BGEO Group Financial Update

GHG | 9M15 Financial Results (1/2) Income Statement Healthcare services Medical insurance Eliminations Total (GEL thousands, unless otherwise noted) Change Change Change 9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14 y-0-y y-o-y y-0-y Revenue 137,028 101,849 34.5% 40,724 59,171 -31.2% 6,322 18,309 171,430 142,711 20.1% Costs of services 77,283 59,444 30.0% 33,158 50,271 -34.0% 6,125 18,090 104,317 91,625 13.9% Cost of salaries and other employee benefits 49,759 38,420 29.5% 2,236 7,412 47,522 31,008 53.3% Cost materials and supplies 20,226 12,582 60.8% 909 2,427 19,317 10,155 90.2% Cost of providers 1,830 3,629 -49.6% 82 828 1,748 2,801 -37.6% Cost of utilities and other 5,469 4,813 13.6% 246 923 5,223 3,890 34.3% Net insurance claims incurred 33,158 50,271 -34.0% 2,651 6,499 30,507 43,772 -30.3% Gross profit 59,745 42,405 40.9% 7,566 8,900 -15.0% 197 219 67,113 51,086 31.4% Salaries and other employee benefits 16,897 11,122 51.9% 3,006 3,575 -15.9% 197 219 19,706 14,479 36.1% General and administrative expenses 5,641 4,786. 17.9% 1,821 1,856 -1.9% 2 7,460 6,642 12.3% Impairment of healthcare services, insurance premiums 2,680 1,321 103.0% 156 352 -55.8% 2,836 1,673 69.5% and other receivables Other operating income (expense) 2,461 1,318 86.7% 46 117 -60.3% 2 2,505 1,435 EBITDA 36,987 26,494 39.6% 2,630 3,233 -18.7% 39,617 29,727 33.3% EBITDA margin 26.5% 25.5% 6.5% 5.5% Depreciation and amortization (7,927) (5,185) 52.9% (444) (475) -6.6% (8,371) (5,660) 47.9% Net interest income (expense) (14,817) (9,505) 55.9% (87) 261 (14,904) (9,244) 61.2% Net gains/(losses) from foreign currencies 2,898 (2,654) 792 150 427.8% 3,690 (2,504) Net non-recurring income/(expense) (1,443) 1,369 (46) (31) (1,489) 1,338 Profit before income tax expense 15,697 10,519 49.2% 2,845 3,138 -9.3% 18,542 13,657 35.8% Income tax expense 512 (855) (491) (482) 1.8% 22 (1,337) Profit for the period 16.210 9,664 67.7% 2,354 2,656 -11.4% 18,564 12.320 50.7% Attributable to: - shareholders of the Group 13,473 7,444 81.0% 2,354 2,656 -11.4% 15,827 10,100 56.7% - non-controlling interests 2,737 2,220 23.3% 2,737 2,220 Holding company of BANK OF GEORGIA BGEO GROUP www.bgeo.com November 2015 Sources: GHG internal reporting, financials are for 9M15

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