FACTSHEET FACTSHEET FACTSHEET FACTSHEET FACTSHEET. Georgia High Yield Factsheet. Subordinated Debt Contracts Issued By JSC Liberty Bank

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1 Jan-13 Jan-13 Mar-13 Apr Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Georgia High Yield Factsheet FACTSHEET FACTSHEET FACTSHEET FACTSHEET FACTSHEET $/US$ FitchRatings B / B /Stable Standard & Poor s B/B /Stable Ordinary Shares GSE: BANK BLOOMBERG: BANK GG ISIN:GE Market Data Current Price ($) Week High (18/02/2015) Week Low (22/07/2015) Ordinary Shares Issued (bn) 5.5 Ordinary Shares Outstanding, Net Of Treasury Shares (bn) 4.5 MCap ($ mln) 77.0 MCap (US$ mln) 31.0 Free Float (Including ESOP) As % Of Shares Outstanding 25.4% Free Float (US$ mln) 7.7 Majority Shareholder - Liberty Holding Georgia Ltd As % Of Shares Issued 58.2% As % Of Shares Outstanding 70.7% GDRs Reg S & 144A Common Shares/GDR 500:1 % Of Shares Outstanding Currently Converted Into GDRs 12.4% Common Dividend (2014) Yield 12.0% Common Dividend Payout Ratio (2014) 36.7% Convertible Preferred Shares Outstanding (mln) 6.1 Placement Price Per Convertible Preferred Share ($) 1.00 Convertible Preferred Dividend Yield/Placement Price 17.0% Share Price Performance Source: GSE, Bloomberg Key Financials & Ratios $ mln, unless otherwise noted Audited Audited Unaudited Growth in Consolidated, IFRS-based 2015 Total Assets 1,294 1,578 1, % Net Loans % Total Liabilities 1,180 1,454 1, % Client Balances & Deposits 1,143 1,391 1, % Subordinated Debt % Common Equity % Convertible Preferred Equity % Total Shareholders Equity % Audited Audited Unaudited Growth in 2015 Revenue % Net Income/(Loss) % EPS Basic % EPS Fully Diluted % ROAA 1.59% 1.50% 2.05% ROAE 17.08% 17.75% 23.68% Capital Adequacy (Current NBG Regulation): BANK Closing Price (Rebased) GSE Index (Rebased) MSCI Emerging Markets Banks Index (Rebased) Audited Audited Unaudited Tier I Ratio 8.18% 11.34% 10.67% Capital Adequacy Ratio 13.53% 15.13% 19.54% Risk Weighted Assets/Total Assets 66.97% 58.79% 53.47% Capital Adequacy (New NBG Regulation, Basel II/III): Common Equity Tier I Ratio 10.81% 11.31% 8.61% Tier I Ratio 11.36% 11.91% 9.12% Capital Adequacy Ratio 12.41% 13.58% 13.87% Risk Weighted Assets/Total Assets 71.10% 63.31% 75.64% Subordinated Debt Contracts Issued By JSC In 2014, JSC (the Issuer ) commenced the issuance of Subordinated Debt Contracts (the SDCs ) to its high net worth and corporate clients and, as of , has raised $ 64.6 million of SDCs qualifying for the inclusion in the Tier II capital. Key terms & conditions of the SDCs are set out below: Issuer JSC Instrument Unsecured Subordinated Debt Contract Subordination Clause In the event the Issuer (i) is in grave financial condition, (ii) becomes insolvent or (iii) is being liquidated, the SDCs shall be repaid (a) only upon the full satisfaction of all depositors and all claims of the creditors that rank senior to the SDCs, and (b) on equal terms with any and all other subordinated financial indebtedness of the Issuer. Minimum Investment $ 250,000 or equivalent in US$ or another currency (at the discretion of the Issuer) Issue Size Up to US$40,000,000 or equivalent in other currencies as approved by the Supervisory Board of the Issuer Use of Proceeds Enhancement of capital and general corporate purposes Restrictions Any prepayment of the SDC principal amount and the accrued but unpaid Interest by Issuer, in full or in part, prior to the expiration of the term of the SDC, shall be subject to prior written consent of the National Bank of Georgia (the NBG ) Currency US$, $ (Georgian Lari) or any other currency at the discretion of the Issuer Interest Rate $: 17% p.a. US$: 11% p.a. Other currencies: negotiable Interest Payment Monthly Term Minimum 5 (five) years with one-year increments for up to 10 (ten) years at the investor s discretion Principal Repayment Bullet upon the expiration of the term of the SDC Rating Not rated Trading Not traded Clearing None Listing None Subscription For details please see the last page of this document Prospective investors should refer to the Issuer s audited annual and unaudited quarterly financial statements accessible at Prospective investors are strongly advised to consult their professional advisers, including tax advisers The SDCs are highly unlikely to be redeemed until the expiration of their term and any prepayment, in full or in part, is subject to the prior written consent of the NBG, which is unlikely to be received In case of the Issuer s default, the investors claim on the SDCs ranks below those of the depositors and other senior creditors and shall only be repaid after all depositors and senior creditors claims have been paid in full This instrument is not a deposit and is subordinated to all non-subordinated debts and deposits in terms of claim. In case of the Issuer s financial hardship, bankruptcy or liquidation, the claims on the SDCs shall only be repaid after all depositors and other creditors claims have been paid in full. Furthermore, this instrument is not insured and may lose value. Key risks relating to the Issuer s business include, but are not limited to, relatively small size compared to the largest competitors, uncertainty arising from the ownership dispute between certain former and current shareholders, dependence on the public sector for key elements of its retail franchise and funding purposes, high degree of the concentration of the liabilities, and the need for the continued investment in the modernisation of its network and IT systems and risk management processes Investment in Georgia and emerging markets: Investing in securities and financial instruments involving emerging markets, such as Georgia, involves a higher degree of risk than investments in securities of corporate or sovereign issuers of more developed markets. These higher risks include, but are not limited to, higher volatility, limited liquidity, a narrow export base, current account and budget deficits and changes in the political, economic, social, legal and regulatory environment. Emerging economies, such as the Georgian economy, are subject to rapid change and are vulnerable to market conditions and economic downturns elsewhere in the world. Emerging markets may also experience more instances of corruption of government officials and misuse of public funds than more mature markets. In addition, international investors reactions to events occurring in one emerging market country or region sometimes appear to demonstrate a contagion effect, in which an entire region or class of investment is disfavoured by such investors.

2 Subordinated Debt Contracts Issued By JSC Investment Highlights Fourth-largest bank in Georgia of considerable systemic importance Market share by Total Assets 4.1% 5.1% 5.9% 6.3% 7.7% 7.8% 6.3% Market share by Gross Loans 2.0% 3.0% 3.9% 4.6% 6.2% 5.8% 4.4% Market share by Loans to Individuals 2.9% 4.9% 8.8% 9.8% 12.0% 11.6% 9.2% Market share by Client Balances & Deposits 6.2% 7.0% 8.7% 9.0% 11.8% 12.0% 8.6% Market share by Client Balances & Deposits of Individuals 4.4% 6.1% 6.2% 7.6% 10.9% 12.7% 11.4% Serves approximately 1.5 million clients Exclusive contract to distribute state pensions and welfare payments expiring on YE 2015 Client Balances & Deposits of the public sector entities $ 241 million YE 2015 Client Balances & Deposits of individuals $ 842 million The Issuer rated by Standard & Poor s as B/B Stable Outlook (rating received on ) Rating Rationale We base our ratings on on our 'bb-' anchor--or starting point for the ratings--of a commercial bank operating only in Georgia. The ratings incorporate our view of the bank's well-established retail franchise, despite its limited diversification, and our expectation that the bank's capitalization will improve slightly on the back of earnings retention and a moderation in prospective loan growth. The ratings also reflect the loan book's focus on retail segments, which we consider a typically riskier segment compared with corporate lending, for example. The bank's funding and liquidity position benefit, in our view, from the bank's relatively large customer deposit base. 's business position is supported by its well-established retail franchise and sustainable revenues, balanced against limited diversification of its business lines and some uncertainties related to the bank's future strategy. ranks no. 3 in Georgia in terms of total assets (Georgian Lari (GEL) 1.5 billion, or $839 million, as of Dec. 31, 2014), with 7.8% market share. 's lending operations are mostly represented by retail loans, about 58% of which are loans to individuals who have a stream of regular inflows into their accounts at the bank. The bank's business focus is somewhat unique for Georgia, because the bank is granted a sole right of distributing pensions and welfare payments throughout the country. We therefore believe that the sustainability of the bank's core franchise is high and supports the bank s revenues. Although this leads to high granularity of the loan book, we still believe that the bank s business line and geographic concentrations expose the bank to a macroeconomic downturn in Georgia, as well as to other negative changes in the operating or regulatory environment. We consider s capital and earnings to be "moderate," which is neutral for the rating on the bank. Our assessment is based on our assumption that the bank is likely to slow its loan book growth to 5%-8% in the next two years, while keeping return on equity at above 12%, mostly driven by core earnings generation. This would lead our projected risk-adjusted capital (RAC) ratio to exceed 5% within the next months, up from 4.74% as of Dec. 31, We believe that 's sustainable competitive position in a protected market niche would enable the bank to keep its net interest margin at about 10%, which we consider to be high. We expect credit costs to remain above 4% of average customer loans, reflecting the bank retail specialization, pressures from economic slowdown in Georgia and seasoning of rapidly accumulated loan book. We assess 's risk position as "moderate," mostly driven by the specialization on a high-risk retail lending segment (where the loans are mostly either unsecured or secured by future cash flows rather than firm collateral). The bank's nonperforming loans (loans overdue by 90 days or more and problem loans that are restructured) comprised 8.6% of the total loan book as of Dec. 31, We expect, however, that the economic slowdown and general pressures on asset quality in Georgia's banking system could lead to a spike in the share of the NPLs in 's loan book, although it is likely to remain below 10% in the next months. At the same time, since the bank does not provide loans in foreign currency, it is less prone to negative devaluation effects, which are now materializing in Georgia's banking system. 's funding is "average" and its liquidity "adequate," in our opinion. The bank is mostly funded by customer deposits, with relatively low level of single name concentration (top-20 depositors contribute about 25% of total customer deposits). The bank's loan-to-deposit ratio was at a low 48% as of Dec. 31, The bank maintains an "adequate" liquidity cushion, with cash and money market instruments comprising about 28% of total assets as of Dec. 31, We think that has "moderate" systemic importance in Georgia's banking sector, given its exclusive role in the pension and social welfare distribution network. However, the counterparty credit rating on the bank is in line with our assessment of the bank's stand-alone credit profile because of the Georgian sovereign rating level, as per our bank rating methodology. Source: Standard & Poor s Research Update, Georgia Based JSC Assigned B/B Ratings; Outlook Stable The Issuer rated by FitchRatings as B /Stable Outlook (updated on ) Key Rating Drivers Niche Franchise, Tight Capitalisation: The Ratings of JSC (LB) are based on its standalone creditworthiness and reflect its niche retail franchise of providing cash loans to payroll and pension customers, reasonable asset quality and lack of foreign currency lending, the latter unique for the sector. However, they also reflect LB s tight capitalisation, concentrated and volatile funding base, and exposure to the fairly high-risk Georgian economy. Support-Driven Outlook: LB's Issuer Default Ratings (IDRs) are underpinned by potential government support, as reflected in its 'B' Support Rating Floor (SRF). The revision of the Outlook on the bank's Long-Term IDR to Positive from Stable reflects that of the sovereign rating. In view of LB's important social function in Georgia and the bank's track record of government support, an upgrade of Georgia's IDRs, indicating the increased ability of the government to provide support, would likely lead to an upward revision of LB's SRF and IDR. 2

3 Subordinated Debt Contracts Issued By JSC Challenging Operating Environment: Georgia remains a low-income, highly dollarised country with a wide current account deficit and significant political risks. However, near-term economic prospects are positive, given Fitch s forecast of 5.5% GDP growth in This should help underpin LB s performance and asset quality, although competition is intensifying. Moderate Capital Buffer: LB's regulatory total capital ratio was a moderate 13.9% (minimum is 12%) at end-3q14, implying limited loss absorption capacity against unexpected losses. The capital base is likely to remain under pressure in light of moderate internal capital generation, which limits growth prospects and hence ability to achieve greater economies of scale. Reasonable Asset Quality: NPLs (loans overdue over 90 days) stood at a low 5.5% at end-3q14, with annualised credit losses running at 2%. These low figures are partly due to the fact that loans are mainly (over 90%) to retail customers (salary or pension clients), who receive their income through LB and are therefore secured by the respective payments. However, rapid loan growth (17% for 9M14) exposes the bank to seasoning risks in the loan book. Concentrated, Volatile Funding Base: The deposit base, which comprises 96% of non-equity funding, is concentrated, with the 20 largest depositors accounting for 32% of the total at end-3q14. Most of the larger balances are tendered from government and municipal bodies and are expensive and volatile, despite providing cross-selling opportunities. Consequently, LB s strategy is to grow retail deposits (51% of total customer balances). Liquid assets are significant, but should be viewed in light of concentration risks. Moderate Profitability: LB's ROE was 16% in 3Q14. The bank s bottom line is underpinned by high loan yields and volume growth. However, funding costs, although falling, remain high, and cost efficiency is pressured by the bank s lack of scale and substantial branch network, which is needed to support its franchise. Source: JSC Full Rating Report, FitchRatings, Highly Liquid Balance Sheet Q Liquidity Ratio % 44.8% 41.7% 38.1% 48.2% 53.1% 59.91% Liquidity Coverage Ratio 1 n.a. n.a. n.a. n.a % 183.3% % $ Liquidity Coverage Ratio 1 n.a. n.a. n.a. n.a. n.a % % FX Liquidity Coverage Ratio 1 n.a. n.a. n.a. n.a. n.a % % Gross Loans To Clients/Total Assets 33.0% 35.2% 49.0% 48.4% 50.8% 48.5% 45.23% Gross Loans To Clients/Client Balances & Deposits 52.2% 52.2% 60.8% 58.9% 57.5% 55.1% 58.60% Highly Diversified Loan Book Of Reasonable Quality Focus on mass-market unsecured consumer lending Over 691,000 individual borrowers Loans To Individuals/Total Gross Loans To Clients 56.8% 63.7% 79.0% 90.9% 88.9% 95.2% 97.5% Weighted Average Loan Yield 19.8% 32.9% 28.5% 27.2% 28.9% 28.4% 33.4% NPLs To Gross Loans To Clients % 18.6% 11.7% 4.3% 4.7% 6.8% 7.7% Cost of Risk 14.0% 7.0% 6.2% 3.0% -0.7%* 3.9% 4.3% * Cost of Risk reflects the net recoveries of $ 2.4 million of large legacy loans 1 Liquid Assets Over Probability Adjusted 30 Day Run-Off Net Outflows 2 NPLs To Gross Loans includes loan principal plus accrued interest $ Focused Balance Sheet $-Denominated Gross Loans To Clients/Gross Loans To Clients 67.8% 83.6% 89.4% 93.5% 91.4% 96.0% 96.4% $-Denominated Client Balances & Deposits/Total Client Balances & Deposits 69.3% 72.7% 82.3% 72.9% 77.6% 78.9% 71.3% 3

4 Subordinated Debt Contracts Issued By JSC Improving Structure Of Liabilities Predominantly equity, subordinated debt and CBD-funded, no wholesale debt with lumpy repayment profile CDs/Total Liabilities n.a. n.a. n.a. n.a. 3.6% 17.9% 24.4% Weighted Average Maturity Of CDs (Months) n.a. n.a. n.a. n.a Time Deposits/Total Liabilities 18.5% 23.1% 19.4% 32.2% 29.7% 19.9% 16.9% Weighted Average Maturity Of Time Deposits (Months) Top 10 Clients/Total Liabilities 30.5% 28.2% 32.5% 28.9% 23.2% 19.9% 12.3% Top 20 Clients/Total Liabilities 32.9% 32.7% 39.4% 34.4% 30.2% 25.4% 16.5% Top 50 Clients/Total Liabilities 34.9% 38.1% 48.4% 43.4% 38.6% 33.9% 21.4% Cumulative Gap As % of Total Liabilities Of 1 Month -27.3% -42.1% -49.4% -22.7% -19.9% -17.3% -8.8% Cumulative Gap As % of Total Liabilities Of 1-3 Months -22.7% -43.6% -47.5% -24.3% -18.4% -17.7% -6.9% Cumulative Gap As % of Total Liabilities Of 3-6 Months -24.0% -39.1% -42.7% -25.0% -18.2% -18.3% -7.8% Cumulative Gap As % of Total Liabilities Of 6 Months -1 Year -43.8% -42.5% -45.2% -35.9% -24.1% -23.5% -14.0% Cumulative Gap As % of Total Liabilities Of More Than 1 Year 2.7% 4.3% 6.6% 8.3% 7.3% 7.8% 8.4% vs. The Liquid balance sheet % 57.1% Net Loans/Total Assets 43.3% 59.5% 59.9% Uniquely low share of FX loans FX Loans/Gross Loans To Clients % 39.9% 62.1% 60.4% 4.0% 3.6% Gross Loans To Clients/Client Balances & Deposits 73.5% 57.3% 55.1% 64.3% 112.6% 114.3% 58.2% 2014 Q Uniquely strong focus on retail Loans To Individuals/Gross Loans To Clients Moderate NPL levels 9.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 88.9% 3.6% 95.2% 97.5% 45.6% 47.8% 47.1% NPLs/Gross Loans To Clients* 7.5% 7.6% 7.7% 5.5% *NPLs to gross loans to clients includes loan principal only FX Client Balances & Deposits/Total Client Balances & Deposits % 22.4% 21.1% 59.9% 60.1% 28.7% 69.4% 4

5 Improving core profitability Net Interest Income/Average Earning Assets 14.0% 12.0% 1 6.0% 4.0% 2.0% % Profit Before Provisions/Average Assets ROAA 9.4% 13.2% *interest earning assets include gross loans only 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1.3% 1.59% * 4.1% 4.1% 3.8% 4.7% 2.46% 2.51% 1.50% 2.05% 12.2% 5.6% 2.28% Subordinated Debt Contracts Issued By JSC Improving efficiency Cost/Income Ratio Loan Loss Reserve/Gross Loans To Clients* *Loan Loss Reserve and Gross Loans To Clients include loan principal only Source: The National Bank of Georgia, Company Data FitchRatings Outlook on the (9 2015) Stable Outlook: The stable rating and sector outlooks on Georgian banks reflect Fitch s view that lenders significant capital buffers should be sufficient to offset the expected moderate deterioration in asset quality following the depreciation of the lari. Overall economic growth remains positive despite slowing (we forecast 2.6% GDP growth in 2016, after an expected 2.2% in 2015), but Georgia remains a fairly high-risk market with a structurally weak, highly dollarised and cyclical economy, and weak external finances. Moderate Growth: Fitch expects loan growth in Georgia to moderate following the external shocks, including regional spillover from the Russian downturn and the 30% depreciation of the lari in Sector lending has been broadly flat (up 2% in 9M15, adjusted for exchange-rate effects), although lending is seasonal and tends to pick up towards year-end. Capital Buffers Offset Pressures: Most Georgian banks operate with strong Basel capital adequacy ratios, which help offset the moderate pressure on their credit profiles from the weaker economy and lari depreciation. However, such buffers are warranted by significant foreign-currency lending. Local regulations impose a 175% risk weighting on foreign-currency loans, which explains why local capital adequacy ratios are lower than those under Basel. High Dollarisation: The sector remains highly dollarised (end-3q15: 64% of loans), exposing banks to exchange rate risk. Fitch expects such lending to remain material over the medium term, with only slowly changing depositor behaviour, undermined by recent lari weakness. Local-currency lending has been (slowly) rising, reflecting the FX risk aversion of borrowers and banks, and the national bank s efforts to provide long-term lari funding to the sector. Reasonable Asset Quality: Reported asset quality remains sound: although NPLs (overdue by 90 days) rose by 17% in absolute terms in 9M15, this partly reflected exchange rate effects, and sector NPLs are still moderate at 2.9%. Reserve coverage of NPLs has also increased and is very high, at about 200%. High loan book dollarisation and significant recent retail credit growth pose risks. Most new consumer lending is in local currency, but retail loan penetration had increased to 24% of GDP at end-1h15, which is high compared to neighbouring countries. Impairments Key to Performance: Asset quality is likely to remain key to performance. Banks performance is underpinned by fairly wide margins as they have expanded local currency higher-margin lending and optimised funding costs. Cost efficiency will continue to be dragged down by smaller banks in the absence of sector consolidation. Sector pre-impairment profit is fairly strong and provides a reasonable buffer to absorb credit losses. Robust Liquidity: We expect funding to be fairly stable, but the inflow of new deposits, adjusted for exchange-rate effects, was around 2% in 9M15, reflecting the economic slowdown and lower remittances from abroad. Liquidity buffers are solid, with highly liquid assets covering over a third of customer deposits. Refinancing risk is generally limited because the banks rely mainly on deposit funding and borrowings from international financial institutions and foreign parents (the main exception being Bank of Georgia s 2017 Eurobond). Source: 2016 Outlook: CIS and Georgian Banks, FitchRatings, % 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 85.7% 4.3% 17.08% 54.1% 55.7% 64.4% 63.1% 6.6% 5.2% ROAE 6.1% 7.1% 17.75% 14.73% 14.68% 23.68% 51.9% 6.3% 15.37% 5

6 Subordinated Debt Contracts Issued By JSC Monthly Performance Highlights GEL mln Monthly Revenue Monthly Net Provision Expense Client Balances & Deposits Blended Cost Of Funds Run-Rate Revenue up 6.4% y-o-y Note: - numbers have been pro-forma adjusted to reflect the loss of the State Fees from GEL mln (1) (2) (3) (4) (5) (6) GEL mln (1) Monthly Pre-Provision Operating Profit Gross Loans To Clients* Outstanding Gross Loans To Clients*/Client Balances & Deposits Cost Of Interest-Bearing Liabilities Note: - numbers have been pro-forma adjusted to reflect the loss of the State Fees from GEL mln GEL mln 65.0% 1,600 1,400 1,284 1,267 1,279 1,314 1,296 1,350 1,352 1,379 1,385 1,295 1,257 1,287 1,311 1,271 1, , % 1,200 1,155 1,175 1,196 1,213 1,211 1,293 1,321 1,294 1,187 1,222 1,000 1,126 1, ,035 1, % % % 10.5% 1 9.5% 9.0% 8.5% 10.5% 10.3% 10.3% 10.1% 10.1% 1 9.1% 1 9.5% 8.1% 8.2% 9.6% 9.6% 9.6% 9.5% 9.5% 9.3% 9.4% 9.3% 9.2% 9.7% 9.2% 9.3% 9.3% 9.3% 8.9% 9.1% 8.7% 8.5% 8.8% 8.8% 8.8% 8.8% 8.4% 8.4% 8.3% 8.4% 8.4% 8.3% 8.1% 8.1% 8.3% 8.2% 8.5% 8.6% % 8.4% * Gross Loans To Clients include loan principal only 13.0% % 12.3% 12.0% 11.5% 11.0% 10.5% 1 9.5% 9.0% 8.5% 51.8% 49.8% 49.1% 57.3% % 57.6% 56.3% 55.1% % % % YE Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 * Gross loans to clients include loan principal only 11.9% 12.3% 12.2% 12.2% 12.4% 12.1% 12.1% 12.0% 12.2% 12.3% 12.3% 12.0% 11.5% 11.3% 11.1% 11.0% 11.2% 11.2% 11.7% 10.1% 12.2% 10.4% 9.5% 9.5% 9.6% 10.2% 9.4% 9.4% 9.4% 9.5% 9.5% 9.5% 9.2% 9.2% 9.4% 9.2% 9.6% 9.7% % 8.6% 9.2% 8.4% 8.6% 8.2% 8.3% 9.0% 8.2% Note: unaudited, IFRS-based numbers 6

7 Subordinated Debt Contracts Issued By JSC Capitalisation Capital Adequacy (Current NBG Regulation) Tier I Capital ($) (18,276,269) (6,488,209) 30,533,397 59,974,575 72,691, ,957,635 90,596,806 Tier II Capital ($) ,947,469 16,268,185 47,436,908 35,699,118 75,387,379 Total Capital ($) (23,845,454) (7,871,194) 48,480,865 76,242, ,128, ,656, ,984,185 Risk-Weighted Assets ($) 241,967, ,499, ,986, ,795, ,120, ,866, ,311,060 Risk-Weighted Assets/Total Assets 75.37% 68.29% 74.44% 68.48% 66.97% 58.79% 53.47% Tier I Ratio -7.55% -1.79% 5.47% 9.66% 8.18% 11.34% 10.67% Total Capital Adequacy Ratio -9.85% -2.17% 8.69% 12.28% 13.53% 15.13% 19.54% Capital Adequacy (New NBG Regulation, Basel II (III)) Tier I Capital NMF NMF NMF NMF 107,971, ,923, ,512,842 Common Equity Tier I NMF NMF NMF NMF 102,792, ,784, ,373,778 Additional Tier I NMF NMF NMF NMF 5,179,064 6,139,064 6,139,064 Tier II Capital NMF NMF NMF NMF 10,058,275 17,154,894 56,494,511 Total Capital NMF NMF NMF NMF 118,029, ,077, ,007,354 Risk Weighted Assets ($) NMF NMF NMF NMF 950,818,748 1,024,043,234 1,189,507,535 Risk-Weighted Assets/Total Assets NMF NMF NMF NMF 71.10% 63.31% 75.64% Common Equity Tier I Ratio NMF NMF NMF NMF 10.81% 11.31% 8.61% Tier I Capital Ratio NMF NMF NMF NMF 11.36% 11.91% 9.12% Total Capital Adequacy Ratio NMF NMF NMF NMF 12.41% 13.58% 13.87% Capital Adequacy (Basel I) Shareholders' Equity/Total Assets,% 2.87% 6.15% 9.36% 11.76% 8.82% 7.90% 8.28% Average Shareholders' Equity/Average Total Assets,% 3.71% 7.04% 7.99% 9.59% 9.32% 8.44% 8.71% Tier I Capital ($) (13,788,000) 15,276,432 51,012,356 77,896,560 93,826, ,202, ,694,387 Tier II Capital ($) (346,656) 11,905,801 27,802,055 27,639,666 29,914,735 32,059,182 62,743,730 Total Capital ($) (14,134,656) 27,182,233 78,814, ,536, ,741, ,261, ,438,118 Risk-Weighted Assets ($) 220,412, ,500, ,024, ,420, ,890, ,978, ,396,464 Risk-Weighted Assets/Total Assets 68.66% 62.60% 69.97% 68.83% 60.60% 55.18% 52.31% Tier I Ratio -6.26% 4.60% 9.94% 13.49% 11.97% 13.34% 15.99% Total Capital Adequacy Ratio -6.41% 8.20% 15.36% 18.28% 15.79% 17.02% 23.61% $ mln 1,400 1,200 1, % 20.00% 18.00% 16.00% 14.00% Risk Weighted Assets , Capital Adequacy Ratio (Current NBG Regulation) ,189.5 YE YE YE 2014 YE 2015 Risk Weighted Assets (Current NBG Regulation) Risk Weighted Assets (Basel I) 12.28% 13.53% 12.00% 12% Minimum requirement for Total Capital Adequacy 10.00% 9.66% 11.34% 8.00% 8.18% 6.00% 8% Minimum requirement for Tier I ratio 4.00% 2.00% 0.00% Risk Weighted Assets (New NBG Regulation) 15.13% 19.54% 10.67% YE YE YE 2014 YE 2015 Tier I Ratio (Current NBG Regulation) Total Capital Adequacy (Current NBG Regulation) 27.00% 24.00% 21.00% 18.00% 15.00% 12.00% 9.00% 6.00% 3.00% 0.00% 18.28% 13.49% Capital Adequacy Ratio (BIS) 15.74% 15.47% 11.93% 13.27% Capital Adequacy Ratio (New NBG Regulation, Basel II/III) 23.61% 15.99% YE YE YE 2014 YE 2015 Tier I Ratio Total Capital Adequacy Ratio 15.00% 13.87% 14.00% 13.58% 10.5% Minimum requirement for Total Capital Adequacy 13.00% 11.08% 12.41% 11.91% 12.00% 11.36% 11.00% 10.04% 10.00% 9.91% 10.81% 11.31% 9.12% 9.00% 8.5% Minimumrequirement for Tier I ratio 8.00% 8.61% 7.00% 6.00% 7.0% Minimumrequirement for Common Equity Tier I ratio 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% YE YE YE 2014 YE 2015 Tier I Ratio (New NBG Regulation) Common Equity Tier I Ratio Total Capital Adequacy (New NBG Regulation) 7

8 Subordinated Debt Contracts Issued By JSC Income Statement Consolidated, IFRS-based Audited Audited Audited Audited Audited Audited Unaudited $ '000, unless otherwise noted Growth y-o-y Interest Income 24,105 52,603 93, , , , , % Interest Expense 19,919 28,275 52,317 72,274 99, , , % Net Interest Income 4,187 24,328 40,711 54,574 60, , , % Fee And Commission Income 31,752 34,532 38,103 31,939 24,078 29,894 38, % Fee And Commission Expenses 1,978 2,064 3,355 2,748 3,067 3,959 6, % Net Fee And Commission Income 29,774 32,468 34,748 29,192 21,012 25,935 32, % Net Income From Documentary Operations , % Net Other Non-Interest Income/(Loss) 3,850 2,771 2,130 1,059 1,163 1,102 1, % Net Income From FX And Translation Operations 3,433 3,898 4,615 5,981 6,823 7,049 8, % Net Non-Interest Income 37,057 39,674 42,043 37,301 29,492 34,468 41, % Total Operating Income 41,244 64,002 82,754 91,875 90, , , % Recurring Operating Costs 42,549 45,926 56,616 66,863 74,677 90, , % Normalised Net Operating Income (1,305) 18,076 26,138 25,012 15,372 56,293 72, % Non-Recurring Costs/(Income) (14,124) 368 (1,152) (639) 64 1, % Pre-Provision Operating Profit 12,819 17,708 27,291 25,651 15,308 54,808 72, % Net Provisions 19,061 14,045 17,712 14,193 (2,374) 28,500 32, % (Gain)/Loss On Asset Sale & Recovery - (1,751) (677) (769) (241) (87) (2) -97.6% Pre-Bonus Result (6,242) 5,414 10,256 12,227 17,923 26,395 40, % Discretionary Bonus Pool ,766 2,379 2,491 3,936 6, % Share Of Associates' Net Profit (105) (63) (75) % Pre-Tax Profit (6,347) 4,619 8,513 9,785 15,445 22,484 34, % Accrued Or Paid Income Tax Benefit/(Expense) (66) (2,473) (3,677) (5,152) 40.1% Reversal Of Impaired Tax Asset - - (1,309) (4,534) 5,093 2,969 2, % Net Income (5,448) 4,729 7,638 5,185 18,064 21,775 31, % Balance Sheet Consolidated, IFRS-based Audited Audited Audited Audited Audited Audited Unaudited $ '000, unless otherwise noted Growth y-o-y Cash And Due From Banks 113, , , , , , , % Treasuries & CDs 1,995 79,376 96,594 57, , , , % Other Fixed Income Instruments - 3,119 2, NMF Net Loans 80, , , , , , , % Accrued Interest & Dividends, Net 2,041 4,400 5,545 6,026 12,782 12,426 12,431 Net Investments 3, % Net Property Owned 2,032 1, ,232 1, % Investment Property 20,184 21,115 25,021 4,793 4,986 5,017 4, % Net Property, Plant & Equipment 80,145 92,165 97, , , , , % Net Intangible Assets 4,560 5,357 6,155 9,280 9,660 11,269 20, % Net Other Assets 11,769 17,925 17,418 24,820 20,398 21,504 20, % Total Assets 321, , , ,932 1,293,614 1,578,358 1,574, % Total Balances & Deposits 253, , , ,177 1,145,475 1,406,744 1,234, % Borrowed Funds 45,600 60, , ,000 NMF Payable Interest & Dividends 1,904 4,306 5,094 6,747 15,538 12,448 7,464-4 Provisions For Issued Guarantees , % Other Liabilities 10,492 13,127 16,417 15,220 18,330 17,062 28, % Subordinated Debt ,785 58,073 NMF Total Liabilities 311, , , ,270 1,179,505 1,453,700 1,443, % Shareholders' Equity 9,222 34,607 72,775 98, , , , % Total Liabilities And Shareholders' Equity 321, , , ,932 1,293,614 1,578,358 1,574, % Cash Flow Statement Consolidated, IFRS-based Audited Audited Audited Audited Audited Audited Unaudited $ '000, unless otherwise noted Growth y-o-y Cash Flows From Operating Activities 245, % Interest Received 24,898 52,253 85, , , ,684 (101,023) -4.4% Interest Paid (21,772) (27,590) (50,658) (70,512) (89,468) (105,664) 38, % Fees And Commissions Received 31,278 35,034 38,924 33,147 24,642 28,154 (6,462) 65.6% Fees And Commissions Paid (1,969) (2,693) (4,422) (4,503) (4,463) (3,902) 21, % Net Realised Gains From Dealing In Foreign Currencies 3,324 4,110 5,098 6,183 6,690 6, % Recoveries Of Assets Previously Written Off 1, , , % Other Income/(Loss) Received 3,850 5,814 3,811 4,388 6,030 10,391 (55,400) 16.7% Personnel Expenses Paid (20,041) (24,009) (29,692) (36,711) (41,130) (47,481) (36,445) 13.4% General, Administrative And Other Operating Expenses Paid (10,848) (14,704) (18,894) (20,664) (21,552) (32,145) 108, % Income Tax Paid - - (182) , % Cash Flows From Operating Activities Before Changes In Operating Assets And Liabilities 9,955 29,060 29,450 41,420 66,042 66,314 (101,023) -4.4% 8

9 Subordinated Debt Contracts Issued By JSC Income Statement Consolidated, IFRS-based Unaudited Unaudited Unaudited Audited Unaudited $ '000, unless otherwise noted Q Q Q Growth q-o-q Growth y-o-y Growth, y-o-y Interest Income 60,425 66,057 65, % 8.22% 224, , % Interest Expense 30,375 29,619 30, % -0.98% 111, , % Net Interest Income 30,050 36,438 35, % 17.52% 112, , % Fee And Commission Income 8,174 10,247 11, % 36.05% 29,894 38, % Fee And Commission Expenses 991 1,840 1, % 99.68% 3,959 6, % Net Fee And Commission Income 7,184 8,406 9, % 27.28% 25,935 32, % Net Income From Documentary Operations % % % Net Other Non-Interest Income/(Loss) % % 1,102 1, % Net Income From FX And Translation Operations 2,367 2,056 1, % % 7,049 8, % Net Non-Interest Income 10,005 10,718 11, % 10.75% 34,468 41, % Total Operating Income 40,055 47,156 46, % 15.83% 147, , % Recurring Operating Costs 24,831 27,177 29, % 20.30% 90, , % Normalised Net Operating Income 15,224 19,979 16, % 8.55% 56,293 72, % Non-Recurring Costs/(Income) (506) nmf nmf 1, % Pre-Provision Operating Profit 15,132 19,812 17, % 12.56% 54,808 72, % Net Provisions 7,342 8,998 6, % -9.66% 28,500 32, % (Gain)/Loss On Asset Sale & Recovery (46) (3) (47) % 0.73% (87) % Pre-Bonus Result 7,837 10,816 10, % 33.30% 26,395 40, % Discretionary Bonus Pool 1,082 1,627 1, % 45.28% 3,936 6, % Share Of Associates' Net Profit 68 (15) (42) NMF % 25 (75) % Pre-Tax Profit 6,823 9,174 8, % 29.46% 22,484 34, % Accrued Or Paid Income Tax Benefit/(Expense) (1,251) (1,383) (1,336) -3.38% 6.78% (3,677) (5,152) 40.11% Reversal Of Impaired Tax Asset 1,884-2,556 NMF NMF 2,969 2, % Net Income 7,456 7,792 10, % 34.82% 21,775 31, % Balance Sheet Consolidated, IFRS-based Audited Unaudited Unaudited $ '000, unless otherwise noted YE 2014 Q Q Growth YTD Growth y-o-y Cash And Due From Banks 530, , , % 5.29% Treasuries & CDs 192, , , % 3.39% Other Fixed Income Instruments NMF NMF Loans To Banks - 24,700 - NMF NMF Net Loans 683, , , % -8.20% Accrued Interest & Dividends, Net 12,426 11,290 12, % 0.04% Net Investments % -3.24% Net Property Owned 1,232 1,565 1, % 15.25% Investment Property 5,017 5,017 4, % -7.01% Net Property, Plant & Equipment 118, , , % 8.27% Net Intangible Assets 11,269 20,142 20, % 79.76% Net Other Assets 21,504 36,220 20, % -6.42% Total Assets 1,578,358 1,543,563 1,574, % -0.27% Total Client Balances & Deposits 1,406,744 1,314,411 1,234, % % Borrowed Funds ,000 NMF NMF Payable Interest & Dividends 12,448 7,300 7, % % Provisions For Issued Guarantees 1, % % Other Liabilities 17,062 32,496 28, % 68.42% Subordinated Debt 15,785 51,792 58, % NMF Total Liabilities 1,453,700 1,406,022 1,443, % -0.68% Common Equity 118, , , % 4.73% Convertible Preferred Equity 6,139 6,139 6, % 0.00% Total Shareholders' Equity 124, , , % 4.50% Total Liabilities And Shareholders' Equity 1,578,358 1,543,563 1,574, % -0.27% Cash Flow Statement Consolidated, IFRS-based Unaudited Unaudited Unaudited Audited Unaudited $ '000, unless otherwise noted Q Q Q Growth q-o-q Growth y-o-y Growth y-o-y Cash Flows From Operating Activities Interest Received 55,038 61,860 59, % 8.37% 215, , % Interest Paid (27,241) (25,019) (24,710) -1.24% -9.29% (105,210) (101,023) -3.98% Fees And Commissions Received 8,161 10,142 11, % 36.80% 29,878 38, % Fees And Commissions Paid (1,004) (1,774) (1,947) 9.78% 93.89% (3,945) (6,462) 63.79% Income From Documentary Operations 70 (36) % 3.61% % Expense On Documentary Operations (2) (3) (3) 0.77% 78.71% (12) (12) 5.22% Net Realised Gains From Dealing In Foreign Currencies 1,609 3,457 12, % % 6,804 21, % Recoveries Of Assets Previously Written Off % % % Other Income/(Loss) Received , % % 2,329 2, % Personnel Expenses Paid (12,491) (12,721) (13,982) 9.91% 11.94% (47,199) (55,400) 17.38% Other Recurring Operating Expenses Paid (8,850) (9,201) (10,011) 8.80% 13.12% (32,094) (36,445) 13.56% Cash Flows From Operating Activities Before Changes In Operating Assets And Liabilities 15,795 27,092 34, % % 66, , % 9

10 Subordinated Debt Contracts Issued By JSC Ratios Consolidated, IFRS-based %, unless otherwise noted Quarterly ratios are annualised Audited Audited Audited Audited Audited Audited Unaudited Unaudited Profitability Q ROAA -1.70% 1.11% 1.06% 0.62% 1.59% 1.48% 2.60% 2.05% ROAE % 21.58% 13.29% 6.44% 17.08% 17.53% 29.82% 23.68% ROAA, Normalised NMF NMF NMF NMF 1.14% 1.27% nmf nmf ROAE, Normalised NMF NMF NMF NMF 12.26% 15.11% nmf nmf Interest Income/Average Interest Earning Assets 18.19% 25.72% 21.58% 20.99% 20.99% 22.42% 25.92% 24.60% Interest Expense/Interest Income 82.63% 54.12% 56.78% 56.98% 62.06% 49.92% 45.99% 46.21% Cost Of Funds 6.46% 7.37% 8.12% 9.52% 9.53% 8.37% 8.39% 8.29% Cost Of Interest Bearing Liabilities 10.04% 7.64% 11.79% 12.12% 11.28% 9.52% 9.51% 9.38% Net Spread, 8.15% 18.08% 9.78% 8.88% 9.72% 12.90% 16.41% 15.22% Net Interest Margin 3.16% 11.89% 9.44% 9.03% 7.96% 11.23% 13.92% 13.15% Net Interest Margin on Average Gross Loans to Clients 3.25% 13.59% 9.40% 9.74% 9.47% 13.16% 16.34% 15.50% Net Fee & Commission Income/Total Operating Income 71.49% 51.29% 42.80% 31.77% 23.33% 17.63% 19.71% 17.92% Net Fee & Commission Income/Average Total Assets 9.21% 7.64% 4.96% 3.48% 1.85% 1.78% 2.36% 2.10% Net Non-Interest Income/Total Operating Income 89.85% 62.43% 50.95% 40.60% 32.75% 23.29% 23.88% 23.32% Net Non-Interest Income/Total Assets 11.58% 9.27% 6.45% 4.44% 2.60% 2.37% 2.86% 2.73% Operating Leverage (Normalised) Recurring Earning Power Efficiency Total Assets/Employee, $ Total Operating Income/Employee, $ Total Recurring Operating Costs/Income Ratio (Normalised) Total Recurring Operating Costs/Average Total Assets Total Operating Income/ Average Total Assets Total Recurring Cash Costs/Average Total Assets Net Income (Loss)/Employee, $ Personnel Costs/Average Total Assets Personnel Costs/Total Recurring Operating Costs Personnel Costs/Total Operating Income Net Normalised Operating Income/Total Operating Income Net Income (Loss)/Total Operating Income Liquidity Net Loans/Total Assets Average Net Loans/Average Total Assets Net Loans/Client Balances & Deposits Average Net Loans/Average Client Balances & Deposits Net Loans/Total Deposits Net Loans/Total Liabilities Current Account Balances/Client Balances & Deposits Savings Account Balances/Client Balances & Deposits Time Deposits/Client Balances & Deposits Certificates of Deposit/Client Balances & Deposits Client Balances & Deposits/Total Deposits Interest Earning Assets/Total Assets Average Interest Earning Assets/Average Total Assets Liquid Assets/Total Asset Liquid Assets/Total Liabilities Client Balances & Deposits/Total Assets Total Deposits/Total Assets Total Deposits/Total Liabilities Client Balances & Deposits/Shareholders' Equity (Times) Leverage (Total Liabilities/Equity), Times Asset Quality NPLs/Gross Loans To Clients Loan Loss Reserve/Gross Loans To Clients Coverage Ratio Average Loan Loss Reserve/Average Gross Loans To Clients Loan Loss Reserve Coverage Ratio Cost Of Risk 18.57% 43.62% 5.58% -7.08% % 41.74% -4.48% 4.11% 3.97% 4.12% 3.87% 3.06% 1.35% 3.74% 4.40% 6.30% Q , , , , , , , ,980 10,843 16,228 18,206 20,241 17,502 26,672 31,590 30, % 73.16% 70.78% 75.37% 85.70% 64.41% 67.78% 63.06% 13.33% 10.90% 8.21% 8.25% 6.80% 6.52% 8.13% 7.38% 12.85% 14.95% 12.70% 10.94% 7.93% 10.12% 12.00% 11.71% 11.14% 9.38% 6.96% 7.06% 5.76% 5.49% 6.86% 6.31% -1,432 1,199 1,713 1,142 2,521 3,898 6,842 5, % 5.97% 4.30% 4.47% 3.68% 3.32% 3.96% 3.80% 47.36% 54.83% 54.10% 56.14% 56.01% 53.13% 51.22% 54.30% 48.99% 40.12% 37.11% 40.85% 46.45% 32.80% 32.98% 32.42% -3.44% 28.24% 31.40% 27.22% 17.07% 38.27% 35.61% 40.30% % 7.39% 9.15% 5.64% 14.40% 14.61% 21.66% 17.53% Q % 29.49% 43.74% 44.58% 45.60% 43.33% 39.89% 39.89% 29.68% 28.39% 36.67% 44.21% 40.92% 45.32% 41.07% 42.55% 39.76% 43.83% 54.24% 54.21% 51.60% 49.17% 51.61% 51.61% 49.41% 41.99% 47.07% 55.07% 46.80% 49.99% 50.04% 50.70% 31.81% 39.19% 51.73% 54.11% 51.49% 48.62% 50.86% 50.86% 25.88% 31.54% 48.56% 50.52% 50.01% 47.05% 43.49% 43.49% 71.57% 67.71% 77.15% 63.96% 61.29% 53.99% 40.88% 40.88% 0.00% 0.32% 1.23% 1.54% 4.30% 6.63% 10.13% 10.13% 28.43% 31.97% 21.62% 34.51% 30.68% 20.81% 20.04% 20.04% 0.00% 0.00% 0.00% 0.00% 3.74% 18.57% 28.95% 28.95% 80.00% 92.33% 95.38% 99.83% 99.80% 98.89% 98.54% 98.54% 35.30% 50.25% 67.06% 69.26% 72.96% 75.93% 63.92% 63.92% 41.40% 47.76% 66.15% 71.98% 66.98% 69.12% 65.25% 67.86% 35.06% 42.00% 35.35% 34.93% 40.71% 45.85% 48.18% 48.18% 36.52% 44.93% 39.24% 39.58% 44.65% 49.79% 52.52% 52.52% 63.23% 68.41% 80.64% 82.24% 88.37% 88.14% 77.28% 77.28% 79.04% 75.27% 84.54% 82.39% 88.55% 89.13% 78.43% 78.43% 81.38% 80.52% 93.86% 93.37% 97.11% 96.77% 85.50% 85.50% Q % 18.55% 11.66% 4.29% 4.74% 6.82% 7.69% 7.69% 22.38% 12.67% 9.69% 5.22% 4.28% 5.17% 7.09% 7.09% % % % % % % % % 20.23% 14.09% 9.98% 9.15% 3.92% 4.47% 6.77% 7.18% 60.35% 59.84% 86.30% % 90.18% 94.49% % % 14.01% 7.01% 6.21% 3.03% -0.73% * 3.90% 3.68% 4.31% Selected Operating Data Q Full Time Employees (FTEs), Standalone 1,890 2,083 2,935 2,982 3,936 4,322 4,705 4,705 Contractors, Standalone 1,914 1,861 1,524 1,557 1,209 1,192 1,169 1,169 Total Employees, Standalone 3,804 3,944 4,459 4,539 5,145 5,514 5,874 5,874 Assets Per FTE ($) 169, , , , , , , ,562 Number Of Branches & Service Outlets Number of Liberty Express Mobile Branches Number Of ATMs * Cost of Risk reflects the net recoveries of $ 2.4 mln of large legacy loans 10

11 Subordinated Debt Contracts Issued By JSC Liberty Securities The Liberty Tower 74 I. Chavchavadze Ave Tbilisi, Georgia 0162 Tel: research@libertysecurities.ge Skype: liberty.securities Temur Iremashvili Director Liberty Securities temur.iremashvili@libertysecurities.ge Skype: temur_75 The Liberty Tower 74 I. Chavchavadze Ave Tbilisi, Georgia 0162 Tel: Aleksi Khoroshvili Chief Executive Officer aleksi.khoroshvili@libertybank.ge Manana Akobia Head of Private Banking UK: Romania: Poland: Estonia: manana.akobia@libertybank.ge Skype: Libertywealth Taxation The following discussion summarises certain Georgian tax considerations that may be relevant to the investor. This summary is limited to Georgian taxation issues, does not purport to be comprehensive, does not constitute tax advice or opinion, and prospective investors are strongly encouraged to consult their tax advisors and to read carefully Terms & Conditions of the SDCs prior to investing in the SDCs. No assurance is made that the considerations summarised below may not be challenged by the Revenue Service of Georgia. Tax on Interest Interest is defined in Article 8.19 of the Georgian Tax Code as payments related to obligations arising from debt, including, inter alia, loans, promissory notes, deposits and securities. Interest income received from financial institutions licensed in Georgia, such as the Issuer, is not taxed for any recipient other than residents of an offshore jurisdiction, for whom interest income is taxed at the rate of 15%. The current list of offshore jurisdictions, promulgated by the Government of Georgia, is available at This tax will be withheld at the source, and, accordingly, the net amount will be credited to the investor s designated bank account. As the relevant tax on interest will be withheld at the source, the Issuer believes that the investor in the SDCs will face no tax filing requirements in Georgia, although the investors individual circumstances may vary. Taxation of Capital Gains There is no separate capital gains tax in Georgia. Realised capital gains on the sale (or exchange) of assets are included in the taxable income of resident and non-resident legal entities and individuals. The applicable rates depending on the jurisdiction in which the investor is resident are as follows: Resident individuals 20% Non-resident individuals 20% Resident legal entities 15% Non-resident legal entities 15% Individuals resident in an offshore jurisdiction 15% Legal entities resident in an offshore jurisdiction 15% In the event that the investor realises any capital gains from the disposal of SDCs though a Georgian broker-dealer company, the relevant tax will be withheld at the source on behalf of any investor by the broker-dealer company, in which case the selling investor is under no obligation to make any tax filing in Georgia. If the investor is a resident of a jurisdiction with which Georgia has a Double Taxation Avoidance Treaty, the withholding rates of the treaty will apply. The list of jurisdictions with which Georgia has a Double Taxation Avoidance Treaty is available at Subscription Procedure: 1. Download the Terms & Conditions of the SDCs: Georgian: available at English: available at Russian: available at 2. Download the application: Georgian application form for individuals is available at Georgian application form for legal entities is available at English application form for individuals is available at English application form for legal entities is available at Russian application form for individuals is available at Russian application form for legal entities is available at 3. Send the filled-in application to the Issuer s dedicated contact persons above or to your private banker 4. Once the application is accepted by the Issuer, transfer the agreed purchase amount to the designated bank account indicated by the Issuer Alternatively, prospective investors can purchase and hold the SDCs via a brokerage account at Liberty Securities. Please contact Liberty Securities for further information regarding the account opening procedures at Liberty Securities. See Liberty Securities dedicated contact persons information above. A 1% placement fee will be charged by Liberty Securities. This document has been produced by Liberty Securities Ltd ( Liberty Securities ). Liberty Securities and/or persons connected with it may effect or may have effected a transaction or transactions for their own account in the securities or instruments or strategies (collectively, the Instruments ) referred to in this document or any related investment before the material is published to Liberty Securities clients, may have a position in the securities and/or any related investment and may make a purchase and/or sale, or offer to make a purchase and/or sale, of the Instruments and/or any related investment from time to time, in the open market or otherwise, in each case either as a principal or as an agent. 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