#1BANK OF GEORGIA GROUP PLC INVESTOR PRESENTATION 3Q20 and 9M20 Financial Results 17 November 2020 www.bankofgeorgiagroup.com#2DISCLAIMER - FORWARD LOOKING STATEMENTS 2 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.#3CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW 3Q20 AND 9M20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 3#4о 60,000 50,000 Total cases (LHS) 40,000 30,000 - Total recoveries (LHS) 20,000 Daily new cases (RHS) 10,000 2/28/2020 3/11/2020 3/23/2020 4/4/2020 4/16/2020 4/28/2020 5/10/2020 5/22/2020 6/3/2020 6/15/2020 6/27/2020 7/9/2020 7/21/2020 8/2/2020 8/14/2020 8/26/2020 9/7/2020 9/19/2020 10/1/2020 VIRUS CASES RAPIDLY GROWING AND GOVERNMENT IS GRADUALY TIGTHENING UP RESTRICTIONS GOVERNMENT SAFETY MEASURES Daily new cases have surged since mid-October and Government introduced various targeted restrictions to contain the virus spread Georgia reopened its borders to the citizens of five EU countries Germany, France, Estonia, Latvia, and Lithuania from August 1st, and six more countries - Qatar, Greece, Poland, Netherlands, Italy and Austria from November 1st 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 COVID-19 STATISTICS IN GEORGIA 51,993 Confirmed cases 37,019 Recovered 4 Source: www.stopcov.ge at 12:00, 6 November 2020 14,974 Active cases 4,618 Under hospital supervision COVID-19 CASES PER 100,000 PERSONS Source: Johns Hopkins, Wordometers at 12:00, 6 November 2020 10/13/2020 10/25/2020 11/6/2020 Source: NCDC at 12:00, 6 November 2020 3,000 4,000 3,459 3,432 2,500 2,993 3,200 2,451 1,652 2,000 2,400 1,365 1,500 1,600 1,000 500 800 O Israel Armenia USA France UK Italy Georgia Poland Russia Belarus Ukraine Iran 1,304 1,234 1,093 1,188 1,009 776 738 705 609 599 479 457 412 6 Germany Lithuania Kazakhstan Azerbaijan Greece Turkey Estonia China#5GOVERNMENT'S SUPPORT MEASURES The Government announced a series of support measures designed to mitigate the negative economic impact of COVID-19. The Government's revised 2020 budget document was approved by Parliament in June 2020. The revised budget incorporates the fiscal parameters agreed with the IMF, US$1.5 billion in donor funding and fiscal stimulus measures for businesses and households affected by the coronavirus pandemic. Business support is at 3.8% of GDP and social assistance is at 2.8% of GDP in 2020 revised budget document. Government also plans to introduce economic support measures in 2021 budget, with final draft to be available in December 2020. 5 SUPPORT TO BUSINESSES | 2020 BUDGET Support package for businesses amounts to GEL 1.889 billion, or 3.8% of GDP, and incorporates: GEL 330 million for credit-guarantee scheme GEL 600 million for local currency liquidity resources allocation to commercial banks GEL 180 million for support to agriculture sector, and construction sector, including interest rate subsidies on mortgage loans GEL 115 million for support to tourism sector, including subsidies on loan interest payments and exemption of property tax payments for hotels GEL 45 million for subsidies on flights and quarantine services support GEL 600 million additional VAT refund for businesses GEL 20 million for various support measures With the support of local banks, legal entities were given the opportunity of loan restructuring SUPPORT TO INDIVIDUALS | 2020 BUDGET Social assistance package for individuals amounts to GEL 1.375 billion, or 2.8% of GDP, and comprises: coverage of healthcare-related costs in respect of COVID-19; healthcare system preparedness improvement; one-off compensation for self- employed persons who lost their jobs; six-month compensation for private sector employees who lost their jobs; income tax relief to businesses who retain workers for six months; six-month compensation for vulnerable and large families, as well as adults and children with disabilities; subsidies for three-month utility bill payments. INTERNATIONAL SUPPORT Georgian authorities have mobilised US$3.0 billion financing from the International Monetary Fund (the "IMF") and other international partners (US, EU, World Bank, KFW, AFD, EBRD, EIB, ADB, etc.) to respond effectively to the COVID-19 pandemic associated economic crisis. Of this funding, US$1.5 billion is earmarked for the public sector and US$1.5 billion for the private sector. The IMF's financing is c.US$400 million, of which US$200 million was already disbursed to the budget. Source: MOF#6NATIONAL BANK OF GEORGIA SUPERVISORY PLAN National Bank of Georgia In March 2020, NBG introduced an updated Supervisory Plan for the banking sector with immediate effect, aimed at alleviating the negative financial and economic challenges created by the global 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 as far as possible, 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 has been 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, 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 During the period the banks are allowed to partially or fully use these buffers, they are restricted to make capital distribution in any form This supervisory relief frees up GEL 1.6 billion of capital, which can be used for absorbance of potential losses or funding the real economy with GEL 16 billion. The banking sector has capital buffer of GEL 4 billion above the minimum requirements, which can be fully released in case of necessity General loan loss provisioning relating to COVID-19: 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, given current economic expectations. The NBG considers the banking system capital ratios to be sufficiently in excess of the expected minimum capital requirements, to be able to absorb this upfront general provision, whilst maintaining sufficiently comfortable buffers over the required minimum capital ratios Liquidity initiatives 6 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, NBG temporarily cancelled the 75% LCR requirement for local currency for a one-year period, or until further communicated by NBG Mandatory reserve requirements may be revisited and reduced, if necessary The eligibility criteria for repo-eligible securities has already been extended by NBG and may be revisited further, if necessary, to support GEL liquidity Other initiatives The deadline for submitting previously planned stress testing results to NBG was postponed until the end of May, 2020 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 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 ("BCP"). BCP focuses on three main pillars: Operating continuity and efficiency (employees, customers and community), capital, and liquidity and funding positions EMPLOYEES Anticipated national lockdown and promptly shifted all of our 2,000+ back office employees to remote work Implemented extensive measures in the front office safety Provided transportation to front office employees CUSTOMERS Offered 3-month payment holidays on retail loans Strengthened safety measures in cash vault and ensured uninterrupted cash supply Enabling businesses to adapt operations and switch to digital sales Enabling more retail customers to go digital by launching mBank without data package and removing fees on mBank/iBank transactions for 2 months SUPPORTING PUBLIC HEALTH Financed and donated 20,000 PCR tests, 10 respirators, 50,000 face. masks and 60,000 gloves to the Ministry of Health of Georgia Implemented maximum measures in our branches safety 7 CAPITAL ADEQUACY 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 IQUIDITY AND FUNDING Strong liquidity and funding positions even following the repayment of GEL 500 million local currency bonds due in June 2020 Strong support from IFIs: The Bank achieved commitments for US$200 million from IFIs during the first nine months of 2020 Maintaining high liquidity given COVID-19-related uncertainty#8TRACKING GEORGIA'S ECONOMIC RECOVERY 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% Jan-20 Feb-20 Mar-20 Remmitances +6.2% 28.7% KEY INDICATORS SHOW IMPROVING TREND, WHILE REMITTANCES REBOUNDED STRONGLY Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Exports -12.1% 8.6% Jun-20 Jul-20 Aug-20 Sep-20 Jan-20 Feb-20 Mar-20 % change y/y Apr-20 May-20 Jun-20 Jul-20 Aug-20 Imports -15.9% Trade deficit -18.5% GDP growth -5.0% 30% -9.0% -19.8% Sep-20 Jan-20 Feb-20 Mar-20 Apr-20 Annual % change in 9M20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Source: Geostat, NBG 20% 10% 0% -0.7% -10% -20% -30% -40% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 -50% 8#910% 8% 6% 4% 2.4% 2% 0% -2% -4% -3.7% -6% -8% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 GEORGIA'S ECONOMIC GROWTH FORECAST 7.4% 6.4% 6.2% 2018 GEORGIA'S ECONOMIC OUTLOOK IN 2020 AND 2021 Source: Geostat, Galt & Taggart 4.4% 4.8% 4.8% 5.1% 5.0% 3.6% 3.0% 2.9% 2019 2020F -5.1% 2021F Our brokerage and investment arm, Galt & Taggart forecasts GDP to contract by 5.1% in 2020 In 2021, Galt & Taggart forecasts growth to rebound to 5% in baseline scenario, assuming tourism to recover to 50% of 2019 level in 2021 IMF revised 2021 growth projection downwards, from 5% to 4.3% recently. Reasons for this downward revision are uncertainty associated with the regional conflict and the increased number of COVID-19 cases in Georgia#10CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW 3Q20 AND 9M20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 10#11BANK OF GEORGIA GROUP AT A GLANCE 11 RETAIL BANKING BANK OF GEORGIA GROUP PLC CORPORATE AND INVESTMENT BANKING WEALTH MANAGEMENT BNB (BANK IN BELARUS) BANK OF GEORGIA'S CREDIT RATINGS Outlook Agency MOODY'S Rating Ba3/Ba2 Stable Fitch Ratings BB- Negative 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: - 41% market share in deposits of individuals Most trusted bank in Georgia* Leader in payments and financial mobile app: 48% BOG share in number of transactions in POS terminals c. 6mln transactions in mobile app per month Sustainable high profitability with average ROAE of more than 20% over the last four years 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 MAY-20 external research by IPM Georgia#12STRONG INSTITUTIONAL INVESTORS SUPPORT BANK OF GEORGIA GROUP PLC TOP SHAREHOLDERS Rank Shareholder name As of 30 Sep 2020 Ownership SHAREHOLDER STRUCTURE 12 As of 30 Sep 2020 1 JSC Georgia Capital* 19.90% 2 Fidelity Investments 4.66% 2% 3% 3 Harding Loevner LP 4.55% Unvested and unawarded shares for management and employees ■Vested shares held by management and employees ■ US 4 Van Eck Associates Corporation 3.30% 34% 28% UK/Ireland 5 Dimensional Fund Advisors (DFA) LP 3.03% 6 Jupiter Asset Management 2.72% 7 Norges Bank Investment Management 2.56% 4% 4% ■Scandinavia ■Luxembourg 25% 8 Grandeur Peak Global Advisors LLC 2.40% Other** 9 Vanguard Group Inc 2.10% 10 Standard Life Investments 2.09% * 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#13TRACK RECORD OF DELIVERING STRONG RESULTS Key medium targets remain unchanged Nominal Real 26.4% 25.2% 26.1% 27.0% 22.2% ROAE 20%+ III 24.5% 21.4% Loan book growth 17.4% c.15% 22.0% 15.9% 19.0% 16.1% 2016 T 2017 2018* 2019** 2016 2017 2018 2019 ROBUST CAPITAL MANAGEMENT TRACK RECORD Capital position: We aim 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 GEL 648mln+ cash dividend paid during 2013-2019, within the targeted payout range over past 7 years 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 REGULAR DIVIDENDS PAYOUT 30% 36% 33% 34% 32% 30% 30% RATIO: 4.0% 4.2% 3.1% 3.1% 3.2% 2.4% 2.7% GEL MILLIONS 122 124 98 102 72 80 51 2013 2014 2015 2016 2017 2018 2019 Total dividend paid during the year Dividend yield** 13#14CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW 3Q20 AND 9M20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 14#15PROFITABILITY COMING BACK TO TARGETED LEVEL 15 3Q20 PERFORMANCE HIGHLIGHTS Bank of Georgia's performance has been very strong in the third quarter: The balance sheet has remained strong with better than expected levels of growth Revenue growth has been excellent. Net fee and commission income increased by 38.4% quarter-on-quarter, with net interest income growing at 16.6% q-o-q Net interest margin increased by 60 basis points, to 4.8%, in 3Q20 Asset quality has remained robust. Our lending portfolio has performed better than expected Costs have been well-managed with a 2.4% quarter-on- quarter reduction in operating expenses, following a review of our variable cost base. Our capital ratios have remained robust and comfortably above our minimum regulatory requirements Delivering superior levels of profitability - annualised return on average equity was 26.0% in 3Q20 ROAE 29.9% 26.8% 24.5% 26.0% 22.9% 24.7% 21.8% 18.8% 20% 9.9% 1Q19* 2Q19* 3Q19 4Q19 1Q20 2Q20 3Q20 9M19*9M20** -18.6% ■ROAE ROAE normalised** * 1Q19 and 2Q19 ROAE are adjusted for termination costs of former CEO and executive management ** 9M20 ROAE normalised for cost of credit risk (1.2% for RB and 0.8% for CIB), one-off modification losses incurred on loan restructurings and COVID-19 related other one-off costs#163Q20 AND 9M20 RESULTS HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS* GEL thousands unless otherwise noted 3Q20 3Q19 Change y-o-y Change 2Q20 9M20 9M19 9-0-9 Change y-o-y Net interest income Net fee and commission income Net foreign currency gain. Net other income Operating income 204,030 45,532 19,179 7,750 200,992 48,009 32,233 1.5% 174,936 16.6% 576,047 582,327 -5.2% 32,901 38.4% 118,545 133,456 -1.1% -11.2% -40.5% 22,743 -15.7% 72,583 82,186 -11.7% 276,491 3,728 284,962 107.9% 9,081 -14.7% 23,457 3,035 NMF -3.0% Operating expenses (102,612) (107,917) Profit from associates 214 194 Operating income before cost of risk 174,093 177,239 Cost of risk (10,942) (15,223) -4.9% 10.3% -1.8% -28.1% 239,661 (105,158) 113 134,616 (10,221) 15.4% -2.4% 89.4% 29.3% 7.1% 790,632 (313,778) 801,004 -1.3% (298,401) 5.2% 628 477,482 (262,566) 636 503,239 (93,351) -1.3% -5.1% NMF Net operating income before non-recurring items 163,151 162,016 0.7% 124,395 31.2% 214,916 409,888 -47.6% Net non-recurring items 254 (5,019) NMF Profit before income tax and one-off costs 163,405 156,997 Income tax expense (15,051) Profit adjusted for one-off costs 148,354 (22,697) 134,300 4.1% -33.7% 10.5% (1,241) 123,154 (8,470) 114,684 NMF (41,332) (9,132) 32.7% 173,584 400,756 77.7% (10,491) (43,104) 29.4% 163,093 357,652 NMF -56.7% -75.7% -54.4% One-off termination costs of the former CEO and executive management (after tax) Profit (14,236) NMF 148,354 134,300 10.5% 114,684 29.4% 163,093 343,416 -52.5% The income statement adjusted profit in 9M19 excludes GEL 14.2mln one-off employee costs (net of income tax) related to former CEO and executive management termination benefits. The amount is comprised of GEL 12.4mln (gross of income tax) excluded from salaries and other employee benefits, GEL 4.0mln (gross of income tax) excluded from non-recurring items and GEL 2.2mln tax benefit excluded from income tax expense. Full IFRS income statement is presented on page 74 16 Cost of risk: The higher cost of risk in 9M20 was driven by ECL provisions, created for the full economic cycle in both the Retail and Corporate and Investment Banking segments, in the first quarter of 2020, on the back of COVID-19 pandemic. See details in 2Q20 and 1H20 results release Net non-recurring items: The Group recorded a GEL 38.7mln in March and GEL 1.0min in April 2020. one-off net loss on modification of financial assets in relation to the three-month payment holidays on principal and interest offered to retail customers, in order to reduce the requirement for customers to physically visit Bank branches and reduce the risk of COVID-19 virus spread. See details in 2Q20 and 1H20 results release#173Q20 AND 9M20 RESULTS HIGHLIGHTS BALANCE SHEET HIGHLIGHTS* KEY RATIOS* 17 GEL thousands Sep-20 Sep-19 Change y-o-y Jun-20 Change 9-0-9 3Q20 3Q19 2Q20 9M20 9M19 Liquid assets 6,339,663 Cash and cash equivalents 2,154,224 Amounts due from credit 1,980,195 institutions Investment securities 2,205,244 5,099,111 1,369,169 1,834,220 1,895,722 24.3% 57.3% 8.0% 16.3% 5,447,730 1,633,755 1,700,075 2,113,900 ROAA** 3.0% 3.2% 2.4% 1.1% 3.0% 16.4% 31.9% 16.5% ROAE** 26.0% 26.8% 21.8% 9.9% 24.7% Net interest margin. 4.8% 5.4% 4.2% 4.7% 5.7% Loan yield 10.7% 11.5% 10.2% 10.6% 11.8% 4.3% Liquid assets yield 3.3% 3.2% 3.4% 3.5% 3.4% Loans to customers and finance Cost of funds 4.7% 4.5% 4.8% 4.8% 4.5% lease receivables 13,627,144 11,339,745 20.2% 12,599,092 8.2% Cost of client deposits and notes 3.8% 2.9% 3.5% 3.5% 3.0% Property and equipment 390,401 Total assets 21,166,953 Client deposits and notes 12,985,039 Amounts owed to credit institutions 3,757,646 Borrowings from DFIs 1,807,472 Short-term loans from NBG 874,153 364,405 7.1% 17,540,692 20.7% 9,613,718 35.1% 3,437,718 9.3% 1,355,426 33.4% 1,271,027 -31.2% 396,272 19,183,966 11,583,139 3,521,860 1,755,656 847,213 -1.5% 10.3% 12.1% 6.7% Cost of amounts owed to credit institutions Cost of debt securities issued 6.9% 6.8% 7.3% 7.3% 7.0% 7.0% 7.7% 7.7% 7.5% 7.6% Cost Income**** 37.1% 37.9% 43.9% 39.7% 37.3% 3.0% NPLs to gross loans to clients NPL coverage ratio 3.8% 76.8% 3.2% Loans and deposits from NPL coverage ratio, adjusted for discounted value of collateral 2.9% 85.3% 115.7% 131.4% 129.3% 166.3% 2.7% 3.8% 2.9% 76.8% 85.3% 131.4% 129.3% 1,076,021 811,265 32.6% 918,991 17.1% commercial banks Cost of credit risk ratio 0.2% Debt securities issued Total liabilities Total equity 1,628,188 18,795,816 2,371,137 2,175,820 -25.2% 1,561,933 15,500,833 21.3% 16,984,167 2,039,859 16.2% 2,199,799 4.2% 10.7% 7.8% NBG (Basel III) CET1 capital adequacy ratio NBG (Basel III) Tier I capital adequacy ratio NBG (Basel III) Total capital adequacy ratio 9.9% 12.0% 17.3% 0.5% 11.1% 13.3% 12.0% 16.8% 17.4% -0.2% 2.4% 1.1% 9.9% 9.9% 11.1% 12.0% 13.3% 17.3% 16.8% The detailed financials of the Group are presented on pages 74-79 ** The 9M19 ROAA and ROAE are adjusted for GEL 14.2 one-off employee costs (net of income tax), related to termination benefits of the former CEO and executive management *** The 9M19 cost/income ratio is adjusted for GEL 12.4mln one-off employee costs (gross of income tax), related to termination benefits of former executive management#18THE COMPETITION Leading market position in Georgia by assets (35.6%), loans (34.8%), client deposits (37.9%) and equity (31.2%) MARKET SHARE IN GROSS LOANS 34.8% 39.3% 4.1% 3.7% 3.6% 14.4% 18 MARKET SHARE IN CLIENT DEPOSITS 37.9% 38.3% 10.2% 6.4% 4.4% 2.8% BOG TBC LB VTB PCB Others BOG TBC LB VTB PCB Others ■Dec-18 Dec-19 Sep-20 ■Dec-18 ■Dec-19 ■Sep-20 Top two banks hold more than 70% of market share Bank of Georgia has consistently been gaining market share on all fronts, and delivering 20%+ ROAE at the same time Increase in market share in deposits of individuals underlines the strength of Bank of Georgia's franchise. See details on page 33 Market data based on standalone accounts as published by the National Bank of Georgia (NBG) as of 30 September 2020 www.nbg.gov.ge#19STRONG UNDERLYING PERFORMANCE AMID COVID-19 IMPACT OPERATING INCOME | QUARTERLY -3.0% +15.4% 285.0 276.5 239.7 84.0 29% 201.0 71% 174.9 64.8 27% 73% 72.5 26% 74% 204.0 3Q19 2Q20 3Q20 I Net interest income Net non-interest income NET NON-INTEREST INCOME | QUARTERLY -13.7% +12.0% 84.0 3.8 72.5 64.8 7.8 32.2 9.2 19.2 22.7 48.0 32.9 45.5 3Q19 2Q20 3Q20 Net other income/ (expense) Net fee and commission income Net foreign currency gain OPERATING INCOME | NINE MONTHS 801.0 218.7 27% 582.3 73% 9M19 -1.3% 790.6 214.6 27% 576.0 73% 9M20 ■Net interest income Net non-interest income NET NON-INTEREST INCOME | NINE MONTHS 218.7 3.0 82.2 133.5 -1.9% 214.6 23.5 72.6 118.5 9M20 19 9M19 Net other income / (expense) I Net fee and commission income Net foreign currency gain#20STRONG UNDERLYING PERFORMANCE AMID COVID-19 IMPACT OPERATING EXPENSES | QUARTERLY -4.9% OPERATING EXPENSES* | NINE MONTHS +5.2% -2.4% 107.9 105.2 102.6 0.8 0.9 0.9 21.3 21.1 19.1 26.3 22.5 24.4 298.4 3.2 54.3 71.0 169.9 59.5 60.7 58.2 3Q19 2Q20 Other operating expenses Administrative expenses 3Q20 Depreciation, amortisation and impairment Salaries and other employee benefits 9M19 Other operating expenses Administrative expenses COST/INCOME | QUARTERLY Operating Leverage: +1.9% y-o-y +17.8% q-o-q 43.9% 37.9% 3Q19 2Q20 37.1% 3Q20 313.8 2.8 61.7 73.9 175.4 20 9M20 Depreciation, amortisation and impairment Salaries and other employee benefits COST/INCOME* | NINE MONTHS Operating Leverage*: -6.4% y-o-y 37.3% 39.7% 9M19 9M20 * The 9M19 operating expenses, cost to income ratio and operating leverage are adjusted for one-off costs. Please see details on one-offs on page 74#21SOLID INCOME NOTWITHSTANDING PRESSURE ON YIELDS LOAN YIELDS | QUARTERLY LOAN YIELDS | NINE MONTHS 11.5% 10.2% 10.7% 14.2% 13.5% 11.7% 10.6% 58.9% 60.3% 60.6% 61.7% 61.7% 58.5% 60.6% 41.1% 39.7% 39.4% 38.3% 38.3% 41.5% 39.4% 3Q19 2Q20 3Q20 2017 2018 2019 9M20 I Net loans, FC Net loans, FC Net loans, GEL Currency-blended loan yield, annualised Net loans, GEL -Currency-blended loan yield, annualised LOAN YIELDS, LOCAL CURRENCY 17.3% 16.5% 15.3% 14.7% 15.6% LOAN YIELDS, FOREIGN CURRENCY 21 8.2% 7.5% 8.2% 7.3% 7.5% 3Q19 2Q20 3Q20 9M19 9M20 3Q19 2Q20 3Q20 9M19 9M20#22STABLE COST OF FUNDING COST OF CUSTOMER FUNDS | QUARTERLY COST OF CUSTOMER FUNDS | NINE MONTHS 2.9% 3.5% 3.8% 3.5% 3.5% 3.0% 3.5% 69.3% 62.9% 63.4% 69.5% 67.5% 69.3% 63.4% 30.7% 37.1% 36.6% 30.5% 32.5% 30.7% 36.6% 3Q19 2Q20 3Q20 2017 2018 2019 9M20 Client deposits and notes, FC Client deposits and notes, GEL Currency-blended cost of client deposits, annualised I Client deposits and notes, FC Client deposits and notes, GEL Currency-blended cost of client deposits and notes COST OF FUNDS | QUARTERLY 4.5% 4.8% 4.7% COST OF FUNDS | NINE MONTHS 4.7% 5.0% 4.8% 4.6% 3Q19 2Q20 3Q20 2017 2018 2019 9M20 22#23DIVERSIFIED ASSET STRUCTURE AND LOAN PORTFOLIO TOTAL ASSETS | SEP-20 LIQUID ASSETS | SEP-20 Total: GEL 21.2bln Total: GEL 6.3bln Other assets 5.6% Liquid assets 30.0% bonds, treasury bills, Other liquid assets Government 15.2% Cash and equivalents 34.0% Loans to Amounts customers, net 64.4% LOANS BREAKDOW | SEP-20 Total Gross Loans by segments Bank of Georgia standalone Total: GEL 13.2bln CIB loans, GEL 4,518.2 Retail loans min, GEL 8,660.1 34.3% mln, 65.7% Credit. cards and overdrafts 2.4% Retail Banking Net Loans by product Total: GEL 8.4bln NBG CDs 19.6% due from credit institutions 31.2% 23 Corporate and Investment Banking Mining and quarrying. 2.8% Transport and Communication 4.0% Gross Loans by sectors Total: GEL 4.5bln Other 12.1% Service 3.2% Manufacturing 21.4% Other General 2.1% consumer loans Mortgage 19.2% loans 41.7% Micro and SME loans 34.6% Construction 1.6% Development 7.1% Agro ✓ 10.0% Commercial real estate 11.1% Trade 14.3% Hospitality 12.4%#24LOAN PORTFOLIO BREAKDOWN RETAIL BANKING | SEP-20 JSC Bank of Georgia standalone GEL millions 8,660 4,716 3,944 CORPORATE INVESTMENT BANKING | SEP-20 JSC Bank of Georgia standalone 2.8% 2.9% 244 3.5% 165 GEL millions 4,518 129 1.2% 10 769 120 3,749 3.2% 79 2.0% 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 Loan portfolio Allowance for ECL FC GEL ECL rate 24 RB Loan portfolio 4,716 646 3,298 8,660 % of total RB loan portfolio 54.5% Consumer Mortgages SME & Micro loans* CB & WM Loan portfolio % of total CIB loan portfolio 1,512 1,810 7.5% 502 86 1,394 58 769 17.0% 1,899 42.0% 38.1% 1,537 217 1,544 1,850 40.9% 100.0% 3,551 2,114 2,996 4,518 100.0%#25RESILIENT LOAN PORTFOLIO QUALITY 25 EXPECTED CREDIT LOSS NPL COMPOSITION 3.5% NPL 92.7% 90.5% 80.9% 76.8% 3.0% 2.9% coverage 3.8% 3.3% 3.8% 2.1% 531 1.7% 22 301 318 408 253 265 49 27 279 288 159 204 185 18 244 133 68 114 Dec-17 Dec-18 Dec-19 Sep-20 Dec-17 Dec-18 Dec-19 Allowance for ECL, GEL mln Allowance for ECL as % of gross loans. INPLs RB, GEL mln INPLs Other, GEL mln Sep-20 NPLS CIB, GEL mln NPLs to gross loans COST OF CREDIT RISK -70bps +130bps 2.4% 2.2% 1.6% 0.9% 1.1% 1.1% 2017 2018 2019 9M19 9M20 Cost of credit risk ratio normalised* * Normalised cost of credit risk - 1.2% for RB and 0.8% for CIB Cost of credit risk ratio GEL millions COST OF RISK -32.8% INCREASE IN 9M20 DUE TO COVID-19 167 160 108 93 263 2017 2018 2019 9M19 9M20#26GEL millions STRONG LIQUIDITY LIQUID ASSETS TO TOTAL LIABILITIES LCR AND NSFR 26 JSC Bank of Georgia standalone (Basel III Liquidity) 38.3% 34.9% 33.9% 33.7% 11,355 13,000 133.6% 136.7% 147.0% 125.5% 16,419 18,796 132.5% 137.5% 100.3% 120.1% 4,347 4,540 5,560 6,340 Dec-17 Liquid assets Dec-18 Total liabilities Dec-19 Sep-20 Liquid assets to total liabilities NET LOANS TO CUSTOMER FUNDS & DFIS 115.5% 118.4% 109.4% 104.9% 103.2% 99.6% 89.0% 92.1% Dec-17 Dec-18 Dec-19 Sep-20 Net loans to customer funds & DFIs Net loans to customer funds GEL millions Dec-17 Dec-18 Liquidity coverage ratio Dec-19 Sep-20 Net stable funding ratio * 2018-2020 ratios are calculated for standalone Bank of Georgia according to NBG guidelines CUMULATIVE MATURITY GAP | SEP-20 1,944 9.2% 1,419 6.7% 1,050 1,497 7.1% -11.0% 5.0% -14.6% (3,097) (2,338) On Demand 0-3 Months 3-6 Months Maturity gap - 6-12 Months Maturity gap, as % of total assets 1-3 Years >3 Years#27STRONG CAPITAL ADEQUACY POSITION NBG MEASURES AS A RESPONSE TO COVID-19 NBG's COVID-19 Supervisory Plan effective since March 2020: Combined buffer - the conservation buffer requirement of 2.5% of risk- weighted assets has been 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 the banks are allowed to partially or fully use the Pillar 2 and conservation buffers, the banks are restricted to make capital distribution in any form; General loan loss provisioning relating to COVID-19. The Bank's actual capital adequacy position at 30 June 2020 considers the additional general provision of GEL 400 million (approximately 3.3% of the Bank's lending portfolio subject to provision under the local regulatory accounting standards) booked under the Bank's local regulatory accounting basis in March 2020, which is used for calculation of the Bank's capital ratios, reflecting NBG's expectation of estimated credit losses on the Bank's lending book for the whole economic cycle, given current economic expectations. CAPITAL ADEQUACY RATIOS 16.8% 18.1% 13.3% 13.6% 11.1% Sep-19 27 17.4% 17.3% 15.3% 12.0% 12.0% 10.6% 9.9% 9.9% 11.5% 8.3% Dec-19 Mar-20 Jun-20 Sep-20 Tier I Capital Adequacy Ratio CET1 Capital Adequacy Ratio ■Total Capital Adequacy Ratio REGULATORY REQUIREMENTS 17.1% 16.1% 11.6% 12.2% 9.5% 10.1% Sep-19 13.3% 13.3% 13.2% 8.7% 8.7% 8.7% 6.9% 6.9% 6.9% Dec-19 Mar-20 Jun-20 Sep-20 CET1 Capital Adequacy Ratio Total Capital Adequacy Ratio Tier I Capital Adequacy Ratio#28STRONG INTERNAL CAPITAL GENERATION CAPITAL RATIOS EVOLUTION DURING 9M20 28 9M20 NBG Potential Capital ratios DEC-19 profit general New Tier 2 Capital Business growth (excl. NBG provision - GEL Devaluation general COVID-19 facility impact ratios impact of additional SEP-20 10% GEL provision) impact devaluation CET1 capital adequacy ratio 11.5% -0.4% 2.3% -2.6% -0.9% 9.9% -0.7% Tier I capital adequacy ratio 13.6% -0.6% 2.3% -2.5% -0.8% 12.0% -0.6% Total capital adequacy ratio 18.1% -0.9% 2.3% -2.4% -0.7% 0.9% 17.3% -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 first nine months of 2020 Tier 2 subordinated facility: in April 2020, the Bank drew down a $55 million second tranche of the Tier 2 capital instrument initially arranged in December 2019#29STRONG CAPITAL ADEQUACY POSITION BOG EQUITY VS. CET1 REG. CAPITAL | SEP-20 % of 9.9% 2.7% 0.9% RWAS 1.8% 266 2,310 132 415 GEL millions 1,496 3.6% GEL millions RISK WEIGHTED ASSETS 29 13,585 13,868 14,641 15,162 14,099 NBG CET1 Capital Loan IP Other provisioning provisioning deductions* methodology methodology difference difference BOG Equity (IFRS) Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 * Revaluation reserve, investments in non-financial subsidiaries and intangible assets Existing additional capital buffers (within c.3.6% of risk-weighted assets) reflecting differences in provisioning methodology between NBG and IFRS 9 NBG plans to transition to IFRS-based financial reporting during 2021-2022#30US$ millions WELL-ESTABLISHED FUNDING STRUCTURE | SEP-20 INTEREST BEARING LIABILITIES Interest Bearing Liabilities GEL 18.4bln Borrowin gs 12.6% Debt securities issued 8.9% Other amounts owed to CI 7.9% Client deposits & notes 70.7% Current accounts & demand deposits, 43.7% Time deposits, 56.3% BORROWED FUNDS MATURITY BREAKDOWN* 422 1.7% 6.6% 2.1% 0.3% 2.0% 0.6% 0.1% 339 0.7% 0.0% 0.0% 133 90 108 83 9 127 20 40 48 43 2020 2021 2022 2023 2024 2025 2026 2027 Subordinated Loans Senior Loans converted at GEL/US$ exchange rate of 3.2878 at 30 September 2020 2028 2029 Eurobonds % of Total assets 30 WELL DIVERSIFIED INTERNATIONAL BORROWINGS S European Bank for Reconstruction and Development ADB IFC LEFSE FMO EUROPEAN FUND FOR SOUTHEAST EUROPE Black Sea Trade & Other debt Others securities, borrowings, GEL 256mln, 6.5% GEL 502min, 12.7% Eurobonds, GEL 1,372mln, 34.9% DFIs, GEL 1,808mln, 45.9% Finance for Development Development Bank STRONG FUNDING PIPELINE c.GEL 463 million undrawn long-term loan facilities from DFIs at 30 September 2020 with up to seven years of maturity Liquidity and funding positions remain strong, following repayment of GEL 500 million local currency bonds in June 2020 Liquidity management: US$19.3 million Eurobonds due 2023 repurchased since July 2020#31RETAIL BANKING HIGHLIGHTS AT 30 SEP 2020 FOR JSC BANK OF GEORGIA STANDALONE Segments Clients 1 2 BANK OF GEORGIA Mass Retail 2,300 k SOLO Mass Affluent 58 k 3 BANK OF GEORGIA BUSINESS MSME 228k 31 Loans GEL 2,843 mln GEL 2,627 mln GEL 3,190 mln Deposits GEL3,198min GEL 2,624 mln GEL 877 mln 3Q20 profit GEL 30 mln GEL 28 mln GEL 23 mln P/C ratio 2.1 4.9 1.5 Branches 194 11 1#32RETAIL BANKING HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS 32 Change Change Change GEL thousands unless otherwise noted 3Q20 3Q19 2Q20 9M20 9M19 y-o-y q-o-q y-o-y Net interest income Net fee and commission income Net foreign currency gain Net other income / (expense) 126,837 142,202 -10.8% 102,667 23.5% 347,771 410,861 -15.4% 34,744 36,696 -5.3% 22,184 56.6% 86,325 103,735 -16.8% 14,245 14,410 -1.1% 7,525 89.3% 43,404 36,214 19.9% 3,477 581 NMF 4,085 -14.9% 9,467 (1,002) NMF Operating income 179,303 193,889 -7.5% 136,461 31.4% 486,967 549,808 -11.4% Salaries and other employee benefits (40,481) (37,732) 7.3% (41,826) -3.2% (122,876) (108,296) 13.5% Administrative expenses (18,199) (17,585) 3.5% (16,898) 7.7% (55,829) (48,374) 15.4% Depreciation, amortisation and impairment (15,704) (17,973) -12.6% (17,610) -10.8% (51,203) (45,753) 11.9% Other operating expenses (510) (379) 34.6% Operating expenses (74,894) (73,669) Profit from associate 214 194 1.7% 10.3% (550) (76,884) -7.3% (1,608) (1,666) -3.5% -2.6% 113 89.4% Operating income before cost of risk 104,623 120,414 -13.1% 59,690 75.3% (231,516) 628 256,079 (204,089) 13.4% 636 -1.3% 346,355 -26.1% Cost of risk (16,238) (16,831) -3.5% (5,757) NMF (164,076) (82,760) 98.3% Net operating income before non-recurring items 88,385 103,583 -14.7% 53,933 63.9% 92,003 263,595 -65.1% Net non-recurring items 219 (575) NMF (1,249) NMF (39,959) (915) NMF Profit before income tax and one-off costs 88,604 103,008 -14.0% 52,684 68.2% 52,044 262,680 -80.2% Income tax (expense) / benefit (7,508) (14,060) -46.6% (3,214) 133.6% 493 (26,484) NMF Profit adjusted for one off costs 81,096 88,948 -8.8% 49,470 63.9% 52,537 236,196 -77.8% One-off termination costs (after tax)* (10,142) NMF Profit 81,096 88,948 -8.8% 49,470 63.9% 52,537 226,054 -76.8% The income statement adjusted profit in 9M19 excludes GEL 10.1min one-off employee costs (net of income tax) related to the former CEO and executive management termination benefits LOAN YIELD 15.1% 16.1% 12.9% 11.5% 48.8% 50.3% 43.7% 45.9% COST OF CLIENT DEPOSITS 2.9% 2.9% 2.9% 2.6% 72.1% 69.7% 68.0% 69.1% 51.2% 49.7% 56.3% 54.1% 27.9% 30.3% 32.0% 30.9% 2017 2018 2019 9M20 2017 2018 2019 9M20 Net loans, FC Currency-blended loan yield Net loans, GEL Client deposits, FC Client deposits, GEL Currency-blended cost of deposits#33GEL millions RETAIL BANKING LOANS AND DEPOSITS MARKET SHARE-LOANS TO INDIVIDUALS 38.8% 37.5% 35.5% MARKET SHARE - DEPOSITS TO INDIVIDUALS 40.3% 38.0% 36.9% 34.6% 41.1% Dec-17 Dec-18 Dec-19 Sep-20 Dec-17 Dec-18 Dec-19 Sep-20 RETAIL BANKING LOANS 7,428 6,267 5,044 +13.3% 8,417 2017 2018 2019 3Q20 GEL millions RETAIL BANKING DEPOSITS +17.3% 5,713 4,339 3,267 6,699 2017 2018 2019 3Q20 33#34RETAIL BANKING LOAN YIELD, COST OF DEPOSITS AND NIM RETAIL BANKING LOAN YIELD I QUARTERLY 12.8% 11.1% 11.7% 17.0% 14.9% 15.8% 7.5% 6.6% 6.7% RETAIL BANKING LOAN YIELD I NINE MONTHS 13.1% 11.5% 17.9% 15.5% 7.5% 6.7% Loan Yield ■ 3Q19 Loan yield, GEL 2Q20 Loan yield, FC ■ 3Q20 Loan Yield Loan yield, GEL 9M19 9M20 Loan yield, FC RETAIL BANKING COST OF DEPOSITS I QUARTERLY RETAIL BANKING COST OF DEPOSITS I NINE MONTHS 6.1% 34 6.4% 6.3% 5.1% 5.0% 2.6% 2.9% 3.1% 2.7% 2.9% 1.5% 1.4% 1.5% 1.6% 1.4% Cost of deposits Cost of deposits, GEL Cost of deposits, FC 3Q19 2Q20 ■3Q20 Cost of deposits Cost of deposits, GEL 9M19 9M20 Cost of deposits, FC RETAIL BANKING NIMI QUARTERLY 6.1% 4.0% 4.8% 3Q19 2Q20 3Q20 RETAIL BANKING NIMI NINE MONTHS 6.3% 4.6% 9M19 9M20#35RETAIL BANKING - LEADING RETAIL BANK IN GEORGIA 35 RETAIL BANKING CLIENT DATA MORTGAGE LOANS DOLLARISATION Operating Data, GEL mln Sep-20 Number of total Retail clients, of which: 2,579,011 Number of Solo clients 58,351 Consumer loans & other outstanding, volume Consumer loans & other outstanding, number Mortgage loans outstanding, volume Mortgage loans outstanding, number 1,892 Dec-19 2,540,466 54,542 1,726 447,404 472,791 Dec-18 2,440,754 44,292 1,555 566,740 Dec-17 5% 2,315,038 32,104 1,480 738,694 23% 26% 42% 43% 3,551 50,542 3,043 46,907 2,539 39,007 1,706 26,643 95% 77% 74% 58% 57% Micro & SME loans outstanding, volume 2,996 2,523 2,005 1,637 Micro & SME loans outstanding, number 79,377 81,739 Credit cards and overdrafts outstanding, volume 222 245 68,832 290 53,732 308 Credit cards and overdrafts outstanding, number Credit cards outstanding, number, of which: 350,898 395,012 454,512 304,621 395,536 547,038 American Express cards 95,592 99,307 105,899 480,105 673,573 97,178 Dec-16 Dec-17 Dec-18 Dec-19 Sep-20 Mortgage loans, FC Mortgage loans, GEL RETAIL BANKING PORTFOLIO I 30 SEP 2020 Net Loans by products Total: GEL 8.4bln Deposits by currency Total: GEL 6.7bln Credit. cards and overdrafts Other General 2.1% consumer Mortgage 2.4% loans 19.2% loans 41.7% Micro and SME loans 34.6% Client Deposits, GEL 30.9% Deposits by category Total: GEL 6.7bln Client Deposits, FC 69.1% Time deposits 60.9% Current acc & demand deposits 39.1%#36DIVERSIFIED RETAIL PORTFOLIOS AND INCOME STREAMS 36 BALANCE SHEET | SEP-20 JSC Bank of Georgia Standalone Mass Retail 33% (GEL 2,843 mln) 37% ■Solo (GEL 2,627 mln) MSME 30% (GEL 3,190min) 13% 39% 48% ■Mass Retail (GEL 3,198mln) ■ Solo (GEL 2,624mln). ■MSME (GEL 877mln) Total Gross Loans GEL 8,660min Total Deposits GEL 6,699min INCOME STATEMENT | 9M20 JSC Bank of Georgia Standalone Net Interest Income GEL 347mln Mass Retail (GEL 147mln) 32% 42% ■Solo (GEL 88mln) 26% MSME (GEL 112mln) 20% ■Mass Retail (GEL 35mln) (GEL 20mln) MSME (GEL 14mln) ■ Solo 51% 29% Net Fee & Commission Income GEL 68mln#37RETAIL BANKING | DIGITAL PENETRATION MBANK/IBANK STATISTICS Number of Active Users | '000 Number of transactions (millions) iBank mBank mBank 620 665 714 18.3 საქართველოს ბანკის შობილბანკი შენი 569 მობილური ცხოვრებისთვის 15.000 506 12.8 13.6 14.3 10.8 www.mBank.ge 17.2 9.5 11.5 12.5 13.3 1.3 1.3 1.1 T T 1.0 1.1 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 3Q19 4Q19 1Q20 2Q20 3Q20 DIGITAL VS NON-DIGITAL TRANSACTIONS Number of transactions in millions 15.000.00 85.00 5600 e Transactions breakdown by channel | 9M20 45.6 49.1 44.0 49.4 34.3 ■mBank/iBank 5% 17% 3.2 3.4 2.7 1.4 2.5 Express pay terminals 95.0% share of digital transactions ATMs 3Q19 4Q19 1Q20 2Q20 3Q20 Through digital channels Through tellers Information on this slide depicts the usage of digital and non-digital channels by individual customers Branches 44% Te 37 +14.3% YoY 34% -12.9% YoY#38RETAIL BANKING | MULTICHANNEL PERFORMANCE NUMBER OF TRANSACTIONS '000 Total number of transactions +22% (9M20 vs. 9M18) -31% x4.2 24,396 9,707 9,713 10,170 6,706 Tellers 9M18 9M19 9M20 +61% 72,517 58,981 42,987 45,177 -27% +15% 22,429 19,116 22,034 -26% 80,895 80,316 59,293 38 4,033 4,351 3,161 Mobile banking Internet banking POS terminals ATMs Express Pay terminals Information on this slide depicts the usage of channels by individual customers#39CIB HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS 39 Change Change Change GEL thousands unless otherwise noted 3Q20 3Q19 2Q20 9M20 9M19 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 68,454 51,827 32.1% 63,110 8.5% 200,905 152,232 32.0% 9,500 9,826 -3.3% 9,197 3.3% 27,652 25,090 10.2% 4,976 13,510 -63.2% 11,431 -56.5% 24,941 35,014 -28.8% 4,653 3,300 41.0% 4,825 -3.6% 14,160 4,294 NMF 87,583 78,463 11.6% 88,563 -1.1% 267,658 216,630 23.6% Salaries and other employee benefits (13,034) (15,304) -14.8% (14,170) -8.0% (37,764) (42,481) -11.1% Administrative expenses (4,483) (5,866) -23.6% (3,488) 28.5% (12,437) (13,897) -10.5% Depreciation, amortisation and impairment (2,352) (2,416) -2.6% (2,434) -3.4% (7,259) (6,050) 20.0% Other operating expenses (235) (241) -2.5% (227) 3.5% (761) (746) 2.0% Operating expenses (20,104) (23,827) -15.6% (20,319) -1.1% (58,221) (63,174) -7.8% Operating income before cost of risk 67,479 54,636 23.5% 68,244 -1.1% 209,437 153,456 36.5% Cost of risk 6,745 1,239 NMF (2,536) NMF (91,691) (7,159) NMF Net operating income before non-recurring items 74,224 55,875 32.8% 65,708 13.0% 117,746 146,297 -19.5% Net non-recurring items (1) (3) -66.7% 32 NMF (1,375) (75) NMF Profit before income tax and one-off costs 74,223 55,872 32.8% 65,740 12.9% 116,371 146,222 -20.4% Income tax expense (7,619) (7,444) 2.4% (4,246) 79.4% (10,018) (14,477) -30.8% Profit adjusted for one off costs 66,604 48,428 37.5% 61,494 8.3% 106,353 131,745 -19.3% One-off termination costs (after tax)* (4,094) NMF Profit 66,604 48,428 37.5% 61,494 8.3% 106,353 127,651 -16.7% The income statement adjusted profit in 9M19 excludes GEL 4.1min one-off employee costs (net-off income tax) related to the former CEO and executive management termination benefits LOAN YIELD 10.7% 10.2% 9.1% 8.6% COST OF CLIENT DEPOSITS 4.2% 4.0% 4.1% 3.3% 63.1% 61.2% 65.9% 53.0% 83.1% 82.3% 81.1% 82.7% 36.9% 38.8% 34.1% 47.0% 16.9% 17.7% 18.9% 17.3% 2017 2018 2019 9M20 2017 2018 2019 9M20 Net loans, GEL Net loans, FC Client deposits, FC Client deposits, GEL Currency-blended loan yield Currency-blended cost of deposits#40GEL millions CIB LOAN BOOK AND DEPOSITS MARKET SHARE - LOANS TO LEGAL ENTITIES 31.0% 31.6% 28.9% 28.8% Dec-17 Dec-18 Dec-19 Sep-20 CIB NET LOANS 3,804 2,618 2,260 +15.4% 4,389 Dec-17 Dec-18 Dec-19 Sep-20 GEL millions 40 MARKET SHARE - DEPOSITS TO LEGAL ENTITIES 33.1% 30.9% 30.3% 34.3% Dec-17 Dec-18 Dec-19 Sep-20 CIB DEPOSITS 3,825 3,457 3,473 +51.6% 5,798 Dec-17 Dec-18 Dec-19 Sep-20#41CIB LOAN BOOK AND DEPOSITS 41 HIGHLIGHTS - Leading corporate bank in Georgia Integrated client coverage in key major sectors of the Georgian economy - 2,739 corporate clients served by dedicated relationship bankers at Sep-20 GROSS LOAN BOOK BY SECTOR | SEP-20 Mining and quarrying. 2.8% Transport and Communication 4.0% Construction 1.6% Development 7.1% Other 12.1% Service 3.2% Manufacturing 21.4% Top 10 CIB borrowers - 29.4% of CIB loan book Top 20 CIB borrowers Trade 14.3% Agro✓ 10.0% Commercial real estate 11.1% Hospitality 12.4% - 40.0% of CIB loan book DEPOSITS BY CATEGORY | SEP-20 Current Time accounts deposits, 48.6% and demand deposits, 51.4% DEPOSITS BY CURRENCY | SEP-20 Client deposits, FC, Client deposits, GEL, 47.0% 53.0%#42CIB LOAN YIELD, COST OF DEPOSITS AND NIM CIB LOAN YIELD I QUARTERLY 11.5% 12.4% 13.0% CIB LOAN YIELD I NINE MONTHS 11.8% 13.0% 8.9% 8.3% 8.6% 8.4% 7.5% 7.7% 9.1% 8.6% 8.6% 7.7% Loan Yield ■3Q19 Loan yield, GEL 2Q20 Loan yield, FC ■3Q20 CIB COST OF DEPOSITS I QUARTERLY 42 Loan Yield Loan yield, GEL ■9M19 9M20 Loan yield, FC CIB COST OF DEPOSITS I NINE MONTHS 8.1% 7.8% 7.7% 4.2% 4.6% 5.6% 5.7% 3.2% 1.8% 1.7% 1.8% 4.2% 3.4% 1.9% 1.7% Cost of deposits Cost of deposits, GEL Cost of deposits, FC ■3Q19 2Q20 ■3Q20 Cost of deposits Cost of deposits, GEL Cost of deposits, FC ■9M19 9M20 CIB NIMI QUARTERLY 3.2% CIB NIMININE MONTHS 3.4% 3.6% 3.5% 3Q19 2Q20 3Q20 3.7% 9M19 9M20#43BUILDING BLOCKS TO BECOME THE FINANCIAL SERVICES HUB 43 STRONG INTERNATIONAL PRESENCE Israel (2008), UK (2010), Hungary (2012), Turkey (2013) London Budapest Tbilisi Istanbul Tel Aviv AUM - GEL 2,740.0 million, up 10.6% y-o-y Diversified funding base: Georgia - 38% CIS - 23% Europe - 14% Israel - 9% UK-3% Other -13% STRONG INTERNATIONAL PRESENCE - Wealth Management Vision wealth management offering Become the regional hub for Business and tax friendly environment Secure and attractive destination Conservative regulation and high level of banking secrecy Market dominated by two LSE listed banks with high standards of transparency Dedicated office in the centre of Tbilisi, since January 2019 SCHE GELDSCHRANK RESORBAUANSTALT. HERM.BODE HANNOVER.#44BUILDING BLOCKS TO BECOME THE FINANCIAL SERVICES HUB GALT AND TAGGART - LARGEST INVESTMENT BANK IN GEORGIA BROKERAGE Leading brokerage house in the region Only international sub-custodian in the region Leading investment bank in the region Wide product coverage and Exclusive partner of SAXO Bank via White Label structure, that provides highly adaptive trading platform with professional tools, insights and world-class execution DCM/ECM 44 Galt & Taggart continues to develop local capital markets in Georgia Leading player on the local market SAXO BANK Lead manager of choice for corporates International Financial Institutions as well as RESEARCH Sector, macro and fixed income coverage Georgian quarterly macroeconomic update International distribution S&P CAPITAL IQ MCGRAW HILL FINANCIAL Bloomberg THOMSON REUTERS Sheppey CORPORATE ADVISORY Team with sector expertise and international M&A experience Proven track record of more than 30 completed transactions over the past eight years FINANCE Best Investment Bank in Georgia 2015-2020#45DIGITAL AREA ECOSYSTEM OVERVIEW FULLY AUTOMATED INFLUENCER MARKETING UNIVERSAL MARKETPLACE CHARITY SUPPORT PLATFORM ONLINE PHYSIOTHERAPY SELF-GUIDED TOURS AND TICKETS REAL ESTATE ECOSYSTEM ONLINE CAR RENTALS MARKETPLACE WEGOTRIP HOSPITALITY MANAGEMENT SOLUTION INTERNATIONAL VEHICLE AUCTIONS CAR MAINTENANCE OUTSOURCING ON DEMAND FREIGHT LOGISTICS Tripcars CARDEAL AREA GE LOYALTY extra.ge Phubber adapter S DIGITAL AREA OPTIMO CARU N FINMAP Quick Cash 45 COUPONS AND DISCOUNTS FASHION SHOPPING MARKETPLACE GROWTH MANAGEMENT FOR ONLINE SHOPS DIGITAL ADAPTATION PROGRAM FOR BUSINESSES TAB-LESS BROWSER FOR PRODUCTIVITY AI DIGITAL LENDING INFRASTRUCTURE INTELLIGENT EMPLOYEE REFERRALS INNOVATIVE DIGITAL SOLUTION FOR MSME MULTICHANNEL CUSTOMER ENGAGEMENT SOFTWARE FINANCIAL MANAGEMENT TOOL FOR SME#46DIGITAL AREA ECOSYSTEM OVERVIEW 46 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 15 local and international startups - Added 15 accelerated startups to ecosystem 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 Accelerate additional 15 startups - Continue partnerships with other ecosystem players - Digital Area ecosystem data harnessing INVESTED US$ 5 MLN 2018-2020 PLAN TO INVEST US$ 3-10 MLN 2021-2023#47CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW 3Q20 AND 9M20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 47#48GEORGIA AT A GLANCE GENERAL FACTS Area: 69,700 sq km Population (2019): 3.7 mln Life expectancy: 74 years Official language: Georgian Literacy: 100% Capital: Tbilisi Currency (code): Lari (GEL) ECONOMY Nominal GDP (Geostat) 2019: GEL 50.Obln (US$17.7 bln) Real GDP growth rate 2015-2019: 3.0%, 2.9%, 4.8%, 4.8%, 5.1% Real GDP 2011-2019 annual average growth rate: 4.7% GDP per capita 2019 (PPP): US$ 15,634 Annual inflation (e-o-p) 2019: 7.0% External public debt to GDP 2019: 31.5% Hamburg Penza POLAND BELARUS Herdam Dusseldorf GERMANY Frankfurt Leipzig UKRAINE CZECH REP SLOVAKIA Munich KAZA MOLDOVA AUSTRIA LECHTENSTEN HUNGARY Elista WICZERLAND SLOVENIA Milan aturin ROMANIA Genoa CROATIA HERZEG BOSNIA Majkop Nalak MONA ce SAN Grozny MARNO CAN YUGOSLAVIA ALBANIA MACEDONIA BULGARIA Black Sea Machač GEORGIA ARMENIA AZERBAUA Naple Salon CALY TURKEY AZER Polerme SOVEREIGN CREDIT RATINGS 48 Agency Rating Outlook Affirmed MOODY'S Ba2 Stable August 2020 Fitch Ratings BB Negative August 2020 S&P Global BB Stable August 2020#49GEORGIA'S KEY ECONOMIC DRIVERS 49 Liberal economic policy Regional logistics and tourism hub Strong FDI Support from international community Electricity transit hub potential Political environment 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% 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 inflows stood at 18.4% of GDP in 2019 and total international arrivals reached 9.4mln visitors in 2019 (up 7.8% y-o-y), out of which tourist arrivals were up 6.8% y-o-y to 5.1mln visitors 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$ 1.3bln (7.4% of GDP) in 2019 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 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 9M20, Russia accounted for 12.8% of Georgia's exports and 10.9% of imports; just 3.7% of cumulative FDI over 2003-1H20#50GROWTH ORIENTED REFORMS 50 EASE OF DOING BUSINESS | 2020 New Zealand Singapore 1 Source: WB-IFC Doing Business Report UK 7 Denmark USA Georgia UK Norway Lithuania 6729 #1 in Europe and Central Asia Region Estonia Georgia Lithuania 10 12 16 USA Czech Rep. ECONOMIC FREEDOM INDEX | 2020 Source: Heritage Foundation Top 6 in Europe region out of 46 countries 17 23 11 Latvia 32 Estonia Latvia Germany Kazakhstan Russia Turkey Azerbaijan Poland Czech Rep. Armenia Ukraine 18 19 22 25 28 33 34 40 41 47 64 Armenia Bulgaria Romania Kazakhstan Azerbaijan Poland Hungary France Turkey Italy Russia Ukraine 34 36 38 39 44 46 62 64 71 74 94 134 GLOBAL CORRUPTION BAROMETER | 2017 Source: Transparency International BUSINESS BRIBERY RISK | 2019 Germany Georgia 3% Norway 2 Sweden 4 7% Poland 7% % admitting having paid a bribe last year UK 6 Czech Rep. Slovakia Latvia Montenegro Bulgaria Turkey Lithuania Armenia Bosnia & Herz. Romania Kazakhstan Russia Ukraine Azerbaijan Moldova 9% Singapore 12% 15% 16% 17% 18% 24% 24% 27% 29% 29% 34% 38% 38% 42% Georgia is on a par with EU member states Lithuania Georgia Czech rep. Poland Latvia Armenia Bulgaria Azerbaijan Russia Ukraine Turkey Kazakhstan Uzbekistan Estonia USA France 341 Source: Trace International 40 42 74 77 79 110 122 123 126 181#51GOVERNMENT'S REFORMS ONGOING STRUCTURAL REFORMS 51 B Tax reform Corporate income tax reform Enhancing easiness of tax compliance Favorable tax rates for SME development Enhance business environment New insolvency law Capital market reform Boosting stock exchange activities Developing of local bond market Pension reform Implementation of private pension system B PPP reform B - - Transparent and efficient PPP framework Deposit insurance Boosting private savings Strengthening trust to financial system Responsible lending Decrease household exposure over indebtedness EU-Georgia association agreement agenda Deepening economic and political relations with EU Public investment management framework Improved efficiency of state projects General education reform Maximising quality of teaching in secondary schools Fundamental reform of higher education Based on the comprehensive research of the labor market needs Improvement of vocational education Increase involvement of the private sector in the professional education Promoting transit and tourism hub Development/enhancement of road, rail, air, maritime infrastructure Inclusive government Involvement of the private sector in legislative process " Accounting reform Increased transparency and financial accountability Enhanced protection of shareholder rights#52DIVERSIFIED RESILIENT ECONOMY 6.4% GROSS DOMESTIC PRODUCT 20 जे 18 15 7.4% Source: Geostat Real GDP growth was -5.0% in 9M20, as economy contracted by 3.8% in 3Q20 after 12.3% reduction in 2Q20 Other 29.4% 12% 9% Financial & 4.4% 4.8% 4.8% 5.1% insurance 10 5 сл 6% 3.6% 3.0% 2.9% 3% 5.4% Transport & о 0% storage 6.5% 52 DIVERSIFIED NOMINAL GDP STRUCTURE | 2019 Source: Geostat Trade 14.4% Real estate 11.5% Manufacturing 10.1% 2019 Nominal GDP, US$ bn --Real GDP growth, % Public administration Agriculture 6.8% 7.2% Construction 8.6% COMPARATIVE REAL GDP GROWTH RATES, % (2011-2019 AVERAGE) GDP PER CAPITA Source: IMF, Geostat Source: IMF, Geostat 4% 0% olo ovo ovo do 6% 5.6% 18,000 4.7% 4.7% 3.3% 3.6% 3.7% 3.9% 3.9% 4.5% 16,000 14,000 2.4% 2.5% 12,000 9,799 10,610 11,583 12,100 12,855 13,596 14,584 15,634 1.7% 10,000 7,541 8,322 2% 1.2% 0.1% 8,000 6,000 3,233 4,023 4,422 4,624 4,739 4,013 4,062 4,359 4,722 4,763 4,000 2,000 Ukraine Azerbaijan Russia Czech Rep. Bulgaria Latvia Poland Lithuania Estonia Romania Moldova Georgia Armenia Turkey Nominal GDP per capita, US$ ■■GDP per capita, PPP#53Labor force 0.7% CAPITAL 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 Total factor productivity 1.8% 53 CONTRIBUTIONS OF CAPITAL, LABOR, AND TFP TO GROWTH DURING PERIODS Source: Geostat, Galt &Taggart 10% 5% Source: Geostat, Galt &Taggart REAL GDP GROWTH PROJECTION, 2020 Capital stock 2.2% 0% Source: IMF, WEO, October 2020 0% 10% -2% 8% -1.8% -4% 6% -6% -8% -7.2% -6.5%-6.0% -5.2%-5.0%-5.0%-4.8% -4.5%-4.5% -4.1% -4.0%-4.0%-3.6% 4% 2% -10% 0% -12% Ukraine Czech Rep. Latvia Estonia Georgia Turkey Romania Armenia Moldova Russia Azerbaijan Bulgaria Poland Lithuania -2% -4% -6% 2011 2012 2013 -5% 2004-2007 2008-2009 2010-2014 2015-2019 ■TFP Labor force ■Capital stock Georgia REAL GDP GROWTH: GEORGIA, MIDDLE EAST & CENTRAL ASIA, EMERGING & DEVELOPING EU Middle East & Central Asia Emerging & Developing EU 2014 2015 2016 2017 2018 2019 2020F 2021F Source: IMF, WEO, October 2020 2020F 2023F 2024F 2025F#54FURTHER JOB CREATION IS ACHIEVABLE 54 UNEMPLOYMENT RATE DOWN 1.1PPTS Y/Y TO 11.6% IN 2019 HIRED WORKERS ON THE RISE Source: Geostat Source: Geostat 1,800 17.4% 17.3% 17.2% 16.9% 20% 1,100 14.6% 14.1% 14.0% 13.9% 1,600 12.7% 1,000 11.6% 15% 900 1,400 1,628 1,643 1,659 1,643 1,694 1,734 1,717 1,707 1,694 1,690 10% 800 849 840 700 1,200 5% 600 1,000 0% 500 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Employed, 000' persons -Unemployment rate, % 2010 2011 2012 2013 2014 2015 Self-employed, 000' persons SHARE OF SERVICES IN TOTAL EMPLOYMENT ON THE RISE PRIVATE SECTOR CREATES JOBS 2016 2017 2018 2019 Hired, 000' persons Source: Geostat Source: Geostat 2,000 1,000 1,500 116 121 120 122 123 124 124 138 140 132 800 782 796 779 774 778 761 750 737 659 645 600 1,000 366 403 429 442 485 512 540 530 560 550 400 500 730 726 760 747 794 849 843 833 895 913 200 302 281 287 252 259 287 272 284 300 300 о O 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ■Services (incl. construction) ■ Agriculture ■Industry 2010 2011 2012 2013 2014 Public sector (hired workers) 2015 2016 2017 2018 2019 ■Non-public sector (hired workers)#5570% 60% 50% 40% 30% 20% 10% -12% 2010 2011 2012 2013 2014 PUBLIC DEBT AS % OF GDP 2013 2014 2015 PUBLIC DEBT 2015 2016 2017 --Fiscal deficit (IMF program definition) Note: Deficit calculated as net lending / borrowing minus budget lending 2018 2019 2020F 2021F FISCAL DEFICIT Source: MoF, 1st draft of 2021 budget BREAKDOWN OF PUBLIC DEBT Source: MoF, as of August 2020 0% -2.0% -1.9% -2.4% -2.7% -2.0% -2% -3.3% -2.6% -4.4% -4% -1.7% -2.3% -5.1% -2.6% -2.8% -6% -5.3% -8% -10% -8.5% Multilateral 57% Domestic 22% External 78% weighted average interest rate 1.5% External public debt portfolio 2016 2017 2018 Public debt/GDP capped at 60% ―― Total public debt to GDP, % - External public debt to GDP, % 2022F 2023F 2024F Source: MoF, 1st draft of 2021 budget 70% 140% 60% 120% 50% 100% 80% 40% 60% 30% 40% 20% 20% 10% 0% 2019 2020F 2021F 2022F 2023F 2024F 7% GROSS GOVERNMENT DEBT/GDP | 2019 Russia Kazakhstan Uzbekistan Moldova Turkey Czech rep. Lithuania Latvia Romania Georgia Belarus 39.8% Poland Slovakia Armenia Bilateral 15% Eurobond Ukraine Hungary Slovenia Croatia Spain Canada Montenegro Singapore Italy Contractual maturity 21 years Source: IMF, MoF 55#5620 or ov -2% Turkey Armenia Georgia Belarus Hungary Russia Estonia Lithuania Bulgaria Croatia Poland 18% 2018 ■2019E 13% Expenditures (current + capital), GEL mn - Expenditures (current + capital) as % of GDP GOVERNMENT SOCIAL EXPENDITURE AS % OF GDP 2021F INVESTING IN INFRASTRUCTURE AND SPENDING LOW ON SOCIAL 56 BUDGET EXPENDITURES EXPENDITURE BREAKDOWN: CURRENT VS. CAPITAL Source: MoF, 1st draft of 2021 budget Source: MoF, 1st draft of 2021 budget 20,000 50% 100% 32.3% 33.0% 40% 76.0% 72.5% 73.4% 80.0% 81.7% 78.1% 80.0% 74.2% 73.1% 72.2% 78.2% 73.7% 15,000 29.4% 29.4% 27.6% 28.4% 28.6% 29.4% 28.2% 27.7% 28.9% 30.3% 80% 30% 60% 10,000 5,000 20% 40% 24.0% 27.5% 26.6% 20.0% 18.3% 21.9% 20.0% 25.8% 26.9% 27.8% 21.8% 26.3% 10% 20% о 0% 0% Source: IMF 8% ■2018 ■2019E 6% 4% 2% 0% Turkey Armenia Croatia Lithuania Russia Poland Bulgaria Estonia Hungary Belarus Georgia 2010 2011 --Current expenditures Capital expenditures and net lending GOVERNMENT CAPITAL EXPENDITURE AS % OF GDP Source: IMF 2016 2017 2018 2019 2020F 2021F#57DIVERSIFIED FOREIGN TRADE 57 IMPORTS OF GOODS AND SERVICES Source: NBG - BOP statistics EXPORTS OF GOODS AND SERVICES Source: NBG - BOP statistics. 12 10 20 000 10.8 11.1 10.1 10.0 9.5 9.2 9.3 8.7 8.5 9.4 8.9 2.2 7.5 8.0 1.7 2.4 1.0 8 1.4 1.6 7.2 7.6 0.8 2.0 7.0 1.3 1.7 1.7 6.0 1.2 6.1 5.3 5.2 1.1 0.9 6.1 6.2 0.5 6 0.9 0.4 0.3 3.6 3.9 1.1 5.0 3.1 4.0 0.7 1.0 3.1 3.1 2.6 2.5 4 6.3 6.7 7.7 7.7 8.3 8.6 8.7 0.5 2.5 7.0 7.4 6.8 2.5 2 4.3 5.1 1.9 1.6 2.0 2.6 3.0 3.0 3.1 3.3 4.0 4.5 4.6 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ■Services imports, US$ bn ■Goods imports, US$ bn 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 ■Services exports, US$ bn Goods exports, Geo-originated, US$ bn Re-exports, US$ bn IMPORTS BY COUNTRY, 9M20 EXPORTS BY COUNTRY, 9M20 OIL IMPORTS Source: Geostat Source: Geostat Source: Geostat Kazakhst Uzbekist an Oil imports were down 32.5% y/y in 9M20 Ukraine 4.8% Other 15.5% EU 24.0% Armenia 5.7% an 15% Other 13.6% EU 1,000 75% 21.3% 2.1% 800 60% 600 45% USA 400 30% Azerbaija n Turkey 17.2% 6.0% USA. 7.0% Azerbaija n China Russia 6.0% 8.9% 10.9% Russia 12.8% 13.6% 2.5% Armenia 5.8% Turkey. 5.9% Ukraine China 200 15% 14.8% о 0% -200 -15% -400 -30% 2014 2015 Oil imports, US$ mn Oil imports, % change, y/y#58DIVERSIFIED SOURCES OF CAPITAL 58 FOREIGN DIRECT INVESTMENTS Source: Geostat TOURISM REVENUES Source: NBG, Geostat 2.5 FDI down 25.6% y/y in 1H20 25% 4.0 Tourism revenues down 80.7% y/y in 9M20, due to COVID pandemic 25% 18.3% 18.4% 2.0 20% 16.6% 20% 3.0 13.9% 1.5 10.4% 11.6% 10.9% 12.2% 12.5% 15% 15% 10.0% 10.1% 2.0 8.6% 1.0 7.1% 7.5% 6.4% 6.0% 7.4% 7.4% 10% 5.4% 6.3% 10% 1.0 0.5 5% 5% 0.0 0% 0.0 0% FUNDING FDI, US$ bn FDI as % of GDP REMITTANCES - STEADY SOURCE OF EXTERNAL Remittances up by 6.2% y/y in 9M20 Tourism revenues, US$ bn Tourism revenues as % of GDP Source: NBG, Geostat PUBLIC EXTERNAL BORROWING FOR CAPEX, % OF GDP Source: MOF, Geostat 2.1 9.8% 7% 1.8 8.6% 8.4% 8.1% 8.6% 8.2% 8.5% 9.0% 5.8% 7.2% 7.6% 10% 6% 5.4% 1.5 1.7 5% 1.6 1.2 1.5 1.4 0.9 1.3 1.3 1.1 1.1 1.2 12 1.4 4% 5% 3% 3.2% 3.3% 3.1% 3.0% 3.1% 2.5% 2.8% 2.0% 0.6 2% 0.3 1% 0.0 0% 0% Remittances, US$ bn Remittances as % of GDP#59CURRENT ACCOUNT DEFICIT SUPPORTED BY FDI CURRENT ACCOUNT BALANCE (% OF NOMINAL GDP) 59 Source: NBG, Geostat 30% 20% 6.0% Goods, net Services, net 6.5% Income, net 4.6% 5.3% 9.5% Transfers, net CA deficit -net FDI 10.5% 8.1% 8.2% 5.5% 5.8% 10% 0% -10% -5.6% -8.0% -6.8% -5.4% -20% -9.8% -12.2% -11.4% -10.2% -11.8% -12.5% -30% -40% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 FDI AND CAPITAL GOODS IMPORT Source: Geostat BUILDING INTERNATIONAL RESERVES, US$ BN 16% Source: NBG 12.2% 11.6% 10.9% 3.8 4.0 12% 3.5 10.4% 3.3 3.5 8.5% 7.1% 7.5% 8.1% 7.8% 3.0 2.8 2.9 2.8 2.7 3.0 2.8 2.5 8% 6.5% 6.7% 2.3 2.5 2.1 8.7% 7.2% 6.4% 7.2% 7.9% 7.4% 7.4% 7.6% 2.0 4% 6.0% 1.5 5.7% 5.6% 1.5 1.0 0% 0.5 2015 0.0 FDI to GDP, % 11 Capital goods imports to GDP, % 2008#60120 100 80 60 40 20 о %8 6% 4% 2% 0% -2% INFLATION TARGETING SINCE 2009 ANNUAL INFLATION Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Oct 15 Jan-16 May-16 Headline inflation Core (non-food, non-energy, non-tobacco) WORLD COMMODITY PRICES Energy Non-energy Jan-14 Apr-14 Aug-14 Dec-14 Mar-15 Jul-15 Nov-15 Feb-16 Jun-16 Oct-16 Jan-17 May-17 Sep-17 Dec-17 Apr-18 Aug-18 Nov-18 Aug-16 Dec-16 Apr-17 Jul-17 Nov-17 Feb-18 Jun-18 Sep-18 Jan-19 Apr-19 Aug-19 Dec-19 Mar-20 Jul-20 Mar-19 Jul-19 Oct-19 Feb-20 Jun-20 Sep-20 Note: Jan2014=100 Source: World Bank MONTHLY INFLATION Source: Geostat Source: Geostat 3% 3% 8% 5.0% 6% 2% 2% 0.8% 4% 1% 3.8% 2% 0% 0% WWW W 1% 0% -1% -1% -2% Oct-20 -2% -2% Jan-14 Apr-14 80 2006 20 8% 6% 4% 2% 0% -2% Jan-14 Apr-14 Aug-14 Dec-14 Mar-15 Jul-15 Nov-15 Mar-16 Jun-16 Oct-16 AVERAGE INFLATION Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Jan-16 May-16 Aug-16 Dec-16 Feb-17 Apr-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Feb-18 May-18 Jun-18 Aug-18 Sep-18 Dec-18 Jan-19 Jan-19 Apr-19 Apr-19 Jul-19 Aug-19 Nov-19 Dec-19 Mar-20 Jul-20 Oct-20 -2% Source: Geostat 8% 5.9% 6% 4% 2% 0% Mar-20 Jul-20 Oct-20 60#61Jan-16 Mar-16 Jun-16 Sep-16 0.0 4.0 3.0 2.0 1.0 Jan-14 Apr-14 Aug-14 Dec-14 Mar-15 Jul-15 Nov-15 Feb-16 Dec-17 Apr-18 Aug-18 Nov-18 Mar-19 Jul-19 INTERNATIONAL RESERVES SUFFICIENT TO FINANCE MORE THAN 3 MONTHS OF IMPORTS INTERNATIONAL RESERVES Source: NBG CENTRAL BANK'S INTERVENTIONS 61 Source: NBG ■Gross international reserves, US$ bn MONETARY POLICY RATE Source: NBG 10% NBG cut policy rate three times this year - by 50bps in April, by 25bps in June and by 25bps in August 75% 10% 8.0% 70% 8% 8% 65% 60% 6% 6% 55% 50% 4% 4% Nov-16 Feb-17 May-17 Aug-17 Oct-17 Jan-18 Apr-18 Jul-18 Sep-18 Dec-18 Mar-19 May-19 Aug-19 Nov-19 Feb-20 Apr-20 Jul-20 Oct-20 Jan-14 Apr-14 Aug-14 Loan dollarization Oct-19 Feb-20 Jun-20 Sep-20 Jan-14 Apr-14 Aug-14 Nov-14 300 220 NBG sold US$ 721.2mn during Mar - 2 Nov 2020 200 US$ sale 120 100 200 60 120 100 40 0+7 40 27 60 20 100 60 40 40 32.8 201 40 O ul-15 -85 -40 -100 -200 -20-40 -20-20 -30 08- US$ purchase -63 -25 -65 -70 -30 -120 -101 -140 NBG net interventions, US$ mn LOAN AND DEPOSIT DOLLARISATION Feb-18 May-18 Sep-18 # Dec-18 Apr-19 Deposit dollarization Jul-19 Nov-19 Feb-20 Sep-18 Jan-19 Apr-19 Aug-19 Dec-19 Mar-20 Jul-20 Oct-20 Source: NBG 75% 70% 61.6% 65% 60% 56.9% 55% 50% Jun-20 Sep-20#62Jan-14 Apr-14 Aug-14 Nov-14 FX RESERVES FLOATING EXCHANGE RATE - POLICY PRIORITY 5.0 1.42 1.30 1.36 1.6 1.31 1.25 1.23 1.24 1.26 1.16 1.29 1.4 130 4.0 1.03 1.2 120 3.8 3.0 3.5 1.0 110 3.3 2.8 2.9 2.8 3.0 0.8 100 2.0 2.7 2.8 2.5 0.6 90 2.3 3 0.4 1.0 0.2 70 0.0 0.0 2015 Official FX reserves, US$ bn ―― M2 multiplier M2 AND ANNUAL INFLATION 40% 30% 20% 10% 0% -10% Mar-15 Jun-15 Oct-15 Jan-16 -M2, % change, y/y (LHS) May-16 Aug-16 Dec-16 Mar-17 Jul-17 Oct-17 Feb-18 May-18 May-18 Sep-18 81-das Dec-18 Apr-19 Apr-17 Jul-19 Nov-19 Feb-20 Jun-20 Annual inflation, eop (RHS) Sep-20 Source: NBG Jan-14 Apr-14 Aug-14 NOCENT Nov-14 Mar-15 Jun-15 Source: NBG M2 AND USD/GEL 8% 40% 6% 30% 4% 20% 2% 10% 0% 0% appreciation -2% -10% Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 Oct-15 Oct-15 Jan-16 May-16 Aug-16 Dec-16 -M2, % change, y/y (LHS) Mar-17 Jul-17 NOMINAL AND REAL EFFECTIVE EXCHANGE RATE (JAN2014=100) Sep-15 Seper Jan-16 Apr-16 Nominal effective exchange rate GEL/USD, % change, y/y (RHS) Oct-17 Feb-18 May-18 Sep-18 Dec-18 Apr-19 Jul-19 Nov-19 Feb-20 꾸 Jun-20 Sep-20 Aug-16 Nov-16 Mar-17 Jun-1 Oct-17 Jan-18 May-18 Aug-18 Dec-18 Mar-19 Oct-19 Real effective exchange rate Source: NBG 130 120 -0.4% y/y 110 90 -0.7% y/y 8៩៩៩៩ 100 Feb-20 May-20 Sep-20 depreciation Source: NBG 40% 30% 20% 10% 0% -10% 62#63GROWING AND WELL-CAPITALISED BANKING SECTOR SUMMARY Prudent regulation and oversight ensuring financial stability Demonstrated strong resilience towards both domestic and external shocks without single bank going bankrupt No nationalization of the banks and no government ownership since 1994 Resilient to different shocks to the economy, room for healthy credits growth with retail loans at 32.8% of GDP and total loans at 63.8% of GDP in 2019 Source: National Bank of Georgia, Geostat 50 40 10 So 30 20 63 BANKING SECTOR ASSETS, LOANS AND DEPOSITS Source: NBG 25.0% CAGR 47.2 31.9 26.2 BANKING SECTOR LOANS TO GDP, 2019 Source: IMF, Central Banks Bulgaria 49.3% Poland Czech Rep. Russia Croatia Armenia 49.9% 50.7% 53.3% 55.8% 55.8% Slovakia Georgia Estonia Turkey 62.3% 63.8% 68.7% 70.1% Israel 71.0% Assets, GEL bn ■Loans, GEL bn Deposits, GEL bn NON-PERFORMING LOANS, LATEST-2020 Source: IMF, NBG Lithuania 1.0% Hungary 1.3% Georgia Czech Rep. 2.3% 2.8% Latvia 3.5% Poland 3.8% Turkey 4.2% Romania Belarus Armenia 4.4% 5.1% 5.5% Portugal Bulgaria Bosnia & Herz. 6.0% 6.5% 6.7% Croatia Kazakhstan Russia 6.7% 8.6% 9.6%#64CREDIT GROWTH DYNAMICS BANKING SECTOR CORPORATE & RETAIL LOANS TO GDP Source: NBG, Geostat MORTGAGE LOANS 114,500 8,161 106,370 70% 7,048 92,980 Retail loans to GDP 6,031 30,400 60% 72,140 31,720 Corporate loans to GDP 37% 50% 4,315 5,062 35,990 33% 4,453 33% 32,680 40% 27% 30% 4,604 23% 3,350 74,650 84,100 30% 20% 56,990 17% 11% 12% 13% 2,595 2,649 39,470 20% 31% 35% 966 1,427 10% 17% 17% 18% 19% 21% 26% 24% 25% 27% 2018 2019 9M20 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9M20 2017 ■FX-denominated mortgage loans, GEL mn ■GEL-denominated mortgage loans, GEL mn Total mortgage loans, GEL mn Number of mortgage loans in FX Number of mortgage loans in GEL ◆ Total number of mortgage loans 2017 2018 2019 9M20 REAL ESTATE PRICE INDEX 120 100 80 ៖ ៖ ៖ ៖ ៖ 8 8 9 180 160 Inflation adjusted real estate price index (2010=100, GEL) Real wage index (2010=100, GEL) 140 1Q07 2Q07 3Q07 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 3Q14 4Q14 4x14 SLOL 2Q15 3Q15 4Q15 Source: NBG, Geostat 64 Source: NBG#65Armenia Ukraine 10% INFLATION: GEORGIA AND PEERS 15% End-2019 Latest-2020 7.0% 6.1% 3.7% 3.8% 5% 2.3% 2.8% 1.4% 0% Azerbaijan Russia Georgia Belarus Kazakhstan Turkey Euro Armenia GEORGIA VS REGION: FX, INFLATION, POLICY RATE 46.4% 13.1% 17.4% 18.5% Moldova CURRENCY WEAKENING VS. US$ Source: Bloomberg Note: US$ per unit of national currency, period 1-Aug-2014 -31-October-2020 53.9% 54.9% 56.7% 57.8% 60.8% Georgia Source: Geostat 15% 11.8% 10% 5% do go 0% Russia Armenia Azerbaijan Russia Ukraine Kazakhstan Belarus Turkey MONETARY POLICY RATE: GEORGIA AND PEERS End-2019 Latest-2020 Source: Central Banks 4.3% 4.3% 6.0% 6.5% 7.8% 8.0% Ukraine Azerbaijan Belarus Georgia Kazakhstan Turkey 10.3% 9.0% 74.4% 65#660% 1Q16 2Q16 10% 3Q16 4Q16 1Q17 2Q17 3Q17 20% 30% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 SAVINGS AND INVESTMENT TO GDP 40% ■Savings Investments 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Jan-19 Feb-19 1Q18 2Q18 3Q18 4Q18 1Q19 RECENT TREND - REAL GDP AND ITS COMPONENTS REAL GDP GROWTH BY QUARTER, % CHANGE YOY CONTRIBUTION TO REAL GDP GROWTH Source: Geostat 12% 10% 6.8% 7.2% 4.5% 4.4% 6.0% 5.0% 5.8% 5.1% 9% 5% 6% 2.2% 2.2% 4.5% 3.4% 4.1% 3.6% 4.6% 3% 3.2% 0% 1.8% -3.8% 0% -3% -5% -6% -10% -9% -12% -12.3% Consumption Net export Investment Real GDP growth -15% -15% Mar-19 Apr-19 May-19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Source: Geostat REAL GDP GRWOTH BY MONTH, % CHANGE YOY 12% Source: Geostat's rapid estimates 6.1% 6.4% 8% 3.5% 4% 6.0% 4.7% 5.2% 5.1% 2.2% 4.6% 5.1% 5.0% 5.8% 5.7% -0.7% 3.8% 0% -5.3% -2.7% -5.5% -4% -7.7% -8% -12% -13.5% -16% -20% -16.6% Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Source: Geostat, Galt & Taggart 99#67800 600 400 200 0 -200 -400 -600 -800 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 500 400 300 200 100 о -100 -200 -300 -400 EXPORTS DOWN 12.1% YoY IN 9M20 Source: Geostat I N H H H H EXPORTS INCREASED FIRST TIME IN SEP-20 SINCE FEB-20 Feb-19 Mar-19 May-19 Jun-19 Nov-19 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Exports, US$ mn % change y/y TRADE DEFICIT DOWN 18.5% YoY IN 9M20 Source: Geostat Imports, US$ mn EXPORTS BY COMMODITY, 9M20 Oct-18 Trade deficit, US$ mn Nov-18 Dec-18 Feb-19 Jan-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 Apr-20 May-20 Jul-20 Jun-20 % change y/y Aug- 40% IMPORTS DOWN 15.9% YoY IN 9M20 Source: Geostat 60% 1,000 50% 800 40% 40% 600 30% 400 20% 8.6% 20% 200 10% О 0% 0% -9.0% -200 -10% -20% -400 -20% -600 -30% -40% -800 -40% Feb-18 Mar-18 Other 33.0% Nov-18 -10% Fertilizers 2.3% Gold -60% 2.9% Pharm. 3.0% Precious Wine metals Waters 3.2% 3.4% Spirits 6.0% 3.6% . Cars 12.7% Ferro-alloys 7.5% May- Copper .22.5% % change y/y Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Source: Geostat 67#68BENEFITS FROM DIVERSIFIED ECONOMIC LINKAGES AND CLOSER TIES WITH EU 68 EXPORTS, TOURISM, REMITTANCES AND FDI BY COUNTRY, SHARE IN TOTAL, 9M20 ECONOMIC LINKAGES BREAKDOWN, 9M20 No single country accounts for more than 15-19% share in any particular category, minimizing potential negative impact from any key partner Other countries 22.0% Exports Tourism FDI Remittances EU 30.5% EU 21.3% 11.9% 69.3% 41.7% Russia 12.8% 19.1% 3.4% 19.2% Armenia 4.2% Azerbaijan 13.6% 8.0% -4.7% 2.8% Ukraine Turkey 5.9% 19.0% 10.8% 5.8% 5.0% China 14.8% 0.5% 0.6% 0.1% Turkey Russia 7.7% 14.5% Ukraine 6.0% 4.7% 1.3% 4.3% China Azerbaijan 7.8% 8.3% Armenia 5.8% 9.3% 0.8% 0.6% Other countries 19.7% 27.4% 18.5% 25.4% Source: Geostat, NBG, GNTA, Galt & Taggart Source: Geostat, NBG, GNTA, Galt & Taggart Note: FDI data is given as of 1H20. Negative investment means a sale of shares or distributed profit.#6940% 30% 20% 10% 0% -10% -20% -30% -40% -50% Jan-20 Feb-20 Mar-20 TRACKING GEORGIA'S ECONOMIC RECOVERY Remmitances +6.2% 28.7% Exports -12.1% KEY INDICATORS SHOW IMPROVING TREND, WHILE REMITTANCES REBOUNDED STRONGLY Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Jan-20 Feb-20 Mar-20 % change y/y 8.6% Apr-20 May-20 Jun-20 Jul-20 Aug-20 Imports -15.9% Trade deficit -18.5% GDP growth -5.0% 30% -9.0% -19.8% Sep-20 Jan-20 Feb-20 Mar-20 Apr-20 Annual % change in 9M20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Source: Geostat, NBG 20% 10% 0% -0.7% -10% -20% -30% -40% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 -50% 69#70CONTENTS RESPONSE TO COVID-19 AND TRACKING THE RECOVERY GROUP OVERVIEW 3Q20 AND 9M20 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES 70#71BOARD OF DIRECTORS 71 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#72HIGHLY EXPERIENCED MANAGEMENT TEAM 72 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. 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. Mikheil Gomarteli, Deputy CEO, Emerging and 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. Giorgi Pailodze, Deputy CEO, Wealth Management and Investment Banking Joined in June 2019. Previously, VP at Evercore, London (2017-2019) and New York (2015-2017); worked in corporate and investment banking in Citigroup in New York (2013-2015). He started banking career in Georgia and held various managerial roles at TBC Bank and HSBC Bank Georgia. Holds an 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. 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. Vakhtang Bobokhidze, Deputy CEO, Information Technologies 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.#73HIGHLY EXPERIENCED MANAGEMENT TEAM 73 Etuna Iremadze, Head of SOLO 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, Head of Innovation With the Group since 2018. Extensive experience in the global financial services. Previously, 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.#74GROUP INCOME STATEMENT 74 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 3Q20 3Q19 2Q19 9M20 9M19 y-o-y 9-0-9 y-o-y 407,666 (203,636) 366,721 (165,729) 11.2% 379,038 7.6% 1,175,029 1,043,680 12.6% 22.9% (204,102) -0.2% (598,982) (461,353) 29.8% 204,030 200,992 1.5% 174,936 16.6% 576,047 582,327 -1.1% 71,793 76,166 -5.7% 54,389 32.0% 197,076 206,721 -4.7% (26,261) (28,157) -6.7% (21,488) 22.2% (78,531) (73,265) 7.2% 45,532 48,009 -5.2% 32,901 38.4% 118,545 133,456 -11.2% 19,179 32,233 -40.5% 22,743 -15.7% 72,583 82,186 -11.7% 7,750 3,728 107.9% 9,081 -14.7% 23,457 3,035 NMF 276,491 284,962 -3.0% 239,661 15.4% 790,632 801,004 -1.3% Salaries and other employee benefits (excluding one-offs) (58,171) (59,539) -2.3% (60,656) -4.1% (175,365) (169,938) 3.2% One-off termination costs of former executive management (1) (12,412) NMF Salaries and other employee benefits (58,171) (59,539) -2.3% (60,656) -4.1% Administrative expenses (24,443) (26,251) -6.9% (22,450) 8.9% (175,365) (73,914) (182,350) -3.8% (71,025) 4.1% Depreciation, amortisation and impairment (19,125) (21,320) -10.3% (21,139) -9.5% (61,654) (54,303) 13.5% Other operating expenses Operating expenses Profit from associates (873) (102,612) 214 Operating income before cost of risk 174,093 (807) (107,917) 194 177,239 Expected credit loss on loans to customers (5,836) (13,617) 8.2% -4.9% 10.3% -1.8% -57.1% (913) -4.4% (2,845) (3,135) -9.3% (105,158) 113 134,616 -2.4% (313,778) (310,813) 1.0% 89.4% 29.3% 628 477,482 636 -1.3% 490,827 -2.7% Expected credit loss on finance lease receivables (2,371) (333) NMF 11,621 (3,387) NMF -30.0% (222,404) (86,170) 158.1% (7,644) (1,336) NMF Other expected credit loss on other assets and provisions Cost of risk (2,735) (1,273) 114.8% (18,455) -85.2% (32,518) (5,845) NMF (10,942) (15,223) -28.1% (10,221) 7.1% (262,566) (93,351) NMF Net operating income before non-recurring items 163,151 162,016 0.7% 124,395 31.2% 214,916 397,476 -45.9% Net non-recurring items (excluding one-offs) 254 (5,019) NMF (1,241) NMF (41,332) (9,132) NMF One-off termination costs of former CEO (2) (3,985) NMF Net non-recurring items 254 (5,019) NMF (1,241) NMF (41,332) (13,117) NMF Profit before income tax expense 163,405 156,997 4.1% 123,154 32.7% 173,584 384,359 -54.8% Income tax expense (excluding one-offs) (15,051) (22,697) -33.7% (8,470) 77.7% (10,491) (43,104) -75.7% Income tax benefit related to one-off termination costs of former 2,161 NMF CEO and executive management (3) Income tax expense (15,051) Profit 148,354 (22,697) 134,300 -33.7% 10.5% (8,470) 114,684 77.7% 29.4% (10,491) 163,093 (40,943) 343,416 -74.4% -52.5% One-off items (1)+(2)+(3) (14,236) NMF Profit attributable to: - shareholders of the Group - non-controlling interests Earnings per share (basic) Earnings per share (diluted) 147,704 133,687 10.5% 114,174 29.4% 162,363 341,841 -52.5% 650 613 6.0% 510 27.5% 730 1,575 -53.7% 3.11 2.81 10.7% 2.40 29.6% 3.41 7.16 -52.4% 3.11 2.81 10.7% 2.40 29.6% 3.41 7.14 -52.2%#75GROUP BALANCE SHEET 75 Change Change GEL thousands, unless otherwise noted Sep-20 Sep-19 Jun-20 y-o-y 9-0-9 Cash and cash equivalents 2,154,224 1,369,169 57.3% 1,633,755 31.9% Amounts due from credit institutions 1,980,195 1,834,220 8.0% 1,700,075 16.5% Investment securities 2,205,244 1,895,722 16.3% 2,113,900 4.3% Loans to customers and finance lease receivables 13,627,144 11,339,745 20.2% 12,599,092 8.2% Accounts receivable and other loans 4,935 4,475 10.3% 4,060 21.6% Prepayments Inventories Right-of-use assets Investment property Property and equipment Goodwill Intangible assets Income tax assets 32,021 43,795 -26.9% 31,513 1.6% 11,406 11,257 1.3% 13,901 -17.9% 85,859 106,130 -19.1% 89,758 -4.3% 221,517 193,499 14.5% 212,182 4.4% 390,401 364,405 7.1% 396,272 -1.5% 33,351 33,351 0.0% 33,351 0.0% 117,941 95,829 23.1% 116,355 1.4% 40,484 7,682 NMF 54,595 -25.8% Other assets 216,159 202,426 6.8% 139,945 54.5% Assets held for sale 46,072 38,987 18.2% 45,212 1.9% Total assets 21,166,953 17,540,692 20.7% 19,183,966 10.3% Client deposits and notes 12,985,039 9,613,718 35.1% 11,583,139 12.1% Amounts owed to credit institutions 3,757,646 3,437,718 9.3% 3,521,860 6.7% Debt securities issued 1,628,188 2,175,820 -25.2% 1,561,933 4.2% Lease liabilities 98,522 105,285 -6.4% 96,878 1.7% Accruals and deferred income. 43,474 41,521 4.7% 37,257 16.7% Income tax liabilities 70,854 39,251 80.5% 70,171 1.0% Other liabilities 212,093 87,520 142.3% 112,929 87.8% Total liabilities Share capital Additional paid-in capital Treasury shares 18,795,816 1,618 513,407 (54) 15,500,833 21.3% 16,984,167 10.7% 1,618 0.0% 1,618 0.0% 498,593 3.0% 500,887 2.5% (53) 1.9% (54) 0.0% Other reserves 38,201 28,472 34.2% 25,417 50.3% Retained earnings 1,807,432 1,502,248 Total equity attributable to shareholders of the Group 2,360,604 2,030,878 20.3% 16.2% 1,662,164 2,190,032 8.7% 7.8% Non-controlling interests 10,533 Total equity 2,371,137 Total liabilities and equity 21,166,953 Book value per share 49.67 8,981 2,039,859 17,540,692 42.69 17.3% 9,767 7.8% 16.2% 2,199,799 7.8% 20.7% 16.4% 19,183,966 10.3% 46.07 7.8%#76BNB FINANCIAL HIGHLIGHTS 76 INCOME STATEMENT HIGHLIGHTS Change Change Change 3Q20 3Q19 2Q20 9M20 9M19 GEL thousands, unless otherwise stated y-o-y 9-0-9 y-o-y Net interest income 8,735 7,447 17.3% 9,157 -4.6% 27,361 20,392 34.2% Net fee and commission income 1,220 1,956 -37.6% 1,486 -17.9% 4,410 5,567 -20.8% Net foreign currency (loss) / gain (42) 5,405 NMF 3,787 NMF 4,238 14,140 -70.0% Net other (expense) / income (110) 57 NMF 350 NMF 573 Operating income 9,803 14,865 -34.1% 14,780 -33.7% 36,582 371 40,470 54.4% -9.6% Operating expenses (7,812) (9,135) -14.5% (8,098) -3.5% (24,616) (25,873) -4.9% Operating income before cost of risk 1,991 5,730 -65.3% Cost of risk (1,449) 293 Net non-recurring items 36 (1) NMF NMF 6,682 (1,928) -70.2% 11,966 14,597 -18.0% -24.8% (6,799) (2,684) 153.3% Profit before income tax 578 6,022 Income tax benefit/ (expense) 76 (1,193) -90.4% NMF (24) 4,730 NMF 2 (64) NMF -87.8% 5,169 11,849 -56.4% (1,010) NMF (966) (2,143) -54.9% Profit 654 4,829 -86.5% 3,720 -82.4% 4,203 9,706 -56.7% BALANCE SHEET HIGHLIGHTS Change Change Sep-20 Sep-19 Jun-20 GEL thousands, unless otherwise stated y-o-y 9-0-9 Cash and cash equivalents 155,782 170,787 -8.8% 187,920 -17.1% Amounts due from credit institutions 14,614 22,534 -35.1% 13,605 7.4% Investment securities 74,936 101,511 -26.2% 93,549 -19.9% Loans to customers and finance lease receivables 702,231 556,541 26.2% 638,713 9.9% Other assets 47,394 59,397 -20.2% 50,667 -6.5% Total assets 994,957 910,770 9.2% 984,454 1.1% Client deposits and notes 596,360 588,647 1.3% 647,977 -8.0% Amounts owed to credit institutions 209,535 132,648 58.0% 144,815 44.7% Debt securities issued 49,214 72,931 -32.5% 57,289 -14.1% Other liabilities Total liabilities Total equity Total liabilities and equity 22,188 8,239 169.3% 12,873 72.4% 877,297 802,465 9.3% 862,954 1.7% 117,660 108,305 8.6% 121,500 -3.2% 994,957 910,770 9.2% 984,454 1.1%#77KEY RATIOS 77 3Q20 3Q19 2Q20 9M20 9M19 Profitability ROAA, annualised ** 3.0% 3.2% 2.4% 1.1% 3.0% ROAA, annualised (unadjusted) 3.0% 3.2% 2.4% 1.1% 2.9% ROAE, annualised ** 26.0% 26.8% 21.8% 9.9% 24.7% RB ROAE ** 25.0% 30.7% 16.4% 5.6% 27.6% CIB ROAE ** 30.7% 24.6% 31.5% 17.1% 24.5% ROAE, annualised (unadjusted) 26.0% 26.8% 21.8% 9.9% 23.7% Net interest margin, annualised 4.8% 5.4% 4.2% 4.7% 5.7% RB NIM 4.8% 6.1% 4.0% 4.6% 6.3% Loan yield, annualised CIB NIM RB Loan yield CIB Loan yield 3.6% 3.2% 3.4% 3.7% 3.5% 10.7% 11.5% 10.2% 10.6% 11.8% 11.7% 12.8% 11.1% 11.5% 13.1% 8.6% 8.9% 8.3% 8.6% 9.1% Liquid assets yield, annualised 3.3% 3.2% 3.4% 3.5% 3.4% Cost of funds, annualised 4.7% 4.5% 4.8% 4.8% 4.5% Cost of client deposits and notes, annualised 3.8% 2.9% 3.5% 3.5% 3.0% RB Cost of client deposits and notes 3.1% 2.6% 2.9% 2.9% 2.7% CIB Cost of client deposits and notes 4.6% 3.2% 4.2% 4.2% 3.4% Cost of amounts due to credit institutions, annualised 6.9% 6.8% 7.3% 7.3% 7.0% Cost of debt securities issued 7.0% 7.7% 7.7% 7.5% 7.6% Operating leverage, y-o-y *** 1.9% -5.2% -13.6% -6.4% -1.7% Operating leverage, q-o-q Efficiency Cost Income *** *** 17.8% 1.2% -11.9% 0.0% 0.0% 37.1% 37.9% 43.9% 39.7% 37.3% RB Cost/Income *** CIB Cost/Income *** 41.8% 38.0% 56.3% 47.5% 37.1% 23.0% 30.4% 22.9% 21.8% 29.2% Cost Income (unadjusted) 37.1% 37.9% 43.9% 39.7% 38.8% * For the description of Key Ratios, refer to page 80 ** The 9M19 ratios are adjusted for one-off employee costs related to termination benefits of the former CEO and executive management *** The 9M19 ratios are adjusted for one-off employee costs related to termination benefits of former executive management#78KEY RATIOS 3Q20 3Q19 2Q20 9M20 9M19 Liquidity NBG liquidity coverage ratio (minimum requirement 100%) 147.0% 118.5% 135.4% 147.0% 118.5% Liquid assets to total liabilities 33.7% 32.9% Net loans to client deposits and notes 104.9% 118.0% 32.1% 108.8% 33.7% 32.9% 104.9% 118.0% Net loans to client deposits and notes + DFIs 92.1% 103.4% 94.5% Leverage (times) 7.9 7.6 7.7 92.1% 7.9 103.4% 7.6 Asset Quality: NPLs (in GEL) 530,631 NPLs to gross loans to clients 3.8% 339,118 2.9% NPL coverage ratio 76.8% 85.3% 355,260 2.7% 115.7% 530,631 3.8% 339,118 2.9% 76.8% 85.3% NPL coverage ratio, adjusted for discounted value of collateral 131.4% 129.3% 166.3% 131.4% 129.3% Cost of credit risk, annualised 0.2% 0.5% -0.2% 2.4% 1.1% RB Cost of credit risk 0.8% 0.9% 0.2% 2.7% 1.6% CIB Cost of credit risk -1.1% -0.2% -1.7% 1.7% 0.2% Capital Adequacy: NBG (Basel III) CET1 capital adequacy ratio 9.9% 11.1% 9.9% 9.9% 11.1% Minimum regulatory requirement 6.9% 9.5% 6.9% 6.9% 9.5% NBG (Basel III) Tier I capital adequacy ratio 12.0% 13.3% 12.0% 12.0% 13.3% Minimum regulatory requirement 8.7% 11.6% 8.7% 8.7% 11.6% NBG (Basel III) Total capital adequacy ratio 17.3% 16.8% 17.4% 17.3% 16.8% Minimum regulatory requirement 13.3% 16.1% 13.3% 13.3% 16.1% * For the description of Key Ratios, refer to page 80 78#79KEY OPERATING DATA Sep-20 Sep-19 Jun-20 Selected operating data: Total assets per FTE 2,976 2,402 2,671 Number of active branches, of which: 211 276 229 - Express branches (including Metro) 105 167 121 - Bank of Georgia branches 95 97 97 - Solo lounges 17 12 17 Number of ATMs. Number of cards outstanding, of which: - Debit cards 947 911 940 2,184,591 2,121,830 2,178,053 1,879,970 1,674,105 - Credit cards 304,621 447,725 Number of POS terminals Number of Express Pay terminals FX Rates: 25,706 3,130 21,088 3,231 1,828,691 349,362 23,787 3,118 GEL/US$ exchange rate (period-end) 3.2878 2.9552 GEL/GBP exchange rate (period-end) 4.2255 3.6319 3.0552 3.7671 Full time employees (FTE), of which: 7,112 7,304 7,181 - Full time employees, BOG standalone 5,598 5,706 5,693 - Full time employees, BNB 538 584 543 - Full time employees, other 976 1,014 945 Shares outstanding Ordinary shares Treasury shares Total shares outstanding 47,528,417 1,641,011 49,169,428 47,574,153 1,595,275 49,169,428 47,536,332 1,633,096 49,169,428 79#80KEY RATIO DEFINITIONS | | | | | Cost of funds Interest expense of the period divided by monthly average interest bearing liabilities; 80 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#81COMPANY INFORMATION 81 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 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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