[PPT] - Capturing Growth Opportunities Investor Presentation: 2Q15 & PowerPoint Presentation

SLIDE 1

www.bogh.co.uk August 2015

Capturing Growth Opportunities

Investor Presentation: 2Q15 & 1H15 results

SLIDE 2

www.bogh.co.uk August 2015

Disclaimer

Forward Looking Statements

This presentation contains forward-looking statements that are based on current beliefs or expectations, as well as assumptions about future

events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-

looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or

ther words of similar meaning. Undue reliance should not be placed on any such statements because, by their very nature, they are subject

to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and JSC Bank of Georgia and/or the Bank of Georgia Holdings’ plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are various factors which could cause actual results to differ materially from those expressed or implied in forward-looking

statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are

changes in the global, political, economic, legal, business and social environment. The forward-looking statements in this presentation speak only as of the date of this presentation. JSC Bank of Georgia and Bank of Georgia Holdings undertake no obligation to revise or update any forward-looking statement contained within this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise.

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www.bogh.co.uk August 2015

BGH | Shareholder structure and share price

BGH shareholder structure

Note: Bank of Georgia Holdings PLC (BGH) (LSE: BGEO) is a UK- incorporated holding company of JSC Bank of Georgia

As of 30 June 2015

BGH has been included in the FTSE 250 and FTSE All-share Index Funds since 18 June 2012

page 4

Share price performance

Up 141% since premium listing1

950,000 2,000,000 5,300,000 9,500,000 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Average daily trading volume 2011 2012 2013 2014

US$

US$ millions

GBP

Average daily trading volume

1Share price change calculated from the last price of BGEO LI on 27 February 2012 to the price of BGEO LN on 31 July 2015 2 Market capitalisation for Bank of Georgia Holdings PLC, the Bank’s holding company, as of 31 July 2015, GBP/USD exchange rate of 1.5587

x50 growth in market capitalisation

8 10 12 14 16 18 20 22 24 26 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 BGEO LN GDR

SLIDE 5

www.bogh.co.uk August 2015

page 5 #1 Healthcare company in Georgia

Revenue oGEL

107.4mln in 1H15

EBITDA 23.1mln

Healthcare services

41 healthcare facilities
2,220 beds
Over 2/3 of population

covered

Market share of

22.1% by beds, HTMC acquisition increased to 26.6%

Health insurance

38.3% market share
Insuring 256k people

BGH at a glance

1Per GGU management accounts, neither audited or reviewed by auditors or Bank of Georgia

Source: Company, financial and operating data is for FY 2014

Real Estate Business Healthcare Business Utilities (GGU) Leasing

Investment Business Banking Business

Payment Services BNB Investment Management IB

Wealth management, research,

advisory, brokerage, private equity

AUM of GEL 1,231.4mln
WM client deposits GEL 904.8mln

#1 Real Estate company in Georgia

2 completed projects

and 4 under construction

Total sales of 1,376

appartments US$115.8mln since 2011, of which US$58.9 mln to be recognised upon completion of projects

99% sale in completed

projects

72% pre-sales for on-

going 4 projects

Total BOG mortgages

sold GEL 66.3mln Major player on the market

Provides water and

wastewater services to 1.4mln people (1/3 of Georgia)

Operates 3 hydro

facilities with 143MW capacity

Acquired 25% share

with an option to acquire additional 24.9%

2014 EBITDA of

GEL51.6mln1

GGU profit (BOG

share) of GEL 2.0 mln in 2Q15 and GEL 0.7 mln in 1H15

Group Structure

Plans to divest from BNB

GGU

Water utility and hydro Legacy Investments

Corporate Banking Retail Banking P&C Insurance Other Banking Businesses #1 Corporate Bank in Georgia

5k clients
GEL 2,174.1mln loans
GEL 1,371.9mln client deposits

#1 Retail Bank in Georgia

1.9mln retail clients
246 branches
685 ATMs
2,284 Express Pay terminals
7,668 POS terminals
928,999 Express cards
1.9mln cards
GEL 2,623.6mln net loans
GEL 1,736.5mln client deposits

In August Bank of Georgia completed its legal restructuring in accordance with the National Bank

f Georgia’s intention to regulate banks in Georgia
n a standalone basis and thereby limit investments

in non-banking subsidiaries by locally regulated banking entities.

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www.bogh.co.uk August 2015

21.0% 21.8% 19.6% Retail Loans / GDP Corporate Loans / GDP

BGH | Updated our strategy from 3x20 to 4x20

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1 Ratios calculated based on NBG Data as at 31 December2014.

Earlier Strategy

ROAE c.20% TIER I c.20% Growth c.20%

Leading Georgian bank with investments in non- core sectors with a divestment strategy Dividend Policy:  Payout Ratio 25-40%  One-off dividends from divestments over time

1 2 3

RoAE Underpenetrated Retail Banking Sector Provides Room for Further Growt1 Capital Allocation, 1H15 (GELm)

Current Strategy – Georgia Focused Banking Group with an Investment Arm

External corporate indebtedness

Ongoing Dividends

 Recurring: linked to recurring profit from banking business  Aiming 25-40% dividend payout ratio  Aiming for at least 3 special dividends in next 5 years, representing at least 50% of regular dividend from banking business

Investment Business

ROE c.20% Tier I c.20%

Growth c.20%

ROAE of 19.3% in 2Q15 ROAE of 19.3% in 1H15 Strong internal cash generation to support loan growth without compromising capital ratios Tier I ratio of 20.4% as of 30 Jun 2015 Aiming 20% growth in retail banking business 19.8% y-o-y constant currency growth excluding Privatbank as of 30 Jun 2015

1 2 3

Min. IRR
f 20%

4

 Opportunistic investments  Staging and small capital commitments  EBITDA potential of at least GEL60m (c.US$30m) in 3-4 years  Clear exit path

Highly disciplined approach to unlock value through selective investments in Georgia, which have a well defined exit path

Investment Approach

 Target investments with min. 20% IRR and partial or full exit in max 6 years

At least 80% Profit Contribution

2Q15: GEL 61mln or 85%

Target Current contribution

Up to 20%

Target Current contribution

2Q15: GEL 11mln or 15%

Banking Business

21.6% 14.2%

557 544

RB CB

For 2014, paid dividend of GEL 2.10 per share, a 5.0% y-o-y increase implying 31.2% payout ratio

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www.bogh.co.uk August 2015

Neil Janin, Chairman of the Supervisory Board, Independent

Director experience: formerly director at McKinsey & Company in Paris; formerly co-chairman of the commission of the French Institute

f Directors (IFA); formerly Chase Manhattan Bank (now JP

Morgan Chase) in New York and Paris; Procter & Gamble in Toronto

Irakli Gilauri, Group CEO

experience: formerly EBRD banker; MS in banking from CASS Business School, London; BBS from University of Limerick, Ireland

David Morrison, Chairman of the Audit Committee, Vice

Chairman of the Supervisory Board, Independent Director experience: senior partner at Sullivan & Cromwell LLP prior to retirement

Al Breach, Chairman of the Remuneration Committee,

Independent Director experience: Head of Research, Strategist & Economist at UBS: Russia and CIS economist at Goldman Sachs

Kim Bradley, Chairman of Risk Committee, Independent

Director experience: Goldman Sachs AM, SeniorExecutive at GE Capital, President of Societa Gestione Crediti, Board Chairman at Archon Capital Deutschland

BGH | Robust corporate governance compliant with UK Corporate Governance Code

Board of Directors of Bank of Georgia Holdings PLC

Hanna Loikkanen, Independent Director

experience: Currently advisor to Representative office of East Capital international; previously: Senior executive at East Capital, FIM Group Russia, Nordea Finance, SEB

Kaha Kiknavelidze, Independent Director

experience: currently managing partner of Rioni Capital, London based investment fund; previously Executive Director of Oil and Gas research team for UBS

Tamaz Georgadze, Independent Director

experience: Partner at McKinsey & Company in Berlin, Founded SavingGlobal GmbH, aide to President of Georgia

Bozidar Djelic, Independent Director

experience: EBRD’s ‘Transition to Transition’ senior advisory group, Deputy Prime Minister of Serbia, Governor of World Bank Group and Deputy Governor of EBRD, Director at Credit Agricole 8 non-executive Supervisory Board members; 8 Independent members, including the Chairman and Vice Chairman

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www.bogh.co.uk August 2015

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BGH | New Management Structure

8 8

Irakli Gilauri, Group CEO, formerly EBRD banker; MS in banking from CASS Business School, London; BBS from University of Limerick, Ireland Sulkhan Gvalia, Deputy CEO, Corporate Banking; formerly Chief Risk Officer, c.20 years banking experience founder of TUB, Georgian bank acquired by BOG in 2004 Archil Gachechiladze, Group CFO and Deputy CEO, Investment Management of JSC Bank of Georgia; formerly Deputy CEO in charge of Corporate Banking, Deputy CEO of TBC Bank, Georgia; Lehman Brothers Private Equity, London; MBA from Cornell University Avto Namicheishvili, Deputy CEO, Group Legal Counsel; previously partner at Begiashvili &Co, law firm in Georgia; LLM from CEU, Hungary George Chiladze, Deputy CEO, Chief Risk Officer; formerly Deputy CEO in Finance, Deputy CEO at Partnership Fund, Programme trading desk at Bear Stearns NY, Ph.D. in physics from John Hopkins University in Baltimore Irakli Burdiladze, CEO, m2 Real Estate; previously CFO at GMT Group, Georgian real estate developer; Masters degree from Johns Hopkins University Nikoloz Gamkrelidze, CEO, Georgia Healthcare Group; previously Group CFO, CEO of Aldagi BCI and JSC My Family Clinic; World Bank Health Development Project; Masters degree in International Health Management from Imperial College London, Tanaka Business School Mikheil Gomarteli, Deputy CEO, Retail Banking; 15 years work experience at BOG Murtaz Kikoria, CEO of Bank of Georgia; previously CEO of Group’s healthcare business; c.20 years banking experience including various senior positions at Bank of Georgia Group, Senior Banker at EBRD and Head of Banking Supervision at the National Bank of Georgia

Bank of Georgia Holdings PLC – No changes JSC Bank of Georgia Georgia Healthcare Group m2 Real Estate

Levan Kulijanishvili, Chief Financial Officer 15 year of experience at BOG. Formerly Head of Security and Internal Audit at Bank of Georgia; Holds MBA from Grenoble School of Business, in Grenoble, France

New Holding Company – BGEO group

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 Tornike Gogichaishvili, Chief Operating Officer Previously CEO of Aldagi and CFO of BG Bank, Ukraine; Holds Executive Diploma from Said Business School, Oxford

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www.bogh.co.uk August 2015

(7,835) 71.9% Cost of credit risk (83,708) (27,163) NMF (81,536) (26,080) NMF (2,172) (1,083) 100.6% Profit 134,369 111,982 20.0% 120,264 99,893 20.4% 14,105 12,089 16.7% Earnings per share (basic) 3.47 3.15 10.2% BGH Consolidated Banking Business* Investment Business* QUARTERLY INCOME STATEMENT Change Change Change Change Change Change GEL thousands 2Q15 2Q14 Y-O-Y 1Q15 Q-O-Q 2Q15 2Q14 Y-O-Y 1Q15 Q-O-Q 2Q15 2Q14 Y-O-Y 1Q15 Q-O-Q Net banking interest income 122,789 82,513 48.8% 120,989 1.5% 126,403 83,779 50.9% 123,058 2.7%

Net fee and commission income

29,121 26,228 11.0% 26,854 8.4% 30,172 27,080 11.4% 28,090 7.4%

Net banking foreign currency gain

19,765 11,395 73.5% 18,962 4.2% 19,765 11,395 73.5% 18,962 4.2%

Net other banking income

2,481 2,241 10.7% 1,790 38.6% 2,810 2,433 15.5% 2,095 34.1%

Gross insurance profit

5,817 6,352

8.4%

7,574

23.2%

3,473 3,931

11.7%

5,306

34.5%

2,799 2,827

1.0%

2,691 4.0% Gross healthcare profit 18,099 13,627 32.8% 16,877 7.2%

18,099

13,627 32.8% 16,877 7.2% Gross real estate profit (41) 3,476 NMF 1,209 NMF

(41)

3,476 NMF 1,209 NMF Gross other investment profit 4,734 3,498 35.3% 1,398 NMF

4,709

3,437 37.0% 1,543 NMF Revenue 202,765 149,330 35.8% 195,653 3.6% 182,623 128,618 42.0% 177,511 2.9% 25,566 23,367 9.4% 22,320 14.5% Operating expenses (76,848) (63,948) 20.2% (76,058) 1.0% (65,244) (54,260) 20.2% (65,277)

0.1%

(12,381) (10,333) 19.8% (11,654) 6.2% Operating income before cost of credit risk / EBITDA 125,917 85,382 47.5% 119,595 5.3% 117,379 74,358 57.9% 112,234 4.6% 13,185 13,034 1.2% 10,666 23.6% Profit from associates 1,979

(1,310)

NMF

1,979
(1,310)

NMF Depreciation and amortization of investment business (2,579) (2,256) 14.3% (2,688)

4.1%
(2,579)

(2,256) 14.3% (2,688)

4.1%

Net foreign currency gain (loss) from investment business 2,689 (1,433) NMF 3,690

27.1%
2,689

(1,433) NMF 3,690

27.1%

Interest income from investment business 622 (71) NMF 617 0.8%

844

195 NMF 818 3.2% Interest expense from investment business (2,632) (1,718) 53.2% (2,463) 6.9%

(7,501)

(3,994) 87.8% (5,969) 25.7% Cost of credit risk (41,867) (13,846) NMF (41,841) 0.1% (40,764) (13,279) NMF (40,771) 0.0% (1,103) (567) 94.5% (1,070) 3.1% Profit 72,030 58,317 23.5% 62,339 15.5% 61,453 53,617 14.6% 58,810 4.5% 10,577 4,700 125.0% 3,529 199.7% Earnings per share (basic, diluted) 1.84 1.64 12.2% 1.63 12.9%

BGH | P&L results highlights

page 10

2Q15 P&L

* Note: Banking Business and Investment Business financials do not include interbusiness eliminations. Detailed financials, including interbusiness eliminations are provided in annexes.

1H15 P&L

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www.bogh.co.uk August 2015

BGH | Balance sheet highlights

page 11

30 June 2015 Balance Sheet

**Pro-forma for 1Q15, implying allocation of US$ 30mln capital earmarked for Banking Business and held at the holding company. Ratios reported to NBG are reported in the appendix * Note: Banking Business and Investment Business financials do not include interbusiness eliminations. Detailed financials, including interbusiness eliminations are provided in annexes.

Effective 1Q15, we have changed our reporting format to reflect our recently updated

strategy. As a result, we now present our consolidated Group financial statements as a

combination of our Banking Business and Investment Business, with corresponding interbusiness eliminations.

Banking Business comprises: Retail Banking, Corporate Banking, Investment

Management, P&C insurance, and Belarusky Narodny Bank (“BNB”)

Investment Business comprises: Healthcare Business (GHG) including

healthcare services (“Evex”) and health insurance (“Imedi L”), Real Estate Business (m2 Real Estate), Water & Utility Business (GGU) other legacy investments (including wine subsidiary Teliani Valley)

Note reporting format change

Bank of Georgia Holdings PLC Banking Business Investment Business Balance Sheet Jun-15 Jun-14 Change Mar-15 Change Jun-15 Jun-14 Change Mar-15 Change Jun-15 Jun-14 Change Mar-15 Change Y-O-Y Q-O-Q Y-O-Y Q-O-Q Y-O-Y Q-O-Q Liquid assets 2,741,533 1,837,139 49.2% 2,427,226 12.9% 2,726,749 1,817,630 50.0% 2,402,308 13.5% 127,508 92,605 37.7% 199,209

36.0%

Loans to customers and finance lease receivables 5,052,752 3,650,791 38.4% 5,156,386

2.0%

5,142,221 3,714,213 38.4% 5,248,559

2.0%
Accounts receivable and other loans

77,866 60,677 28.3% 73,315 6.2% 15,474 9,622 60.8% 13,063 18.5% 70,343 51,903 35.5% 64,947 8.3% Insurance premiums receivable 58,142 52,043 11.7% 58,816

1.1%

26,519 14,728 80.1% 22,337 18.7% 32,023 37,436

14.5%

37,205

13.9%

Prepayments 52,145 28,188 85.0% 42,748 22.0% 30,779 18,417 67.1% 24,969 23.3% 21,366 9,771 118.7% 17,779 20.2% Inventories 131,534 90,489 45.4% 113,322 16.1% 10,379 6,689 55.2% 7,697 34.8% 121,155 83,800 44.6% 105,625 14.7% Investment property 221,506 152,292 45.4% 194,623 13.8% 143,873 127,374 13.0% 128,376 12.1% 77,633 24,918 211.6% 66,247 17.2% Property and equipment 669,153 534,289 25.2% 618,474 8.2% 338,858 293,626 15.4% 334,516 1.3% 330,295 240,663 37.2% 283,958 16.3% Total assets 9,375,059 6,667,683 40.6% 9,030,053 3.8% 8,712,710 6,232,720 39.8% 8,447,951 3.1% 883,373 573,326 54.1% 864,053 2.2% Client deposits and notes 4,104,417 3,074,710 33.5% 4,099,029 0.1% 4,212,822 3,148,729 33.8% 4,271,854

1.4%
Amounts due to credit institutions

2,139,517 1,240,128 72.5% 1,780,636 20.2% 2,045,093 1,145,875 78.5% 1,694,668 20.7% 189,124 156,753 20.7% 181,773 4.0% Debt securities issued 1,063,123 786,432 35.2% 1,026,689 3.5% 990,257 760,144 30.3% 962,587 2.9% 79,894 26,690 199.3% 66,964 19.3% Accruals and deferred income 132,832 83,784 58.5% 124,344 6.8% 14,369 9,917 44.9% 20,949

31.4%

118,463 73,867 60.4% 103,395 14.6% Insurance contracts liabilities 73,001 60,537 20.6% 70,156 4.1% 42,910 25,890 65.7% 34,685 23.7% 30,091 34,647

13.1%

35,471

15.2%

Total liabilities 7,719,116 5,410,807 42.7% 7,329,905 5.3% 7,463,969 5,213,131 43.2% 7,163,763 4.2% 476,171 336,039 41.7% 448,093 6.3% Total equity 1,655,943 1,256,876 31.8% 1,700,148

2.6%

1,248,741 1,019,589 22.5% 1,284,188

2.8%

407,202 237,287 71.6% 415,960

2.1%

Book value per share 41.74 34.95 19.4% 42.71

2.3%

Banking Business Ratios 2Q15 1Q15 2Q14 1H15 1H14 Profitability ROAA 2.9% 3.0% 3.5% 2.9% 3.3% ROAE 19.3% 19.2% 21.0% 19.3% 19.3% Net Interest Margin 7.6% 7.8% 7.4% 7.8% 7.5% Loan Yield 14.6% 14.5% 14.3% 14.6% 14.5% Cost of Funds 5.0% 5.0% 4.7% 5.0% 4.9% Cost of Customer Funds 4.4% 4.4% 4.2% 4.4% 4.4% Cost of Amounts Due to Credit Institutions 5.3% 5.2% 4.7% 5.3% 4.8% Cost / Income 35.7% 36.8% 42.2% 36.2% 41.9% NPLs To Gross Loans To Clients 4.1% 3.5% 3.8% 4.1% 3.8% NPL Coverage Ratio 82.2% 74.2% 73.8% 82.2% 73.8% NPL Coverage Ratio, adjusted for discounted value of collateral 115.1% 118.0% 116.1% 115.1% 116.1% Cost of Risk 2.7% 3.1% 0.9% 2.9% 0.9% Tier I capital adequacy ratio (BIS) 20.4% 19.9% 22.5% 20.4% 22.5% Total capital adequacy ratio (BIS) 26.7% 23.9% 26.3% 26.7% 26.3% Tier I capital adequacy ratio (New NBG, Basel II) 10.4% 9.8% 10.8% 10.4% 10.8% Total capital adequacy ratio (New NBG, Basel II) 15.9% 12.9% 14.0% 15.9% 14.0%

Key Ratios

SLIDE 12

www.bogh.co.uk August 2015

247.8 360.1 47.1 73.4 0.8 47.9 (5.1) 38.9 (9.6)

50

50 100 150 200 250 300 350 400 450 Revenue 1H14 Banking Business Investment Business Revenue 1H15 128.6 182.6 23.4 34.5 2.2 25.6 (2.7) 19.5 (5.4)

50

50 100 150 200 250 Revenue 2Q14 Banking Business Investment Business Revenue 2Q15 54.3 65.2 10.3 5.5 2.0 12.4 (0.6) 5.5 (0.8)

10

10 20 30 40 50 60 70 80 90 Operating expenses 2Q14 Banking Business Investment Business Operating expenses 2Q15 103.8 130.5 19.7 11.3 4.3 24.0 (1.3) 15.4 (1.6)

20

20 40 60 80 100 120 140 160 180 Operating expenses 1H14 Banking Business Investment Business Operating expenses 1H15

BGH | Strong revenue growth, with positive operating leverage

page 12

Revenue, quarterly Operating Expenses, quarterly

149.3 202.8 63.9 76.8

+35.8% +20.2%

+26.8% growth ex-Privatbank +42.0% +20.2% +9.4% +19.8% +29.7% Investment Business growth without m2 Investment business Banking business

GEL millions

Investment business Banking business Change y-o-y Eliminations Eliminations

BGH BGH GEL millions

Change y-o-y Banking business Eliminations

289.8

+37.5%

+45.3% +1.7% Banking business Eliminations

122.2

+25.1%

+25.8% +21.8%

Revenue, half-year Operating Expenses, half-year

BGH BGH

398.4

+29.6% growth ex-Privatbank +25.3% Investment Business growth without m2

152.9

Investment business Investment business Change y-o-y Change y-o-y

GEL millions GEL millions

SLIDE 13

www.bogh.co.uk August 2015

1,248.7 462 95 544 19 128 211 79 117 407.2 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

RB Privatbank CB IM Other BB GHG M2 Other IB 30-Jun-15

61.5 10.5 27.6 5.0 21.6 3.0 4.3 6.3

0.9

5.1 10 20 30 40 50 60 70 80

RB Privatbank CB IM Other BB GHG m2 Other IB 2Q15

BGH | Strong profitability

page 13

Profit, quarterly

+23.5%

BGH GEL millions

Change y-o-y Investment business Banking business

16.3%

118.4%

31.7%
32.7%

121.6% n/a

NMF

Equity

BGH

ROAE 1H15

1.7k

Investment business Banking business

GEL millions

72.0

*Proforma: US$30 million capital allocated to Retail Banking (from other Banking Business)

Profit, half-year

120.3 14.1

59.1 6.1 36.4 7.6 11.0 12.3

2.0

3.8 20 40 60 80 100 120 140

RB Privatbank CB IM Other BB GHG m2 Other IB 1H15

134.4

BGH

+20.0%

Change y-o-y

23.1% 14.2% NMF 18.5% 14.1% 13.3%

NMF

8.9%

85.7% 41.0% 10.3% 99.0% n/a

NMF

SLIDE 14

www.bogh.co.uk August 2015

50.2 102.4 2.7 155.3 20 40 60 80 100 120 140 160 180 200 30-Jun-15 Other liabilities Accruals and deferred income Borrowed funds 5,213.1 7,464.0 336.0 476.2 (138.4) (221.0) 5,410.8 7,719.1

300

1,700 3,700 5,700 7,700 9,700 30-Jun-14 30-Jun-15 Banking Business liabilities Investment Business liabilities 196.0 93.5 289.5 50 100 150 200 250 300 30-Jun-15 Borrowed funds Other liabilities 98.8 74.3 60.9 234.1 50 100 150 200 250 300 30-Jun-15 Other assets Investment properties Inventories 317.9 182.9 500.8 100 200 300 400 500 30-Jun-15 PPE Other assets

BGH | Balance Sheet, 30 June 2015

page 14

Assets

GEL millions BGH Assets

9.4% 92.9% 31.3% 59.0% 9.7% 36.5% 63.5% 26.1% 31.7% 42.2%

Liabilities

Banking Business Assets GHG Assets M2 Real Estate Assets BGH Liabilities Banking Business Liabilities GHG Liabilities M2 Real Estate Liabilities GEL millions

6.2% 96.7% 56.4% 27.4% 13.3% 2.9% 32.3% 67.7% 1.7% 65.9% 32.4% Loan book growth:

Privatbank loans

GEL 245.6mln

31.8% gowth ex-

Privatbank

11.2% growth of

loans on constant currency basis, ex- Privatbank Deposits growth:

Privatbank deposits

GEL 267mln

25.3% growth ex-

Privatbank

5.1% growth of

deposits on constant currency basis, ex- Privatbank

6,232.7 8,712.7 573.3 883.4 (138.4) (221.0) 6,667.7 9,375.1

300

1,700 3,700 5,700 7,700 9,700 30-Jun-14 30-Jun-15 Banking Business assets Investment Business assets 1,817.6 2,726.7 3,714.2 5,142.2 700.9 843.7 6,232.7 8,712.7 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 30-Jun-14 30-Jun-15 Liquid assets Net loans Other assets 3,148.7 4,212.8 1,145.9 2,045.1 760.1 990.3 158.4 215.8 5,213.1 7,464.0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 30-Jun-14 30-Jun-15 Other liabilities Debt securities issued Amounts due from credit institutions Client Deposits

SLIDE 15

www.bogh.co.uk August 2015

128.6 53.6 177.5 58.8 182.6 61.5 50 100 150 200 Revenue Profit 2Q14 1Q15 2Q15 5,333 1,596 3,127 2,724 890 6,185 1,939 3,535 3,106 1,056 7,044 1,875 4,441 3,482 1,231 8,713 2,727 5,142 4,213 1,249 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Total assets Liquid assets Net loans to customers Client deposits Total equity 31-Dec-12 31-Dec-13 31-Dec-14 30-Jun-15

BOG | The leading bank in Georgia

Leading market position: No. 1 bank in Georgia by assets

(36.0%), loans (33.4%), client deposits (31.6%) and equity (34.7%)1

Underpenetrated market with stable growth perspectives: Real

GDP average growth rate of 5.8% for 2004-2014. Geostat estimates 4.8% GDP growth in 2014. Loans/GDP grew from 9% to 44% in the period of 2003-2014, still below regional average; Deposits/GDP grew from 8% to 40% over the period

Strong brand name recognition and retail banking franchise:

Offers the broadest range of financial products to the retail market through a network of 246 branches, 658 ATMs, 2,284 Express Pay Terminals and c.1.9 million customers (includingc.400,000 Privatbank customers) as of 30 June 2015

The only Georgian company with credit ratings from all three

global rating agencies: S&P: ‘BB-’, Moody's: ‘B1/Ba3’ (foreign and local currency), Fitch Ratings: ‘BB-’; outlooks are ‘Stable’

High standards of transparency and governance: The only entity

from Georgia to be 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
Only private entity to issue Eurobonds from the Caucasus:

US$400 million Eurobonds outstanding including US$150 raised through a tap issue in November 2013. The bonds are currently trading at a yield of c.5.4%

Sustainable growth combined with strong capital, liquidity and

robust profitability

1 Market data based on standalone accounts as published by the National Bank of Georgia (NBG) as of 31 March 2015 www.nbg.gov.ge (2015 BOG figures include Privatbank) 2Amounts due to customers

GEL million

+14.9% +8.4% +19.2% +13.1% page 16

Balance Sheet

+16.7%

CAGR 2012-2014 444 171 488 193 538 221 100 200 300 400 500 600 Revenue Profit 2012 2013 2014

Income Statement

GEL million

+14.6% +42.0% +14.5% +10.3%

Change y-o-y

Banking Business Banking Business

SLIDE 17

www.bogh.co.uk August 2015

Foreign banks, 25.0% Local banks, 75.0%

33.1% 31.5% 6.9% 5.6% 9.0% 3.8% 10.0% 30.4% 28.8% 5.8% 5.3% 11.8% 5.4% 12.6% 28.6% 27.8% 5.1% 5.3% 12.0% 6.1% 15.2% 31.6% 30.0% 4.9% 5.4% 10.4% 5.2% 12.5% 0% 5% 10% 15% 20% 25% 30% 35% BOG TBC PCB BR LB VTB Others 2012 2013 2014 Q2 2015 35.4% 26.2% 8.3% 6.6% 4.6% 4.2% 14.7% 32.5% 25.3% 6.7% 6.7% 6.2% 4.8% 17.7% 32.2% 25.2% 5.8% 7.0% 5.8% 4.8% 19.1% 33.4% 27.8% 5.8% 7.0% 5.4% 5.0% 15.6%

0% 5% 10% 15% 20% 25% 30% 35% 40% BOG TBC PCB BR LB VTB Others

2012 2013 2014 Q2 2015 36.7% 25.8% 7.3% 5.5% 6.3% 3.8% 14.7% 33.8% 23.7% 6.0% 6.1% 7.7% 4.8% 17.9% 32.6% 24.5% 5.1% 5.8% 7.8% 4.9% 19.3% 36.0% 26.0% 4.9% 5.8% 6.6% 4.8% 15.9%

0% 5% 10% 15% 20% 25% 30% 35% 40% BOG TBC PCB BR LB VTB Others

2012 2013 2014 Q2 2015

Peer group’s market share in total assets Peer group’s market share in gross loans Foreign banks market share by assets Peer group’s market share in client deposits

Note:

All data based on standalone accounts as reported to the National Bank of Georgia and as published by the

National Bank of Georgia www.nbg.gov.ge

BOG includes Privatbank . Privatbank market shares as of 1Q15, TBC includes Constanta

BOG | Leading the competition across the board

Others +2.6% from Privatbank

#1

BOG

#1

BOG

#1

BOG +2.3% from Privatbank Others Others +2.9% from Privatbank Foreign banks, 32.0% Local banks, 68.0%

2006 30-Jun-2015

No state

wnership of

commercial banks since 1994

page 17

June 2015 June 2015 June 2015

SLIDE 18

www.bogh.co.uk August 2015

Liquid assets 31.3% Loans to customers, net 59.0% Other assets 9.7% Total: GEL 2.7 bn

Banking Business | Diversified asset structure

Total asset structure | 30 June 2015 Liquid assets | 30 June 2015

Loans breakdowns | 30 June 2015

Includes: Privatbank total assets of GEL 416.2mln, of which 59% loans

*Retail loans include loans of Retail Banking segment, BNB retail loans, Investment Management and Affordable Housing Mortgages, Corporate loans include Corporate Banking Segment and BNB Corporate loans

page 18

Includes: Privatbank liquid assets of GEL 147.4mln (5.4% of total liquid assets) Includes Privatbank GEL 245.6 mln loans, predominantly consumer loans and credit card loans

Banking Business Banking Business Total: GEL 8.7 bn Total Loans breakdown by segments Total: GEL 5.1bn

* Amounts due from credit institutions consists of obligatory reserves with central banks (NBG & NBRB), time deposits with credit institutions with original maturities of over 90 days and interbank loans receivable

Retail Banking Loans breakdown by product Total: GEL 2.6bn Banking Business Corporate Banking Loans breakdown by sectors Total: GEL 2.2bn

Cash and cash equivalents 45.9% Amounts due from credit institutions 21.1% Investment securities 33.0%

Retail Banking loans 51.0% Corporate Banking loans 42.8% Investment Management loans 0.3% BNB loans 5.9%

Mortgage loans 27.7% Micro- and agro- financing loans and SME loans 31.4% General consumer loans 21.9% Credit cards and

verdrafts

11.9% Pawn loans 2.3% Automobile loans 0.9% POS loans 3.8% Manufacturing 25.5% Trade 17.2% Real estate 17.7% Hospitality 5.2% Transport & Communication 5.6% Electricity, gas and water supply 3.7% Construction 4.6% Financial intermediation 2.7% Mining and quarrying 4.7% Health and social work 4.3% Other 8.9%

SLIDE 19

www.bogh.co.uk August 2015

GEL mln 49.5% 50.1% 0.4%

2,701 62 2.3% Total

1,336 49 3.7% 1,352 13 1.0% 13 0.3 2.1% 0% 20% 40% 60% 80% 100% Loan portfolio Provision amount LLR rate Other GEL USD 82.8% 12.3% 4.9%

2,272 101 4.5% Total

GEL mln 1,885 69 3.7% 280 31 10.9% 111 2 1.5% 0% 20% 40% 60% 80% 100% Loan portfolio Provision amount LLR rate Other GEL USD

Banking Business | US$ loan portfolio breakdown

page 19

Note: standalone BOG figures from management accounts (non-IFRS)

44.8% of Retail Banking Loans were denominated in USD loans with non-USD income
We offered re-profiling* in Feb-2015. Since, 810 loans (out of 14,000) were re-profiled, with total value of US$28.9mln
For RB: Loans 15 days past due were 1.4% at 30 June 2015, compared to 1.6% a year ago and 1.0% as of 31 March 2015
33.9% of Corporate Banking Loans denominated in USD loans with non-USD income

Highlights Corporate Banking | 30 June 15 Retail Banking and Wealth Management | 30 June 15

Amounts in GEL million RB Loan Portfolio % of total RB Loan portfolio2 Mortgages Consumer loans (incl Credit Cards) SME & Micro GEL and other currency loans1

1,349 49.9%

77 968 304

USD loans with USD income

143 5.3%

110 26 7

USD loans with non-USD income 1,209

44.8%

550 142 518

Total

2,701 100.0%

737 1,136 828

1includes credit cards 2includes Privatbank loans of which 87% is denominated in GEL

Amounts in GEL million CB Loan Portfolio % of total CB Loan portfolio GEL and other currency loans 390 17.2% USD loans with USD income 1,113 48.9% USD loans with non-USD income 772 33.9% Total 2,272 100.0%

Banking Business Banking Business *Re-profiling implies effectively increasing the tenor of the loan so that monthly payment in Lari stays at the same level it was prior to the recent devaluation of the Lari. When re-profiling, we do not change the interest rate of the loan. We

ffered reprofiling in Feb 2015

SLIDE 20

www.bogh.co.uk August 2015

21.8 16.1 18.9 49.5 100.0 120.9 122.7 147.2 4.5 7.9 12.0 22.5 50 100 150 200 250 2012 2013 2014 1H 2015 NPLs RB & WM NPLs CB NPLs Other 126.3 144.9 153.6 219.2 3.9% 3.9% 3.4% 4.1% 7.9% 7.9% 7.6% 7.6% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 50 100 150 200 250 2012 2013 2014 1H 2015 NPLs NPLs to gross loans Net Interest Margin

Banking Business | Resilient loan portfolio quality (1/2)

NPLs NPL composition NPL coverage ratio

Loan loss reserve

*Retail loans include loans of Retail Banking segment, BNB retail loans, Investment Management and Affordable Housing Mortgages, Corporate loans include Corporate Banking Segment and BNB Corporate loans

GEL thousand GEL thousand GEL thousand page 20 Banking Business Banking Business Banking Business Banking Business

109.1 120.0 103.8 180.1 3.9% 3.9% 3.4% 4.1% 3.4% 3.3% 2.3% 3.4% 0% 1% 2% 3% 4% 5% 20 40 60 80 100 120 140 160 180 200 2012 2013 2014 1H 2015 Loan loss reserves (LLR) NPLs to gross loans LLR as % of gross loans 87.5% 83.8% 68.0% 82.2% 112.7% 110.6% 111.1% 115.1% 0% 20% 40% 60% 80% 100% 120% 140% 2012 2013 2014 30-Jun-15 NPL coverage ratio NPL coverage ratio, discounted for value of collateral

SLIDE 21

www.bogh.co.uk August 2015

0.9% 1.6% 3.1% 2.2% 2.7% 0.9% 0.6% 0.5% 0% 1% 2% 3%

2Q14 1Q15 Devaluation Privatbank 1Q15 2Q15 Privatbank 2Q15

13.3 20.7 40.8 33.7 40.8 11.9 8.2 7.1 5 10 15 20 25 30 35 40 45 50

2Q14 1Q15 Devaluation Privatbank 1Q15 2Q15 Privatbank 2Q15

43.0 60.9 55.7 26.1 54.4 81.5 11.9 15.2 10 20 30 40 50 60 70 80 90

2012 2013 2014 1H14 1H15 Devaluation Privatbank 1H15

Banking Business | Resilient loan portfolio quality (2/2)

page 21

Cost of Credit Risk, quarterly

Banking Business

Cost of Risk ratio, quarterly

Banking Business

1.3% 1.3% 1.2% 0.9% 2.0% 2.9% 0.4% 0.5% 0% 1% 2% 3%

2012 2013 2014 1H14 1H15 Devaluation Privatbank 1H15

Like-for-like Like-for-like Like-for-like Like-for-like

Cost of Credit Risk, half year Cost of Risk ratio, half-year

Banking Business Banking Business GEL millions GEL millions

SLIDE 22

www.bogh.co.uk August 2015

1,302 1,562 1,245 1,523 3,166 3,415 3,558 4,346 353 537 178 220 41.1% 45.7% 35.0% 35.1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2012 2013 2014 30-Jun-15 Liquid assets (NBG) Liabilities (NBG) Excess liquidity

Banking Business | Strong liquidity (1/2)

Liquid assets to total liabilities NBG liquidity ratio Net loans to customer funds & DFIs

Net loans to customer funds

Pro-forma, implying allocation of US$ 30mln capital earmarked for Banking Business and held at the holding company. Ratios reported to NBG are reported in the appendix

GEL millions

Bank Standalone, GEL mln NBG min requirement

page 22 Banking Business Banking Business Banking Business Banking Business

1,596 1,904 1,875 2,727 4,430 5,094 5,813 7,464 36.0% 37.4% 32.3% 36.5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2012 2013 2014 30-Jun-15 Liquid assets Total liabilities Liquid assets to total liabilities 92.5% 96.8% 108.6% 102.4% 40% 50% 60% 70% 80% 90% 100% 110% 120% 2012 2013 2014 30-Jun-15 Net loans to customer funds & DFIs, consolidated 114.8% 113.6% 127.5% 122.1% 40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 2012 2013 2014 30-Jun-15 Net loans to customer funds, consolidated

SLIDE 23

www.bogh.co.uk August 2015

12,173

11,394
12,578

7,770 1.4%

1.3%
1.4%

0.6%

2%
2%
1%
1%

0% 1% 1% 2% 2%

15,000
10,000
5,000

5,000 10,000 15,000 2012 2013 2014 30-Jun-15 FC net position, on and off balance, total As % of NBG total regulatory capital (old) 934,875 861,148 800,049 (162,367) (239,761) 620,799 12.3% 11.4% 10.6%

2.1%
3.2%

8.2%

10%
5%

0% 5% 10% 15% 20% 25%

400,000
200,000

200,000 400,000 600,000 800,000 1,000,000 On Demand 0-3 Months 3-6 Months 6-12 Months 1-3 Years >3 Years Maturity gap Maturity gap, as % of total assets 160.8% 218.0% 163.8% 178.6% 105.9% 115.8% 104.5% 105.6% 0% 50% 100% 150% 200% 250% 2012 2013 2014 30-Jun-15 Liquidity coverage ratio Net stable funding ratio

Banking Business | Strong liquidity (2/2)

Liquidity coverage ratio & net stable funding ratio Foreign currency VaR analysis* Open currency position

Cumulative maturity gap, 30 June 2015**

*Daily VaR time series averaged for each respective month **GEL 1,248.3 mln of current accounts and demand deposits are placed in 6-12 months bucket

GEL thousands GEL thousands page 23 GEL thousands JSC Bank of Georgia standalone JSC Bank of Georgia standalone Banking Business JSC Bank of Georgia standalone

116.9 81.9 81.9 135.3 53.2 105.4 220.4 1,036.8 839.4 902.7 1,029.4 562.5 475.5 398.4 407.2 414.5 413.4 429.8 439.7 454.4 2,224.7 2,162.8 2,204.7 2,252.5 2,412.7 2,571.0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Monthly VaR GEL (Average) VaR Limit

SLIDE 24

www.bogh.co.uk August 2015

Excl. US$400 mln

Eurobonds maturing in 2017

41.9 59.7 33.6 19.0 0.8 0.6 0.6

10.0
65.0

90 1.1% 1.5% 0.9% 0.7% 0.0% 0.0% 0.0% 1.7%

1%

0% 1% 2% 3% 4% 5% 10 20 30 40 50 60 70 80 90 100 2015 2016 2017 2018 2019 2020 2021 2023 2025 Senior Loans Subordinated Loans % of Total assets Client deposits & notes, GEL 4,212.8 mln, 58.1% Other amounts due to credit institutions, GEL 1,039.3 mln, 14.3% Borrowings, GEL 1,005.8 mln, 13.9% Debt securities issued, GEL 990.3 mln, 13.7% DFIs, GEL 807.8 mln, 40.5% Eurobonds, GEL 938.7 mln, 47.0% Other debt securities, GEL 51.6 mln, 2.6% Others borrowings, GEL 198.0 mln, 9.9% Time deposits, 57.9% Current account & demand deposits, 42.0%

Banking Business | Funding structure is well established

Interest Bearing Liability structure | 30 June 2015 Well diversified international borrowings | 2Q15 Interest bearing liabilities

Borrowed funds maturity breakdown*

Banking Business has a well-balanced funding structure

with 58.1% of interest bearing liabilities coming from client deposits and notes, 11.1% from Developmental Financial Institutions (DFIs) and 13.0% from Eurobonds, as of 30 June 2015

The Bank has also been able to secure favorable financing

from reputable international commercial sources, as well as DFIs, such as EBRD, IFC, DEG, Asian Development Bank, etc.

As of 30 June 2015, US$31.6 million undrawn facilities from

DFIs with four to eight year maturity

* Consolidated, converted at GEL/US$ exchange rate of 2.2483 of 30 June 2015 ** Total Assets as of 30 June 2015

USD millions page 24 Interest Bearing Liabilities GEL 7.3 bn Banking Business Banking Business Banking Business Of which, GEL 316.2mln or 4.4% Privatbank

2.3%

SLIDE 25

www.bogh.co.uk August 2015

47.3 58.3 22.7 38.7 3.4 4.8 8.2 8.8 81.6 110.6 20 40 60 80 100 120 1H14 1H15 Net fee and commission income Net banking foreign currency gain Net other banking income Gross insurance profit 27.1 28.1 30.2 11.4 19.0 19.8 2.4 2.0 2.7 3.9 5.3 3.5 44.8 54.5 56.2 10 20 30 40 50 60 2Q14 1Q15 2Q15 Net fee and commission income Net banking foreign currency gain Net other banking income Gross insurance profit 83.8 123.1 126.4 44.8 54.5 56.2 128.6 177.5 182.6 50 100 150 200 2Q14 1Q15 2Q15 Net interest income Net non-interest income

Banking Business | Strong revenue growth

Revenue growth | half-year Revenue growth | quarterly Net non-interest income | quarterly

Net non-interest income | half-year

GEL millions

+45.3%

GEL millions

+42.0% +2.9%

GEL millions

+35.5%

GEL millions

+25.4% +3.3%

page 25 +50.1% +35.5% +7.3% +41.2% +70.6% +23.3% Banking Business Banking Business Banking Business Banking Business

166.2 249.5 81.6 110.6 247.8 360.1 100 200 300 400 1H14 1H15 Net interest income Net non-interest income

SLIDE 26

www.bogh.co.uk August 2015

74.4 112.2 117.4

13.3
40.8
40.8
60
40
20

20 40 60 80 100 120 140 2Q14 1Q15 2Q15 Operating income before cost of credit risk Cost of credit risk 144.1 229.6

26.1
81.5
100
50

50 100 150 200 250 1H14 1H15 Operating income before cost of credit risk Cost of credit risk 31.3 38.6 38.1 15.7 17.5 17.9 6.4 8.4 8.3 0.9 0.8 0.9 54.3 65.3 65.2 10 20 30 40 50 60 70 2Q14 1Q15 2Q15 Salaries and other employee benefits Administrative expenses Banking depreciation and amortisation Other operating expenses 61.7 76.7 27.9 35.4 12.5 16.7 1.7 1.7 103.8 130.5 20 40 60 80 100 120 140 1H14 1H15 Other operating expenses Banking depreciation and amortisation Administrative expenses Salaries and other employee benefits

Banking Business | keeping a tight grip on costs

Operating expenses | half-year Operating expenses | quarterly

Net non-recurring items & operating income before cost of credit | quarterly Net non-recurring items & operating income before cost of credit | half-year

GEL millions GEL millions GEL millions GEL millions

+25.7%

+20.1%

0.2%

page 26 Banking Business Banking Business Banking Business Banking Business

SLIDE 27

www.bogh.co.uk August 2015

42.2% 36.8% 35.7% 32% 34% 36% 38% 40% 42% 44% 2Q14 1Q15 2Q15 Cost/Income Ratio 41.9% 36.2% 32% 34% 36% 38% 40% 42% 44% 1H14 1H15 Cost/Income Ratio 128.6 177.5 182.6 54.3 65.3 65.2 20 40 60 80 100 120 140 160 180 200 2Q14 1Q15 2Q15 Revenue Operating expenses 247.8 360.1 103.8 130.5 50 100 150 200 250 300 350 400 1H14 1H15 Revenue Operating expenses

Banking Business | Focus on efficiency

Cost / Income ratio | half-year Cost / Income ratio | quarterly Revenue and operating expenses | quarterly

Revenue and operating expenses | half-year

GEL millions GEL millions + 2.9% q-o-q + 21.7% y-o-y

Operating Leverage

page 27 Banking Business Banking Business Banking Business Banking Business +19.5% y-o-y

Operating Leverage

SLIDE 28

www.bogh.co.uk August 2015

11.6% 11.6% 11.4% 0% 2% 4% 6% 8% 10% 12% 14% Q2 2014 Q1 2015 Q2 2015 Loan yield, FC 20.0% 21.4% 21.6% 19% 20% 21% 22% Q2 2014 Q1 2015 Q2 2015 Loan yield, GEL

Banking Business | growing income notwithstanding the pressure on yields

Loan Yields | annual Loan Yields | quarterly Loan Yields, foreign currency | quarterly

Loan Yields, GEL | quarterly

Loan yields excluding provisions

page 28 Banking Business Banking Business Banking Business Banking Business

26.0% 30.9% 27.2% 30.0% 74.0% 69.1% 72.8% 70.0% 17.2% 16.2% 14.3% 14.6% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0% 20% 40% 60% 80% 100% 2012 2013 2014 1H 2015 Net loans, GEL, consolidated Net loans, FC, consolidated Currency-blended loan yield

27.2% 29.0% 30.0% 72.8% 71.0% 70.0% 14.3% 14.5% 14.6% 0% 5% 10% 15% 20% 0% 20% 40% 60% 80% 100% Q2 2014 Q1 2015 Q2 2015 Net loans, FC, consolidated Net loans, GEL, consolidated Currency-blended loan yield, annualised

SLIDE 29

www.bogh.co.uk August 2015

Banking Business | Stable Cost of Funding

Cost of Funds | half-year Cost of Funds | quarterly Cost of Customer Funds | quarterly

Cost of Customer Funds| annual

page 29 Banking Business Banking Business Banking Business Banking Business 4.9% 5.0% 0% 1% 2% 3% 4% 5% 6% 1H14 1H15 Cost of funds 30.1% 31.8% 28.8% 28.0% 69.9% 68.2% 71.2% 72.0% 7.1% 5.5% 4.2% 4.4% 0% 1% 2% 3% 4% 5% 6% 7% 8% 0% 20% 40% 60% 80% 100% 2012 2013 2014 1H 2015 Client deposits and notes, FC, consolidated Client deposits and notes, GEL, consolidated Currency-blended cost of client deposits 28.8% 27.8% 28.0% 71.2% 72.2% 72.0% 4.2% 4.4% 4.4% 0% 1% 2% 3% 4% 5% 0% 20% 40% 60% 80% 100% Q2 2014 Q1 2015 Q2 2015 Client deposits, FC, consolidated Client deposits, GEL, consolidated Currency-blended cost of client deposits

4.7% 5.0% 5.0% 0% 1% 2% 3% 4% 5% 6% Q2 2014 Q1 2015 Q2 2015 Cost of funds

SLIDE 30

www.bogh.co.uk August 2015

10.8% 11.2% 11.1% 9.8% 10.4% 14.0% 14.2% 14.1% 12.9% 15.9% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio 21.2% 23.0% 22.1% 20.4% 26.1% 27.1% 26.1% 26.7% 0% 5% 10% 15% 20% 25% 30% 2012 2013 2014 30-Jun-15 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

Banking Business | Excellent capital adequacy position

Basel I capital adequacy ratios NBG (Basel 2/3), capital adequacy ratios NBG (Basel 2/3)Tier I Capital and Total Capital

Risk Weighted Assets Basel I vs NBG (Basel 2/3)

GEL ‘000 30 Jun 2015* Dec 2014 Sep 2014 Jun 2014 Mar 2014 Dec 2013 Tier I Capital (Core) 869.4 800.5 723.2 669.9 764.2 748.3 Tier 2 Capital (Supplementary) 458.7 217.1 198.7 197.9 190.1 189.8 Total Capital 1,328.1 1,017.6 921.9 867.8 954.3 938.1 Risk weighted assets 8,350.5 7,204.1 6,470.6 6,202.9 5,901.9 5,733.7 Tier 1 Capital ratio 10.4% 11.1% 11.2% 10.8% 12.9% 13.1% Total Capital ratio 15.9% 14.1% 14.2% 14.0% 16.2% 16.4% page 30

NBG Tier I CAR min requirement NBG Total CAR min requirement reported to NBG are reported in the appendix

JSC Bank of Georgia consolidated JSC Bank of Georgia standalone JSC Bank of Georgia consolidated (BIS I), standalone (BIS 2/3) JSC Bank of Georgia standalone 10.5% 8.5%

5,373 5,628 6,253 7,172 7,253 6,203 6,471 7,204 8,359 8,351 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 BIS NBG Basel 2/3

SLIDE 31

www.bogh.co.uk August 2015

Retail Banking (RB)| No. 1 retail bank in Georgia

Volumes are in GEL millions 30-Jun-15 % of clients 2014 2013 2012 Number of total Retail clients, of which: 1,933,360 1,451,777 1,245,048 1,054,248 Number of Solo clients (“Premieum Banking”) 9,244 0.5% 7,971 6,810 5,413 Consumer loans & other outstanding, volume 788.4 691.8 560.2 480.0 Consumer loans & other outstanding, number 645,499 33.4% 526,683 455,557 406,213 Mortgage loans outstanding, volume 732.0 600.9 441.4 388.7 Mortgage loans outstanding, number 12,295 0.6% 11,902 10,212 9,850 Micro & SME loans outstanding, volume 827.2 666.0 497.0 364.4 Micro & SME loans outstanding, number 17,854 0.9% 16,246 13,317 11,136 Credit cards and overdrafts outstanding, volume 338.5 135.0 142.4 146.4 Credit cards and overdrafts outstanding, number 458,806 23.7% 199,543 174,570 142,072 Credit cards outstanding, number, of which: 756,801 39.1% 116,615 117,913 107,261 American Express cards 109,132 5.6% 110,362 108,608 99,292

Client data Portfolio breakdowns

GEL millions

RB loans

page 32

RB deposits

1,470 267 817 1,087 1,350 1,737 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2012 2013 2014 1Q15 Privatbank Retail Banking deposits

Includes c. 400k Privatbank clients

RB standalone RB standalone RB standalone RB standalone Loans by products Total: GEL 2.6 bn Deposits by category Total: GEL 1.7 bn

Includes Privatbank GEL 245.6 mln loans, predominantly consumer loans and credit card loans Loans growth:

35.6% growth ex-

Privatbank

19.8% growth on

constant currency basis, ex-Privatbank Deposits growth:

28.3% growth ex-

Privatbank

9.0% growth on

constant currency basis, ex-Privatbank

Mortgage loans 27.7% Micro- and agro-financing loans and SME loans 31.4% General consumer loans 21.9% Credit cards and overdrafts 11.9% Pawn loans 2.3% Automobile loans 0.9% POS loans 3.8%

Includes Privatbank GEL 266.8 mln deposits

Time deposits 61.5% Current accounts and demand deposits 38.5% Client deposits, FC 71.7% Client deposits, GEL 28.3%

Deposits by currency Total: GEL 1.7 bn

SLIDE 33

www.bogh.co.uk August 2015

Retail Banking (RB) | Strong loan book growth

Deposit Costs | Retail Banking

Loan Yields | Retail Banking PL | Retail Banking

page 33 RB Consolidated RB standalone RB standalone INCOME STATEMENT HIGHLIGHTS

2Q15 2Q14 Change y-o-y 1Q15 Change q-o-q 1H15 1H14 Change y-o-y GEL thousands, unless otherwise noted Net banking interest income 79,269 51,742 53.2% 75,150 5.5% 154,420 100,945 53.0% Net fee and commission income 18,406 14,021 31.3% 18,566

0.9%

36,972 26,011 42.1% Net banking foreign currency gain 4,305 4,207 2.3% 3,905 10.2% 8,210 8,240

0.4%

Net other banking income 1,384 1,371 0.9% 963 43.7% 2,347 1,826 28.5% Revenue 103,364 71,341 44.9% 98,584 4.8% 201,949 137,022 47.4% Salaries and other employee benefits (22,416) (17,045) 31.5% (23,596)

5.0%

(46,012) (33,493) 37.4% Administrative expenses (11,632) (8,754) 32.9% (12,240)

5.0%

(23,872) (17,102) 39.6% Banking depreciation and amortisation (6,818) (4,847) 40.7% (6,831)

0.2%

(13,649) (9,424) 44.8% Other operating expenses (496) (411) 20.7% (462) 7.4% (959) (739) 29.8% Operating expenses (41,362) (31,057) 33.2% (43,129)

4.1%

(84,492) (60,758) 39.1% Operating income before cost of credit risk 62,002 40,284 53.9% 55,455 11.8% 117,457 76,264 54.0% Cost of credit risk (20,662) (2,296) NMF (16,660) 24.0% (37,322) (372) NMF Net non-recurring items (2,875) (4,375)

34.3%

(449) NMF (3,323) (4,767)

30.3%

Profit before income tax 38,465 33,613 14.4% 38,346 0.3% 76,812 71,125 8.0% Income tax expense (5,900) (630) NMF (5,738) 2.8% (11,639) (6,258) 86.0% Profit 32,565 32,983

1.3%

32,608

0.1%

65,173 64,867 0.5%

50.1% 58.9% 49.5% 49.0% 49.9% 41.1% 50.5% 51.0% 21.4% 19.8% 17.4% 17.3% 0% 5% 10% 15% 20% 25% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 1H 2015 Net loans, RB, GEL Net loans, RB, FC Currency-blended loan yield, RB 30.6% 36.4% 32.4% 28.3% 69.4% 63.6% 67.6% 71.7% 6.1% 5.2% 3.8% 4.2% 0% 1% 2% 3% 4% 5% 6% 7% 0% 20% 40% 60% 80% 100% 120% 2012 2013 2014 1H 2015 Client deposits, RB, FC Client deposits, RB, GEL Currency-blended cost of client deposits, RB

SLIDE 34

www.bogh.co.uk August 2015

RB Loan Yield | quarterly RB Cost of Deposits | quarterly

RB NIM | quarterly

page 34

Retail Banking | Strong loan book growth

RB standalone RB standalone RB standalone

17.7% 21.8% 12.6% 17.3% 23.0% 11.4% 17.3% 23.6% 11.2% 0% 5% 10% 15% 20% 25% Loan yield Loan yield, GEL Loan yield, FC 3.9% 4.4% 3.7% 4.4% 5.5% 3.8% 3.9% 4.6% 3.6% 0% 1% 2% 3% 4% 5% 6% Cost of deposits Cost of deposits, GEL Cost of Deposits, FC

2Q14 1Q15 2Q15 2Q14 1Q15 2Q15 2Q14 1Q15 2Q15 2Q14 1Q15 2Q15 2Q14 1Q15 2Q15 2Q14 1Q15 2Q15

9.7% 9.5% 9.8% 8.7% 8.2% 7% 8% 9% 10% 2Q14 1Q15 2Q15 NIM incl Privatbank NIM excl Privatbank

SLIDE 35

www.bogh.co.uk August 2015

Acquisition of Privatbank Georgia | a value creative transaction

page 35

Privatbank Financials

(GEL’m)

GEL92mln consideration for Privatbank constituted 4% of BoGH’s market value at the time
f acquisition
Acquisition of a significant distribution network and retail customer base
Accelerated BoG’s retail banking growth, particularly in high margin card business
Low assets per employee implies significant potential to increase utilization of the franchise
Completed the full integration of Privatbank, in under five months compared to our initial

integration estimate of 9-12 months

We anticipate annualised pre-tax administrative and funding cost synergies to reach c.GEL

29mln – above our pre-announced GEL 25mln – as a result of GEL 18.5mln synergy in

perating expenses compared to pre-announced GEL 15mln and GEL 10.5mln synergy in

cost of funds, slightly above the pre-announced GEL 10mln

Privatbank acquisition Privatbank 1H15 Highlights

Privatbank Income Statement Summary Q1 2015 Q2 2015 1H15 Net banking interest income 14,924 16,840 31,764 Net fee and commission income 3,072 2,683 5,755 Net banking foreign currency gain (loss) 900 627 1,527 Net other banking income 499 (668)

169

Revenue 19,395 19,482 38,877 Operating expenses 9,888 5,474 15,362 Operating income before cost of credit risk 9,507 14,008 23,515 Cost of credit risk 8,165 5,556 13,721 Net operating income before non-recurring items 1,341 8,452 9,793 Net non-recurring items

2,621

2,621 Profit before income tax 1,341 5,831 7,172 Income tax (expense) benefit 201 875 1,076 Profit 1,140 4,956 6,096 Privatbank Balance Sheet Summary Q1 2015 Q2 2015 Liquid assets 204,462 147,392 Loans to customers and finance lease receivables 289,965 245,604 Other assets 22,249 23,181 Total assets 516,676 416,177 Client deposits and notes 371,454 266,779 Amounts due to credit institutions 48,809 49,438 Other liabilities 3,921 4,905 Total liabilities 424,185 321,121 Total equity 92,491 95,056 Total liabilities and equity 516,676 416,178 Privatbank Selected Ratios Q1 2015 Q2 2015 1H15 Loan Yield 29.0% 29.6% 29.3% Cost of funds 7.5% 5.3% 6.5% Cost of client deposits and notes 7.4% 5.8% 6.7% NIM 17.8% 22.9% 20.5% Cost of risk 10.0% 8.6% 9.3% Cost / Income 51.0% 28.1% 39.5% Operating leverage, Q-O-Q

45.1%
*Pro-forma assuming that synergies took effect in the beginning of the quarter instead of actual last 50 days

in second quarter

GEL 245.6mln of high yielding loan book and GEL 266.8mln client deposits, comprising

4.8% and 6.3% of our loan book and client deposits, respectively

Privatbank contributed GEL 38.9mln or 10.8% to the Banking Business revenue
GEL 31.8mln net interest income, which was driven by Privatbank’s Loan Yield of 29.3% on

the back of 6.5% Cost of Funding

Net fee & commission income was GEL5.8mln, and mostly comprised of fees related to

credit card transactions

As a result NIM stood at 20.5%
GEL 15.4mln to operating expenses. Privatbank brought in inefficiencies in 1Q15, which

temporarily worsened efficiency ratios in 1Q15. However, successful integration and extensive cost-cutting measures reversed this trend in 2Q15, which resulted in Privatbank’s Cost/Income ratio of 28.1% in 2Q15

Privatbank’s cost of credit risk was GEL 15.2mln in 1H15
Privatbank posted GEL 6.1mln profit or 5.1% of total Banking Business profit
Privatbank added circa 400,000 clients, 700,000 cards, 36 branches, 371ATMs and more than

1,000 POS terminals

SLIDE 36

www.bogh.co.uk August 2015

Corporate Banking (CB)

PL | Corporate Banking

Deposit Costs | Corporate Banking, standalone

Loan Yields | Corporate Banking, standalone

page 36 CB Consolidated CB standalone CB standalone

GEL thousands, unless otherwise noted 2Q15 2Q14 Change y-o-y 1Q15 Change y-o-y 1H15 1H14 Change y-o-y INCOME STATEMENT HIGHLIGHTS Net banking interest income 33,949 22,866 48.5% 35,418

4.1%

69,368 47,487 46.1% Net fee and commission income 8,316 6,292 32.2% 6,001 38.6% 14,317 12,014 19.2% Net banking foreign currency gain 9,769 4,976 96.3% 7,835 24.7% 17,604 11,011 59.9% Net other banking income 1,819 1,208 50.6% 1,070 70.0% 2,888 1,693 70.6% Revenue 53,853 35,342 52.4% 50,324 7.0% 104,177 72,205 44.3% Salaries and other employee benefits (8,853) (7,993) 10.8% (8,488) 4.3% (17,341) (15,696) 10.5% Administrative expenses (3,773) (3,390) 11.3% (2,507) 50.5% (6,280) (5,761) 9.0% Banking depreciation and amortisation (957) (964)

0.7%

(990)

3.3%

(1,947) (1,889) 3.1% Other operating expenses (188) (235)

20.0%

(212)

11.3%

(400) (572)

30.1%

Operating expenses (13,771) (12,582) 9.5% (12,197) 12.9% (25,968) (23,918) 8.6% Operating income before cost of credit risk 40,082 22,760 76.1% 38,127 5.1% 78,209 48,287 62.0% Cost of credit risk (14,146) (10,195) 38.8% (19,381)

27.0%

(33,527) (23,874) 40.4% Net non-recurring items (199) (2,229)

91.1%

(598)

66.7%

(797) (2,453)

67.5%

Profit before income tax 25,737 10,336 149.0% 18,148 41.8% 43,885 21,960 99.8% Income tax expense (4,119) (436) NMF (3,346) 23.1% (7,465) (2,353) NMF Profit 21,618 9,900 118.4% 14,802 46.0% 36,420 19,607 85.7%

16.4% 16.8% 13.2% 11.7% 83.6% 83.2% 86.8% 88.3% 13.9% 12.4% 10.6% 10.8% 0% 2% 4% 6% 8% 10% 12% 14% 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2012 2013 2014 1H 2015 Net loans, CB, GEL Net loans, CB, FC Currency-blended loan yield, CB 49.7% 49.1% 48.6% 51.0% 50.3% 50.9% 51.4% 49.0% 7.2% 4.6% 2.9% 2.9% 0% 1% 2% 3% 4% 5% 6% 7% 8% 0% 20% 40% 60% 80% 100% 2012 2013 2014 1H 2015 Client deposits, CB, FC Client deposits, CB, GEL Currency-blended cost of client deposits, CB

SLIDE 37

www.bogh.co.uk August 2015

Manufacturing 25.5% Trade 17.2% Real estate 17.7% Hospitality 5.2% Transport & Communication 5.6% Electricity, gas and water supply 3.7% Construction 4.6% Financial intermediation 2.7% Mining and quarrying 4.7% Health and social work 4.3% Other 8.9%

Corporate Banking (CB)

Highlights Portfolio breakdowns, 30 June 15

No.1 corporate bank in Georgia
Integrated client coverage in key sectors
c.5,000 clients served by dedicated relationship bankers

GEL millions

Loans & Deposits

page 37

Top 10 CB borrowers represent 14% of total loan book Top 20 CB borrowers represent 20% of total loan book

Loans by sectors Deposits by category

CB standalone CB standalone

GEL, 51.0% FC, 49.0% Current Accounts & Demand Deposits, 62.0% Time Deposits, 38.0% 1,696 1,819 2,161 2,174 1,149 1,221 1,186 1,372 500 1,000 1,500 2,000 2,500 2012 2013 2014 1H 2015 Corporate net loans Corporate client deposits

SLIDE 38

www.bogh.co.uk August 2015

CB Loan Yield | quarterly CB Cost of Deposits | quarterly

CB NIM | quarterly

Corporate Banking (CB)

page 38 CB standalone CB standalone CB standalone

10.8% 10.6% 10.8% 10.7% 10.9% 10.6% 10.7% 12.9% 10.4% 0% 2% 4% 6% 8% 10% 12% 14% Loan yield Loan yield, GEL Loan yield, FC 2.8% 3.3% 2.4% 2.8% 3.9% 1.8% 3.0% 4.4% 1.7% 0% 1% 2% 3% 4% 5% Cost of deposits Cost of deposits, GEL Cost of Deposits, FC 4.4% 4.9% 4.5%

1%

1% 3% 5% 7% 2Q14 1Q15 2Q15

2Q14 1Q15 2Q15 2Q14 1Q15 2Q15 2Q14 1Q15 2Q15 2Q14 1Q15 2Q15 2Q14 1Q15 2Q15 2Q14 1Q15 2Q15

SLIDE 39

www.bogh.co.uk August 2015

Investment Management | results overview

Highlights Client deposits | June 2015

Galt & Taggart - Investment Bank

Strong presence internationally through representative offices in Israel

(since 2008), the UK (2010), Hungary (2012) and Turkey (2013).

Preparing to launch funds: Mezzanine, Renewable Energy and

Caucasus Money Market

Successfully placed CDs worth US$8 million, EUR 8 million and GBP

5 million Euroclearable CDs. CDs issued to IM clients stood at GEL472.6 million.

Galt & Taggart hosted first investor conference dedicated to the

equity and bond market development in the region. The conference brought together 60 institutional investors and analysts and 200 one-on-

ne meetings were held with Georgian and Azeri companies

GEL millions

Sector coverage

Energy
Tourism
Agriculture
Wine
Commercial Real Estate

Fixed Income Coverage

GOGC
Georgian Railway

AUM* of GEL 1,231.4 million as of 30 June 2015 up 31.8% y-o-y

* Wealth Management client deposits, Galt &Taggart client assets, Aldagi Pension Fund and Wealth Management client assets at Bank of Georgia Custody

page 39

Galt &Taggart - Research

Macro coverage

Georgia
Azerbaijan
Executed its first sizeable M&A deal in 2014 and received a success fee. IM segment’s fee and

commission income totalled GEL 8.8 million (GEL 1.2 million in 2013)

Acted as lead arranger in 1H15 for bond offerings for
US$15 mln bonds issued by Evex
GEL 25 mln floating notes issued by EBRD
GEL 30 mln bonds issued by IFC
US$20 mln bonds issued by m2

Georgia, 46% Israel, 12% Germany, 5% Bahamas, 5% UK, 4% US, 3% Others, 24% 605.2 679.4 805.3 904.8 200 400 600 800 1,000 2012 2013 2014 1H 2015 Client Deposits, WM

SLIDE 40

www.bogh.co.uk August 2015

page 40

Maintain dominant market share in hospitals by capacity and revenue Redistribution of funds expected from pharmaceuticals to ambulatory services GHG Replicating hospital consolidation experience in outpatient segment, with a first mover advantage

Sources: GHG internal reporting; Frost & Sullivan analysis, 2015; NHA, Ministry of Labor, Health and Social Affairs

f Georgia; NCDC; OECD, World Health Organisation and World Bank, 2013 data

Hospitals Ambulatories Pharmaceuticals

* pro-forma 1H15 result, based on Frost & Sullivan forecast for 2015 and includes HTMC (1H results and 450 beds)

Georgia healthcare market & GHG market share evolvement

In 1H15* Long-term target

GHG Market shares Growth drivers

Low utilisation (50-60%)
Low equipment penetration
Fragmented market
System inefficiency (low nurse-to-doctor ratio)
GHG: accelerated revenue market share growth
n the back of well-invested asset base
Low outpatient encounters
Fragmented market
New prescription policy
GHG: replicating hospital cluster model and

consolidation experience in ambulatory sector

new prescription policy introduced in 2014
ambulatory market consolidation
Weakening of existing pharma-duopoly

spending on pharma Georgia‘s 38% vs 16-17% in Europe; decreasing trend in comparable countries

GHG strategy

33. %

In 1H15* Long-term target

[V AL U… 0.5 % 17. % 33. %

Revenue Capacity

GEL 1.2bln(1) GEL 0.9bln(1) GEL 1.3bln(1)

Market

674 643 714 811 858 941 1,075 1,203 1,341 1,489 1,647

500

1,000 1,500 2,000 2008 2009 2010 2011 2012 2013 2014 2015E 2016F 2017F 2018F

Hospitals, GEL mln CAGR'03-14: 13.7% '14-18: 11%

241 272 376 473 592 695 802 930 1,079 1,250 1,448

500

1,000 1,500 2,000 2008 2009 2010 2011 2012 2013 2014 2015E 2016F 2017F 2018F

Ambulatories, GEL mln CAGR'03-14: 17.9% '14-18: 16%

Year 2014 medium term target 38 % 25 %

% %

19.1 18.0 20.7 24.3 26.2 26.8 29.2 30.7 33.2 36.2 39.6 43.2 47.2

4.8% 5.1% 5.3% 5.3% 5.5% 6.1% 6.4% 7.0% 7.3% 7.6% 7.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0

2008 2009 2010 2011 2012 2013 2014 2015E 2016F 2017F 2018F 2019F 2020F

GDP nominal, GEL bln CAGR'03-14: 11.8% '15-20: 9%

(1) 2015E market value

26. 6 %

Share in total Healthcare spending Bed market share

SLIDE 41

www.bogh.co.uk August 2015

GHG | Long-term, High-growth Story

page 41

Price inflation (heart surgery, US$)

2015-2018 Medium-term Target (5-10 Year Horizon) Long-term Target (Beyond 10 Year Horizon) 40,000 (GHG)

2.7 (Georgia)

GHG Revenue per bed (US$) Outpatient Encounters per capita

217 (Georgia)

Spending per capita (US$)

EM 2014 or most recent year (2) 1,076 280k 8.9 Georgia medium-term(1) Georgia 2014 or most recent year(1)

6,500 (GHG)

25,000

$

502 99k 5.4 9,000

$

25% 3.4:1 15.4%

Pharmaceuticals’ share in total healthcare spending

38% (Georgia) 1:1.6 (Georgia)

Nurse to doctor ratio

Sources: (1) Bed utilisation for referral hospitals; World Bank; GHG internal reporting; Management Estimates; Ministry of Finance of Georgia; Frost & Sullivan 2015 (2) WHO: Average of countries: Chile, Costa Rica, Czech Republic, Estonia, Croatia, Hungary, Lithuania, Latvia, Poland, Russian Federation, Slovak Republic; BAML Global Hospital Benchmark, August 2014

Significant expansion

f capacity by 2025

Substantial room to grow beyond 2025

4:1 (Georgia,

WHO recommendation)

$

SLIDE 42

www.bogh.co.uk August 2015

GHG | Maintain dominant market share in hospitals by capacity and revenue

page 42 6,012 216 225 483 449 450 2,220 Other PSP Aversi Gudushauri-Chachava Vienna Insurance Group HTMC Evex

Market share

Hospital Competition

Key Georgian Hospitals(1)

1 #1 22% 4% 5% 2% 2%

National bed capacity (# of Beds, # of Hospitals) (1)

60% X

Number of hospitals

X

Average number of beds at hospital

35 | 75 15 | 30 3 | 161 5 | 45 2 | 108 160 | 37 1 | 450 5% Acquired HTMC in August 2015

Sources: (1) Market share by number of beds. Source: NCDC, data as of December 2014, updated by company to include changes before 30 June 2015 (2) GHG internal reporting

Key takeaways:(1)

GHG is more than four times larger than next largest competitor
Highly fragmented with top 5 players having 40% market share and average number of beds per hospital at 45
84% of national bed capacity is privately owned
64% of beds are renovated in Georgia, compared to 86% of GHG’s beds that are renovated

64 % 36 %

Renovated beds Soviet-era beds 86% of GHG beds are renovated(2)

Soviet-era legacy Renovated

National bed capacity, % breakdown(1)

Revenue market share growth drivers:

c.30% market share by capacity to be achieved after renovation of Deka and Sunstone

(additional c.500 beds) increasing presence in Tbilisi hospital market (from 24.0% to 30.2% by beds) that has1.9x higher hospitalization rate vs Georgian average.

Continuing to optimise service mix at recently acquired, less efficient hospitals (Avante,

Traumatology, Sunstone, Deka, HTMC) by adding higher revenue generating services

SLIDE 43

www.bogh.co.uk August 2015

GHG | Replicating hospital consolidation experience in outpatient segment

page 43

Ambulatory Competition

Sources: GHG internal reporting; Frost & Sullivan analysis, 2015, company photos

Key takeaways:

GHG has less than 1% market share in ambulatories, targeting 17% (long-term)
The rest of the market similarly fragmented, with no single player having more than 1% market share and

comparable access to capital and management

Potential to grow ambulatory revenue from Imedi L – out of GEL c.16mln Imedi L spending on ambulatories

(2015E), only 34% is spent at GHG ambulatory clinics due to limited footprint in ambulatory segment

Clinic facade Clinic facade Reception / registration Reception / registration Doctor’s office Doctor’s office Competition GHG ambulatory clinics

SLIDE 44

www.bogh.co.uk August 2015

GHG | segment overview

Note: EBITDA margins are based on gross of intercompany eliminations revenue numbers 23% 83% 5% 67% 2% 8%

Key Services Selected Operating Data (1H 2015) Financials (1H 2015)

Imedi L

Range of private insurance products purchased by individuals and employers 250,000 insured

Medical Insurance

Evex

Basic outpatient and inpatient services in regional towns and municipalities 19 hospitals 461 beds

Community Hospitals

General and specialty hospitals

ffering outpatient and inpatient

services in Tbilisi and major regional cities 16 hospitals* 2,209 beds(1)

Referral and Specialty Hospitals

Key Segments

Ambulatory Clinics

Outpatient diagnostic and treatment services in Tbilisi and major regional cities 6 clinics 220,000+ outpatients treated

Revenue EBITDA

3% 9%

EBITDA Margin(2): 25.3% EBITDA Margin(2): 24.5% EBITDA Margin(2): 31.0% EBITDA Margin(2): 4.7%

Market Size

GEL 0.14bln (2015E)

GEL 1.2bln (2015E)

GEL 0.9bln (2015E)

Market Share

38.1% 14.0% by revenues 22.1% by beds (2,220), which grew to 26.6% following HTMC acquisition in August 2015 (450 beds) and is expected to grow to c.30.0% as a result of renovation of recently acquired hospital facilities (additional c.500 beds); 0.5%

17%

GEL 75.4mln 2012-1H15 CAGR 14% 2012-1H15 CAGR 9% GEL 8.7mln GEL 2.5mln 2012-1H15 CAGR 15% GEL 26.4mln GEL 19.4mln 2012-1H15 CAGR 24% 2012-1H15 CAGR 35% GEL 2.2mln GEL 0.8mln 2012-1H15 CAGR -20% GEL 1.2mln 2012-1H15 CAGR 73% 2012-1H15 CAGR 75%

Source: GHG internal reporting (1) Includes HTMC (2) EBITDA margins are calculated based on revenue gross of correction and rebates 83%

SLIDE 45

www.bogh.co.uk August 2015

Core business activities: the company develops, sells and manages

residential apartments

Outstanding Track Record

2 Completed Projects

 Total sales US$56.7mln  Number of apartments: 645  Total Project Cost: US$48.6mln  Total net income: US$7mln  Land value materialized: US$6.3mln

4 On-going Projects

 Total sales US$58.9mln, yet to be recognised as revenue  Number of apartments: 1,024  Total Project Cost: US$65.2mln  Total expected net income: US$14mln  Land value to be materialized: US$10mln

Fast Growing Company Value Creation

 2010-2012 - BoG made a cash investment of GEL 5.0m (US$3m) with an idea to develop problem land plots seized after 2008 into an opportunity  2012-2014 – After successful completion of two projects and four ongoing projects, M2 has become a leading real estate company with significant potential for growth  The Group generates an IRR of more than 40%. Leveraging on M2’s successful track record

f completed projects

Project Initiation Testing the market and potential for value creation Value Creation

Note: m2 Affordable Housing Business figures only

Revenue Dynamics

(GEL’ thousand)

EBITDA Dynamics

(GEL’ thousand)

4,574 10,478 13,752 2012 2013 2014 2,314 7,600 8,616 51% 73% 63% 2012 2013 2014 EBITDA EBITDA Margin

page 45

m2 Real Estate | Leading real estate development company (1/2)

Source: Company information. Conversion form US$ to GEL was done using current exchange rate as at 31 December 2014.

SLIDE 46

www.bogh.co.uk August 2015

10 20 30 40 50 1 2 3 4 5 6 Project Sales (US$m) Projects

Total sales of US$115.8mln since 2011

m2 Real Estate | Leading real estate development company (2/2)

Chubinashvili Street

 IRR: 47%  Start: Sep-10;  Completion: Aug-12  Apartments sold: 123/123 (100%)  Sales: US$9.9 mln Completed Projects

Significant potential of the project from sales of US$29,000 price apartments with current IRR of c. 31%

page 46

Tamarashvili Street

 IRR: 46%  Start: May-12  Completion: Jun-14  Apartments sold: 518/ 522 (97%)  Sales: US$46.8 mln

Kazbegi Street

 IRR: 165%  Start: Dec-13  Completion: Oct-15  Apartments sold: 259/295 (88%)  Sales: US$23.5mln

Nutsubidze Street

 IRR: 58%  Start: Dec-13  Completion: Aug-15  Apartments sold: 186/221 (84%)  Sales: US$13.7 mln

Tamarashvili Street II

 IRR: 71%  Start: Jul-14  Completion: Apr-16  Apartments sold: 168/270 (62%)  Sales: US$14.5 mln

Moscow Avenue

 IRR: 31%  Start: Sep-14  Completion: Mar-16  Apartments sold: 123/238 (52%)  Sales: US$4.6 mln

Of which, US$58.9mln yet to be recognised as revenue*

*As per the revenue recognition policy adopted by the company in line with IFRS, revenue is recognised at the full completion of the project instead of in line with percentage construction completion

SLIDE 47

www.bogh.co.uk August 2015

Acquisition of a minority interest in GGU | an Attractive Investment Opportunity

Company Overview

Georgian Global Utilities Ltd. (“GGU”) is a privately owned company that

supplies water and provides wastewater services to 1.4 million people (approximately 1/3 of Georgia’s total population) in Tbilisi, Mtskheta and Rustavi and operates hydropower electricity generation facilities

Sales to corporates represented c.70% of water revenue
GGU owns and operates 3 hydropower generation facilities with a total capacity of

143MW

Most of the milestones committed to the authorities during the privatization have

already been achieved with one project remaining before 2018

No additional equity financing is required for planned Capex program

Revenue Dynamics(4)

(GEL’m)

EBITDA Dynamics(4)

(GEL’m)

Transaction Rationale Selected Financials

Exit strategy through potential IPO is feasible Strong potential for value generation for shareholders in short term Strong management and streamlined operations but room for potential further improvement exists Potential to improve utilisation Cash generating business, no additional financing required for planned capex A profitable company with significant capacity for growth A natural monopoly Attractive Investment Opportunity

Source: Company information. Conversion form US$ to GEL was done using current exchange rate as at 27 November, 2014 for the consideration amounts. (1) Net of accrued interest and dividends for the second tranche. (2) Market Capitalisation as of 1 December 2014. (3) Universe of comparable companies includes Pennon Group, Acea, Artesian Resources, American State Water Company, Athens Water and Thessaloniki Water Supply. (4) Group companies’ unconsolidated IFRS financial statements.

Transaction Overview

Transaction to be structured in several steps

– Acquisition of 25% shareholding for GEL48.7m (US$26m) – Option to acquire an additional 24.9% within 10 months for GEL48.7m (US$26m), plus 20% per annum accrued on the call option consideration over the period from closing date to exercise date less any dividends distributed through the call option period – Total consideration of c.GEL97m (US$52m)(1) represents c. 1.3% of BoGH’s assets and 4.5% of its market capitalisation(2)

Attractive valuation with GGU valued at EV / EBITDA 2014E deal multiple of

4.7x, while industry peers are trading at 8.5x average EV / EBITDA 2014E multiple(3)

BoGH provided a US$25mn loan to GGU with proceeds to be paid as dividend to

the selling shareholders

The transaction is earnings accretive
Commercial terms have been agreed, transaction will be subject to certain

conditions

page 47

98.7 106.1 108.7 116.0 125.3 2010 2011 2012 2013 2014 56.1 55.7 48.2 55.9 51.6 56.8% 52.5% 44.3% 48.2% 41.2% 0% 20% 40% 60% 80% 100% 2010 2011 2012 2013 2014

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Georgia at a glance

General Facts

Area: 69,700 sq km
Population (2012): 4.5 mln
Life expectancy: 77 years
Official language: Georgian
Literacy: 100%
Capital: Tbilisi
Currency (code): Lari (GEL)

Economy

Nominal GDP (Geostat) 2014: GEL 29.2 bn (US$16.5 bn)
Real GDP growth rate 2011: 7.2%, 2012: 6.2%, 2013: 3.3% 2014P:4.7%, 1H15: 2.6%
Real GDP average 10 yr growth rate: 5.8%
GDP per capita 2014E (PPP) per IMF: US$7,653
Inflation rate (e-o-p) 2014: 2.0%
External public debt to GDP 2014: 26.8%
Sovereign ratings:

S&P BB-/B/Stable, affirmed in November 2014 Moody’s Ba3/NP/Positive, affirmed August 2014 Fitch BB-/B/Stable, affirmed in April 2015

page 49

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Georgia’s key economic drivers

Cheap electricity

 Georgia is a net electricity exporter, while it imports natural gas mainly from Azerbaijan  Only 20% of hydropower capacity utilized; 88 hydropower plants are in various stages of construction or development  Significantly boosted transmission capacity in recent years, having rehabilitated a 500kV line to Azerbaijan and built a 500/400 kV line to Turkey. Another

500 kV line to Armenia is under construction and Georgia’s transmission capacity to Russia is expected to rise 1.7x to 1,480 MW by 2016 after a new 500 kV line becomes operational

Liberal economic policy

 Outstanding progress in governance and business reforms, eliminating corruption, strengthening public finances, and streamlining tax and

customs procedures. These economic and structural improvements have been institutionalized.

 Liberty Act (effective January 2014) ensures a credible fiscal and monetary framework: ― Public expenditure/GDP capped at 30%; Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%  Productivity gains accounted for 66% of the average 5.6% growth over 1999-2012, according to the World Bank  Business friendly environment and low tax regime

Political environment stabilised

 Maintaining healthy economic growth is a priority (GDP growth: 6.3% 2003-14, 8.9% CAGR 2014-25F by IMF, 5.0% real annual long-term, IMF)  Georgia underscored its commitment to European values by securing a democratic transfer of political power in successive parliamentary, presidential, and

local elections and by signing an Association Agreement and free trade agreement with the EU

 New constitution amendments passed in 2013 to enhance governing responsibility of Parliament and reduce the powers of the Presidency  Continued economic relationship with Russia, although economic dependence is relatively low ― Russia began issuing visas to Georgians in March 2009; Georgia abolished visa requirements for Russians ― Direct flights between the two countries resumed in January 2010 ― Member of WTO since 2000, allowed Russia’s access to WTO; In 2013 trade restored with Russia ― In 7M15, Russia and Ukraine together accounted for 9.2% of Georgia’s exports and 13.2% of imports; just 4.1% of cumulative FDI over 2004-2014

Strong FDI

 An influx of foreign investors on the back of the economic reforms have boosted productivity and accelerated growth.  FDI diversified across sectors (2014: US$1,758mln 2013: US$942mln, 2012: US$912mln, 2011: US$1,117mln); FDI averaged 10% of GDP in 2005-2014  FDI up 4.8% y-o-y in 1H15 to US$530.0mln  Net remittances of US$1,262.6mln in 2014, 19.5% CAGR’04-14, US$454.2mln in 1H15

Regional logistics and tourism hub

 A natural transport and logistics hub, connecting land-locked energy rich countries in the east and European markets in the west, with a

total population of 900mn.

 Proceeds from foreign tourism at US$1,787mln in 2014, up 3.9% y-o-y; 5.5mln visitors in 2014, up 2% y-o-y; 3.9mln visitors in 8M15, up 5.9% y-o-y  Regional energy transit corridor; c.20% of state budget is spent on infrastructure development

Support from international community

 Georgia and the EU signed an Association Agreement in June 2014. The deal includes a DCFTA, which is the major vehicle for Georgia’s economic integration with the EU, a common customs zone of c.500mn customers and a US$ 18.5tn economy, spurring exports and enhancing the diversification and competitiveness of Georgian products.  Discussions commenced with the USA to drive inward investments and exports  Strong political support from NATO, EU, US, UN and member of WTO since 2000; Substantial support from DFIs, the US and EU  Diversified trade structure across countries and products page 50

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Growth oriented reforms

37% 32% 26% 26% 22% 21% 19% 18% 15% 8% 7% 7% 6% 5% 4% 3% 1% Ukraine Kazakhstan Lithuania Serbia Greece Turkey Latvia Armenia Czech Republic Bulgaria Romania US Estonia UK GEORGIA Norway Denmark

96 91 80 77 62 57 55 48 45 38 36 17 15 8 7 6

Ukraine Serbia Azerbaijan Kazakhstan Russia Belarus Turkey Romania Armenia Bulgaria Montenegro Estonia GEORGIA UK USA Norway

Ease of Doing Business | 2015 (WB-IFC Doing Business Report) Economic Freedom Index | 2015 (Heritage Foundation) Global Corruption Barometer | TI 2013

Sources: Transparency International, Heritage Foundation, World Bank

page 51 162 143 85 80 70 73 55 57 37 54 22 13 8 12 Ukraine Russia Azerbaijan Italy Turkey France Bulgaria Romania Latvia Hungary GEORGIA UK Estonia USA

% admitting having paid a bribe last year

Business Bribery Risk, 2014 | Trace International

9 10 11 12 13 19 22 31 52 67 70 73 83 87 134 140 Germany USA Georgia Norway Netherlands UK Estonia Poland Czech Rep. Serbia Turkey Montenegro Romania Armenia Russia Azerbaijan

#1 – world leader in property registration

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919 1,188 1,484 1,764 2,315 2,921 2,455 2,623 3,231 3,523 3,600 3,681 3,411 3,734 4,218 4,669 5,405 5,671 5,496 5,841 6,343 6,826 7,180 7,653 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014P Nominal GDP per capita (USD) GDP per capita (PPP)

Diversified resilient economy

Source: Geostat Sources: IMF Sources: IMF, Geostat

Gross domestic product GDP composition, FY 2014 GDP per capita

Comparative real GDP growth rates, % (2004-2014)

page 52

4.0 5.1 6.4 7.8 10.2 12.8 10.8 11.6 14.4 15.8 16.1 16.5 11.1% 5.9% 9.6% 9.4% 12.6% 2.6%

3.7%

6.2% 7.2% 6.4% 3.3% 4.8%

4%
2%

0% 2% 4% 6% 8% 10% 12% 14%

5

5 10 15 20 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E Nominal GDP (US$bn) Real GDP growth, y/y (%) Source: Geostat, Galt & Taggart Research (nominal GDP estimate)

1H15 GDP growth of 2.6%

2.2% 3.0% 3.5% 3.8% 3.8% 4.0% 4.2% 4.4% 5.1% 5.1% 5.8% 0% 1% 2% 3% 4% 5% 6% 7% Trade 17.4% Manufacturing 17.1% Transport &

commun. 10.5%

Public administr. 9.9% Agriculture 9.2% Construction 7.3% Real Estate 6.0% Healthcare 5.7% Financial interm. 3.3% Hotels & restaurants 2.3% Other 11.2%

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Productivity gains have been the main engine of growth since 2004

page 53

Source: Georgia Rising (2013), WB

Overall contributions of capital, labour, and Total Factor Productivity (TFP) to growth, 1999-2012

Contributions of capital, labour, and TFP to growth during periods

Real GDP growth projection, 2015

Source: Georgia Rising (2013), WB

Capital stock 1.60% Labor force 0.32% TFP growth 3.65%

1.48% 2.25% 0.67% 1.56% 3.65% 6.32%

2.02%

3.86%

4%
2%

0% 2% 4% 6% 8% 10% 1999-2003 2004-2007 2008-2009 2010-2012 Capital stock Labor force TFP growth

5%
4%
3%
2%
1%

0% 1% 2% 3% 4%

5%
4%
3%
2%
1%

0% 1% 2% 3% 4% Russia Belarus Moldova Armenia Azerbaijan Georgia Turkey Sources: IMF

Employed persons in business sector, thousands

480 490 500 510 520 530 540 550 560 570 580 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

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Further job creation is achievable

page 54

Sources: Geostat Source: GeoStat Note: services include construction

Georgia’s unemployment rate fell 2.2ppts y/y to 12.4% in 2014 Hired workers account for about 39.7% in total employment Agriculture remains the largest employer, although the share of services in total employment has increased

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Services Agriculture Industry 100 200 300 400 500 600 700 800 2006 2007 2008 2009 2010 2011 2012 2013 2014 Public sector Non-public sector Sources: Geostat Sources: Geostat 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Employment (thousands) Unemployment rate 100 200 300 400 500 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Wages, US$ Total income, US$

Average monthly wages and income per household

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Demonstrated fiscal discipline and low public debt

Domestic 22% Multilateral 53% Bilateral 13% Eurobond 9% External 78% External public debt portfolio weighted average interest rate as 1.9% (contractual maturity 23 years) Source: Ministry of Finance of Georgia, IMF Sources: Ministry of Finance of Georgia, Geostat Source: Ministry of Finance of Georgia, as of end of 2014 *Coupon payments only, Eurobonds mature in 2021

Fiscal deficit as % of GDP Breakdown of public debt Government external debt service

Public debt as % of GDP

page 55

Source: Ministry of Finance of Georgia, Galt & Taggart Research (2014 and 2014 estimates)

0.3%
2.6%
3.4%
4.8%
6.5%
9.2%
6.7%
3.6%
2.8%
2.6%
3.0% -3.0%
10%
8%
6%
4%
2%

0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015F Fiscal Deficit as % of Nominal GDP 63% 51% 40% 32% 26% 31% 41% 42% 37% 35% 36% 36% 45% 35% 27% 21% 17% 24% 32% 34% 29% 28% 27% 27% 0% 10% 20% 30% 40% 50% 60% 70% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E Total public debt as % of GDP External public debt as % of GDP 244.9 204.5 230.0 309.0 329.5 292.4 5.0% 3.8% 3.9% 4.8% 0% 1% 2% 3% 4% 5% 6% 100 200 300 400 500 600 700 2015 2016 2017 2018 2019 2020 US$ mln Multilateral Bilateral Eurobond* External debt service as % of budget revenues

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77.9% 78.1% 75.0% 76.0% 82.3% 81.7% 80.4% 22.1% 21.9% 25.0% 24.0% 17.7% 18.3% 19.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2009 2010 2011 2012 2013 2014 2015F Current Expenditure Capital Expenditure

Investing in infrastructure and spending low on social

Source: IMF Source: IMF Sources: Ministry of Finance Source: Ministry of Finance

Revenues and expenditures Current and capital expenditure Government capital expenditure as % of GDP

Government social expenditure as % of GDP

2 4 6 8 10 12 14 16 18 20 Turkey Armenia Georgia Latvia Estonia Belarus Romania Albania Serbia Lithuania Hungary Russia Macedonia Bos and Herz Bulgaria Poland Croatia 2013 2014F 2015F 1 2 3 4 5 6 7 8 9 Croatia Romania Turkey Latvia Lithuania Serbia Poland Macedonia Russia Estonia Armenia Belarus Albania Hungary Bulgaria Georgia Bos and Herz 2013 2014F 2015F

page 56

6,765 7,592 7,963 8,618 8,315 9,857 10,644 6,685 7,023 7,462 7,994 7,861 8,813 9,335 37.2% 33.9% 30.7% 30.6% 29.3% 30.2% 30.4% 0% 10% 20% 30% 40% 50% 60% 70% 2,000 4,000 6,000 8,000 10,000 12,000 2009 2010 2011 2012 2013 2014E 2015F Total Budget Receipts, GEL mn Expenditures (Capital + Current), GEL mn Expenditures (Capital + Current) as % of GDP

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Diversified foreign trade

Imports, 1H15 Exports, 1H15

Import of goods and services

Sources: Geostat, Galt & Taggart Research

page 57

Note: Foreign trade data for goods imports and exports are adjusted to BOP statistics Source: Geostat, NBG, Galt & Taggart Research

Export of goods and services

Note: Foreign trade data for goods imports and exports are adjusted to BOP statistics Source: Geostat, NBG, Galt & Taggart Research

Excluding re-exports Originating from Georgia

Oil imports

Sources: GeoStat 105 186 336 443 556 762 555 697 911 951 954 918

40%
20%

0% 20% 40% 60% 80% 100% 200 400 600 800 1,000 1,200 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Oil imports, US$ mn Oil imports, % change, y/y 7M15 imports US$317.2mln, down 29.8% y-o-y EU 31% Turkey 18% China 9% Azerbaijan 8% Russia 7% Ukraine 6% USA 3% Japan 3% Armenia 2% Other 13% EU 31% Turkey 14% Russia 9% Armenia 8% USA 7% Azerbaijan 5% Canada 4% Ukraine 3% Other 19% 740 996 1,307 1,390 1,839 2,106 1,625 1,938 2,535 2,545 3,100 3,112 484 571 738 913 1,107 1,271 1,329 1,641 2,019 2,562 2,984 3,043 27 59 107 197 217 282 229 455 688 914 1,091 883 1,252 1,626 2,152 2,500 3,163 3,658 3,183 4,034 5,242 6,021 7,175 7,038 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Georgia originated exports, US$ mn Serveces exports, US$ mn Re-exports, US$ mn 1,426 1,986 2,631 3,643 4,944 6,224 4,270 5,021 6,723 7,685 7,697 8,235 399 486 636 733 935 1,246 978 1,093 1,265 1,447 1,562 1,683 1,825 2,472 3,267 4,376 5,879 7,471 5,248 6,114 7,988 9,133 9,259 9,918 2,000 4,000 6,000 8,000 10,000 12,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Goods imports, US$ mn Services imports, US$ mn

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340 499 450 1,190 2,015 1,564 658 814 1,117 911 942 1,787 8.5% 9.7% 7.0% 15.3% 19.8% 12.2% 6.1% 7.0% 7.7% 5.8% 5.8% 10.8% 0% 5% 10% 15% 20% 25% 500 1,000 1,500 2,000 2,500 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E US$ bln FDI inflows FDI as % of GDP 313 368 560 763 1,052 1,290 1,500 2,032 2,820 4,428 5,392 5,493 17 29 73 146 208 243 294 460 741 1,155 1,426 1,494 1,000 2,000 3,000 4,000 5,000 6,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E Foreign visitors (thousands persons) Net tourist revenue (mln USD)

Diversified sources of capital inflow

FDI inflows Number of tourists

Net remittances

Sources: Geostat Sources: Georgian National Tourism Agency, National Bank of Georgia, Galt & Taggart estimates

page 58

Source: National Bank of Georgia, Galt & Taggart Research (2014 GDP estimate) 213 315 420 755 918 767 949 1,168 1,226 1,322 1,263 4.2% 4.9% 5.4% 7.4% 7.2% 7.1% 8.2% 8.1% 7.7% 8.2% 7.6% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 200 400 600 800 1,000 1,200 1,400 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 US$ bln Net remittances Net remittances as % of GDP

3.9mln visitors in 8M15, up 5.9% US$714.3 mln in 8M15, down 25.9%

72 77 63 89 79 94 259 252 302 382 273 287 383 3 13 32 49 57 92 148 182 121 124 87 144 56 100 200 300 400 500 600 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F Investment projects, credits, US$ mn Investment projects, grants, US$ mn

Public donor funding

US$mln US$530.0 mln in 1H15, up 4.8%

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25%
20%
15%
10%
5%

0% 5% 10% 15% 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CA deficit to GDP Net FDI to GDP

18% 22% 32% 33% 34% 46% 65% 96% 164% 0% 10% 20% 30% 40% 50% 60% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% Armenia USD/AMD Kazakhstan USD/KZT Turkey USD/TRY Georgia USD/GEL Azerbaijan USD/AZN Moldova USD/MDL Belarus USD/BYR Russia USD/RUB Ukraine USD/UAH LHS: Devaluation RHS: Inflation

Current account deficit supported by FDI

Current account deficit and FDI FDI and capital goods import

Sources: Geostat, NBG, Galt & Taggart Sources: Geostat, NBG, Galt & Taggart

page 59

Currency devaluation by countries*

24.9%

*from 1 January 2014 to 7 August 2015 Source: http://www.tradingeconomics.com/country-list/inflation-rate 8.4% 9.6% 7.1% 15.1% 17.2% 12.2% 6.1% 7.0% 7.3% 5.8% 5.9% 7.3% 3.7% 3.9% 5.3% 6.5% 6.7% 6.2% 5.0% 5.4% 6.9% 7.8% 6.7% 6.9% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 FDI to GDP, % Capital goods imports to GDP, % 0% 5% 10% 15% 20% 25% 30% Azerbaijan Georgia Turkey Armenia Russia Moldova Belarus end-2014 latest-2015

Monetary policy rates

Source: Central banks

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0.2 0.4 0.5 0.9 1.4 1.5 2.1 2.3 2.8 2.9 2.8 2.7 0.9 1.0 1.1 1.2 1.3 1.2 1.2 1.4 1.3 1.3 1.4 1.3 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

US$bn FX reserves M2 multiplier

Floating exchange rate policy and stronger market fundamentals

FX reserves REER

Source: National Bank of Georgia

page 60

Sources: NBG

M2 and annual inflation

Source: MOF * Preliminary data for January 2015

M2 and GEL/USD

Source: MOF * Preliminary data for January 2015 Sources: NBG

US$ 2.5 bln reserves as of August 2015 NBG was a net seller of US$200 mln in 8M15

35%
30%
25%
20%
15%
10%
5%

0% 5% 10% 15% 20% 25% 30% 35%

30%
20%
10%

0% 10% 20% 30% 40% 50% 60% 70% Jan-03 May-03 Oct-03 Mar-04 Jul-04 Dec-04 May-05 Sep-05 Feb-06 Jul-06 Nov-06 Apr-07 Sep-07 Jan-08 Jun-08 Oct-08 Mar-09 Aug-09 Dec-09 May-10 Oct-10 Mar-11 Jul-11 Dec-11 May-12 Sep-12 Feb-13 Jul-13 Nov-13 Apr-14 Aug-14 Jan-15 Jun-15 M2 % change, y/y USD/GEL % change, y/y Lari appreciation Lari depreciation

6%
4%
2%

0% 2% 4% 6% 8% 10% 12% 14% 16%

30%
20%
10%

0% 10% 20% 30% 40% 50% 60% 70% Jan-03 May-03 Oct-03 Mar-04 Jul-04 Dec-04 May-05 Sep-05 Feb-06 Jul-06 Nov-06 Apr-07 Sep-07 Jan-08 Jun-08 Oct-08 Mar-09 Aug-09 Dec-09 May-10 Oct-10 Mar-11 Jul-11 Dec-11 May-12 Sep-12 Feb-13 Jul-13 Nov-13 Apr-14 Aug-14 Jan-15 Jun-15 M2, % change, y/y Annual inflation, eop 85 90 95 100 105 110 115 120 125 130 85 90 95 100 105 110 115 120 125 130 Jan-03 Jun-03 Nov-03 Apr-04 Sep-04 Feb-05 Jul-05 Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15

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0% 5% 10% 15% 20% 25% Turkey Georgia Austria Belgium Belarus Denmark Slovakia Latvia Czech Rep. Armenia Russia Kosovo Malta Lithuania Macedonia Moldova Slovenia Ukraine

Bos. & Herz.

Croatia Hungary Kazakhstan Romania

1.3 1.7 2.5 4.2 7.2 8.9 8.3 10.6 12.7 14.4 17.3 20.6 0.8 0.9 1.7 2.7 4.6 6.0 5.2 6.3 7.7 8.7 10.5 13.0 0.7 1.0 1.3 2.1 3.2 3.6 4.0 5.5 6.7 7.6 9.7 11.6 5 10 15 20 25 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 GEL bln Assets Loans Deposits

Growing and well capitalised banking sector

Summary Banking Sector loans and deposits YE 2013 NPLs, 2014

Banking sector assets, loans and deposits

Prudent regulation ensuring financial stability

− Sector total capital ratio (NBG standards) –17% in 2013 − High level of liquidity requirements from NBG at 30% of liabilities, resulting in banking sector liquid assets to client deposits of 53% as of 31 Dec 2014

Resilient banking sector

− 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 − Very low leverage with retail loans 18.0% of GDP and total loans at 39.1% of GDP as at 31 December 2013 resulting in low number of defaults during the global crisis

74.5% 45.9% 56.3% 67.3% 46.9% 53.8% 39.1% 40.1% 57.8% 53.5% 36.1% 78.8% 78.2% 74.9% 68.1% 63.8% 55.6% 53.4% 48.8% 44.3% 43.5% 39.1% Estonia Latvia Serbia Bulgaria Ukraine Turkey Russia Lithuania Romania Moldova Georgia* Gross loans/GDP Deposits/GDP Source: NBG, Central Banks Source: National Bank of Georgia, Geostat Source: WB, IMF Source: National Bank of Georgia

28.2% CAGR

page 61

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7% 8% 9% 9% 11% 11% 12% 12% 18% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Czech Republic Romania Russia Poland Ukraine Turkey Bulgaria Kazakhstan Georgia

One of the highest level of capital and low debt level compared to other frontier markets

Bank Capital to Assets, YE 2014 Dollarisation

Government debt / GDP, YE 2014

Sources: IMF, Ministry of Finance Sources: IMF Sources: National bank of Georgia

page 62

34% 0% 20% 40% 60% 80% 100% 120% 140% Turkey Georgia Belarus Macedonia Romania Lithuania Armenia Czech Rep. Denmark

Bos. & Herz.

Switzerland Slovakia Finland Montenegro Croatia Ukraine Netherlands Germany Slovenia Hungary Austria Canada UK Belgium USA Italy

35
65
40
55
120
40
60
60
80

80 140 220

80

0 0 0 0 0

120

0 0 40 40 120 40 40 0 0 0 0

150
100
50

50 100 150 200 250 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 NBG monthly net interventions US$mn

NBG FX interventions

55% 60% 65% 70% 75% 80% 55% 60% 65% 70% 75% 80% Jan-11 Jun-11 Dec-11 May-12 Nov-12 Apr-13 Oct-13 Mar-14 Sep-14 Feb-15 Aug-15

Deposit dollarization Loan dollarization

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Analyst coverage | Bank of Georgia Holdings PLC

GBP 25.60 GBP 20.00 GBP 20:00 GBP 25.40 GBP 22.66 GBP 27.35 GBP 23:00 GBP 24.00 GBP 26.00 GBP 22.40

Consensus Target Price: GBP 23.4

page 64

GBP 18.70 GBP 25.17

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How Express works

97 Express Branches 928,999 Express Cards for Transport payments 7,668 POS Terminals at 3,418 Merchants

2,284 Express Pay Terminals

Opening accounts and deposits
Issuing loans and credit cards
Credit card and loan repayments
Cash deposit into accounts
Money transfers
Utility and other payments
Acts as payments card in metro, buses

and mini-buses

Credit card repayments
Loan repayments
Cash deposit into accounts
Loan activation
Utility and other payments
Mobile top-ups
MetroMoney top-ups
Payments via cards and

Express points

P2P transactions between

merchant and supplier

Credit limit with 0%

interest rate

page 65

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8,341 7,908 8,833 Tellers 110 1,290 2,602 2,967 5,843 7,497 16,598 417 2,186 8,593 7,110 7,050 10,307 43,979 720 2,150 11,446 9,294 8,529 12,050 54,212 10,000 20,000 30,000 40,000 50,000 60,000 Mobile banking Internet banking Express cards POS terminals ATMs Express branches Express Pay terminals 1H15 1H14 1H13

Express Banking | Capturing Emerging Mass Market Customers

page 66

No. of transitions ‘000s

x3 61% 46% x3 x4 67% x7 +6%

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PrivatBank Ukraine 57.3% Unimain Holdings 40.2% Management 2.5%

Acquisition of Privatbank Georgia | a value creative transaction

Company Overview

At the date of transaction, Privatbank Georgia was the 9th

largest bank in Georgia by total assets with a focus on retail banking

Retail loans represented 85% of the loan book, credit cards

account for 69% of loans(1)

Countrywide distribution network with 92 branches, 431 ATMs

and 1,937 POS terminals

Over 1,100 employees
Privatbank Georgia had a 2.8% market share in Georgia by

total assets, 4.9% by retail loans and 3.0% by customer deposits(2)

Operated captive insurance and leasing franchise
Privatbank Georgia was a subsidiary of PJSC Commercial

Bank Privatbank (“Privatbank Ukraine”), ultimately owned by Igor Kolomoisky and Gennady Bogolyubov

Source: Company. (1) Based on 2013 IFRS consolidated financial statements. (2) Market data based on standalone accounts as published by the National Bank of Georgia (“NBG”) as of 31 December 2014. (3) Calculated excluding any branch optimization initiatives.(4) IFRS as per BoG estimates derived by applying auditor IFRS transformations for 2013 numbers to 9M 2014 data. (5) BoG number of employees are taken for the calculation of BoGH assets per employee.

Market Share Enhancement Strong Strategic Fit



 Transaction increased BoG’s market share in loans to individuals by 4.9% and in deposits from individuals by 2.6%(2)  Privatbank Georgia operated in an Express branch model; loans to individuals represented 85% of its total loan book  The transaction fits BoG’s strategy to further grow its Express business. BoG had c.560,000 Express clients by the time of this transaction.



 Significant cost and funding synergy potential: – BoGH’s Cost of Funding of 4.9%(4) vs 8.1%(4) for Privatbank implies estimated annualized pre-tax funding synergies of approximately GEL10m realizable within 9-12 months – Substantial cost synergies estimated pre-tax of at least GEL15m on an annual basis and realizable within 9-12 months expected from back office and distribution network optimisation initiatives – Up to GEL3m of integration costs  Significant potential to increase utilization of Privatbank franchise (e.g. assets per employee of Privatbank Georgia is GEL436k vs. GEL2,016k(5) of BoGH)  Opportunity to cross-sell BoG banking products to customers of Privatbank Georgia, which has limited portfolio of banking products due to strategic focus on credit cards

Synergistic Transaction



 Privatbank Georgia operated a large distribution network of 92 branches across the country, which was 42% of BoG’s distribution network as at 31 December 2014  Strengthened BoG’s Express branch distribution network  Strong payment platform (431 ATMs and 1,937 POS)

Distribution Network Enhancement



Transaction Overview

c.GEL92m (US$49.6m) cash consideration for 100% of Privatbank (1.11x P/BV(4))
Definitive agreements have been signed and the deal is closed. 70% of the consideration has already been paid, 20%

will be paid upon successful migration of Privatbank data and records to BoG systems and the remaining 10% will be paid on the first anniversary of the closing (January 2016), subject to representations and warranties / holdback provisions.

Pro forma capital position of BoG broadly unchanged (NBG Tier 1 ratio slightly declines to 11.0% from 11.2%)

Strong Transaction Rationale

Geographical Footprint

Tbilisi Regions of ‘s presence

Branches & Distribution Outlets ATMs 431 Points of Sale 1,937 Employees 1,154 92

Shareholders

Privatbank Georgia was ultimately controlled by Privatbank Ukraine

The acquisition of Privatbank is expected to be earnings accretive on a run rate basis before the end of year one page 67

(Before acquisition)

SLIDE 68

www.bogh.co.uk August 2015

Solo | a fundamentally different approach to premium banking

page 68

SOLO Lounges

Through the recently launched Solo, we target to attract new clients (currently only c.8,000) to significantly increase market share in premium banking from c.13%

New Solo offers:

Tailor made banking solutions
New financial products such as bonds
Concierge-style environment
Access to exclusive products and events
Lifestyle opportunities

New clients attracted per banker ratio was three-times higher for Solo Lifestyle, compared to regular Solo for the same period last year

SLIDE 69

www.bogh.co.uk August 2015

5.8% 0% 2% 4% 6% 8% 10% 12% 14% 16% USA UK France Germany Japan Russia Turkey Estonia Poland Bulgaria Thailand Malaysia Georgia UAE S.Africa Saudi page 69 217

500

1,000 USA UK France Germany Japan Russia Turkey Estonia Poland Bulgaria Thailand Malaysia Georgia UAE S.Africa Saudi 2,000 4,000 6,000 8,000

Low expenditure on healthcare services

Per capita expenditure on healthcare services, current US$ (1) Expenditure on healthcare services % of GDP (1) Growth opportunities: US$ 217 expenditure per capita on healthcare services Growth opportunities: 5.8% of GDP spent on healthcare services

Note: Healthcare services expenditure for other countries is pro-forma, based on assumption that pharmaceuticals is 17% of total spending

GHG | LONG-TERM HIGH-GROWTH PROSPECTS / Comps (1/4)

US$

Source: (1) World Bank 2013 data

SLIDE 70

www.bogh.co.uk August 2015

page 70

GHG | LONG-TERM HIGH-GROWTH PROSPECTS / Comps (2/4)

2.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% USA UK France Germany Japan Russia Turkey Estonia Poland Bulgaria Thailand Malaysia Georgia UAE S.Africa Saudi 6.7% 0% 5% 10% 15% 20% 25% USA UK France Germany Japan Russia Turkey Estonia Poland Bulgaria Thailand Malaysia Georgia UAE S.Africa Saudi Government expenditure on health as % of GDP (1)

Government spending on healthcare is only 6.7% of state budget and 2% of GDP

General government expenditure on health as % of total government expenditure (1) 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% USA UK France Germany Japan Russia Turkey Estonia Poland Bulgaria Thailand Malaysia Georgia UAE S.Africa Saudi

Government finances only c.20% of total healthcare costs

General government expenditure on health as % of total expenditure on health (1)

1,446 1,977 2,993 3,947 5,719 6,920 6,685 7,023 7,462 7,994 7,861 8,813 9,335

13% 22% 22% 22% 26% 22% 22% 22% 25% 24% 18% 16% 19% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 0.0 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 7,000.0 8,000.0 9,000.0 10,000.0

Capital Expenditures Current Expenditures Capital Expenditure as % of total expenditure

With c.20% of government tax revenues spent

n capex

Total government budget, breakdown by operating and capital expenditures (2) GELm

Sources: (1) World Health Organisation and World Bank, 2013 data (2) Ministry of Finance of Georgia

SLIDE 71

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page 71

GHG | LONG-TERM HIGH-GROWTH PROSPECTS / Comps (3/4)

Capacity-wise Georgia stands alongside US, UK and Turkey

Beds per 1,000 people(1)

84% of national bed capacity is privately owned
Highly fragmented with top 5 players having 40%

market share and average number of beds per hospital at 45 4.3

0.5

1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 USA UK France Germany Japan Russia Turkey Estonia Poland Bulgaria Thailand Malaysia Georgia UAE S.Africa Saudi

Physician overcapacity yet to be addressed

Number of physicians per 1,000 people(1) 1:1.6 Nurse to Doctor ratio 2.6

2.0

4.0 6.0 8.0 10.0 12.0 14.0 16.0 USA UK France Germany Japan Russia Turkey Estonia Poland Bulgaria Thailand Malaysia Georgia UAE S.Africa Saudi 74 50 55 60 65 70 75 80 85 USA UK France Germany Japan Russia Turkey Estonia Poland Bulgaria Thailand Malaysia Georgia UAE S.Africa Saudi 13.1

5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 USA UK France Germany Japan Russia Turkey Estonia Poland Bulgaria Thailand Malaysia Georgia UAE S.Africa Saudi

With significant room for improvement in terms of service mix and quality, as indicated by: under 5 mortality rate… … and life expectancy at birth

Under 5 mortality per 1,000 live births(1) Total (years)(1)

Source: (1) World Bank 2012, 2013 data

SLIDE 72

www.bogh.co.uk August 2015

2.1 2.5 2.7 4.0 4.3 5.0 7.0 8.2 11.0 Thailand South Africa Georgia US Malaysia UK Poland Turkey Russia

page 72

40 90 98 210 226 418 468 660 1,220 Georgia (GHG) India Turkey Germany South Africa South East Asia UK US MENA Low revenue per bed Low outpatient encounters

Average revenue per bed, US$ thousand Outpatient encounter per capita, annual

Imedi L outpatient encounters increased to 3.9 in 2015** up from 2.2 in 2012 GHG owns the capacity for revenue market share growth (HTMC & Deka P&L to be consolidated starting 3Q15; Deka and Sunstone to be renovated in 2016-17)

Heart surgery Liver transplant Knee replacement USA 100,000 300,000 48,000 UK 40,000 200,000 8,000 Turkey 45,625 86,700 17,500 Thailand 15,000 75,000 8,000 Singapore 15,000 140,000 25,000 India 5,000 45,000 6,000 Georgia 6,500 45,000 1,100 Price gap

Prices, US$ thousands

10x price gap with developed EM benchmarks

* pro-forma 1H15 result, based on Frost & Sullivan annual 2015 forecast ** annualized YTD May-2015 result

Rooms for growth – low price and low utilisation base currently

GHG | LONG-TERM HIGH-GROWTH PROSPECTS / Comps (4/4)

Sources: GHG internal reporting,; Frost & Sullivan analysis, 2015, NHA, Ministry of Labor, Health and Social Affairs of Georgia; OECD, World Health Organisation and World Bank, 2013 data

SLIDE 73

www.bogh.co.uk August 2015

Income Statement | Quarterly

page 73

Bank of Georgia Holdings PLC Banking Business Investment Business Eliminations

INCOME STATEMENT QUARTERLY Q2 2015 Q2 2014 Change Q1 2015 Change Q2 2015 Q2 2014 Change Q1 2015 Change Q2 2015 Q2 2014 Change Q1 2015 Change Q2 2015 Q2 2014 Q1 2015 Y-O-Y Q-O-Q Y-O-Y Q-O-Q Y-O-Y Q-O-Q Banking interest income 211,869 141,483 49.7% 199,698 6.1% 215,313 143,025 50.5% 202,353 6.4%

(3,444)

(1,542) (2,655) Banking interest expense (89,080) (58,970) 51.1% (78,709) 13.2% (88,910) (59,246) 50.1% (79,295) 12.1%

(170)

276 586 Net banking interest income 122,789 82,513 48.8% 120,989 1.5% 126,403 83,779 50.9% 123,058 2.7%

(3,614)

(1,266) (2,069) Fee and commission income 38,944 34,729 12.1% 35,991 8.2% 40,160 35,581 12.9% 37,343 7.5%

(1,216)

(852) (1,352) Fee and commission expense (9,823) (8,501) 15.6% (9,137) 7.5% (9,988) (8,501) 17.5% (9,253) 7.9%

165
116

Net fee and commission income 29,121 26,228 11.0% 26,854 8.4% 30,172 27,080 11.4% 28,090 7.4%

(1,051)

(852) (1,236) Net banking foreign currency gain 19,765 11,395 73.5% 18,962 4.2% 19,765 11,395 73.5% 18,962 4.2%

Net other banking income

2,481 2,241 10.7% 1,790 38.6% 2,810 2,433 15.5% 2,095 34.1%

(329)

(192) (305) Net insurance premiums earned 22,566 25,228

10.6%

21,709 3.9% 9,777 6,856 42.6% 9,242 5.8% 13,244 18,778

29.5%

12,890 2.7% (455) (406) (423) Net insurance claims incurred (16,749) (18,876)

11.3%

(14,135) 18.5% (6,304) (2,925) 115.5% (3,936) 60.2% (10,445) (15,951)

34.5%

(10,199) 2.4%

Gross insurance profit

5,817 6,352

8.4%

7,574

23.2%

3,473 3,931

11.7%

5,306

34.5%

2,799 2,827

1.0%

2,691 4.0% (455) (406) (423) Healthcare revenue 41,217 29,843 38.1% 40,017 3.0%

41,217

29,843 38.1% 40,017 3.0%

Cost of healthcare services

(23,118) (16,216) 42.6% (23,140)

0.1%
(23,118)

(16,216) 42.6% (23,140)

0.1%
Gross healthcare profit

18,099 13,627 32.8% 16,877 7.2%

18,099

13,627 32.8% 16,877 7.2%

Real estate revenue

1,716 11,133

84.6%

4,074

57.9%
1,716

11,133

84.6%

4,074

57.9%
Cost of real estate

(1,757) (7,657)

77.1%

(2,865)

38.7%
(1,757)

(7,657)

77.1%

(2,865)

38.7%
Gross real estate profit

(41) 3,476 NMF 1,209 NMF

(41)

3,476 NMF 1,209 NMF

Gross other investment profit

4,734 3,498 35.3% 1,398 NMF

4,709

3,437 37.0% 1,543 NMF 25 61 (145) Revenue 202,765 149,330 35.8% 195,653 3.6% 182,623 128,618 42.0% 177,511 2.9% 25,566 23,367 9.4% 22,320 14.5% (5,424) (2,655) (4,178) Salaries and other employee benefits (45,044) (37,462) 20.2% (45,742)

1.5%

(38,066) (31,347) 21.4% (38,606)

1.4%

(7,460) (6,282) 18.8% (7,531)

0.9%

482 167 395 Administrative expenses (22,102) (19,235) 14.9% (21,056) 5.0% (17,899) (15,746) 13.7% (17,506) 2.2% (4,498) (3,967) 13.4% (4,028) 11.7% 295 478 478 Banking depreciation and amortisation (8,338) (6,364) 31.0% (8,373)

0.4%

(8,338) (6,364) 31.0% (8,373)

0.4%
Other operating expenses

(1,364) (887) 53.8% (887) 53.8% (941) (803) 17.2% (792) 18.8% (423) (84) NMF (95) NMF

Operating expenses

(76,848) (63,948) 20.2% (76,058) 1.0% (65,244) (54,260) 20.2% (65,277)

0.1%

(12,381) (10,333) 19.8% (11,654) 6.2% 777 645 873 Operating income before cost of credit risk / EBITDA 125,917 85,382 47.5% 119,595 5.3% 117,379 74,358 57.9% 112,234 4.6% 13,185 13,034 1.2% 10,666 23.6% (4,647) (2,010) (3,305) Profit from associates 1,979

(1,310)

NMF

1,979
(1,310)

NMF

Depreciation and amortization of investment business

(2,579) (2,256) 14.3% (2,688)

4.1%
(2,579)

(2,256) 14.3% (2,688)

4.1%
Net foreign currency gain from investment business

2,689 (1,433) NMF 3,690

27.1%
2,689

(1,433) NMF 3,690

27.1%
Interest income from investment business

622 (71) NMF 617 0.8%

844

195 NMF 818 3.2% (222) (266) (201) Interest expense from investment business (2,632) (1,718) 53.2% (2,463) 6.9%

(7,501)

(3,994) 87.8% (5,969) 25.7% 4,869 2,276 3,506 Operating income before cost of credit risk 125,996 79,904 57.7% 117,441 7.3% 117,379 74,358 57.9% 112,234 4.6% 8,617 5,546 55.4% 5,207 65.5%

Impairment charge on loans to customers

(35,105) (7,816) NMF (38,928)

9.8%

(35,105) (7,816) NMF (38,928)

9.8%
Impairment charge on finance lease receivables

(1,779) (387) NMF (119) NMF (1,779) (387) NMF (119) NMF

Impairment charge on other assets and provisions

(4,983) (5,643)

11.7%

(2,794) 78.3% (3,880) (5,076)

23.6%

(1,724) 125.1% (1,103) (567) 94.5% (1,070) 3.1%

Cost of credit risk

(41,867) (13,846) NMF (41,841) 0.1% (40,764) (13,279) NMF (40,771) 0.0% (1,103) (567) 94.5% (1,070) 3.1%

Net operating income before non-recurring items

84,129 66,058 27.4% 75,600 11.3% 76,615 61,079 25.4% 71,463 7.2% 7,514 4,979 50.9% 4,137 81.6%

Net non-recurring items

(413) (7,078)

94.2%

(2,447)

83.1%

(3,409) (7,951)

57.1%

(2,167) 57.3% 2,996 873 NMF (280) NMF

Profit before income tax

83,716 58,980 41.9% 73,153 14.4% 73,206 53,128 37.8% 69,296 5.6% 10,510 5,852 79.6% 3,857 172.5%

Income tax expense

(11,686) (663) NMF (10,814) 8.1% (11,753) 489 NMF (10,486) 12.1% 67 (1,152) NMF (328) NMF

Profit

72,030 58,317 23.5% 62,339 15.5% 61,453 53,617 14.6% 58,810 4.5% 10,577 4,700 125.0% 3,529 199.7%

Attributable to:

– shareholders of the Group 70,601 56,421 25.1% 62,640 12.7% 60,963 52,702 15.7% 58,247 4.7% 9,638 3,719 159.2% 4,393 119.4%

– non-controlling interests

1,429 1,896

24.6%

(301) NMF 490 915

46.4%

563

13.0%

939 981

4.3%

(864) NMF

Earnings per share (basic)

1.84 1.64 12.2% 1.63 12.9%

SLIDE 74

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Income Statement | Half-year

page 74

Bank of Georgia Holdings PLC Banking Business Investment Business Eliminations INCOME STATEMENT HALF YEAR Jun-15 Jun-14 Change Jun-15 Jun-14 Change Jun-15 Jun-14 Change Jun-15 Jun-14 GEL thousands Y-O-Y Y-O-Y Y-O-Y Banking interest income 411,567 283,913 45.0% 417,666 287,011 45.5%

(6,099)

(3,098) Banking interest expense (167,789) (120,465) 39.3% (168,205) (120,780) 39.3%

416

315 Net banking interest income 243,778 163,448 49.1% 249,461 166,231 50.1%

(5,683)

(2,783) Fee and commission income 74,935 62,815 19.3% 77,503 64,045 21.0%

(2,568)

(1,230) Fee and commission expense (18,960) (16,753) 13.2% (19,241) (16,753) 14.9%

281
Net fee and commission income

55,975 46,062 21.5% 58,262 47,292 23.2%

(2,287)

(1,230) Net banking foreign currency gain 38,727 22,700 70.6% 38,727 22,700 70.6%

Net other banking income

4,272 3,107 37.5% 4,906 3,420 43.5%

(634)

(313) Net insurance premiums earned 44,275 54,618

18.9%

19,019 13,034 45.9% 26,134 42,443

38.4%

(878) (859) Net insurance claims incurred (30,884) (38,560)

19.9%

(10,242) (4,844) 111.4% (20,642) (33,716)

38.8%
Gross insurance profit

13,391 16,058

16.6%

8,777 8,190 7.2% 5,492 8,727

37.1%

(878) (859) Healthcare revenue 81,234 52,591 54.5%

81,234

52,591 54.5%

Cost of healthcare services

(46,259) (29,653) 56.0%

(46,259)

(29,653) 56.0%

Gross healthcare profit

34,975 22,938 52.5%

34,975

22,938 52.5%

Real estate revenue

5,790 33,044

82.5%
5,790

33,124

82.5%
(80)

Cost of real estate (4,622) (23,465)

80.3%
(4,622)

(23,465)

80.3%
Gross real estate profit

1,168 9,579

87.8%
1,168

9,659

87.9%
(80)

Gross other investment profit 6,133 5,861 4.6%

6,253

5,741 8.9% (120) 120 Revenue 398,419 289,753 37.5% 360,133 247,833 45.3% 47,888 47,065 1.7% (9,602) (5,145) Salaries and other employee benefits (90,786) (73,146) 24.1% (76,672) (61,681) 24.3% (14,991) (12,084) 24.1% 877 619 Administrative expenses (43,158) (34,773) 24.1% (35,404) (27,947) 26.7% (8,527) (7,514) 13.5% 773 688 Banking depreciation and amortisation (16,711) (12,523) 33.4% (16,711) (12,523) 33.4%

Other operating expenses

(2,253) (1,761) 27.9% (1,733) (1,624) 6.7% (520) (137) NMF

Operating expenses

(152,908) (122,203) 25.1% (130,520) (103,775) 25.8% (24,038) (19,735) 21.8% 1,650 1,307 Operating income before cost of credit risk / EBITDA 245,511 167,550 46.5% 229,613 144,058 59.4% 23,850 27,330

12.7%

(7,952) (3,838) Profit from associates 668

668
Depreciation and amortization of investment business

(5,266) (4,485) 17.4%

(5,266)

(4,485) 17.4%

Net foreign currency gain from investment business

6,379 (1,849) NMF

6,379

(1,849) NMF

Interest income from investment business

1,239 732 69.3%

1,662

980 69.6% (423) (248) Interest expense from investment business (5,094) (3,749) 35.9%

(13,469)

(7,835) 71.9% 8,375 4,086 Operating income before cost of credit risk 243,437 158,199 53.9% 229,613 144,058 59.4% 13,824 14,141

2.2%
Impairment charge on loans to customers

(74,033) (16,927) NMF (74,033) (16,927) NMF

Impairment charge on finance lease receivables

(1,899) (358) NMF (1,899) (358) NMF

Impairment charge on other assets and provisions

(7,776) (9,878)

21.3%

(5,604) (8,795)

36.3%

(2,172) (1,083) 100.6%

t of credit risk

(83,708) (27,163) NMF (81,536) (26,080) NMF (2,172) (1,083) 100.6%

Net operating income before non-recurring items

159,729 131,036 21.9% 148,077 117,978 25.5% 11,652 13,058

10.8%
Net non-recurring items

(2,860) (8,197)

65.1%

(5,575) (9,601)

41.9%

2,715 1,404 93.4%

Profit before income tax

156,869 122,839 27.7% 142,502 108,377 31.5% 14,367 14,462

0.7%
Income tax expense

(22,500) (10,857) 107.2% (22,238) (8,484) 162.1% (262) (2,373)

89.0%
Profit

134,369 111,982 20.0% 120,264 99,893 20.4% 14,105 12,089 16.7%

Attributable to:

– shareholders of the Group 133,241 108,347 23.0% 119,211 98,102 21.5% 14,030 10,245 36.9%

– non-controlling interests

1,128 3,635

69.0%

1,053 1,791

41.2%

75 1,844

95.9%
Earnings per share (basic)

3.47 3.15 10.2%

SLIDE 75

www.bogh.co.uk August 2015

Balance Sheet | 30 June 2015

page 75

Bank of Georgia Holdings PLC Banking Business Investment Business Eliminations Balance Sheet Jun-15 Jun-14 Change Mar-15 Change Jun-15 Jun-14 Change Mar-15 Change Jun-15 Jun-14 Change Mar-15 Change Jun-15 Jun-14 Mar-15 Y-O-Y Q-O-Q Y-O-Y Q-O-Q Y-O-Y Q-O-Q Cash and cash equivalents 1,261,805 903,734 39.6% 1,000,713 26.1% 1,252,758 895,287 39.9% 997,547 25.6% 107,511 73,488 46.3% 110,578

2.8%

(98,464) (65,041) (107,412) Amounts due from credit institutions 583,888 363,468 60.6% 545,714 7.0% 575,534 353,559 62.8% 523,663 9.9% 18,844 17,964 4.9% 87,478

78.5%

(10,490) (8,055) (65,427) Investment securities 895,840 569,937 57.2% 880,799 1.7% 898,457 568,784 58.0% 881,098 2.0% 1,153 1,153 0.0% 1,153 0.0% (3,770)

(1,452)

Loans to customers and finance lease receivables 5,052,752 3,650,791 38.4% 5,156,386

2.0%

5,142,221 3,714,213 38.4% 5,248,559

2.0%
(89,469)

(63,422) (92,173) Accounts receivable and other loans 77,866 60,677 28.3% 73,315 6.2% 15,474 9,622 60.8% 13,063 18.5% 70,343 51,903 35.5% 64,947 8.3% (7,951) (848) (4,695) Insurance premiums receivable 58,142 52,043 11.7% 58,816

1.1%

26,519 14,728 80.1% 22,337 18.7% 32,023 37,436

14.5%

37,205

13.9%

(400) (121) (726) Prepayments 52,145 28,188 85.0% 42,748 22.0% 30,779 18,417 67.1% 24,969 23.3% 21,366 9,771 118.7% 17,779 20.2%

Inventories

131,534 90,489 45.4% 113,322 16.1% 10,379 6,689 55.2% 7,697 34.8% 121,155 83,800 44.6% 105,625 14.7%

Investment property

221,506 152,292 45.4% 194,623 13.8% 143,873 127,374 13.0% 128,376 12.1% 77,633 24,918 211.6% 66,247 17.2%

Property and equipment

669,153 534,289 25.2% 618,474 8.2% 338,858 293,626 15.4% 334,516 1.3% 330,295 240,663 37.2% 283,958 16.3%

Goodwill

60,056 48,721 23.3% 51,745 16.1% 48,092 38,538 24.8% 39,781 20.9% 11,964 10,183 17.5% 11,964 0.0%

Intangible assets

36,894 28,490 29.5% 33,443 10.3% 33,260 26,596 25.1% 31,761 4.7% 3,634 1,894 91.9% 1,682 116.1%

Income tax assets

29,080 32,204

9.7%

24,943 16.6% 21,686 24,835

12.7%

17,602 23.2% 7,394 7,369 0.3% 7,341 0.7%

Other assets

244,398 152,360 60.4% 235,012 4.0% 174,820 140,452 24.5% 176,982

1.2%

80,058 12,784 526.2% 68,096 17.6% (10,480) (876) (10,066) Total assets 9,375,059 6,667,683 40.6% 9,030,053 3.8% 8,712,710 6,232,720 39.8% 8,447,951 3.1% 883,373 573,326 54.1% 864,053 2.2% (221,024) (138,363) (281,951) Client deposits and notes 4,104,417 3,074,710 33.5% 4,099,029 0.1% 4,212,822 3,148,729 33.8% 4,271,854

1.4%
(108,405)

(74,019) (172,825) Amounts due to credit institutions 2,139,517 1,240,128 72.5% 1,780,636 20.2% 2,045,093 1,145,875 78.5% 1,694,668 20.7% 189,124 156,753 20.7% 181,773 4.0% (94,700) (62,500) (95,805) Debt securities issued 1,063,123 786,432 35.2% 1,026,689 3.5% 990,257 760,144 30.3% 962,587 2.9% 79,894 26,690 199.3% 66,964 19.3% (7,028) (402) (2,862) Accruals and deferred income 132,832 83,784 58.5% 124,344 6.8% 14,369 9,917 44.9% 20,949

31.4%

118,463 73,867 60.4% 103,395 14.6%

Insurance contracts liabilities

73,001 60,537 20.6% 70,156 4.1% 42,910 25,890 65.7% 34,685 23.7% 30,091 34,647

13.1%

35,471

15.2%
Income tax liabilities

111,387 92,617 20.3% 96,761 15.1% 87,392 77,942 12.1% 79,343 10.1% 23,995 14,675 63.5% 17,418 37.8%

Other liabilities

94,839 72,599 30.6% 132,290

28.3%

71,126 44,634 59.4% 99,677

28.6%

34,604 29,407 17.7% 43,072

19.7%

(10,891) (1,442) (10,459) Total liabilities 7,719,116 5,410,807 42.7% 7,329,905 5.3% 7,463,969 5,213,131 43.2% 7,163,763 4.2% 476,171 336,039 41.7% 448,093 6.3% (221,024) (138,363) (281,951) Share capital 1,154 1,081 6.8% 1,154 0.0% 1,154 1,081 6.8% 1,154 0.0%

Additional paid-in capital

243,482 33,409 628.8% 252,568

3.6%

32,277 30,635 5.4% 94,886

66.0%

211,205 2,774 7513.7% 157,682 33.9%

Treasury shares

(36) (46)

21.7%

(34) 5.9% (36) (46)

21.7%

(34) 5.9%

Other reserves

(61,509) (82,317)

25.3%

(30,568) 101.2% (51,917) (72,614)

28.5%

(20,977) 147.5% (9,592) (9,703)

1.1%

(9,591) 0.0%

Retained earnings

1,413,870 1,249,580 13.1% 1,420,513

0.5%

1,247,508 1,042,804 19.6% 1,189,365 4.9% 166,362 206,776

19.5%

231,148

28.0%
Total equity attributable to shareholders of

the Group 1,596,961 1,201,707 32.9% 1,643,633

2.8%

1,228,986 1,001,860 22.7% 1,264,394

2.8%

367,975 199,847 84.1% 379,239

3.0%
Non-controlling interests

58,982 55,169 6.9% 56,515 4.4% 19,755 17,729 11.4% 19,794

0.2%

39,227 37,440 4.8% 36,721 6.8%

Total equity

1,655,943 1,256,876 31.8% 1,700,148

2.6%

1,248,741 1,019,589 22.5% 1,284,188

2.8%

407,202 237,287 71.6% 415,960

2.1%
Total liabilities and equity

9,375,059 6,667,683 40.6% 9,030,053 3.8% 8,712,710 6,232,720 39.8% 8,447,951 3.1% 883,373 573,326 54.1% 864,053 2.2% (221,024) (138,363) (281,951) Book value per share 41.74 34.95 19.4% 42.71

2.3%

SLIDE 76

www.bogh.co.uk August 2015

Healthcare business income statement

page 76

Healthcare Services Medical Insurance Eliminations Total GEL thousands, unless otherwise noted 1H15 1H14 Change, Y-o-Y 1H15 1H14 Change, Y-o-Y 1H15 1H14 1H15 1H14 Change, Y-o-Y Revenue 85,258 65,728 29.7% 26,355 42,539

38.0%

4,188 13,402 107,425 94,865 13.2% COGS, insurance claims expense 48,167 38,610 24.8% 21,872 37,637

41.9%

4,024 13,291 66,015 62,956 4.9% Direct salary 31,022 25,047 23.9%

1,800

5,714 29,222 19,333 51.2% Materials, including medicines and medical disposables 12,379 7,804 58.6%

718

1,780 11,661 6,023 93.6% Direct healthcare provider expenses 1,032 2,362

56.3%
60

539 972 1,823

46.7%

Utilities and other expenses 3,734 3,397 9.9%

217

775 3,518 2,622 34.1% Medical insurance claims expense

21,872

37,637

41.9%

1,229 4,483 20,642 33,154

37.7%

Gross profit 37,090 27,118 36.8% 4,483 4,902

8.5%

163 111 41,410 31,909 29.8% Salaries and other employee benefits 10,578 7,320 44.5% 2,082 2,692

22.6%

163 111 12,497 9,901 26.2% General and Administrative expenses 3,790 2,961 28.0% 1,232 1,251

1.6%
5,022

4,212 19.2% Impairment Charge 1,737 833 108.5% 204 262

22.1%
1,941

1,095 77.3% Other operating income 1,120 (602)

51

86

40.9%
1,171

(517)

EBITDA

22,106 15,402 43.5% 1,015 782 29.8%

23,121

16,184 42.9% Depreciation (4,550) (3,397) 33.9% (289) (310)

6.7%
(4,839)

(3,707) 30.5% Net interest income (expense) (10,049) (6,157) 63.2% (34) 295

(10,083)

(5,862) 72.0% (Losses) gains on currency exchange 4,880 (2,017)

569

234 143.0%

5,449

(1,783)

Net non-recurring items

(402) 1,333

(402)

1,333

Profit before income tax

11,985 5,165 132.1% 1,261 1,001 26.0%

13,246

6,166 114.8% Income tax expense (79) (465)

83.0%

(185) (230)

19.7%
(264)

(695)

62.0%

Profit 11,906 4,699 153.3% 1,077 771 39.6%

12,982

5,471 137.3% Attributable to:

shareholders of the Company

10,444 3,706 181.8% 1,077 771 39.6%

11,520

4,478 157.3%

minority interest

1,462 993 47.2%

1,462

993

SLIDE 77

www.bogh.co.uk August 2015

Group Employee Data

2Q15 2Q14 1Q15 Full Time Employees, Group, Of Which: 14,583 12,267 14,737

Full Time Employees, BOG Standalone

4,368 3,629 3,799

Full Time Employees, GHG

8,496 7,343 8,177

Full Time Employees, m2

58 47 57

Full Time Employees, Aldagi

253 202 262

Full Time Employees, BNB

505 439 480

Full Time Employees, Other

903 607 1,962

Key ratios and operating data

page 77

Shares outstanding

30-Jun-15 31-Mar-15 30-Jun-14 Ordinary shares outstanding 38,257,793 34,387,198 38,479,900 Treasury shares outstanding 1,242,527 1,522,185 1,020,420

Banking Business Key ratios,

Including Privatbank Excluding Privatbank Including Privatbank Excluding Privatbank 2Q15 2Q15 2Q14 1Q15 1Q15 Profitability ROAA, Annualised 2.9% 2.7% 3.5% 3.0% 3.1% ROAE, Annualised 19.3% 17.8% 21.0% 19.2% 18.8% Net Interest Margin, Annualised 7.6% 6.9% 7.4% 7.8% 7.3% Loan Yield, Annualised 14.6% 13.7% 14.3% 14.5% 13.7% Liquid assets yield, Annualised 3.1% 3.1% 2.3% 3.2% 3.3% Cost of Funds, Annualised 5.0% 4.9% 4.7% 5.0% 4.8% Cost of Client Deposits and Notes, annualised 4.4% 4.3% 4.2% 4.4% 4.1% Cost of Amounts Due to Credit Institutions, annualised 5.3% 5.2% 4.7% 5.2% 5.1% Cost of Debt Securities Issued 7.2% 7.2% 7.2% 7.1% 7.1% Operating Leverage, Y-O-Y 21.7% 16.7%

6.3%

17.1% 20.8% Operating Leverage, Q-O-Q 2.9%

4.7%
1.7%

5.0% 9.1% Efficiency Cost / Income 35.7% 36.6% 42.2% 36.8% 35.0% Liquidity NBG Liquidity Ratio 35.1% 34.1% 38.1% 34.7% 34.1% Liquid Assets To Total Liabilities 36.5% 36.1% 34.9% 33.5% 33.1% Net Loans To Client Deposits and Notes 122.1% 124.1% 118.0% 122.9% 127.1% Net Loans To Client Deposits and Notes + DFIs 102.4% 103.0% 100.0% 105.2% 107.3% Leverage (Times) 6.0 5.7 5.1 5.6 5.3 Asset Quality: NPLs (in GEL) 219,230 208,321 145,590 187,129 183,184 NPLs To Gross Loans To Clients 4.1% 4.1% 3.8% 3.5% 3.6% NPL Coverage Ratio 82.2% 75.9% 73.8% 74.2% 71.7% NPL Coverage Ratio, Adjusted for discounted value of collateral 115.1% 110.6% 116.1% 118.0% 116.5% Cost of Risk, Annualised 2.7% 2.4% 0.9% 3.1% 2.6% Capital Adequacy: BIS Tier I Capital Adequacy Ratio, Consolidated 20.4% 20.9% 22.5% 19.9% 20.5% BIS Total Capital Adequacy Ratio, Consolidated 26.7% 27.4% 26.3% 23.9% 24.7% New NBG (Basel II) Tier I Capital Adequacy Ratio 10.4% 9.9% 10.8% 9.8% 9.1% New NBG (Basel II) Total Capital Adequacy Ratio 15.9% 15.7% 14.0% 12.9% 12.3% Old NBG Tier I Capital Adequacy Ratio 13.9% 14.5% 14.8% 14.2% 14.9% Old NBG Total Capital Adequacy Ratio 15.8% 15.2% 13.8% 12.9% 12.3% Includes Privatbank

Selected Operating Data:

2Q15 2Q14 1Q15 Total Assets Per FTE, BOG Standalone 1,995 1,717 2,277 Number Of Active Branches, Of Which: 246 206 219

Flagship Branches

35 34 34

Standard Branches

114 100 101

Express Branches (including Metro)

97 72 84 Number Of ATMs 685 510 554 Number Of Cards Outstanding, Of Which: 1,964,374 1,075,134 1,204,662

Debit cards

1,207,573 957,386 1,088,878

Credit cards

756,801 117,748 115,784 Number Of POS Terminals 7,668 5,689 6,537 Including Privatbank Excluding Privatbank 1H15 1H15 1H14 2.9% 2.9% 3.3% 19.3% 18.3% 19.3% 7.8% 7.1% 7.5% 14.6% 13.7% 14.5% 3.2% 3.2% 2.3% 5.0% 4.9% 4.9% 4.4% 4.2% 4.4% 5.3% 5.2% 4.8% 7.2% 7.2% 7.2% 19.5% 18.7%

3.2%

36.2% 35.8% 41.9% 35.1% 34.1% 38.1% 36.5% 36.1% 34.9% 122.1% 124.1% 118.0% 102.4% 103.0% 100.0% 6.0 5.7 5.1 219,230 208,321 145,590 4.1% 4.1% 3.8% 82.2% 75.9% 73.8% 115.1% 110.6% 116.1% 2.9% 2.5% 0.9% Risk Weighted Assets Change

Risk Weighted Assets breakdown

GEL millions 30-Jun-15 31-Mar-15 30-Jun-14 Y-O-Y, % Q-O-Q, % Credit risk weighting 5,930,369 5,517,105 4,312,270 37.5% 7.5% FX induced credit risk (market risk) 1,795,351 1,810,010 1,315,910 36.4%

0.8%

Operational risk weighting 624,825 624,825 574,717 8.7% 0.0% Total RWA under NBG Basel 2/3 8,350,545 7,951,940 6,202,897 34.6% 5.0%

SLIDE 78

www.bogh.co.uk August 2015

Notes to Key Ratios

page 78

1 Return on average total assets (ROAA) equals Profit for the period divided by monthly average total assets for the same period; 2 Return on average total equity (ROAE) equals Profit for the period attributable to shareholders of the Group divided by monthly average equity attributable to shareholders

f the Group for the same period;

3 Net Interest Margin equals Net Banking Interest Income of the period divided by monthly Average Interest Earning Assets Excluding Cash for the same period; Interest Earning Assets Excluding Cash comprise: Amounts Due From Credit Institutions, Investment Securities (but excluding corporate shares) and net Loans To Customers And Finance Lease Receivables; 4 Loan Yield equals Banking Interest Income From Loans To Customers And Finance Lease Receivables divided by monthly Average Gross Loans To Customers And Finance Lease Receivables; 5 Cost of Funds equals banking interest expense of the period divided by monthly average interest bearing liabilities; interest bearing liabilities include: amounts due to credit institutions, client deposits and notes and debt securities issued; 6 Operating Leverage equals percentage change in revenue less percentage change in operating expenses; 7 Cost / Income Ratio equals operating expenses divided by revenue; 8 Daily average liquid assets (as defined by NBG) during the month divided by daily average liabilities (as defined by NBG) during the month; 9 Liquid assets include: cash and cash equivalents, amounts due from credit institutions and investment securities; 10 Leverage (Times) equals total liabilities divided by total equity; 11 NPL Coverage Ratio equals allowance for impairment of loans and finance lease receivables divided by NPLs; 12 NPL Coverage Ratio adjusted for discounted value of collateral equals allowance for impairment of loans and finance lease receivables divided by NPLs (discounted value of collateral is added back to allowance for impairment) 13 Cost of Risk equals impairment charge for 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; 14 BIS Tier I Capital Adequacy ratio equals Tier I Capital divided by total risk weighted assets, both calculated in accordance with the requirements of Basel Accord I; 15 BIS Total Capital Adequacy ratio equals total capital divided by total risk weighted assets, both calculated in accordance with the requirements of Basel Accord I; 16 New NBG (Basel 2/3) Tier I Capital Adequacy ratio equals Tier I Capital divided by total risk weighted assets, both calculated in accordance with the requirements the National Bank of Georgia instructions; 17 New NBG (Basel 2/3) Total Capital Adequacy ratio equals total capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions; 18 Old NBG Tier I Capital Adequacy ratio equals Tier I Capital divided by total risk weighted assets, both calculated in accordance with the requirements the National Bank

f Georgia instructions;

19 Old NBG Total Capital Adequacy ratio equals total capital divided by total risk weighted Assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions;

SLIDE 79

www.bogh.co.uk August 2015

Bank of Georgia Holdings PLC | Company Information

page 79

Registered Address 84 Brook Street London W1K 5EH United Kingdom www.bogh.co.uk Registered under number 7811410 in England and Wales Incorporation date: 14 October 2011 Stock Listing London Stock Exchange PLC’s Main Market for listed securities Ticker: “BGEO.LN” Contact Information Bank of Georgia Holdings PLC Investor Relations Telephone: +44 (0) 20 3178 4052 E-mail: ir@bog.ge www.bogh.co.uk Auditors Ernst & Young LLP 1 More London Place London SE1 2AF United Kingdom Registrar Computershare Investor Services PLC The Pavilions Bridgewater Road Bristol BS13 8AE United Kingdom Share price information BGH shareholders can access both the latest and historical prices via our website, www.bogh.co.uk

Capturing Growth Opportunities

Investor Presentation: 2Q15 & 1H15 results

Disclaimer

Contents

Bank of Georgia Holdings PLC | Overview Results Discussion | Bank of Georgia Holdings PLC Results Discussion | Banking Business Results Discussion | Segments Georgian Macro Overview

Appendices

BGH | Shareholder structure and share price

BGH shareholder structure

BGH has been included in the FTSE 250 and FTSE All-share Index Funds since 18 June 2012

Share price performance

x50 growth in market capitalisation

BGH at a glance

Group Structure

GGU

BGH | Updated our strategy from 3x20 to 4x20

Earlier Strategy

Current Strategy – Georgia Focused Banking Group with an Investment Arm

BGH | Robust corporate governance compliant with UK Corporate Governance Code

BGH | New Management Structure

8 8

Contents

Bank of Georgia Holdings PLC | Overview Results Discussion | Bank of Georgia Holdings PLC Results Discussion | Banking Business Results Discussion | Segments Georgian Macro Overview

Appendices

BGH | P&L results highlights

2Q15 P&L

1H15 P&L

BGH | Balance sheet highlights

30 June 2015 Balance Sheet

Key Ratios

BGH | Strong revenue growth, with positive operating leverage

Revenue, quarterly Operating Expenses, quarterly

Revenue, half-year Operating Expenses, half-year

BGH | Strong profitability

Profit, quarterly

Equity

Profit, half-year

BGH | Balance Sheet, 30 June 2015

Assets

Liabilities

Contents

Bank of Georgia Holdings PLC | Overview Results Discussion | Bank of Georgia Holdings PLC Results Discussion | Banking Business Results Discussion | Segments Georgian Macro Overview

Appendices

BOG | The leading bank in Georgia

Peer group’s market share in total assets Peer group’s market share in gross loans Foreign banks market share by assets Peer group’s market share in client deposits

BOG | Leading the competition across the board

Banking Business | Diversified asset structure

Total asset structure | 30 June 2015 Liquid assets | 30 June 2015

Loans breakdowns | 30 June 2015

Banking Business | US$ loan portfolio breakdown

Highlights Corporate Banking | 30 June 15 Retail Banking and Wealth Management | 30 June 15

Banking Business | Resilient loan portfolio quality (1/2)

NPLs NPL composition NPL coverage ratio

Loan loss reserve

Banking Business | Resilient loan portfolio quality (2/2)

Cost of Credit Risk, quarterly

Cost of Risk ratio, quarterly

Cost of Credit Risk, half year Cost of Risk ratio, half-year

Banking Business | Strong liquidity (1/2)

Liquid assets to total liabilities NBG liquidity ratio Net loans to customer funds & DFIs

Net loans to customer funds

Banking Business | Strong liquidity (2/2)

Liquidity coverage ratio & net stable funding ratio Foreign currency VaR analysis* Open currency position

Cumulative maturity gap, 30 June 2015**

Banking Business | Funding structure is well established

Interest Bearing Liability structure | 30 June 2015 Well diversified international borrowings | 2Q15 Interest bearing liabilities

Borrowed funds maturity breakdown*

Banking Business | Strong revenue growth

Revenue growth | half-year Revenue growth | quarterly Net non-interest income | quarterly

Net non-interest income | half-year

Banking Business | keeping a tight grip on costs

Operating expenses | half-year Operating expenses | quarterly

Net non-recurring items & operating income before cost of credit | quarterly Net non-recurring items & operating income before cost of credit | half-year

Banking Business | Focus on efficiency

Cost / Income ratio | half-year Cost / Income ratio | quarterly Revenue and operating expenses | quarterly

Revenue and operating expenses | half-year

Banking Business | growing income notwithstanding the pressure on yields

Loan Yields | annual Loan Yields | quarterly Loan Yields, foreign currency | quarterly

Loan Yields, GEL | quarterly

Banking Business | Stable Cost of Funding

Cost of Funds | half-year Cost of Funds | quarterly Cost of Customer Funds | quarterly