Chairman’s Statement Neil Janin Chairman Dear Shareholders, This is my first letter writing as the Chairman of the The Group is currently entering a new era. It is learning Board of Directors of Bank of Georgia Group PLC with to operate as a flexible, technology-enabled information it being an independent entity. This time last year, the business. It is changing its culture from an execution- Group was still part of the BGEO Group. In May 2018, based organisation to one where its people are developing the shareholder-approved demerger of BGEO Group was and contributing both ideas and services. It is refocusing completed, creating two independent entities – Bank of on the needs of its clients. In summary, it aims to become Georgia Group and Georgia Capital. As a result of the a more entrepreneurial growth organisation. demerger, Irakli Gilauri, former CEO of BGEO Group, moved to lead Georgia Capital and Kaha Kiknavelidze Archil and the Board have agreed on the following mandate: became the CEO of the newly-independent Bank of Georgia Group. 1.Develop a long-term growth strategy, ensuring that Bank of Georgia Group has the leading position in We are grateful to Kaha for steering us successfully Georgia (not just in terms of financial profitability, through the transition period following the demerger. but also in innovative developments, digital leadership, Thanks to his steady leadership, the Group continued to and regional wealth management) – whilst maintaining produce solid results for the year and this is presented in its sound risk management practices; more detail further on in the report. We are very thankful 2. Play a prominent role in the Georgian market and that, although stepping down from his role as CEO, economy – ensuring sustainable development for Kaha will remain as an adviser to the organisation. both our institution and the country; and 3. Work with the Executive Management team to In January 2019, Archil Gachechiladze was appointed model what an agile and entrepreneurial culture is and as the new CEO of the Group. He is familiar with the spread this culture to the entire organisation. In short, institution, having previously led the corporate bank and we aim to make talent development a top priority our investment bank, Galt & Taggart, both successfully. for the Group. Most recently he served as CEO of Georgian Global Utilities (GGU), the Georgian water utility and renewables The whole Board and I commit to doing everything we can business, where he proved to be an excellent business to ensure Archil succeeds. builder, dealmaker and leader. We believe that he will bring these qualities to the Group. We are confident that he has the vision, entrepreneurialism and leadership, both internally and in the marketplace, that will ensure Bank of Georgia continues to be innovative and distinguished from many other institutions. 10 Annual Report 2018Bank of Georgia Group PLC