is forecasted to be exceeded 50% over a year 11#12Debut green bonds from Georgia Oversubscribed by 1.5x on debut green bond issuance amid COVID-19 outbreak First ever green bonds from Georgia In July 2020, the water utility business together with the operational/commissioned renewable energy assets, successfully priced and listed debut green bonds on the Irish Stock Exchange The issuance was met with significant interest both from institutional investors and IFIs The issuer obtained Second Party Opinion from Sustainalytics, a leading provider of environmental, social and governance research and analysis, for its Green Bond Framework The issuance of the bonds significantly improves the financial flexibility of water utility business and boosts its liquidity profile by moving from amortizing to bullet repayment structure, contributing to healthy growth of the business and enhanced dividend capacity Issuance overview USD 250 million, 5NC2, 7.75% Green Bonds Water utility capex and refinancing of existing debt Notes: Uses of proceeds: Listing: Irish Stock Exchange Notes rating: Sole bookrunner, Green structuring agent, Development finance structuring agent: Co-manager: Demand: Anchor investors: B+ (Stable) by Fitch / B (Positive) by S&P J.P. Morgan TBC Capital Book was oversubscribed by 1.5x FMO, DEG, ADB and TBC Bank Investors by geography USA (6%) Asia (14%) Georgia (14%) UK (13%) Continental Europe (53%) 12#13Medium-term outlook Key financial targets remain strong EBITDA Margin ROIC WATER UTILITY RENEWABLE ENERGY 75-80% 60-65% 13-15% in GEL 11-13% in USD VALUE CREATION DRIVERS Operating cash-flow over debt service c. 4.0x c. 1.5x Water utility business's alignment with regulatory framework Generation to reach run-rate level of c. 1.3 TWh $ USD revenue streams from electricity sales Jo Water utility tariff increase from 2021 $ Electricity sales price increase $ Bullet repayment structure for water utility business and operational renewable energy assets 13#14Forward looking statement This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Georgia Capital PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. By their nature, these forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, which could include, among other things: impact of COVID-19; regional instability; regulatory risk across a wide range of industries; investment risk; liquidity risk; portfolio company strategic and execution risks; currency fluctuations, including depreciation of the Georgian Lari, and macroeconomic risk; and other key factors that indicated could adversely affect our business and financial performance, which are contained in our past and future filings and reports and also the 'Principal Risks and Uncertainties' and Emerging Risks included in the 1H20 Results Announcement and Georgia Capital 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 Georgia Capital PLC or any other entity and must not be relied upon in any way in connection with any investment decision. Georgia Capital PLC and other entities undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Nothing in this presentation should be construed as a profit forecast. 14