Investor Presentation Fourth quarter and full year of 2017 results - PowerPoint PPT Presentation

Investor Presentation Fourth quarter and full year of 2017 results Investing in the growth and quality of healthcare in Georgia February 2018 ghg.com.ge

Contents GHG | Overview and strategy GHG | Results discussion – 4Q17 and FY17 Macroeconomic and Industry Overview Annexes 2

A unique investment story supported by compelling theme GHG ’ s (1) market leading position, a unique business model with significant growth potential and highly experienced management team make it a credible investment opportunity Market leader Long-term high-growth opportunities 1 3 ✓ Low base: only US$325 healthcare spending per capita (6) , only 3.9 outpatient encounters per ✓ The largest healthcare service provider in Georgia: 24.5%market share by number of capita annually (7) , only US$39,800 revenue per referral hospital bed for GHG (8) beds (3,014) 2 . The number of beds will reach to 3,320 as a result of launch of Deka hospital in next few days ✓ Supported by attractive macro: (9) Georgia – one of the fastest growing countries in Eastern Europe, open and easy emerging market to do business (10) , with real GDP growth averaged ✓ The largest pharmaceuticals retailer and wholesaler in Georgia : 30% market share by 4.5% annually in 2007-17F. Only 8.7% of GDP is spent on healthcare and spending growing sales (3) , over 2 million client interactions per month, with 0.5 million loyalty card members at 11.5% CAGR 2000-2014 (6) ; government spending more than doubled between 2011-17 (11) ✓ The 2 nd largest medical insurer in Georgia: 29.0% market share (4) , c.155,000 individuals ✓ Implying long-term, high-growth expansion that is driven by: insured as at January 2018 – Universal Healthcare Program (UHC) ✓ The widest population coverage : coverage of over 3/4 of Georgia’s 3.7 million – Pick-up in polyclinics (outpatient market) population (5) with 37 high quality hospitals, 16 district polyclinics, 24 express outpatient – Close service gaps clinics, and 255 pharmacies – Potential to develop medical tourism ✓ Institutionalising the industry : strong corporate governance; standardised processes; improving safety and quality by implementing the Joint Commission International (“JCI”) benchmarked standards; own personnel training center 2 4 Business model with cost and synergy advantages Strong management with proven track record ✓ The single largest integrated player in the Georgia healthcare ecosystem of GEL 3.5 ✓ Strong business management team – an increased market share by beds from under 1% billion aggregate value with a cost advantage due to its scale of operation : purchasing, in 2009 to 24.5% currently, with a built-in additional development capacity (Deka hospital) centralisation of administrative functions – The next largest healthcare services competitor has only 5% market share by beds – The largest purchaser of pharmaceutical products in Georgia ✓ Robust corporate governance : exceptional in Georg ia’s healthcare sector, as it is the only ✓ Better access to professional management and high calibre talent Premium Listed company in the Georgian corporate industry (LSE:GHG LN) (12) ; 57% – One of the largest employers in the country: 15,078 full time employees, including 3,496 shareholder is BGEO Group PLC – listed on the Premium segment of the Main Market of the physicians, 3,205 nurses and 834 pharmacists London Stock Exchange (LSE:BGEO), part of the FTSE 250 index. The rest of the shares are ✓ Referral system & synergies with insurance and pharma business: owned by institutional investors and management as part of Employee Stock Ownership Plan – Presence of patient pathway, and referral synergies (ESOP) – Insurance activities provide steady revenue stream for our polyclinics and bolster hospital ✓ In-depth knowledge of the local market patient referrals – 0.5 million loyal customers in our pharma business with an upside to cross-sell Sources: (1) Georgia Healthcare Group established in Georgia and in UK (7) NCDC statistical yearbook 2016 (2) National Center for Decease Control (“NCDC”) . Data as of December 2016, updated by GHG to include the changes before 31 December 2017 (8) GHG internal reporting 2017. Revenue per referral hospital bed excludes data of newly lunched Tbilisi Referral Hospital (3) Market size Frost and Sullivan analysis (9) Euromonitor, World Bank ’ s 2012 “ Ease of Doing Business Report ”, other public information. (4) Market share by gross revenue; Insurance StateSupervision Service Agency of Georgi a (“ISSSG”) as of 30 September 2017 (10) Ranked #9 in World Bank ’ s 2018 “ Ease of Doing Business Report ”, ahead of all its neighboring countries and several EU countries. (5) Geostat.ge, data as of 2015. The coverage refers to the geographic areas served by GHG facilities 3 (11) Ministry of Finance, Ministry of Economy (6) Frost and Sullivan analysis (12) GHG Group PLC successfully completed its IPO of ordinary shares on the Premium Segment of LSE on 12 November 2015

GHG – shareholder structure and share price Strong support from institutional investors Geographically well-diversified Top Investors (1) at IPO (1) institutional shareholder base (1) UK & Ireland – 38% Institutional USA & Canada – 31% Investors represent Luxemburg – 13% 40% of the shareholders BGEO 57.0% Other – 17% Investors USA & Canada 3% Wellington Management 7.4% 17% Institutional investors UK & Ireland 31% 40% 13% BGEO Luxemburg T – Rowe Price 6.1% 57% Other Managament and other 38% Average trading daily Stock Price Performance (2) Market Capitalisation (3) volume 3.40 GBP as at 700.0 5 Feb 2018 700.0 625.0 600.0 3.50 600.0 Stock 500.0 3.00 500.0 trading US$ thousands 398.1 US$ millions 2.50 400.0 1.7 GBP - IPO Price performa 400.0 GBP 2.00 300.0 nce 300.0 210.4 1.50 200.0 145.3 200.0 1.00 100.0 100.0 9-Nov-2015 18-Nov-2015 27-Nov-2015 6-Dec-2015 15-Dec-2015 24-Dec-2015 2-Jan-2016 11-Jan-2016 20-Jan-2016 29-Jan-2016 7-Feb-2016 16-Feb-2016 25-Feb-2016 5-Mar-2016 14-Mar-2016 23-Mar-2016 1-Apr-2016 10-Apr-2016 19-Apr-2016 28-Apr-2016 7-May-2016 16-May-2016 25-May-2016 3-Jun-2016 12-Jun-2016 21-Jun-2016 30-Jun-2016 9-Jul-2016 18-Jul-2016 27-Jul-2016 5-Aug-2016 14-Aug-2016 23-Aug-2016 1-Sep-2016 10-Sep-2016 19-Sep-2016 28-Sep-2016 7-Oct-2016 16-Oct-2016 25-Oct-2016 3-Nov-2016 12-Nov-2016 21-Nov-2016 30-Nov-2016 9-Dec-2016 18-Dec-2016 27-Dec-2016 5-Jan-2017 14-Jan-2017 23-Jan-2017 1-Feb-2017 10-Feb-2017 19-Feb-2017 28-Feb-2017 9-Mar-2017 18-Mar-2017 27-Mar-2017 5-Apr-2017 14-Apr-2017 23-Apr-2017 2-May-2017 11-May-2017 20-May-2017 29-May-2017 7-Jun-2017 16-Jun-2017 25-Jun-2017 4-Jul-2017 13-Jul-2017 22-Jul-2017 31-Jul-2017 9-Aug-2017 18-Aug-2017 27-Aug-2017 5-Sep-2017 14-Sep-2017 23-Sep-2017 2-Oct-2017 11-Oct-2017 20-Oct-2017 29-Oct-2017 7-Nov-2017 16-Nov-2017 25-Nov-2017 4-Dec-2017 13-Dec-2017 22-Dec-2017 31-Dec-2017 9-Jan-2018 18-Jan-2018 27-Jan-2018 5-Feb-2018 - - 2017 Oct-Dec 2016 YTD (29- 5-Feb-2018 2015 Dec'17) Note: (1) As of 29 December 2017 (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 as of 5 February 2018 4 (3) Source: Bloomberg; Market Capitalisation of GHG as of 5 February 2018, GBP/USD exchange rate 1.3959

Segment overview Georgia Healthcare Group Healthcare services Pharma Medical insurance Key Segments Hospitals Polyclinics Pharma Medical Insurance (outpatient clinics) Referral Hospitals Community Hospitals General and specialty hospitals Basic outpatient and inpatient Outpatient diagnostic and treatment Wholesaler and urban-retailer, with a Range of private insurance products offering outpatient and inpatient Key Services services in regional towns and services in Tbilisi and major regional services in Tbilisi and major regional countrywide distribution network purchased by individuals and municipalities cities cities employers Market Size GEL 0.7bln (2) GEL 1.5bln (2) addressable (1) GEL 0.2bln (3) GEL 1.2bln 2017 21% by revenue Market Share 2% by revenue 30% by revenue 29% by revenue 24.5% by beds (total 3,014 beds) 16% Selected 84% 12 clusters with Operating c.155,000 individuals insured 16 district Policlinics 255 pharmacies in major cities as at January, 2018 Data 24 express outpatient clinic 16 hospitals 21 hospitals 2017 2,519 beds 495 beds 2% 29% 3% 7% 59% GEL 747.8mln (4) Revenue Gross 2012-2017 2012-2017 2012-2017 2012-2017 CAGR 43% CAGR 12% CAGR 31% GEL 53.7 mln CAGR -5% GEL 225.5 mln GEL 22.1 mln GEL 15.7 mln GEL 450.3 mln Financials 2% 0% 36% GEL 108.1mln (4) 20 17 62% EBITDA 2012-2017 2012-2017 CAGR 51% GEL 38.9 mln GEL 67.6 mln GEL 2.0 mln CAGR 30% GEL -0.4 mln EBITDA Margin: 27.4% EBITDA Margin: 13.2% EBITDA Margin: 8.6% EBITDA Margin: -0.8% ` Sources: (3) ISSSG, 9M17 annualised (1) Frost & Sullivan analysis, 2017. Market adjusted by the company to exclude the revenue from specialty beds - addressable market 5 (4) Net of intercompany eliminations (2) Frost & Sullivan analysis 2017. Polyclinics market excludes revenue from dental and aesthetic services