AmCham Georgia Annual Report 2013

Your Business Partner in Georgia

ANNUAL REPORT

2013

The American Chamber of Commerce in Georgia is an association aiming to promote the development of commercial relations between Georgia, the United States of America, and the international community in Georgia.

The Chamber protects and promotes the common economic interests of its members and represents their opinions on all types of business matters while striving to facilitate constructive solutions to economic issues concerning GeorgiaUS business relations.

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The Chamber promotes its goals by establishing relations with key policy makers and appropriate governmental bodies in both the US and Georgia on subjects of interest to its members.

Additionally, the Chamber collects and disseminates timely information concerning areas of interest, organizes conferences and seminars, works on legislative initiatives of concern to the business community in Georgia, and most importantly, provides an ongoing forum for members of the American business community to gather to share knowledge, experiences, problems and solutions.

ABOUT AMCHAM GEORGIA The American Chamber of Commerce in Georgia, registered in 1998, is the largest and most effective international business association operating in the country. Our members - nearly 160 companies from 17 countries - represent many of the largest employers in Georgia. The Chamber is, first and foremost, dedicated to promoting US - Georgia economic and commercial relations and to improve the business environment in Georgia.

Through regular meetings, we keep members in contact with senior officials in the Georgian government and the US Embassy, as well as facilitate companies to network and strengthen ties with each other. We also host many meetings on special topics to relay new and interesting insight on timely issues, as well as provide information on the best international practices in areas that are of practical use for our member companies. Our magazine, Investor.ge, is a leading business magazine in the country and provides insights into changes in the economy and updates on the deals being done and the organizations and personalities behind them.

AmCham encourages investment in Georgia, both foreign and domestic, and often serves as the first stop for new and potential investors looking to do business in Georgia. We always work to promote our members' goods and services to potential investors and potential clients.

Our committees provide a vehicle for collecting opinions, conducting research and lobbying the government on issues of particular importance to our members and the wider business community. We currently have 140 persons serving on seven committees that work towards a responsible and business friendly environment in the areas of tax policy and administration; labor regulations; education and training; human resource management; tourism promotion; agribusiness development; customs issues; energy and more.

We plan to continue working to strengthen our committees and create new ones – as part of our effort to raise awareness about issues affecting our members, better promote our members and strengthen sectorial awareness and cooperation.

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Sarah Williamson President AmCham Georgia

Dear AmCham Members, It is my pleasure to address you and present our Chamber's annual report for the year 2013.

Last year was a highly successful year for our Chamber.

Alongside our core informational meetings and networking events, our committees have become more active than ever before and are serving as a true agent of change in the policy arena. The impact of our advocacy work in 2013 has been the strongest in AmCham Georgia's 15 year history.

Highlights include:

companies and Georgian companies with any foreign shareholders to own agricultural land. We feel strongly that limitations and regulations on investment in this vital sector of Georgia's economy is a no-win situation.

In addition to the above, in 2013 we had major wins and important policy successes in the areas of competition law, tax law and administration, tourism promotion, and many other key areas.

AmCham remains committed to sustaining the positive image of Georgia in the eyes of foreign investors and improving overall business conditions through our policy work and cooperation with the government.

AmCham takes a "Ground Truth" trip to The Hill in Washington DC: last fall a senior AmCham delegation made a 3 day trip to D.C. to provide senior level policy makers with candid, in-depth information on topics of mutual interest.

The overriding message was - and remains - that the US needs to support Georgia's aspirations for integration with Euro-Atlantic Institutions.

Labor Code Reform: our Chamber's Labor Relations Committee, under the leadership of Lasha Gogiberidze, worked intensively for several months to ensure that the new Labor Code did not over-regulate businesses or stifle growth. Of our 30 substantive proposals about half were accepted, including issues on term contracts, cause for termination, overtime remuneration and shift work flexibility.

Foreign ownership of Agricultural Land: our Chamber continues to work to retain the rights of foreigners, foreign

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On behalf of the Board of Directors, I would like to thank each and every member company for being part of our AmCham team. In particular, I would like to thank US Ambassador Richard Norland and the entire US Embassy in Tbilisi for their time, attention, and support. Our success depends on all of you. Stay engaged, stay active and stay informed.

I wish you growth, peace and prosperity and I firmly believe that the coming years will bring more success to Georgia and companies that operate in Georgia.

Richard Norland U.S. Ambassador to Georgia

Dear Friends, As U.S. Ambassador to Georgia for nearly two years now, my wife Mary and I have been fortunate to witness several historic moments in Georgia's democratic and economic development.

Georgia enjoyed two peaceful transitions of power through the ballot box, including what have been described as “European elections,� and has made great progress on reforms that have paved the way for signature of an Association Agreement and Deep and Comprehensive Free Trade Agreement with the European Union (EU) on June 27.

During these two years, I have also come to fully appreciate the valuable role that the American Chamber of Commerce in Georgia (AmCham) plays in strengthening business and the investment climate here, which is critical as Georgia looks to broaden inclusive economic growth, increase foreign direct investment, and pursue the economic reforms necessary to meet its obligations under the Deep and Comprehensive Free Trade Agreement with the EU. From its engagement on the adoption of a labor code that meets international labor standards, to its work on tax code and enforcement issues, agricultural land reform, and its ongoing efforts to increase

dialogue between the government and the private sector, AmCham is a constructive and action-oriented organization.

This is a tribute to the hard work and ingenuity of its leadership and its vibrant membership.

Relations between the United States and Georgia have never been stronger. However, we continue to look for ways to deepen our relationship, including on bilateral economic cooperation and investment. We do so primarily through our bilateral Strategic Partnership Commission's Economic Working Group, the High Level Trade and Investment Dialogue led by our U.S. Trade Representative, and development assistance and financing from USAID, Millennium Challenge Corporation (MCC), and the Overseas Private Investment Corporation (OPIC). But we also want to see more American investment here and more American companies opening their doors in Georgia. AmCham is a key partner for us in these efforts, and I look forward to continuing this work with you over the coming year.

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BOARD OF DIRECTORS SARAH WILLIAMSON

R. MICHAEL COWGILL

IRAKLI BAIDASHVILI

President

First Vice-President

Vice-President and Treasurer

Sarah Williamson has been an active investor in Georgia since 1998 as the co-owner and Senior Vice President of UGT Group, a holding company that includes the largest full service IT company in the region. She has served as the president of the American Chamber of Commerce in Georgia (AmCham) since 2012 and has been a member of the board since 2001. Ms Williamson has also served on the board of many organizations, currently including the Anti-Corruption Council of Georgia at the Ministry of Justice and the Advisory Board of Millennium Challenge Account – Georgia.

In his 16th year in Georgia, Michael Cowgill is the President and co-founder of Georgian American University (GAU) in Tbilisi, Georgia, with schools of Business; Law, Social Sciences & Diplomacy; Natural Sciences & Engineering; and Liberal Arts & Humanities. He also continues to develop international energy projects, which he has done for the past 39 years in over 40 countries.

BADRI JAPARIDZE

STEVE JOHNSON

TED JONAS

Director

Director

Director

Badri Japaridze is co-founder of IDS Borjomi Georgia, ViceChairman of Supervisory Board of JSC TBC Bank since 1996. He is also a member of the Supervisory Board of GRDC as well as the EUGeorgian Business Council and Geoplant. A graduate of an executive course at the London School of Economics and Political Science, he is the chairman at several Georgian organizations, including the Supervisory Board of TBC Kredit, TBC Leasing, Bank Constanta and the Board of TBC TV LLC.

Steve Johnson is the proprietor of Prospero's Books and the General Manager of The Hotel Betsy.

Prospero's Books and Caliban's Coffee House is the leading English language bookstore in Georgia.

Ted Jonas is the managing partner of DLA Piper Georgia. He has 20 years' experience working in Georgia and the former Soviet Union for DLA Piper, Baker Botts, Georgian Consulting Group and the National Democratic Institute.

Ted's law practice focuses on energy, corporate and finance matters. He is a 1991 graduate of Cornell Law School and a 1984 graduate of Cornell University.

DAVID LEE

K.G. MOORE

Chairman Emeritus

Ex-Officio Member

David Lee is the General Director of Magticom, the largest telecommunications operator in Georgia and took up his position March 2004. David is also the Chairman of the Eurasia Partnership Foundation and is a Chartered Accountant with an MBA from Warwick Business School. A Russian speaker, he has worked extensively in the former USSR and served as a Royal Naval Officer for 9 years.

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Irakli Baidashvili is an Executive Vice President of GMT Group. The company is one of the largest US direct investments in Georgia, the owner of two Marriott hotels, GMT Plaza offices, production facility SANTE, Mtatsminda Funicular complex and several major real estate sites in Tbilisi.

K.G. Moore is Deputy Chief of Political and Economic Affairs and Senior Economic Officer at the U.S. Embassy in Tbilisi. Prior to arriving in Tbilisi, he served as the Senior Georgia Desk Officer at the Department of State in Washington and worked in the Department's Office of United Nations Political Affairs, which focuses on UN Security Council matters.

2013 NEIL DUNN

ESBEN EMBORG

LASHA GOGIBERIDZE

Director

Director

Director

Neil Dunn has been the general manager of BP Georgia since October 2008. He has 30 years of experience in the oil and gas i n d u s t r y, h a v i n g v a r i o u s engineering and operations assignments.

Esben Emborg came to Georgia in 1999. He worked as General Manager in the Caucasus Region for Cadbury Schweppes and Nestle until 2009. Currently he is working as the Principal Partner for an Investment Fund (SEAF) and the Small Enterprise Assistance Fund, which is currently managing two PE funds: GRDF, a 30 mil USD portfolio and CGF, a 50 mil USD PE fund.

Lasha Gogiberidze is a founding partner of BGI Advisory Services Georgia and the director of BGI Legal. Previously, Lasha worked at Ernst & Young's Georgian office.

Lasha graduated from Tbilisi State University, has a LL.M. from the University of Illinois, and is licensed to practice law in NY state.

KETTI KVARTSKHAVA

ROBIN MCCONE

BETSY HASKELL

Director

Director

Founding Advisor

Ketti Kvartskhava is a Partner at BLC Law Office. She specializes in corporate law, finance, taxation, g e n e ra l b u s i n e s s l a w a n d litigations. She has experience working as an in-house legal advisor for commercial banks and a commercial law advisor for USAID Georgia. She teaches legal ethics at the Georgian Bar Association and has experience teaching international private law. She holds professional degrees from law schools in Georgia and USA.

Robin McCone is a NZ lawyer. He leads PwC's tax and legal practice in Georgia and Armenia. He has been with PwC mainly based in CEE countries for over 16 years.

Prior to moving to Tbilisi he spent two years in New York as the leader of the CEE Desk. He looks forward to utilising his large international network in his role as a board member.

Betsy Haskell is an 23 year resident of Georgia who, in addition to starting four successful b u s i n e s s e s , h e l p e d c re a t e AmCham Georgia 15 years ago. Ms Haskell is currently working with Rentals.ge on sales of high-end properties. For the past 20 years, she has been the Georgia Contractor for Metrica, Inc, a US Treasury Department sub-contractor.

AMY DENMAN Executive Director Amy Denman is the founding Executive Director of the American Chamber of Commerce in Georgia.

Since 1998, AmCham has emerged as the largest international business association and a leader in business advocacy. AmCham is a top networking platform for American, international and Georgian businesses. Amy was a founding Board member of Junior Achievement Georgia and currently is the Chair of the Supervisory Board of Salvation Army Georgia.

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BP is one of the world's largest energy companies, and operating in Georgia since 1996. BP business is primarily about the safe transportation and delivery of energy, while operating in a manner which is truly sustainable. BP in Georgia is one of the major foreign investors in Georgia, bringing substantial benefits to the country and its people through our energy transportation and sustainable development initiatives. It is heavily involved in regional energy projects particularly in the Caspian basin, and has expanded its activities in Georgia with the onset of major pipeline construction.

Exxon Mobil Corporation is committed to being the world's premier petroleum and petrochemical company. To that end, it continuously achieves superior financial and operating results while simultaneously adhering to high ethical standards. Through the utilization of Azerbaijan and Georgian freight forwarding companies, Exxon Azerbaijan Limited is currently transshipping entitled Azeri light crude oil produced from the Azeri-Chirag-Guneshli PSA contract area in Azerbaijan along the Azerbaijan-Georgia rail corridor with onward loading of marine vessels at the Batumi Oil Terminal.

PwC is one of the world's largest providers of assurance, tax, and business consulting services. We believe that the best outcomes are achieved through close collaboration with our clients and the many stakeholder communities we serve. So every day, 161,000 PwC people in 154 countries work hard to build strong relationships with others and understand the issue and aspirations that drive them. PwC has been serving clients in Georgia since 1996, and in July 2005, opened an office in Tbilisi which now employs over 60 professionals.

TBSC Consulting is a boutique management consulting firm. TBSC helps organizations make better strategic and tactical decisions through detailed analyses. TBSC leverages more than 25 years management consulting experience in the U.S., Western and Eastern Europe and the experience of consulting more than 100 organizations over the past nine years in Georgia. TBSC’s increasing spectrum of clientele include s diverse Georgian companies, foreign investors, IFIs, diplomatic missions, donors & NGOs. TBSC became a Patron Member in 2014.

UGT is the leading system integrator and solutions provider on the Georgian IT market.

UGT primarily concentrates on providing services to corporate clients and the government sector. The core business of UGT is the implementation, deployment, and support of solutions that are based on information and communication technology products and services. UGT is also known for the provision of high quality computer equipment and accessories. Among the partners and suppliers of UGT are world leading IT companies such as Microsoft, SAP, HP, Cisco, IBM, AVAYA, SUN, Oracle and others.

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Since 1998, AmCham Georgia has been an ally for the business community in Georgia. In 2013, the Chamber worked hard to lobby for changes to major laws that serve the country's investment climate and help businesses continue to work and grow. From close cooperation with the government to passionate outreach abroad, AmCham Georgia has been a voice for its members this year – and every year.

Over the past year, we have encouraged public debate and cooperation both within the business community and among other advocacy groups, working to advance a legislative agenda that would positively affect the business environment.

The Chamber's Board of Directors, Committee Chairs and committee members have worked hard to lobby for your

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business on many key issues. We have taken the lead role on the labor code and successfully advocated for a new labor code that fosters business growth and development, while still protecting the rights of workers. We have repeatedly delivered strong messages to the Revenue Service on the changes needed on tax administration reform. We have pushed for reforms of the tax dispute resolution council and moving to an objective risk-

based approach to tax audits. We have pressed for solutions for problems with VAT refund delays, tax free re-organization rules, production loss norms and transfer pricing issues.

The past year has been a big year for wide sweeping changes to laws that influence the business environment and, regardless of whether the changes were initiated at a ministerial level in

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Tbilisi or in the parliament in Kutaisi, AmCham Georgia has been there to lobby for the interests of its members and, by extension, the greater business community.

In 2013, AmCham was first to come out strongly against the policy of restricting foreign ownership of agricultural land. This debate continues into 2014 and we remain a vocal opponent of this policy. Over the past year, we have worked on banking and mortgage lending regulations and have came out strongly against any restrictions on banks' rights to foreclose.

Over the past year we have also advocated for our members in many other important areas, such as competition policy, trade and anti-dumping laws,tourism promotion, IP protection, and more.

Over the next year, the Chamber will continue to work for the needs of its members and advocate for the changes that are necessary for Georgia to attract investors and build a sustainable economy. AmCham Georgia will continue protecting investors' property rights, as well as advocating for the swift adoption of key legislation that is necessary to streamline the tax and customs laws – and encourage incentives for investors in areas like research and development.

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OUTREACH & FOSTERING TIES

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In 2013 AmCham Georgia reached out to a wide range of policy makers, investors, foreign delegations and local decision makers. As our Chamber grew, we sought out ties with the greater business community, think tanks, charities and organizations both in Georgia and abroad in an effort to become a better business organization.

Pro-active, engaged and committed, AmCham continued to broaden our influence last year.

AmCham was an active member of the Anti-Corruption Council of Georgia under the Ministry of Justice and the Co-Chair of the working group “Prevention of Corruption in the Private Sector”.

Our representativeshave attended regular meetings to weigh in on sweeping policy discussions, including the modernization of civil service, the development of public procurement, a competitive and corruption-free private sector, and the reform of public finance system. We were also a vocal and active steering committee member of the Coalition for an Independent and Transparent Judiciary.

The AmCham President, Officers and Board of Directors were regular speakers at high level events to represent our members' views on a wide range of topics, from the investment climate in Georgia to larger geo-political issues. Among several other high level events in 2013, AmCham President Sarah Williamson presented “Georgia's Reform Agenda” at the 83rd Annual RoseRoth Seminar; Vice President Michael Cowgill and other AmCham reps were key note speakers at the Senior Executive Panel at the International Society for Performance

Improvement (ISPI) 2013 conference, which was attended by an audience from 13 countries.

On behalf of AmCham, our committee chairs and elected leadership were also speakers at international workshops and conferences as experts on investing in Georgia, regional trade development, corporate environmental responsibility, sustainable development, alternative dispute resolution, women's issues, educational forums and leadership workshops.

The Chamber proactively sought advice and guidance for its members as the U.S. government issued stronger sanctions against Iran. For example, in 2013 AmCham met twice with the U.S. State Department Deputy Sanctions Coordinator and a delegation of U.S. Treasury representatives on raising awareness on Iranian sanctions and compliance.

Also in 2013, AmCham co-hosted the official launch of the $140 million Second Millennium Challenge Corporation Compact with Georgia, which has been designed to reduce poverty by addressing constraints to workforce development. Throughout the year, we gave input and advice on the program, which works at improving the skills sets that are relevant to companies operating in Georgia.

AmCham also traveled to Washington DC as part of the American Chambers in Europe delegation in June 2013, where they had high level meetings with US Chamber representatives, and representatives from the US Department State, Department of Commerce and US Trade Representative. In

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addition, a small group from our Chamber also met privately with PM Irakli Gharibashvili, as he prepared for his transition from Interior Minister to Prime Minister, and to prepare for the AmCham delegation's November trip to Washington, DC. The trip to Washington was part of an ongoing effort by AmCham to address the conflicting messages coming out about Georgia following the 2012 parliamentary election.

During the visit, the members of the AmCham delegation met with key opinion and policy makers and provided them with candid, in-depth information on the current economic and democratic processes in Georgia. Topics of discussion included promoting FDI, energy security, regional trade and transportation, macro-economic indicators, rule of law and the judiciary, and other relevant topics related to the economy and investment. AmCham also promoted a continued dialogue with Georgia on a US-Georgia Free Trade Agreement; the effort included an editorial outlining the importance of a FTA by AmCham President Sarah Williamson that was published in The Hill newspaper.

Members of the delegation participated in 30 meetings over three days – and even extended the trip so they could schedule time to speak with every Congressional office and policy maker interested in learning more about Georgia.

Key highlights included a meeting with Senator Jim Inhofe's key advisors on military and foreign affairs, as well as with majority

and minority senior policy staffers of the Senate Foreign Relations Committee. In addition to other Congress Members and Senators, they also had meetings at the leading U.S. thinks tanks, including the Carnegie Foundation, Brookings Institute and Center for Strategic and International Studies.

Over the past year, our Chamber has also actively organized – and participated in – many great events to engage the business community with environmental and socially responsible activities such as Earth Hour, Clean-Up Georgia day, Run for Boston, the Salvation Army Angel Tree, the Susan G. Komen Race for the Cure event and several other charities and funds.

Advocating responsible business has always been a priority for AmCham Georgia: in 2013, the Chamber's CSR Committee CoChair Margo Zhiznevskaya participated in the Post 2015 and Sustainable Development Goals workshop organized by the Northern Alliance for Sustainability (ANPED), International Eurasia Press Fund (IEPF) and Global Compact NetworkAzerbaijan in Baku. Ms Zhiznevskaya gave a panel presentation on Green Business and its Effect on Globalization in the context of regional development during the event.

Looking forward, AmCham is committed to continuing to increase its outreach over the next year, through more international trips to the summits and conferences that matter for members' and the Georgian investment climate – and domestically, on the issues that impact doing business at home.

NETWORKING

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Since it started in 1998, AmCham has worked hard to make sure members take full advantage of the benefits of membership. As the oldest and most experienced international business association in Georgia, the Chamber has always been committed to helping its members network and expand their ties within the business community and with important policy makers. AmCham makes it easy for members to be involved, stay informed and get connected with other businesses, government officials, and influential decision makers. From casual social events and informal working groups to meetings with government officials and visiting business missions, every AmCham event is an opportunity to make valuable business contacts with government officials, industry leaders, professionals, and potential business partners.

companies the opportunity to keep up-to-date on the most recent news.

In 2013, AmCham continued to offer informational meetings for its members. These high level networking opportunities gave

Also monthly, members, plus invited guests from the diplomatic corps, international financial institutions and other top

Every month, AmCham hosted a members' only luncheon where senior level representatives from the largest companies in Georgia heard from high level speakers on topics of interest.

In addition, the Chamber hosted events throughout the year that give its members direct access to decision makers. Topics of presentation and discussion included a detailed overview of the government's Partnership Fund and the Co-Investment Fund; in depth analysis of the political trends – and the popular opinions – in Georgia that matter to business; up-to-date information on US sanctions against Iran and how they will affect companies; and much, much more.

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organizations, regularly joined for the American Business Roundtable – traditionally opened by the Honorary President of AmCham Georgia, U.S. Ambassador to Georgia Richard Norland, with an economic and political update from the U.S. Embassy. This provided a one of a kind opportunity for members to receive invaluable insight about the developments that matter to their business.

In 2013, approximately 50 AmCham members were invited to a meeting with then Prime Minister Ivanishvili to discuss the business climate in general and to ask specific questions on areas of concern.

AmCham also co-hosted the Millennium Challenge AccountGeorgia's presentation to the business community – an event attended by then Vice Prime Minister and Minister of Education of Georgia Giorgi Margvelashvili, U.S. Ambassador to Georgia Richard Norland, and Minister of Finance Nodar Khaduri.

In addition to our regular luncheons and roundtables, member companies and their staff had the opportunity to participate in workshops, committee meetings, and meetings with visiting delegations.

AmCham Georgia committees continued to work on all the issues that are important to our members' business, providing member representatives with an important platform to voice their concerns to the government and policy makers in a timely manner.

Currently, AmCham is working through the following committees: Agri-business; Commercial Law and Tax (CLT);

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Corporate Social Responsibility (CSR); Energy, Mining & Utilities (EMU); Human Resources & Education; Information Technologies & Telecommunications (ITT); Tourism; Trade & Transportation.

Committees provide the tools for in-depth discussions and analyses of specific areas of interest. At the committee meetings, business representatives are informed about the latest developments in the laws and policy amendments that will affect their business. In addition, committee heads stay on top of trends, alerting committee members about any changes that could impact them – and giving members the opportunity and the forum to advocate for their interests.

Social events are also a core part of AmCham's efforts to bring its members closer together and facilitate networking. The Chamber regularly organizes social and family events: the 2013 flagship event was the annual Independence Day Picnic, which was attended by nearly 1000 guest made up of AmCham members, the diplomatic community, the Georgian government and the US Embassy community.

The Back to Business Cocktail reception in September 2013 at the Funicular Restaurant overlooking Tbilisi was also a popular event that helped AmCham members return to business mode after the summer holidays.

And, of course, the Chamber's Annual Appreciation Evening at the Sheraton Metechi Palace rooftop terrace was a beautiful way to end the year with a moment of thanks for all members of AmCham.

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AmCham has always been committed to making sure its members receive all the information they need to make informed decisions about their businesses and investments.

The Chamber also works hard to keep member companies upto-date on all the activities, meetings, and opportunities available for them.

Over the past year, AmCham has received a significant increase in media requests for comments on important policy issues related to the labor code and a wide range of topics that are vital to the business climate and the Georgian economy. This outreach has helped position our Chamber as a reliable and valuable source of information and an opinion leader.

Over the past year, AmCham Georgia has worked to improve its communication strategy, including increased activity on Facebook and improved content and distribution for its bimonthly business magazine, Investor.ge.

In 2013 AmCham completely restructured its website to increase the visibility of AmCham activities and better cater to members' needs by featuring significant member events and news. Today, the website allows readers to subscribe to a quarterly AmCham newsletter that has helped expand the readership and reach a broader audience. In addition to our business community members, our quarterly newsletter is read by relevant ministries, diplomatic corps, IFIs, and international organizations.

Investor.ge, the first English-language business magazine published regularly in Georgia, employs the best foreign and local journalists working in the country to bring its readers analytical articles about the issues that matter to business makers. In 2013, the magazine's editorial board – represented by members of the Board of Directors, members and experienced foreign journalists – met in advance of each issue to discuss and debate the magazine's coverage and content.

The magazine serves as a tool for members to stay informed not only about AmCham events, but also to learn about trends that affect their business and is distributed to top level business leaders, government officials, embassies and guests staying in the international hotels.

AmCham has significantly improved its presence in social media. In 2013 alone, there was a three-fold increase in the Chamber's reach on Facebook. The steady pace of growth has been facilitated by regularly sharing information and updates about important AmCham events, as well as by live reporting from important meetings and activities involving our members.

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Statement of Comprehensive Income for the year as of 31 December 2013 2013 GEL

2012 GEL

482,075 57,142 61,330 32,813 14,545

488,494 90,780 60,425 45,200 50,828

647,905

735,727

Revenue Membership fee Grant income Magazine advertisements Donations Other income Expenses Member meetings and events Consultant project Grant expenses Magazine publishing expenses Business trips and conference participation fee Personnel expenses Rent Office and administrative expenses Professional fees Depreciation expenses

45,704

87,614 * 32,475 86,097 84,992

57,138 81,111 7,483 294,069 69,865 31,680 13,409 6,113

280,243 70,250 40,930 26,593 2,886

606,572

712,080

Results from operating activities

41,333

23,647

Interest income Net foreign exchange rate

20,250 1,216

23,798 (819)

Net finance income

21,466

22,979

Surplus before profit tax

62,799

46,626

Profit tax

(3,036)

(2,801)

Net surplus for the year

59,763

43,825

*Includes gala and U.S. presidential election watch breakfast in 2012.

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Statement of Financial Position as of 31 December 2013 2013 GEL

2012 GEL

Non-current assets Property and equipment

39,189

19,473

Total non-current assets

39,189

19,473

Current assets Receivables Prepayments and other current assets Cash and cash equivalents

17,830 11,043 157,172

27,081 1,201 119,761

Total current assets

186,044

148,043

Total assets

225,234

167,516

8,136 27,469 32,054

3,403 34,248 37,651

Fund balance

189,628

129,865

Total liabilities and fund balance

225,234

167,516

ASSETS

LIABILITIES AND FUND BALANCE

Liabilities Payables Advances received Total Liabilities

36a L. ASATIANI ST., TBILISI, 0105, GEORGIA TEL: (995 32) 2226907, E-MAIL: AMCHAM@AMCHAM.GE WWW.AMCHAM.GE WWW.INVESTOR.GE