Investor Presentaiton

Liberal economic policy Regional logistics and tourism hub Strong FDI Georgia's key economic drivers Support from international community Electricity transit hub potential Political environment stabilised Holding company of BANK OF GEORGIA Outstanding progress in governance and business reforms, eliminating corruption, strengthening public finances, and streamlining tax and customs procedures. These economic and structural improvements have been institutionalized. Liberty Act (effective January 2014) ensures a credible fiscal and monetary framework: - Public expenditure/GDP capped at 30%; Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60% Productivity gains accounted for 66% of the average 5.6% growth over 1999-2012, according to the World Bank 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, and a market of 900mn customers without customs duties. Free trade agreements with EU, CIS and Turkey and GSP with USA, Canada, Japan, Norway and Switzerland Tourism revenues at US$1,787mln in 2014 (up 3.9% y-o-y); 5.5mln visitors in 2014 (up 2% y-o-y); 5.0mln visitors in 10M15 (up 6.8% y-o-y) 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 have boosted productivity and accelerated growth. FDI diversified across sectors (2014: US$1,758mln 2013: US$942mln, 2012: US$912mln, 2011: US$1,117mln); FDI averaged 10% of GDP in 2005-2014 FDI up 4.8% y-o-y in 1H15 to US$530.0mln Net remittances of US$1,262.6mln in 2014, 19.5% CAGR 04-14, US$802.9mln in 9M15 Georgia and the EU signed an Association Agreement in June 2014. The deal includes a DCFTA, which is the major vehicle for Georgia's economic integration with the EU, a common customs zone of c.500mn customers and a US$ 18.5tn economy, spurring exports and enhancing the diversification and competitiveness of Georgian products 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, the US and EU Developed, stable and competitively priced energy sector Only 20% of hydropower capacity utilized; 88 hydropower plants are in various stages of construction or development Georgia became a net electricity exporter in 2007-2011 (a net importer in 2012-2014 due to low precipitation and increased domestic demand) Georgia imports natural gas mainly from Azerbaijan Significantly boosted transmission capacity in recent years, a new 400 kV line to Turkey built, other transmission lines to Armenia and Russia upgraded Additional 5,000 MW transmission capacity development in the pipeline, facilitating cross-border electricity trade and energy swaps to Eastern Europe Maintaining healthy economic growth is a priority (potential to grow at an annual average 5% over the next decade) 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 New constitution amendments passed in 2013 to enhance governing responsibility of Parliament and reduce the powers of the Presidency Continued economic relationship with Russia, although economic dependence is relatively low Russia began issuing visas to Georgians in March 2009; Georgia abolished visa requirements for Russians Direct flights between the two countries resumed in January 2010 - Member of WTO since 2000, allowed Russia's access to WTO; In 2013 trade restored with Russia - In 9M15, Russia and Ukraine together accounted for 9.2% of Georgia's exports and 13.3% of imports; just 4.1% of cumulative FDI over 2004-2014 BGEO www.bgeo.com GROUP November 2015 page 50

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