Georgia Capital PLC Financial and Operational Report slide image

Georgia Capital PLC Financial and Operational Report

Listed Portfolio BANK OF GEORGIA BANK OF GEORGIA OVERVIEW http://bankofgeorgiagroup.com/ INVESTMENT RATIONALE • ° • • The first entity from Georgia to be listed on the premium segment of the Main Market of the London Stock Exchange (LSE: BGEO) since February 2012. High standards of transparency and governance. Leading market position¹ in Georgia by assets (38.5%), loans (37.2%), client deposits (40.1%) and equity (41.2%) as at 30 June 2023. Growing market: The banking sector's assets growth rate at 22.5% (CAGR over 2003-2Q23). Strongest retail banking franchise: 44.6% market share in deposits of individuals, 38.6% market share in individual loans, as of 30-Jun-23. Sustainable growth combined with strong capital, liquidity and robust profitability, with ROAE above 20%. VALUE CREATION POTENTIAL • Loan book y-o-y growth c.10%. Regular progressive semi-annual capital distribution with 30-50% dividend/share buyback payout ratio. 20%+ ROAE. OWNERSHIP Georgia Capital owns 19.62% of Bank of Georgia Group PLC. As long as Georgia Capital's stake in BoG is greater than 9.9%, it will exercise its voting rights in Bank of Georgia Group in accordance with the votes cast by all other shareholders on all shareholder votes at any general meeting. Banking business key medium-term targets ROAE 20%+ LOAN BOOK GROWTH C.10% Market opportunity Banking sector assets, loans and deposits CAGR 22.5% GEORGIA CAPITAL 70.0 69.9 60.6 56.9 47.2 47.3 44.7 43.0 39.7 38.2 34.6 31.9 46.8 30.1 44.3 25.2 26.6 37.2 20.6 22.3 34.6 17.3 1.3 0.8 1.7 0.9 2.51.7 4.22.7 7.2 8.9 10.6 12.7 14.4 13.0 8.3 4.6 6.0 5.2 6.3 7.7 8.7 10.5 0.7 1.0 1.3 2.1 3.2 3.6 4.0 5.5 7.6 9.7 11.6 GA 18.9 16.0 26.2 23.0 19.8 17.0 14.3 Deposits, GEL bln 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: NBG Assets, GEL bln Loans, GEL bln Robust capital management track record Maintain regular progressive semi-annual dividend payouts: aiming 30%-50% dividend/share buyback payout ratio. In 3Q23, GCAP received GEL 52.8 million final dividends (declared and accrued in 1H23) and GEL 11.8 million buyback dividends from participation in the Bank's buyback programme, corresponding to c.100,000 shares sold. Subsequent to 3Q23, GCAP received additional GEL 27.6 million interim dividends from BoG, up 52.3% compared to interim dividends received in 2022, notwithstanding the sale of c.775,000 BOG shares through the participation in the Bank's buyback programme since its resumption. Georgia Capital PLC | 1. Market data based on standalone accounts as published by the NBG www.nbg.gov.ge 47
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