Bank of Georgia 2007 Results Overview April 2008 Introduction To - PowerPoint PPT Presentation

Standard & Poor’s: ‘B+/B’ Stable Moody’s: ‘B3/NP’ (FC) & ‘Ba1/NP’ (LC); Stable Fitch Ratings: ‘B+/B’ Stable LSE: BGEO GSE: GEB Berlin-Bremen Boerse: B7D1 Reuters: BGEO.L Bloomberg: BGEO.LI Bank of Georgia 2007 Results Overview April 2008

Introduction To Bank of Georgia Market Leader In All The leading universal bank in Georgia Six Business Lines No.1 by assets (circa 35.4%), (1) loans (circa 32.7%), (1) deposits (circa 31.4%) (1) Investment Highlights • Retail Banking and equity (circa 34.6%) (1) A „leveraged play‟ on Georgia‟s • Corporate & 7.0% 2007 market share gain in total assets (+10.2 % in 2006) economic growth Investment Banking 6.1% 2007 market share gain in gross loans (+8.2 % in 2006) • Insurance Diversified revenue streams and 6.8% 2007 market share gain in total deposits (+5.5 % in 2006) • Wealth disciplined capital management Management Leadership in retail banking, with • Asset Management Domestic universal banking strategy • Securities driving profitable growth March 2008 YE 2007 YE 2006 Domestic sector consolidator and Retail Accounts 770,000+ 705,000+ 425,000+ Cards Outstanding 740,000+ 640,000+ 285,000+ aspirations for regional expansion Branches 131 117 100 Sophisticated management team with ATMs 310 250 124 Western banking & finance background Top brand, best distribution network and broadest range of services of any bank and education in Georgia Transparency and good governance, circa Leading corporate and investment banking franchise Approximately 68,000 legal entities have opened accounts 85%+ institutionally owned, majority of Top broker-dealer with circa 63% market share in equities trading by December the Board seats held by large shareholders 2007 and an independent director Leading card-processing, leasing, insurance, wealth management and asset management services provider Strategy The only Georgian entity with credit ratings from all three global rating agencies S&P: „B+/B‟; Stable – at the sovereign ceiling Consolidate leading position in the Moody‟s: „B3/NP (FC)‟ & „Ba1/NP (LC)‟; Stable domestic banking market Fitch Ratings: „B+/B‟; Stable Promote the future growth of the retail Listed on the London Stock Exchange (GDRs) and Georgian Stock Exchange banking business Market Cap (LSE) US$749 mln as of 31 January 2008 Further diversify the business, including Approximately 95% free float 2006 share price performance 383%, 2007 share performance 31% funding base and loan portfolio Issue of the first ever Eurobonds in Georgia Continue improving risk management Bloomberg: BKGEO; 5 year, 9%, US$200 mln policies and procedures B+/Ba2/B+ (composite BB-) Actively pursue sensible regional Notes: (1) As of 31 December 2007; based on standalone accounts as reported to the National Bank of Georgia and as published by expansion opportunities the National Bank of Georgia www/nbg.gov.ge Page 2 April 2008 www.bog.ge/ir

Bank of Georgia 2007 Results Overview Page 3 April 2008 www.bog.ge/ir

2007 Results Highlights Millions, unless otherwise noted 2007 2006 Growth, Y-O-Y 1 Bank of Georgia (Consolidated, IFRS Based) GEL US$ GEL US$ Unaudited Unaudited Net Interest Income 133.1 83.6 66.7 38.9 99% Increasing Net Non-Interest Income 84.6 53.2 45.3 26.4 87% Operating Total Operating Income (Revenue) 2 217.7 136.8 112.0 65.4 94% Leverage Recurring Operating Costs 87.2 54.8 52.5 30.7 66% Normalized Net Operating Income 3 130.4 82.0 59.5 34.7 119% Pre-Bonus Result 119.2 74.9 45.9 26.8 160% Net Income 75.4 47.4 26.8 15.6 182% Consolidated EPS (Basic), GEL & US$ 4 2.89 1.82 1.62 0.95 92% Consolidated EPS (Fully Diluted), GEL & US$ 5 2.77 1.74 0.98 0.57 203% ROAA 6 3.8% 3.4% ROA 2.5% 2.2% ROAE 7 17.7% 16.5% Despite Tier I ROE 13.5% 7.1% CAR of 21.4% Net Loans 1,684 1,058 693.9 405.0 143% Total Assets 2,981 1,873 1,213 708.1 146% Total Deposits 1,393 875.0 560.5 327.1 148% Total Liabilities 2,422 1,521 838.5 489.3 189% Shareholders‟ Equity 559.8 351.8 374.9 218.8 49% Book Value Per Share 20.62 12.96 14.87 8.68 39% 1 Compared to the same period in 2006; growth calculations based on GEL except for the EPS. 2 Revenue includes Net Interest Income and Net Non-Interest Income. 3 Normalized for Net Non-Recurring Costs. 4 Basic EPS equals Net Income of the period divided by weighted average outstanding shares for the period. 5 Fully Diluted EPS equals Net Income of the period divided by the number of outstanding ordinary shares as of the period end plus number of ordinary shares in contingent liabilities. 6 Return on Average Total Assets equals Net Income for the period divided by the average Total Assets for the period. 7 Return on Average Total Shareholders‟ Equity equals Net Income for the period divided by the average Total Shareholders‟ Equi ty for the period. Page 4 April 2008 www.bog.ge/ir

2007 Performance Composition of Revenue (GEL mln) Revenue Market Share* GEL mln 250 45% 42% +94% 217.7 40% 26.6 200 35% +134% 26.2 5.9 30% +120% 150 25.9 24% +71% 25% 112.0 +40% 20% 11.4 100 11.9 3.5 +99% 15% 18.5 133.1 10% 50 66.7 5% 0 0% 2006 2007 2006 2007 Net Interest Income Net Fee & Commission Income Net Income From Documentary Operations Net Foreign Currency Related Income Net Other Non-Interest Income Net Interest Income vs. Net Non-Interest Income Net Other Non-Interest Income (GEL mln) (GEL mln) GEL mln GEL mln 30.0 +99% 133.1 140 +134% 26.6 120 25.0 100 9.3 +87% 84.6 20.0 128% 80 66.7 60 45.3 15.0 5.6 NMF 11.4 40 2.4 10.0 20 4.1 NMF 3.6 - - 0 34% 2.7 5.0 2006 2007 23% 5.7 4.6 Net Interest Income Net Non-Interest Income 0.0 2006 2007 Net Insurance Income Brokerage Income Asset Management Income Realised Net Investment Gain Other *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 Page 5 April 2008 www.bog.ge/ir

2007 Performance cont’d Operating Cost Structure Normalised Net Operating Income GEL mln GEL mln 140 +119% 130.4 100.0 +66% 87.2 90.0 120 3.8 80.0 9.8 +3% 100 70.0 9.2 +67% 60.0 52.5 80 +74% 24.5 3.7 50.0 59.5 5.9 40.0 5.3 60 +59% 30.0 15.3 40 +79% 20.0 39.9 22.3 10.0 20 0.0 0 2006 2007 2006 2007 Personnel Costs Selling, General & Administrative Expenses Procurement & Operations Support Expenses Depreciation And Amortization Other Operating Expenses Pre-Bonus Result Net Income GEL mln GEL mln 140 80 +182% 75.4 +160% 119.2 70 120 60 100 50 80 40 60 26.8 45.9 30 40 20 20 10 0 0 2006 2007 2006 2007 Page 6 April 2008 www.bog.ge/ir

Composition of the Balance Sheet Liabilities & Shareholders’ Equity Assets, +146% y-o-y GEL mln 2,981 +146% GEL mln 3,000 +146% 2,981 3,000 188 1,362 CIB +138% y-o-y 674 415 2,500 2,500 1,684 RB +66% y-o-y 342 CIB +104% y-o-y 795 2,000 2,000 +7% y-o-y WM 70 Ukraine NMF 268 RB +135% y-o-y 2,422 628 1,500 1,500 WM +99% y-o-y 1,213 1,213 44 108 560 836 CC NMF CIB 66 -3 283 1,000 694 1,000 Ukraine NMF CIB RB 220 206 390 WM RB 838 65 268 Ukraine WM 0 224 22 202 CC 224 500 22 500 Ukraine 55 0 67 492 560 375 278 0 0 YE 2006 YE 2007 YE 2006 YE 2007 Other Assets Property, Equipment & Intangible Assets Cash & Equivalents Loans & Advances To Credit Institutions Client Deposits Borrowed Funds Other Liabilities Equity Loans To Clients, Net Loans & Advances To Credit Institutions Equity Other Liabilities Borrowed Funds Client Deposits Loans To Clients, Net Property, Equipment & Intangible Other Assets Cash & Equivalents Page 7 April 2008 www.bog.ge/ir

Diversified Loan Book... Gross Loans, YE 2007 (+141% y-o-y) Gross RB Loans excluding UBDP, YE 2007 (+129% y-o-y) RB & WM Account for 46% of Gross Loans excluding UBDP UBDP Legacy Retail Loans GEL 226.4 mln GEL 27.9 mln Consumer Loans (+4% y-o-y) GEL 119.6 mln Card Overdrafts & (+142% y-o-y) Other RB Loans Credit Card Balances GEL 189.3 mln GEL 63.1 mln RB (+203% y-o-y) (+1536% y-o-y) CIB GEL 644.0 mln GEL 807.2 mln (+129% y-o-y) POS Loans (+105% y-o-y) GEL 61.3 mln Mortgage Loans (+176% y-o-y) Car Loans GEL 180.7 mln GEL 37.1 mln (+184% y-o-y) (+280% y-o-y) Micro Loans GEL 154.4 mln (+54% y-o-y) WM GEL 44.2 mln (+96% y-o-y) Total Gross Loans Total Gross RB Loans GEL 1,721mln GEL 644.0 mln Gross CIB Loans excluding UBDP, YE 2007 (+105% y-o-y) Gross WM Loans excluding UBDP, YE 2007 (+96% y-o-y) Other GEL 87.8 mln Other WM Loans (+94% y-o-y) Pharmaceutical & Healthcare Car Loans GEL 1.9 mln GEL 11.3 mln GEL 3.0 mln (-57% y-o-y) (+57% y-o-y) SME (+33% y-o-y) GEL 174.4 mln (+50% y-o-y) Industry & State GEL 75.4 mln (+126% y-o-y) Construction & Real Estate Consumer Loans Trade GEL 102.5mln GEL 130.0 mln GEL 16.4 mln (+51% y-o-y) (+84% y-o-y) (+834% y-o-y) Mortgage Loans GEL 22.8 mln (+32% y-o-y) Fast MovingConsumer Goods Energy GEL 112.5mln GEL 113.0 mln (+1065% y-o-y) (+112% y-o-y) Total Gross WM Loans Total Gross CIB Loans GEL 44.2 mln GEL 807.2 mln Page 8 April 2008 www.bog.ge/ir