INTEGRATED REPORT 2019

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External environment – International

Macro-economic context How we are responding
Varying, but positive, GDP growth rates

Varied, but positive, GDP growth in the geographies where we operate1.

  • Western Europe: 1.2%
  • UK: 1.2%
  • Poland: 4.0%
  
  • Focus on maximising efficiencies, while ensuring the highest levels of patient care and technical excellence.
  • Continue to explore opportunities for growth.
Brexit uncertainty

Ongoing uncertainty regarding the implications of Brexit.

  
  • Continue to ensure the business remains prepared and resilient with consistent monitoring of supply chain readiness, implementing various mitigating actions in respect of specialist skills challenges and continued monitoring of foreign currencies.
Varied exchange rates

Varying exchange rates impact the cost of sales and the earnings when translated into South African rand, our reporting currency.

  
  • Manage potential impacts through a focus on efficiencies and procurement, with goods and services primarily sourced in the currency where the business operates.
High levels of competition

Increasing competition for patients and technology, particularly in the mobile market in the UK and our clinics businesses in Italy and Ireland.

  
  • Focus on differentiating offerings through quality service delivery and standards, as well as cost efficiency, and building long-term stakeholder relationships.
Skills challenges

Highly competitive employment market for skilled healthcare professionals across all our geographies.

  
  • Engage with global partners and academic institutions to develop training programmes to support new graduates.
  • Focus on enhancing our employee value proposition (EVP).
Increasing demand

Population growth, combined with an ageing population and increased disease burden, increases demand.

  
  • Continued investment in long-term, cost-effective solutions while improving the quality of care and patient experience.
Price pressures

Continued pressure on tariffs from both public and private funders.

  
  • Strong focus on efficiency and the effective use of Group resources and ongoing stakeholder engagement.

1 GDP growth rates sourced from https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/OEMDC/ADVEC/WEOWORLD/GBR/POL/WEQ/EEQ?year=2019.