I will start with the general company performance, as the performance of the company is behaving

positively, from operational performance. Company’s utilization, as bed occupancy rate is 60% and is
growing. This means that clinical service of the company is performing good and depending on the
covid-19 pandemic, it is possible to be increased from this kind of external factor and also from
company’s future development plan. I will say that for optimization company is transforming it’s assets
by new assets, as we can see that company is developing and trying to optimize its operations by new
assets. Also company is going to fully digitalize the service processes and make automate. This fully
integrated health information system will help company and employees to manage customers on an
integrated level. For managers this kind of solution is good for management control and decision making
for development.

About financial performance of the company I can say that, the revenue of the company has lowered
from past year from 74.8 mln to 70.8 mln. We can say that this maybe was caused of locking down the
borders of the countries as medical customers were coming from other countries as well and there was
almost 0 customer for 2020 year. The EBITDA margins were lowered from 25.6% to 20.8%, but company
has good predictions for future, as they are adding some investments in company, as they are creating
some new services, that is not yet developed in Georgia and this will increase their profitability I think.

From my IFAS & EFAS and key success factors tables I can add some points that company has to work on
and keep its market leader position strongly. First of all, as customer I think that, company’s one of the
biggest competitor Aversi Group has much better brand recognition and positioning in market as GHG is
not spending their funds in marketing and customer relations activities as Aversi. Their brand
recognition is lower, maybe because, they have arrived in Georgian market at 2015 and Aversi was
market leader up to 2016-17. GHG should invest some funds in this criteria as well.

Also it will be important to work on clinical tourism with more power as the leading countries with
strong medical care sectors are because of medical tourism and this is not easy and short run task. The
main barrier for making this kind of service successful is to get experienced and professional medical
staff, that are not only experienced but also well known medicals.

Here is my IFAS & EFAS and STRATEGIC INDUSTRY MATRIX

STRENGTH W Rating W-Score Column1

The company is market leader in medical sector in
High brand awareness and positioning 0.100 4 0.40 Georgia

Strong Financial resources
Wide variety of services
Strong partnership network/Exclusive
partnership
Business model with cost and synergy
advantages
0.100 4 0.40 Company had 3.8 billion GEL worth capital
The only fully integrated healthcare provider in the
region: Referral Hospitals, Community Clinics and
Polyclinics, Pharmacy and distribution, Medical
0.125 5 0.63 Insurance, Diagnostics
Storong partnership network on every business type,
0.100 3 0.30 that company has, like insuranse, pharmasy and etc.
The single largest integrated company in the Georgia
healthcare ecosystem with a cost advantage due to its
scale of operation; Referral system and synergies with
0.075 3 0.23 insurance and Pharmacy and Distribution businesses
 Strong business management team – an increased
market share by beds from under 1% in 2009 to 23%
currently, by building the modern infrastructure.
Strong management with proven track Entered the pharmacy and distribution market in 2016,
record 0.050 4 0.20 where currently GHG holds c.32% market share.
Broad geographic coverage and diversified healthcare
services and pharmacy network covering 3/4 of
Regional coverage 0.100 5 0.50 Georgia’s population
Successful implementation of almost all elements of the
Healthcare Information System (“HIS”) in all its
Digital Transformation 0.075 4 0.30 healthcare facilities across the country
WEAKNESS
Lack of doctors & nurses: quality and new
generation 0.100 3 0.30 Complete first round of stuff retraining by 2020
Complete quality management framework
implementation. Receive JCI accreditation on some of
Quality of basic medical care 0.100 5 0.50 our major referral hospitals in coming years
Continue to launch new services Capture patient flow
Lack of services 0.075 3 0.23 export.
1.00
0 3.98

OPPORTUNITIES W Rating W-Score Column1

Government Economic Plan for medical care sector
Clear Strategy to Achieve Long Term Growth
The increasing number of international arrivals in
Georgia represents a natural base for developing
medical tourism in the country
COVID-19 pushing up medical care sector
Government is working on new policy for medical care support, with
new subsidies, economic support and business aids, developed social
0.175 4 0.70 aids for citizens, anti-pandemic Measures
Liberal Reforms and Prudent Policy, Regional Logisticts and Tourism
0.075 5 0.38 Hub, Strong FDI, Support From International Community
Developing medical tourism strategy, Developing a service structure for
foreign patients, Increasing awareness within post-Soviet countries
0.125 4 0.50 through different marketing activities and road shows
business announced immediate readiness to allocate six of our hospitals
(c.600 beds) across the country for COVID-19 patients. In May, two of
0.150 2 0.30 them officially started to engage and receive the patients.

Long-term high-growth opportunities 0.100 3 0.30 Supported by attractive macro environment

THRETS
The competitors are developing rapidly as well, as we can see the
Strong competitors 0.150 3 0.45 revenues of the company has decreased this year
Until the medical turism is developed in country the medical care
Small population of the country 0.125 4 0.50 segment customers are low
Those factors are important for company because of economic crisis
Political and Economic factors 0.100 1 0.10 can reflect on customers in future and government as well

1.000 3.23

Key Success Factors GHG AVERSI GROUP

W Weight: 1 -5 Weighted Score Weight: 1 -5 Weighted Score

Healthcare services (Hospitals and Clinics) 0.150 5 0.75 5 0.75
Pharmacy and distribution 0.150 5 0.75 4 0.6
Medical Insurance 0.150 5 0.75 3 0.45
Geographic Coverage 0.100 5 0.5 4 0.4
Partnership Network 0.075 4 0.3 4 0.3
Customer service and support 0.075 3 0.225 5 0.375
Price/Affordability 0.100 4 0.4 3 0.3
Brand recognition and positioning 0.100 4 0.4 5 0.5
Marketing and customer relations activities 0.05 3 0.15 4 0.2
Service diversity offered to customers 0.05 5 0.25 4 0.2
1.000 4.475 4.075