Retail (pharmacy) business overview and growth perspectives
                                                                                 Speaker: Nikoloz Gamkrelidze
                                                                                                        May 2022
                                                                                                       ghg.com.ge
                                                                                                                Content
                                       Retail pharma overview
                                          o Local and international presence 
                                          o International franchises
                                          o E-commerce
                                          o Market update
                                       Financial Performance overview 
                                       Strategy on local and international markets 
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                                                         The largest pharmaceuticals retailer in Caucasus
                                    Local and international presence 
                                                                     Georgia:
                                                             Population, millions (2021) – 3.7
                                                             Nominal GDP, USD bn (2021) – 18.7
                                                             GDP Per Capita, USD (2021) – 5,014 
                                                    Armenia:
                                            Population, millions (2021) – 3.0
                                            Nominal GDP, USD bn (2021) – 13.9                      Azerbaijan:
                                            GDP Per Capita, USD (2021) – 4,701              Population, millions (2021) – 10.1
                                                                                            Nominal GDP, USD bn (2021) – 54.6
                                                                                            GDP Per Capita, USD (2021) – 5,398
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                                                Pharmacies                          Stores 
                                                                                    5 in Georgia 
                                                353 in Georgia                      2 in Armenia
                                                6 in Armenia              Optics     1
                                                                                     Store
                                                                                     Georgia
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                                                                                                                                                      Two separate brands under retail
                                                                                   111 pharmacies                                                                                                                   248 pharmacies
                                                                                            105 Georgia                                                                                                                                Georgia 
          Concept:                                                                             6 Armenia
          •Pharmacy & More
          •Shopping mall type with brand Shop-In-Shop formats 
          inside
          •Middle/high segment brands
          •Lifestyle brand: Retail banner for top brands
          •300sq.m. plus new formats                                                                                                                                                                         Product Categories
            Concept                                                   Product Categories                                                     Concept
          •Main cities, city centers, shopping malls
            •  Pharmacy & More                                         •   Rx & OTC medicines                                                •   Contemporary Pharmacy                                     •   Focus on Rx & OTC medicines
          •New service experiences, self checkout, digitalization
            •  Big formats, Shop-in-Shop model inside                  •   Personal care                                                     •   Professional pharmacist care                              •   Patient care products
            •  Middle and high customer segments                       •   Lab retail                                                        •   Middle and low customer segments                          •   Basic (mass demand) body, face and 
          •E-commerce: GPC platform as core for loyalty, other e-
            •  Main cities, city centers, shopping malls               •   Optics, sunglasses, lenses, perfumes,                             •   Full geographical coverage – standalone,                      hair care non-med categories for basic 
            •  Intensive marketing of product brands                                                                                             hospitals, inside store formats                               low and middle customer segment
          commerce platforms as traffic generator 
            •  Average size c.130 sq.m                                     make-up, toys, books, baby and mother                             •   Average size 80sq.m
                                                                           care, orthopedics, healthy food and 
          •                                                                food supplements, sport, home and 
                                                                           lifestyle devices 
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