01 02 03 Financial Statements 04 6. Segment information For management purposes, the Group is organised into three operating segments based on the products and services – Healthcare services, Pharmacy and distribution and Medical insurance. All revenues of the Group result from Georgia. Healthcare services are the inpatient and outpatient medical services delivered by the referral hospitals, community hospitals and ambulatory clinics owned by the Group throughout the whole Georgian territory. Medical insurance comprises a wide range of medical insurance products, including personal accident insurance, term life insurance products bundled with medical insurance and travel insurance policies, which are offered by the Group’s wholly owned subsidiary Imedi L. Pharmacy and distribution comprises a wide range of drugs and para-pharmacy products which are offered through a chain of well-developed pharmacies by the Group’s subsidiary JSC GEPHA. Borrowings and respective interest expense incurred by the Group due to acquisition of the pharma subsidiaries are allocated to the pharma segment. Management monitors the operating results of each of the business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance, as in the table below, is measured in the same manner as profit or loss in the IFRS consolidated Financial Statements. More than 20% of the Group’s revenue is derived from the state. However, management believes that the Government cannot be considered as a single client, because the customers of the Group are the patients that receive medical services and not the counterparties that pay for these services. Therefore, no revenue from transactions with a single external customer amounted to 10% or more of the Group’s total revenue in the period ended 31 December 2018 or 31 December 2017. Selected items from the Statement of Financial Position as at 31 December 2018 and 31 December 2017 by segments are presented below: 31 December 2018 Intersegment Pharmacy and transactions and Healthcare services distribution Medical insurance consolidation Total Assets and liabilities Total assets 917,958 314,717 66,756 (58,925) 1,240,506 Total liabilities 448,793 216,815 43,157 (43,290) 665,475 Other segment information Property and equipment 651,531 31,292 15,214 – 698,037 Intangible assets 31,812 3,589 2,113 – 37,514 31 December 2017 Intersegment Pharmacy and transactions and Healthcare services distribution Medical insurance consolidation Total Assets and liabilities Total assets 904,443 262,203 53,176 (38,984) 1,180,838 Total liabilities 450,610 141,871 42,525 (2,568) 632,438 Other segment information Property and equipment 610,810 26,212 5,837 – 642,859 Intangible assets 23,628 3,003 2,259 – 28,890 149