Strategic Report 01 Overview 02 03 04 Group’s new structure In 2018 the Group updated its business structure that had previously consisted of the polyclinics business under separate management and the hospitals business, including community clinics and referral hospitals under common control but managed separately from the polyclinics. According to the new structure, starting from 2019, the healthcare services business is divided into the following two segments: the clinics, which include polyclinics and community clinics, and referral hospitals. Both business lines, alongside pharmacy and distribution, medical insurance and laboratory businesses, will be independent business lines reporting to the Group. Each of the business lines will have its own chief operating officer and supporting back office function, which was previously the case for pharmacy and distribution business as well as for medical insurance business. The rationale behind grouping the community clinics and polyclinics under one business line is the similar nature of these two businesses. Both of them represent the first point of patient interaction, offering basic outpatient services and, in the cases of complicated procedures, referring patients to the nearest hospital. The clinics and referral hospitals will be the leaders in their respective segments, pursuing significant growth opportunities and concentrating on a clearer strategy. Independent and more focused management teams will efficiently drive the businesses towards their strategic priorities. Nikoloz Gamkrelidze, CEO Georgia Healthcare Group Hospitals Clinics Pharmacy and Medical Diagnostics distribution insurance Giorgi Mindiashvili, Giorgi Gordadze, Misha Abramidze, Givi Giorgadze, Mikheil Dolidze, Chief Operating Officer Chief Operating Officer Chief Operating Officer Chief Operating Officer Chief Operating Officer 11