Georgia Healthcare Group A Long-term, High-growth Investment Story - PowerPoint PPT Presentation

Georgia Healthcare Group A Long-term, High-growth Investment Story Investor Presentation - FY2015 results February 2016

Contents GHG | Overview and strategy GHG | Results discussion Industry and Macroeconomic Overview Annexes 2

A unique investment story supported by compelling theme s (1) market leading position, a unique business model with significant growth potential and highly experienced GHG ’ management team make it a credible investment opportunity Market Leader Market Leader Long-term High-growth Opportunities Long-term High-growth Opportunities 1 3  Largest market share in Georgia with revenue upside: 26.6% market share by number  Very low base: healthcare services spending per capita only US$ 217 , outpatient encounters only 3.5 per capita annually (6) , GHG revenue per hospital bed only US$ 32,000 (4) of beds (2,670), which is expected to grow to c.30.0% as a result of renovation of recently acquired hospital facilities, scheduled for completion in 2016 and 2017 (additional c.500  Supported by attractive macro: (7) Georgia – one of the fastest growing countries in Eastern beds) (2) Europe, open and easy (8) emerging market to do business, with real GDP growing at a CAGR of 5.3% between 2005-14. Only 5.8% of GDP spent on healthcare services and spending at  Largest medical insurer : c.234,000 persons insured and 38.4% market share (3) healthcare services growing at 9% CAGR 2008-2013; government spending nearly doubled between 2011-15 (9)  Widest Population Coverage: coverage of over 3/4 of Georgia’s 4.5mln population with  Implying long-term, high-growth expansion that is driven by: 45 high quality hospitals and ambulatory clinics (4,5) Universal Healthcare Program (UHC) covering Georgia ’ s population driving utilisation of basic – healthcare services nationwide, primarily inpatient (inpatient market was GEL 1,075mln in 2014)  Institutionalising the industry: Strong corporate governance; standardised processes; Pick-up in ambulatory growth (outpatient market was only GEL 802mln in 2014) driven by newly – improving safety and quality by implementing JCI benchmarked standards; own personnel introduced prescription policy and improved quality in supply (10) training center – Even small investments in medical equipment expected to increase market Business Model with Cost and Synergy Advantage Business Model with Cost and Synergy Advantage 4 2 Strong Management with Proven Track Record Strong Management with Proven Track Record  The single largest scale player on Georg ia’s healthcare market with cost advantage  Strong business management team – increased market share by beds from under 1% in through scale: purchasing, centralisation of administrative functions, training center 2009 to 26.6% currently, with built-in additional development capacity – Next competitor has only 5% market share by beds and less than 3% market share  Achieved our target of c.30% EBITDA margin ahead of time, delivering 29.8% by hospital revenue EBITDA margin in 4Q15  Better access to professional management and high calibre talent  Robust corporate governance : exceptional in Georg ia’s healthcare sector, as it is the only – One of the largest employers in the country: c. 9,700 full time employees, including 2,705 physicians (4) Premium listed company from healthcare sector (LSE:GHG LN) (11) ; 65.07% shareholder is BGEO Group PLC – listed on the premium segment of the main market of the London Stock  Referral system & synergies with insurance: Exchange (LSE:BGEO), part of FTSE 250 index. The rest of shares are owned by Presence along patient pathway, and referral synergies – Institutional Investors Insurance activities provide steady revenue stream for our ambulatory clinics and – bolster hospital patient referrals  In-depth knowledge of the local market Sources: (6) NCDC 2014 (1) Georgia Healthcare Group established in Georgia and in UK (7) Euromonitor,World Bank ’ s 2012 “ Ease of Doing Business Report ”, other public information. (2) Market share by number of beds. Source: National Center for Decease Control, data as of December 2014, updatedby company to include changes (8) Ranked #24 (of 189 countries) in World Bank ’ s 2016 “ Ease of Doing Business Report ”, ahead of all its neighboring countries and several EU before 31December 2015, Additional development capacity at Deka and Sunstone of c.500 beds countries. (3) Market share by gross revenue; Insurance State Supervision Service Agency of Georgia as of 30 September 2015 (9) Ministry of Finance, Ministry of Economy 3 (4) GHG internal reporting (10) Frost & Sullivan 2015 (5) Geostat.ge,data as of 1 January 2014. Coverage refers to geographic areas served by GHG facilities (11) GHG Group PLC successfully completed its IPO of ordinary shares at the Premium Segment of LSE on 12 November,2015

GHG – shareholder structure and share price Institutional investors (1) Geographically well-diversified (1) Top 3 Investors (1) - strong support Institutional USA & Canada – 31% Investors represent UK & Ireland – 24% 4.8% 91% of the book Luxemburg – 19% Scandi – 8% Investors Other – 18% USA & Canada 5% 3.4% 18% UK & Ireland 31% Institutional Luxemburg 8% Non-Institutional Scandi 3.1% 19% 95% Other 24% Stock Price Performance (2) Average trading volume (3) Market Capitalization (3) GHG:LN Average trading volume (number of shares) 2.20 400.0 334.6 Stock 100,000 2.00 84,834 trading US$ millions 300.0 1.80 80,000 GBP performa 1.60 60,000 nce 200.0 1.40 40,000 1.20 100.0 20,000 - - 5-Feb-2016 Nov15-Feb5 GHG:LN Note: (1)As of 31 December 2015 (2)Share price change calculated from the closing pries of GHG LN, starting from trading date 9 November 2015 to the price of GHG LN on 5th February 2016 4 (3) Source: Bloomberg; Market Capitalisation of GHG as of 5th February 2016, GBP/USD exchange rate 1.4503.

Segment overview Healthcare services Medical insurance Key Segments Referral and Specialty Community Hospitals Ambulatory Clinics Medical Insurance Hospitals General and specialty hospitals Basic outpatient and inpatient Outpatient diagnostic and treatment Range of private insurance products offering outpatient and inpatient Key Services services in regional towns and services in Tbilisi and major regional purchased by Individuals and services in Tbilisi and major regional cities municipalities employers cities Market Size GEL 1.2bln (2015) (1) GEL 0.9bln (2015) (1) GEL 0.14bln (2015) (1) 18% by revenues 26.6% by beds (2,670), which is expected to grow to c.30.0% as a result of 1% 38% Market Share renovation of recently acquired hospital facilities (additional c.500 beds); 17% Selected 83% Operating 10 clinics 234,000 insured Data 16 hospitals 19 hospitals 2015 2,209 beds 461 beds 68% 2% 7% 23% GEL 239.1mln (3) Revenue 2012-2015 2012-2015 2012-2015 2012-2015 CAGR 12% GEL 55.3 mln CAGR 14% GEL 168.5 mln CAGR 64% GEL 17.6 mln GEL 5.3 mln CAGR 9% Financials 3% 5% 9% 83% 2015 GEL 56.1mln EBITDA 2012-1015 2012-1015 2012-1015 2012-2015 CAGR 70% CAGR 24% GEL 46.9 mln GEL 4.8 mln GEL 1.8 mln CAGR 33% GEL 2.6 mln CAGR -15% EBITDA Margin (2) : 28.0% EBITDA Margin (2) : 27.7% EBITDA Margin (2) : 30.5% EBITDA Margin (2) : 4.7% Source: (1) Frost & Sullivan analysis, 2015 5 (2) EBITDA margins are based on gross of intercompanyeliminationsas well as gross of head office and management costs (3) Revenue net of corrections&rebates and intercompany eliminations

Unique “Patient Capture” business model Well established hospital network allows a seamless patient treatment pathway from local doctors to multi-profile or specialised hospitals whilst the medical insurance business plays a feeder role in originating and directing patients GHG operates a highly integrated GHG operates a highly integrated patient capture business model patient capture business model Three key pillars of business model A vertically integrated care pathway A vertically integrated care pathway Referral & Specialty Referral & Specialty 16 referral & specialty hospitals provide secondary and tertiary level healthcare services Hospitals Hospitals operating 2,209 beds Community Hospitals Community Hospitals Community Hospitals Community Hospitals 19 community hospitals provide primary out- and inpatient healthcare services operating 461 beds ambulatory clinics provide primary and secondary outpatient 10 Ambulatory Clinics Ambulatory Clinics healthcare services 3/4 of Georgia's 4.5mln population covered (1) Patients Patients 7.4 mln GEL healthcare services revenue driven by medical insurance division for 2015 (2) Sources: (1) Geostat.ge, data as of 1 January 2014 6 (2) GHG internal reporting.