INVESTOR PRESENTATION 2Q20 and 1H20 Financial Results 20 August 2020 www.bankofgeorgiagroup.com
DISCLAIMER – FORWARD LOOKING STATEMENTS 2 This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Bank of Georgia Group PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. By their nature, these forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, certain of which are beyond our control, include, among other things: macroeconomic risk, including currency fluctuations and depreciation of the Georgian Lari; regional instability; loan portfolio quality; regulatory risk; liquidity and funding risk; capital risk; operational risk, cyber security, information systems and financial crime risk; COVID-19 pandemic impact risk; climate change risk; and other key factors that indicated could adversely affect our business and financial performance, which are contained elsewhere in this document and in our past and future filings and reports of the Group, including the 'Principal risks and uncertainties' included in Bank of Georgia Group PLC's Annual Report and Accounts 2019 and in 2Q20 and 1H20 results announcement. No part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in Bank of Georgia Group PLC or any other entity within the Group, and must not be relied upon in any way in connection with any investment decision. Bank of Georgia Group PLC and other entities within the Group undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Nothing in this presentation should be construed as a profit forecast.
CONTENTS 3 RES RESPONS NSE TO TO COVI COVID-19 19 AN AND D TRAC TRACKI KING NG THE THE RECO RECOVE VERY RY GROU ROUP O OVE VERVIE RVIEW 2Q 2Q20 20 AN AND 1 D 1H2 H20 0 RES RESULTS DI LTS DISCU SCUSS SSION GEORG RGIAN AN MACRO MACRO OVE VERVIE RVIEW APP APPEN ENDICES DICES
GEORGIA MAINTAINS ITS POSITION AS A STELLAR PERFORMER 4 GLOBALLY IN TERMS OF COVID-19 RESPONSE GOVE OVERNME RNMENT T SA SAFETY FETY ME MEASU ASURE RES COVID OVID-19 ST STAT ATIST ISTIC ICS S IN IN GEOR EORGIA IA Source : www.stopcov.ge — Since lifting quarantine restrictions, daily new cases have remained very low at 18:00, 17 August 2020 1,341 231 (unlike in many other countries, including neighboring Azerbaijan and Armenia), at between one and 25 cases a day, mostly related to transit cargo drivers. Confirmed cases Active cases — Georgia reopened its borders to the citizens of five EU countries – Germany, France, Estonia, Latvia, and Lithuania – arriving via direct flights, and business travelers from all countries with the prior approval of the relevant government 7 , 597 249 agency. Under quarantine Under hospital — The Government maintains an informational website that provides live statistics on the spread of the virus in Georgia – www.stopcov.ge supervision COVID OVID-19 STATISTIC STATISTICS S IN IN GEORG EORGIA, IA, PE PERSON RSONS COVID OVID-19 CASES ASES PE PER R 100 00,00 000 PERSON 0 PERSONS Source: NCDC Source : Johns Hopkins, Wordometers 1,682 at 18:00, 17 August 2020 at 18:00, 17 August 2020 Daily cases 1,407 Neighboring countries Neighboring countries Total cases Daily recoveries 1,019 737 636 548 470 420 411 338 335 295 269 212 165 151 90 68 34 6 2/25/2020 3/2/2020 3/8/2020 3/14/2020 3/20/2020 3/26/2020 4/1/2020 4/7/2020 4/13/2020 4/19/2020 4/25/2020 5/1/2020 5/7/2020 5/13/2020 5/19/2020 5/25/2020 5/31/2020 6/6/2020 6/12/2020 6/18/2020 6/24/2020 6/30/2020 7/6/2020 7/12/2020 7/18/2020 7/24/2020 7/30/2020 8/5/2020 8/11/2020 8/17/2020 Kazakhs… Azerbaij… USA Armenia Israel Belarus Russia UK Italy Iran France Turkey Germany Ukraine Estonia Poland Lithuania Greece Georgia China
GEORGIA UNDERTOOK PRE-CAUTIONARY MEASURES BEFORE 5 PANDEMIC WAS DECLARED AND STRENGTHENED IT LATER CHRONOLOGY HRONOLOGY OF OF PAN ANDEM EMIC IC PRE REVE VENTIV TIVE E ME MEASU ASURE RES S IN IN GEOR EORGIA IA Source: NCDC and various official information Opening of Borders with Borders closed State of Curfew became 1 st part of State of some countries with Italy emergency declared effective restrictions eased emergency ended Borders closed with Iran 29 January 26 February 18 March 31 March 14 April 7 May 8 June 2 4 February 4 March 21 March 3 April 27 April 21 May 1 August Flights banned Internation Quarantine State of emergency with China al borders declared extended closed Hotels and First confirmed Tourism support case of Covid-19 plan announced restaurants opened
GOVERNMENT’S SUPPORT MEASURES - COVID 19 6 The Government announced a series of support measures designed to mitigate the negative economic impact of COVID-19. The Government’s revised 2020 budget document was approved by Parliament in June 2020. The revised budget incorporates the fiscal parameters agreed with the IMF, US$1.5 billion in donor funding and fiscal stimulus measures for businesses and households affected by the coronavirus pandemic. Business support is at 3.8% of GDP and social assistance is at 2.7% of GDP in 2020 revised budget document. SUP SUPPORT ORT TO TO BUSINES USINESSE SES S | | 20 2020 20 BUD UDGET ET SUP SUPPORT ORT TO TO IN INDIVID IVIDUAL UALS S | | 20 2020 20 BUD UDGET ET Support package for businesses amounts to GEL 1.889 billion , or 3.8% of Social assistance package for individuals amounts to GEL 1.375 billion , or 2.7% of GDP , and incorporates: GDP , and comprises: coverage of healthcare-related costs in respect of COVID-19; healthcare system preparedness improvement; one-off compensation for self- − GEL 330 million for credit-guarantee scheme employed persons who lost their jobs; six-month compensation for private sector − GEL 600 million for local currency liquidity resources allocation to employees who lost their jobs; income tax relief to businesses who retain workers commercial banks for six months; six-month compensation for vulnerable and large families, as well as − GEL 180 million for support to agriculture sector, and construction adults and children with disabilities; subsidies for three-month utility bill payments. sector, including interest rate subsidies on mortgage loans IN INTE TERNATIONAL RNATIONAL SUP SUPPORT ORT − GEL 115 million for support to tourism sector, including subsidies on loan interest payments and exemption of property tax payments for Georgian authorities have mobilised US$3.0 billion financing from the International hotels Monetary Fund (the “IMF”) and other international partners (US, EU, World Bank, − GEL 45 million for subsidies on flights and quarantine services support KFW, AFD, EBRD, EIB, ADB, etc.) to respond effectively to the COVID-19 pandemic associated economic crisis. Of this funding, US$1.5 billion is earmarked for the − GEL 600 million additional VAT refund for businesses public sector and US$1.5 billion for the private sector. − GEL 20 million for various support measures The IMF’s financing is c.US$400 million, of which US$200 million was already − With the support of local banks, legal entities were given the disbursed to the budget. opportunity of loan restructuring Source: MOF
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