Strategic Report 01 Overview 02 03 04 First-class leaders of our medical team are driving the improvement of service quality and access of patients to healthcare across the organisation. These factors, together with the improved access to healthcare services through the Universal Healthcare Programme (“UHC”) financing, enable us to capitalise on the existing service gaps and the overall historically lower quality of medical care in the country. Long-term high-growth opportunities Strong management with proven track record • Low base: Georgia with low per capita expenditure on • Strong business management team – an increased market healthcare – US$324, and with only 3.5 outpatient encounters share by beds from under 1% in 2009 to 24.9% currently, by per capita annually, has the vast potential for further increase.1 building the modern infrastructure. Entered the pharmacy and • Supported by attractive macro environment: Georgia – one of distribution market in 2016, where currently GHG holds c.30% the fastest-growing countries in Eastern Europe, is an open and market share. easy emerging market to do business, with real GDP growth2 • Robust corporate governance: exceptional in Georgia’s averaged 4.5% annually in 2007-2017. c.9% of GDP is spent on healthcare sector, as it is the only Premium Listed company healthcare and spending is growing at 11.5% compound annual in the Georgian healthcare industry (LSE: GHG LN); 57% of5 growth rate (“CAGR”) between 2000 and 2014; Government3 our shares are owned by Georgia Capital PLC (LSE: CGEO LN) spending more than doubled between 2011 and 2017 .4 – a UK listed holding company of a diversified group of • Implying long-term, high-growth expansion that is driven by: companies following completion of its demerger from BGEO – UHC Group PLC on 29 May 2018. The rest of the shares are owned – Pick-up in polyclinics, outpatient market by institutional investors and by our management as part of the – Adding new service Employee Stock Ownership Plan (“ESOP”). – Developing medical tourism • In-depth knowledge of the local market. Extensive geographic coverage Network of healthcare facilities and pharmacies, covering ¾ of the Georgian population. Regions of presence 16 21 16 270 Mega Lab Referral hospitals Community clinics Polyclinics Pharmacies Diagnostics 1NCDC statistical yearbook 2017. 4 Ministry of Finance. 2Ranked number six in World Bank’s 2018 “Ease of Doing Business Report”, 5GHG Group PLC successfully completed its IPO of ordinary shares on the ahead of all its neighbouring countries and several EU countries. Premium Segment of the LSE on 12 November 2015. 3Frost & Sullivan analysis. 5