October 2010

GROWTH AT THE RIGHT PRICELSE: BGEO / GSE:GEB

JSC Bank of Georgia investor presentation

VTB Capital Investment Forum Russia Calling

October 5-7, 2010, Moscow

October 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). June 2010 YTD market share gain 2.1%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. Number of Retail Clients 714,400, Number of Branches 137, ATMs 387Leading corporate bank with approximately 88,100+ legal entities and over 164,800+ current accountsLeading wealth management, insurance, brokerage, leasing and card-processing services providerBanking operations in Ukraine (BG Bank) and Belarus (BNB) account for less than 10% of BoG’s consolidated total assets The only Georgian entity with credit ratings from all three global rating agencies

S&P: ‘B/B’ – at the sovereign ceiling; Fitch Ratings: ‘B+/B’; Moody’s: ‘B3/NP (FC)’ & ‘Ba3/NP (LC)’Listed on the London Stock Exchange (GDRs) and Georgian Stock Exchange

Market Cap (LSE) US$ 438 mln as of 1 October 2010Approximately 95% free float

Issue of the first ever Eurobonds in GeorgiaBloomberg: BKGEO; 5 year, 9%, US$200 mln(US$ 50 mln bought back)B/Ba2/B (composite B+)

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

17.2% 19.0% 17.8%

27.9%

35.4% 32.9% 33.0% 35.1%

0%

10%

20%

30%

40%

2003 2004 2005 2006 2007 2008 2009 Q2 2010

BoG Market Share by Assets

Institutional Shareholders*Local Shares Held by Domestic and Foreign Retail ShareholdersManagement and Employees**

92.9%3.8%3.3%

Ownership Structure

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

October 2010

The Georgian Economy

October 2010 Page 4

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 2010F: US$11.5 billionGDP real growth rate 2009A: -3.9%GDP real growth rate 2010F: 6.0%GDP per capita 2010F (Nominal): US$ 2,610GDP per capita 2010F (PPP): US$ 4,971Budget Deficit 2010F: 6.3 % of GDPInflation rate 2010F: 6.0%External public debt / GDP 2010F: 36.0%Sovereign ratings:

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

Source: Government of Georgia/IMF/Bank of Georgia estimates

October 2010 Page 5

Strong economic growth before crisis … starting again?

GDP per capita

Gross Domestic Product

Source: National Statistics Office of Georgia

4.05.1

6.4

7.8

10.2

12.8

10.711.511.1%

5.9%

9.6% 9.4%

12.3%

6.0%

-3.9%

2.3%

-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)

2,610

4,971

919 1,188 1,484 1,7642,315

2,9212,450

2,966 3,2423,644

4,0384,664 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

October 2010 Page 6

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

Source: IMF, National Bank of Georgia

US$

2,520 2,610 3,850 5,1907,770 8,230 9,500 10,580

12,530 13,98016,680

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 T urkey Poland Hungary Estonia CzechRepublic

WesternEuropeaverage

(EU 15+)

US$

2,555 2,610 2,641 2,7372,984 3,012

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Bulgaria 2003 Georgia 2010F Turkey 2002 Romania 2003 Russia 2003 Serbia 2004

October 2010

Key Drivers of Economic Growth

Increased importance of Georgia as regional transportation and logistics hub with geopolitically important location for cross country trade and energy transit.

Export CAGR of 17% from 2003 to 2009; 33% y-o-y increase in 1H 2010. Net electricity exporter since 2007.

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.

Rapidly developing Financial sector with demonstrated resilience to crises (conservative regulation; No government bailouts) with high capital base to support the growth.

Page 7

Financial Services

Export Growth

LibertarianEconomy

RegionalHub

FDIs

October 2010 Page 8

Libertarian Economic Policies Kick-start ModernizationBribe payers index (% are not paying bribes)

Ease of doing business

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

Corruption and Red tape slashedCorruption significantly reduced, Transparency International ranked Georgia 7th out of 69 by Global Corruption Barometer98% of Georgians didn’t have to pay bribe in past year, according to International Republican InstituteGeorgia 11th out of 183 in the WB’s Ease of Doing Business (up from 112 in 2005)Customs code harmonized with EU; Capital controls abolished since 1990s

Source: Transparency International, the Heritage Foundation, World Bank 4

5

11

21

29

38

43

55

58

67

71

72

73

120

142

United States

UK

Georgia

Switzerland

Israel

Azerbaijan

Armenia

Romania

Belarus

EE Average

FSU Average

Poland

Turkey

Russia

Ukraine

54%

57%

86%

87%

96%

97%

98%

98%

98%

Azerbaijan

Armenia

Romania

Belarus

Poland

United Kingdom

Georgia

Turkey

United States

October 2010

Mining and quarrying, 0.8%

Public administration, 13.3%

Education, 3.9%

Transport & Communication, 10.8%

Manufacturing, 7.7%

Trade (Retail & Wholesale), 11.7%

Financial intermediation, 2.6%

Hotels and restaurants, 1.8%

Real estate, renting and business activities, 6.9%

Construction , 5.6%

Health, social and community work, 10.1%

Agriculture, hunting and forestry; fishing, 7.5%

Utilities & household processing, 4.6%

Regional HubBaku Tbilisi Ceyhan (BTC) oil export pipeline - operated by BP from Caspian Sea to Europe via the Turkish coast. 1.0 million bbl/day or circa 1.2% of the current World oil consumption (9% of the consumption by EU, 80% of aggregate consumption by Turkey, Romania, Bulgaria and Poland) is transported through BTC or railway; c. $4bln invested by BP Consortium;

Shah-Deniz (BTE) gas pipeline (South Caucasus pipeline) - 6.6 bcm/year operated by BP to transport gas from Caspian Sea to Turkey;

Iran-Azerbaijan-Georgia (IAG) gas pipeline – 3.5 bcm/yearWestern Route Pipeline (Baku Supsa) oil export pipeline - 5.75 mt/year operated by BP from Caspian Sea to European Markets through the Black Sea;Russia-Georgia-Armenia gas pipeline – 5.8 bcm/year

Free industrial zones created around Tbilisi, Poti (port), Kutaisi (second largest city). Tax rates in FIZ are largely 0%Two sea ports. Poti Sea Port privatized in December 2008 by Rakeen Group (UAE) to build infrastructure for operating Free Industrial ZoneTransportation Communication and Trade cumulative CAGR 2004-2009 of 9.4%

White White Stream Stream

(proposed(proposed))

Page 9

Upcoming ProjectsNABUCCO Project is to finish by 2015, and White Stream project is

flagged as “Priority Project” by EC

Baku-Akhalkalaki-Kars railway line - sanctioned in 2007 building railway to link Asia and Europe

LNG - Azerbaijan-Georgia-Romania-Hungary Black Sea liquefied natural gas export route will supply c.6- to 8-billion cubic meters of liquefied Azerbaijani natural gas per year to Europe via Black Sea tankers

GDP Breakdown

22.5%

October 2010

Export Growth

Page 10

WTO member since 2000; No quantitative restrictions on trade; As of November 2007 Georgia has entered into a FTA with Turkey

One 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-free. US-Georgia charter on strategic partnership envisions an update of Bilateral Investment Treaty, expansion of Georgian access to the GSP and the possibility of entry into Free Trade Agreement

Export growth of 33% y-o-y 1H 2010 driven by exports of main export items: agricultural products, ferroalloy, precious metals, aircraft, rail car, vessels, fertilizers and machinery

Significant investments made in export oriented companies: import of capital goods amounted at c.13% of GDP from 2004 to 2009

Rapidly growing tourism sector – c.US$1.4B of donor money earmarked for investments in infrastructure. 2010 a record year in number of tourists visiting Georgia

Huge untapped hydro-power resources – only 18% of Georgia’s hydro potential of 50 GWh is being utilized; 1,200 MW transmission line to Turkey will become operational in 2013 which will significantly boost export potential to Turkey

Electricity Export/Import

Number of tourists

Source: National Statistics Office of Georgia, Ministry of Energy of Georgia

'000

1,950

1,500 1,290

1,052 983

560368 313

-

500

1,000

1,500

2,000

2,500

2003 2004 2005 2006 2007 2008 2009 2010F

Europe excluding Turkey CIS Turkey Other

mln kWh

1,256

(1,080) (1,288) (1,399)

(777)(434) (255)

23671 122 96

749679634

(39)(649)

(844)

(1,217) (1,277)

(681)

20030

494

1,217

(1,500)

(1,000)

(500)

-

500

1,000

1,500

2,000

2003 2004 2005 2006 2007 2008 2009 Aug-10

Export Import Net export

October 2010

US$

mln

1,8652,493

3,318

4,413

5,917

7,499

5,267

6,215

193492

421686

725900

849

1,178

1,6473,6883,182

1,289 2,187 2,552 3,199 3,940

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

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

US$

mln

98.3 261.7 942.0 1,092.6 658.0

2,982.41,698.4

1,423.4

(1,096.8)276.2176.7160.3

479.6351.01,508.1 2,291.8734.8

(353.9)(383.8) (1,175.3) (1,216.5)(709.2) (2,912.3)(2,010.0)

-9.5%

1.6%5.6%

3.2%7.7% 8.6%

-6.9%

-19.8%

-9.6%

-22.8%

-15.1%-11.1% -11.3%

7.9%5.5%

14.7%

-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 11

Trade Structure

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, Ministry of Finance of Georgia

BoG Forecasts for 2010

October 2010 Page 12

FDIs and Donor AssistanceNet remittances

FDI Inflows

Source: National Statistics Office of Georgia

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

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.

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 disbursed

In addition:

Approved access to US$1.2 bln under SBA by IMF until 2011

U.S. Committed US$ 124 mln investment in energy infrastructure development (February 2010)

US$70 million from ADB for infrastructure repairs

October 2010

Financial Intermediation

* Includes only loans to households

Prudent Regulation Ensuring Financial StabilityHigh Regulatory Capital Requirement: Top 5 Banks average Tier I capital adequacy ratio (NBG standards)– 14.2%, Bank of Georgia – 15.8% (BOG standalone BIS Tier I Capital adequacy ratio 24.6%)

High level of liquidity requirements from NBG at 30% of Liabilities, Bank of Georgia 34.8%

Resilient Banking SectorDemonstrated strong resilience towards both domestic and external shocks without single bank going bankrupt

No nationalization of the banks has occurred, no government bail-out plans have been required, no Government ownership since 1995

Excess liquidity and excess capital that has been accumulated by the banking sector to enable boosting the financing of the economic growth

Very low leverage of population with Retail Loans below 10% of GDP with and Total Loans at c. 30% of GDP resulted in contained number of defaults during the global crisis (Average LLP by BoG standalone as of end Q2’10 at c. 7%)

Bank debt to GDP

22.3 24.3 28.9 33.141.5 45.7 47.0 47.3 49.5

67.976.0 76.9

90.4

114.6

186.0

-

20

40

60

80

100

120

140

160

180

200

Arm

enia

Azerbaijan

Georgia

Turkey

Rom

ania

Bulgaria

Russia

Poland

Belarus

Kuw

ait

Bahrain

Ukraine

UA

E

USA

*

EU*

Banking sector assets

GEL mln

389 522 616 893 1,353 1,860 1,699 2,372731 900 1,6452,585

4,4255,455

4,5245,202

216 275287

749

1,430

1,5502,069

2,271

-

2,000

4,000

6,000

8,000

10,000

12,000

2003 2004 2005 2006 2007 2008 2009 2010 YTDCash Net Loans Other Assets

1,336

8,2938,865

7,208

4,227

2,5481,697

9,846CAGR 33%

Page 13

October 2010

Management target for 2010

October 2010 Page 15

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

October 2010

Strategy

October 2010

Focus on restructuring of Ukrainian operations, with options varying from further scale down to divestingFocus on high margin, unattended SME sector in Belarus; 19.99% of equity interest in BNB sold to IFC in 1H 2010First stage of restructuring of equity investment business completed

Controlling stake in investment management company sold

Page 17

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

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%Both corporate and retail lending stepped up in Georgia, Corporate loans up 15.6% YTD and Retail loans up 15.2% YTDEmphasis on micro loans, SMEs, consumer loans and mortgages in Georgia

Focus on International operations

October 2010

Intention to pay dividends

October 2010 Page 19

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

October 2010

Governance

October 2010 Page 21

21 21

• 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, Independent Director• 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§ Hanna Loikkanen, East Capital - Advisor to Bank of

Georgia Supervisory Board.

• 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, Deputy CEO in charge of SB Real Estate; 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

October 2010

Q2 2010 results highlights

October 2010 Page 23

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%

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

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

2,980.22,907.83,186.83,258.93,154.3

3,400.73,147.7

3,471.9

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

October 2010 Page 24

Loan portfolio quality

NPLs, BoG Standalone

NPLs, ConsolidatedLoan quality under the following stress tests

Loan loss reserve, Consolidated

Domestic and international crises

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

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 m ln

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 NPLs declined 5.6% q-o-q to GEL 129.2 million, while BG Bank’(Ukraine) NPLs grew 45.6% q-o-q to GEL 41.9 million

8.1 9.7 12.022.7

35.910.9 11.3

61.4

75.4

69.2 58.917.2

30.123.9 28.6

32.1 44.6

70.367.654.546.3 67.4

22.4 41.6

41.1

51.3

3.8208.4%

554.4%

119.3% 109.3%102.6%

138.3%

99.3%

122.2%

118.8%169.1%

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

19.0

32.123.3

61.5

104.6

148.8139.8 140.0

168.9173.3

October 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

98.6 93.3107.8

134.4

163.1180.7

212.3

0.0

40.0

80.0

120.0

160.0

200.0

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

GEL mln

Page 25

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 93.3107.8

163.1180.7

212.3233.2228.4

229.4 174.1154.0

116.0

125.0145.7

142.9151.9

134.498.6

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

October 2010

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

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-0

9

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

1-Se

p-10

1-O

ct-1

0

US$

Page 26

Equity & Capital adequacy

BIS capital adequacy ratios, BoG Consolidated

NBG capital adequacy ratios, BoG StandaloneTotal Shareholder’s equity

Share price performance30 June 2010

BV/shareUS$11.24

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

Risk weighting of FX denominated assets will be increased to 175% from January 2010

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%

13.94%

16.3% 16.8% 15.9% 14.5% 13.59%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 Proforma

Aug '10 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

YTD # of GDRs traded 17.0mlnVolume: US$ 190.1 mln

105.9% y-o-y67.7% YTD

October 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

Page 27

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 basis

Revenue Revenue as a function of loan book changeRevenue

Revenue, quarterly

+56.4%

+104.8%

-2.8% -2.2%

+2.7%

+79.2%

1,700

1,750

1,800

1,850

1,900

1,950

2,000

2,050

2,100

2,150

2,200

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

RevenueGEL

158.6 mln

RevenueGEL

162.3 mln

62.4% of Total Revenue 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 BC I 5.7%,

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

O the r2.7%,

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

q )

Revenue by segments Q2 2010GEL mln

49.8 55.8 58.9 56.4 52.4 49.5 48.9 46.0 45.3 51.7

10.210.2

12.9 10.911.1 11.6 12.0 12.6 10.3

10.91.41.9

1.71.4 2.2 1.8 2.3 2.3

2.22.2

13.210.4

9.4 14.98.8

7.1 6.5 5.7 7.38.8

6.57.8 5.0 7.8

7.1 10.7 9.5 10.7 10.89.0

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

Net Interest Income Net Fee & Commission Income

Net Income From Documentary Operations Net foreign currency related income

Net Other Non-Interest Income

82.575.977.4

79.380.681.786.685.986.181.1

October 2010 Page 28

CostsRecurring operating costs

Costs by segments

Employees

Recurring operating costs

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

+3.2% 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

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

+3.4% 1H y-o-y

+8.5% 1H y-o-y

-1.7% 1H y-o-y

O ther, 11.0%GEL 5.3 mln

(-16.8% q-o-q)Aldagi BCI, 8.0%

GEL 3.8 m ln(+13.9% q-o- q)

BNB, 4.2%GEL 2.0 mln

(+12.1% q-o-q )

BG Bank, 8.9%GEL 4.2 m ln

(+7.1% q-o-q)

BoG standalone ,

67.9%GEL 32.5 mln(+5.6% q-o-q)

October 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

Page 29

Operating profit, Provision expense

Profit (loss) before provisions/ NI

Net provision expense BoG standaloneNormalized net operating income

Net operating cash flow

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

+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

1H 2010 1H 2009

Cash flow from operating activitiesInterest received 199,514 188,779 Interest paid (83,179) (99,394) Fees and commissions received 33,641 32,133 Fees and commissions paid (6,349) (5,313) Net realised gains (losses) from trading securities 2,140 1,609 Net realised gains from investments securities - 307 Net realised gains from foreign currencies 15,747 11,368 Recoveries of loans to customers 15,354 8,213 Insurance premiums received 21,827 19,314 Insurance claims paid (13,449) (14,632) Other operating income received 10,580 12,939 Salaries and other employee benefits paid (50,519) (47,430) General, administrative and operating expences paid (32,216) (34,413) Net cash flow from operating activities 113,091 73,480 Growth rate 53.9%

unaudited

October 2010 Page 30

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%

54.9% 57.8% 56.1%59.1%

198.3%

65.3%

41.0%50.0%

60.7%

44.0%

50.8% 49.6%50.5% 58.0% 53.9%

38.3%43.9%

48.3%

43.0% 45.3% 45.9%44.8%

49.3%49.5%

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

October 2010 Page 31

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: 8.4% y-o-y Q2 2010; 6.0% 2010F; growth mainly driven by donor money inflows, export growth 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, NBG reserves still on high level at around USD 2 bln, exceeding M2 by 1.5 times

Strong operating leverage achieved, 16.4% q-o-q and 4.2% 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 activity picked up

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 at 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

YTD loan book growth funded through deposit inflows locally and internationally. WM Representative Office opened in London

Outlook for 2H 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

October 2010

Economy Annex

October 2010 Page 33

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%

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%Kazakhstan 258,077 3.9%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%

October 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$ 1,95 bn

1.3

1.01.1

0.8

0.8

0.8

1.7 1.7

1.5

0

500

1000

1500

2000

2500

2003 2004 2005 2006 2007 2008 2009 Mar '10 Aug-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 34

FX Reserves and Inflation

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$

October 2010 Page 35

Public debt: No burden to Public Finances

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 2003The 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

October 2010 Page 36

Fiscal indicators: The worst seems pastOverall fiscal balance of the state budget, 2004-2011F

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

October 2010 Page 37

Source: National Statistics Office of Georgia

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%

October 2010 Page 38

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

October 2010 Page 39

Contact

Irakli GilauriChief Executive Officer+995 32 444 109igilauri@bog.ge

Macca EkizashviliHead of Investor RelationsHead of Representative Office, London84 Brook St, London, W1K 5EH+44 203 178 4052ir@bog.ge