ANAKLIA PROJECT GEORGIAPROJECT SUMMARY | NOVEMBER 2017

2 | INVESTOR PRESENTATION2 | PRESENTATION

FIRST DEEP SEA PORT IN GEORGIA

FIRST DEEP SEA PORT IN GEORGIAAnaklia on a crossroad between Europe and Asia

PROJECT SUMMARY

Government

▪ PPP project

▪ “BOT” with a 52-year concession

▪ Road and rail infrastructure –c.USD 120m

▪ 340 hectares land area –transferred to ADC

▪ USD 100 m mezzanine debt

Anaklia Development Consortium

▪ Port depth of 16m CD

▪ 9 development phases

▪ Total project cost USD 2.5 billion

▪ Up to 100m ton annual capacity (incl.5.9m TEUs)

▪ Right to handle all types of commodities including containers,

B/B, dry and liquid bulk

▪ 10,000 TEUs vessels handling capacity

Anaklia port will receive first

vessels in 2021

3 | INVESTOR PRESENTATION3 | PRESENTATION

PHASE 1 - SUMMARY

▪ 625m berth

▪ 35 ha Container Yard

▪ On-dock rail

▪ 18m draft channel and 16m draft at berth

▪ Up to 900,000 TEUs and 1.5MT capacity

▪ USD 160 per TEU cost advantage to existing ports in Georgia

▪ Initiate operations Q1 2021

▪ Terminal operator – SSA Marine

▪ Estimated CAPEX – USD 540 million

4 | INVESTOR PRESENTATION4 | PRESENTATION

THE BLACK SEA IS THE CROSSROAD BETWEEN EUROPE AND AISA

▪ Part of new Silk Road route

▪ Trains from North-West China to Georgia’s Black Sea coast takes just 8 days in comparison with 45 days maritime route

▪ China shipped over 196 million TEU in 2016, of which an estimated 20% or c.40 million TEU went to Europe

▪ Georgia, Azerbaijan and Kazakhstan founded consortium which offers single railway tariff across the Middle Corridor TITR

▪ Anaklia has an ambition to become primary corridor and vital route for cargo flow between Europe and China

5 | INVESTOR PRESENTATION5 | PRESENTATION

ANAKLIA TEU FORECAST

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Georgia's Traffic and Anaklia Port Container Forecast China (Silk Road) Secondary Market TEUs

Primary Market TEUs Anaklia Port TEUs

Anaklia Port TEUs (with China)

Source: Ministry of Economy and Sustainable Development of Georgia, MTBS

▪ 2016 Georgian Ports TEU throughput: 329,000 TEU

▪ 2017 9m Georgian Ports TEU throughput: 283,319 TEU, + 17.4% p-o-p.

▪ Short term container growth rate between 10% and 14% until 2020

▪ Georgian container ports will reach full capacity already in 2022

▪ Long term container growth rate stable at 4.5% per annum (after 2030)

▪ Anaklia to hold 100% of direct calls and 40% of feeder calls

▪ By 2035 potential throughput by Georgian ports to reach 2.17m TEUs

▪ Anaklia throughput to reach 1.61m TEUs in 2035

▪ With cargo from China, Anaklia throughput to reach 2.2m TEUs in 2035

* 2021-2025

Historic

Forecast

TEU Volumes in Thousands TEU 2014 2015 2016 2017P 2018 2019 2020 2021 2022 2023 2024 2025 2030 2035CAGR 2015 -2020

CAGR 2020 –2025

CAGR 2025 –2030

CAGR 2030 –2035

Primary Market TEU Forecast 422 359 311 358 402 450 498 551 606 662 718 773 1,021 1,272 6.75% 9.21% 5.71% 4.50%Secondary Market TEU Forecast 25 21 18 26 44 64 88 168 285 375 457 547 722 900 33.41% 43.99% 5.72% 4.50%China (Silk Road) 340 374 408 443 477 629 784 8.83%* 7.16% 5.66%Total Georgia Base Case TEU Potential 447 380 329 385 446 514 586 719 891 1,037 1,175 1,320 1,743 2,172 9.06% 17.63% 5.71% 4.50%

Total Georgia Base Case TEU Potential (With China) 1,059 1,265 1,445 1,618 1,797 2,372 2,956 14.13%* 23.42% 22.42%

Anaklia Port TEU Forecast 384 573 667 840 979 1,292 1,611 26.37%* 5.71% 4.50%Anaklia Port TEU Forecast (with China) 566 814 930 1,157 1,333 1,760 2,193 23.88%* 23.42% 22.42%

6 | INVESTOR PRESENTATION6 | PRESENTATION

ANAKLIA CITY (SEZ)- ADDITIONAL UPSIDE

DRAFT MASTER DEVELOPMENT PLAN

▪ JSC Anaklia City has an intention to develop the city scale Special

Economic Zone

▪ The zone will be developed in the hinterland of the port on a territory

up to 2,000 hectares

▪ To emerge as new city and regional business destination, serving as

gateway to regional markets

▪ Special economic/regulatory framework granted by the article in the

Georgian Constitution (tax system, judiciary and international

regulations)

▪ To be developed based on the principles of Green and Smart Cities

▪ Procured study to develop the concept master plan and development

strategy

▪ Fully integrated with the Port and catchment area through the

physical infrastructure (rail and road) and proximity to international

airport

▪ Initial phase – development of logistics parks and light

manufacturing industries on up to 400 ha territory adjacent to the

port

7 | INVESTOR PRESENTATION7 | PRESENTATION

GEORGIA – MAKING BUSINESS EASY

One of the least tax burden country in the world Extremely business oriented government

9th

Ease of Doing

Business

(by World Bank)

13th

Freest

Economy

(By the Heritage

Foundation)

7th

Safest

Country

(By Nambeo

International )

▪ Strategically located on a crossroad between Europe and Asia

▪ The EU Associated Country

▪ Internationally recognized top reformer in the world

▪ The only country in the region recently upgraded by the Moody’s

▪ Prudent and resilient free market economy

▪ Ample availability of young and skilled labor force

Easiest destination in the region to conduct business with free trade access to over 2 billion people markets

8 | INVESTOR PRESENTATION8 | PRESENTATION

THANK YOU!