|
IFRS 8 requires operating segments to be identified on the basis of internal reports about the components of the Group
that are regularly reviewed by the chief operating decision maker (CODM) in order to allocate resources to the segments
and to assess their performance.
The Group’s segments are aligned to those business units that are evaluated regularly by the 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) and healthcare services (Scanmed) across Europe and
the United Kingdom.
Growth initiatives comprise the new outpatient business model, developing the imaging services opportunity, investing
in data analytics and clinical quality products within South Africa and product development internationally.
Corporate 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 type of customers and operating in a similar regulatory environment.
Inter-segment revenue of R5 million (2019: R5 million) is eliminated and relates to revenue between Life Employee
Health Solutions and the southern Africa business.
Refer to note 2 for a split of the major revenue streams.
| |
2020
Reported
R’m |
|
Impact of
IFRS 16
R’m |
|
2020
Pre-IFRS 16
Pro forma
R’m |
|
2019
R’m |
|
|
|
|
|
|
|
|
|
|
| Revenue¹ |
|
|
|
|
|
|
|
|
| Southern Africa |
|
|
|
|
|
|
|
|
| Hospitals and complementary services |
15 899 |
|
– |
|
15 899 |
|
17 213 |
|
| Healthcare services |
1 346 |
|
– |
|
1 346 |
|
1 259 |
|
| International |
|
|
|
|
|
|
|
|
| Diagnostic services |
6 286 |
|
– |
|
6 286 |
|
5 582 |
|
| Healthcare services |
1 535 |
|
– |
|
1 535 |
|
1 349 |
|
| Growth initiatives |
320 |
|
– |
|
320 |
|
269 |
|
| |
25 386 |
|
– |
|
25 386 |
|
25 672 |
|
| 1 |
Revenue of approximately 31% (2019: 33%) is derived from two (2019: two) external customers. The revenue is attributed to the southern Africa
segment. |
| |
|
2020
Reported3
R’m |
|
Impact of
IFRS 16
R’m |
|
2020
Pre-IFRS 163
Pro forma
R’m |
|
2019
R’m |
|
|
|
|
|
|
|
|
|
|
|
| Normalised EBITDA1, 4 |
|
|
|
|
|
|
|
|
| Southern Africa |
|
|
|
|
|
|
|
|
| |
Hospitals and complementary services |
2 583 |
|
(219) |
|
2 364 |
|
3 933 |
|
| |
Healthcare services |
135 |
|
(1) |
|
134 |
|
148 |
|
| International |
|
|
|
|
|
|
|
|
| |
Diagnostic services |
1 311 |
|
(127) |
|
1 184 |
|
1 253 |
|
| |
Healthcare services |
191 |
|
(51) |
|
140 |
|
97 |
|
| Growth initiatives |
(60) |
|
(4) |
|
(64) |
|
(25) |
|
| Corporate |
|
|
|
|
|
|
|
|
| |
Recoveries |
1 205 |
|
154 |
|
1 359 |
|
1 292 |
|
| |
Corporate costs |
(1 019) |
|
– |
|
(1 019) |
|
(971) |
|
| |
|
4 346 |
|
(248) |
|
4 098 |
|
5 727 |
|
| Depreciation |
|
|
|
|
|
|
|
|
| Southern Africa |
|
|
|
|
|
|
|
|
| |
Hospitals and complementary services |
(636) |
|
33 |
|
(603) |
|
(576) |
|
| |
Healthcare services |
(24) |
|
5 |
|
(19) |
|
(18) |
|
| International |
|
|
|
|
|
|
|
|
| |
Diagnostic services |
(732) |
|
111 |
|
(621) |
|
(521) |
|
| |
Healthcare services |
(118) |
|
46 |
|
(72) |
|
(62) |
|
| Growth initiatives |
(17) |
|
3 |
|
(14) |
|
(10) |
|
| Corporate |
(67) |
|
10 |
|
(57) |
|
(49) |
|
| |
|
(1 594) |
|
208 |
|
(1 386) |
|
(1 236) |
|
| EBITA2, 4 |
|
|
|
|
|
|
|
|
| Southern Africa |
|
|
|
|
|
|
|
|
| |
Hospitals and complementary services |
1 947 |
|
(186) |
|
1 761 |
|
3 357 |
|
| |
Healthcare services |
111 |
|
4 |
|
115 |
|
130 |
|
| International |
|
|
|
|
|
|
|
|
| |
Diagnostic services |
579 |
|
(16) |
|
563 |
|
732 |
|
| |
Healthcare services |
73 |
|
(5) |
|
68 |
|
35 |
|
| Growth initiatives |
(77) |
|
(1) |
|
(78) |
|
(35) |
|
| Corporate |
119 |
|
164 |
|
283 |
|
272 |
|
| |
|
2 752 |
|
(40) |
|
2 712 |
|
4 491 |
|
| Amortisation of intangible assets |
|
|
|
|
|
|
|
|
| Southern Africa |
|
|
|
|
|
|
|
|
| |
Hospitals and complementary services |
(64) |
|
– |
|
(64) |
|
(110) |
|
| International |
|
|
|
|
|
|
|
|
| |
Diagnostic services |
(466) |
|
– |
|
(466) |
|
(411) |
|
| |
Healthcare services |
(14) |
|
– |
|
(14) |
|
(17) |
|
| Growth initiatives |
(20) |
|
– |
|
(20) |
|
(18) |
|
| Corporate |
(40) |
|
– |
|
(40) |
|
(30) |
|
| |
|
(604) |
|
– |
|
(604) |
|
(586) |
|
| 1 |
Normalised EBITDA is defined as operating profit before depreciation on property, plant and equipment, amortisation of intangible assets and
non-trading-related costs or income. |
| 2 |
EBITA is defined as normalised EBITDA less depreciation. |
| 3 |
Difference between reported and pre-IFRS 16 totals relate to impact of IFRS 16, which is a once-off adjustment in FY2020. |
| 4 |
Non-IFRS measure. |
| |
2020
Reported1
R’m |
|
Impact of
IFRS 16
R’m |
|
2020
Pre-IFRS 161
Pro forma
R’m |
|
2019
R’m |
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before items detailed below² |
|
|
|
|
|
|
|
|
| Southern Africa |
|
|
|
|
|
|
|
|
| |
Hospitals and complementary services |
1 883 |
|
(186) |
|
1 697 |
|
3 247 |
|
| |
Healthcare services |
111 |
|
4 |
|
115 |
|
130 |
|
| International |
|
|
|
|
|
|
|
|
| |
Diagnostic services |
113 |
|
(16) |
|
97 |
|
321 |
|
| |
Healthcare services |
59 |
|
(5) |
|
54 |
|
18 |
|
| Growth initiatives |
(97) |
|
(1) |
|
(98) |
|
(53) |
|
| Corporate |
79 |
|
164 |
|
243 |
|
242 |
|
| |
|
2 148 |
|
(40) |
|
2 108 |
|
3 905 |
|
| |
Retirement benefit asset and post-employment medical aid income |
32 |
|
– |
|
32 |
|
39 |
|
| Operating profit |
2 180 |
|
(40) |
|
2 140 |
|
3 944 |
|
| |
Fair value adjustments to contingent consideration |
(37) |
|
– |
|
(37) |
|
2 |
|
| |
Fair value loss on derivative financial instruments |
(5) |
|
– |
|
(5) |
|
(438) |
|
| |
Gain on derecognition of lease asset and liability |
75 |
|
– |
|
75 |
|
– |
|
| |
Impairment of assets and investments (refer note 11) |
(798) |
|
– |
|
(798) |
|
(164) |
|
| |
Profit on disposal of investment in joint venture |
– |
|
– |
|
– |
|
1 501 |
|
| |
Profit on disposal of investment in subsidiary |
– |
|
– |
|
– |
|
11 |
|
| |
Loss on disposal of property, plant and equipment |
(6) |
|
– |
|
(6) |
|
– |
|
| |
Transaction costs relating to acquisitions and disposals |
(17) |
|
– |
|
(17) |
|
(148) |
|
| |
Other |
– |
|
– |
|
– |
|
(22) |
|
| |
Finance income |
93 |
|
– |
|
93 |
|
60 |
|
| |
Finance cost |
(918) |
|
65 |
|
(853) |
|
(1 058) |
|
| |
Share of associates’ and joint ventures’ net profit after tax |
14 |
|
– |
|
14 |
|
18 |
|
| Profit before tax |
581 |
|
25 |
|
606 |
|
3 706 |
|
| 1 |
Difference between reported and pre-IFRS 16 totals relate to impact of IFRS 16, which is a once-off adjustment in FY2020. |
| 2 |
Operating profit before items detailed includes the segment’s share of shared services and rental costs. These costs are all at market-related rates. |
| |
2020
Reported2
R’m |
|
Impact of
IFRS 16
R’m |
|
2020
Pre-IFRS 162
Pro forma
R’m |
|
2019
R’m |
|
|
|
|
|
|
|
|
|
|
| Total assets before items detailed below |
14 659 |
|
(488) |
|
14 171 |
|
13 550 |
|
| Southern Africa International |
26 332 |
|
(976) |
|
25 356 |
|
22 342 |
|
| |
40 991 |
|
(1 464) |
|
39 527 |
|
35 892 |
|
| Employee benefit assets |
379 |
|
– |
|
379 |
|
448 |
|
| Deferred tax assets |
1 162 |
|
– |
|
1 162 |
|
1 102 |
|
| Income tax receivable |
173 |
|
– |
|
173 |
|
124 |
|
| Total assets per the balance sheet |
42 705 |
|
(1 464) |
|
41 241 |
|
37 566 |
|
| Net debt1 3 |
|
|
|
|
|
|
|
|
| Southern Africa |
5 366 |
|
(558) |
|
4 808 |
|
4 481 |
|
| International |
8 750 |
|
(1 011) |
|
7 739 |
|
6 837 |
|
| |
14 116 |
|
(1 569) |
|
12 547 |
|
11 318 |
|
| Cash and cash equivalents (net of bank overdrafts) |
|
|
|
|
|
|
|
|
| Southern Africa |
(1 463) |
|
– |
|
(1 463) |
|
(141) |
|
| International |
1 561 |
|
– |
|
1 561 |
|
818 |
|
| |
98 |
|
– |
|
98 |
|
677 |
|
| 1 |
Net debt is a key measure for the Group, which comprises all interest-bearing borrowings, overdraft balances and cash on hand. |
| 2 |
Difference between reported and pre-IFRS 16 totals relate to the impact of IFRS 16, which is a once-off adjustment. |
| 3 |
Non-IFRS measure. |
Pro forma information
The adoption of IFRS 16 from 1 October 2019 complicates performance comparison between the results for the
year and the prior financial year. To provide a more meaningful assessment of the Group’s performance, pro forma
information has been presented for the year ended 30 September 2020. The pro forma financial information has been
prepared for illustrative purposes and represents the impact on segmental information for FY2020 as if IFRS 16 had
not been applied at 1 October 2019. This is a once-off adjustment in FY2020.
The tables on this note show the impact of IFRS 16 on the numbers disclosed on the segmental statement
of profit or loss, total assets and net debt as at 30 September 2020. IFRS 16 balances have been removed from the
reported figures in order to determine the pro forma figures to enable a like-for-like comparison to FY2019 where
IFRS 16 had not been applied.
|