Capturing Further Growth Opportunities Investor Presentation: 4Q14 - PowerPoint PPT Presentation

Capturing Further Growth Opportunities Investor Presentation: 4Q14 and FY14 results www.bogh.co.uk February 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 February 2015

Contents Bank of Georgia Holdings PLC | Overview Bank of Georgia Holdings PLC | 4Q14 and FY14 Results Overview and Analysis Business Segment Discussion Georgian Macro Overview Appendices www.bogh.co.uk page 3 February 2015

Shareholder structure and share price BGH shareholder structure As of 31 Dec 2014 Scandinavia 8% BGH has been included in the US/Canada 28% Others FTSE 250 and 9% Unvested and unawarded shares FTSE All-share Index Funds for management and employees 4% since 18 June 2012 UK/Ireland 49% Vested shares held by management and employees 2% Note: Bank of Georgia Holdings PLC (BGH) (LSE: BGEO) is a UK- incorporated holding company of JSC Bank of Georgia x62.8 growth in Average daily trading volume Share price performance market capitalisation Up 172% since premium listing 1 9,500,000 10,000,000 Market capitalisation 2 GBP 9,000,000 US$ millions 1,318 8,000,000 26 7,000,000 24 US$ 5,300,000 22 6,000,000 20 5,000,000 18 4,000,000 16 3,000,000 2,000,000 14 2,000,000 950,000 21 12 1,000,000 10 0 8 30-Sep-04 31-Dec-14 Average daily trading volume 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 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 13 February 2015 page 4 February 2015 2 Market capitalisation for Bank of Georgia Holdings PLC, the Bank’s holding company, as of 13 February 2015, GBP/USD exchange rate of 1.5395

BGH at a glance Group Structure Banking Business Investment Business GGU Water utility and hydro Retail Corporate Healthcare Real Estate Utilities Legacy Banking Banking Business (GGU) Investments Business P&C #1 Corporate Bank in Georgia Major player on the #1 Retail Bank in Georgia #1 Healthcare #1 Real Estate Insurance market company in Georgia company in Georgia • 1.5mln retail clients • 6k clients • Leasing 219 branches • GEL 2,161mln loans • Revenue of GEL • 2 completed • Provides water and • 523 ATMs • GEL 1,186mln client deposits projects and 4 under wastewater services 189.7mln • 6,320 POS terminals Payment • EBITDA of 37.8mln construction to 1.4mln people (1/3 • 1.2mln cards Services • Total sales 1,327 of Georgia) • 721,909 Express cards • Operates 3 hydro apartments worth • Healthcare services 2,239 Express Pay terminals IB facilities with US$111.2mln since • • 39 healthcare facilities GEL 2,067mln net loans Investment 143MW capacity 2011 • • 2,140 beds GEL 1,350mln client deposits Management • 99% sale in • Acquisition of 25% • Over 2/3 of population BNB shareholding with an completed project covered • 66% pre-sales for option to acquire • Market share of PrivatBank Georgia • Wealth management, research, additional 24.9% on-going 4 projects 22.0% advisory, brokerage, private equity • Total mortgages • 2014 EBITDA of • Plans to divest 436K retail clients • AUM of GEL 1,027.1mln GEL49.1mln 1 sold GEL 58.3mln • from BNB 92 branches • WM client deposits GEL 805mln Health insurance • 431 ATMs • Fee & comission income of GEL • 36.7% market share • 1,937 POS terminals 8.8mln • Insuring 192k people • 904k cards www.bogh.co.uk 1 Per GGU management accounts, neither audited or reviewed by auditors or Bank of Georgia page 5 February 2015 Source: Company, financial and operating data is for FY 2014

Updating our strategy from 3x20 to 4x20 Updated Strategy – Georgia Focused Banking Group with an Investment Arm Current 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 with min. 20% IRR ROE c.20%  ROAE 1 of 19.0% in 2014 3 Growth c.20% and partial or full exit of 20% in max 6 years Dividend Policy:  Investment Approach Payout Ratio 25-40%   2 Strong internal cash generation One-off dividends from divestments over time  Opportunistic to support loan growth without Tier I c.20% Highly disciplined investments compromising capital ratios  Staging and small approach to unlock  Tier I ratio of 22.1% in 2014 2 value through capital commitments Underpenetrated Retail Capital Allocation  EBITDA potential of Banking Sector Provides selective investments (GELm) 3 Room for Further Growth 4  in Georgia, which at least GEL60m Aiming 20% growth in retail 31.4% 12.0% (c.US$30m) in 3-4 Growth c.20% banking business have a well defined years exit path 614  28.1% y-o-y growth in 2014 16.5% 473  Clear exit path 19.6% 19.0% Retail Loans / Corporate Loans / Retail Corporate GDP GDP Banking Banking External corporate RoAE 3 indebtedness Target FY 2014 FY 2014 Target   Profit Contribution c.80% c.20% GEL 219m or c.90% GEL 22mln or c.10% Ongoing Dividends At the 2015 AGM the Board intends to  Recurring: linked to recurring profit recommend an annual  Aiming for at least 3 special from banking business dividend of GEL 2.10 per dividends in next 5 years share ,  Aiming 25-40% dividend payout ratio a 5.0% y-o-y increase Note 1: BGH ROAE, calculated before one-off impairment of BG Bank in Ukraine in Q2 2014 and adjusted for results of placing of ordinary shares on 4 December 2014 www.bogh.co.uk Note 2: Tier I ratio is calculated under Basel 1 page 6 Note 3: based on FY2014 IFRS consolidated financial statements. February 2015 Note 4: Ratios calculated based on NBG Data as at 9M 2014.