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LIFE, HEALTH and CARE form the essence of what makes us unique.
We balance these three elements to deliver sustainable value to our stakeholders
The value we create is based on our external operating environment1 along with economic, social and environmental factors, and the nature and quality of our relationships with stakeholders2.
By analysing these spheres in the context of our business, we can identify our risks and opportunities3 which, in turn, enables us to develop those matters that are most material to our business and mitigate any negative effects, which could impact our ability to create value in the short, medium or long term.
We manage our risks strategically to ensure sustainable value creation into the future4
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1External operating environment. 2Stakeholder relationships. 3Risks and opportunities. 4Material matters. |
Through the power of efficiency, quality, sustainability and growth, we improve lives and deliver value to our stakeholders.
| 2020 R'm |
2019 R'm |
2018 R'm |
||||
| Revenue | 25 386 | 25 672 | 23 488 | |||
|---|---|---|---|---|---|---|
| Less: Purchased cost of goods and services | (14 283) | (13 292) | (11 936) | |||
| Financial value added | 11 103 | 12 380 | 11 552 | |||
| Other income1 | 101 | 1 715 | 104 | |||
| Financial wealth created | 11 204 | 14 095 | 11 656 | |||
| Employees | 6 843 | 6 493 | 5 976 | |||
| Providers of equity | 778 | 1 321 | 1 209 | |||
| Providers of funding2 | 672 | 1 018 | 819 | |||
| Governments | 726 | 1 022 | 1 095 | |||
| Maintenance and expansion of capital | 2 925 | 1 986 | 1 704 | |||
| Reinvestment in the Group3 | (740) | 2 255 | 853 | |||
| Financial wealth distributed | 11 204 | 14 095 | 11 656 | |||
| Average number of employees | 21 660 | 21 795 | 21 227 | |||
| Financial wealth created per employee (R'000) | 517 | 647 | 549 | |||
| Weighted average number of shares (million) | 1 455 | 1 456 | 1 451 | |||
| Financial wealth created per share (R) | 7.70 | 9.69 | 8.03 |
| 1 | Other income in 2019 includes the profit on disposal of Max of R1.5 billion before withholding tax. |
| 2 | The decrease from 2019 to 2020 is mainly due to a repayment of debt in Q4 FY19. The increase in 2019 is mainly due to the acquisition of the equity holding of 6.22% from the Alliance Medical management for GBP35.7 million (R640 million) in June 2018, and the acquisition of the European Scanning Centre (ESC) in December 2018 for GBP10.6 million (R195 million) offset by the settlement of debt during 2019 |
| 3 | The reinvestment in the Group includes impairment of R798 million, with R793 million related to impairment of investment in Poland. 2019 includes impairment of R164 million for 2019, with R125 million related to impairment of investment in Poland and R39 million software development costs relating to our southern Africa operations. |
Despite the challenges faced in 2020, our strategy remains sound, and we aim to diversify our offerings to support long-term growth in becoming a global, people-centred, diversified healthcare organisation.
