About our report

SCOPE, REPORTING PROCESS AND BOUNDARY

We are pleased to present our 2021 integrated annual report, which is our primary report prepared for all stakeholders. This report is produced based on Life Healthcare’s integrated thinking and reporting process that is governed by the Board of Directors (the Board). Our integrated annual 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. Further our integrated reporting process is supported by the Group’s governance framework and incorporates discussions and decisions at board and management level. The report is also informed by various external and internal factors including our external operating environment, strategy, business model, stakeholders, key risks and opportunities, material matters and the Group’s governance.

Our report covers the period 1 October 2020 to 30 September 2021 and was compiled with information that 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 30 November 2021.

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. The Group’s annual financial statements were independently assured by our external auditors, Deloitte. The summarised financial information included in this report was extracted from the Group’s audited annual financial statements. However, this report in its entirety has not been independently assured. Non-financial indicators that have been assured are denoted by .

A number of non-financial indicators were assured by Deloitte. For the selection of indicators and the independent assurance report, refer to Independent auditor’s assurance on sustainability information.

REPORTING SUITE AND FRAMEWORKS

Our reporting suite comprises the reports listed below and is guided by various reporting frameworks, standards and codes. These include the International Framework (January 2021), the Global Reporting Initiative (GRI) Standards, the International Financial Reporting Standards (IFRS), the King Code of Governance Principles for South Africa (King IV), the JSE Listing Requirements and the South African Companies Act, 71 of 2008. The Annual Financial Statements and the Sustainability (ESG) Data Report can both be found on our website at www.lifehealthcare.co.za.

 

VALUE CREATION, PRESERVATION AND EROSION

Through our business model, we strive to create and preserve value, and not to erode value. The Group’s six critical capital resources, namely financial capital, intellectual capital, manufactured capital, human capital, social and relationship capital and natural capital are deployed in a balanced manner through our business model (inputs, business activities and outputs) and culminate in outcomes for all key stakeholders. When capital resources are used, we take account of necessary capital trade-offs to ensure these resources are used in a balanced manner. To reflect how we create, preserve and erode value, this report focuses on the Group’s performance, strategy, material matters, risks and opportunities for our two geographical regions, namely:

• Southern Africa: Our operations are in South Africa, with business activities also taking place in Botswana, which represent 70.8% (2020: 72.3%) of the Group’s revenue and include both hospital and healthcare services divisions.
• International: Our growing international operation includes Alliance Medical Group Limited (AMG) across the United Kingdom (UK) and Europe. International operations represent 29.2% (2020: 27.7%) of the Group’s revenue, and include diagnostic and molecular imaging, radiopharmacy and radiotracer development.

For more information on our value creation, preservation and erosion, refer to Our business model

MATERIALITY

We report on 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 factors and influences when identifying our material matters and, once identified, we prioritise these matters according to their likelihood and potential impact. These identified material matters inform and shape our strategy and are reviewed annually.

We identified the following matters as material during 2021:

For more information on our material matters, refer Our material matters.

	COVID-19
	Business disruptions due to social unrest and shortages of critical supplies
	Labour relations and employee retention
	Healthcare funders and the cost of care
	Specialised skills shortage
	Quality of care standards
	Portfolio performance
	Government relationships
	Increased regulations
	Cyber-security and data protection