Capturing Growth Opportunities Investor Presentation: 1Q15 results - PowerPoint PPT Presentation

Capturing Growth Opportunities Investor Presentation: 1Q15 results www.bogh.co.uk May 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 May 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 May 2015

BGH | Shareholder structure and share price BGH shareholder structure As of 31 March 2015 Scandinavia 7% Unvested and unawarded shares for management and BGH has been included in the Others employees 19% 3% FTSE 250 and US/Canada Vested shares held by FTSE All-share Index Funds 27% management and employees 3% since 18 June 2012 UK/Ireland 41% 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 118% since Average daily trading volume premium listing 1 1,046 9,500,000 10,000,000 26 9,000,000 24 8,000,000 22 GBP US$ US$ millions 7,000,000 20 6,000,000 5,300,000 18 5,000,000 16 4,000,000 14 12 3,000,000 2,000,000 10 2,000,000 950,000 8 1,000,000 21 0 Average daily trading volume 30-Sep-04 07-May-15 BGEO LN GDR 2011 2012 2013 2014 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 7 May 2015 page 4 2 Market capitalisation for Bank of Georgia Holdings PLC, the Bank’s holding company, as of 7 May 2015, GBP/USD exchange rate of 1.5245 May 2015

BGH at a glance Group Structure Banking Business Investment Business GGU Water utility and hydro Retail Corporate Healthcare Real Estate Utilities Other Banking Legacy Banking Business (GGU) Investments Banking Business Businesses #1 Corporate Bank in Georgia P&C #1 Healthcare Major player on the #1 Real Estate company #1 Retail Bank in Georgia Insurance company in Georgia market in Georgia Data before Privatbank integration: • 5k clients • 1.5mln retail clients • • Revenue of GEL GEL 2,381.3mln loans • 2 completed projects and 4 • Provides water and Leasing • 219 branches • GEL 1,341.8mln client deposits 52.9mln in 1Q15 under construction wastewater services • 554 ATMs • EBITDA of 10.1mln • Total sales of 1,346 to 1.4mln people (1/3 • Payment 2,245 Express Pay terminals appartments US$112.9mln of Georgia) • 6,537 POS terminals Services • Operates 3 hydro since 2011, of which Healthcare services • 817,445 Express cards US$57.1 mln to be • 39 healthcare facilities facilities with • 1.2mln cards IB recognised upon • 2,140 beds 143MW capacity • Investment GEL 2,639.8mln net loans • Acquisition of 25% completion of ptojects • Over 2/3 of population • Management GEL 1,874.3mln client deposits • 99% sale in completed shareholding with an covered BNB Privatbank data: projects • Market share of option to acquire • • 424k mln retail clients Wealth management, research, • 70% pre-sales for on-going additional 24.9% 22.0% by beds • 72 branches advisory, brokerage, private equity • 2014 EBITDA of 4 projects • • 376 ATMs AUM of GEL 1,213.8mln Plans to divest • Total BOG mortgages sold GEL51.6mln 1 • • 1,608 POS terminals WM client deposits GEL 913.3mln Health insurance from BNB GEL 63.6mln • • 35.9% market share 0.9mln cards • • Insuring 257k people GEL 289.5 mln loans • GEL 371.5 mln deposits www.bogh.co.uk 1 Per GGU management accounts, neither audited or reviewed by auditors or Bank of Georgia page 5 May 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 with min. 20% IRR ROE c.20%  ROAE of 19.8% in 1Q15 2 3 Growth c.20% and partial or full exit of 20% 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 20.8% as of 31 Mar 2015 3 value through capital commitments Underpenetrated Retail Capital Allocation  EBITDA potential of Banking Sector Provides selective investments (GELm) 3  Aiming 20% growth in retail banking Room for Further Growt 1 in Georgia, which at least GEL60m 29.7% 11.7% business have a well defined (c.US$30m) in 3-4 Growth c.20%  24.6% y-o-y real growth excluding 554 years exit path 487 19.6% Privatbank as of 31 Mar 2015  Clear exit path 21.8% 21.0% See annex for Chairman and CEO speech for Retail Corporate Retail Loans / Corporate Loans / more information on our investment approach Banking Banking GDP GDP External corporate RoAE indebtedness Target Current contribution Current contribution Target   Profit Contribution c.80% c.20% 1Q15: GEL 59m or 94% 1Q15: GEL 3m or 6% Ongoing Dividends At the 2015 AGM the Board intends to  Aiming for at least 3 special  Recurring: linked to recurring profit recommend an annual dividends in next 5 years, from banking business dividend of GEL 2.10 per representing at least 50% of regular share,  Aiming 25-40% dividend payout ratio dividend from banking business a 5.0% y-o-y increase Note 1: Ratios calculated based on NBG Data as at 31 December2014. www.bogh.co.uk Note 2: Pro-forma, excluding the acquisition of Privatbank and allocation of US$ 30mln capital earmarked for Banking Business and held at the holding company page 6 May 2015 Note 3: Tier I ratio is calculated under Basel 1 and Pro-forma implying allocation of US$ 30mln capital earmarked for Banking Business and held at the holding company.

BGH | Robust corporate governance compliant with UK Corporate Governance Code Board of Directors of Bank of Georgia Holdings PLC 7 non-executive Supervisory Board members; 7 Independent members, including the Chairman and Vice Chairman • Neil Janin , Chairman of the Supervisory Board, Independent Director • Kim Bradley , Chairman of Risk Committee, Independent experience: formerly director at McKinsey & Company in Director Paris; formerly co-chairman of the commission of the experience: Goldman Sachs AM, SeniorExecutive at GE French Institute of Directors (IFA); formerly Chase Capital, President of Societa Gestione Crediti, Board Manhattan Bank (now JP Morgan Chase) in New York Chairman at Archon Capital Deutschland and Paris; Procter & Gamble in Toronto • Kaha Kiknavelidze , Independent Director • Irakli Gilauri , Group CEO experience: currently managing partner of Rioni Capital, experience: formerly EBRD banker; MS in banking from London based investment fund; experience: previously CASS Business School, London; BBS from University of Executive Director of Oil and Gas research team for UBS Limerick, Ireland • David Morrison , Chairman of the Audit Committee, • Tamaz Georgadze , Independent Director Vice Chairman of the Supervisory Board, Independent experience: Partner at McKinsey & Company in Berlin, Director Founded SavingGlobal GmbH, aide to President of experience: senior partner at Sullivan & Cromwell LLP Georgia prior to retirement • Bozidar Djelic , Independent Director experience : EBRD’s ‘Transition to Transition’ senior • Al Breach , Chairman of the Remuneration Committee, advisory group, Deputy Prime Minister of Serbia, Independent Director Governor of World Bank Group and Deputy Governor of experience: Head of Research, Strategist & Economist at EBRD, Director at Credit Agricole UBS: Russia and CIS economist at Goldman Sachs www.bogh.co.uk page 7 May 2015