Seven-year performance history

Group Statement of comprehensive income

	CAGR since 2012 %	2019 R'm	2018 R'm	2017 R'm	2016 R'm	2015 R'm	2014 R'm	2013 R'm
Revenue	13.8	25 672	23 488	20 797	16 404	14 647	13 046	11 834
Normalised EBITDA¹	9.4	5 727	5 535	5 001	4 314	4 048	3 611	3 337
Operating profit	5.4	3 944	3 848	3 620	3 660	3 496	3 150	2 878
Net finance cost	30.5	(998)	(962)	(1 229)	(502)	(404)	(215)	(202)
Share of associate' net profit after tax	(20.3)	18	(105)	(15)	8	14	39	70
Profit before tax	5.0	3 706	2 837	1 934	2 864	3 112	3 973	2 764
Profit for the year	6.2	2 871	1 914	1 119	1 970	2 228	3 098	2 004
Ordinary equity holders of the parent	7.0	2 569	1 575	814	1 616	1 866	2 774	1 711
Non-controlling interest	0.5	302	339	305	354	362	324	293
Normalised EBITDA¹	9.4	5 727	5 535	5 001	4 314	4 048	3 611	3 337
Operating profit	5.4	3 944	3 848	3 620	3 660	3 496	3 150	2 878
Profit on disposal of property, plant and equipment		–	–	–	–	–	–	(4)
Depreciation on property, plant and equipment		1 236	1 133	971	530	445	355	354
Amortisation on intangible assets		586	537	439	147	127	122	116
Severance payments		–	51	–	–	–	–	–
Retirement benefit asset and post-employment medical aid income		(39)	(34)	(29)	(23)	(20)	(16)	(7)

¹	Normalised EBITDA – operating profit before depreciation on property, plant and equipment, amortisation of intangible assets and non-trading related costs or income.

Group statement of financial position

	2019 R'm	2018 R'm	2017 R'm	2016 R'm	2015 R'm	2014 R'm	2013 R'm
ASSETS
Non-current assets
Property, plant and equipment	12 929	12 243	11 131	7 752	7 101	5 901	4 517
Intangible assets	16 969	17 084	16 281	3 196	2 964	2 318	2 084
Investment in associates and joint ventures	53	35	2 976	2 548	2 311	828	1 178
Employee benefit assets	448	401	399	433	394	376	337
Other non-current assets	1 189	795	672	466	382	263	220
Total non-current assets	31 588	30 558	31 459	14 395	13 152	9 686	8 336
Current assets
Cash and cash equivalents	1 544	1 494	1 176	604	812	422	297
Trade and other receivables	3 923	3 761	3 602	2 133	1 640	1 330	1 098
Inventories	379	360	357	318	271	240	214
Other current assets	132	128	45	47	48	121	11
Asset classified as held for sale	–	2 841	–	–	–	–	–
Total current assets	5 978	8 584	5 180	3 102	2 771	2 113	1 620
Total assets	37 566	39 142	36 639	17 497	15 923	11 799	9 956
EQUITY AND LIABILITIES
Capital and reserves	16 188	14 916	14 380	5 486	5 168	4 792	4 525
Non-controlling interest	1 303	1 286	1 171	1 312	1 280	1 108	1 081
Total shareholders' equity	17 491	16 202	15 551	6 798	6 448	5 900	5 606
Non-current liabilities
Interest-bearing borrowings	9 399	12 870	7 786	5 469	5 263	2 344	1 657
Derivative financial instruments	–	6	749	–	–	9	–
Deferred tax liabilities	1 371	1 226	1 203	547	520	438	388
Other non-current liabilities	862	662	253	95	69	76	66
Total non-current liabilities	11 632	14 764	9 991	6 111	5 852	2 867	2 111
Current liabilities
Bank overdraft	867	488	450	1 030	557	155	233
Trade and other payables	4 799	4 409	4 174	2 217	2 125	1 866	1 501
Interest-bearing borrowings	2 596	3 086	6 301	1 312	924	1 007	452
Other current liabilities	181	193	172	29	17	4	53
Total current liabilities	8 443	8 176	11 097	4 588	3 623	3 032	2 239
Total equity and liabilities	37 566	39 142	36 639	17 497	15 923	11 799	9 956

Group statement of cash flows

	2019 R'm	2018 R'm	2017 R'm	2016 R'm	2015 R'm	2014 R'm	2013 R'm
Cash operating profit	5 886	5 707	5 302	4 556	4 213	3 785	3 514
Changes in working capital	41	(204)	(639)	(520)	(356)	(253)	(92)
Cash generated from operations	5 927	5 503	4 663	4 036	3 857	3 532	3 422
Transaction costs paid	(147)	(38)	(210)	(12)	(15)	(16)	–
Interest received	60	40	162	12	12	22	14
Tax paid	(1 185)	(1 065)	(891)	(981)	(903)	(980)	(804)
Net cash from operating activities	4 655	4 440	3 724	3 055	2 951	2 558	2 632
Net cash utilised in investing activities – investments to expand	(2 329)	(3 375)	(11 957)	(2 025)	(3 198)	(1 457)	(828)
Net cash generated from investing activities – disposals	4 395	61	73	15	–	1 369	5
Net cash (utilised)/generated from investing activities – other	(295)	(50)	(1)	14	–	13	42
Net cash (utilised in)/generated from financing activities	(6 765)	(826)	9 298	(1 677)	222	(2 288)	(2 031)
Net increase/(decrease) in cash and cash equivalents	(339)	250	1 137	(618)	(25)	195	(180)
Cash and cash equivalents – beginning of the year	1 006	726	(426)	255	267	64	244
Effect of foreign exchange rate movements	10	30	15	(63)	13	8	–
Cash and cash equivalents – end of the year	677	1 006	726	(426)	255	267	64

Business performance and metrics

	2019	2018	2017	2016	2015	2014	2013
Number of registered beds²	9 136	9 055	8 983	8 768	8 647	8 418	8 279
Paid patient days³	2 269 756	2 251 600	2 226 337	2 265 653	2 177 833	2 115 254	2 074 551
Occupancy (%)^3,4	69.7	69.7	70.0	72.5	71.9	71.9	71.7
Length of stay³	3.76	3.72	3.71	3.68	3.63	3.57	3.50
Number of scans	1 731 867	1 593 417	1 455 499	n/a	n/a	n/a	n/a
Number of machines:
MRI	155	150	137	n/a	n/a	n/a	n/a
CT	51	49	41	n/a	n/a	n/a	n/a
PET-CT	48	51	46	n/a	n/a	n/a	n/a
Cyclotrons	9	9	9	n/a	n/a	n/a	n/a
Financial ratios
Normalised EBITDA margin (%)	22.3	23.6	24.0	26.3	27.6	27.7	28.2
Tax rate excluding secondary tax on companies (%)	22.5	32.5	42.1	31.2	28.3	22.0	27.5
Effective tax rate (%)	22.5	32.5	42.1	31.2	28.3	22.0	27.5
Debtors' days²	42	45	49	37	31	31	31
Stock cover (days)²	26.1	24.8	24.5	25.6	24.6	24.1	24.3
Quick ratio (:1)	0.84	1.13	1.08	0.95	1.03	1.04	0.91
Current ratio (:1)	0.90	1.06	1.01	0.85	0.93	0.92	0.79
Gearing net of cash (%)	38.4	46.5	45.1	53.1	46.9	33.3	26.5
Total debt (R'm)	11 995	15 956	14 087	6 781	6 187	3 351	2 109
Net debt (R'm)	11 318	14 950	13 361	7 207	5 932	3 084	2 045
Interest bearing debt (R'm)	10 568	14 452	12 447	5 830	5 207	2 490	1 515
Debt related to finance leases raised in terms of IAS 17	1 427	1 504	1 640	951	980	861	594
Net debt: normalised EBITDA	1.96	2.73	2.55	1.67	1.49	0.84	0.63
Interest cover	5.6	5.7	4.2	8.2	9.7	21.0	13.4
Return on Net Assets (RONA) (%)	23.6	16.4	10.4	25.9	32.3	55.0	46.0
Earnings per share (cents)	176.4	108.6	62.2	144.1	167.3	248.7	153.3
Diluted earnings per share (cents)	175.8	108.1	62.0	143.7	166.7	248.1	153.1
Headline earnings per share (cents)	88.7	108.8	77.4	179.1	167.3	165.3	153.3
Diluted headline earnings per share (cents)	88.4	108.3	77.2	178.5	166.7	164.9	153.1
Normalised earnings per share from continued operations (cents)	116.4	110.2	93.9	169.4	165.0	156.7	140.1
Normalised earnings per share from continued operations excluding amortisation (cents)	148.1	139.3	120.6	179.0	173.2	164.6	147.5
Weighted average number of shares in issue ('m)	1 456	1 451	1 310	1 121	1 115	1 115	1 116
Weighted average number of shares for diluted earnings per share ('m)	1 464	1 457	1 314	1 125	1 119	1 118	1 117
Total number of shares in issue ('m)	1 467	1 467	1 449	1 058	1 042	1 042	1 042
Distributions per share (cents)	93.0	88.0	80.0	165.0	154.0	141.0	126.0
Net asset value per share (cents)	1 103.2	1 016.8	992.4	518.5	495.9	459.8	434.2
Normalised earnings	1 695	1 598	1 230	1 899	1 840	1 747	1 563
Profit attributable to ordinary equity holders	2 569	1 575	814	1 616	1 866	2 774	1 711
Adjustments (net of tax):
Businesses disposed/closed	–	–	–	–	–	(54)	(120)
Loss/(gain) on remeasuring of fair value of equity interest before business combination	–	–	(4)	23	–	–	–
Gain on bargain purchase	–	–	–	–	–	(1)	–
Loss on derecognition of finance lease asset	–	–	–	–	–	–	3
Additional payment on previous disposed business	–	–	–	–	–	–	–
Profit on disposal of businesses	(11)	–	–	–	–	(1)	–
Profit on disposal of investment in associate	(1 407)	–	–	–	–	(929)	–
Profit on disposal of property, plant and equipment	–	(30)	37	(1)	–	–	(3)
Impairments	140	34	167	370	–	–	–
Gain on derecognition of lease assets and liabilities	–	(71)	–	–	–	–	(16)
Retirement funds	(28)	(24)	(21)	(16)	(15)	(11)	(5)
Retirement fund (included in employee benefit expenses)	–	–	–	(3)	(4)	(7)	(7)
Transaction costs	148	38	267	12	15	16	–
Fair value loss/(gain) on foreign exchange hedge	292	(17)	(7)	–	(1)	(40)	–
Contingent consideration released	42	18	(43)	(109)	(21)	–	–
Other	(50)	75	20	7	–	–	–

²	Life St Vincent's and Life Carstenview opened during October 2016 and January 2017 respectively. Life Hilton Private Hospital opened in September 2015 and Genesis Maternity Clinic was acquired in March 2015. In March 2014 Life Sandton Surgical Centre closed. Life St Josephs, Life Piet Retief Hospital and Life Poortview opened in November 2011, December 2011 and May 2012 respectively. Life Grey Monument management agreement concluded during October 2011 and Life Birchmed was disposed of in March 2012
³	Metrics for southern African operations.
⁴	Occupancy is measured based on the weighted number of available beds during the period and takes acquisitions and expansions during the year on a proportionate basis into account.
⁵	The initial investment in Max Healthcare in 2012 was funded through the issue of preference shares to the value of R820 million. In 2015 preference shares to the value of R2 050 million were issued to fund the additional investment in Max Healthcare, to equalise our shareholding, and for further acquisitions within the Scanmed Group. The acquisition of Alliance Medical in 2017 was funded by way of a bridge facility of R14 601 million, during the 2017 financial year R8 770 million was repaid via the funds raised through the rights offer.
⁶	IAS 17 requires lessees at the commencement of the lease term, to recognise finance leases as assets and liabilities in the statement of financial position, at amounts equal to the fair value of the leased property.

MARKET INDICATORS

	2019	2018	2017	2016	2015	2014	2013
Market price – high (R) per share	28.89	30.52	39.02	40.48	46.67	47.81	38.55
Market price – low (R) per share	21.12	23.00	23.05	29.53	34.32	34.66	29.76
Market price – year-end (R) per share	22.68	24.56	23.70	37.87	35.00	44.54	35.74
Market capitalisation – year-end (R'm)	33 279	36 030	34 341	40 066	36 477	46 420	37 249
Number of shares traded ('m)	1 055	1 241	1 326	1 047	870	724	789
Value of shares traded (R'm)	26 288	32 510	39 142	38 433	34 755	29 422	27 025
Price-earnings ratio	27.66	22.62	38.10	26.27	20.92	17.91	21.07