Strategic Report 01 Strategy 02 03 04 Medical tourism Revenue from international patients in our The increasing number of international arrivals hospitals increased by 99.5% y-o-y in 2018 (GEL thousands) in Georgia represents a natural base for developing medical tourism in the country. 3,415 After improving facilities and standards of care, we started developing health tourism by +99.5% y-o-y attracting the citizens of neighbouring countries and, conversely, retaining the Georgians currently seeking treatment abroad. The country is highly competitive in terms of quality and prices compared to other medical tourism destinations and possesses unique natural 2018 3,415 resources such as climate and mineral waters. 2017 1,712 The services currently offered to medical tourism patients are: liver transplant, paediatric and adult kidney transplant, bone marrow transplantation, oncology and radiation oncology, orthopaedics and surgical traumatology, IVF, plastic surgery, bariatric surgery, angiosurgery, cardiology and interventional cardiology, ophthalmology and urology. Number of international patients in our hospitals increased by 12.8% y-o-y in 2018 (Number of patients) What we have done • Upgraded infrastructure. 6,657 • Upgraded quality in healthcare facilities. • Added new services to close existing service gaps in the country. • Preventing local patients from travelling abroad. +12.8% y-o-y What we are doing • Developing medical tourism strategy. 2018 6,657 • Developing a service structure for foreign patients. • Increasing awareness within post-Soviet countries through 2017 5,902 different marketing activities and road shows. Key rationale High quality of In 2018, the number healthcare compared of tourists in Georgia to top visitor countries reached 4.8 million, (Azerbaijan, Armenia, up 16.9% y-o-y Russia, Iran, Ukraine and Central Asian Countries) No language barrier Cost arbitrage compared with neighbouring to medical tourism post-Soviet countries destination countries 37