Volume 3, Issue 3 The Global Insider — Euro-Center Newsletter Page 1

The Global Insider Euro-Center NewsletterVolume 3, Issue 3September, 2016

• New York • São Paulo • Mallorca • Madrid • Prague • Larnaca • Istanbul • Cape Town • Moscow • Beijing • Bangkok • Sydney •

Irena ŽáčkováChief Financial Officer

Introduction - The Euro-Center Super User Conference 1Update from Turkey 1Foreign investment in providers 2Changes in Russian legislation for expatriates 2Zika Virus Status 3Rio 2016 Olympics Games 3Mediterranean Africa 4Site inspections & Euro-Center employee profile 5

Euro-Center Holding • This title expresses my feeling after being a guest at the annual Euro-Center Super User conference, which hosts key operational staff from all Euro-Centers It was held in the beginning of September in Cape Town • I joined with Michaela Zelenkova, our newly appointed business controller of Euro-center Holding • Finance presentations are not exactly exciting, but we went about to address key issues that required everyone’s understanding and cooperation to gain full benefit in our busi-ness • These topics included: ( 1 ) More business has meant an increase of claims expenses, which in turn results in higher financial risks Currently we pay approx EUR 7 million in claims expenses per month compared to EUR 4 million in 2014: Euro-Center executes over 3000 monthly payment in 53 currencies Automated processes and coordinated

procedures worldwide are naturally essential ( 2 ) Changing over to Citibank for claims payments in 2016 has been a major implementation with its pros and cons The benefits are efficiency, less workload across the ECs and smoother cash flow • For me as a CFO, meeting the key operational people from the ECs is inspiring EC Holding can develop any finance guidelines, but without the greater picture from all our people around the world, we will not be able to execute the procedures and meet requirements of ECs, banks, shareholders, providers and custom-ers • I am pleased to see that while the financial department’s requirements are sometimes cumber-some or strict; the response from Euro-Centers is positive and solutions orientated A team spirit like this is a natural precondition for success and our growing business Thank you all

Euro-Center Turkey • Following the at-tempted coup on President Erdoğan, a three months state of emergency was imposed in Turkey on 21 7 2016 This is however not expected to impact tourists significantly • In certain urban areas like in Istanbul, the Turkish authorities are conducting ID checks on members of the public and there is also a larger than usual number of police check-points on main roads across Turkey For-eigners are therefore advised to keep their passports and a printed copy of their e-visa or their residence permits with them at all times • Even though the situation in Turkey has calmed down, the security environment remains potentially volatile There is no pre-dictable threat for civilians but tourists are advised to be vigilant and keep away from government buildings and crowded areas

Update from Turkey

Ayce BirercinGeneral Manager

Contents of this issue

A meeting with dedicated, enthusiastic and knowledgable people

EC Super User Conference, Cape Town — photo by Jan Šafář

Page 2 The Global Insider — Euro-Center Newsletter Volume 3, Issue 3

Euro-Center Moscow • As of June 2016 the Russian government has implemented new labour legislations aimed at impos-ing control with the flow of illegal immi-grants Henceforth every person seeking a job opportunity in Russia is obliged to buy a local governmental medical insur-ance Policies by non-Russian insurance companies are no longer accepted for work permit purposes • The new regu-lations do not differentiate between the worker’s qualification nor country of ori-gin Therefore, expatriates from developed countries coming to Russia for career purposes, will be affected: They will now have to buy a state-sponsored insurance policy • The cost of the insurance is only

News from Euro-Center MoscowEuro-Center Moscow • The last

months were busy times for Euro-Center Moscow: The summer sea-son is always an exciting, although intense, time This included inte-gration of new IP telephony sys-tems, training of new operational team members, quality control upgrades and much more Also, our medical department has nev-er been more occupied than this summer, having handled over 30 medical transportations They also participated in a remote site event in Central Asia • In addition to this, Euro-Center Moscow under-took site inspections to, among other areas, the Baltic States and a further extensive network trip is again scheduled for later in the year to Central Asia

Euro-Center Moscow call center - photo by EC Moscow

Maria BerkovaGeneral Manager

Sergey NickoulitchevKey Account Manager

Changes in Russian legislation for expatriates

EUR 30-35 per annum, and is aimed at job seekers from countries with a generally lower level of qualification, such as Central Asia The state-sold policies only have lim-ited coverage and grant access strictly to state-run medical facilities with no actual customer support • EC Moscow therefore does not recommended the sole purchase of these policies in order to receive quali-fied medical assistance Expatriates or their companies will merely have to buy the state-sponsored polices in addition to traditional international expatriate insur-ances • It is important to highlight that the new legislation does not revoke the validity of international policies in Russia They are also still accepted by Russian consulates worldwide for entry visas and at Western-orientated hospitals across Russia, just as they always were • The regulations do not affect foreign citizens, coming to Russia for vacation or education

Sergey NickoulitchevKey Account Manager

Euro-Center Moscow • After the Iron Curtain lifted in the 90s, Western inves-tors were keen to explore post-Soviet Union markets Western-trained doctors came to practice in Russia and there were numerous attempts (some successful and some less so) to build Western style hos-pitals However, as the 21st century com-

menced, the tendency reversed Built and half-built clinics were sold to Russian investors and with few exceptions, hu-man resources generally went elsewhere Therefore, the majority of clinics with a reputation in the expatriate communities as being Western-style facilities are in fact now owned by local investors and run ac-

Moscow - photo by Ajay Sood, Wikitravel.org

cording to local know-how Only recently, after all the enthusiasm and disenchant-ment of the first wave, Russia and neigh-boring countries experience a new inflow of investments and interest from abroad:

•A recently opened clinic in Vladivostok is supported by foreign capital coming from Scandinavia.

•Asian investors coming from gas and oil industry has been actively investing in clinics in Russia and neighboring countries, like Kazakhstan and Azerbaijan.

•North American investors launched an investment project of Universum Clinic in Kiev, Ukraine.

•A famous Turkish SEMA corporation established a hi-tech cardiology unit in Almaty, Kazakhstan.

Similar projects are developing in Tomsk (Russia), Vilnius (Lithuania) and Baku (Azerbaijan) • This tendency to integrate and mutually share experience is more than welcome, and will definitely bring fruit in the near future

Foreign investment in providers

Volume 3, Issue 3 The Global Insider — Euro-Center Newsletter Page 3

Euro-Center São Paulo • During South America`s first Olympics Games, Rio de Janeiro welcomed 10,500 athletes from 206 countries, and an estimated 500 000 visitors from around the world • Prior to the event there was much concern about Brazil being the host In addition to the Zika virus, the economic situation had changed dramatically since Brazil won the hosting-right in 2009 At that time Brazil was in the midst of an economic boom, but come 2016 the country is seeing the worst recession in its history The social issues had increased, crime was rifer and there were concerns that the sports facilities would not be ready in time • Against this backdrop, EC São Paulo worked hard to be on the forefront with any damage control and prevention Among other actions, we wrote newsletters to our customers on do’s and don’t’s, and made specialised tailor-made provider networks in all areas where the Olympics was held The providers were inspected by EC São Paulo staff and cus-tomers informed As it happened, we did not experience a single Olympic visitor re-lated incident nor did anyone contact us

Rio 2016 Olympics Games

Aline EstrellaOffice Manager

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with Zika concerns From other Euro-Cen-ters’ experience with major sports events in third world countries (e g the soccer world cups in South Africa 2010 and Brazil 2014) we knew this to be the case, but we still did not take the task lightly • Fortu-nately, Brazil managed to be ready in time and Rio’s natural beauty and the welcom-ing of the Brazilian people was a great ex-perience for all who had the fortune to visit what is locally known as “Cidade Maravil-hosa” — `Wonderful City`

Zika Virus StatusEuro-Center São Paulo • The Zika virus was a subject of

much media attention this year, and some concerned expa-triates did contact us It is, however, our perception that the expatriates we service in Latin America are more relaxed now in relation to Zika fears In Brazil we have had a colder winter than usual, and coupled with the efforts to eliminate breeding spots of mosquitos that transfer Zika, the infection rate is re-duced by 90% compared to the peak in February By the time summer comes, our health authorities will be more on the fore-front • Media attention on the Zika virus has recently shifted to South East Asia Our colleagues at Euro-Center Bangkok however describes that the situation remains under control with information and travelers and expatriates with whom they

have contact are not too concerned • While cer-tain policy holders have to be vigilant, the fact remains that mosquito borne diseases such as Malaria, Dengue fe-ver and chikungunya affect our clients’ poli-cyholders much more in our region, as well as in Asia and Africa than the Zika virus does

Like other BRICs countries, Brazil has had serious financial woes the last years However, recently, our economy appears to be im-proving and perhaps last month’s impeachment of Dilma Rousseff will spur our government to give the recovery of our economy full attention Increasingly analysts indicate a brighter future for Brazil and our continent, and at EC Sao Paulo do indeed notice an in-creased foreign interest This is resulting in site inspections and re-search into areas, such as northeastern Brazil, Argentina, Colombia and Peru, which have been dormant for a while

< Please download a Zika prevention advice sheet

Page 4 The Global Insider — Euro-Center Newsletter Volume 3, Issue 3

Euro-Center Holding • Euro-Center Cape Town’s general manager Hanne Smit recently inspected medical provid-ers in six different Moroccan cities “Com-pared to my last visit the traveller type has shifted from traditional beach holiday makers to visitors who come to see the

country They also travel inland”, she ex-plains Preferred medical providers con-firm that things are indeed looking more positive after the last years’ significant drop in tourism In particularly, Russians seem to favour Morocco’s beaches, and ERV Russia’s deputy head of the claims department Natalia Mikhailovskaya con-firms that Morocco is seen as an alterna-tive to Egypt, Tunisia and Turkey A case increase at Euro-Center Cape Town con-firms the trend, and we hope for Morocco that it continues like this • Tunisia’s tour-ism was all but eliminated after several terror attacks on tourists, and some gov-ernments still deter all but essential travel to Tunisia Nevertheless, private medical facilities in the key tourist districts are beginning to notice some improvement “The government is working hard on en-suring security”, explains Olfa Khouja, director of Clinique Hammamet “Their measures include surveillance cameras, road checks and agents in civilian clothes monitor recreational facilities, beaches and restaurants” This may indeed be working, and Euro-Center Cape Town in-

forms that it is seeing a slow but steady increase of tourist cases, especially from Polish and Czech policyholders who are increasingly frequenting the inexpensive beach resorts of Hammamet and Sousse

• Egypt’s fate appears similar to that of Morocco: General Manager Gudrun Nylen of Euro-Center Cyprus reports of many closed hotels or low occupancy across Egypt’s tourist resorts Those that do come are generally from Eastern Europe Oleksandr Vishaljuk, head of the Sales De-

partment at ERV Ukraine confirms that Sharm El-Sheikh, Dahab and Hurghada are still popular among Ukrainians and while they are advised to be vigilant the country still offers beach holidays at good prices Fortunately, Euro-Center Cyprus’ excellent provider network of cashless service and discount agreements across Egypt has been unscathed by the last years’ roller coaster, and during the lat-

Mediterranean AfricaFollowing the Arab Spring, the four North African countries

have undergone major changes, affecting tourism and expatri-ate interest This is our take on the current situation and outlook

Tanja Roug WijnenBusiness Devel. and Network Manager

Photo by Hanne Bodil Smit, Euro-Center Cape Town - Empty beaches. Agadir, Morocco

Photo by Gudrun Nylen, Euro-Center Cyprus - Seagull hotel, Hurghada, Egypt

Photo by Gudrun Nylen, Euro-Center Cyprus Camel transport, Hurghada, Egypt

est site inspection Gudrun Nylen noticed a marked optimism among Egyptians for the winter season 2016/17 • Libya is still a politically instable hot-spot with no expa-triate activity The Commonwealth Travel Advice dissuades all travel and there ap-pears to be no immediate prospect for normality Euro-Center Cape Town con-firms that they still have an operational preferred provider network in Libya that even includes flash the card services A close cooperation with Malta based Medi-Link, which also operates out of Tripoli, ensures pick up capabilities from even remote landing strips However, for now there are no or very few policyhold-ers around to offer any service • Unlike Libya, Algeria is on the mend “While case numbers are still few, we do get a lot of network queries from potential foreign in-vestors to Algeria”, says Hanne Smit The country is of course known for its oil and gas reserves, but she explains that recent queries also relate to renewable energies To boost investment, Algeria recently in-troduced new investor friendly laws and Euro-Center keeps an eye on upcoming developments Direct billing agreements and evacuation solutions are in place for corporate companies and others return-ing or investing in Algeria

The Global Insider — Euro-Center Newsletter Volume 3, Issue 3 September, 2016 Issued by: Euro Center Holding SE, Krizikova 36a, 186 00 Prague 8, Czech Republic

Phone: (+420) 221 860 330, e-mail: commercial@euro-center com, website: www euro-center comEditorial Board: Tanja Roug Wijnen, Irena Zackova, Ayce Birercin,

Maria Berkova, Sergey Nickoulitchev, Aline Estrella Euro-Center – your gateway to a comprehensive world wide provider network,

local know-how, assistance and cost containment

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Volume 3, Issue 3 The Global Insider — Euro-Center Newsletter Page 5

Euro-Center São Paulo • Marina Watanabe • Senior Assistance Coordinator • Euro-Center São Paulo hired Marina as a claims handler in January 2015, and she quickly fitted in. • Marina has a degree in

International Relations, and recently completed her post graduate degree in Business Management. Part of her studies were completed in Mexico City where she had the opportunity to immerse her-self in Latin culture and improved her Spanish language skills. Her English skills were perfected during studies in the UK. • Before Euro-Center, she worked for the Mexican/Brazilian Chamber of Commerce in Mexico, excelling as a project manager. She continued as the Chamber’s representa-

tive once back in Brazil. • After a year at Euro-Center São Paulo, she was naturally promoted to Senior Assistance Coordinator. Her key contributions to the company are her commercial and com-

munication skills. With her spontaneous personality and infectious motivation, she is further excel-lent at handling Latin America network - also in the region’s more challenging corners.

Euro-Center employee profile

Photo by Euro-Center Czech Republic Preferred provider – Poliklinika SaNaSa, Sarajevo, Bosnia-Herzegovina

Photo by Euro-Center São Paulo Preferred provider - Hospital Santa Joana, Recife, Brazil

Photo by Euro-Center Cape Town Avoid provider – Accra, Ghana

Site inspectionsDesk research and case experience bring

us far, but only real onsite inspections com-prehensively classes a provider into our network categories of partner, preferred, in network other, neutral, avoid or blacklisted Site inspections are a major expense in the Euro-Center budgets but set us apart with real hands on local knowledge EC staff have taken the images below of two preferred and one avoid provider during site inspections to Bosnia-Herzegovina, Brazil and Ghana