Investor Presentaiton
GHG
Market
shares
GHG
strategy
Capacity
Revenue
In 9M15
17.6%
Georgia healthcare market & GHG market share evolvement
Hospitals
Maintain dominant market share in
hospitals by capacity and revenue
GEL 1.2bln()
Ambulatories
GHG Replicating hospital consolidation
experience in outpatient segment, with a
first mover advantage
GEL 0.9bln
Pharmaceuticals
Redistribution of funds expected
from pharmaceuticals to
ambulatory services
GEL 1.3blno
26.6%
Bed market share
2,000
Hospitals, GEL mln
1,500
1,000
Market
674 643
500
CAGR'03-14: 13.7%
'14-18: 11%
811 858 941
714
2008
2009
2010
2011
2012
2013
2014
Long-term
target
0.5%
33.0%
In 9M15
33.0%
Long-term
target
Ambulatories, GEL mln
2,000
1,647
1,489
CAGR'03-14: 17.9%
1,341
1,500
1,203
'14-18: 16%
1,075
2015E
2016F
2017F
.
•
•
Growth
drivers
Low utilisation (50-60%)
Fragmented market
Low equipment penetration
System inefficiency (low nurse-to-doctor ratio)
Holding company of BANK OF GEORGIA
GHG: accelerated revenue market share growth
on the back of well-invested asset base
(1) 2015E market value
BGEO www.bgeo.com
GROUP
November 2015
2018F
1,000
500
695
592
473
376
241 272
2008
2009
2010
2011
2012
2013
•
Low outpatient encounters
Fragmented market
New prescription policy
802
2014
2015E
GHG: replicating hospital cluster model and
consolidation experience in ambulatory sector
1,448
1,250
1,079
930
2016F
2017F
2018F
17.0%
0%
38.0%
25.0%
Share in total
Healthcare spending
Year 2014
medium term target
GDP nominal, GEL bln
CAGR'03-14: 11.8%
19.1 18.0
'15-20: 9%
20.7
24.3 26.2 26.8 29.2 30.7 33.21
36.2
47.2
43.2
39.6
2008
4.8%
2009
5.1%
2010 5.3%
2011
5.3%
2012
5.5%
2013
6.1%
2014
6.4%
2015E
7.0%
2016F
7.3%
2017F
• 7.6%
2018F
7.8%
2019F
2020F
Sources: GHG internal reporting: Frost & Sullivan analysis, 2015; NHA, Ministry of Labor, Health and Social Affairs of Georgia; NCDC; OECD, World Health
Organisation and World Bank, 2013 data
new prescription policy introduced in 2014
ambulatory market consolidation
Weakening of existing pharma-duopoly
spending on pharma Georgia's 38% vs 16-17%
in Europe; decreasing trend in comparable
countries
page 40
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