Contents Strategic Report 01-101 Overview Financial Highlights 04 Operating Highlights 05 At a Glance 06 Chairman’s Statement 10 Chief Executive Officer’s Statement 12 Strategy Industry and Market Overview 14 Group History 20 Current Business Model and Strategy 22 Delivering on Current Strategy 23 Superior Access to Funding 42 Key Performance Indicators 44 Risk Management 48 Principal Risks and Uncertainties 60 Going Concern and Viability Statements 68 Resources and Responsibilities 70 Performance Overview of Financial Results 86 Governance 102-153 Directors’ Governance Overview 103 Shareholder and Stakeholder Engagement 110 Board of Directors 111 Executive Management 115 Nomination Committee Report 117 Audit Committee Report 121 Risk Committee Report 126 Directors’ Remuneration Report 129 Statement of Directors’ Responsibilities 149 Directors’ Report 150 02 Annual Report 2018 Bank of Georgia Group PLC