Bank of Georgia Investor Presentation September 2010 · JSC Bank of Georgia investor presentation Unicredit7th Annual Emerging Europe Conference September 13-14, 2010, London. September

September 2010

GROWTH AT THE RIGHT PRICELSE: BGEO / GSE:GEB

JSC Bank of Georgia investor presentation

Unicredit 7th Annual Emerging Europe Conference

September 13-14, 2010, London

September 2010 Page 2

Introduction to Bank of GeorgiaThe leading universal bank in Georgia

No.1 by assets (35%), (1) gross loans (33%), (1) client deposits (30%) (1) and equity (40%) (1)

Assets of GEL 3.5 bn (USD 1.9 bn), Net Loans of GEL 2.0 bn (USD 1.1 bn), Client Deposits of GEL 1.5 bn (USD 0.8) and Equity of GEL 649.3 million (USD 352.1 bn) Leading retail banking, with top brand, best distribution network and broadest range of services of any bank in Georgia

June 2010 March 2010 June 2009

Number of Retail Clients 714,400+ 732,900+ 695,000++

Retail Accounts 953,000+ 996,500+ 935,000+

Cards Outstanding 551,000+ 570,000+ 590,000+

Branches 137 140 140

ATMs 387 379 394

Leading corporate bank with approximately 88,100+ legal entities and over 164,800+ current accountsLeading card-processing, leasing, insurance, wealth management and brokerage services providerBanking operations in Ukraine and Belarus, with BG Bank (Ukraine) and BNB (Belarus) accounting for less than 10% of BoG’sconsolidated total assets The only Georgian entity with credit ratings from all three global rating agencies

S&P: ‘B/B’ – at the sovereign ceilingFitch Ratings: ‘B+/B’Moody’s: ‘B3/NP (FC)’ & ‘Ba3/NP (LC)’

Listed on the London Stock Exchange (GDRs) and Georgian Stock ExchangeMarket Cap (LSE) US$ 383 mln as of 10 September 2010Approximately 95% free float

Issue of the first ever Eurobonds in GeorgiaBloomberg: BKGEO; 5 year, 9%, US$200 mlnB/Ba2/B (composite B+)

(1) All data according to the NBG as of 30 June 2010

Ownership Structure

*through BNY Nominees Limited** includes GDRs held as part of EECP

GDR Holders*, 87.3%

Management & Employees**,

3.3%Local Shares

Held by Institutional

Shareholders, 5.6%

Local Shares Held by

Domestic and Foreign Retail Shareholders,

3.8%

September 2010

The Georgian Economy


Georgia’s Economy – Basic FactsArea: 69,700 sq kmPopulation: 4.4 million (as of January 1, 2009)Life expectancy: 76.5 yearsOfficial language: GeorgianLiteracy: 100%Capital: TbilisiCurrency (code): Lari (GEL)GDP (2009A): US$10.7 billionGDP real growth rate 2009A: - 3.9%GDP real growth rate 2010F: 4.5%GDP per capita 2009A (market): US$ 2,450GDP per capita 2009E (PPP): US$ 4,747Current account deficit 2009: US$ 1.3bn, 11.9% of GDPCurrent account deficit 2010F : US$ 1.5bn, 13.6% of GDPBudget Deficit 2009E: 9.3% of GDPBudget Deficit 2010F: 6.3 % of GDPInflation rate 2010F: 6.0%External public debt / GDP 2009A: 31.8%Sovereign ratings:

Fitch B+/StableS&P B+/Stable/B+

White White Stream Stream

(proposed)(proposed)


Selected macro economic data

CPI

HighlightsQuarterly net remittances

Quarterly tax revenue by categories

Source: National Statistics Office of Georgia, Government of Georgia

Q2 2010 Net remittances increased by 14.6% y-o-y

GDP real growth rate: 7-7.5% y-o-y Q2 2010F; 4.5% 2010F; growth mainly driven by donor money inflows and credit growth in1H 2010

VAT collection up by 20%+ y-o-y in recent months, 1H 2010 trade turnover up by 18% y-o-y to GEL 2.9 bln

1H 2010 Exports up by 40%1H 2010 Imports up by 13%

NBG reserves still on high level at around USD 2 bln, exceeding M2 by 1.5 times

475 433 497

259 252275

192171

188116

100105

8144

65

0

200

400

600

800

1000

1200

Q1 2008 Q1 2009 Q1 2010

GEL mln

VAT PIT CIT Excise Other

1,123 1,1301,000

184

225236

273

146

176

216228

182

202

0

50

100

150

200

250

300

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

US$ mln

6.2%

8.8%

11.0%

5.5%

3.0%

5.8%

3.7%

8.2%

9.2% 9.2%

10.0%

1.7%2.2%

2.8%

0%

2%

4%

6%

8%

10%

12%

2005 2006 2007 2008 2009 Mar-10 Jun-10

CPI (e-o-p) CPI (average)

September 2010

Economic growth is supported by

Source: Ministry of Economic Development, Ministry of Finance, State Statistics Department

Key drivers of economic growthExport-led growth with sufficient diversity

Increasing domestic consumption

Libertarian policies kick-start modernization Agricultural products, ferroalloy, aircraft, rail car, vessels and vehicles, fertilizers, machineryOil and gas pipelines - Russia-Georgia-Armenia pipeline; Shah-Deniz (BTE) gas pipeline; Iran-Azerbaijan-Georgia (IAG) gas pipeline; Baku-Supsa oil pipeline; Baku-Tbilisi-Ceyhan (BTC) oil pipeline; NABUCCO Project is to finish by 2014Grow potential revenue, tourism sector – c.US$1.4 bn donor money earmarked for investments in infrastructureBaku-Akhalkalaki-Kars railway line - sanctioned in 2007 building railway to link Asia and Europe;Huge untapped hydro-power resources – only 18% of Georgia’s hydro potential is being utilized; current export capacity of c. 150 MW

Tax and Tax rates slashed: Only six taxes, down from 21Flat personal income tax of 20% (15% by 2013)Corporate income tax 15%By 2012 no taxes on dividends, interest income or worldwide income

“Liberty Act”Referendum is required for an increase in tax ratesBudget expenditure capped at 30% of GDP (effective FY2012)Budget deficit capped at 3%, effective FY2012Public debt capped at 60% of GDP, effective FY2012

Red tape and import duties cutCustoms code harmonized with EU; Capital controls abolished since 1990sCorruption significantly reducedGeorgia 11th out of 183 in the WB’s Ease of Doing Business98% of Georgians didn’t have to pay bribe in past year, according to International Republican Institute

Consumer spending in 2008 - US$3.8bnestimated average household size of 3.5, far higher than in most CEE/CIS peersless than 18,000 households (out of the estimated total of 1.3 million) have mortgages

Consumer debt per capita stood at US$92 as of YE 2009 Debt /GDP under 30%; Retail loans/GDP under 10%

Free industrial zones created around Poti (port), Kutaisi (second largest city) etc. (Tax rates in zones largely 0%)Poti Sea Port privatized in December 2008 by Rakeen Group (UAE) to build infrastructure for operating Free Industrial Zone Net transfers from abroadIncreasing consumer spendingSustained government spending

Page 6


Source: National Bank of Georgia

GDP Breakdown, Q1 2010GDP breakdown: trade, logistics, services

Mining and quarrying, 0.7%

Manufacturing, 7.7%

Utilities & household processing, 5.5%

Construction , 4.2%

Hotels and restaurants, 2.2%

Transport & Communication,

11.5%

Financial intermediation, 2.7%

Real estate, renting and business activities,

3.6%

Public administration, 9.8%

Education, 4.9%

Trade (Retail & Wholesale), 13.7%

Agriculture, hunting and forestry; fishing,

8.6%Health, social and community work,

8.9%


GDP per capita is low, leaving much room to climbGDP per capita across countries

Source: IMF, National Bank of Georgia

US$

2,555 2,641 2,7372,921 2,984 3,012

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Bulgaria 2003 Turkey 2002 Romania 2003 Georgia 2008 Russia 2003 Serbia 2004

US$

2,520 2,450 3,850 5,1907,770 8,230

10,58012,530 13,980

39,000

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Ukraine Georgia China Belarus Romania Russia Poland Hungary Estonia Western Europeaverage (EU

15+)


Strong economic growth before crisis … starting again?

GDP per capita

Gross domestic product (GDP)

Source: National Statistics Office of Georgia

4.05.1

6.47.8

10.2

12.8

10.7 11.211.1%

5.9%

9.6% 9.4%

12.3%

4.5%

-3.9%

2.1%

-2

0

2

4

6

8

10

12

14

2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010F

USD billion

-5%

-3%

-1%1%

3%

5%

7%

9%11%

13%

15%

Nominal GDP (LHS) Real GDP Growth (RHS)

2,560

4,971

9191,188

1,4841,764

2,315

2,9212,450

2,966 3,2423,644

4,038

4,664 4,863 4,747

0

1,000

2,000

3,000

4,000

5,000

6,000

2003 2004 2005 2006 2007 2008 2009 2010F

USD

Nominal GDP per capita GDP per capita PPP

September 2010

US$

mln

98.3 261.7 942.0 1,092.6 658.0

2,982.41,698.4

1,423.4

(1,544.3)276.2176.7160.3

479.6351.0 1,508.1 2,291.8734.8

(353.5)(383.3) (1,174.6) (1,274.3)(709.5) (2,915.3)(2,008.7)

-13.6%

1.7%5.6%

3.1%7.7%

4.7%

-6.9%

-19.7%

-9.6%

-22.8%

-15.1%-11.1% -11.9%

7.9%5.5%

14.1%

-4,000-3,000-2,000-1,000

01,0002,0003,0004,0005,000

-25.0%-20.0%-15.0%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%

Donor inflows (DI) Total private capital inflows (TPCI) CAD CAD as % of GDP CAD+TPCI+DI as % of GDP

2009200820072006200520042003 2010F

Page 10

Current Account Deficit

Current Account Deficit

Exports and Imports*

*Export and Import of goods and services

Source: Central Bank of Georgia

Donor Inflows include both public and private sectors. Donor inflows in 2009 adjusted according to the banking sector foreign debt outflows

Source: Central Bank of Georgia, Minister of Finance of Georgia

US$

mln

1,865.32,492.8

3,318.1

4,412.9

5,916.9

7,499.0

5,266.8

6,153.7

3,800.53,199.2

2,551.62,187.5

1,288.5

3,182.43,688.4

1,646.9

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2003 2004 2005 2006 2007 2008 2009 2010F

Remittances Exports of goods & services CAGR ('04-09): 14% Imports of goods & services CAGR ('04-'09): 16%

165.8212.7 315.4

420.5755.4

917.9 766.5

950.0

September 2010

US$ 2.11 bn

US$1.48 bnUS$0.93 bn

US$ 1.36 bn

US$0.19 bn

US$0.49 bnUS$0.38 bn

US$ 2.20 bn

US$ 1.86 bn

1.3

1.01.1

0.8

0.8

0.8

1.71.7

1.5

0

500

1000

1500

2000

2500

2003 2004 2005 2006 2007 2008 2009 Mar '10 Jun-100.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0Fx reserves FX/M2

Page 11

…so FX reserves rose, while inflows funded investment

NBG Interventions

FX reserves, $ mln

Source: National Bank of Georgia, Ministry of Finance of Georgia

Inflation

2003-2009CAGR =48.6%

0

20

40

60

80

100

120

140

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Mar

-10

Jun-

10

-4-20246810121416

Real effective rate, Jan05=100 (LHS) CPI (e-o-p) CPI (average)

101.6115.7

106.0105.9 108.3

8.2%

2.2%

10.0%

9.2%9.2%

6.2%5.8%5.5%

11.0%8.8%

2.8%

3.7%

107.9

156.7 124.0 197.0(42.9)

(341.2)

(182.7)

(660.8)

432.4

(800.0)

(600.0)

(400.0)

(200.0)

0.0

200.0

400.0

600.0

2004 2005 2006 2007 2008 2009 Mar '10 Jun-10

0.0

0.5

1.0

1.5

2.0

2.5NBG Interventions Average Lari/US$

Record high for Georgia


FDI and Net remittances

Cumulative net remittances, 2007 – Q2 2010

Cumulative net FDI breakdown by origin, 2004 – Q2 2010

FDI breakdown by sectors, Q2 2010

Net remittances by countries, Q2 2010

Country US$ '000s % of totalRussia 1,717,761 60.8%USA 272,138 9.6%Greece 157,725 5.6%Spain 78,011 2.8%Ukraine 137,785 4.9%Turkey 62,096 2.2%UK 22,738 0.8%Israel 26,879 1.0%Kazakhstan 28,465 1.0%Germany 21,451 0.8%Other countries 298,575 10.6%Total 2,823,623 100.0%Source: National Bank of Georgia, National Statistics Office of Georgia

Russia, 57.4%

USA, 8.6%

Greece, 7.0%

Spain, 2.4%

UK, 0.7%

Israel, 1.4%Kazakhstan, 0.7%

Turkey, 3.6%

Ukraine, 5.1%

Germany, 1.5%Other countries ,

11.6%

3.9%258,077Kazakhstan

Country US$ ‘000s % of totalUK 770,488 11.6%UAE 613,245 9.2%Turkey 565,356 8.5%Netherlands 571,968 8.6%British Virgin Islands 472,830 7.1%

Azerbaijan 330,016 5.0%Czech Republic 341,867 5.1%Cyprus 275,657 4.1%Subtotal 4,199,503 63.2%Other countries 2,449,570 36.8%Total 6,649,073 100.0%

Energy sector, -1.3%

Financial sector , 6.1%

Agriculture, fishing, 1.2%

Industry, 21.3%

Construction, -4.1%

Hotels and restaurants, -7.6%

Other services, 14.3%

Real estate, 16.9%

Transports and communications,

53.0%


More money to flow…Net remittances

FDI Inflows


Unequivocal support from the West and IFIs with total financial pledge through 2011 of US$4.5 bln (42% of 2009 GDP). Approximately one third of the package is earmarked for financial sector. By end of FY 2010, cumulative donor commitment to Georgia under the Brussels pledge will total circa US$4.2 billion, with possibility of further upward adjustment. As of YE 2009, US$ 1.4 billion was disbursedIn addition:

Approved access to US$1.2 bln under SBA by IMF until 2011U.S. Committed US$ 124 mln investment in energy

infrastructure development (February 2010)US$70 million from ADB for infrastructure repairs

Liberal regulatory environment for foreign businesses, resulting in FDI averaging at 16% of GDP during past three years, with cumulative FDI (2004 – 2009) in country reaching 60.5% of GDP as of YE 2009.

Quarterly FDI inflows

Source: Government of Georgia presentation

483.0 450.0

1,190.0

2,015.0

1,564.0

658.0870

1,092.6

276.2

261.7

176.7160.3

942.0

658.07.0%

15.3%

19.8%

9.4%

12.2%

6.1%

7.7%

0

500

1,000

1,500

2,000

2,500

3,000

2004 2005 2006 2007 2008 2009 2010F

US$ mln

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Net FDI Donor inflows Net FDI as % of GDP

212.7315.4

420.5

755.4

917.9

766.5

950.04.2%

4.9%5.4%

7.4% 7.2% 7.2%

8.4%

0

100

200

300

400

500

600

700

800

900

1000

2004A 2005A 2006A 2007A 2008A 2009 2010F

US$ mln

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Net remittances (LHS) Net remittances as % of GDP (RHS)

173.

2

194.

0

75.7

196.

9

177.

2

114.

0

286.

2

134.

7

605.

4

537.

7

702.

9

489.

1

401.

5

421.

4456.

7

280.

7

306.

9

146.

0

178.

9

75.610

5.9

89.4

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Q2'07

Q3'07

Q4'07

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

US$ mln


Fiscal indicators: The worst seems pastOverall fiscal balance of the state budget, 2004-2009F

Fiscal revenue performance

Source: National Bank of Georgia, National Statistics Office of Georgia

-815.7

-1,258.6

-1,720.5

-1,390.1

-935.7-468.9

-4.5%

-7.3%

-9.4%

-6.6%

-4.8%

-3.4%

-2,000.0

-1,800.0

-1,600.0

-1,400.0

-1,200.0

-1,000.0

-800.0

-600.0

-400.0

-200.0

0.02006 2007 2008 2009 2010F 2011F

GEL mln

-10.0%

-9.0%

-8.0%

-7.0%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

Overall fiscal balance Overall fiscal balance as % of GDP

305.

5

263.

1 379.

4

308.

4

377.

9

358.

4

444.

3

352.

2

390.

5

346.

3

362.

5 502.

6

303.

5

319.

6

499.

5

407.

6

442.

5

415.

3

459.

2

316.

1 408.

1

367.

1

366.

8 447.

3

266.

4

266.

0

573.

2

314.

6

316.

8

293.

0 352.

1

320.

4 373.

0

328.

2

334.

9

446.

2

505.

1

290.

8

280.

6 348.

8

391.

9

386.

7

399.

4

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

January February March April May June July August September October November December

GEL mln

2007 2008 2009 2010


Public debt

External public debt service

Breakdown of public debt

Public debt as % of GDP, 2009

Georgia’s economy is quite unleveraged compared to other emerging market economiesGeorgia’s public debt is 40.8% of GDP in 2009 down from 58.0% in 2003Paris club rescheduling in 2001 and 2004The external debt is all multilateral or bilateral and significant share is highly concessionalThis explains why the government debt service burden is lowEurobonds debut issuance of US$500 mln in April 2008, maturity date 2013

Source: “The Georgian Economy Overview”, Government of Georgia Presentation,

Source: “The Georgian Economy Overview”, Government of Georgia Presentation, June 2009. Source: World Bank, International Monetary Fund0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Czech Republic

Estonia

Hungary

Kazakhstan

Latvia

Poland

Georgia

Slovak Republic

Lithuania

Ukraine

Bulgaria

Turkey

Russia

1.86 1.73 1.79

3.384.150.83 0.85 0.85 0.89

0.97

1.00

1.03

2.681.70

40.3%

32.8%

46.1%

40.8%

28.5%

52.5%

26.4%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2004A 2005A 2006A 2007A 2008A 2009A 2010F

US$ billion

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

External public debt Internal public debt Total public debt as % of GDP

103.8 110.6

152.2

102.1

136.7

169.3

118.7

8.8%

7.1% 7.3%

4.4%

5.20%

2.9%

3.4%

0

20

40

60

80

100

120

140

160

180

2004A 2005A 2006A 2007A 2008A 2009A 2010F

US$ mln

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

External debt service External debt service as % of budget revenue



WTO member since 2000No quantitative restrictions on tradeSimplified customs regime since August 2006, new customs code becomes effective in January 2007One of the two beneficiaries of the EU GSP+ Scheme in the CIS since 2006, granting local companies the right to export 7,200 categories of goods duty-freeAs of November 2007 Georgia has entered into a free trade agreement with TurkeyUS-Georgia charter on strategic partnership envisions an update of Bilateral Investment Treaty, expansion of Georgian access to the General System of Preferences and the possibility of entry into Free Trade Agreement

Import structure by country, Q2 2010

Import structure by product, Q2 2010

Export structure by country, Q2 2010

Export structure by product, Q2 2010

Trade structure

Russia, 3.9%

Kazakhstan, 2.4%

United Arab Emirates, 2.1%

China, 1.5%

Canada, 4.5%

Ukraine, 6.8%

Armenia, 9.5%

USA, 13.7%

Turkey, 17.0%

Azerbaijan, 14.9%

EU Countries, 13.8%

Other, 10.0%

Fertilizers, 5.1%

Equipment & Rail Cars, 1.7%

Oil & Gas, 5.6%

Pharmaceuticals, 1.8%

Ores, 4.8%

Cement, 0.1%Gems & Precious

Stones, 4.6%

Ferrous Metals, 32.4%

Others, 16.6%

Vehicles, 5.8%

Beverages, Spirits & Vinegar, 10.5%

Vessels & Aircraft, 10.8%

3.1%

EU Countries, 29.5%

Turkey, 18.2%

Azerbaijan, 8.7%

Ukraine, 11.1%

Others, 10.1%

Russia, 5.4%

China, 6.0%

USA, 4.1%

Kazakhstan, 1.3%

Armenia, 1.0%Turkmenistan,

1.4%

Ferrous Metal Products, 3.2%

Plastic, 3.7%

Sugar, 0.9%

Others, 34.1%

Oil & Gas, 18.1%

Apparel & footwear, 4.0%Ferrous Metals,

2.8%

Vehicles, 8.4%

Mechanical Equipment &

Electrical Machinery,

15.5%

Pharmaceuticals, 4.0%

Paper, 2.1%

Cereals, 3.3%

September 2010

Management target for 2010


Targeted financial performance 2010

Target net provision expense for 2010

AssumptionsTarget pre-provision profit for 2010

2010 real GDP growth of 2%* in Georgia2010 inflation rate of 3.2%* in GeorgiaThe GEL/US$ exchange rate remains stable during 2010Geo-political stability is sustained in the region

* IMF Estimates

Target net income for 2010

68.02

21.85

13.035.73

135.0

27.0

127.9

106.8

0

40

80

120

160

2007 2008 2009 2010F

GEL mln

Profit before provisions Goodwill Impairment associated with BG BankLosses related to Real Estate Losses related to investmentsOther

135.6

50.0

133.1128.7

17.0

0.0

40.0

80.0

120.0

160.0

2007 2008 2009 2010F

GEL mln

75.6

0.2

(98.9)

72.3

(100.0)

(80.0)

(60.0)

(40.0)

(20.0)

-

20.0

40.0

60.0

80.0

100.0

2007 2008 2009 2010F

GEL mln

September 2010

Strategy


Enhance operational efficiency through technological improvements:Temenos T24, core banking software, acquired in October ‘09 is in the process of implementation; Deployment of Softscape, talent management solution, and CRIF, credit scoring solution, is under way

Strategic objectives: grow at the right price

Wealth Management services launched in Israel, Ukraine and LondonDeposits from international clients reach GEL 100 mln in ’09, c. 8% of total depositsPremier Banking launched for the affluent client base supported by the exclusivity of Amex Card issuing and acquiring business in Georgia

More efficient

Deposit funding

Lending machine

Focus on International operations, Divesting of

non-core assets

Despite high rate of bank debt growth in ’05-’09, ample room for growth with total loans/GDP under 30%; retail loans/GDP under 10%Lending rates decreased from 16-18% to 14.5-16.5% as both corporate and retail lending stepped up in GeorgiaEmphasis on micro loans, SMEs, consumer loans and mortgages in Georgia

Scale down operations of BG Bank; leverage on corporate banking and brokerage to build trade finance business in Ukraine to capture growing (c.U$1 bn) trade between Georgia and Ukraine

Focus on high margin, unattended SME sector in Belarus; explore the possibility of third party investor, such as IFIs, in BNB First stage of restructuring of equity investment business completed

Controlling stake in investment management company sold

Strategic objectives for 2010: Cost control combined with Loan book growth

September 2010

Intention to pay dividends


The Bank intends to propose the establishment of a progressive dividend policy at the 2010 AGMThe intention is to recommend GEL 0.30 dividend per share in 2011 in respect of 2010 financial year performanceDividend payment is subject to management achieving 2010 financial targets outlined aboveThe Bank anticipates increasing the dividend payment in the future

The new dividend policy is to set dividend payments while taking into consideration the need to maintain proper balance between the ability to finance growth and preserving progressive dividend

The new dividend policy will serve to further increase capital management discipline as we consider investing in our growth going forwardEstimated dividend payout for 2010 performance - GEL 9.4 million

# of Shares outstandingIntention to pay dividends for 2010

25,202,00927,154,918

31,252,553 31,306,071

YE 2006 YE 2007 YE 2008 YE 2009

September 2010

Governance


24 24

• 7 non-executive SB members; non-executive Chairman

Supervisory Board

SB members• Neil Janin, Independent Director

experience: Director at McKinsey & Company in Paris; Co-chairman of the commission of the French Institute of Directors (IFA); Chase Manhattan Bank (now JP Morgan Chase) in New York and Paris; Procter & Gamble in Toronto.

• Ian Hague, Firebird Management LLC• Allan Hirst, Independent Director

experience: 25 years at Citibank, including CEO of Citibank, Russia; various senior capacities at Citibank

• Kaha Kiknavelidze, Independent Directorcurrently managing partner of Rioni Capital, London based investment fund; previously Executive Director of Oil and Gas research team for UBS

• Jyrki Talvitie, East Capital• David Morrison, Independent Director

experience: senior partner at Sullivan & Cromwell LLP prior to retirement

• Al Breach, Independent Director experience: Head of Research, Strategist & Economist at UBS: Russia and CIS economist at Goldman Sachs

• Chief Executive Officer and 9 Executive members of Management Board

Management Board

MB members• Irakli Gilauri, CEO; formerly EBRD banker in Tbilisi and London, MS from

CASS Business School, London• Giorgi Chiladze, Finance; formerly CEO of BTA Bank (Georgia);

Program Trading Desk at Bear Sterns, NYC• Archil Gachechiladze, Corporate Banking; formerly Deputy CEO

of TBC Bank, Georgia; Lehman Brothers Private Equity, London; MBA from Cornell University

• Avto Namicheishvili, Legal; previously partner at Begiashvili &Co, law firm in Georgia. LLM from CEU, Hungary

• Irakli Burdiladze, COO; previously CFO at GMT Group, Georgian real estate developer. Masters degree from Johns Hopkins University

• Sulkhan Gvalia, Risk; founder of TUB, Georgian bank acquired by BOG in 2004

• Murtaz Kikoria, acting CEO of BG Bank; formerly senior banker at EBRD; Head of Banking Supervision at the National Bank of Georgia.

• Mikheil Gomarteli, Retail Banking; 10 years work experience at BOG

• Nick Shurgaia, International Business; previously CEO of VTB Georgia, Senior Banker at EBRD, London; MBA from LBS

• Vasil Revishvili, Head of Wealth Management; previously Head of the Investment Risk Unit and Senior Investment Manager at Pictet Asset Management in London and Geneva. MS in Finance from London Business School

A move to classical two-tier board structure

September 2010

Q2 2010 results highlights


Assets

Corporate loan book breakdown, BoG Standalone

Loan book, grossTotal assets

Retail loan book breakdown, BoG Standalone

BG Bank, 9%GEL 201.0 mln

BNB , 2%GEL 41.8 mln

RB & WM, 45%GEL 966.0 mln

CB , 47%GEL 1,017.4

mln

FMCG, 13%

Energy, 11%

Industry & State, 12%

Construction & Real Estate, 17%

Other, 14%Pharmaceuticals and Healthcare,

2%Trade, 31%

Credit cards and overdrafts, 15%

Micro loans, 16%

Mortgage loans, 42%

Consumer and other, 27%

1,855.7 2,106.7 2,059.7 2,189.4 2,046.8 1,904.7 1,833.1 1,851.9 1,950.6 2,163.3

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

Gross loans

3,124.12,913.4

2,980.22,907.8

3,186.83,258.93,154.33,400.7

3,147.73,471.9

Gross loans grew 10.9% q-o-q, up 17.2% YTD and up 14.0% y-o-y

Standalone Gross loans grew 7.9% q-o-q , up 14.3% YTD and up 15.5% y-o-y

Retail gross loan book grew by 15.2% YTD and Corporate gross loan book grew by 15.6% YTD

The Balance Sheet growth since the beginning of the year in 1H 2010 resulted in 2.1% market share gainby assets, 1.1% market share gain by gross loans and 2.5% market share gain by client deposits

35% market share by assets, record high level

19.4% y-o-y 19.2% YTD11.1% q-o-q


Loan portfolio quality

NPLs, BoG Standalone

NPLs ConsolidatedLoan quality under the following stress tests

Loan loss reserve, Consolidated

Armed conflict with Russia in August 2008

17% devaluation of Lari against US$ in one day in November 2008

Political crisis in Georgia peak in Spring 2009

* Other NPLs include BNB and BG Bank

8.1 9.7 12.022.7

35.910.9 11.3

61.4

75.4

69.2 58.9

7.7

17.2

30.123.9 28.6

32.1 44.6

67.446.3 54.567.6 70.3

51.3

41.1

41.622.4

208.4%

554.4%

119.3% 109.3%

169.1%118.8%122.2% 99.3%

138.3%

102.6%

0

20

40

60

80

100

120

140

160

180

200

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

0%

100%

200%

300%

400%

500%

600%

RB &WM CB Other* NPL coverage ratio

39.6 44.4

129.0101.4

127.9147.7

166.3 167.0 173.3189.8

2.1% 2.1%

6.3%

5.0%

6.3%

7.8%

9.1% 9.0% 8.9% 8.8%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Loan loss reservesReserve For Loan Losses To Gross Loans, BoG Consolidated

GEL mln

136.8129.2

111.3

115.9118.7

87.464.3

23.332.119.0

7.4%

6.5%

7.5%

6.9%

6.4%

6.9%

4.7%

3.2%

1.3%1.7%

1.2%

7.0%

7.4%

2.0%

6.7%5.5%

4.9%

6.8%

1.9%

7.5%

0

20

40

60

80

100

120

140

160

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 20100%

1%

2%

3%

4%

5%

6%

7%

8%

NPLs % of Gross loans Loan loss reserve as % of gross loans

Bank of Georgia standalone NPLsdeclined 5.6% q-o-q to GEL 129.2 million, while BG Bank’(Ukraine) NPLsgrew 45.6% q-o-q to GEL 41.9 million

September 2010

912.0

795.1903.6

947.8

1,137.8 1,162.8

1,011.4918.6 913.3 945.6

0

250

500

750

1000

1250

1500

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

376.1

331.2

283.1280.4

319.8326.0

403.4

363.6

414.7450.8

0

100

200

300

400

500

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

76.5 81.670.4

98.793.3

107.8

131.4 163.1 180.7 212.3

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

Page 28

Liabilities

Borrowed funds

Client deposits

Retail banking deposits

Total Client deposits grew by 46.2% y-o-y in Q2 ‘10 (7.5% q-o-q

WM client deposits grew 96.9% y-o-y (17.5% q-o-q) in Q2 ’10

RB client deposits 59.3% y-o-y (8.7% q-o-q) in Q2 10

CB client deposits grew 31.8% y-o-y (4.2% q-o-q) in Q2 10

GEL 225 mln of borrowed fundsrepaid in 2009

Wealth Management deposits+96.9%

-21.6%+59.3%

363.6 403.4 326.0 319.8 280.4 283.1 331.2 376.1 414.7 450.8

652.7 681.5576.2 626.7 605.2 518.4

594.9 587.6656.1 683.5

76.581.6

70.4 98.7 93.3107.8

131.4 163.1180.7

212.3233.2228.4

229.4 174.1154.0

116.0

125.0145.7

142.9151.9

0

500

1,000

1,500

2,000

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

RB Client Deposits CB Client Deposits WM Client Deposits Other

1,326 1,395

1,202 1,1931,133

1,0251,183

1,2721,394

1,499

Record high

September 2010

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

1-Ja

n-09

1-Fe

b-09

1-M

ar-0

9

1-A

pr-0

9

1-M

ay-0

9

1-Ju

n-09

1-Ju

l-09

1-A

ug-0

9

1-Se

p-09

1-O

ct-09

1-N

ov-0

9

1-D

ec-0

9

1-Ja

n-10

1-Fe

b-10

1-M

ar-1

0

1-A

pr-1

0

1-M

ay-1

0

1-Ju

n-10

1-Ju

l-10

1-A

ug-1

0

US$

Page 29

Equity & Capital adequacy

BIS capital adequacy ratios, BoG Consolidated

NBG capital adequacy ratios, BoG StandaloneTotal Shareholder’s equity

Share price performance 30 June 2010 BV/shareUS$11.24

Risk weighting of FX denominated assets at 150% according to the National Bank of Georgia standards

746.7783.0

739.3 718.8 711.8 709.9 718.5

598.4611.7

649.3

300.0

600.0

900.0

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

25.2% 25.0%23.4%

21.7% 21.4%19.6%

32.5%

24.9%22.6%21.7%

24.7%

36.2%35.6%34.3%

26.5%25.3%

25.8%25.8%

34.9% 33.8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

18.3%

15.8%

18.2%

16.6% 16.4%17.8%

20.4%19.7%

17.7%

15.8%

16.3% 16.8% 15.9% 14.5%15.1% 15.5% 13.5% 17.4% 18.4% 21.2%

0%

5%

10%

15%

20%

25%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

September 2010

18.325.9

56.9

105.6 101.9 96.9

10.8

19.6

36.3

61.460.4

61.7

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

1H 2005 1H 2006 1H 2007 1H 2008 1H 2009 1H 2010

Net interest income Net non interest income

45.5

158.6162.3167.0

93.2

29.1

49.855.8 58.9 56.4 52.4 49.5 48.9 46.0 45.3

51.7

31.330.3 27.1 30.2

29.3 31.1 30.4 31.3 30.631.1

0

10

20

30

40

50

60

70

80

90

100

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

Net Interest Income Net Non-Interest Income

81.1 77.479.380.681.786.685.986.1

75.982.8

Page 30

Georgia accounts for 83.0% of total consolidated revenues, BG Bank 4.9% and BNB 3.6%

Positive consolidated operating leverage achieved(16.4% q-o-q basis and 4.2% y-o-y basis) as Revenue grew 9.1% q-o-q and Total Recurring Operating Costs lagged with 3.3% q-o-q growth.

Standalone Revenue grew 15.3% q-o-q while standalone Total Recurring Operating Costs grew by 5.6% q-o-q, achieving positive standalone operating leverage 8.4% on q-o-q and 1.8% on q-o-q baisis

Revenue Revenue by segments Q2 2010Revenue

Revenue, quarterly Composition of revenue Q2 2010

+56.4%

+104.8%

-2.8% -2.2%

+2.7%

BoG Standalone

83.0%,GEL68.7 mln(+15.7% q-o-

q)

Ukraine 4.9%,

GEL4.1 mln(+33.5% q-o-

q)

Belarus 3.6%,

GEL3.0 mln(+1.6% q-o-q)

Aldagi BCI 5.7%,

GEL4.7 mln(+4.4% q-o-q)

O ther2.7%,

GEL2.3 mln(-62.6% q-o-

q )

Net interest income 62.4%,GEL 51.7 mln

(+14.2% q-o-q)

Net income from documentary

operations 2.6%,GEL 2.2 mln

(-1.1% q-o-q)

Net foreign currency related

income 10.7%,GEL 8.8 mln

(+20.5% q-o-q)

Net fee and commision

income13.1%,GEL 10.9 mln(+5.2% q-o-q)

Net other non-interest income

11.2%,GEL 9.3 mln

(-14.3% q-o-q)

+79.2%


Revenue cont’d

Income from documentary operations

Net foreign currency related incomeNet fee & commission income

Other non-interest income

12.612.0

11.611.110.9

12.9

10.210.210.3 10.9

0

2

4

6

8

10

12

14

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

2.22.2

1.4

1.91.7

1.4

2.3

1.8

2.3 2.3

0

1

1

2

2

3

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

7.3

5.76.57.1

8.8

14.9

9.4

10.4

13.2

8.8

0

2

4

6

8

10

12

14

16

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

1.7 2.5 3.2 3.05.1 4.9

3.7 4.2 4.20.10.4 0.3

1.31.9 0.21.8

0.2

0.3

-0.4 -1.1 -0.5

0.61.9

4.7

1.4

1.03.6

3.7 3.0 4.4 4.4

4.6

1.6

1.3 1.6

0.21.9 0.2

0.2

-0.4

0.2

-3.4

0.3

3.3

-6

-4

-2

0

2

4

6

8

10

12

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

Net Insurance Income Brokerage Income Asset Management Income Realized Net Investment Gains Other

September 2010

8.53.2

(30.0)

(0.2) (0.3)

(106.8)

1.9(3.3)(1.9)(2.6)

(120.0)

(100.0)

(80.0)

(60.0)

(40.0)

(20.0)

0.0

20.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

Page 32

CostsRecurring operating costs

Net non-recurring income/(costs)

Employees

Recurring operating costs

Includes Goodwill impairment of GEL 68 mln

associated with BG Bank and Real estates mark down

25.7 27.3 28.423.1 22.0 23.2 22.3 22.5 23.4 25.6

18.721.6 21.3

24.922.7 23.1 22.6 24.1 22.9

22.2

0

10

20

30

40

50

60

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

Personnel Costs Other Recurring Operating Costs

44.5

48.9 49.6 47.944.6 46.3 45.0 46.6 46.3 47.8

3,056

3,619

3,853

2,741

2,692

2,665

2,669

2,674

2,825

2,968

824

836

842

786

757

707

617

621

393

279

4,926

5,911

6,196

4,977

4,964

4,914

4,798

4,781

5,048

4,911

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Group Consolidated BoG Standalone BG Bank

+3.2% y-o-y+3.3% q-o-q

11.0 13.4

30.4

53.045.2 49.0

1.71.8

19.5

40.345.8

45.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

1H 2005 1H 2006 1H 2007 1H 2008 1H 2009 1H 2010

Personnel costs Other recurring operating costs

24.2

94.191.0

93.3

49.9

18.7

September 2010

18.217.729.624.0

(4.5)

103.9

8.66.712.3 6.2

-40

-20

0

20

40

60

80

100

120

140

160

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

c

Page 33

Operating profit, Provision expense

Net provision expense BG Bank Standalone

Net provision expense BoG standaloneNormalized net operating income

Profit (loss) before provisions/ NI

Consolidated Net Normalized Operating Income (NNOI) increased 18.1% q-o-q up 2.1% y-o-y

Consolidated Net provision expenses ofGEL 13.1 mln in Q2 2010, GEL 7.4 mln in Q1 2010 and GEL 40.7 mln in Q2 2010 improved by 67.9% y-o-y

Bank of Georgia Standalone Net provision expensesdeclined by 79.1% y-o-y

Net Income for 1H 2010 was GEL 36.2 mln

.

Related to the armed conflict in August 200834.3

30.8 29.6

35.037.138.7

36.337.336.634.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

0.4 (1.3) 0.5

18.2

9.311.0

12.9

8.5

(1.6)2.0

(5.0)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

+18.1 q-o-q

32.4

(76.1)

26.436.8

(59.0)

(102.3)

36.8

8.7

33.740.5

45.1

34.0

5.1

31.9 28.3

2.6

16.8 19.5

(1.1) (4.3)

-120.0

-100.0

-80.0

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

Profit Before Provisions Net Income


Profitability & selected ratiosNet loans/Client deposits

Cost Income RatioNet interest margin (annualized)

Cost of funds

136.9%147.8%

160.6%168.7%

140.3%131.9% 127.5% 131.7%

170.6%174.4%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

8.0%8.5%9.1% 9.0% 9.1%9.3%

10.1%9.8%8.9%

8.1%8.3%

7.8%

8.9%9.1% 8.8%9.9%

9.8%9.0%

8.6%7.5%

8.6%8.0%

0%

2%

4%

6%

8%

10%

12%

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

Net Interest Margin, Group Consolidated Net Interest Margin, BoG Standalone

Net Interest Margin (NIM)improved from 8.0% in Q1 2010 to 8.3% in Q2 2010 as Cost of Funds declined

104.1

95.089.0

93.7

94.5

101.898.852.4

49.843.044.8

45.149.4

42.4

8.3%8.6%

7.8%8.5%8.3%8.3%7.2%

0

20

40

60

80

100

120

Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 20100%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Interest Income Interest Expense Cost of Funds

52.9%60.8%

90.0%

65.3%

198.3%

59.1%55.5%57.8%54.9% 53.9%58.0%50.5%

49.9%50.8%

44.0%

60.7%50.0%

41.0%

49.5%49.3%

44.8%48.9%48.1%46.5%

46.5%47.1%47.3%

0%

40%

80%

120%

160%

200%

Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

Cost/Income Ratio, ConsolidatedCost/Income Ratio, Bank of Georgia StandaloneCash Cost/Income Ratio, Consolidated


Operating environment in Georgia is improving and 2010 looks promising for Bank of Georgia:

Consumer confidence and economic activity is increasing with a 7.5% q-o-q and 46.2% y-o-y increase in client deposits in Q2 2010; Q2 2010 Net remittances increased by 14.6% y-o-y; GDP real growth rate: 7-7.5% y-o-y Q2 2010F; 4.5% 2010F; growth mainly driven by donor money inflows and credit growth in1H 2010; VAT collection up by 20%+ y-o-y in recent months, 1H 2010 trade turnover up by 18% y-o-y to GEL 2.9 bln, NBG reserves still on high level at around USD 2 bln, exceeding M2 by 1.5 times

Strong operating leverage achieved 16.4% on q-o-q and 4.2% on y-o-y basis driven by:

Improvement in NIM from 8.0% to 8.3%, as our cost of funds decreased from 8.6% to 8.3%, as a result of deposit rate cuts

Solid growth of higher yielding retail loan book

Increase of Net Interest Income as lending activities picked up

Cost of Funds down from 8.6% in Q1 2010 to 8.3% in Q2 2010

As a result Consolidated Cost/Income ratio decreased from 65.3% in Q1 to 55.5% in Q2 2010, standalone Cost/Income ratio decreased from 53.9% in Q1 2010 to 49.9% in Q2 2010

As of 31 July 2010, the outstanding Eurobonds maturing in February 2012 amounted to US$149 million, out of original US$ 200 million, in August 2010 the Bank has signed agreements for US$ 50 million 5-year credit facilities with EBRD

Loan book growth to be funded through deposit inflows locally and internationally. WM Representative Office opened in London

Management target for 2010

• The growth rate of balance sheet in Q3 lower than Q2 due to seasonality effect as business activities in July and August is usually low

• Growth expected to resume in Q4

• Higher yielding retail loan book expected to grow faster in 2nd half of the year

• Confident to deliver previously announced management target for 2010

We came out strong from the downturn and are well positioned to take advantage of our high liquidity and strong capital to achieve growth at the right price….

…..by implementing our strategy to become more efficient, deposit funded lending machine

Summary


This presentation contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to the implementation of strategic initiatives and other statements relating to our business development and financial performance.

While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, (1) general market, macroeconomic, governmental, legislative and regulatory trends, (2) movements in local and international currency exchange rates, interest rates and securities markets, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties and developments in the markets in which they operate, (6) management changes and changes to our group structure and (7) other key factors that we have 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, including those filed with the NSCG.

We are under no obligation (and expressly disclaim any such obligations) to update or alter our forward-looking statements whether as a result of new information, future events, or otherwise.

Caution Regarding Forward-Looking Statements


Contact

Irakli GilauriChief Executive Officer+995 32 444 [email protected]

Macca EkizashviliHead of Investor Relations+995 32 444 [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

Bank of Georgia Investor Presentation September 2010 · JSC Bank of Georgia investor presentation Unicredit7th Annual Emerging Europe Conference September 13-14, 2010, London. September