About our report

ABOUT LIFE HEALTHCARE

Life Healthcare Group Holdings Limited (the Group, Company or Life Healthcare) is a global, people-centred, diversified healthcare organisation listed on the Johannesburg Stock Exchange (JSE). Our integrated report is our primary report prepared for all stakeholders, and includes information relating to our external operating environment, business model, stakeholders, key risks and opportunities, governance and leadership, strategy and other material matters.

SCOPE AND BOUNDARY

This integrated report covers the period 1 October 2019 to 30 September 2020, and was compiled with information that the Board of directors (the Board) and management believe is relevant and material to provide an integrated view of the Group’s performance. We have also included all relevant information and material events after year-end up to the approval of the integrated report on 9 December 2020.

To reflect how we create value, this report focuses on the performance, plans, risks and opportunities for our two geographical regions, namely:

Southern Africa: Our primary operations are in South Africa, with business activities also taking place in Botswana, which represent 67.9% of the Group’s revenue and include both hospital and healthcare services divisions.
International: Our growing international operation includes Alliance Medical Group Limited (Alliance Medical) across the United Kingdom (UK) and Europe, as well as Scanmed S.A. (Scanmed) in Poland. International operations represent 32.1% of the Group’s revenue, and include diagnostic and molecular imaging, radiopharmacy, product development and healthcare services.

For more information on what we do, refer to What we do

INTEGRATED
REPORTING
BOUNDARY
(risks, opportunities and outcomes in terms of the IIRC <IR> Framework)

FINANCIAL REPORTING
BOUNDARY
(control and significant influence in terms of IFRS)

INVESTMENTS

SUBSIDIARIES

JOINT VENTURES

PATIENTS

HEALTHCARE FUNDERS

INDUSTRY REGULATING BODIES

SHAREHOLDERS, INVESTORS AND FINANCIERS

GOVERNMENT

GOVERNMENT AS A CUSTOMER

EMPLOYEES

DOCTORS AND SPECIALISTS

SUPPLIERS

SOCIETY

OUR REPORTING SUITE AND FRAMEWORK

Our reporting suite comprises the following reports:

Integrated report

The following local and international guidelines were followed during the preparation of our integrated report:

the International Integrated Reporting Council (IIRC) International <IR> Framework (International <IR> Framework);
the reporting principles contained in the King IV Report on Corporate Governance for South Africa, 2016 (King IV^TM1);
the JSE Listings Requirements;
the Companies Act, 71 of 2008, as amended (the Companies Act); and
the International Financial Reporting Standards (IFRS).

Assurance

The Board, assisted by the Board sub-committees, oversees the integrated reporting process.

Audited consolidated Group and Company annual financial statements

Life Healthcare's financial statements were prepared in accordance with:
- IFRS;
- the Companies Act in South Africa; and
- the JSE Listings Requirements.

Assurance

Deloitte & Touche (Deloitte) assurance statement.

Notice of annual general meeting (AGM) and abridged shareholder report

The required statutory information and notice of AGM are distributed to shareholders to convene the AGM.

¹	Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.

Please visit our website for detailed information on governance and sustainability matters, as well as our latest results and announcements.

You can find our full reporting suite online at www.lifehealthcare.co.za.

MATERIALITY

We strive to only report on those material matters that could have a direct or indirect impact on our ability to create or preserve value for the Group and our stakeholders in the short, medium and long term. We consider a range of internal and external influences when identifying our material matters and, once identified, we prioritise these matters according to the likelihood and potential impact. Finally, we integrate the identified material matters into our strategy. We review our material matters annually.

For more information on our material matters, refer to Material matters

We identified the following matters as material during 2020:

COVID-19
Labour relations and employee retention
Healthcare funders
Cost of care
Specialised skills shortage
Quality of care standards
Portfolio performance
Government relationships
Increased regulations
Cyber-security and data protection

ASSURANCE

We followed a combined assurance process during the preparation of this integrated report, with the Board, its committees and management responsible for finalising the disclosures contained herein. Our integrated report evolves from our performance reports, which are compiled monthly and reviewed by management – an integral part of this report's overall assurance, in respect of the integrity of the data.

First line of defence, which comprises our operational employees, who are required to understand their roles and responsibilities and carry them out correctly and completely.

Second line of defence consisting of our oversight functions, including risk and compliance management. These functions define work practices, monitor adherence to policies, and oversee the first line of defence with regard to risk and compliance.

Third line of defence, which comprises the internal and external assurance providers and the Board. Internal and external auditors regularly review the first and second lines of defence to ensure that they are carrying out their tasks as required. The Board mandates the audit committee to review the information provided by various Board committees regarding tasks and business information. The Board plays an oversight role and is responsible for approving the information reviewed by the audit committee, among others.

The Group’s annual financial statements were independently assured by our external auditors, Deloitte. However, this report in its entirety has not been independently assured.

A number of non-financial indicators were assured by Deloitte. For the selection of indicators and the independent assurance report, refer to Independent limited assurance report to the directors of Life Healthcare Group Holdings Limited.

FORWARD-LOOKING STATEMENT

This integrated report contains forward-looking statements that, unless otherwise indicated, reflect the Group's expectations as at 9 December 2020. The actual results may differ materially from our expectations if known or unknown risks or uncertainties affect the business, or if estimates or assumptions prove inaccurate. The Group cannot guarantee that any forward-looking statement will materialise. Readers are cautioned not to place undue reliance on these forward-looking statements, and the Group disclaims any intention and assumes no obligation to update or revise any forward-looking statement.

BOARD RESPONSIBILITY

Life Healthcare's Board is ultimately responsible for the integrity and completeness of this integrated report, and is assisted by its sub-committees throughout the reporting process. The Board applied its collective mind during the preparation of this integrated report. Based on the completeness of the information collected and the assurance thereof, it concluded that it aligns with the International <IR> Framework and provides a true and material account of the Group's performance and strategic direction.

This integrated report was approved by the Board on 9 December 2020.

Mustaq Brey

Chairman

Peter Golesworthy

Chairman: audit committee

Peter Wharton-Hood

Chief Executive Officer (CEO)

Pieter van der Westhuizen

Chief Financial Officer (CFO)

FEEDBACK

At Life Healthcare, we value your feedback as we endeavour to provide accurate, transparent and balanced information to our stakeholders. We invite you to contact the Group Company Secretary,
A Parboosing, on +27 11 219 9000 or avanthip@life.co.za should you have any questions.