Investor Presentation

Third quarter and nine-month of 2019 results

Investing in the growth and quality of healthcare

in Georgia
November 2019
ghg.com.ge
 Contents

GHG | Overview

GHG | Strategy

Macroeconomic and industry overview

Annexes

2
 The only fully integrated healthcare provider in the region

Our presence

3
 A unique investment story supported by compelling theme
GHG’s(1) market leading position, a unique business model with significant growth potential and highly experienced
management team make it a credible investment opportunity

1 Market leader Long-term high-growth opportunities 3

✓ The largest healthcare service provider in Georgia: 23.2% market share by number of referral ✓ Low base: Georgia with low per capita expenditure on healthcare – US$324(5), and with only 3.7
hospitals and community clinics beds – 3,320(2). outpatient encounters per capita annually(6), has the vast potential for further increase.

✓ The largest pharmaceuticals retailer and wholesaler in Georgia: 32% market share by sales(3), ✓ Supported by attractive macro environment: Georgia – one of the fastest-growing countries in Eastern
over two million client interactions per month, with c.0.8 million loyalty card members. Europe, is an open and easy emerging market to do business(7), with real GDP growth averaged 4.5%
annually in 2007-2018. c.9% of GDP is spent on healthcare and spending is growing at 11.5% compound
✓ The largest medical insurer in Georgia: 31.9% market share(4) by revenue, c.230,000 insured annual growth rate (“CAGR”) between 2000 and 2014; Government spending more than doubled between
individuals as of September 2019. 2011 and 2018(8).
✓ The largest diagnostics laboratory in Georgia, as well as in the entire Caucasus region (“Mega ✓ Implying long-term, high-growth expansion that is driven by:
Lab”): opened in December 2018.
– Universal Healthcare Program (UHC)
✓ Institutionalising the industry: strong corporate governance; standardised processes; improving
safety and quality by progressive implementation of the Joint Commission International (“JCI”) – Pick-up in polyclinics (outpatient market)
benchmarked standards; own personnel training centre.
– Adding new services

– Developing medical tourism

2 4
Business model with cost and synergy advantages Strong management with proven track record
✓ The single largest integrated company in the Georgia healthcare ecosystem with a cost advantage ✓ Strong business management team – an increased market share by beds from under 1% in 2009 to
due to its scale of operation: 23.2% currently, by building the modern infrastructure. Entered the pharmacy and distribution market in
− The largest purchaser of pharmaceutical products in Georgia 2016, where currently GHG holds 32% market share based on revenues.
− The next largest healthcare services competitor has only 5% market share by beds
✓ Robust corporate governance: exceptional in Georgia’s healthcare sector, as it is the only Premium
✓ Better access to professional management and high-calibre talent: Listed company in the Georgian healthcare industry (LSE: GHG LN)(9); 57% of our shares are owned by
− One of the largest employers in the country: 16,110 full-time employees, including 3,643 physicians, Georgia Capital PLC (LSE: CGEO LN) – a UK listed holding company of a diversified group of
3,396 nurses and 2,945 pharmacists companies following completion of its demerger from BGEO Group PLC on 29 May 2018. The rest of the
shares are owned by institutional investors and by our management as part of the Employee Stock
✓ Referral system and synergies with insurance and pharmacy and distribution businesses:
Ownership Plan (“ESOP”).
− Presence of patient pathway and referral synergies
− Insurance activities provide steady revenue stream for our polyclinics and bolster hospital patient ✓ In-depth knowledge of the local market.
referrals
− Around c.0.8 million loyal customers in our pharmacies with an upside to cross-sell

Sources:
(1) Georgia Healthcare Group established in Georgia and in UK (5) Frost and Sullivan analysis - data for 2016
(2) National Center for Decease Control (“NCDC”). Data as of December 2018, updated by GHG to include the changes before 30 September 2019, excluding specialty beds (6) NCDC statistical yearbook 2018
(3) Total Market size 2018 – Frost & Sullivan analysis; Revenue distribution between competitors represents managements estimates (7) Ranked #6 in World Bank’s 2019 “Ease of Doing Business Report”, ahead of all its neighboring countries and several EU countries.
(4) Market share by gross revenue as of June 2019; Insurance State Supervision Service Agency of Georgia (“ISSSG”) (8) Ministry of Finance, Ministry of Economy 4
(9) GHG Group PLC successfully completed its IPO of ordinary shares on the Premium Segment of the LSE on 12 November 2015.
 Extensive Geographic Coverage

Broad geographic coverage and diversified healthcare services and pharmacy network covering 3/4 of Georgia’s population

3,320 hospital beds

18 hospitals
19 community clinics
15 polyclinics
285 pharmacies

Mestia
1

1 1 1
1
1
Chkhorotsku
Tsalenjikha +1 1
1
1 Martvili 1
Zugdidi 6 Sachkhere
Ambrolauri
1 1 Khoni Tskaltubo Tchiatura
Khobi Senaki
1 1 1
Samtredia +1 1
1 +1 3 1 Tkibuli
Kutaisi
Lanchkhuti
Abasha 4 17 1
1 1
3 Poti
1 Terjola 1 1
Ozurgeti 1 3 2 Georgia 9 7
1 2 Gori 1
2 1 4 Zestafoni Kaspi Akhmeta
Kobuleti
1 Khashuri +1
Baghdati 1 3 Kareli 171 1 Telavi Kvareli
Mtskheta
Number of Hospitals +1 +10
Lagodekhi 1
Chakvi
1 1 1 3
+1 Adigeni Akhaltsikhe 2 1 Borjomi 1 Gurjaani

Number of Community Clinics Shuakhevi

Khulo
1 1 Tbilisi Sagarejo
1
Batumi 13 Aspindza
1
Keda 1 Rustavi
+ Number of Polyclinics Akhalkalaki 2 Tsnori
2 1 1 Marneuli
Bakuriani 7 Gardabani

Number of Pharmacies 1 2
1 1 Bolnisi
1 1
1 +1

Regions of Presence 1 Dmanisi 2

Ninotsminda
1

5
 GHG businesses overview
Hospitals Clinics

Pharmacy and Distribution

285 c.230,000 1
Healthcare services

18 19 15

Medical insurance

Diagnostics
Referral Hospitals Community Clinics Polyclinics Pharmacies Individuals insured Mega Lab

General and specialty Outpatient and basic Outpatient diagnostic and Wholesaler and urban- Range of private Full range of diagnostics
hospitals offering inpatient services in treatment services in retailer, with a insurance products services, including basic
outpatient and inpatient regional towns and Tbilisi and major regional countrywide distribution purchased by individuals and complex laboratory
services in Tbilisi and municipalities cities network and employers tests
major regional cities
Market
share

23.2% by beds(1) (total 3,320 beds) c.3% by revenue 32% by revenue(2) 31.9% by revenue(3) N/A
margin (4)
EBITDA

EBITDA Margin: 25.2% EBITDA Margin: 17.7% EBITDA Margin: 10.4% EBITDA Margin: 8.2% EBITDA Margin: 3.4%

GHG revenue breakdown by segments GHG EBITDA(4) breakdown by segments GHG revenue breakdown by payment sources
1% 4%

Sources
(1) NCDC 2018, updated by GHG to include the changes before 30 September 2019; excluding specialty beds
(2) Total Market size 2018 – Frost & Sullivan analysis, revenue distribution between competitors represents managements estimates
(3) Market share as of 30 June 2019
(4) Excluding IFRS 16 effect 6
 Hospitals business overview

18 Hospitals Referral Hospitals

Revenue share in Group’s revenue

Referral hospitals are located in

Tbilisi and major regional cities and
provide secondary or tertiary level
28% outpatient and inpatient diagnostic,
surgical and treatment services. Our
referral hospitals serve as hubs for
patients within a given region.
EBITDA share in Group’s EBITDA

49%

Highlights 3Q19 3Q18

Change,
y-o-y %
9M19 9M18
Change,
y-o-y %
Revenue (GEL, millions) 68.7 64.1 7.1% 217.7 196.2 10.9%
EBITDA excluding IFRS 16 (GEL, millions) 16.8 16.4 2.6% 54.8 50.9 7.7%
EBITDA margin excluding IFRS 16 (%) 24.5% 25.6% -1.1 ppts 25.2% 26.0% -0.8 ppts

Number of Hospital beds 2,967 2,967 - 2,967 2,967 -

Bed occupancy rate(1) (%) 52.4% 58.5% -6.1 ppts 61.2% 63.3% -2.1 ppts
Average length of stay (days) 5.2 5.4 -0.2 5.4 5.5 -0.1
Average revenue per hospital bed (GEL, thousands) 92.6 86.5 7.1% 146.7 132.3 10.9%
(1) Adjusted to exclude the Tbilisi Referral Hospital and Caucasus Medical Centre; the calculation also excludes emergency beds 7
 Successful ramp-up of Caucasus Medical Centre(1)
Positioned as hospital of choice, the Caucasus Medical ▪ Opened in March 2018
Centre is already in country’s top 3 largest hospitals by
▪ Double-digit EBITDA margin since 1Q19
revenue

Around 60% of revenue

comes from elective care
services

306 9 More than 42% of revenue

is paid out-of-pocket - in
Number of beds Number of operating rooms line with our initial plan

35.8% (2)
1
Occupancy rate Average number of surgeries
per operating theater
(1) Formerly Regional Hospital, rebranded as Caucasus Medical Centre in October 2019
(2) Occupancy rate for 9M19 8
 Successful ramp-up of Tbilisi Referral Hospital
▪ Opened in December 2017
The multi-profile hospital in Tbilisi, covering all types of
tertiary healthcare services ▪ Double-digit EBITDA margin since 4Q18

The hospital also

represents east
Georgia’s referral
hub

332 6
Number of beds Number of operating rooms

46.5% (1)
2
Occupancy rate Average number of surgeries
(1) Occupancy rate for 9M19 per operating theater 9
Investing in service development to cover existing service gaps in the country

Retaining Georgian citizens that used to seek treatment

overseas

Service export to foreign patients

In last three years we have launched more than 120 new healthcare services in our different hospitals, including
some basic services such as ophthalmology and cardio surgery, as well as sophisticated ones such as liver
transplant, transplantation of bone marrow and paediatric kidney transplant.

Developed quality management measures to harmonise them across our integrated network through consistent
protocols, procedures and our recently implemented clinical key performance indicator monitoring system

10
 Clinics business overview

34 Clinics 19 Community Clinics 15 Polyclinics

Revenue share in Group’s revenue

4%
Community clinics are Polyclinics are located
located in regional towns in Tbilisi and major
and municipalities and regional cities and
provide outpatient provide basic and full-
and inpatient diagnostic, scale outpatient
basic surgical and diagnostic and
treatment services to the treatment services,
local population. representing the first
point of customer
interaction.
EBITDA share in Group’s EBITDA

5%

Highlights 3Q19 3Q18

Change,
y-o-y %
9M19 9M18
Change,
y-o-y %
Revenue, of which: (GEL, millions) 10.6 8.9 18.6% 32.5 28.3 15.0%
Community* 5.0 4.5 11.1% 15.5 14.1 9.7%
Polyclinics* 5.5 4.3 26.8% 16.7 13.7 21.9%
EBITDA excluding IFRS 16 (GEL, millions) 1.8 1.2 46.3% 5.8 4.0 45.3%
EBITDA margin excluding IFRS 16 (%) 16.9% 13.7% 3.2 ppts 17.7% 14.0% 3.7 ppts

Number of Community clinic beds 353 353 - 353 353 -

Number of registered patients in Tbilisi c.175,000 c.126,000 49,000 c.175,000 c.126,000 49,000
* Does not reconcile to gross revenue due to corrections and rebates 11
 Focused growth strategy in outpatient market

In December 2018, we entered the Georgian dental

Increase the number of
market and we now have dental clinics in eight polyclinics and
polyclinics in Tbilisi and other large cities in the registered patients
regions

The total number of

registered patients in
Tbilisi polyclinics
currently accounts
183,000

2016 2017 2018

MAY AUG SEP OCT DEC DEC MAR
Start of Launch
polyclinics
expansion #8 #9 #10 #11 #12 #13 #14 #15
ZUGDIDI SABURTALO
DIDUBE
acceleration MTATSMINDA ISANI
POLYCLINIC POLYCLINIC
DIDI DIGOMI BATUMI MTATSMINDA
POLYCLINIC Acquisition
POLYCLINIC POLYCLINIC POLYCLINIC POLYCLINIC POLYCLINIC

process

12
 Pharmacy and distribution business overview
285 pharmacies countrywide
Revenue share in Group’s revenue

GHG pharmacy and distribution business,

country’s largest retailer in terms of both, revenue
59%
and number of bills issued, operates under two
pharmacy brands, each with a distinct positioning:
GPC for the high-end customer segment and
Pharmadepot for the mass retail segment.
285
EBITDA share in Group’s EBITDA

187

105 109

48
40 81
42% 31 98
36 61
22 24
9 4
Shopping Areas Clinic Residential area High street Total
Country’s largest retailer and largest buyer of pharmaceuticals
Significant cost advantage, shared with customers GPC Pharmadepot

Highlights 3Q19 3Q18

Change,
y-o-y %
9M19 9M18
Change,
y-o-y %
Revenue (GEL, millions) 146.8 123.3 19.0% 442.0 377.5 17.1%
EBITDA excluding IFRS 16 (GEL, millions) 15.2 12.4 22.5% 46.1 37.0 24.7%
EBITDA margin excluding IFRS 16 (%) 10.4% 10.1% 0.3 ppts 10.4% 9.8% 0.6 ppts

Number of bills issued (millions) 6.98 6.52 0.46 21.21 19.95 1.26
Average bill size (GEL) 14.2 13.2 7.7% 14.0 13.2 5.8%
Number of customer interaction per month (millions) c.2.3 c.2.2 0.1 c.2.4 c.2.2 0.2

13
 Margin enhancement and growth

Top priority in pharmacy and distribution business

remains to increase profitability by exercising more
supplier synergies and growth of private label products

▪ Currently 37 private label medicines are presented in

our pharmacies.

▪ C.GEL 5 million annualised revenue.

▪ In the first half of 2019, private label personal care

products were introduced in our pharmacies under the
brand name “Attirance”.

▪ We offer a wide range of personal care products and

significantly enhancing our position as market leader
in this segment.

14
 Medical insurance business overview
c.230,000 insured clients Medical insurance
Revenue share in Group’s revenue

8% Offering a broad range of comprehensive

private medical insurance policies that
customers can opt for instead of relying
on the coverage provided under the UHC
and other state funded healthcare
programmes to the Georgian population,
with a wide distribution network.

Our products are mainly offered as

corporate packages to large employers.
EBITDA share in Group’s EBITDA

4%

In 3Q19 and 9M19, 42.6% and 41.6% of

medical expense claims were retained within
the Group.

Highlights 3Q19 3Q18

Change,
y-o-y %
9M19 9M18
Change,
y-o-y %
Revenue (GEL, millions) 19.4 14.2 36.5% 55.8 41.2 35.3%
Loss ratio (%) 73.4% 64.8% 8.6 ppts 80.2% 77.0% 3.2 ppts
EBITDA excluding IFRS 16 (GEL, millions) 2.8 2.7 3.4% 4.6 3.4 34.1%
Combined ratio excluding IFRS 16 (%) 86.7% 82.4% 4.3 ppts 92.8% 93.1% -0.3 ppts

Renewal rate 77.1% 76.8% 0.3 ppts 77.4% 73.3% 4.1 ppts
15
 Diagnostics business overview

Diagnostics Mega Lab

In December 2018, we added diagnostics

1% business under GHG, an important new
business line for the Group, by opening
Revenue share in Group’s revenue

Mega Laboratory.

Mega Lab provides full range of accurate,

high-quality diagnostics services, including
basic and complex laboratory tests to the
entire population of the country.

Basic tests performed at Mega Lab

include:

• Biochemistry • Cardiac marker

• Haematology • Tumour marker
• Haemostasis • Immunology
• Hormone testing • PCR-parasitology

Highlights 3Q19 9M19

Revenue (GEL millions) 1.1 3.4
EBITDA margin excluding IFRS 16 (%) 1.6% 3.4%

Number of patient served (‘000) 87 214

Number of tests performed (‘000) 196 552
Average number of tests per patient 2.3 2.6

16
 Launch of the largest laboratory in the region

Mega Lab Developing Lab retail

▪ High-capacity automated systems enables GHG to provide accurate, ▪ Since June 2019, opened seven blood collection points in one of
high quality results for the country’s whole population. our pharmacies and plan to continue the process to arrive at c.50
blood collection points in coming years.

▪ Mega Lab started to develop a retail network and capitalise on our ▪ The Mega Lab will also work on additional external contracts,
pharmacy and distribution business’ scale - being the largest retailer serving healthcare facilities outside the Group.
in the country.

Lab covers a full set of

clinical and pathology
tests, some of which are
being introduced in the
region for the first time

Laboratory tests introduced in the region for the first time, performed
with the latest technologies, include:

The multi-disciplinary laboratory

is equipped with the most up-to- Electrophoresis
date infrastructure and state-of- Flow cytometry
the-art equipment PCR-genetic
PCR-microbiology
17
 GHG segments are clear market leaders
in a fragmented competitive landscape
Leader in Georgia with clear and established #1 market positions in healthcare services, pharma and medical insurance markets

Healthcare services (Hospitals and Clinics) Pharmacy and distribution Medical Insurance
(Number of Beds as of September 2019)(1) 38
(Revenue, 2018 GEL millions)(2) (Gross
38 premium revenue 2Q19, GEL million)(3)
% %

GHG Hospitals 2,967 21% GHG in medical insurance 34 32%

GHG in pharma 519 32%
GHG Clinics 353 3% 30%
Vienna Insurance Group 32

Aversi Group 714 5%

PSP 28% Ardi 12 12%
460

Vienna Insurance Group 615 4%

PSP 6 5%
Gudushauri chachava 485 3%
Aversi 305 19%
Aversi 5 5%
Inova Group 209 1%

IC Group 2 2%
PSP 145 1%
Other 338 21%
Other 16 14%
Other 8,823 62%

Market share

Sources:
(1) NCDC, data as of December 2018, updated by GHG to include changes before 30 September 2019; excluding speciality beds
(2) Total market Frost & Sullivan analysis 2018.; revenue distribution between competitors represents managements estimates
(3) ISSSG as of 30 June 2019
18
 From Capex to cash flows
From a capital expenditure perspective, we have now completed the vast majority of our
major development projects

Peak Capex stage

Continued renovation works on Capex
projects including reconstruction of two
flagship hospitals, launching new services,
opening new polyclinics

Start of the Capex

programme
Declared three year Capex programme
at IPO on November 2015
Phase out from Capex
programme

120.0 111.0
9.4
100.0
89.3
9.6
GEL millions

80.0 71.2
66.3
7.2
60.0 11.1
101.6
40.0 79.7
64.0 30.4
55.2 9.8
20.0
20.6
-
2015 2016 2017 2018 9M19

Development Capex Maintenance Capex

Source: GHG internal reporting 19
 Contents

GHG | Overview

GHG | Strategy

Macroeconomic and industry overview

Annexes

20
 What is next…
Leveraging existing infrastructure, people, competencies and client base

Manage customers on an integrated level

› GHG serves around three million unique customers across its business
lines annually
Focusing on:
› Customer integration within all of our segments accounts for only c.6%
Operational performance

Financial performance:

Hospitals › Cash flow generation

› Capital allocation
› ROIC

Pharmacy and Growth pipeline

Clinics distribution

Medical
Insurance

Diagnostics 21
 GHG strategy

Operational Performance Financial performance Growth pipeline

1 Utilisation 1 Cash flow generation 1 Business organic growth

› Bed occupancy rate at c.60.0% › Higher earnings › Supportive macro environment
currently, still room to grow › Reduced capital requirements › Growing healthcare budget
› Reduced cost of funding › Low base on healthcare
2 Optimisation › Increasing penetration
› Disposal of unused assets
› Disposal / transforming low ROIC
assets 2 Capital allocation 2 Growth projects - shaping new
› Decreasing cost of funding › Deleveraging markets, such as:
› Minority buyouts › Medical tourism
Efficiency › Dividend policy › Lab retail
3 › Investing in new opportunities › Aesthetic
› Service processes automatisation
› Full roll-out of HIS › Clinical trails

4 Digitalisation
› Fully integrated health information
system will help us to manage
customers on an integrated level

22
 Businesses major growth drivers

Pharmacy and
Hospitals Polyclinic Medical Insurance Diagnostics
distribution

Matured hospitals Increase number of Expending retail Growing the number of Building effective
1 organic growth in line 1 registered patients
1 footprint
1 insured clients
1 logistics system for
with market Group’s healthcare
2 Increasing Group Retail margin Enhance gross profit facilities
Successful ramp-up of referrals
2 enhancement (private
2 through introduction of
2
newly-launched label products) “fee business” (motor 2 Develop retail network
hospitals Adding new services CASCO distribution,
3 (such as dental, 3 New retail categories motor TPL distribution)
Supporting growth aesthetic) (lab service, beauty) 3 Attract B2B clients
3 pillars (medical Increasing retention rates
3
tourism; clinical trials) 4 Growing wholesale within the Group
4 Digitalisation revenue (hospital Digital Channels
4
Forming joint ventures supplies)
4
in synergetic businesses
5 Digital channels
Digitalisation
5

23
 GHG strategic targets
Segments’ medium to long term targets

› Double digit revenue CAGR

Hospitals

› Gradually improving to 28-30% EBITDA margin

GHG medium to long term targets

› Double digit revenue CAGR – 20%+
Clinics

› Gradually improving to 25%+ EBITDA margin › Double digit revenue CAGR next 5 years

›
Pharmacy and distribution

Mid-teen EBITDA CAGR next 5 years

› Double digit revenue CAGR › Gradually approaching ROIC c.15%-17%

› 9%+ EBITDA margin

Medical Insurance

› Increase contribution to the Group segments

› Combined ratio <97%

24
 Clinical – Strategy

Our main challenges What we achieved Goal

X ✓ •• 4,500 doctors retrained in 48 programmes

4,900 nurses retrained in 22 programmes
• 178 ToTs developed
• 179 residents in 29 specialties
• 24 residents graduated this year out of which 23 are
Lack of doctors & nurses: quality employed in our healthcare facilities Complete first round of stuff retraining by 2020
and new generation • 90% of nursing school programme graduates are employed
in our healthcare facilities
• Our curriculum was adopted by Ministry of Education and
is mandatory for other nursing schools in Georgia

X ✓
• 2016-2019 - implementation of quality management
framework Complete quality management framework
• Local quality teams - operational implementation.
• KPI’s - defined
Quality of basic medical care • Infectious control - Antibiotic Stewardship Program being
implemented Receive JCI accreditation on some of our
• Training activities- ongoing major referral hospitals in coming years

X ✓

Continue to launch new services

• More than 120 new services were launched over last
Lack of services two years
Capture patient flow export.

25
 Contents

GHG | Overview

GHG | Strategy

Macroeconomic and industry overview

Annexes

26
 Georgia | rapidly developing reform driven economy

Area: 69,700 km
Population (2018): 3.7 million people
Life expectancy: 73.5 years
Official language: Georgian Top
Reformer
Literacy: 100% Samegrelo-Zemo
Ease of Doing Business Svaneti Racha-Lechkhumi
Capital: Tbilisi (Population of 1.1 million people)
Best Improvement since Abkhazia and Kvemo Svaneti Mtskheta-
Currency: Lari (GEL) 2005 Mtianeti

Shida
Nominal GDP(1): 2018 GEL 41.1bln (US$16.2bln) Imereti
Kartli Kakheti
Real GDP growth rate 2014-2018: 4.6%, 2.9%, 2.8%, 4.8%, 4.7% Guria
Samtskhe- Kvemo
Real GDP 2007-2018 annual average growth rate: 4.5% Adjara Javakheti Kartli
GDP per capita 2018 (PPP, international dollar) per IMF: 11,485 Tbilisi
Inflation rate (e-o-p) 2018: 1.5%
External public debt to GDP 2018: 34.3%

Sovereign ratings:

S&P BB/Stable, affirmed / upgraded in October 2019

Moody’s Ba2/ Stable, affirmed / upgraded in September 2019
Fitch BB/ Stable, affirmed / upgraded in February 2019

Source:
(1) GeoStat

27
 Georgia | top improver on World Bank’s Ease of Doing Business Report
Ease of Doing Business | 2019 Rankings on Doing Business Topics – Georgia

New Zealand 1
2 2
Singapore 2 1 4
8
Georgia 6 up from 9th in 2018 12
Norway 11 16
7
US 8
21 27
Estonia 16
Germany 24 31

Ranking
Azerbaijan 25 39
43
Kazakhstan 28 41
Russia 31
51
Poland 33
60
Czech rep. 35
61
Armenia 41
Turkey 43 71
Italy 51 Starting a Dealing with Getting Registering Getting Protecting Paying Trading Enforcing Resolving
Ukraine 71 Business Construction electricity Property Credit Minority Taxes Across Contracts Insolvency
Permits Investors Borders
India 77

Source: WB Doing Business Report

Global Corruption Barometer | TI 2018 Economic Freedom Index | 2019

UK 7
Lithuania 59
USA 12
Czech Republic 59
Estonia 15 Top 8 in Europe region out of 44 countries
Georgia 58 Georgia is on a par with
Latvia EU member states Top 8 in Europe region out of 44 countries
58 Georgia 16
Slovakia 50 Latvia 35
Romania 47
Bulgaria 37
Montenegro 45
Bulgaria 42 Romania 42
Turkey 41 Azerbaijan 60
Bosnia & Hezegovinia 38
Hungary 64
Armenia 35
Moldova 33 Turkey 68
Ukraine 32 France 71
Kazakhstan 31 Italy 80
Russia 28
Russia 98
Azerbaijan 25
Uzbekistan 23 Ukraine 147

Source: Transparency International, Heritage Foundation, World Bank, Trace International. Source: Heritage Foundation 28
 Georgia | positive economic outlook
GDP Growth Expected to Continue Clear Strategy to Achieve Long Term Growth

Historical Forecast
Liberty Act (effective January 2014) ensures a credible fiscal and monetary
Real GDP 7.2 6.4 3.4 4.6 2.9 2.8 4.8 4.7 4.6 4.8 5.0 5.2 5.2 Liberal Reforms framework
Growth, % Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%
and Prudent
Policy Business friendly environment and low tax regime (attested by favourable
international rankings)

56.7 61.4 Access to a market of 2.8bn customers without customs duties: Free trade
48.3 52.3
41.1 44.7 agreements with EU, China, Hong Kong, CIS and Turkey and GSP with USA,
34.0 37.8
26.2 26.8 29.2 31.8 Regional Canada, Japan, Norway and Switzerland; FTA with India and Israel under
20.7 24.3
Logistics and consideration.
Tourism Hub Tourism revenues on the rise: tourism inflows stood at US$ 3.2b in 2018 and total
arrivals reached 8.7mln visitors in 2018 (up 9.8% y-o-y), out of which tourist
2010 2011 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F 2022F 2023F
arrivals were up 17.0% y-o-y to 4.8mln visitors

Nominal GDP, GEL bln FDI at US$1.3 billion (7.8% of GDP) in 2018
Sources: GeoStat, IMF Strong FDI FDI averaged 9.8% of GDP in 2007-2018

Diversified nominal GDP structure, 1H19

Visa-free travel to the EU is another major success in Georgian foreign policy.
Georgian passport holders were granted free entrance to the EU countries from 28
Support from March 2017
Other International
Education 5%
Trade
Discussions commenced with the USA to drive inward investments and exports
Hotels and restaurants 5% 17%
Community Strong political support from NATO, EU, US, UN and member of WTO since
3%
2000; Substantial support from DFIs, the US and EU
Financial intermediation
5% One of the fastest developing economies in the region…..
Healthcare Real GDP growth, % 2007-18 Average
6%

Industry
17% 4.5 4.9
Real Estate 3.6 3.7 3.8
3.0 3.1
7% 2.4
1.7 2.0 2.0
1.5

Agriculture
8%
-0.3
Transport and
communications
Public administration 11%
8% Construction
8%

Sources: GeoStat Source: IMF 29

 Georgia | Diversified sources of capital
Current account balance (% of nominal GDP) Exports and Re-exports
Double digit shrinking in the trade deficit helped CAB to improve to a historic low in 1H19
30% 30% 10.0
17.2% 0.8
15.1%
20% 12.3% 11.0% 11.8% 10.9%
13.0% 20% 9.0
8.4% 9.6% 7.1%
4.3% 3.4% 4.7% 6.2% 7.3% 7.8% 6.5% 6.3% 7.8% 6.2%
8.0
10% 10% 1.1 0.9 0.5
7.0 0.9
0% 0% 0.4 0.3

US$ billion
3.6
6.0
0.7 3.1
-10% -7.3%
-4.6% -10% 5.0
3.1 3.1 2.5 0.4
0.3 0.5 2.6
-20% -20% 4.0 0.2 0.2 2.5
2.5
-30% -30% 3.0 0.1 0.2 1.9
1.9
0.1 2.1
2.0 0.0 1.8 1.6 4.0 4.5
0.0 0.0 0.0 1.4 3.3
-40% -40%
1.0 1.0
1.3 2.6 3.0 3.0 3.1 2.1
1.6 2.0
2000
2001

2002
2003
2004

2005
2006

2007
2008
2009

2010

2011
2012

2013
2014

2015
2016

2017
2018

1H2019
0.5 0.5 0.6 0.7 0.9 1.1 1.3 1.3
0.0 0.4 0.4 0.4 0.5 0.6 0.7

Goods, net Services, net Investment income, net

Current transfers, net Current account FDI Service exports Goods exports, geo-originated Re-exports

Source: NBG Source: NBG

Tourism revenues to GDP Number of visitors on the rise

3600 25%
10.0
20% 8.7
3100 19% 9.0
18% 20% 7.9
8.0 7.2
2600 15% 6.7
14% 7.0 6.3
US$ million

15% 5.7 5.9

2100
11% 11% 6.0
4.7

Millions
1600 9% 5.0
10%
6% 3.1
4.0
1100
5% 3.0
600 2.0
100 0% 1.0
2011

2012

2013

2014

2015

2016

2017

2018

1H2019

-
2011 2012 2013 2014 2015 2016 2017 2018 9M2019

Tourism inflows, US$ mn, LHS Tourism revenues, % of GDP

Source: National Bank of Georgia, GeoStat Sources: GNTA, NBG

30
 Long-term, high growth prospects
Favorable government healthcare policy
Government finances reached c.40% of Government spending on healthcare was
Government expenditure on healthcare as a % of GDP High private spending and growing public sector
total healthcare costs in 2016, from c.20% 6.7% of state budget in 2013, which grew up
in 2012 to 9%-10% in recent years
increased from 2% in 2013, up to 3% in 2016 year participation on the back of UHC implementation(4)

General government expenditure on health as a General government expenditure on health as a Government expenditure on health as % of GDP in 2016(2)
percentage of total expenditure on health in 2016(2) percentage of total government expenditure in 2016(2) 2012

90 25 16.0 International Aid,

80 14.0 3%
70 20 12.0 Public, 18%
60 10.0
50 15
37 10.3 8.0
40
30 10 6.0
3.1 Private
20 4.0
5 Insurance, 9%
10 2.0
0 0 0.0 Out-of-pocket, 70%

Saudi
Russia
USA

France

Japan

Bulgaria

Malaysia
Georgia
Thailand

Germany
Saudi

UK

Estonia
Poland

UAE
France

Turkey
Malaysia

Thailand

S.Africa
UAE
Estonia
UK

Poland
USA

Germany

Georgia
Japan

Bulgaria
Russia
Turkey

S.Africa

USA

Russia

Saudi
France

Japan

Bulgaria

Malaysia
Georgia
Germany

Estonia
Poland
UK

Thailand

UAE
Turkey

S.Africa
State financing of healthcare increasing for the last
Growth in Healthcare Services Market Expected to Continue 1
several years

Double digit growth on the back of favorable dynamics expected State healthcare spending dynamics(3) 2014
GELm GELm
7,000
CAGR International Aid,
6,000
‘19-’21 1,800 10% 12%
3%
4,765 1,600 9% 9% 9%
5,000 4,397 8% 10%
4,062 1,400
3,760 968 10%
4,000 3,488 884 1,200 8%
3,062 3,218 806
734 1,000 Public, 32%
3,000 2,464 669 6%
607 1,722
2,034 696 1,504 1,611 7% 800
1,552 1,716 543 1,311 1,404 681 710 760 754
2,000 438 1,092 1,217 600 574 4%
305 343 908
782 400
1,000 675 714 1,752 1,903 2,075 2%
1,273 1,395 1,508 1,622 200
573 659 814 1,013 9% 281 343 305 329 337 Private Insurance,
- - 0% 6% Out-of-pocket, 59%
2011 2012 2013 2014 2015 2016 2017 2018E 2019F 2020F 2021F 2015 2016 2017 2018 2019
Pharma Hospitals Polyclinics
State Healthcare Spending - UHC
Hospitals market includes revenue of c.10% from specialty beds, which is non-addressable market for GHG
Polyclinics market excludes dental and aesthetic services State Healthcare Spending - Other
Healthcare spending as a % of total state spending
Sources:
(1) Frost & Sullivan analysis 2017
(2) World Bank
(3) Ministry of Finance of Georgia
(4) Global health expenditure database – World Health Organisation, Frost & Sullivan analysis
31
 Long-term, high growth prospects
Rapidly growing healthcare market
Demand Analysis Increasing Overall Disease Incidence…
Number of Surgical Operations Outpatient encounters per capita Outpatient encounters per capita, Georgia VS other countries Number of Registered Patients with 1st Time Diagnosis

2500.0
10.0
2000.0
222 3.9 3.9 8.4
3.7 7.4
3.5 3.5
3.3
2.8 1500.0
Thousands

2.5 2.5
2.3
4.1 4.4
3.2 3.9 4.0 1000.0
91
2.5
500.0

Russia
Malaysia
Georgia
South Africa

US

Poland
UAE

Turkey
Thailand
0.0
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2004 2018

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Source: NCDC Source: NCDC Source: Frost and Sullivan Analysis 2017 Source: GeoStat

… Including a Growing Incidence of Lifestyle Diseases Per 100,000

Low Expenditure on Healthcare Population

Expenditure on healthcare, % of GDP 6,000

Per capita expenditure on healthcare, current US$

5,000
8000 18.0 Growth opportunities:
6000 Growth opportunities: 16.0 8.4% of GDP spent on 4,000
4000 US$349 expenditure per
14.0 healthcare
2000 capita on healthcare
12.0 3,000
1,500
10.0 8.4%
2,000
1,000 8.0
6.0 1,000
500 349 4.0
2.0 -

2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Germ…

- -
Thailand
Malaysia
UK
France

Poland
USA

Russia

Bulgaria

UAE
Georgia

Saudi
Thailand
Malaysia

Japan

Turkey
Estonia
UK
France
Germany

Poland

S.Africa
USA

Russia

Bulgaria

UAE
Georgia
Japan

Turkey
Estonia

S.Africa
Saudi

Diseases of circulatory system

Endocrine, Nutritional, and metabolic Diseases

Source: World Bank 2014 Source: World Bank 2016 Source: NCDC
32
 Long-term, high growth prospects
Favorable government healthcare policy – 90% of hospital capacity is private
Capacity-wise Georgia stands alongside US, UK and Turkey

Optimising bed capacity over the years (Total number of beds) Beds per 1,000 people
Source: World Bank 2017

16
Cold War legacy 14
43,200 12
10
31,700 15,262 8
21,300 14,002 6
16,500 13,397 4 2.6
12,100 12,744
2
0
1990 1995 2000 2006 2010 2014 2015 2016 2017

Note: (*) Target market bed capacity = Total market bed capacity of 15,262 beds – 1,910 specialty Source: World Bank 2013
beds at penitentiary, TB and psychiatric clinics

With significant room for optimisation in terms of service quality, as indicated by:
However, physician overcapacity yet to be addressed
Under 5 Mortality Rate… and Life Expectancy At Birth

Number of physicians per 1,000 people Under 5 mortality per 1,000 live births Life expectancy at birth, total (years)

1:1.25
6.00 50 90.0
Nurse to Doctor ratio
4.8 45
5.00 85.0
40
80.0 78
4.00 35
30 75.0
3.00 25 70.0
20 65.0
2.00 15 10.8
60.0
10
1.00 55.0
5
Germ…

Thail…
Mala…
- 0 Bulga… 50.0
UK
France

Poland
USA

Georgia
Russia
Turkey

UAE

Saudi
Japan

Estonia

S.Africa

Germany

Malaysia
Estonia
Poland
USA

France
UK

Russia
Turkey
Japan

Bulgaria

UAE

Saudi
Thailand

Georgia

S. Africa
Source: World Bank 2015 Source: World Bank 2017 Source: World Bank 2017
33
 Contents

GHG | Overview

GHG | Strategy

Macroeconomic and industry overview

Annexes

34
 Developing medical tourism
The increasing number of international arrivals in In 2018, the number
of tourists in
Georgia represents a natural base for developing Georgia
reached 4.8 million,
medical tourism in the country up 17% y-o-y

▪ Upgraded infrastructure
▪ Upgraded quality in healthcare facilities
What we have done ▪ Added new services to close existing service gaps in
the country
▪ Preventing local patients from travelling abroad
▪ Developing medical tourism strategy
▪ Developing a service structure for foreign patients
What we are doing ▪ Increasing awareness within post-Soviet countries
through different marketing activities and road
shows

Active marketing campaigns and

other development initiatives led to
High quality of drove a 37% y-o-y increase in the
healthcare number of international patients,
compared to top which led to 9M19 revenue of a
visitor countries GEL 3.5 million (up 43% y-o-y).

Cost arbitrage
compared
to medical tourism
destination countries
35
 GHG – shareholder structure and share price

Strong support from institutional investors at IPO(1) Stock Price Performance(2)

Institutional
Investors represent 9-Nov-2015, 1.84
7% 11-Nov-2019, 1.75
37% of the shareholders 3.50

37%
3.00
Institutional investors
2.50

GBP
57%
Georgia Capital 2.00

Managament and other 1.50

1.00

9-Apr-2016

9-Apr-2017

9-Apr-2018

9-Apr-2019
9-Feb-2016
9-Mar-2016

9-Feb-2017
9-Mar-2017

9-Feb-2018
9-Mar-2018

9-Feb-2019
9-Mar-2019
9-Dec-2015

9-May-2016

9-Jul-2016

9-Dec-2016

9-May-2017

9-Jul-2017

9-Dec-2017

9-May-2018

9-Jul-2018

9-Dec-2018

9-May-2019

9-Jul-2019
9-Nov-2015

9-Jan-2016

9-Jun-2016

9-Aug-2016
9-Sep-2016
9-Oct-2016
9-Nov-2016

9-Jan-2017

9-Jun-2017

9-Aug-2017
9-Sep-2017
9-Oct-2017
9-Nov-2017

9-Jan-2018

9-Jun-2018

9-Aug-2018
9-Sep-2018
9-Oct-2018
9-Nov-2018

9-Jan-2019

9-Jun-2019

9-Aug-2019
9-Sep-2019
9-Oct-2019
9-Nov-2019
Geographically well-diversified institutional shareholder base(1)

UK & Ireland– 34%

USA & Canada – 34% Average trading daily volume Market Capitalisation(3)
19%
Luxemburg – 13%
34% Other– 19%

13% USA & Canada 150.00 350.0

295.8
UK & Ireland 300.0
Luxemburg
250.0

US$ thousends
34%

US$ millions
Other 100.00 88.3
200.0

Top Investors (1) 150.0

50.00 100.0
Georgia Capital 56. 8%
50.0
Wellington Management 6.6%
- -
T – Rowe Price 7.2% 11-Nov-2019
9M19

Note:
(1) As of 28 September 2019
(2) Share price change calculated from the closing pries of GHG LN, starting from trading date 9 November 2015 to the price of GHG LN as of 11 November 2019
(3) Source: Bloomberg; Market Capitalisation of GHG as of 11 November 2019, GBP/USD exchange rate 1.28
36
 Analyst coverage

Consensus Target Price is 3.19 GBP

GBP 3.3 GBP 3.34 GBP 3.75 GBP 1.85 GBP 3.60 GBP 3.68 GBP 2.60 GBP 3.40
*as of 17 Feb 2019 *as of 20 May 2019 *as of 14 Aug 2019 *as of 14 Aug 2019 *as of 14 Aug 2019 *as of 22 May 2018 *as of 26 jun 2019 *as of 18 Jan 2019

37
 Robust corporate governance, exceptional in Georgia's healthcare sector
Board of Directors – majority independent members
The Board is composed entirely of Non-Executive, independent directors (except for the chairman and CEO) and meets quarterly to define
the strategy and how to move forward for which management is responsible to execute.
William Huyett | Independent Non-executive Chairman | Experience:. Mike Anderson | Independent Non-executive Director | Experience: Formally a
Currently Chief Operating Officer of Ironwood Pharmaceuticals. Prior to that Medical Director at Chelsea and Westminster hospital, currently medical
Director Emeritus of McKinsey and Company, Inc. Currently also Georgia director for North West London Reconfiguration Programme and physician at
Capital board member. Chelsea and Westminister Hospital.

David Morrison | Senior Independent Non-executive Director | Experience: Fabian Blank | Independent Non-Executive Director | Experience: Independent
senior partner at Sullivan & Cromwell LLP prior to retirement; currently also investor and senior advisor in healthcare and digital health. Former Co-owner
Georgia Capital board member. and CEO of a midsized rehab clinic group focused on post acute treatment in
orthopedics and cardiology. Previously Partner at McKinsey & Company, Inc.,
focused on growth topics in tech and healthcare.

Irakli Gilauri | Non-Executive Director | Experience: currently Chairman and

CEO of Georgia Capital PLC; formerly CEO of BGEO Group PLC; MS in Nikoloz Gamkrelidze | Director, CEO at GHG | Experience: previously BGEO
banking from Cass Business School, London; BBS from University of Group CFO, CEO of Aldagi BCI and JSC My Family Clinic; World Bank
Limerick, Ireland. Health Development Project; Masters degree in International Health
Management from Imperial College London, Tanaka Business School.

Ingeborg Oie | Independent Non-executive Formerly senior research analyst

covering medical technology and healthcare Services sector at Jefferies;
analyst in the medtech research team at Goldman Sachs.

Committees
Jacques Richier | Independent Non-executive Director | Experience: Currently
Chairman and CEO of Allianz France and Chairman of Allianz Worldwide Audit committee – recommending the financial statements to our Board, and matters such as the
Partners; Formerly CEO and Chairman at Swiss Life France. risk of fraud, external auditors, annual external audit, financial and non-financial risk
Nomination committee – review the structure, size and composition (including the skills,
knowledge, experience and diversity) of our Board. To oversee appointments to and the succession
of the Board.
Tim Elsigood | Independent Non-executive Director | Experience: Currently Remuneration committee – determine and make recommendations to our Board regarding the
Consultant Advisor to Abraaj in Tunisia and Morocco. Extensive international framework or broad policy for the remuneration
healthcare management experience including time in Greece, Romania,
Clinical quality and safety committee – monitoring our non-financial risks, including clinical
Ukraine and Russia. Former Senior VP for Business Development at Capio
performance, health and safety and facilities
AB, VP for Medsi Group and CEO of Isida Hospital.

Note : Senior Executive Compensation Policy applies to top executives and envisages long-term deferred and discretionary awards of securities and no cash bonuses to be paid to such executives 38
 Robust corporate governance
exceptional in Georgia's healthcare sector
Management
Nikoloz Gamkrelidze | Director, CEO at GHG; formerly Deputy CEO Enrico Beridze | Head of Business Development and Strategic
(Finance) of BGEO Group PLC and CEO of Insurance Company Aldagi Marketing (effective January 2019); prior to this role, CEO GEPHA;
15 years experience in pharmaceuticals field, formerly CEO of ABC
Pharmacia

Irakli Gogia | Deputy CEO, Finance and Operations; formerly Deputy CEO
at JSC Insurance Company Aldagi, CFO at Liberty Consumer, 4 years of
Mikheil Abramidze | Chief Operating Officer, Pharmacy and
experience at Ernst & Young and Deloitte & Touche Distribution; (effective January 2019). 15 years experience in
pharmaceuticals field, formerly COO of ABC Pharmacia

David Vakhtangishvili | Deputy CEO, Chief Risk Officer; formerly CFO of Mikheil Dolidze | Chief Operating Officer, Diagnostics (effective
JSC Bank of Georgia, 9 years experience at Andersen and Ernst &Young
December 2018); formerly Deputy Minister of Health, Labour and
Social Affairs of Georgia from 2010 to 2012. 18 years of experience in
the healthcare management and held various managerial positions

Giorgi Mindiashvili | Chief Operating Officer, Hospitals; prior to this role, Nino Kortua | Chief Legal Officer; 14 years experience in insurance
Deputy CEO, Commercial; formerly CFO of JSC Insurance Company field as a lawyer, formerly head of Aldagi Legal Department
Aldagi, formerly Supervisory Board member of JSC My Family Clinic

Giorgi Gordadze | Chief Operating Officer, Clinics; prior to this role, Head Medea Chkhaidze | Chief HR Officer; 10 years experience in human
of Polyclinics Business (outpatient clinics); (effective May 2017), formerly resource management, formerly Head of Personnel Management
Commercial Director at GPC, 20 years experience in pharmaceuticals Division at Aldagi Insurance Company
business

Nino Chichua | Chief Quality Officer; 13 years experience in

Givi Giorgadze | Chief Operating Officer, Medical Insurance; Since seven
Marketing, formerly CEO at Public Service Hall (LEPL)
years experience in banking sector, formerly Director of Corporate Sales at
Insurance Company BCI

Manana Khurtsilava | Chief of Internal Audit; 8 years experience in

Gregory (“Gia”) Khurtsidze | Deputy CEO, Clinical; two years experience internal control/internal audit. Formerly head of the internal audit
as Clinical Director of the National Center of Internal Medicine at New
department of Insurance Company Aldagi.
Hospital in Tbilisi, worked as a physician and held administrative roles at
various leading healthcare institutions in the USA
39
 Long-term, high growth prospects
Favorable government healthcare policy

Healthcare coverage of Georgia’s 3.7m population:

Key Principles of UHC Programme
▪ UHC was introduced in February, 2013 and replaced most of the PMI UHC

previously existing state-funded medical insurance plans

Overview ▪ The main goal is to provide basic healthcare coverage to the entire
population 2014
PMI SIP UHC

Financing ▪ UHC is fully financed by the government

and ▪ UHC doesn’t reimburse 100% of costs in most cases, leaving substantial 2013
top-up room for out-of-pocket payments by patients
mechanism PMI SIP OOP

▪ UHC beneficiaries may select any healthcare provider enrolled in the

programme 2012
Beneficiaries ▪ Actual prices charged to patients by healthcare providers are not regulated
and providers by the state PMI SIP OOP

▪ Any provider, whether private or public, is eligible to participate in the

programme

OOP

OOP – out-of-pocket
UHC – Universal Healthcare Program
PMI – Private Medical Insurance
SIP – State Insurance Program
PMI, UHC, SIP include co-payments
Source: Ministry of Health of Georgia
40
 GHG – Income statement, 9M19

Hospitals Clinics Pharmacy and Medical insurance Diagnostics Eliminations GHG

Income Statement, nine-month, distribution
Change, Change, Change, Change, Change, Change,
GEL thousands, unless otherwise noted
9M19 9M18 Y-o-Y 9M19 9M18 Y-o-Y 9M19 9M18 Y-o-Y 9M19 9M18 Y-o-Y 9M19 9M18 Y-o-Y 9M19 9M18 9M19 9M18 Y-o-Y

Revenue, gross 217,686 196,224 10.9% 32,536 28,296 15.0% 441,993 377,532 17.1% 55,802 41,242 35.3% 3,412 2,056 66.0% (48,079) (22,944) 703,350 622,406 13.0%
Corrections & rebates (1,783) (2,024) -11.9% (280) (428) -34.6% - - - - - - - - - - - (2,063) (2,452) -15.9%
Revenue, net 215,903 194,200 11.2% 32,256 27,868 15.7% 441,993 377,532 17.1% 55,802 41,242 35.3% 3,412 2,056 66.0% (48,079) (22,944) 701,287 619,954 13.1%
Costs of services (126,039) (112,435) 12.1% (18,173) (15,928) 14.1% (330,059) (282,586) 16.8% (46,884) (33,799) 38.7% (2,387) (1,611) 48.2% 47,028 21,627 (476,514) (424,732) 12.2%
Cost of salaries and other employee benefits (76,250) (69,360) 9.9% (11,443) (10,240) 11.7% - - - - - - (800) (693) 15.4% 4,564 2,898 (83,929) (77,395) 8.4%
Cost of materials and supplies (36,497) (31,602) 15.5% (1,997) (1,864) 7.1% - - - - - - (1,281) (901) 42.2% 4,587 8,174 (35,188) (26,193) 34.3%
Cost of medical service providers (3,101) (2,849) 8.8% (3,185) (2,462) 29.4% - - - - - - (82) - NMF 3,576 2,964 (2,792) (2,347) 19.0%
Cost of utilities and other (10,191) (8,624) 18.2% (1,548) (1,362) 13.7% - - - - - - (224) (17) NMF 711 361 (11,252) (9,642) 16.7%
Net insurance claims incurred - - - - - - - - - (44,768) (31,741) 41.0% - - - 10,377 7,230 (34,391) (24,511) 40.3%
Agents, brokers and employee commissions - - - - - - - - - (2,116) (2,058) 2.8% - - - - - (2,116) (2,058) 2.8%
Cost of pharma – wholesale - - - - - - (106,388) (80,103) 32.8% - - - - - - 23,213 - (83,175) (80,103) 3.8%
Cost of pharma - retail - - - - - - (223,671) (202,483) 10.5% - - - - - - - - (223,671) (202,483) 10.5%
Gross profit 89,864 81,765 9.9% 14,083 11,940 17.9% 111,934 94,946 17.9% 8,918 7,443 19.8% 1,025 445 130.3% (1,051) (1,317) 224,773 195,222 15.1%
Salaries and other employee benefits (23,591) (21,174) 11.4% (5,452) (4,917) 10.9% (37,995) (33,727) 12.7% (3,717) (3,221) 15.4% (755) (163) NMF 515 912 (70,995) (62,290) 14.0%
General and administrative expenses (10,820) (10,305) 5.0% (3,450) (2,923) 18.0% (30,331) (25,404) 19.4% (1,323) (1,024) 29.2% (268) (199) 34.7% 552 420 (45,640) (39,435) 15.7%
Impairment of receivables (3,163) (3,493) -9.4% (109) (60) 81.7% (180) (27) NMF (342) (259) 32.0% (4) - NMF 657 404 (3,141) (3,435) -8.6%
Other operating income 2,551 4,150 -38.5% 693 (71) NMF 2,690 1,191 125.9% 1,027 463 121.8% 117 (7) NMF (672) (421) 6,406 5,305 20.8%
EBITDA excluding IFRS 16 54,841 50,943 7.7% 5,765 3,969 45.3% 46,118 36,979 24.7% 4,563 3,402 34.1% 115 76 51.3% 1 (2) 111,403 95,367 16.8%
EBITDA margin excluding IFRS 16 25.2% 26.0% 17.7% 14.0% 10.4% 9.8% 8.2% 8.2% 3.4% 3.7% -
IFRS 16 impact on EBITDA 421 - NMF 1,063 - NMF 13,760 - NMF 287 - NMF 14 - NMF - - 15,545 -
EBITDA as per financial statements 55,262 50,943 8.5% 6,828 3,969 72.0% 59,878 36,979 61.9% 4,850 3,402 42.6% 129 76 69.7% 1 (2) 126,948 95,367 33.1%
Depreciation and amortization excluding IFRS 16 (20,037) (18,944) 5.8% (3,879) (3,859) 0.5% (2,214) (1,724) 28.4% (568) (575) -1.2% (167) (148) 12.8% - - (26,865) (25,250) 6.4%
Depreciation and amortization (20,614) (18,944) 8.8% (5,068) (3,859) 31.3% (14,020) (1,724) NMF (828) (575) 44.0% (180) (148) 21.6% - - (40,710) (25,250) 61.2%
Net interest income (expense) excluding IFRS 16 (19,774) (16,861) 17.3% (2,981) (2,961) 0.7% (8,910) (8,551) 4.2% 513 (84) NMF (96) (71) 35.2% - - (31,248) (28,528) 9.5%
Net interest income (expense) (19,898) (16,861) 18.0% (3,370) (2,961) 13.8% (12,511) (8,551) 46.3% 472 (84) NMF (97) (71) 36.6% - - (35,404) (28,528) 24.1%
Net gains/(losses) from foreign currencies excluding IFRS 16 (1,341) (111) NMF (72) (11) NMF (3,927) (1,358) 189.2% 78 150 NMF (24) 1 NMF - - (5,286) (1,329) 297.7%
Net gains/(losses) from foreign currencies (1,803) (111) NMF (1,101) (11) NMF (8,798) (1,358) NMF 2 150 -98.7% (24) 1 NMF - - (11,724) (1,329) NMF
Net non-recurring income/(expense) (536) (1,126) -52.4% (69) 276 NMF (98) (837) -88.3% - - - (5) (27) -81.5% (1) - (710) (1,714) -58.6%
Profit before income tax expense 12,410 13,901 -10.7% (2,780) (2,586) 7.5% 24,451 24,509 -0.2% 4,496 2,893 NMF (177) (169) 4.7% - (2) 38,400 38,546 -0.4%
Income tax benefit/(expense) - (74) NMF - - - (564) - NMF (708) (431) NMF - - - - - (1,272) (505) 151.9%
Profit for the period excluding IFRS 16 13,152 13,827 -4.9% (1,236) (2,586) -52.2% 30,405 24,509 24.1% 3,878 2,462 57.5% (177) (169) 4.7% - (2) 46,022 38,041 21.0%
Attributable to:
- shareholders of the Company 9,416 11,011 -14.5% (1,296) (2,529) -48.7% 18,321 13,734 33.4% 3,878 2,462 NMF (177) (169) 4.7% - (2) 30,142 24,507 23.0%
- non-controlling interests 3,736 2,816 32.7% 60 (57) NMF 12,084 10,775 12.2% - - - - - - - - 15,880 13,534 17.3%

Profit for the period 12,410 13,827 -10.2% (2,780) (2,586) 7.5% 23,887 24,509 -2.5% 3,788 2,462 53.9% (177) (169) 4.7% - (2) 37,128 38,041 -2.4%
Attributable to:
- shareholders of the Company 8,674 11,011 -21.2% (2,840) (2,529) 12.3% 13,954 13,734 1.6% 3,788 2,462 53.9% (177) (169) 4.7% (1) (2) 23,399 24,507 -4.5%
- non-controlling interests 3,736 2,816 32.7% 60 (57) NMF 9,933 10,775 -7.8% - - - - - - - - 13,729 13,534 1.4%

Sources: GHG Internal Reporting

(1) Represents IFRS 16 impact on General and administrative expenses
41
 GHG – Income statement, 3Q19 (1/2)

Income Statement, Quarterly Hospitals Clinics Pharmacy and distribution Medical insurance
GEL thousands, unless otherwise noted Change, Change, Change, Change, Change, Change, Change, Change,
3Q19 3Q18 Y-o-Y 2Q19 Q-o-Q 3Q19 3Q18 Y-o-Y 2Q19 Q-o-Q 3Q19 3Q18 Y-o-Y 2Q19 Q-o-Q 3Q19 3Q18 Y-o-Y 2Q19 Q-o-Q

Revenue, gross 68,694 64,144 7.1% 74,218 -7.4% 10,552 8,899 18.6% 10,877 -3.0% 146,800 123,341 19.0% 149,414 -1.7% 19,436 14,237 36.5% 18,873 3.0%
Corrections & rebates (789) (562) 40.4% (532) 48.3% (110) (110) 0.0% (73) 50.7% - - - - - - - - - -
Revenue, net 67,905 63,582 6.8% 73,686 -7.8% 10,442 8,789 18.8% 10,804 -3.4% 146,800 123,341 19.0% 149,414 -1.7% 19,436 14,237 36.5% 18,873 3.0%
Costs of services (40,378) (37,077) 8.9% (42,640) -5.3% (5,706) (4,984) 14.5% (6,223) -8.3% (109,115) (91,174) 19.7% (113,463) -3.8% (14,968) (10,007) 49.6% (16,233) -7.8%
Cost of salaries and other employee benefits (24,820) (23,291) 6.6% (26,189) -5.2% (3,811) (3,229) 18.0% (3,789) 0.6% - - - - - - - - - -
Cost of materials and supplies (11,197) (9,909) 13.0% (12,281) -8.8% (599) (594) 0.8% (721) -16.9% - - - - - - - - - -
Cost of medical service providers (994) (1,089) -8.7% (1,095) -9.2% (938) (850) 10.4% (1,183) -20.7% - - - - - - - - - -
Cost of utilities and other (3,367) (2,788) 20.8% (3,075) 9.5% (358) (311) 15.1% (530) -32.5% - - - - - - - - - -
Net insurance claims incurred - - - - - - - - - - - - - - - (14,267) (9,229) 54.6% (15,587) -8.5%
Agents, brokers and employee commissions - - - - - - - - - - - - - - - (701) (778) -9.9% (646) 8.5%
Cost of pharma – wholesale - - - - - - - - - - (35,174) (26,800) 31.2% (37,097) -5.2% - - - - -
Cost of pharma - retail - - - - - - - - - - (73,941) (64,374) 14.9% (76,366) -3.2% - - - - -
Gross profit 27,527 26,505 3.9% 31,046 -11.3% 4,736 3,805 24.5% 4,581 3.4% 37,685 32,167 17.2% 35,951 4.8% 4,468 4,230 5.6% 2,640 69.2%
Salaries and other employee benefits (7,482) (7,109) 5.2% (8,157) -8.3% (1,913) (1,627) 17.6% (1,783) 7.3% (12,751) (11,234) 13.5% (12,580) 1.4% (1,611) (1,375) 17.2% (1,189) 35.5%
General and administrative expenses (3,532) (3,219) 9.7% (3,861) -8.5% (1,276) (966) 32.1% (1,092) 16.9% (10,537) (8,681) 21.4% (9,885) 6.6% (414) (342) 21.1% (469) -11.7%
Impairment of receivables (898) (1,036) -13.3% (1,128) -20.4% (19) (16) 18.8% (15) 26.7% (1) (2) -50.0% (121) -99.2% (125) (100) 25.0% (114) 9.6%
Other operating income 1,224 1,272 -3.8% 940 30.2% 254 22 NMF 216 17.6% 814 168 NMF 1,982 -58.9% 460 273 68.5% 355 29.6%
EBITDA excluding IFRS 16 16,839 16,413 2.6% 18,840 -10.6% 1,782 1,218 46.3% 1,907 -6.6% 15,210 12,418 22.5% 15,347 -0.9% 2,778 2,686 3.4% 1,223 127.1%
EBITDA margin excluding IFRS 16 24.5% 25.6% 25.4% 16.9% 13.7% 17.5% 10.4% 10.1% 10.3% 14.3% 18.9% 6.5%
IFRS 16 impact on EBITDA 122 - NMF 120 308 - NMF 301 4,619 - NMF 4,739 -2.5% 106 - NMF 96 10.4%
EBITDA as per financial statements 16,961 16,413 3.3% 18,960 -10.5% 2,090 1,218 71.6% 2,208 -5.3% 19,829 12,418 59.7% 20,086 -1.3% 2,884 2,686 7.4% 1,319 118.7%
Depreciation and amortization excluding IFRS 16 (6,793) (6,602) 2.9% (6,728) 1.0% (1,394) (1,245) 12.0% (1,257) 10.9% (788) (600) 31.3% (738) 6.8% (188) (184) 2.2% (191) -1.6%
Depreciation and amortization (7,015) (6,602) 6.3% (6,920) 1.4% (1,778) (1,245) 42.8% (1,664) 6.8% (4,780) (600) NMF (4,702) 1.7% (280) (184) 52.2% (279) 0.4%
Net interest income (expense) excluding IFRS 16 (6,606) (6,305) 4.8% (6,586) 0.3% (1,026) (1,007) 1.9% (998) 2.8% (3,018) (3,036) -0.6% (2,943) 2.5% 200 41 NMF 186 7.5%
Net interest income (expense) (6,665) (6,305) 5.7% (6,620) 0.7% (1,158) (1,007) 15.0% (1,126) 2.8% (4,318) (3,036) 42.2% (4,141) 4.3% 186 41 353.7% 173 7.5%
Net gains/(losses) from foreign currencies excluding IFRS
16 (196) (150) 30.7% (1,052) NMF (10) (4) 150.0% (35) -71.5% (839) (3,487) -75.9% (3,294) -74.5% 7 62 -88.7% 8 -12.5%
Net gains/(losses) from foreign currencies (251) (150) 67.3% (1,437) NMF (206) (4) NMF (834) -75.3% (2,252) (3,487) -35.4% (6,519) -65.5% (16) 62 NMF (41) -61.0%
Net non-recurring income/(expense) (144) - NMF (288) -49.9% (2) - NMF (15) -85.1% (36) (52) -30.8% (68) -47.1% - - - - -
Profit before income tax expense 2,885 3,356 -14.0% 3,695 -21.9% (1,054) (1,038) 1.6% (1,431) -26.3% 8,443 5,243 61.0% 4,656 81.3% 2,774 2,605 6.5% 1,172 136.7%
Income tax benefit/(expense) - - - - - - - - - - (495) - NMF (69) NMF (420) (388) 8.2% (203) 106.9%
Profit for the period excluding IFRS 16 3,099 3,356 -7.6% 4,186 -26.0% (650) (1,038) -37.4% (398) 63.2% 10,034 5,243 91.4% 8,235 21.8% 2,377 2,217 7.2% 1,023 132.4%
Attributable to:
- shareholders of the Company 2,134 2,755 -22.5% 2,927 -27.1% (676) (1,027) -34.2% (412) 63.9% 6,159 2,500 146.3% 4,770 29.1% 2,377 2,217 7.2% 1,023 132.4%
- non-controlling interests 965 601 60.6% 1,259 -23.4% 26 (11) NMF 14 85.7% 3,875 2,743 41.3% 3,465 11.8% - - - - -

Profit for the period 2,885 3,356 -14.0% 3,695 -21.9% (1,054) (1,038) 1.6% (1,431) -26.3% 7,948 5,243 51.6% 4,587 73.3% 2,354 2,217 6.2% 969 142.9%
Attributable to:
- shareholders of the Company 1,920 2,755 -30.3% 2,436 -21.2% (1,080) (1,027) 5.2% (1,445) -25.3% 4,761 2,500 90.4% 2,326 104.7% 2,354 2,217 6.2% 969 142.9%
- non-controlling interests 965 601 60.6% 1,259 -23.4% 26 (11) NMF 14 85.7% 3,187 2,743 16.2% 2,261 41.0% - - - - -

Sources: GHG Internal Reporting

(1) Represents IFRS 16 impact on General and administrative expenses
42
 GHG – Income statement, 3Q19 (2/2)

Income Statement, Quarterly Diagnostics Eliminations GHG

Change, Change, Change, Change,
GEL thousands, unless otherwise noted 3Q19 3Q18 Y-o-Y 2Q19 Q-o-Q 3Q19 3Q18 2Q19 3Q19 3Q18 Y-o-Y 2Q19 Q-o-Q

Revenue, gross 1,127 678 66.2% 1,131 -0.4% (16,131) (8,373) (16,853) 230,478 202,926 13.6% 237,660 -3.0%
Corrections & rebates - - - - - - - - (899) (672) 33.8% (605) 48.6%
Revenue, net 1,127 678 66.2% 1,131 -0.4% (16,131) (8,373) (16,853) 229,579 202,254 13.5% 237,055 -3.2%
Costs of services (782) (534) 46.4% (774) 1.0% 16,095 7,891 16,170 (154,854) (135,884) 14.0% (163,163) -5.1%
Cost of salaries and other employee benefits (251) (215) 16.7% (260) -3.5% 1,486 883 1,660 (27,396) (25,851) 6.0% (28,578) -4.1%
Cost of materials and supplies (460) (315) 46.0% (428) 7.5% 1,545 3,448 1,366 (10,711) (7,371) 45.3% (12,064) -11.2%
Cost of medical service providers (36) - NMF (45) -20.0% 1,045 1,075 1,253 (923) (864) 6.8% (1,070) -13.8%
Cost of utilities and other (35) (4) NMF (41) -14.6% 288 101 203 (3,472) (3,001) 15.7% (3,443) 0.8%
Net insurance claims incurred - - - - - 3,316 2,384 3,775 (10,951) (6,845) 60.0% (11,812) -7.3%
Agents, brokers and employee commissions - - - - - - - - (701) (778) -9.9% (646) 8.5%
Cost of pharma – wholesale - - - - - 8,415 - 7,913 (26,759) (26,800) -0.2% (29,184) -8.3%
Cost of pharma - retail - - - - - - - - (73,941) (64,374) 14.9% (76,366) -3.2%
Gross profit 345 144 139.6% 357 -3.4% (36) (482) (683) 74,725 66,370 12.6% 73,892 1.1%
Salaries and other employee benefits (240) (73) 228.8% (281) -14.5% 319 360 67 (23,678) (21,056) 12.5% (23,922) -1.0%
General and administrative expenses (108) (67) 61.2% (76) 41.7% 324 42 93 (15,543) (13,233) 17.5% (15,290) 1.7%
Impairment of receivables - - - - - 214 120 238 (829) (1,034) -19.8% (1,140) -27.3%
Other operating income 21 (3) NMF 49 -57.1% (821) (40) 284 1,952 1,691 15.4% 3,826 -49.0%
EBITDA excluding IFRS 16 18 1 NMF 49 -63.3% - - (1) 36,627 32,738 11.9% 37,365 -2.0%
EBITDA margin excluding IFRS 16 1.6% 0.1% 4.3% - - 15.9% 16.1% 15.7%
IFRS 16 impact on EBITDA 3 - NMF 5 -40.0% - - - 5,158 - NMF 5,261 -2.0%
EBITDA as per financial statements 21 1 NMF 54 -61.1% - - (1) 41,785 32,738 27.6% 42,626 -2.0%
Depreciation and amortization excluding IFRS 16 (48) (57) -15.8% (60) -20.1% - - - (9,211) (8,687) 6.0% (8,975) 2.6%
Depreciation and amortization (48) (57) -15.8% (67) -28.5% - - - (13,901) (8,687) 60.0% (13,633) 2.0%
Net interest income (expense) excluding IFRS 16 (96) (71) 35.2% - NMF - - - (10,546) (10,377) 1.6% (10,341) 2.0%
Net interest income (expense) (96) (71) 35.2% (1) NMF - - - (12,051) (10,377) 16.1% (11,715) 2.9%
Net gains/(losses) from foreign currencies excluding IFRS 16 (4) - NMF (14) -72.2% - - - (1,042) (3,579) -70.9% (4,388) -76.3%
Net gains/(losses) from foreign currencies (4) - NMF (14) -72.2% - - - (2,729) (3,579) -23.7% (8,846) -69.1%
Net non-recurring income/(expense) - - - - - - - - (183) (52) 251.1% (371) -50.8%
Profit before income tax expense (127) (127) - (29) NMF - - (1) 12,921 10,043 28.7% 8,062 60.3%
Income tax benefit/(expense) - - - - - - - - (915) (388) 135.8% (272) 236.4%
Profit for the period excluding IFRS 16 (130) (127) 2.4% (26) NMF - - (1) 14,730 9,655 52.6% 13,019 13.1%
Attributable to:
- shareholders of the Company (130) (127) 2.4% (26) NMF - - (1) 9,864 6,320 56.1% 8,281 19.1%
- non-controlling interests - - - - - - - - 4,866 3,335 45.9% 4,738 2.7%

Profit for the period (127) (127) - (29) NMF - - (1) 12,006 9,655 24.4% 7,790 54.1%
Attributable to:
- shareholders of the Company (127) (127) - (29) NMF - - (1) 7,828 6,320 23.9% 4,256 83.9%
- non-controlling interests - - - - - - - - 4,178 3,335 25.3% 3,534 18.2%

Sources: GHG Internal Reporting

(1) Represents IFRS 16 impact on General and administrative expenses

43
 Balance sheet

Selected Balance Sheet items Hospitals Clinics Pharmacy and distribution

GEL thousands; unless otherwise noted
Change, Change, Change, Change, Change, Change,
30-Sep -19 30-Sep-18 Y-o-Y 30-Jun-19 Q-o-Q 30-Sep -19 30-Sep-18 Y-o-Y 30-Jun-19 Q-o-Q 30-Sep -19 30-Sep-18 Y-o-Y 30-Jun-19 Q-o-Q
Assets:
Cash and bank deposits 3,961 7,595 -47.8% 2,907 36.3% 157 1,607 -90.2% 283 -44.5% 5,868 10,626 -44.8% 9,702 -39.5%
Property and equipment, of which 528,828 525,549 0.6% 525,783 0.6% 113,652 102,320 11.1% 113,333 0.3% 102,099 28,549 257.6% 99,506 2.6%
IFRS 16 impact 3,776 - 1,929 7,913 - 8,297 69,921 - 68,902
Inventory 16,834 15,071 11.7% 16,113 4.5% 1,318 1,022 29.0% 1,106 19.2% 140,619 98,840 42.3% 138,813 1.3%
Liabilities:
Borrowed Funds 251,130 247,543 1.4% 250,563 0.2% 36,320 33,196 9.4% 35,687 1.8% 94,254 96,988 -2.8% 79,489 18.6%
Accounts payable 32,187 28,095 14.6% 30,436 5.8% 6,489 3,740 73.5% 5,637 15.1% 82,783 52,014 59.2% 100,349 -17.5%
Finance lease liabilities, of which 3,913 - NMF 1,984 97.2% 8,889 8,560 3.8% 9,045 -1.7% 76,716 - NMF 74,066 3.6%
IFRS 16 impact 3,913 - 1,984 213 - 369 76,716 - 74,066

GEL thousands; unless otherwise noted Medical Insurance Diagnostics Eliminations GHG
Change, Change, Change, Change, Change, Change,
30-Sep -19 30-Sep-18 Y-o-Y 30-Jun-19 Q-o-Q 30-Sep -19 30-Sep-18 Y-o-Y 30-Jun-19 Q-o-Q 30-Sep -19 30-Sep-18 30-June-19 30-Sep -19 30-Sep-18 Y-o-Y 30-Jun-19 Q-o-Q
Assets
Cash and bank deposits 14,604 11,971 22.0% 14,228 2.6% 110 101 8.9% 87 26.4% - - - 24,700 31,900 -22.6% 27,207 -9.2%
Property and equipment, of which 15,777 15,022 5.0% 15,939 -1.0% 14,459 14,310 1.0% 14,531 -0.5% - - - 774,815 685,750 13.0% 769,092 0.7%
IFRS 16 impact 687 - 780 - - - - - 82,297 - 79,908
Inventory - - - - - 1,350 731 84.7% 1,100 22.7% - - - 160,121 115,664 38.4% 157,132 1.9%
Liabilities:
Borrowed Funds 4,916 6,957 -29.3% 5,651 -13.0% 3,507 - NMF - NMF (2,640) - (2,495) 387,487 384,684 0.7% 368,895 5.0%
Accounts payable - - - - - 1,540 992 55.2% 1,014 51.9% (23,477) (8,032) (17,652) 99,522 76,809 29.6% 119,784 -16.9%
Finance lease liabilities, of which 777 - NMF 847 -8.3% - - - - - - - 90,295 8,560 NMF 85,942 5.1%
IFRS 16 impact 777 - 847 - - - - - - 81,619 - 77,266

Sources: GHG Internal Reporting

44
 Selected ratios and KPIs

Selected ratios and KPIs 3Q19 3Q18 2Q19 9M19 9M18 3Q19 3Q18 2Q19 9M19 9M18
GHG Pharmacy and distribution
EPS, GEL excluding IFRS 16 0.08 0.05 0.06 0.23 0.19 EBITDA margin excluding IFRS 16 10.4% 10.1% 10.3% 10.4% 9.8%
EPS adjusted, GEL excluding IFRS 16 0.08 0.07 0.09 0.27 0.21
Number of bills issued 6.98mln 6.52mln 7.07mln 21.21mln 19.95mln
ROIC (%) 11.7% 10.6% 12.3% 12.1% 10.5%
Average bill size 14.2 13.2 14.2 14.0 13.2
ROIC adjusted (%) 14.2% 14.0% 14.4% 14.3% 13.8%
Revenue from wholesale as a percentage of total
Group rent expenditure 6,301 4,866 6,118 18,315 14,344
revenue from pharma 28.4% 26.2% 29.0% 28.8% 26.0%
of which, pharmacy and distribution business 5,775 3,868 5,555 16,655 12,397
Revenue from retail as a percentage of total revenue
Group capex (maintenance) 2,698 2,601 3,878 9,760 7,041
from pharma 71.6% 73.8% 71.0% 71.2% 74.0%
Group capex (growth) 7,031 5,498 7,282 20,634 41,558
Revenue from para-pharmacy as a percentage of
retail revenue from pharma 32.1% 32.2% 31.4% 30.9% 30.3%
Number of employees 16,110 15,643 16,173 16,110 15,643
Number of physicians 3,643 3,592 3,645 3,643 3,592 Number of pharmacies 285 267 279 285 267
Number of nurses 3,396 3,313 3,425 3,396 3,313
Nurse to doctor ratio, referral hospitals 0.93 0.92 0.94 0.93 0.92 Medical insurance
Number of pharmacists 2,945 2,859 2,971 2,945 2,859 Loss ratio 73.4% 64.8% 82.6% 80.2% 77.0%
Expense ratio excluding IFRS 16, of which 13.3% 17.6% 11.9% 12.6% 16.2%
Total number of shares 131,681,820 131,681,820 131,681,820 131,681,820 131,681,820 Commission ratio 3.6% 5.5% 3.4% 3.8% 5.0%
Less: Treasury shares (2,446,583) (2,763,916) (2,452,449) (2,446,583) (2,763,916) Combined ratio excluding IFRS 16 86.7% 82.4% 94.5% 92.8% 93.1%
Shares outstanding 129,235,237 128,917,904 128,904,076 129,235,237 128,917,904 Renewal rate 77.1% 76.8% 81.3% 77.4% 73.3%
Of which:
Total free float 54,116,734 53,799,401 54,154,256 54,116,734 53,799,401 Diagnostics
Shares held by Georgia Capital PLC 75,118,503 75,118,503 75,118,503 75,118,503 75,118,503
EBITDA margin excluding IFRS 16 impact 1.6% 0.1% 4.3% 3.4% 3.7%
Hospitals Number of patients served (‘000) 87 N/A 60 214 N/A
EBITDA margin excluding IFRS 16 24.5% 25.6% 25.4% 25.2% 26.0% Number of tests performed (‘000) 196 N/A 184 552 N/A
Direct salary rate (direct salary as % of revenue) 36.1% 36.3% 35.3% 35.0% 35.3% Average revenue per test GEL 5.8 N/A 6.1 6.2 N/A
Materials rate (direct materials as % of revenue) 16.3% 15.4% 16.5% 16.8% 16.1% Average number of tests per patient 2.3 N/A 3.1 2.6 N/A
Administrative salary rate (administrative salaries as %
10.9% 11.1% 11.0% 10.8% 10.8%
of revenue)
SG&A rate (SG&A expenses as % of revenue) 5.1% 5.0% 5.2% 5.0% 5.3%

Number of hospitals 18 18 18 18 18
Number of hospital beds 2,967 2,967 2,967 2,967 2,967
Hospitals bed occupancy rate21 49.1% 46.9% 59.6% 56.9% 50.6%
Hospitals bed occupancy rate, excluding Tbilisi
Referral Hospital and Regional Hospital beds 52.4% 58.5% 64.1% 61.2% 63.3%
Regional Hospital bed occupancy rate21 33.3% 21.9% 38.6% 35.8% 16.7%
Tbilisi Referral Hospital bed occupancy rate21 40.7% 35.2% 46.9% 46.5% 34.3%
Average length of stay (days)21 5.2 5.4 5.4 5.4 5.5

Clinics
EBITDA margin excluding IFRS 16 16.9% 13.7% 17.5% 17.7% 14.0%
EBITDA margin of polyclinics excluding IFRS 16 16.1% 15.4% 16.3% 15.8% 15.1%
Direct salary rate (direct salary as % of revenue) 36.1% 36.3% 34.8% 35.2% 36.2%
Materials rate (direct materials as % of revenue) 5.7% 6.7% 6.6% 6.1% 6.6%

Number of community clinics 19 19 19 19 19

Number of community clinics beds 353 353 353 353 353
Number of polyclinics 15 16 16 15 16

Sources: GHG Internal Reporting

(1) Adjusted for non-recurring items and foreign currency losses
(2)
(3)
Return on invested capital is adjusted to exclude newly launched hospitals and polyclinics that are in roll-out phase
Excluding emergency beds
45
 Disclaimer

Forward looking statements

This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future
events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals
relating to financial position and future operations and development. Although Georgia Healthcare Group PLC believes that the expectations and opinions reflected in such forward-
looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. By their nature, these forward-looking statements
are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as
reflected in such statements. Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, certain of which are
beyond our control, include, among other things: business integration risk; compliance risk; recruitment and retention of skilled medical practitioners risk: clinical risk; concentration
of revenue and the Universal Healthcare Programme; currency and macroeconomic; information technology and operational risk; regional tensions and political risk; and other key
factors that we have indicated could adversely affect our business and financial performance, which are contained elsewhere in this document and in our past and future filings and
reports, including the “Principal Risks and Uncertainties” included in Georgia Healthcare Group PLC's Annual Report and Accounts 2018 and in the 2Q19 and 1H19 results
announcement. No part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in Georgia Healthcare Group PLC or any other entity and must
not be relied upon in any way in connection with any investment decision. Georgia Healthcare Group PLC undertakes no obligation to update any forward-looking statements, whether
as a result of new information, future events or otherwise, except to the extent legally required. Nothing in this document should be construed as a profit forecast
46