Georgia Healthcare Group PLCAnnual Report 2018Strategic Report Our business model continued Healthcare services – Polyclinics Polyclinics provide basic and full-scale outpatient diagnostic and treatment services. These clinics are located in Tbilisi and major regional cities and represents the first point 16 of customer interaction, bringing additional referrals to our hospitals and pharmacies. In 2018, the revenue of pharmacies located in our polyclinics amounted GEL 4.1 million. To consolidate our position as the largest player in the highly-fragmented outpatient market Polyclinics in Georgia we added two polyclinics at the end of 2017 and one in 2018. By the end of 2018, we entered the dental market and started to launch dental clinics within our polyclinics. The service fits into our existing business model ideally and is synergistic to our polyclinics business, being the primary healthcare service provider, and to medical insurance 7% business as well. Currently, dental clinics are set up at eight of our polyclinics. We plan to add several dental clinics in existing polyclinics, located in Tbilisi and in other major cities of the country. We expect dental clinics to be the beginning of another strong area of revenue growthRevenue share in healthcare over the next few years, strengthening our belief that the polyclinics business will becomeservices business one of the largest sources of future growth. c.150,000 8 Number of registered patients in Tbilisi Dental clinics Revenue (GEL million) 20.9 15.7 +33.2% 2017 2018 EBITDA and EBITDA margin (GEL million) 2.7 2.0 13.2% 13.0% 2017 2018 14