Georgia Healthcare Group PLC Annual Report 2018 Financial Statements Notes to Consolidated Financial Statements (Thousands of Georgian Lari unless otherwise stated) 1. Background As at 31 December 2018 the ultimate parent of the Group companies (“GHG” or “the Group”) comprising Georgia Healthcare Group PLC is Georgia Capital PLC (“GCAP”). As at 31 December 2017 the ultimate parent of GHG was BGEO Group PLC (“BGEO”). On 29 May 2018, BGEO Group PLC demerged into two separate companies – Bank of Georgia Group PLC and Georgia Capital PLC, both incorporated in London, England. On the same date GCAP became the ultimate parent of GHG. GCAP’s registered legal address is 84 Brook Street, London, W1K 5EH, England. GCAP registration number is 10852406. The remaining 43% is on a free float. GHG’s results are included as part of GCAP’s financial statements. The Group’s healthcare services business provides medical services to inpatient and outpatient customers through a network of hospitals and clinics throughout Georgia. Its medical insurance business offers a wide range of medical insurance products, including personal accident, term life insurance products bundled with medical insurance and travel insurance policies to corporate and retail clients. The Group’s pharmacy and distribution subsidiary, which was acquired in May 2016 and was expanded with JSC ABC Pharmacy acquisition in 2017, offers a wide range of medicines as well as para-pharmacy products to retail and wholesale customers. The legal address of Georgia Healthcare Group PLC (the “Company”) is No. 84 Brook Street, London W1K 5EH, United Kingdom. The Company registration number is 09752452. As at 31 December 2018 and 31 December 2017 the following shareholders owned more than 3% of the total outstanding shares of the Group. Other shareholders individually owned less than 3% of the outstanding shares. 31 December 31 December Shareholder 2018 2017 Georgia Capital PLC 57% – Wellington Management Company 7% 7% T Rowe LTD 6% 6% BGEO Group PLC – 57% Others 30% 30% Total 100% 100% The Group included the following subsidiaries and associates incorporated in Georgia: Ownership/Voting 31 December 31 December Date of Subsidiary 2018 2017 Industry incorporationDate of acquisition Legal address JSC Georgia Healthcare Group 100% 100% Healthcare 29-Apr-15Not Applicable Vazha-Pshavela Ave. 40, Tbilisi, Georgia JSC GEPHA* 67% 67% Pharmacy and 19-Oct-95 4-May-16 Beliashvili str. 142, Tbilisi, Georgia distribution LLC ABC Pharmalogistics 67% 67% Pharmacy and 24-Feb-04 6-Jan-17 Peikrebi str. 14a, Tbilisi, Georgia distribution LLC ABC Pharmacia (Armenia) 67% 67% Pharmacy and 28-Dec-13 6-Jan-17 Kievyan Str. 2/8, Erevan, Armenia distribution JSC Insurance Company Imedi L 100% 100% Insurance 1-Aug-14 31-Jul-14 Anna Politkovskaia str. 9, Tbilisi, Georgia JSC Medical Corporation EVEX 100% 100% Healthcare 1-Aug-14 1-Aug-14 Vazha-Pshavela Ave. 40, Tbilisi, Georgia GNCo 50% 50% Healthcare 4-Jun-01 5-Aug-15 Chavchavadze ave. 16, Tbilisi, Georgia LLC Nefrology 40% 40% Healthcare 28-Sep-10 5-Aug-15 Tsinandalistr. 9, Tbilisi, Georgia Development Clinic Centre High Technology Medical 50% 50% Healthcare 16-Apr-99 5-Aug-15 Tsinandali str. 9, Tbilisi, Georgia Centre, University Clinic LLC Regional Hospital **** 99.8% 97% Healthcare 12-Jan-12 30-Jun-15 Kavtaradze str. 23, Tbilisi, Georgia LLC EVEX-Logistics 100% 100% Healthcare 13-Feb-15Not Applicable Vazha-Pshavela Ave. 40, Tbilisi, Georgia LLC Paediatrical Institute, − 100% Healthcare 6-Mar-00 19-Feb-14 Lubliana str. 13, Tbilisi, Georgia Centre of Allergy and Rheumatology*** LLC Referral Centre 100% 100% Healthcare29-Dec-14Not Applicable Vazha-Pshavela Ave. 40, of Pathology Tbilisi, Georgia JSC St. Nicholas − 97% Healthcare10-Nov-00 20-May-08 Paolo Iashvili str. 9, Kutaisi, Georgia Surgery Clinic*** JSC Kutaisi County Treatment 67% 67% Healthcare 5-May-03 29-Nov-11 Djavakhishvili str. 85, Kutaisi, Georgia and Diagnostic Centre for Mothers and Children LLC Academician Z. Tskhakaia 67% 67% Healthcare 15-Oct-04 29-Nov-11 A Djavakhishvili str. 83A, National Centre of Kutaisi, Georgia Intervention Medicine of Western Georgia 128