Segmental information for the six months ended 31 March 2021
The Group’s segments are aligned to those business units that are evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and in assessing performance.
In southern Africa, the hospitals and complementary services segment comprises all the acute hospitals and complementary services which include mental health, acute rehabilitation, renal dialysis and oncology. The healthcare services segment comprises Life Esidimeni and Life Employee Health Solutions.
International comprises diagnostic services (Alliance Medical Group (AMG)) across Europe and the United Kingdom (UK). The international healthcare services (Scanmed) segment was sold effective from 26 March 2021. The segment information that follows does not include any amounts for Scanmed, which is treated as a discontinued operation. Information about this discontinued segment is provided in note 1.
Growth initiatives include the new outpatient business model, developing the imaging opportunity, and investing in data analytics and clinical quality products within South Africa and product development internationally.
The corporate segment is a non-operating segment.
The operating businesses have been aggregated into different segments based on the similar nature of products and services, similar economic characteristics, similar types of customers and operating in a similar regulatory environment.
Inter-segment revenue of R3 million (2020: R3 million) is eliminated and relates to revenue between Life Employee Health Solutions and the southern Africa business.
| 2021 R’m |
2020 R’m |
||
| Revenue1 | |||
| Southern Africa | |||
| Hospitals and complementary services | 8 351 | 8 745 | |
| Healthcare services | 736 | 657 | |
| International | |||
| Diagnostic services | 3 747 | 2 945 | |
| Growth initiatives | 170 | 157 | |
| 13 004 | 12 504 | ||
| 1 | Revenue of approximately 33% (2020: 32%) is derived from two (2020: two) external customers. The revenue is attributable to the southern Africa segment. |
| 2021 R’m |
2020 R’m |
||
| Normalised EBITDA1 | |||
| Southern Africa | |||
| Hospitals and complementary services | 1 260 | 2 010 | |
| Healthcare services | 122 | 71 | |
| International | |||
| Diagnostic services | 930 | 625 | |
| Growth initiatives | (22) | (39) | |
| Corporate | |||
| Recoveries | 637 | 623 | |
| Corporate costs | (509) | (468) | |
| 2 418 | 2 822 | ||
| Depreciation | |||
| Southern Africa | |||
| Hospitals and complementary services | (332) | (317) | |
| Healthcare services | (11) | (10) | |
| International | |||
| Diagnostic services | (405) | (344) | |
| Growth initiatives | (8) | (8) | |
| Corporate | (47) | (35) | |
| (803) | (714) | ||
| EBITA2 | |||
| Southern Africa | |||
| Hospitals and complementary services | 928 | 1 693 | |
| Healthcare services | 111 | 61 | |
| International | |||
| Diagnostic services | 525 | 281 | |
| Growth initiatives | (30) | (47) | |
| Corporate | 81 | 120 | |
| 1 615 | 2 108 | ||
| 1 | Life Healthcare defines normalised EBITDA as operating profit before depreciation on property, plant and equipment, amortisation of intangible assets and non-trading-related costs or income. Normalised EBITDA of the discontinued operation was excluded. Refer to note 1. |
| 2 | EBITA is defined as normalised EBITDA less depreciation. |
The presentation of normalised EBITDA and EBITA is not an IFRS requirement, nor a JSE Listings Requirement and is a measurement used by the CODM. Investors should not consider normalised EBITDA and EBITA in isolation or as an alternative to operating profit, profit after tax or any other measure of financial performance presented. Normalised EBITDA and EBITA as disclosed above may not be comparable to other similarly titled measures of performance of other companies.
| 2021 R’m |
2020 R’m |
||
| Amortisation of intangible assets | |||
| Southern Africa | |||
| Hospitals and complementary services | (10) | (55) | |
| International | |||
| Diagnostic services | (226) | (220) | |
| Growth initiatives | (11) | (9) | |
| Corporate | (19) | (18) | |
| (266) | (302) | ||
| Operating profit before items detailed below | |||
| Southern Africa | |||
| Hospitals and complementary services | 918 | 1 638 | |
| Healthcare services | 111 | 61 | |
| International | |||
| Diagnostic services | 299 | 61 | |
| Growth initiatives | (41) | (56) | |
| Corporate | 62 | 102 | |
| 1 349 | 1 806 | ||
| Fair value gain/(loss) on derivative financial instruments | 38 | (10) | |
| Gain on derecognition of lease asset and liability | – | 75 | |
| Impairment of investment | (9) | – | |
| Loss on disposal of property, plant and equipment | (5) | (2) | |
| Transaction costs | – | (5) | |
| Finance income | 23 | 8 | |
| Finance cost | (357) | (435) | |
| Share of associates’ and joint ventures’ net profit after tax | 17 | 10 | |
| Profit before tax | 1 056 | 1 447 | |
Operating profit before items detailed includes the segment’s share of shared services and rental costs. These costs are all at market-related rates.
| 31 March 2021 R’m |
30 September 2020 R’m |
|
| Total assets before items below | ||
| Southern Africa | 15 275 | 14 659 |
| International | 22 014 | 24 265 |
| Discontinued operation | – | 2 067 |
| 37 289 | 40 991 | |
| Employee benefit assets | 393 | 379 |
| Deferred tax assets | 863 | 1 162 |
| Derivative financial assets | 15 | – |
| Income tax receivable | – | 173 |
| Total assets per the balance sheet | 38 560 | 42 705 |
| Net debt | ||
| Southern Africa | 4 090 | 5 366 |
| International | 7 147 | 7 975 |
| Discontinued operation | – | 775 |
| 11 237 | 14 116 | |
| Cash and cash equivalents (net) | ||
| Southern Africa | (471) | (1 463) |
| International | 983 | 1 398 |
| Discontinued operation | – | 163 |
| 512 | 98 |
Net debt is a key measure for the Group, which comprises all interest-bearing borrowings, overdraft balances and cash on hand. Net debt is not an IFRS requirement, nor a JSE Listings Requirement.