PAGE 1 Russia as a Market of Elderly Tourism - Needs, Challenges, Potential

PAGE 2 Key Facts & Figures about Recomed Leading agency of Medical Tourism 300 PATIENTS A YEAR 40 COUNTRIES800 HOSPITALS 8 YEARS Three hundred people choose us annually We work with more than 40 countries We are proud to have the largest partnership network in Russia We are 8 years on the Market of Medical Tourism

PAGE 3 Our Reach Across the World 40 countries we work with and intend to expand with opening of offices NEW YORK Plan to open an office MOSCOW Currently existing office Austria Belgium Bulgaria China Croatia Estonia France Greece Hungary Italy Jordan Korea Lithuania Poland Russia Singapore Slovakia Switzerland Tunisia Vietnam Belgium Brazil Cyprus Cuba Czech Republic Finland Germany India Israel Japan Latvia Malaysia Philippines Spain Slovenia Thailand Turkey USA Ukraine Belarus

PAGE 4 Major Destinations For Russian Patients Out of 40 countries we work with mostly Russians go to GERMANY Basing on our inner data and statistics we can identify 4 key destinations with the following percentage 35% 5% 25% 35% ISRAEL SWITZERLAND OTHER

PAGE SECTION B – What Russian Market is about

PAGE 6 Numbers about Russia What the numbers are saying Current population of Russia 146,000,000 Life expectancy, Average 71 Age structure mln Human Development Index th Number of houses for the elderly 1411 total population: 71.6 years male: 65.1 years female: 76.5 years (2013) Capacity of homes for elderly 247,000

PAGE 7 Needs on Russian Market of Elderly Care Russia's ageing elderly population will increase from 33.8 to 42 million by the year 2030 Only 2% of long- term care beds in Russia are in the private sector. At least 500 nursing homes providing 25,000 beds are needed to meet the growing demand in the Moscow region, while 40,000 – 50,000 new nursing home beds are required in the Saint Petersburg region. The private market potential is estimated at USD 250 million per year for Moscow and USD 160 million USD for Saint Petersburg.

PAGE 8 Newly introduced legislation means that public-private partnerships in senior care are now possible in Russia, and accredited private nursing homes can get Aged & Physically Disabled (APD) patients from the public sector. Another important change is visible at the level of public attitudes towards senior care. Russia has a long tradition of caring for ageing relatives at home but today placing a disabled relative or even a parent into a nursing home is no longer considered to be a shame if they need permanent, round-the-clock care. New legislation and market changes Private nursing homes receive a government order

PAGE 9 Should grown-up children help their elderly parents? (% of answers in Russia and France), 2011 The study in Russia was based on the results of three waves of survey ‘Parents and children, men and women in the family and the society’ (2004, 2007, and 2011), which was part of the international project Generation and Gender. In France this project was carried out at approximately the same time and was entitled ‘Study of interfamily and intergeneration relations’. The sampling both in Russia and France was 11,000 families.

PAGE SECTION C – Current situation and driving factors for decision

PAGE 11 Current offers and costs on inner market Information collected on public resources and price offers Standard offers start from 1200 RUR or 20 eur per day or 36,000 rur or 600 eur per month Accommodation in a comfortable cottage in a green area; Comfortable rooms: 1,2,3,4 local (depending on the physical condition of the elderly person); Total floors: 3-storey houses; Eating 3-6 meals a day (depending on the appointments nutritionist); Round the clock attention, care and maintenance; Round the clock security; Daily leisure activities; Therapeutic physical training; Nursing care. Monitoring the medication recommended by a doctor; Laundry facilities; VIP offer start from rur(45-70eur) per day or 90, ,000 rur ( eur) per month *conversion to EUR is given according to the rate on 30 SEP 15, before the sanctions prices in euro could have been doubled

PAGE 12 Key important issues Care provider is well known and has lots of positive feedback from customers and also has infrastructure of resort(located by the sea or has thermal source) Relatives must be confident in fact that there's no language barriers at all and in daily routine or emergency situation elderly has comfort and confidence Very important factor for relatives to reach elderly relative in case of emergency situation. Well known that some of Moscow home of nursing charge same price or even more for offers from neighbouring Latvia, Estonia, Belarus or Finland Reputation and advantagesRussian speaking Geographical closeness Competitive price and offer Growing middle class more likely to consider idea of sending elderly relative outside of Russia if these main criteria are matching in offer itself Renew

PAGE 13 RECOMED RECOMED.RU +7 (495) MOSCOW, RUSSIA