Strategic Report 01 Overview 02 03 04 Healthcare services Strategic Report The healthcare services business operates through Overview its vertically integrated network of hospitals and 2 Financial highlights clinics in Georgia. 3 Operational highlights 4 At a glance 6 Chairman’s Statement Referral hospitals 8 Chief Executive Officer’s Statement 10 Our business model We operate 16 referral hospitals with a total of 2,825 beds, 18 New services providing secondary or tertiary healthcare services. 22 Quality standards 24 People development Read more on page 12 2628 From capex to cash flowIndustry and market overview Community clinics Strategy 34 Our strategy We operate 21 community clinics with a total of 495 beds, 38 Key performance indicators providing outpatient and basic inpatient healthcare services. 40 Resources and responsibilities 13 49 Risk management Read more on page 53 Principal risks and uncertainties Polyclinics Performance 60 Business review – overview We operate 16 polyclinics, day-clinics, providing outpatient of financial results diagnostic and treatment services. 14 Governance Read more on page 66 Directors’ Governance Statement 71 Shareholder and stakeholder engagement 72 Board and Senior Managers Pharmacy and distribution 76 Audit Committee Report 82 Clinical Quality and Safety Committee Report GHG is the largest pharmaceuticals retailer and wholesaler 85 Nomination Committee Report in Georgia, operating 270 pharmacies countrywide. 89 Remuneration Committee Report 108 Statement of Directors’ Responsibilities 15 109 Directors’ Report Read more on page Financial Statements 113 Independent Auditor’s Report Medical insurance 121 Separate Statement of Financial Position 122 Separate Statement of Changes in Equity GHG is also the largest provider of medical insurance in Georgia 123 Separate Statement of Cash Flows with c.230,000 insurance customers. 124 Consolidated Statement of Financial Position 125 Consolidated Statement of 16 Comprehensive Income Read more on page 126 Consolidated Statement of Changes in Equity 127 Consolidated Statement of Cash Flows 128 Notes to Consolidated Financial Statements Diagnostics Additional Information GHG has recently completed the construction of and launched the largest diagnostics laboratory in Georgia and in the entire 176 Abbreviations Caucasus region. 177 Glossary 178 Shareholder information Read more on page 17 1