01 02 03 Financial Statements 04 Consolidated Statement of Cash Flows For the year ended 31 December (thousands of Georgian Lari unless otherwise stated) Year ended Year ended 31 December 31 December Notes 2018 2017 Cash flows from operating activities Healthcare services revenue received 269,992 229,871 Cost of healthcare services paid (152,208) (138,691) Revenue from pharma received 500,593 426,672 Cost of sales of pharmaceuticals paid (401,157) (342,385) Net insurance premiums received 51,161 50,251 Net insurance claims paid (28,141) (40,035) Salaries and other employee benefits paid (79,341) (75,500) General and administrative expenses paid (56,167) (49,935) Acquisition costs paid (2,575) (3,105) Other operating income received 5,453 7,319 Other operating expenses paid (7,190) (5,891) Net cash flows from operating activities before income tax 100,420 58,571 Income tax paid (840) (332) Net cash flows from operating activities 99,580 58,239 Cash flows used in investing activities Acquisition of subsidiaries, net of cash acquired 5 (16,626) (46,404) Purchase of property and equipment (60,986) (78,468) Purchase of intangible assets (10,999) (15,340) Loans issued – (527) Interest income received 1,112 2,607 Withdrawals and redemptions of amounts due from credit institutions 4,384 14,940 Placements of amounts due from credit institutions (4,094) (5,997) Proceeds from sale of property and equipment 1,862 441 Net cash used in investing activities (85,347) (128,748) Cash flows from financing activities Repurchase of debt securities issued – (34,197) Proceeds from debt securities issued – 89,011 Proceeds from borrowings 83,241 217,121 Repayment of borrowings (61,818) (139,343) Payment of finance lease liabilities (736) (3,110) Purchase of treasury shares (3,055) (1,950) Dividends paid to non-controlling interests (9,801) (553) Interest expense paid (34,748) (30,332) Net cash flows from financing activities (26,917) 96,647 Effect of exchange rates changes on cash and cash equivalents (2) (537) Net increase/(decrease) in cash and cash equivalents (12,686) 25,601 Cash and cash equivalents, beginning 7 48,840 23,239 Cash and cash equivalents, end 7 36,154 48,840 The accompanying notes on pages 128 to 175 form an integral part of these consolidated Financial Statements. 127