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

Capturing Growth Opportunities Investor Presentation: 2Q15 & 1H15 results 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 other 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. www.bogh.co.uk page 2 August 2015

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 www.bogh.co.uk page 3 August 2015

BGH | Shareholder structure and share price BGH shareholder structure As of 30 June 2015 UK/Ireland 19% BGH has been included in the US/Canada 2% FTSE 250 and Scandinavia 42% 3% FTSE All-share Index Funds Unvested and unawarded shares for management and 7% employees Vested shares held by management and employees since 18 June 2012 Others 27% Note: Bank of Georgia Holdings PLC (BGH) (LSE: BGEO) is a UK- incorporated holding company of JSC Bank of Georgia x50 growth in market capitalisation Share price performance Up 141% since Average daily trading volume premium listing 1 9,500,000 1,200 10,000,000 26 9,000,000 24 8,000,000 22 US$ US$ millions 7,000,000 GBP 20 6,000,000 5,300,000 18 5,000,000 16 14 4,000,000 12 3,000,000 2,000,000 10 2,000,000 950,000 8 21 1,000,000 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 0 30-Sep-04 3-Aug-15 Average daily trading volume 2011 2012 2013 2014 BGEO LN GDR www.bogh.co.uk 1 Share price change calculated from the last price of BGEO LI on 27 February 2012 to the price of BGEO LN on 31 July 2015 page 4 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 August 2015

BGH at a glance Group Structure In August Bank of Georgia completed its legal restructuring in accordance with the National Bank of Georgia’s intention to regulate banks in Georgia on a standalone basis and thereby limit investments in non-banking subsidiaries by locally regulated banking entities. Banking Business Investment Business GGU Water utility and hydro Healthcare Real Estate Utilities Legacy Retail Corporate Other Banking Investments Business Business (GGU) Banking Banking Businesses #1 Healthcare Major player on the #1 Real Estate #1 Corporate Bank in Georgia P&C #1 Retail Bank in Georgia company in Georgia company in Georgia market Insurance • 5k clients • Provides water and • Revenue oGEL • 2 completed projects • GEL 2,174.1mln loans Leasing wastewater services to • 1.9mln retail clients 107.4mln in 1H15 and 4 under • GEL 1,371.9mln client deposits 1.4mln people (1/3 of • • EBITDA 23.1mln 246 branches construction Georgia) • Payment • Total sales of 1,376 685 ATMs • Operates 3 hydro • 2,284 Express Pay terminals Services appartments Healthcare services facilities with 143MW • 7,668 POS terminals • 41 healthcare facilities US$115.8mln since capacity • 928,999 Express cards • 2,220 beds 2011, of which IB • Acquired 25% share • Investment 1.9mln cards • Over 2/3 of population US$58.9 mln to be with an option to Management recognised upon covered acquire additional • GEL 2,623.6mln net loans BNB • Market share of completion of projects 24.9% • • 99% sale in completed GEL 1,736.5mln client deposits • Wealth management, research, 22.1% by beds, HTMC • 2014 EBITDA of projects advisory, brokerage, private equity acquisition increased GEL51.6mln 1 • 72% pre-sales for on- • AUM of GEL 1,231.4mln to 26.6% Plans to divest • GGU profit (BOG going 4 projects • WM client deposits GEL 904.8mln from BNB share) of GEL 2.0 mln • Total BOG mortgages Health insurance in 2Q15 and GEL 0.7 sold GEL 66.3mln • 38.3% market share mln in 1H15 • Insuring 256k people www.bogh.co.uk 1 Per GGU management accounts, neither audited or reviewed by auditors or Bank of Georgia page 5 August 2015 Source: Company, financial and operating data is for FY 2014

BGH | Updated our strategy from 3x20 to 4x20 Current Strategy – Georgia Focused Banking Group with an Investment Arm Earlier Strategy Leading Georgian bank with investments in non- core sectors with a divestment strategy Banking Business Investment Business 1 ROAE c.20% 4 1 2 TIER I c.20%  Target investments Min. IRR  ROAE of 19.3% in 2Q15 with min. 20% IRR ROE c.20% 3 Growth c.20% and partial or full exit of 20%  ROAE of 19.3% in 1H15 in max 6 years Dividend Policy:  Investment Approach Payout Ratio 25-40%  2 One-off dividends from divestments over time  Strong internal cash generation to support  Opportunistic Tier I c.20% loan growth without compromising Highly disciplined investments capital ratios  Staging and small approach to unlock  Tier I ratio of 20.4% as of 30 Jun 2015 value through capital commitments Underpenetrated Retail Capital Allocation,  EBITDA potential of Banking Sector Provides selective investments 1H15 (GELm) 3  Aiming 20% growth in retail banking Room for Further Growt 1 in Georgia, which at least GEL60m 21.6% 14.2% business (c.US$30m) in 3-4 Growth c.20% have a well defined  19.8% y-o-y constant currency growth years exit path 19.6% 557 544 excluding Privatbank as of 30 Jun 2015  Clear exit path 21.8% 21.0% Retail Loans / Corporate Loans / RB CB GDP GDP External corporate RoAE indebtedness Target Current contribution Current contribution Target Profit Contribution At least 80% Up to 20% 2Q15: GEL 61mln or 85% 2Q15: GEL 11mln or 15% Ongoing Dividends For 2014, paid dividend of  Aiming for at least 3 special GEL 2.10 per share,  Recurring: linked to recurring profit dividends in next 5 years, a 5.0% y-o-y increase from banking business implying 31.2% payout representing at least 50% of regular  Aiming 25-40% dividend payout ratio ratio dividend from banking business 1 Ratios calculated based on NBG Data as at 31 December2014. www.bogh.co.uk page 6 August 2015