Georgia Healthcare Group PLC Annual Report 2018 Financial Statements Notes to Consolidated Financial Statements continued (Thousands of Georgian Lari unless otherwise stated) 6. Segment information continued Statement of Comprehensive Income and selected items from the Statement of Financial Position by segments are presented below: Period ended 31 December 2018 Intersegment Pharmacy and transactions and Healthcare services distribution Medical insurance consolidation Total Healthcare services revenue 301,987 – – (10,918) 291,069 Revenue from pharma – 518,578 – (17,488) 501,090 Net insurance premiums earned – – 55,112 (965) 54,147 Revenue 301,987 518,578 55,112 (29,371) 846,306 Cost of healthcare services (174,073) – – 18,147 (155,926) Cost of sales of pharmaceuticals – (386,372) – 220 (386,152) Cost of insurance services and agents’ commissions – – (45,427) 9,800 (35,627) Costs of services (174,073) (386,372) (45,427) 28,167 (577,705) Gross profit 127,914 132,206 9,685 (1,204) 268,601 Other operating income 18,875 2,486 787 (4,028) 18,120 Salaries and other employee benefits (35,178) (45,925) (4,434) 1,028 (84,509) General and administrative expenses (18,079) (35,169) (1,459) 271 (54,436) Impairment of healthcare services, insurance premiums and other receivables (4,632) – (362) 546 (4,448) Other operating expenses (12,892) (1,383) (166) 3,387 (11,054) (70,781) (82,477) (6,421) 5,232 (154,447) EBITDA 76,008 52,215 4,051 – 132,274 Depreciation and amortisation (30,772) (2,352) (759) – (33,883) Interest income 4,588 33 1,161 (4,643) 1,139 Interest expense (30,861) (11,957) (1,140) 4,643 (39,315) Net (losses)/gains from foreign currencies and currency derivatives (1,465) (2,923) 215 – (4,173) Net non-recurring expense (1,328) (859) – – (2,187) Profit before income tax expense 16,170 34,157 3,528 – 53,855 Income tax expense (37) – (579) – (616) Profit for the period 16,133 34,157 2,949 – 53,239 150