OPEX Ratio Alignment & Portfolio Valuation Overview slide image

OPEX Ratio Alignment & Portfolio Valuation Overview

REAL GDP CONTINUING DOUBLE-DIGIT GROWTH IN 2022 REAL GDP UP 10.5% Y-O-Y IN 1H22 50% 40% 30% 20% 10% 4% 0% -10% -20% -5% -12% 45% 26% 19% 18.0% 14.6% 12% 10% 10% 10% 7% 7% NOMINAL GDP IS EXPECTED TO ACCELERATE BOTH IN GEL AND USD TERMS I Nominal GDP, GEL bln, LHS Nominal GDP, US$ bln, LHS 75 70 65 60 55 35 30 SOSOSO425022 Billions 11.6% 7.2% 10.6% 2.6% --GDP per capita, GEL, RHS GDP per capita, USD, RHS 22 15 10 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022* Georgia Capital PLC | Source: Geostat, Georgia Capital estimates (*) Thousands 18 16 14 12 10 4 2006 2006+ N 8 2 GEORGIA CAPITAL REAL GDP UP 10.5% Y-O-Y IN 1H22 KEY DRIVERS Strong external demand supplemented by the migration effect, as remittance inflows grew by 65% y-o-y in 1H22 on the back of a surge in inflows from Russia, while merchandise exports increased by 35% y-o-y in 1H22, and tourism revenues reached 79% of 2019 levels in 1H22, including 92% in May-June; Continued credit expansion despite the tight monetary stance (up 18.7% y-o-y in June w/o the exchange rate effect) both in retail and business sectors, aiding economic activity; ➤ Current expenditures growing by 9% y-o-y and capital expenditures expanding by 4% y-o-y in 1H22, facilitated by a 34% growth in fiscal revenues; ➤ Strong consumer and business sentiment supporting spending and investment decisions. 77
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