#1BANK OF GEORGIA GROUP PLC INVESTOR PRESENTATION 4Q20 and FY20 Financial Results 25 February 2021 www.bankofgeorgiagroup.com#2DISCLAIMER - FORWARD LOOKING STATEMENTS 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; regional instability; loan portfolio quality; regulatory risk; liquidity and funding risk; capital risk; operational risk, cyber security, information systems and financial crime risk; COVID-19 pandemic impact risk; climate change risk; and other key factors that indicated could adversely affect our business and financial performance, which are contained elsewhere in this presentation 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 and in 2Q20 and 1H20 results announcement. 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. 2#3CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW AND STRATEGY QQ20 4Q20 AND FY20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 3#4VIRUS CASES REDUCING AND GOVERNMENT GRADUALLY LIFTING RESTRICTIONS GOVERNMENT SAFETY MEASURES Georgia was among the first countries to introduce strict virus containment measures, including border closures, curfew, ban on transportation, quarantines, nonessential business closures, among others. The swift response helped to limit the spread of the virus in 1H20, but the surge in virus cases in autumn 2020 prompted for a partial second-round lockdown in December 2020 - January 2021. Government started gradually lifting restrictions from 1 February 2021 and resumed flights to a number of countries. Considering vaccination roll-out and reduced virus cases, a full-scale reopening of the economy is expected in early-sprig of 2021. 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 300,000 Source: NCDC 250,000 200,000 150,000 100,000 50,000 at 13:00, 24 February 2021 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Jan-21 Feb-21 • COVID-19 STATISTICS IN GEORGIA 269,438 Confirmed cases 263,257 Recovered Source: www.stopcov.ge 4 at 13:00, 24 February 2021 2,718 Active cases 1,600 Under hospital supervision COVID-19 ACTIVE CASES PER 100,000 PERSONS 6,000 5,000 Source: Johns Hopkins, Worldometers at 13:00, 24 February 2021 4,000 3,000 2,000 1,000 о Uzbekistan Azerbaijan Kazakhstan Georgia Belarus Turkey Greece w Germany Armenia Iran Russia Ukraine Lithuania Israel Poland Italy 3 22 71 73 87 109 134 141 177 204 250 314 410 457 574 642 963 Estonia 2,760 2,065 UK USA Total cases (LHS) Total recoveries (LHS) Daily new cases (RHS)#5GOVERNMENT'S SUPPORT MEASURES • FISCAL STIMULUS GOVERNMENT SUPPORT IN RELATION TO PARTIAL SECOND-ROUND LOCKDOWN (DEC-20- 1H21) The Government implemented a series of support measures designed to mitigate the negative economic impact of the COVID-19 pandemic " Fiscal stimulus for affected businesses and households stood at c.4.0% of GDP in 2020. 2021 budget also targets continuation of various stimulus measures of 2.1% of GDP in the first half of 2021 Support measures combine health-related spending, transfers to households, and support to SMEs and businesses in the hard-hit sectors Strong donor support was more than sufficient to meet the COVID-19-related fiscal needs in 2020 - US$ 1.7 billion donor financing for public sector Business support measures Personal income tax exemptions Property tax exemptions for the tourism sector Tax write-offs Loan interest subsidies for tourism sector Micro grant programme Credit guarantee fund Support to households Utility subsidies Compensation for private sector employees who lost jobs Compensation for self-employed who lost jobs Transfers to vulnerable families Transfers to disabled persons Source: www.stopcov.ge GEL 515mln 260 45 20 50 40 100 GEL 545mln 270 150 30 70 27 Note: Preliminary allocations for particular measures. Actual figures may differ from the planned amounts. 5#6NATIONAL BANK OF GEORGIA'S SUPERVISORY PLAN 6 In March 2020, the NBG introduced an updated Supervisory Plan for the banking sector aimed at alleviating the negative financial and economic challenges created by the 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, 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 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, 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 COVID-19 GENERAL LOAN LOSS PROVISIONING NBG requested the Georgian banks to create general provisions under the local regulatory accounting basis used for calculation of capital adequacy ratios in 1Q20. 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. The NBG considered the banking system capital ratios to be sufficiently in excess of the expected minimum capital requirements, to be able to absorb the upfront general provision, whilst maintaining sufficiently comfortable buffers over the required minimum capital ratios LIQUIDITY INITIATIVES 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, the NBG temporarily cancelled the 75% LCR requirement for local currency for a one-year period, or until further communicated by the NBG Mandatory reserve requirements may be revisited and reduced, if necessary The eligibility criteria for repo-eligible securities has already been extended by the NBG and may be revisited further, if necessary, to support the local currency liquidity OTHER INITIATIVES The 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 the NBG. This does not apply to regulations with regard to open banking, XBRL reporting and resolution framework#7BANK OF GEORGIA'S BUSINESS CONTINUITY PLAN The Group has introduced a number of resilience protocols and a comprehensive Business Continuity Plan, which focused on four main pillars: Operating continuity (customers and employees), supporting public health and communities, abundant liquidity, and strength of capital. 7 • EMPLOYEES and Anticipated national lockdown promptly shifted all of our 2,000+ back office employees to remote work Implemented extensive safety measures in the front office Provided transportation to front office employees CUSTOMERS Offered three-month payment holidays on retail loans Strengthened safety measures in cash vault and ensured uninterrupted cash supply Enabled businesses to adapt operations and switch to digital sales Enabled more retail customers to go digital by launching mBank without data package and removing fees on mBank/iBank transactions for two months O SUPPORTING PUBLIC HEALTH Donated 20,000 PCR tests, ten ventilators, 50,000 face masks and 60,000 gloves to the Georgian Government Implemented maximum safety measures in our branches ABUNDANT LIQUIDITY Strong liquidity and funding positions even following the repayment of GEL 500 million local currency bonds due in June 2020 STRENGTH OF CAPITAL Upfront provision of c.GEL 400 million for the full economic cycle Strong internal capital generation Strengthening capital position through Tier 2 instruments: The Bank drew-down a $55 million second tranche of a Tier 2 capital instrument initially arranged in December 2019 Dividends: Dividends will be resumed once the released capital buffers are rebuilt " Strong support from IFIs: The Bank achieved commitments for US$200 million from IFIs during 2020 " Maintaining high liquidity given COVID-19-related uncertainty#840% 20% 0% -20% -40% -60% -80% -100% TRACKING GEORGIA'S ECONOMIC RECOVERY RECOVERY REVERESED IN 4Q20 AS THE COUNTRY INPOSED 2ND PARTIAL LOCKDOWN Source: Geostat, NBG, GNTA Remmitances Exports Imports Trade deficit Tourist arrivals 60% +8.8% -12.0% -15.9% -18.4% -78.6% 60% Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 % change y/y m Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Annual % change in 2020 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Feb-20 Mar-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 40% 20% 0% -20% -40% -60% -80% -100% 8#912% GEORGIA'S ECONOMIC OUTLOOK IN 2021 GEORGIA'S ECONOMIC GROWTH FORECAST 10% 8% 6% 4% 2.4% 2% 0% -2% -4% -3.7% -6% -8% 2008 2009 2010 2011 2012 -Baseline scenario 2013 2014 7.4% 6.2% 6.4% 2015 2016 4.8% 4.8% 5.0% 4.4% 5.0% 3.6% 3.0% 2.9% 2017 -Downside scenario 2018 2019 2020E -6.1% 2021F Source: Geostat, Galt & Taggart 3.6% " Our brokerage and investment arm, Galt & Taggart's forecast: Baseline scenario - Georgia's economy expected to rebound to 5.0% growth in 2021, assuming gradual recovery in tourism from the second half of 2021 Downside scenario - Georgia's economy expected to rebound to 3.6% growth in 2021, assuming slow recovery in tourism International Monetary Fund (IMF) expects Georgia's real GDP to grow by 4.3% in 2021 (forecast as of December 2020) National Bank of Georgia forecasts real GDP growth to be at 4.0% in 2021 (forecast as of February 2021) According to Fitch Rating's projection, Georgia's real GDP growth is expected at 4.3% in 2021 (forecast as of February 2021)#10CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW AND STRATEGY QQ20 4Q20 AND FY20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 10 10#11BANK OF GEORGIA GROUP AT A GLANCE RETAIL BANKING Mass Retail BANK OF GEORGIA GROUP PLC CORPORATE AND INVESTMENT BANKING Corporate Banking SOLO MSME WM and Investment Banking BNB BANK IN BELARUS • BANK OF GEORGIA'S CREDIT RATINGS Agency MOODY'S Rating Outlook Ba3/Ba2 Stable Fitch Ratings BB- Negative O A LEADING BANKING GROUP IN GEORGIA ☐ " Top Systemically important financial institution in Georgia A leading market position by assets, loans and deposits Strongest retail banking franchise: c.40% market share in deposits of individuals Most trusted bank in Georgia* Leader in payments and financial mobile app: 49% BOG share in number of transactions in POS terminals c.6mln transactions in mobile app per month Strong digital offloading of customer activity to digital channels more than 95% of the daily transactions of individuals are executed through digital channels Sustainable high profitability with average ROAE of more than 20% over the last four years (Pre-COVID-19) 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 continues to be included in the global responsible investment index FTSE4Good *Based on Fall 2020 external research by IPM Georgia 11#12STRONG INSTITUTIONAL INVESTORS SUPPORT TOP SHAREHOLDERS Rank Shareholder name BANK OF GEORGIA GROUP PLC As of 31 Dec 2020 Ownership 19.90% SHAREHOLDER STRUCTURE As of 31 Dec 2020 1 JSC Georgia Capital* 2 Fidelity Investments 6.15% 2% 3% 3 Harding Loevner LP 4.50% Unvested and unawarded shares for management and employees ■Vested shares held by management and employees ■ US 4 Van Eck Associates Corporation 3.26% 34% 26% UK/Ireland 5 Dimensional Fund Advisors (DFA) LP 3.04% 6 Prosperity Capital Management Ltd 2.80% ■Scandinavia 7 Norges Bank Investment Management 2.56% 5% 25% ■Luxembourg 5% 8 Standard Life Investments 2.14% Other** 9 Vanguard Group Inc 10 Firebird Management LLC 2.09% 1.83% * 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 12#13TRACK RECORD OF DELIVERING STRONG RESULTS Key medium-term targets remain unchanged ROAE 20%+ 26.4% 26.1% 25.2% Nominal Real 27.0% 13.0% Loan book growth 21.4% 18.9% 17.4% c.15% 19.0% 22.0% 10.2% 15.9% 2017 2018* 2019** 2020 • ROBUST CAPITAL MANAGEMENT TRACK RECORD " 2017 2018 2019 2020 REGULAR DIVIDENDS GEL MILLIONS Capital position: aiming to maintain c.200bps buffer for CET1 and Tier 1 capital ratios over minimum regulatory requirements in the medium-term Maintain regular dividend payouts: aiming 25-40% dividend payout ratio. Resuming dividend payout depends on new capital requirements schedule to be released by the NBG GEL 648mln+ cash dividend paid during 2013-2019, within the targeted payout range 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 PAYOUT 30% RATIO: 36% 33% 34% 32% 30% 30% 4.0% 4.2% 3.1% 3.1% 3.2% 2.4% 2.7% 122 124 98 102 72 80 51 2013 2014 2015 2016 2017 2018 2019 Total dividend paid during the year Dividend yield*** 13#14STRATEGIC FOCUS BANK OF THE FUTURE DATA-DRIVEN ORGANISATION Payments CUSTOMER SATISFACTION EMPLOYEE Mobile app EMPOWERMENT Loyalty STRONG FRANCHISE PROFITABILITY 14#15THE MOST POPULAR FINANCIAL MOBILE APP MBANK/IBANK STATISTICS Number of Active Users* Number of transactions THOUSANDS MILLIONS 714 760 665 620 569 20.6 18.3 Categories 12.8 13.6 14.3 9:41 Search Total Available Amount 4,652.230 9:41 Operations Visa Gold 2,744.00 0000 Payments 17.2 19.5 Transfer to Own Accounts 11.5 12.5 13.3 Payments 1.3 1.1 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 4Q19 1.0 1Q20 2Q20 3Q20 4Q20 1.1 1.1 iBank mBank c.6min PLUS Point 8,744 Deposits and Liabilities Lubines 9.744.000 VISA M 26,744 Deposits 7,060.000 15 Transactions per month 84.8% Customer Satisfaction Score Daily active NEXT STEPS: 39.2% users/monthly active users BUILDING THE GO-TO MOBILE APP ANDROID APP ON Google play 4.8 *Active user - at least one login in the past three months Information on this slide depicts the usage of digital and non-digital channels by individual customers Download on the App Store 4.7#16RETAIL BANKING MULTICHANNEL PERFORMANCE* • NUMBER OF TRANSACTIONS MILLIONS Share of digital transactions 93.5% 94.2% 96.0% 95.1% 96.1% 52.5 51.9 51.9 3.4 46.8 2.5 2.0 8.7 2.7 8.5 8.2 7.4 35.8 1.4 6.1 21.0 22.5 27.4 22.9 13.8 c.760k mBank/iBank active users** +33.6% y-o-y +6.4% 9-0-9 3,020 Express Pay terminals -6.1% y-o-y -3.5% q-0-9 ● 960 ATMs +2.9% y-o-y +1.4% q-o-q 206 Branches -22.8% y-o-y Flat q-o-q • Transactions breakdown by channel | 4Q20 ■mBank/iBank 4% 20.6 18.3 12.8 13.6 14.3 16% Express pay terminals ATMs 4Q19 1Q20 2Q20 3Q20 4Q20 96.1% share of digital transactions 40% Other ■IBank/mBank Express Pay terminals ATMs Branches Other 40% Branches * Information on this slide depicts the usage of channels by individual customers ** The users that log-in in internet and mobile bank at least once in three months 16 +15.2% YoY -11.8% YoY Continuous migration of customers activity to mBank and iBank from Express pay terminals#17PRODUCTS OFFLOADING TO DIGITAL CHANNELS • CARDS THOUSANDS • LOANS THOUSANDS DEPOSITS THOUSANDS 100% 12 9.8 25% 20 90% 10 15.9 8.3 8.4 15.8 80% 10 8.9 14.8 20% 14.2 14.2 8.6 8.5 7.3 70% 15 13.2 8 8 12.1 12.3 11.6 60% 6 5.3 4.5 15% 10 10% 10.4 9.7 50% 6 40% 6.6 4 30% 4 5 5% 2 0.7 0.6 0.4 0.2 1.1 0% о сл O Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Number of cards activated Offloading rate Feb-20 Mar-20 Number of loans issued Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 20% 2 10% 0% O Nov-20 Dec-20 Offloading rate 11.0 10.4 9.9 9.3 9.4 17 12.2 60% 10.7 11.0 10.4 50% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Number of deposits opened 40% 30% 20% 10% 0% Offloading rate#18PAYMENTS AS A DAILY TOUCHPOINTS WITH CUSTOMERS NUMBER OF PAYMENT VOLUME OF PAYMENT TRANSACTIONS TRANSACTIONS AT BOG TERMINALS AT BOG TERMINALS MILLIONS 100 GEL MILLIONS 83 62 46 31 2,555 2,671 1,937 1,406 926 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 49% Market share by number of transactions in POS terminals 2020* +2% YoY *Based on the National Bank of Georgia and Bank of Georgia data for 2020 47% Market share by volume of transactions in POS terminals 2020* +1% YoY c.23k Multifunctional POS terminals c.2.4mln Mass Retail and SOLO customers 18#19REMITTANCES AND POTENTIAL IN GEORGIAN EMIGRANTS • MARKET POTENTIAL RECEIVED REMITTANCES AT BOG THOUSANDS c. 1.3 min 350k 65 Georgians living abroad in need Active customers 55 of daily banking services US$ 1.9 bln Forecast to be transferred in 2020 (US$ 1.75bln in 2019) c.350 k Customers with high potential for loans and deposits* * More than three transfers in the last 12 months 45 GEL1.7bln 35 23.9 25 45 Loan portfolio 18.0 13.8 15 9.2 5 GEL1.5 bln Deposit portfolio -5 40.5 38.3 43.3 44.2 44.2 19 63.1 50% 45% 47.6 40% 46.2 35% 30% 25% 20% 15% 10% 5% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Received Remittances - Digital offloading rate 0%#20LOYALTY PROGRAMME PLUS LOYALTY PROGRAMME - ONE OF THE STRENGTHS OF BANKS OF GEORGIA 1.4mln c.124k active Loyalty programme members* loyalty points exchange operations per month ADVANCED ANALYTICS for partner merchants *Members with at least one active product PERSONALISED campaigns 44% average increase in sales volume during merchant campaigns 20#21CUSTOMER SATISFACTION FOCUSE ON INCREASING CUSTOMER SATISFACTION BY NPS Engaging with customers proactively and responding in real time Anticipating customer needs, wants, and future behavior Harnessing strong human relationships with data analytics for dynamic customer insights Investing in technology to deliver seamless customer experiences 38.8% 37.5% 36.6% II MEDALLIA Based on external research by IPM Georgia 42.3% 34.3% 46.0% 21 21 Nov-18 Jun-19 Nov-19 Feb-20 Aug-20 Dec-20 salesforce#22EMPLOYEE EMPOWERMENT Re-design of employee experiences New talent development strategy High-trust environment Values-based organisation Employees feel more engaged 74% High-Performing Organisations Benchmark 68% 2019 71% 2020 Based on KORN FERRY survey 68% Banking Industry Benchmark and enabled 64% 2019 74% High-Performing Organisations Benchmark 69% 2020 68% Banking Industry Benchmark 22 22#23HIGH ESG SCORES AND MORE FOCUS ON ESG GOING FORWARD * ISS▷ ENVIRONMENT 3 SOCIAL 2 GOVERNANCE MSCI Bank of Georgia falls into the highest scoring range relative to global peers CCC B BB BBB A AA AAA LAGGARD AVERAGE FTSE4GOOD Index INCLUDED IN THE GLOBAL RESPONSIBLE INVESTMENT INDEX FTSE4GOOD SINCE 2017 LEADER * ISS uses 1-10 scale. 1 indicates lower governance risk, while 10 indicates higher governance risk versus its index or region. 1 indicates higher E&S disclosure, while 10 indicates lower E&S disclosure. Scores are as of 1 JAN 2021. 23 23#24DATA-DRIVEN ORGANISATION DATA CULTURE Data culture is decision culture 24 24 DATA IN BANKING Use of analytics for the majority of decisions in business processes DATA BEYOND BANKING Use of analytics for data monetisation and to create additional value for customers, the Bank, and the ecosystem#25CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW AND STRATEGY 4Q20 AND FY20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 25 25#264Q20 AND FY20 KEY RESULTS HIGHLIGHTS 26 26 ROAE 4Q20 2020 21.3% 13.0% Loan growth 31 Dec 2020 +18.9% y-o-y +4.1% q-o-q Deposit growth 31 Dec 2020 +39.1% y-o-y +8.0% q-o-q CET 1 capital adequacy 31 Dec 2020 10.4% Minimum requirement - 7.4% Liquidity coverage ratio 31 Dec 2020 138.6% Minimum requirement - 100% Cost of credit risk 4Q20 2020 0.4% 1.8%#27PROFITABILITY WITHIN THE TARGETED LEVEL SOLID QUARTERLY AND FULL YEAR PERFORMANCE Resilient performance notwithstanding the COVID-19 pandemic: The balance sheet has remained strong with better than expected levels of growth Operating income performance has been robust. Net fee and commission income increased by 3.1% q-o-q, despite the second-round lockdown-related reduction in economic activity, with net interest income remaining broadly flat Net interest margin was down to 4.4% in 4Q20, largely reflecting the decline in economic activity and high levels of liquidity Our lending portfolio asset quality has performed well. We have performed individual in-depth review of all of our SME and corporate borrowers, and remain adequately provided for our overall expected credit losses relating to the COVID-19 pandemic Costs remained well-managed with a 2.2% y-o-y reduction in operating expenses in 4Q20 Capital ratios have remained robust and comfortably above the minimum regulatory requirements Delivering superior levels of profitability TRACK RECORD OF STRONG PROFITABILITY 20% 29.9% 26.0% 26.1% 21.8% 21.3% 13.0% 4Q19 1Q20 2Q20 3Q20 4Q20 2019* 2020 -18.6% * 2019 ROAE adjusted for terminations costs of former CEO and executive management 27#28STRONG LOAN AND DEPOSIT PORTFOLIO GROWTH O LOAN PORTFOLIO GEL MILLIONS +18.9% 10.2% 14,192 • DEPOSIT PORTFOLIO GEL MILLIONS +39.1% 28.6% 14,020 11,931 9,398 7,741 10,077 8,389 59% 8,134 8,500 61% 6,985 59% 7,078 5,800 62% 6,986 69% 4,773 62% 5,488 67% 4,920 70% 4,946 41% 5,804 41% 5,521 39% 2,969 38% 3,598 38% 2,158 30% 2,646 33% 3,090 31% 2017 2018 2019 2020 2017 2018 2019 2020 Net loans, GEL Net loans, FC ■Client deposits and notes, FC Client deposits and notes, GEL Growth on a constant currency basis 28#29WELL-DIVERSIFIED LOAN BOOK LOAN PORTFOLIO BREAKDOW | DEC-20 Gross Loans by segment Bank of Georgia standalone Total: GEL 13.8bln Retail loans, GEL 8,982 mln, 65.2% CIB loans, GEL 4,803 mln, 34.8% Retail Banking Gross Loans by product Total: GEL 9.Obin Corporate and Investment Banking Gross Loans by sectors Total: GEL 4.8bln Health & Mining & quarrying_ Credit Other 3.8% cards and overdrafts 2.2% General 2.2% social work 2.6% Financial Other 15.8% consumer intermediation Manufacturing 22.7% loans 19.2% Mortgage loans 41.6% 1.1% Electricity, gas &. water supply Construction 1.6% Trade 9.2% Micro and 5.2% Hospitality Real estate SME loans 34.8% Transport & Communication. 4.0% 13.1% 17.1% Service 3.8% 29#30LOAN PORTFOLIO BREAKDOWN 30 RETAIL BANKING | DEC-20 JSC Bank of Georgia standalone GEL MILLIONS CORPORATE AND INVESTMENT BANKING | DEC-20 JSC Bank of Georgia standalone GEL MILLIONS 2.7% 8,982 247 3.2% 2.9% 4,803 140 1.6% 963 16 4,969 160 4,013 87 2.2% 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 124 3,840 3.2% Loan portfolio Allowance for ECL FC GEL ECL rate RB Loan portfolio 4,969 643 % of total RB loan portfolio 55.3% Consumer CB & WM Loan % of total CIB Mortgages SME & Micro loans* portfolio loan portfolio 1,699 1,816 7.2% 493 88 1,454 62 963 20.0% 1,962 40.9% 3,370 37.5% 1,541 218 1,610 1,878 39.1% 8,982 100.0% 3,734 2,122 3,126 4,803 100.0%#31STRONG COMPETITIVE POSITION • MARKET SHARE - GROSS LOANS 38.2% 38.8% 39.5% 39.0% • MARKET SHARE - CUSTOMER DEPOSITS 39.8% 41.2% 39.0% 38.9% 32.4% 33.5% 34.9% 34.9% 33.9% 36.3% 37.2% 33.9% Dec-17 Dec-18 Dec-19 Dec-20 Dec-17 Dec-18 Dec-19 Dec-20 BOG Peer bank BOG Peer bank Top two banks hold more than 70% of market share MARKET SHARE-DEPOSITS OF INDIVIDUALS Focus on profitability, while maintaining solid market share Increase in market share in deposits of individuals underlines the strength of Bank of Georgia's franchise Market data based on standalone accounts as published by the National Bank of Georgia 41.3% 41.2% 40.3% 40.3% 39.5% 34.6% 36.9% 37.9% Dec-17 Dec-18 Dec-19 Dec-20 BOG -Peer bank 31#32STRONG UNDERLYING PERFORMANCE AMID COVID-19 IMPACT • OPERATING INCOME GEL MILLIONS 1,110 -3.0% +8.5% -1.8% • NET NON-INTEREST INCOME GEL MILLIONS 1,091 -3.7% 321 29% 313 29% +35.7% -2.4% 321 313 21 48 119 99 309 277 300 789 71% 778 71% 102 98 73 102 33% 73 26% 98 33% 207 67% 204 74% 202 67% 18 8 25 37 19 47 46 827 180 166 | 26 47 4Q19 3Q20 4Q20 2019 2020 4Q19 3Q20 4Q20 2019 2020 ■Net fee and commission income Net foreign currency gain ■Net interest income ■Net non-interest income ■Net other income 32#33NET INTEREST MARGIN NET INTEREST MARGIN 5.4% 5.6% 4.8% 4.4% 4.6% 33 ⚫ LOAN YIELD, COST OF FUNDS, COST OF DEPOSITS 11.4% 10.7% 10.4% I 11.7% 10.5% 4.7% 4.7% 4.6% 4.6% 4.7% 3.8% 3.8% 3.6% 3.0% 3.0% 4Q19 3Q20 4Q20 2019 2020 4Q19 3Q20 4Q20 2019 2020 Loan yield Cost of funds Cost of client deposits and notes NIM DOWN IN 2020 DUE TO Reduction in consumer lending activity on the back of the COVID-19 pandemic High levels of liquidity maintained for risk mitigation purposes on the back of uncertainty ■ Still ongoing loan portfolio mix change NIM OUTLOOK Broadly stable margin going forward#34FOCUS ON EFFICIENCY AND STRINGENT COST CONTROL COST TO INCOME RATIO I 39.3% 39.6% 39.7% 37.1% 37.8% OPERATING EXPENSES GEL MILLIONS -2.2% +3.0% 433 420 5 4 78 83 +15.8% 106 106 122 103 119 1 4Q19 3Q20 4Q20 2019* 2020 1 2 24 21 231 240 19 35 32 24 62 58 64 c.35% Medium-term guidance 4Q19 3Q20 4Q20 2019* 2020 Other operating expenses Administrative expenses ■Depreciation, amortisation and impairment Salaries and other employee benefits * 2019 results are adjusted for termination costs of former executive management. See details on one-off costs on page 84 34#35RESILIENT LOAN PORTFOLIO QUALITY • COST OF CREDIT RISK RATIO 2.7% 2.2% 1.6% INCREASE IN 2020 DUE TO COVID-19 0.9% 1.8% LOAN PORTFOLIO QUALITY NPL coverage 86.7% 92.7% 90.5% 80.9% 76.3% NPL coverage adjusted for collateral value 132.1% 130.6% 129.9% 139.6% 128.8% 4.2% 3.8% 3.7% 3.3% 2.1% 546 295 301 318 253 2016 2017 2018 2019 2020 Dec-16 Dec-17 Dec-18 Cost of credit risk ratio normalised Cost of credit risk ratio INPLS, GEL millions * Normalised cost of credit risk - 1.2% for RB and 0.8% for CIB Dec-19 Dec-20 NPLs to gross loans 35#36STRONG LIQUIDITY AND FUNDING POSITIONS • LIQUIDITY COVERAGE AND NET STABLE FUNDING RATIOS JSC Bank of Georgia standalone (Basel III liquidity) • NET LOANS TO CUSTOMER FUNDS AND DFIs 133.6% 136.7% 138.6% 118.4% 132.5% 137.5% 115.5% 125.5% 120.1% 109.4% 100.3% 103.2% 99.6% 101.2% 89.0% 89.4% Dec-17 Dec-18 ■Liquidiy coverage ratio Dec-19 Dec-20 Dec-17 Net stable funding ratio 2018-2020 ratios are calculated in line with the NBG guidelines Dec-18 Dec-19 Net loans to customer funds Net loans to customer funds and DFIs " Liquidity and funding positions remain strong, following repayment of GEL 500 million local currency bonds in June 2020 Excess liquidity maintained for risk mitigation purposes, on the back of uncertainty as a result of the COVID-19 crisis Strong support from International Financial Institutions Dec-20 36#37WELL-ESTABLISHED FUNDING STRUCTURE | DEC-20 • INTEREST BEARING LIABILITIES Interest Bearing Liabilities GEL 18.9bln Borrowings 12.1% Debt securities issued 8.4% Other amounts owed to Cl 5.5% Client deposits & notes 74.0% Current accounts Time deposits, 57.2% & demand deposits, 42.8% BORROWED FUNDS MATURITY BREAKDOWN* US$ MILLIONS • WELL DIVERSIFIED INTERNATIONAL BORROWINGS European Bank for Reconstruction and Development ADB IFC LEFSE FMO EUROPEAN FUND FOR SOUTHEAST EUROPE Black Sea Trade & Finance for Development Development Other debt securities, GEL 243mln, 6.3% Others borrowings, GEL 442min, 11.4% DFIs, Eurobonds, GEL 1,342min, 34.6% GEL 1,849mln, 47.7% Bank STRONG SUPPORT FROM IFIS 430 2.6% 1.0% 6.4% 2.0% 1.9% 0.1% 0.0% 339 0.7% 133 0.0% 0.0% 176 90 127 65 91 48 43 9 T 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 c.GEL 635 million undrawn long-term loan facilities attracted from DFIs at 31 December 2020 with up to seven years of maturity Liquidity management: US$19.5 million Eurobonds due 2023 repurchased since July 2020 Senior Loans I Subordinated Loans Eurobonds * converted at GEL/US$ exchange rate of 3.2766 at 31 December 2020 % of Total assets 37#38STRONG CAPITAL ADEQUACY POSITION O NBG MEASURES AS A RESPONSE TO COVID-19 NBG's COVID-19 Supervisory Plan effective since March 2020: B " Combined buffer - the conservation buffer requirement of 2.5% of risk-weighted assets 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 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 banks are allowed to partially or fully use the Pillar 2 and conservation buffers, banks are restricted to make capital distribution in any form; General loan loss provisioning relating to COVID-19. The Bank has recorded c.GEL 400 million general provision (approximately 3.3% of the Bank's lending portfolio subject to provision under the local regulatory accounting standards) under the Bank's local regulatory accounting basis in March 2020, which is used for calculation of the Bank's capital ratios, reflecting the NBG's expectations of estimated credit losses on the Bank's lending book for the whole economic cycle. CAPITAL ADEQUACY RATIOS 18.1% 17.4% 17.3% 17.6% 15.3% 13.6% 12.4% 10.6% 12.0% 12.0% 11.5% 9.9% 9.9% 10.4% 8.3% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 CET1 Capital Adequacy Ratio Total Capital Adequacy Ratio Tier I Capital Adequacy Ratio MINIMUM REGULATORY REQUIREMENTS 17.1% 12.2% 10.1% 13.3% 13.3% 13.3% 13.8% 9.2% 8.7% 8.7% 8.7% 7.4% 6.9% 6.9% 6.9% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 ■CET1 Capital Adequacy Ratio ■Total Capital Adequacy Ratio Tier I Capital Adequacy Ratio 38#39STRONG INTERNAL CAPITAL GENERATION O CAPITAL RATIOS EVOLUTION DURING 2020 2020 NBG Capital ratios DEC-19 profit Business growth (excl. NBG general general provision - COVID-19 New Tier 2 Capital GEL Devaluation facility impact ratios Potential impact of additional DEC-20 10% GEL provision) impact devaluation CET1 capital adequacy ratio 11.5% -1.1% 3.5% -2.6% -0.9% 10.4% -0.7% Tier I capital adequacy ratio 13.6% -1.4% 3.5% -2.5% -0.8% 12.4% -0.6% Total capital adequacy ratio 18.1% -1.8% 3.5% -2.4% -0.7% 0.9% 17.6% -0.5% Strong internal capital generation ☐ NBG general provisioning: c.GEL 400 million general provision created for the full economic cycle in 1Q20 in relation to the COVID-19 impact, resulting in the decline of capital ratios during 2020 Tier 2 subordinated facility: in April 2020, the Bank drew down a $55 million second tranche of the Tier 2 capital instrument initially arranged in December 2019 39#40STRONG CAPITAL ADEQUACY POSITION • BOG EQUITY VS. CET1 REG. CAPITAL | DEC-20 GEL MILLIONS RISK WEIGHTED ASSETS OGEL MILLIONS +5.8% % of RWAs 10.4% 2.5% 0.9% 1.7% 273 2,479 16,040 146 399 14,641 15,162 13,868 14,099 1,662 3.4% NBG CET1 Capital Loan provisioning provisioning methodology methodology. difference IP Other deductions* BOG Equity (IFRS) Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 difference * Revaluation reserve, investments in non-financial subsidiaries and intangible assets Existing additional capital buffers (within c.3.4% of risk-weighted assets) reflecting differences in provisioning methodology between the NBG and IFRS 9 NBG plans to transition to IFRS-based financial reporting during 2021 2022 40#41CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW AND STRATEGY 4Q20 AND FY20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 41#42GEORGIA AT A GLANCE GENERAL FACTS ■ ■ ■ Area: 69,700 sq. km Population (2019): 3.7 million Life expectancy: 74 years Official language: Georgian Literacy: 100% Hamburg Herdam Dusseldorf Leipzig o GERMANY Penza POLAND BELARUS Orel Frankfurt UKRAINE CZECH REP SLOVAKIA Munich AUSTRIA MOLDOVA LIECHTENSTEIN WICZERLAND HUNGARY SLOVENIA Milan Turin ROMANIA BOSNIA Genoa CROATIA HERZEG MONA ce SAN MARNO YUGOSLAVIA BULGARIA Black Sea CAN ALANIA MACEDONIA Nop ICALY Salon Polerr KAZA oElista Nalčik Grozny Machat GEORGIA ARMENIA AZERBAJA TURKEY AZER Capital: Tbilisi Currency (code): Lari (GEL) • ECONOMY Nominal GDP (Geostat) 2020E: GEL 49.2bln (US$ 15.8bln) Real GDP growth rate 2016-2020E: 2.9%, 4.8%, 4.8%, 5.0%, -6.1% Real GDP 2011-2019 annual average growth rate: 4.7% GDP per capita 2020E (PPP): US$ 14,615 Annual inflation (EOP) 2020: 2.4% External public debt to GDP 2020E: 47.7% SOVEREIGN CREDIT RATINGS Outlook Agency Rating Affirmed MOODY'S Ba2 Stable August 2020 Fitch Ratings BB Negative February 2021 S&P Global BB Stable August 2020 42#43GEORGIA'S KEY ECONOMIC DRIVERS Liberal economic policy Regional logistics and tourism hub Strong FDI 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% 43 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 halted in 2020 due to pandemic, gradual recovery expected from the second half of 2021 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$ 719mln (6.2% of GDP) in 9M20 FDI averaged 8.7% 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 Support from international community " Electricity transit hub potential Political environment 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 2020, Russia accounted for 13.2% of Georgia's exports and 11.1% of imports; just 3.7% of cumulative FDI over 2003-9M20#44GROWTH ORIENTED REFORMS • EASE OF DOING BUSINESS | 2020 Lithuania Estonia Latvia Germany Kazakhstan Russia Turkey Azerbaijan Poland Czech Rep. Armenia Ukraine New Zealand Singapore 1 2 Denmark 4 USA Georgia UK Norway Source: WB-IFC Doing Business Report UK 7 Estonia Georgia 10 ECONOMIC FREEDOM INDEX | 2020 Source: Heritage Foundation 12 6189 #1 in Europe and Central Asia Region Lithuania 16 Top 6 in Europe region out USA 17 Czech Rep. of 46 countries 23 Latvia 11 18 19 22 25 28 33 34 40 41 47 32 Armenia Bulgaria Romania Kazakhstan Azerbaijan Poland Hungary France Turkey Italy Russia 34 36 38 39 44 46 62 64 71 74 64 Ukraine 94 134 3% 7% 7% 9% 12% 15% 16% 17% • GLOBAL CORRUPTION BAROMETER | 2017 Germany Georgia Poland Czech Rep. Slovakia Latvia Montenegro Bulgaria Turkey Lithuania Armenia Bosnia & Herz. Romania Kazakhstan Russia Ukraine Azerbaijan Moldova Georgia is on a par with EU member states BUSINESS BRIBERY RISK | 2020 Source: Transparency International Norway 2 Sweden Source: Trace International 4 % admitting having paid a bribe last year UK Estonia 9 Singapore 13 15 33 USA 23 France 24 Lithuania 27 Georgia 28 18% Latvia 34 24% Czech rep. 38 24% Poland 41 Armenia 27% 43 29% Bulgaria 69 Ukraine 29% 98 Turkey 114 34% 38% 38% 42% Kazakhstan Russia Azerbaijan Uzbekistan 123 127 136 150 44#451.2% 0.1% Ukraine Azerbaijan 1.7% DIVERSIFIED ECONOMY GROSS DOMESTIC PRODUCT Source: Geostat, Galt & Taggart other 20 12% 15.3% Accom. & food 7.4% 15 6.4% 9% 3.4% 4.4% 4.8% 4.8% 5.0% 10 3.6% 3.0% 2.9% 6% Healthcare 5 3% 4.7% о 0% Education -5 -3% 4.8% -10 -6% Financial & -6.1% -15 -9% insurance 4.9% Nominal GDP, US$ bn ―― Real GDP growth, % COMPARATIVE REAL GDP GROWTH RATES, % (2011-2019 AVERAGE) Source: IMF, Geostat 5.6% 4.7% 4.7% 3.3% 3.6% 3.7% 3.9% 3.9% 4.5% 2.4% 2.5% Russia Czech Rep. Bulgaria Latvia Poland Lithuania Estonia Romania Moldova Georgia Armenia Turkey GDP PER CAPITA DIVERSIFIED NOMINAL GDP STRUCTURE | 9M20 Transport & storage 5.9% Public administration Construction 7.5% 8.1% Agriculture 8.9% Trade 14.0% Real estate 12.0% Manufacturing 10.4% Source: IMF, Geostat, Galt &Taggart 15,634 14,584 11,583 12,100 13,596 12,855 14,615 10,610 9,799 7,541 8,322 3,233 4,023 4,422 4,624 4,739 4,013 4,062 4,359 4,722 4,763 4,252 Nominal GDP per capita, US$ ■GDP per capita, PPP Source: Geostat 45#46CAPITAL 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 CONTRIBUTIONS OF CAPITAL, LABOR, AND TFP TO GROWTH DURING PERIODS Total factor productivity. 1.8% Labor force 0.7% 46 Source: Geostat, Galt &Taggart 10% Source: Geostat, Galt &Taggart 8% 6% 4% Capital stock 2.2% 2% 0% -2% 2004-2007 2008-2009 2010-2014 2015-2019 ■ TFP Labor force ■Capital stock REAL GDP GROWTH PROJECTION, 2020-2021 Source: IMF, statistics offices, Galt & Taggart 2.5% 2.5% 3.0% 3.4% 4.1% 4.1% 4.1% 4.5% 4.6% 4.6% 5.0% 5.0% 5.1% 5.2% REAL GDP GROWTH: GEORGIA, MIDDLE EAST AND CENTRAL ASIA, EMERGING & DEVELOPING EU Source: IMF, WEO, October 2020 10% Georgia 8% Middle East & Central Asia 6% 4% 2% 0.6% -1.8% -4.3% -3.6% -3.1% -4.0% -4.5% -5.2% -3.6% 0% -4.8% -6.1% -6.5% -6.0% -2% Emerging & Developing EU -7.5% Armenia Azerbaijan Ukraine Russia Bulgaria ■Lithuania ■2020E ■2021F Moldova Estonia Poland Romania Turkey Georgia Czech Rep. Latvia -4% -6% 2013 2014 2015 2016 2017 2018 2019 2020F 2021F 2020F 2023F 2024F 2025F#47FURTHER JOB CREATION IS ACHIEVABLE • UNEMPLOYMENT RATE DOWN 1.6PPTS Y/Y TO 17.6% IN 2019 HIRED WORKERS ON THE RISE Source: Geostat Source: Geostat 1,400 27.2% 27.2% 26.7% 26.4% Note: Labor force statistics presented according to the ILO's new standards 1,200 30% 23.0% 1,000 898 21.9% 21.7% 21.6% 25% 19.2% 1,300 17.6% 800 20% 600 1,200 15% 1,100 1,168 1,183 1,212 1,198 1,255 1,308 1,295 1,287 1,296 1,296 400 10% 398 200 5% о 1,000 0% Employed, 000' persons 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -Unemployment rate, % 2010 2011 2012 2013 2014 2015 Self-employed, 000' persons 2016 2017 2018 2019 - Hired, 000' persons EMPLOYMENT BY SECTOR, 000' PERSONS EMPLOYMENT: PUBLIC AND PRIVETE SECTORS, 000' PERSONS Source: Geostat Source: Geostat 1,400 1,000 1,200 153.8 153.9 147.0 800 1,000 289.5 253.9 247.4 800 600 569 582 585 604 598 408 443 472 487 537 600 400 400 843.6 888.5 901.4 200 200 302 281 287 252 259 287 272 284 300 300 о 0 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Services (incl. construction) Agriculture Industry ■Public sector (hired workers) Non-public sector (hired workers) 47#482010 2011 2012 2013 2014 2015 2010 2011 2012 PUBLIC DEBT • FISCAL DEFICIT 0% -2.0% -1.9% -2.4% -2.7% -2% -1.7% -2.6% -4% -2.3% -2.8% -6% -5.3% -8% -10% -12% 2013 - Fiscal deficit (IMF program definition) Note: Deficit calculated as net lending / borrowing minus budget lending 2017 2018 -9.1% 2019 2020F 2021F -2.1% -7.6% 2022F 2023F 2024F • PUBLIC DEBT AS % OF GDP Source: MoF, 2021 budget 180% 70% 60% 50% 40% 30% 20% 10% 70% Public debt/GDP capped at 60% 150% 60% 50% 120% 40% 90% 30% 60% 20% 30% 10% 0% ―― Total public debt to GDP, % ―― External public debt to GDP, % 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F Russia Kazakh... Uzbekis... Moldova Czech. Turkey Source: MoF, 2021 budget • BREAKDOWN OF THE PUBLIC DEBT -3.1% -2.6% -4.4% Multilateral 56% Domestic 21% External 79% Bilateral 17% Eurobond 6% GROSS GOVERNMENT DEBT/GDP | 2019 Latvia Romania Lithuania Belarus Georgia Poland Armenia | 59.9% Slovakia Ukraine Hungary Slovenia Croatia Monten. Canada Spain Singap Italy Source: MoF, as of October 2020 External public debt portfolio weighted average interest rate 1.4% Contractual maturity 21 years Source: IMF, MoF 48#49-2% Turkey 3% Armenia Georgia 8% Belarus 18% 2018 13% ■2019E BUDGET EXPENDITURES Expenditures (current + capital), GEL mn Expenditures (current + capital) as % of GDP GOVERNMENT SOCIAL EXPENDITURE AS % OF GDP Source: IMF Lithuania Bulgaria Croatia Poland 2019 2020F 2021F INVESTING IN INFRASTRUCTURE AND SPENDING LOW ON SOCIAL 49 Source: MoF, 2021 budget Source: MoF, 2021 budget 20,000 50% 100% 76.0% 80.0% 81.7% 78.1% 80.0% 34.4% 72.5% 73.4% 74.2% 73.1% 72.2% 75.8% 75.6% 32.3% 33.0% 40% 80% 15,000 29.4% 29.4% 27.6% 28.4% 28.6%* 29.4% 28.2%27.7% 29.4% 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% 24.2% 24.4% 5,000 10% 20% о 0% 0% 0% Turkey 4% 2% Armenia Croatia Lithuania 8% ■2018 6% Russia Poland Bulgaria 2019E 2010 2011 2012 2013 EXPENDITURE BREAKDOWN: CURRENT VS. CAPITAL Current expenditures ―― Capital expenditures and net lending GOVERNMENT CAPITAL EXPENDITURE AS % OF GDP Source: IMF Estonia Hungary Belarus Georgia 2018 2019 2020F 2021F#50DIVERSIFIED FOREIGN TRADE 50 IMPORTS OF GOODS AND SERVICES • EXPORTS OF GOODS AND SERVICES Source: NBG BOP statistics Source: NBG - BOP statistics 12 11.1 10.8 10.1 10.0 9.5 9.3 8.9 10 9.2 9.4 8.7 8.5 1.0 2.2 2.4 1.7 7.6 0.8 8.0 8.0 7.2 7.5 1.4 1.6 2.0 7.0 8 1.7 1.2 64 5.3 54 1.3 1.7 6.0 6.1 6.2 0.5 1.1 0.9 6.1 6.0 5.2 3.6 3.9 0.9 0.4 0.3 3.1 1.1 4.0 0.7 1.0 3.1 3.1 2.6 2.5 7.7 8.3 8.6 8.7 4.0 0.5 2.5 7.7 6.3 6.7 7.0 6.8 7.4 2.5 1.9 5.1 2 4.3 2.0 2.6 3.0 3.0 3.1 3.3 4.0 4.5 4.6 1.6 2.0 о 0.0 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2008 2009 2010 2011 2012 2013 ■Goods imports, US$ bn 2014 2015 2016 2017 2018 ■Services imports, US$ bn IMPORTS BY COUNTRY, 2020 Source: Geostat ■Services exports, US$ bn Goods exports, Geo-originated, US$ bn Re-exports, US$ bn EXPORTS BY COUNTRY, 2020 OIL IMPORTS Source: Geostat Source: Geostat Oil imports down 34.2% y/y in 2020 1,000 800 600 400 China 200 14.3% о -200 -400 Ukraine 4.9% Kazakhstan 1.4% Other 15.4% EU 24.0% Uzbekistan 2.2% Other 14.1% EU 21.5% Armenia 5.3% USA 2.4% Azerbaijan 6.2% Turkey 17.6% Armenia 5.6% USA 6.8% Turkey 5.7% Russia 13.2% Azerbaijan 13.2% Ukraine China 8.9% Russia 11.1% 6.5% Oil imports, US$ mn Oil imports, % change, y/y 100% 80% 60% 40% 20% 0% -20% -40%#51DIVERSIFIED SOURCES OF CAPITAL FOREIGN DIRECT INVESTMENTS FDI down 24.0% y/y in 9M20 Source: Geostat 2.5 2.0 25% 3.5 TOURISM REVENUES Tourism revenues down 83.4% y/y in 2020, due to COVID pandemic Source: NBG, Geostat 18.3% 18.7% 25% 3.0 20% 16.6% 20% 2.5 13.9% 1.5 11.6% 12.2% 10.4% 10.9% 15% 12.5% 2.0 15% 10.0% 10.1% 8.6% 1.0 7.1% 7.5% 7.4% 7.5% 6.4% 6.0% 10% 1.5 5.4% 6.3% 10% 1.0 0.5 0.0 5% 5% 0.5 0% 0.0 0% 2018 2019 FDI, US$ bn -FDI as % of GDP • REMITTANCES - STEADY SOURCE OF EXTERNAL Tourism revenues, US$ bn FUNDING Source: NBG, Geostat Remittances up by 8.8% y/y in 2020 11.9% 7% 2.1 9.9% 12% 5.8% 1.8 8.6% 8.4% 8.6% 8.1% 8.2% 8.5% 9.0% 6% 5.4% 1.5 7.2% 7.6% 10% 1.9 5% 1.7 8% 1.6 1.2 1.5 1.4 4% 1.3 1.4 1.3 6% 0.9 1.2 3% 1.1 1.1 4% 0.6 2% 0.3 2% 1% 0.0 0% 0% Remittances, US$ bn Remittances as % of GDP Tourism revenues as % of GDP PUBLIC EXTERNAL BORROWING FOR CAPEX, % OF GDP Source: MOF, Geostat 3.2% 3.3% 3.1% 3.0% 3.1% 2.8% 2.5% 2.0% 51#52CURRENT ACCOUNT DEFICIT SUPPORTED BY FDI CURRENT ACCOUNT BALANCE (% OF GDP) 30% Goods, net Services, net Income, net Transfers, net --CA deficit net FDI Source: NBG, Geostat CA deficit at 12.0% of GDP in 9M20 20% 10.5% 6.0% 6.5% 10% 4.6% 5.3% 8.1% 9.5% 8.2% 5.5% 5.9% 0% -10% -5.6% -8.0% -6.8% -5.5% -9.8% -10.2% -20% -12.2% -11.4% -11.8% -12.5% -30% -40% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 FDI AND CAPITAL GOODS IMPORT BUILDING INTERNATIONAL RESERVES, US$ BN Source: Geostat Source: NBG 16% 4.5 11.6% 12.2% 3.9 4.0 10.9% 12% 3.3 3.5 3.5 10.4% 7.1% 7.5% 8.5% 3.0 2.8 2.9 2.8 2.7 3.0 2.8 8.1% 8.0% 2.5 8% 6.5% 6.8% 2.5 2.1 2.3 7.2% 6.4% 7.2% 8.7% 2.0 7.9% 7.4% 7.5% 1.4 1.5 7.6% 4% 6.0% 1.5 6.2% 5.7% 1.0 0.5 0% 0.0 ―― FDI to GDP, % -Capital goods imports to GDP, % 2011 52#538% 7% 6% 5% 4% 3% 2% 1% 0% -1% INFLATION TARGETING SINCE 2009 ANNUAL INFLATION Jan-14 Apr-14 Aug-14 Mar-15 Headline inflation Jan-1 Core (non-food, non-energy, non-tobacco) MONTHLY INFLATION Source: Geostat Source: Geostat 8% 3% 3% 5.7% 6% 2% 2% 1.1% 4% 2.8% 1% 2% 0% 0% -1% мама 1% 0% -1% -2% -2% -2% • WORLD COMMODITY PRICES Source: World Bank Note: Jan2014=100 8% Dec-14 Mar-15 Jan-14 Apr-14 Aug-14 Jul-15 Nov-15 Feb-16 Jun-16 Jun-16 Oct-16 Oct-16 Jan-17 Jan-17 May-17 Sep-17 Sep-17 Dec-17 Apr-16 Apr-18 Aug-18 Aug-16 Nov-18 Mar-19 Jul-19 Oct-19 Feb-20 Jun-20 Sep-20 Jan-21 。៩៦ ៖ ៖ ៩៩ 20 60 40 80 120 • Energy Non-energy 100 120 100 6% 80 4% 60 2% 40 20 0% -2% Jan-14 Apr-14 Aug-14 Dec-14 Mar-15 Jul-15 Nov-15 Feb-16 Jun-1 Oct-16 AVERAGE INFLATION Jan-14 Apr-14 Aug-14 Dec-14 Mar-15 Jul-15 Nov-15 Feb-16 Jun-16 Oct-16 Jan-17 Jan- May- May-17 May-17 Sep-17 Sep- Sep-17 Dec-17 Dec-17 Apr-1 Apr-18 Apr-18 Aug-18 Aug- Aug-18 Nov- Nov-18 ΟΙ - ΛΟΝ Mar-19 Mar-19 Jul-1 Oct-19 Feb-20 Jun-20 Sep-20 Jan-21 -2% 8% 6% 4.9% 4% 2% 0% Source: Geostat Jul-19 301-19 Oct-19 Oct-18 Feb-20 Feb-20 Jun-20 Sep-20 Jan-21 53#544% 6% 8% 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 INTERNATIONAL RESERVES International reserves up 11.5% y/y to US$ 3.9bn in 2020 Jan-14 Apr-14 Aug-14 Dec-14 Apr-15 Apr-15 Jul-15 INTERNATIONAL RESERVES AT ADECUATE LEVEL • MONETARY POLICY RATE Gross international reserves, US$ mn Nov-15 Mar-1 Mar-16 Jul-16 Nov-16 Feb-17 Jun-17 Oct-17 Feb-18 May-18 Sep-18 Jan-19 May-19 Sep-19 Dec-19 Apr-20 Aug-20 Dec-20 Source: NBG NBG cut policy rate by 100bps to 8.0% in 2020, 10% keeping rate unchanged since August 2020 Jan-16 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20 Jul-20 Oct-20 Jan-21 75% 10% 70% 8.0% 8% 65% 60% 6% 55% 4% 50% Jan-14 Apr-14 Aug-14 Nov-14 Source: NBG CENTRAL BANK'S INTERVENTIONS Source: NBG 250220 NBG sold US$ 916mn in 2020 200 174 200 US$ sale 100 120 120 150 100 40 60 100 60 40 27 40 40 $800 80 50 20 32.8 20 50 -15 -85 о -50 -20 -20 -40 -20 -30 -40 -100 US$ purchase -63 -30 08- -70 -150 30 -25 -65 -120 -140 -200 Jan-14 Apr-14 Aug-14 Dec-14 Mar-15 Jul-15 Nov-15 Feb-16 Jun-16 Jun-16 Oct-16 Jan-17 May-17 Sep-17 Dec-17 Apr-18 Aug-18 Mar-19 ģ Nov-18 -101 Jul-19 Oct-19 Feb-20 Jun-20 Sep-20 Jan-21 INBG net interventions, US$ mn LOAN AND DEPOSIT DOLLARISATION Mar-15 Mar-15 Jul-15 Jul-15 Oct-15 Oct-15 Feb-16 May-16 May-16 Sep-16 Loan dollarization Jan-17 Apr-17 Aug-17 Source: NBG 75% 70% 61.4% 65% 60% Dec-17 Mar-18 Jul-18 Oct-18 Feb-19 Jun-19 Sep-19 Jan-20 Apr-20 Aug-20 Dec-20 Deposit dollarization 55.3% 55% 50% 54#5540% 30% 20% 10% 0% -10% Jan-14 Apr-14 Aug-14 M2, % change, y/y (LHS) 2012 2013 2014 FX RESERVES FLOATING EXCHANGE RATE - POLICY PRIORITY Source: NBG 5.0 1.42 130 1.30 1.36 1.6 1.31 1.25 1.23 1.24 1.27 ON WA 1.16 1.29 1.4 120 4.0 1.03 1.2 110 3.9 3.0 3.5 1.0 100 3.3 2.8 2.9 3.0 2.0 2.8 2.7 2.8 2.5 2.3 1.0 0.0 3 0.8 90 0.6 80 0.4 0.2 70 0.0 Official FX reserves, US$ bn -M2 multiplier • M2 AND ANNUAL INFLATION Nov-14 Mar-15 Jul-15 Oct-15 Feb-16 May-16 Sep-16 Jan-17 Apr-17 Aug-17 Dec-17 Mar-18 Jul-18 Oct-18 Feb-19 Jun-19 Sep-19 Annual inflation, eop (RHS) Jan-20 Apr-20 Aug-20 Dec-20 2018 2019 2020 Jan-14 Apr-14 Aug-14 M2 AND USD/GEL Source: NBG 8% 35% 30% 6% 25% 20% 4% 15% 2% 10% 5% 0% 0% -5% -2% -10% Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jul-15 Oct-15 Feb-16 May-16 Sep-16 Jan-17 M2, % change, y/y (LHS) Apr-17 Aug-17 Dec-17 Nominal effective exchange rate Mar-18 Jul-18 Oct-18 Feb-19 Jun-19 Sep-19 - GEL/USD, % change, y/y (RHS) Jan-20 Apr-20 Aug-20 Dec-20 NOMINAL AND REAL EFFECTIVE EXCHANGE RATE (JAN2014=100) Aug-16 Nov-16 Mar-17 Jun-17 Oct-17 Jan-18 May-18 Aug-18 Dec-18 Mar-19 Jul-19 Oct-19 Real effective exchange rate Source: NBG 130 120 -5.6% y/y 110 100 -7.4% y/y 80 70 Feb-20 May-20 Sep-20 Dec-20 Source: NBG 40% 30% 20% 10% 0% -10% 06 55#56GROWING AND WELL-CAPITALISED BANKING SECTOR • SUMMARY Prudent regulation and oversight ensuring financial stability Strong resilience towards both domestic and external shocks without single bank going bankrupt No nationalisation of the banks and no government ownership since 1994 Resilience to different shocks to the economy, room for healthy credit growth Source: National Bank of Georgia, Geostat • BANKING SECTOR ASSETS, LOANS AND DEPOSITS 60 50 40 30 20 10 O 24.7% CAGR Source: NBG 56.9 38.2 34.6 Assets, GEL bn ■Loans, GEL bn ■Deposits, GEL bn NON-PERFORMING LOANS, LATEST 2020 BANKING SECTOR LOANS TO GDP, 2019 Source: World Bank Bulgaria 49.7% Czech Rep. 50.6% Lithuania Hungary Georgia Poland 50.8% Czech Rep. Russia Bosnia & Herz. Croatia Armenia 52.4% 54.2% Latvia Turkey Poland 54.4% 57.1% Estonia 59.0% Turkey 61.8% Slovakia 62.9% Georgia 64.8% Israel 65.4% EU 85.0% Romania Belarus Portugal Armenia Bulgaria Bosnia & Herz. Croatia Kazakhstan Russia Source: IMF, NBG 1.0% 1.2% 2.3% 2.8% 3.5% 3.9% 4.0% 4.1% 4.9% 5.5% 5.7% 6.3% 6.7% 7.0% 8.4% 9.3% 56#57180 160 140 120 100 80 60 40 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 800Є 4Q08 1Q09 2Q09 3Q09 60077 1Q10 2Q10 • REAL ESTATE PRICE INDEX 3Q10 4Q10 1Q11 Inflation adjusted real estate price index (2010-100, GEL) Real wage index (2010-100, GEL) CREDIT GROWTH DYNAMICS BANKING SECTOR CORPORATE & RETAIL LOANS TO GDP MORTGAGE LOANS Source: NBG, Geostat Source: NBG 119,300 70% Retail loans to GDP 8,624 106,370 60% 92,980 Corporate loans to GDP 39% 29,600 7,048 50% 6,031 72,140 31,720 33% 33% 5,062 35,990 40% 27% 30% 4,315 23% 4,453 32,680 30% 20% 17% 4,604 89,700 11% 12% 13% 74,650 20% 3,350 38% 56,990 31% 2,649 39,470 10% 17% 17% 18% 19% 21% 26% 24% 25% 27% 2,595 966 1,427 0% 2017 2018 2019 2020 2017 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ■FX-denominated mortgage loans, GEL mn ■GEL-denominated mortgage loans, GEL mn * Total mortgage loans, GEL mn 2018 Number of mortgage loans in FX Number of mortgage loans in GEL Total number of mortgage loans. 2019 2020 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1014 1Q14 2Q14 3Q14 3Q14 4Q14 4x14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 1017 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Source: NBG, Geostat 57#58Georgia Azerbaijan Armenia 7.4% 7.5% 4.9% 5.0% 3.7% 5% 2.8% 2.4% 0% Euro GEORGIA VS REGION: FX, INFLATION, POLICY RATE • INFLATION: GEORGIA AND PEERS Source: Statistic Offices 20% End-2019 End-2020 15% 10% 20% 14.6% 15% Russia Ukraine Belarus Kazakhstan Turkey 0% Russia 10% 5% Armenia Azerbaijan Moldova 8.7% 0.1% 0.0% Armenia CURRENCY WEAKENING VS. US$ Source: Bloomberg Note: +/-appreciation/depreciation period 1-January - 31-December, 2020 Kazakhstan -9.1% -10.1% -14.3% -19.0% -19.7% Georgia Ukraine End-2019 End-2020 Russia Belarus -22.9% -23.4% Turkey MONETARY POLICY RATE: GEORGIA AND PEERS Source: Central Banks 4.3% 5.3% 6.0% 6.3% 7.8% Ukraine Azerbaijan Belarus Georgia Kazakhstan Turkey 9.0% 8.0% 17.0% 58#591Q16 2Q16 3Q16 4Q16 • UNEMPLOYMENT RATE 25% 21.7% 18.4% 20% 15% 10% 5% 0% 1Q18 2Q18 3Q18 4Q18 1Q19 18.3% 18.6% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 RECENT TREND - REAL GDP AND ITS COMPONENTS 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 REAL GDP GROWTH BY QUARTER, % CHANGE YOY CONTRIBUTION TO REAL GDP GROWTH Source: Geostat Source: Geostat, Galt & Taggart 12% 12% 6.8% 7.2% 8% 4.5% 4.4% 6.0% 5.2% 5.4% 4.6% 4% 2.2% 2.3% 4.5% 3.4% 4.1% 3.6% 4.8% 3.2% 0% 1.8% -4% -8% -12% -13.2% -16% 9% 6% 3% 0% -5.6% -3% -6% H -6.5% -9% -12% Consumption Investment -15% 4Q20 Source: Geostat 40% 35% 19.7% 18.3% 20.4% 17.3% 16.8% 16.6% 18.3% 17.0% 30% 25% 20% 15% 10% 5% 0% 1Q16 1Q16 SAVINGS AND INVESTMENT TO GDP Source: Geostat 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 ■Savings ■Investments. 3Q19 4Q19 1Q20 2Q20 3Q20 59#60800 600 400 200 о -200 -400 009- -800 Jan-18 Feb-18 500 400 300 200 100 о -100 -200 -300 -400 Jan-18 Feb-18 Mar-18 Apr-18 May-18 EXPORTS DOWN 12.0% YoY IN 2020 GOODS TRADE DEFICIT REDUCED BY US$ 1.1BN IN 2020 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 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Exports, US$ mn -% change y/y • TRADE DEFICIT DOWN 18.4% YoY IN 2020 ушкин 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- Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 19 Trade deficit, US$ mn Source: Geostat 60% 1,000 40% 400 20% 200 0 0% -200 -20% -400 -17.7% -600 -40% -800 Nov-20 Source: Geostat 60% 40% 20% 0% VAL -20% -60% Feb-20 Mar-20 Apr-20 May-20 Jul-20 Aug-20 Sep-20 Nov- Dec- % change y/y • IMPORTS DOWN 15.9% YoY IN 2020 Source: Geostat 50% 800 40% 009 30% 20% 10% 0% -10% -20% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-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 Imports, US$ mn EXPORTS BY COMMODITY, 2020 % change y/y Copper 21.8% Precious metals, 2.7% Other 33.6% Nuts 2.8% Ferro-alloys Gold 7.4% 2.9% Pharm. 3.0% Wine Mineral waters Spirits 6.3% 3.5% 4.0% Cars 12.1% -17.9% -30% -40% Dec-20 Source: Geostat 60#61BENEFITS FROM DIVERSIFIED ECONOMIC LINKAGES AND CLOSER TIES WITH EU EXPORTS, TOURISM, REMITTANCES AND FDI BY COUNTRY, 2020 • ECONOMIC LINKAGES BREAKDOWN, 2020 No single country accounts for more than 20% in any particular category, minimising potential negative impact from any key partner Other countries 22.5% Exports Tourism FDI Remittances EU EU 21.5% 11.5% 68.8% 41.5% 31.7% Russia 13.2% 18.2% 2.7% 19.3% Armenia Azerbaijan 13.2% 7.5% -3.2% 2.9% 3.9% Ukraine Turkey 5.7% 20.3% 7.2% 5.7% 5.2% China 14.3% 0.5% 0.4% 0.1% Turkey 7.1% China 7.5% Russia 14.2% Ukraine 6.5% 4.6% 1.3% 4.6% Azerbaijan 7.9% Armenia 5.6% 9.2% 0.7% 0.6% Other countries 20.1% 28.2% 22.0% 25.4% Source: Geostat, NBG, GNTA, Galt & Taggart Source: Geostat, NBG, GNTA, Galt & Taggart Note: FDI data is presented as of 9M20. Negative investment means a sale of shares or distributed profit. 61#6240% 20% 0% -20% -40% -60% -80% -100% TRACKING GEORGIA'S ECONOMIC RECOVERY RECOVERY REVERESED IN 4Q20 AS THE COUNTRY INPOSED 2ND PARTIAL LOCKDOWN Source: Geostat, NBG, GNTA Remmitances Exports Imports Trade deficit Tourist arrivals 60% +8.8% -12.0% -15.9% -18.4% -78.6% 60% Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 % change y/y m Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Annual % change in 2020 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Feb-20 Mar-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 40% 20% 0% -20% -40% -60% -80% -100% 62#63CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW AND STRATEGY QQ20 4Q20 AND FY20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | SEGMENT RESULTS 63#64RETAIL BANKING HIGHLIGHTS 1 2 BANK OF GEORGIA SOLO 3 BANK OF GEORGIA BUSINESS Segments Clients Mass Retail 2,326k Mass Affluent 60k MSME 230 k Loans GEL 2,955 mln GEL 2,731min GEL 3,295 min Deposits GEL3,407min GEL 2,736 mln GEL 958 min 2020 profit GEL 47 mln GEL 57 mln GEL 26 min P/C ratio 2.0 4.8 1.5 Branches 194 11 1 At 31 Dec 2020 for JSC Bank of Georgia standalone 64#65RETAIL BANKING HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS Change Change GEL thousands unless otherwise noted 4Q20 4Q19 3Q20 2020 2019 y-o-y q-o-q Change y-o-y Net interest income Net fee and commission income Net foreign currency gain Net other income 125,969 134,839 -6.6% 126,837 -0.7% 473,738 545,701 -13.2% 34,660 32,775 5.8% 34,744 -0.2% 120,985 136,510 -11.4% 13,477 14,795 -8.9% 14,245 -5.4% 56,879 51,009 11.5% 13,918 9,233 50.7% 3,477 NMF 23,390 8,230 NMF Operating income 188,024 191,642 -1.9% 179,303 4.9% 674,992 741,450 -9.0% Salaries and other employee benefits (44,821) (39,683) 12.9% (40,481) 10.7% (167,696) (147,982) 13.3% Administrative expenses (24,339) (22,593) 7.7% (18,199) 33.7% (80,169) (70,968) 13.0% Depreciation, amortisation and impairment (17,828) (20,383) -12.5% (15,704) 13.5% (69,031) (66,136) 4.4% Other operating expenses (1,087) (625) 73.9% Operating expenses (88,075) (83,284) 5.8% Profit from associate 154 153 Operating income before cost of risk 100,103 Cost of risk (18,986) Net operating income before non-recurring items 81,117 108,511 (7,118) 101,393 0.7% -7.7% (510) (74,894) 214 104,623 113.1% (2,696) (2,286) 17.9% 17.6% -28.0% -4.3% (319,592) (287,372) 11.2% NMF Net non-recurring items 149 68 -20.0% 119.1% (16,238) 88,385 16.9% 782 356,182 (183,061) 789 -0.9% 454,867 -21.7% (89,879) 103.7% -8.2% 173,121 364,988 -52.6% Profit before income tax and one-off costs 81,266 101,461 -19.9% Income tax expense (5,218) (8,910) -41.4% Profit adjusted for one off costs 76,048 92,551 -17.8% 219 88,604 (7,508) 81,096 -32.0% -8.3% -30.5% -6.2% (39,811) (846) NMF 133,310 364,142 -63.4% (4,724) (35,396) -86.7% 128,586 328,746 -60.9% One-off termination costs (after tax)* (10,142) NMF Profit 76,048 92,551 -17.8% 81,096 -6.2% 128,586 318,604 -59.6% The income statement adjusted profit in 2019 excludes GEL 10.1mln one-off employee costs (net of income tax) related to the former CEO and executive management termination benefits RB LOANS AND LOAN YIELD RB CLIENT DEPOSITS AND COST OF DEPOSITS 15.1% 16.1% 12.9% 11.4% 48.8% 50.3% 43.7% 44.9% 2.9% 2.9% 2.9% 2.6% 72.1% 69.7% 68.0% 68.7% 51.2% 49.7% 56.3% 55.1% 27.9% 30.3% 32.0% 31.3% 2017 2018 2019 2020 2017 2018 2019 2020 Net loans, GEL Net loans, FC I Client deposits, FC Client deposits, GEL Currency-blended loan yield Currency-blended cost of deposits 65#66RETAIL BANKING LOANS AND DEPOSITS • MARKET SHARE - LOANS TO INDIVIDUALS* 37.5% 35.5% 38.8% 37.7% • MARKET SHARE - DEPOSITS OF INDIVIDUALS* 36.9% 34.6% 40.3% 40.3% Dec-17 Dec-18 Dec-19 Dec-20 Dec-17 Dec-18 Dec-19 Dec-20 • RETAIL BANKING LOANS GEL MILLIONS 7,428 6,267 5,044 Dec-17 Dec-18 +17.6% RETAIL BANKING DEPOSITS +24.3% GEL MILLIONS 8,735 Dec-19 Dec-20 5,713 4,339 3,267 Dec-17 Dec-18 7,102 Dec-19 Dec-20 * Market shares by loans and deposits of individuals based on standalone accounts of the banks published by the National Bank of Georgia as at 31 December 2020 66#67RETAIL BANKING LOAN YIELD, COST OF DEPOSITS AND NIM RETAIL BANKING LOAN YIELD I QUARTERLY RETAIL BANKING LOAN YIELD I FULL YEAR 17.6% 15.4% 16.7% 15.8% 15.4% 12.9% 11.4% 12.4% 11.7% 11.2% 7.3% 6.5% 6.8% 6.7% 6.0% Loan Yield 4Q19 Loan yield, GEL 3Q20 Loan yield, FC Loan Yield Loan yield, GEL -2019 2020 Loan yield, FC ■4Q20 RETAIL BANKING COST OF DEPOSITS I QUARTERLY RETAIL BANKING COST OF DEPOSITS I FULL YEAR 6.3% 6.0% 6.1% 5.1% 5.1% 3.1% 2.9% 2.5% 1.4% 1.5% 1.5% 2.6% 2.9% 1.5% 1.4% Cost of deposits Cost of deposits, GEL Cost of deposits, FC 4Q19 3Q20 ■4Q20 Cost of deposits Cost of deposits, GEL Cost of deposits, FC 2019 2020 RETAIL BANKING NIM I QUARTERLY 5.7% 4.8% 4.5% RETAIL BANKING NIM I FULL YEAR 6.1% 4.5% 4Q19 3Q20 4Q20 2019 2020 67#68RETAIL BANKING LOAN PORTFOLIO COMPOSITION RETAIL BANKING CLIENT DATA Operating Data, GEL mln MORTGAGE LOANS DOLLARISATION Dec-20 Dec-19 Number of total Retail clients, of which: 2,616,480 Number of Solo clients Consumer loans & other outstanding, volume 60,330 1,924 Consumer loans & other outstanding, number Mortgage loans outstanding, volume Mortgage loans outstanding, number 431,927 2,540,466 54,542 1,726 472,791 Dec-18 2,440,754 44,292 1,555 566,740 Dec-17 2,315,038 32,104 1,480 738,694 5% 23% 26% 42% 46% 3,734 52,665 3,043 46,907 2,539 39,007 1,706 26,643 95% 77% 74% Micro & SME loans outstanding, volume 3,126 Micro & SME loans outstanding, number 75,723 2,523 81,739 2,005 1,637 58% 54% 68,832 53,732 Credit cards and overdrafts outstanding, volume Credit cards and overdrafts outstanding, number Credit cards outstanding, number, of which: 198 245 290 308 303,283 395,012 454,512 264,311 395,536 547,038 American Express cards 97,318 99,307 105,899 480,105 673,573 97,178 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 ■Mortgage loans, FC Mortgage loans, GEL RETAIL BANKING PORTFOLIO I 31 DEC 2020 Gross Loans by products Total: GEL 9.Obln Deposits by currency Total: GEL 7.1bln Deposits by category Total: GEL 7.1bln Credit Other cards and General 2.2% overdrafts 2.2% consumer Client Deposits, loans Mortgage 19.2% loans GEL 31.3% 41.6% Client Deposits, FC Time deposits Micro and 60.0% 68.7% SME loans 34.8% Current accounts & demand deposits 40.0% 68#69DIVERSIFIED RETAIL PORTFOLIOS AND INCOME STREAMS BALANCE SHEET | DEC-20 JSC Bank of Georgia Standalone Mass Retail 33% 37% (GEL 2,955min) ■Solo (GEL 2,731mln) MSME 30% (GEL 3,295min) 13% 39% 48% Mass Retail (GEL 3,407min) Solo (GEL 2,736mln) MSME (GEL 958mln) Total Loans GEL 8,982min Total Deposits GEL 7,102mln • INCOME STATEMENT | 2020 JSC Bank of Georgia Standalone ■Mass Retail (GEL 201mln) Net Interest Income GEL 474min 33% 43% ■ Solo 24% 19% (GEL 115min) ■MSME (GEL 157mln) Mass Retail ■ Solo 53% 28% (GEL 51mln) (GEL 27mln) ■MSME (GEL 18mln) Net Fee & Commission Income GEL 96mln 69#70CIB HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS Change Change Change GEL thousands unless otherwise noted 4Q20 4Q19 3Q20 2020 2019 y-o-y q-o-q y-o-y Net interest income Net fee and commission income Net foreign currency gain Net other income Operating income 66,736 65,642 1.7% 68,454 -2.5% 267,641 217,874 22.8% 10,933 11,928 -8.3% 9,500 15.1% 38,585 37,018 4.2% 11,017 14,341 -23.2% 4,976 121.4% 35,959 49,355 -27.1% 10,184 9,212 10.6% 4,653 118.9% 24,342 13,506 80.2% 98,870 101,123 -2.2% 87,583 12.9% 366,527 317,753 15.3% Salaries and other employee benefits (14,588) (15,495) -5.9% (13,034) 11.9% (52,352) (57,975) -9.7% Administrative expenses (5,215) (8,989) -42.0% (4,483) 16.3% (17,652) (22,886) -22.9% Depreciation, amortisation and impairment (2,400) (2,387) 0.5% (2,352) 2.0% (9,659) (8,437) 14.5% Other operating expenses (471) (295) 59.7% (235) 100.4% (1,231) (1,042) 18.1% Operating expenses (22,674) (27,166) -16.5% (20,104) 12.8% (80,894) (90,340) -10.5% Operating income before cost of risk 76,196 73,957 Cost of risk (22,264) (7,389) 3.0% NMF 67,479 12.9% 285,633 227,413 25.6% 6,745 NMF (113,955) (14,548) NMF Net operating income before non-recurring items 53,932 66,568 -19.0% 74,224 -27.3% 171,678 212,865 -19.3% Net non-recurring items (217) NMF (1) NMF (1,375) (293) NMF Profit before income tax and one-off costs 53,932 66,351 -18.7% 74,223 -27.3% 170,303 212,572 -19.9% Income tax expense (4,079) (5,344) -23.7% (7,619) -46.5% (14,097) (19,819) -28.9% Profit adjusted for one off costs 49,853 61,007 -18.3% 66,604 -25.2% 156,206 192,753 -19.0% One-off termination costs (after tax)* (4,094) NMF Profit 49,853 61,007 -18.3% 66,604 -25.2% 156,206 188,659 -17.2% * The income statement adjusted profit in 2019 excludes GEL 4.1min one-off employee costs (net-off income tax) related to the former CEO and executive management termination benefits CIB LOAN PORTFOLIO AND LOAN YIELD • CIB CLIENT DEPOSITS AND COST OF DEPOSITS 4.4% 10.7% 10.2% 9.1% 8.6% 4.0% 4.1% 3.3% 47.7% 63.1% 61.2% 65.9% 83.1% 82.3% 81.1% 79.7% 52.3% 36.9% 16.9% 2017 17.7% 18.9% 20.3% 2018 2019 2020 2017 Net loans, GEL I Net loans, FC Currency-blended loan yield Client deposits, FC -Currency-blended cost of deposits 38.8% 34.1% 2018 2019 2020 Client deposits, GEL 70#71CIB LOAN BOOK AND DEPOSITS • MARKET SHARE - LOANS TO LEGAL ENTITIES* • MARKET SHARE - DEPOSITS OF LEGAL ENTITIES* 32.0% 31.0% 28.9% 28.8% Dec-17 Dec-18 Dec-19 Dec-20 • CIB NET LOANS GEL MILLIONS +22.5% 4,662 3,804 2,618 2,260 Dec-17 Dec-18 Dec-19 Dec-20 37.3% 33.1% 30.3% 30.9% Dec-17 Dec-18 Dec-19 Dec-20 CIB NET DEPOSITS GEL MILLIONS 3,825 3,457 3,473 Dec-17 Dec-18 +67.2% 6,395 Dec-19 Dec-20 * Market shares by loans and deposits of legal entities based on standalone accounts of the banks published by the National Bank of Georgia as at 31 December 2020 71#72CIB LOAN BOOK AND DEPOSITS HIGHLIGHTS Leading corporate bank in Georgia Integrated client coverage in key major sectors of the Georgian economy 3,020 corporate customers served by dedicated relationship bankers at 31 December 2020 • GROSS LOAN BOOK BY SECTOR | DEC-20 Top 10 CIB borrowers - 29.4% of CIB loan book Mining & quarrying 3.8% Health & social work 2.6% Other 15.8% Manufacturing 22.7% Financial intermediation 1.1% Electricity, gas &. water supply 5.2% Transport & Communication 4.0% Construction 1.6% Trade 9.2% Hospitality 13.1% Real estate 17.1% Service 3.8% Top 20 CIB borrowers - 39.8% of CIB loan book • DEPOSITS BY CATEGORY | DEC-20 Current accounts Time deposits, 52.0% and demand deposits, 48.0% DEPOSITS BY CURRENCY | DEC-20 Client deposits, FC, 47.7% Client deposits, GEL, 52.3% 72#73RETAIL BANKING LOAN YIELD, COST OF DEPOSITS AND NIM CIB LOAN YIELD I QUARTERLY CIB LOAN YIELD I FULL YEAR 12.0% 12.8% 8.6% 7.7% 12.5% 13.0% 12.7% 9.2% 8.6% 8.5% 8.5% 7.7% 7.6% 9.1% 8.6% Loan Yield 4Q19 Loan yield, GEL 3Q20 Loan yield, FC ■4Q20 CIB COST OF DEPOSITS I QUARTERLY 7.8% 7.8% 6.1% 4.6% 4.7% 3.3% Cost of deposits Loan Yield Loan yield, GEL ■2019 Loan yield, FC 2020 CIB COST OF DEPOSITS I FULL YEAR 7.7% 5.8% 4.4% 1.7% 1.8% 1.8% 3.3% 1.8% 1.7% Cost of deposits, GEL Cost of deposits, FC 4Q19 3Q20 ■4Q20 Cost of deposits Cost of deposits, GEL Cost of deposits, FC 2020 2019 CIB NIMI QUARTERLY 3.8% 3.6% 3.3% CIB NIMI FULL YEAR 3.6% 4.7% 4Q19 3Q20 4Q20 2019 2020 73#74WEALTH MANAGEMENT AND INVESTMENT BANKING WEALTH MANAGEMENT STRONG REGIONAL PRESENCE Israel (2008), UK (2010), Hungary (2012), Turkey (2013) LONDON BUDAPEST TBILISI ISTANBUL TEL AVIV CIB AUM - GEL 2,769 million, up 11.2% y-o-y Diversified funding base: 1,578 customers from 78 countries BANK OF GEORGIA WEALTH GALT & TAGGART ☐ ■ GALT & TAGGART CREATING OPPORTUNITIES LARGEST INVESTMENT BANK IN GEORGIA BROKERAGE Leading brokerage house in the region SAXO Exclusive partner of SAXO Bank via white label structure BANK RESEARCH " Macro, sector, and fixed income coverage Global market coverage DCM/ECM " Leading player on the local market Lead manager of choice for corporates as well as IFIs CORPORATE ADVISORY Track record of more than 30 completed transactions over the past eight years FINANCE Best Investment Bank in Georgia 2015-2020 74#75LEADING REGIONAL FRANCHISE GROWTH IN AUM GEL MILLIONS CAGR: +16.8% • DIVERSIFIED CUSTOMER BASE ACROSS MULTIPLE GEOGRAPHIES Other 14% +11.2% 2,769 2,490 2,247 1,856 1,487 1,157 984 834 512 356 1,131 1,344 1,413 1,506 1,612 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Israel 9% Galt & Taggart Wealth Management ROBUST PROFITABILITY NET OPERATING PROFIT GEL MILLIONS CAGR: +3.8% -12.8% 21.8 22.4 18.8 19.5 16.8 2.0 3.2 0.4 2.2 1.2 18.4 19.8 19.2 15.6 17.3 2016 2017 2018 Wealth Management 2019 Galt & Taggart 2020 UK 3% Europe 17% CIS 20% Georgia 37% Addressable market to drive growth covers multiple geographies 75#76GALT & TAGGART BROKERAGE - ONLINE BROKERAGE DRIVING GROWTH • GALT & TAGGART BROKERAGE-GROSS REVENUES AND NET MARGINS* GEL MILLIONS NET MARGIN 50.4% -56.1% -41.7% -0.7% 44.6% 50.9% 6.5 • FOCUS ON DIGITALISING BROKERAGE OFFERINGS SIGNIFICANT MILESTONES TOWARDS DIGITALISATION ACHIEVED IN 2020 3.7 2.8 5.0 1.8 1.9 1.1 1.1 0.6 0.2 0.5 ERP SYSTEM DASHBOARD TRADER.GE MOBILE APP 0.6 0.9 1.3 1.7 1.8 1.5 2015 2016 2017 2018 2019 2020 Investment phase Growth phase Traditional Brokerage Online Brokerage** ERP system enhancement to increase operational efficiency Launched Client Dashboard to improve customer experience and transparency Galt & Taggart Trader website enhancement to increase customer engagement With investment phase behind, Galt & Taggart Brokerage business is now profitable and growing fast, driven by Online Brokerage * Gross revenue stands for brokerage revenues before subtracting any brokerage and third-party brokerage fees; net margins are post these fees ** Offered through the white label solution from SAXO Bank 76 DIGITAL SOLUTION POWERED BY AI Develop mobile app in 2021 Gearing towards fully digital solution powered by AI FOCUSING ON MOBILE AND FULLY DIGITAL SOLUTIONS#77DIGITAL AREA ECOSYSTEM OVERVIEW ON-DEMAND CHILDCARE- FULLY AUTOMATED INFLUENCER MARKETING UNIVERSAL MARKETPLACE CHARITY SUPPORT PLATFORM ONLINE PHYSIOTHERAPY ONLINE BRANDING PLATFORM SELF-GUIDED TOURS AND TICKETS MARKETPLACE FOR GROUP TOURS REAL ESTATE ECOSYSTEM ONLINE CAR RENTALS MARKETPLACEWEGOTRIP HOPSITALITY MANAGEMENT SOLUTION Corebook y nanny O AREA.GE YOU 4 TRAVEL .ME INTERNATIONAL VEHICLE AUCTIONS PREDICTIVE ANALYTICS FOR FARMERS Tripcars LOGISTICS & DELIVERY CAR MAINTENANCE OUTSOURCING MODERN TECHNOLOGIES FOR FARMERS CARDEAL LOYALTY extra.ge DIGITAL AREA izi OPTIMO COUPONS AND DISCOUNTS kvalifika Phubber adapter AGROLABS CARU N FINMAP ON DEMAND FREIGHT LOGISTICS SIMP LIUM SOFTWARE FOR MODELING URBAN AREAS PAVZE Quick Cash" KERNEL S S lil B2C SAAS PLATFORM FOR CLIENT AUTHENTICATION FASHION SHOPPING MARKETPLACE GROWTH MANAGEMENT FOR ONLINE SHOPS SIMPLE FINANCIAL TOOLS DIGITAL ADAPTATION PROGRAM FOR BUSINESSES TAB-LESS BROWSER FOR PRODUCTIVITY INTELLIGENT EMPLOYEE REFERRALS AI BASED E-COMMERCE SOLUTION AI DIGITAL LENDING INFRASTRUCTURE NATURAL LANGUAGE TRAINING TOOL MULTICHANNEL CUSTOMER ENGAGEMENT SOFTWARE INNOVATIVE DIGITAL SOLUTION FOR MSME TELECOMMUNICATION SOLUTION FINANCIAL MANAGEMENT TOOL FOR SME E-COMMERCE PAYMENTS 77#78DIGITAL AREA ECOSYSTEM OVERVIEW • SINCE JUNE 2019 Extra.ge-launch of web platform Extra.ge largest e-commerce marketplace Extra.ge launch on IOS and Android apps Optimo.ge launch of merchant services Adapter.ge-launch of web platform Area.ge - launch of developer platform ■ Accelerated 28 local and international startups • COMING SOON Extra.ge launch automated C2C fulfillment service Optimo launch loyalty programme Adapter.ge-launch for MSME manufacturers Accelerate the uptake of real estate sales management tool with developer companies Continue partnerships with other ecosystem players Digital Area ecosystem data harnessing INVESTED US$ 6.5 MLN 2018-2020 PLAN TO INVEST US$ 3-10 MLN 2021-2023 78#79CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW AND STRATEGY QQ20 4Q20 AND FY20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | CORPORATE GOVERNANCE 79#80BOARD OF DIRECTORS 80 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#81HIGHLY EXPERIENCED MANAGEMENT TEAM 81 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. Sulkhan Gvalia, Chief Financial Officer With the Group since 2004. Previously, founder and CEO of E- Space Limited, Tbilisi. Various positions with the Group - Chief Risk Officer and Head of Corporate Banking. Prior to joining the Group, served as Deputy CEO of TbilUniversal Bank. Also, serves as non- executive independent director at Inecobank (Armenia) since 2018. Holds a law degree from Tbilisi State University. Levan Kulijanishvili, Deputy CEO, Operations With the Group since 1997. Joined as a Junior Financial Analyst of the Bank. Held various senior positions - Deputy CEO in charge of finance, Head of Internal Audit, Head of Financial Monitoring, Head of Strategy and Planning, and Head of the Financial Analysis. Holds an MBA from Grenoble Graduate School of Business. George Chiladze, Deputy CEO, Chief Risk Officer With the Group since 2008. Joined as a Deputy CEO, finance at Bank. Left in 2011 and rejoined in 2013 as Deputy CEO, CRO. Prior to rejoining, he was Deputy CEO at the Partnership Fund. Prior to returning to Georgia in 2003, he worked at the programme trading desk at Bear Stearns in New York City. Holds a PhD in physics from Johns Hopkins University in Baltimore, Maryland. Mikheil Gomarteli, Deputy CEO, Mass Retail With the Group since 1997. Mikheil is a textbook professional growth story made possible in our Group - he developed his way from selling debit cards door-to-door to successfully leading our Retail Banking franchise for over ten years now. Holds an undergraduate degree in Economics from Tbilisi State University. Vakhtang Bobokhidze, Deputy CEO, Information Technology, Data Analytics, Digital Channels With the Group since 2005. Joined as Quality Control Manager. Left the Group in 2010 and rejoined the Group in December 2010. Prior to being appointed as Deputy CEO, served as Head of IT Department since 2016. Holds an MBA from Tbilisi State University.#82HIGHLY EXPERIENCED MANAGEMENT TEAM 82 Etuna Iremadze, Head of Premium 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. 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. Zurab Kokosadze, Head of Corporate Banking With the Group since 2003. Over 15 years of experience in financial services. Prior to his recent appointment, he served as Head of Corporate Banking under the direct supervision of Deputy CEO, Corporate and Investment Banking. Held various senior positions within Group Senior Corporate Banker, FMCG Sector Head and Deputy Head of Corporate Banking. Holds an MBA from Grenoble Graduate School of Business. Andro Ratiani, CEO of Digital Area With the Group since 2018. Extensive experience in the global financial services. Previously, Head of Innovations and Bank of Georgia, Global Head of Product Management at IHS Markit, spent 6 years in UBS AG Investment & Wealth Management Bank in New York, worked in Wells Fargo during acquisition phase of Wachovia Bank. Started his career at the Bank's CIB Department. Holds a Master's degree in technology management from Columbia University. 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. 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.#83CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW AND STRATEGY QQ20 4Q20 AND FY20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | FINANCIAL AND OPERATING INFORMATION 83#84GROUP INCOME STATEMENT Change Change Change 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 4Q20 4Q19 3Q20 2020 2019 y-o-y q-o-q y-o-y 420,398 (218,802) 201,596 77,382 393,480 (186,389) 6.8% 407,666 3.1% 1,595,427 1,437,161 11.0% 17.4% (203,636) 7.4% (817,785) (647,742) 26.3% 207,091 -2.7% 204,030 -1.2% 777,642 789,419 -1.5% 77,472 -0.1% 71,793 7.8% 274,458 284,193 -3.4% (30,424) (30,914) -1.6% (26,261) 15.9% (108,955) (104,179) 4.6% 46,958 46,558 0.9% 45,532 3.1% 165,503 180,014 -8.1% 26,457 37,177 -28.8% 19,179 37.9% 99,040 119,363 -17.0% 25,016 18,439 35.7% 7,750 NMF 48,474 21,474 125.7% 300,027 309,265 -3.0% 276,491 8.5% 1,090,659 1,110,270 -1.8% Salaries and other employee benefits (excluding one-offs) (64,243) (61,504) 4.5% (58,171) 10.4% (239,607) (231,443) 3.5% One-off termination costs of former executive management (1) (12,412) NMF Salaries and other employee benefits (64,243) (61,504) 4.5% (58,171) 10.4% (239,607) (243,855) -1.7% Administrative expenses (31,617) (35,131) -10.0% (24,443) 29.3% (105,531) (106,157) -0.6% Depreciation, amortisation and impairment (21,283) (23,815) -10.6% (19,125) 11.3% (82,937) (78,118) 6.2% Other operating expenses (1,714) (1,095) Operating expenses (118,857) (121,545) Profit from associates Operating income before cost of risk Expected credit loss on loans to customers Expected credit loss on finance lease receivables 154 181,324 (14,579) (381) Other expected credit loss and impairment charge on other assets and provisions Cost of risk (23,471) 153 187,873 (7,985) 451 (6,698) 56.5% -2.2% 0.7% -3.5% 82.6% (873) (102,612) 214 174,093 96.3% (4,560) (4,228) 7.9% (5,836) 15.8% -28.0% 4.2% 149.8% (432,635) (432,358) 0.1% 782 658,806 (236,983) 789 -0.9% 678,701 -2.9% (94,155) 151.7% NMF (2,371) -83.9% NMF (2,735) NMF (8,025) (55,989) (885) NMF (38,431) (14,232) NMF (10,942) NMF Net operating income before non-recurring items 142,893 173,641 -17.7% 163,151 -12.4% Net non-recurring items (excluding one-offs) 21 (1,591) NMF 254 -91.7% (300,997) 357,809 (41,311) (12,544) (107,584) NMF NMF 571,117 -37.3% (10,723) NMF One-off termination costs of former CEO (2) (3,985) NMF Net non-recurring items 21 (1,591) NMF 254 -91.7% (41,311) (14,708) NMF Profit before income tax expense 142,914 172,050 -16.9% 163,405 -12.5% 316,498 556,409 -43.1% Income tax expense (excluding one-offs) (11,065) (15,515) -28.7% (15,051) -26.5% (21,555) (58,619) -63.2% Income tax benefit related to one-off termination costs of former CEO and executive management (3) 2,161 NMF Income tax expense (11,065) (15,515) -28.7% (15,051) -26.5% (21,555) Profit 131,849 156,535 -15.8% 148,354 -11.1% 294,943 (56,458) 499,951 -61.8% -41.0% (14,236) NMF One-off items (1)+(2)+(3) Profit attributable to: - shareholders of the Group - non-controlling interests Earnings per share (basic) Earnings per share (diluted) 131,220 629 155,823 712 -15.8% -11.7% 147,704 -11.2% 293,584 497,664 -41.0% 650 -3.2% 1,359 2,287 -40.6% 2.76 3.30 -16.4% 3.11 -11.3% 6.17 10.45 -41.0% 2.76 3.29 -16.1% 3.11 -11.3% 6.17 10.42 -40.8% 84#85GROUP BALANCE SHEET Change Change GEL thousands, unless otherwise noted Cash and cash equivalents Dec-20 Dec-19 Sep-20 y-o-y 9-0-9 1,970,955 2,153,624 -8.5% 2,154,224 -8.5% Amounts due from credit institutions 2,016,005 1,619,072 24.5% 1,980,195 1.8% Investment securities 2,544,397 1,786,804 42.4% 2,205,244 15.4% Loans to customers and finance lease receivables 14,192,078 11,931,262 18.9% 13,627,144 4.1% Accounts receivable and other loans 2,420 3,489 -30.6% 4,935 -51.0% Prepayments 27,593 42,632 -35.3% 32,021 -13.8% Inventories Right-of-use assets Investment property Property and equipment Goodwill Intangible assets Income tax assets 10,340 12,297 -15.9% 11,406 -9.3% 83,208 96,095 -13.4% 85,859 -3.1% 231,241 225,073 2.7% 221,517 4.4% 387,851 379,788 2.1% 390,401 -0.7% 33,351 33,351 0.0% 33,351 0.0% 125,806 22,033 106,290 18.4% 117,941 6.7% 282 NMF 40,484 -45.6% Other assets 325,994 143,154 127.7% 216,159 50.8% Assets held for sale 62,648 36,284 72.7% 46,072 36.0% Total assets 22,035,920 18,569,497 18.7% 21,166,953 4.1% Client deposits and notes 14,020,209 10,076,735 39.1% 12,985,039 8.0% Amounts owed to credit institutions 3,335,966 3,934,123 -15.2% 3,757,646 -11.2% Debt securities issued 1,585,545 2,120,064 -25.2% 1,628,188 -2.6% Lease liabilities 95,635 94,616 1.1% 98,522 -2.9% Accruals and deferred income 53,894 52,471 2.7% 43,474 24.0% Income tax liabilities 62,434 37,918 64.7% 70,854 -11.9% Other liabilities 332,322 102,662 NMF 212,093 56.7% Total liabilities 19,486,005 16,418,589 18.7% 18,795,816 3.7% Share capital Additional paid-in capital 1,618 526,634 1,618 492,072 0.0% 7.0% 1,618 0.0% 513,407 2.6% Treasury shares (54) (64) -15.6% (54) 0.0% Other reserves 71,227 (7,481) NMF 38,201 86.5% Retained earnings 1,939,122 1,655,256 17.1% Total equity attributable to shareholders of the Group 2,538,547 2,141,401 18.5% 1,807,432 2,360,604 7.3% 7.5% Non-controlling interests 11,368 9,507 19.6% 10,533 7.9% Total equity 2,549,915 Total liabilities and equity 22,035,920 Book value per share 53.41 2,150,908 18,569,497 45.36 18.6% 2,371,137 7.5% 18.7% 21,166,953 4.1% 17.7% 49.67 7.5% 85#86BNB FINANCIAL HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS Change Change Change 4Q20 4Q19 3Q20 2020 2019 GEL thousands, unless otherwise noted y-o-y 9-0-9 y-o-y Net interest income 8,888 7,194 23.5% 8,735 1.8% 36,249 27,586 31.4% Net fee and commission income 1,268 1,602 -20.8% 1,220 3.9% 5,678 7,169 -20.8% Net foreign currency gain/(loss) 1,963 6,548 -70.0% (42) NMF 6,202 20,688 -70.0% Net other income / (expense) 1,240 92 NMF (110) NMF 1,812 463 NMF Operating income 13,359 15,436 -13.5% 9,803 36.3% 49,941 55,906 -10.7% Operating expenses (8,334) (9,493) -12.2% (7,812) 6.7% (32,950) (35,366) -6.8% Operating income before cost of risk 5,025 5,943 -15.4% 1,991 152.4% 16,991 20,540 -17.3% Cost of risk 2,819 (7) NMF (1,449) NMF (3,981) (2,691) 47.9% Net non-recurring items (128) (46) NMF 36 NMF (125) (110) 13.6% Profit before income tax 7,716 5,890 31.0% 578 NMF 12,885 17,739 -27.4% Income tax (expense) / benefit (1,768) (1,261) 40.2% 76 NMF (2,734) (3,404) -19.7% Profit 5,948 4,629 28.5% 654 NMF 10,151 14,335 -29.2% BALANCE SHEET HIGHLIGHTS Change Change Dec-20 Dec-19 Sep-20 GEL thousands, unless otherwise noted y-o-y 9-0-9 Cash and cash equivalents 163,193 212,777 -23.3% 155,782 4.8% Amounts due from credit institutions 20,042 12,742 57.3% 14,614 37.1% Investment securities 94,459 81,573 15.8% 74,936 26.1% Loans to customers and finance lease receivables 698,542 580,876 20.3% 702,231 -0.5% Other assets 42,416 55,102 -23.0% 47,394 -10.5% Total assets 1,018,652 943,070 8.0% 994,957 2.4% Client deposits and notes 589,152 608,777 -3.2% 596,360 -1.2% Amounts owed to credit institutions 234,641 144,621 62.2% 209,535 12.0% Debt securities issued 34,067 69,438 -50.9% 49,214 -30.8% Other liabilities Total liabilities Total equity Total liabilities and equity 28,237 11,038 155.8% 22,188 27.3% 886,097 833,874 6.3% 877,297 1.0% 132,555 109,196 21.4% 117,660 12.7% 1,018,652 943,070 8.0% 994,957 2.4% 86#87KEY RATIOS 4Q20 4Q19 3Q20 2020 2019 Profitability ROAA, annualised ** 2.4% 3.4% 3.0% 1.5% 3.1% ROAA, annualised (unadjusted) 2.4% 3.4% 3.0% 1.5% 3.1% ROAE, annualised *** 21.3% 29.9% 26.0% 13.0% 26.1% RB ROAE ** 22.0% 31.4% 25.0% 10.0% 28.6% CIB ROAE ** 20.7% 28.5% 30.7% 18.1% 25.6% ROAE, annualised (unadjusted) 21.3% 29.9% 26.0% 13.0% 25.4% Net interest margin, annualised 4.4% 5.4% 4.8% 4.6% 5.6% RB NIM 4.5% 5.7% 4.8% 4.5% 6.1% CIB NIM 3.3% 3.8% 3.6% 4.7% 3.6% Loan yield, annualised 10.4% 11.4% 10.7% 10.5% 11.7% RB Loan yield CIB Loan yield Liquid assets yield, annualised Cost of funds, annualised Cost of client deposits and notes, annualised 11.2% 12.4% 11.7% 11.4% 12.9% 8.5% 9.2% 8.6% 8.6% 9.1% 3.0% 3.7% 3.3% 3.4% 3.5% 4.6% 4.7% 4.7% 4.7% 4.6% 3.8% 3.0% 3.8% 3.6% 3.0% RB Cost of client deposits and notes 2.9% 2.5% 3.1% 2.9% 2.6% CIB Cost of client deposits and notes 4.7% 3.3% 4.6% 4.4% 3.3% Cost of amounts due to credit institutions, annualised 6.6% 7.4% 6.9% 7.1% 7.1% Cost of debt securities issued 7.0% 7.9% 7.0% 7.4% 7.7% Operating leverage, y-o-y *** -0.8% -7.3% 1.9% -4.8% -3.2% Operating leverage, q-o-q Efficiency Cost Income RB Cost/Income CIB Cost/Income *** Cost Income (unadjusted) -7.3% -4.1% 17.8% 0.0% 0.0% *** *** 39.6% 39.3% 37.1% 39.7% 37.8% 46.8% 43.5% 41.8% 47.3% 38.8% *** 22.9% 26.9% 23.0% 22.1% 28.4% 39.6% 39.3% 37.1% 39.7% 38.9% *For the description of Key Ratios, refer to page 90 ** The 2019 ratios are adjusted for one-off employee costs related to termination benefits of the former CEO and executive management *** The 2019 ratios are adjusted for one-off employee costs related to termination benefits of former executive management 87#88KEY RATIOS 4Q20 4Q19 3Q20 2020 2019 Liquidity NBG liquidity coverage ratio (minimum requirement 100%) 138.6% 136.7% 147.0% 138.6% 136.7% Liquid assets to total liabilities 33.5% 33.9% 33.7% 33.5% 33.9% Net loans to client deposits and notes 101.2% 118.4% 104.9% 101.2% 118.4% Net loans to client deposits and notes + DFIs 89.4% 103.2% 92.1% 89.4% 103.2% Leverage (times) 7.6 7.6 7.9 7.6 7.6 Asset Quality: NPLs (in GEL) 545,837 252,695 530,631 545,837 NPLs to gross loans to clients 3.7% 2.1% 3.8% 3.7% 252,695 2.1% NPL coverage ratio 76.3% 80.9% 76.8% 76.3% 80.9% NPL coverage ratio, adjusted for discounted value of collateral 128.8% 139.6% 131.4% 128.8% 139.6% Cost of credit risk, annualised 0.4% 0.2% 0.2% 1.8% 0.9% RB Cost of credit risk 0.6% 0.2% 0.8% 2.1% 1.2% CIB Cost of credit risk 0.4% 0.5% -1.1% 1.4% 0.2% Capital Adequacy: NBG (Basel III) CET1 capital adequacy ratio 10.4% 11.5% 9.9% 10.4% 11.5% Minimum regulatory requirement 7.4% 10.1% 6.9% 7.4% 10.1% NBG (Basel III) Tier I capital adequacy ratio 12.4% 13.6% 12.0% 12.4% 13.6% Minimum regulatory requirement 9.2% 12.2% 8.7% 9.2% 12.2% NBG (Basel III) Total capital adequacy ratio 17.6% 18.1% 17.3% 17.6% 18.1% Minimum regulatory requirement 13.8% 17.1% 13.3% 13.8% 17.1% * For the description of Key Ratios, refer to page 90 88#89KEY OPERATING DATA Selected operating data: Total assets per FTE Number of active branches, of which: - Express branches (including Metro) - Bank of Georgia branches - Solo lounges Number of ATMs Number of cards outstanding, of which: - Debit cards - Credit cards Number of POS terminals Number of Express Pay terminals FX Rates: Dec-20 Dec-19 Sep-20 2,993 2,515 2,976 211 272 211 105 162 105 95 98 95 11 12 11 960 933 947 2,137,744 2,145,060 2,184,591 1,873,433 1,749,524 1,879,970 264,311 395,536 304,621 27,184 3,020 21,870 25,706 3,217 3,130 GEL/US$ exchange rate (period-end) 3.2766 GEL/GBP exchange rate (period-end) 4.4529 2.8677 3.7593 3.2878 4.2255 Full time employees (FTE), of which: 7,363 7,383 7,112 - Full time employees, BOG standalone 5,821 5,879 5,598 - Full time employees, BNB 537 565 538 - Full time employees, other 1,005 939 976 Shares outstanding Ordinary shares Treasury shares Total shares outstanding 47,530,584 1,638,844 49,169,428 47,210,876 1,958,552 49,169,428 47,528,417 1,641,011 49,169,428 89#90KEY RATIO DEFINITIONS 90 Cost of funds Interest expense of the period divided by monthly average interest bearing liabilities; Cost of credit risk Expected loss on loans to customers and finance lease receivables for the period divided by monthly average gross loans to customers and finance lease receivables over the same period; Cost to income ratio Operating expenses divided by operating income; Interest bearing liabilities Amounts owed to credit institutions, client deposits and notes, and debt securities issued; Interest earning assets (excluding cash) Amounts due from credit institutions, investment securities (but excluding corporate shares) and net loans to customers and finance lease receivables; Leverage (times) Total liabilities divided by total equity; Liquid assets Cash and cash equivalents, amounts due from credit institutions and investment securities; Liquidity coverage ratio (LCR) High quality liquid assets (as defined by 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; Net stable funding ratio (NSFR) available amount of stable funding (as defined by NBG) divided by the required amount of stable funding (as defined by NBG) Non-performing loans (NPLs) The principal and interest on loans overdue for more than 90 days and any additional potential losses estimated by management; NPL coverage ratio Allowance for expected credit loss of loans and finance lease receivables divided by NPLs; NPL coverage ratio adjusted for discounted value of collateral Allowance for expected credit loss of loans and finance lease receivables divided by NPLs (discounted value of collateral is added back to allowance for expected credit loss); Operating leverage Percentage change in operating income less percentage change in operating expenses; Return on average total assets (ROAA) Profit for the period divided by monthly average total assets for the same period; Return on average total equity (ROAE) Profit for the period attributable to shareholders of the Group divided by monthly average equity attributable to shareholders of the Group for the same period; NMF Not meaningful#91COMPANY INFORMATION 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.bankofgeorgiagroup.com 91