BGEO Group Financial Update

40% 35% Prudent 2015 fiscal parameters Budget tax revenues posted a strong performance ... so did capex and privatization, while current expenditure growth was almost flat in real terms Source: Treasury Service +6.9% +182.9% 200% 3000 150% 2500 +15.0% 2000 100% +47.7% 1500 50% +7.9% +29.0% 1000 +5.6% 0% 500 +7.2% -30.4% +4.2% -50% 0 -100% (VAT) Pers. Corp. income tax income tax. Excise tax Property tax Custom Other taxes duties Current spending, % change y/y Capital spending, % change y/y Privatization, % change y/y ■10M13 10M14 ■10M15 ■9M13 ■9M14 ■9M15 Government is committed to smoother spending in 2015, while deficit financing was taking place mostly in 4Q of 2013-1014, pressuring GEL 23.1% 35.3% 30% 25% 18.7% 22.9% 20% 15% 10% 5% 0% 2013 ■1Q ■2Q Source: MOF Note: Budget expenditures as % of annual plan Holding company of BANK OF GEORGIA BGEO www.bgeo.com GROUP November 2015 20.1% 23.8% 2014 24.8% Source: MOF Government revised budget for 2015E growth 2% from 5%, while fiscal deficit, tax and total expenditures ratios to GDP remain unchanged 31.3% 21.9% 24.5% 25.9% 27.7% 40% 35% 30% 25% 20% 15% 10% 2015 ■3Q 4Q 2007 2008 2009 2010 2011 2012 2013 Tax revenues as % of GDP --Expenditures (capital + current) as % of GDP Source: MOF, GeoStat 2014 2015E 2016F page 69

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