Bank of Georgia : 2Q21 and 1H21 Results Presentation

INVESTOR PRESENTATION

2Q21 and 1H21 Financial Results

17 August 2021

www.bankofgeorgiagroup.com

DISCLAIMER - FORWARD LOOKING STATEMENTS

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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 Lari; regional and domestic instability; loan portfolio quality risk; regulatory risk; liquidity risk; capital risk; financial crime risk; cyber-security, information security and data privacy risk; operational 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 presentation 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 2020 and in 2Q21 and 1H21 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

COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS

GROUP OVERVIEW AND STRATEGY

2Q21 AND 1H21 RESULTS

GEORGIAN MACRO OVERVIEW

APPENDICES

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COVID-19 STATISTICS IN GEORGIA		4

COVID-19 STATISTICS IN GEORGIA

Georgia now has sufficient vaccine supplies (Pfizer, Sinovac, Sinopharm and AstraZeneca). The government plans to vaccinate around 60% of adult population by the end of 2021.

	Source: www.stopcov.ge,
	NCDC at 14:30, 16 August 2021
484,254	52,141
Confirmed cases	Active cases
425,651	806,681
Recovered	Total administered
	vaccine doses

COVID-19 STATISTICS IN GEORGIA, 000' PERSONS

600	Source: NCDC															6
at 14:30, 16 August 2021
500																5
400																4
300																3
200																2
100																1
0	Mar-20Apr-20May-20					Oct-20			Jan-21	Feb-21	Mar-21	Apr-21				0
Feb-20	Jun-20	Jul-20	Aug-20	Sep-20	Nov-20	Dec-20	May-21	Jun-21	Jul-21	Aug-21

Total cases (LHS)		Total recoveries (LHS)		Daily new cases (RHS)

CUMULATIVE VACCINATIONS, 000'

		Source: NCDC, ourworldindata
		16 August 2021
900		20.0% of Georgia's adult population has received at least one dose of a				900
800					800
	COVID-19 vaccine, while 8.4% of adult population is fully vaccinated.
700		Vaccination process significantly accelerated since the end of July 2021, and if				700
600					600
	that pace continues, we expect around 46% of adult population to be
500					500
	vaccinated with at least one dose by the end of September 2021, on track with
400		the government's target.				400
300						300
200						200
100						100
0							0
	4-Apr-2110-Apr-2116-Apr-2122-Apr-2128-Apr-214-May-2110-May-2116-May-2122-May-2128-May-213-Jun-219-Jun-2115-Jun-2121-Jun-2127-Jun-213-Jul-219-Jul-2115-Jul-2121-Jul-21
29-Mar-21	27-Jul-21	2-Aug-21	8-Aug-21	14-Aug-21

COVID-19 ACTIVE CASES PER 100,000 PERSONS

2,500	Source: Johns Hopkins, Worldometers
2,000	at 14:30, 16 August	2021												1,921
1,500																	1,404
1,000														544	603	703
500							246	348	377	399	409	472	493
				213	234
19	23	37	64
0	Uzbekistan	Belarus	Ukraine	Germany	Italy	Azerbaijan	Armenia	Greece	Russia	Estonia	Poland	Lithuania	Turkey	Israel	Kazakhstan	Iran	Georgia	UK

STRONG ECONOMIC GROWTH IN 2Q21

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REAL GDP GROWTH EXCEEDING 2019 LEVEL

Source: Geostat

Real GDP growth in 1H21:

• 12.7% y-o-y

70%					5.7% compared to 1H19
60%
50%							44.8%
40%
30%							20.8%	25.8%
							18.7%
20%
								8.8%	9.5%
						4.0%
10%
				-3.0%
0%
	-7.0%		1.2%
-10%					-5.1%
		-11.5%
-20%
-30%				Jan	Feb	Mar	Apr	May	Jun
				Real GDP growth, 2021 vs. 2020		Real GDP growth, 2021 vs. 2019

• COVID-19pandemic-related mobility restrictions caused GDP to contract by 6.2% in 2020 and by 4.5% in 1Q21
• With restrictions gradually eased, recovery gained impressive momentum in the second quarter of 2021, with real GDP up 29.8% y-o-y and up 12.6% compared to the second quarter of 2019 (pre-pandemic)
• Overall, real GDP growth during the first half of 2021 was 12.7% y-o-y, exceeding the first half of 2019 pre-pandemic level by 5.7%
• Robust growth in remittances and exports, and faster than expected rebound in tourism supported the recovery along with the fiscal stimulus

In the first half of 2021:

• Exports were up 25.2% y-o-y and up 5.3% compared to the first half of 2019
• Remittances were up 40.8% y-o-y and up 34.4% compared to the first half of 2019
• Tourism revenues accounted for c.21% of 2019 level, with tourism arrivals accelerating since April 2021