Financial capital

The pool of funds (equity) which the Group relies on:

• Funds reinvested in the Group
• Returns on investments
• Revenue generated from services

Key inputs

• R2.6 billion net asset value
• R90.2 million in reinvested funds

Financial capitalGroup Chief Financial Officer’s report

Outcomes

• Normalised headline earnings per share 47.63 cents
• R430 million in cash reserves
• 5.6% dividend yield
• 7% decrease in share price
• Operating profit increased by 10.5%
• Total revenue increased by 11.3%

Trade-offs

We increase our financial capital by diversifying our revenue sources, being more cost conscious and efficient. This positively impacts our investment in intellectual, manufactured and human capital.

Intellectual capital

The knowledge-based intangible assets:

• Systems and processes
• Uniquely tailored information technology systems
• Licences
• Business and industry knowledge

Key inputs

• IT systems and relevant licences
• IFM software
• Medical administration

Intellectual capitalGroup Chief Executive Officer’s report

Outcomes

• Cost savings based on IFM – R408 million

Trade-offs

We trade a portion of our financial capital for intellectual capital to drive efficiencies and increase overall value in the long term.

Manufactured capital

Our service platforms:

• Nexus IT system

Key inputs

• IT solutions
• Transactional switching
• Specialised disease management
• Back, neck and shoulder treatment
• Pharmaceutical wholesaling
• Pharmaceutical courier distribution services

Manufactured capitalOrganisation overview

Outcomes

• 3.7 million lives under administration
• 19 client medical schemes in southern Africa

Trade-offs

We require financial, intellectual and human capital to deliver our products. Our social and relationship capital sustains our ability to render services.

Human capital

Our employees’ and contractors’ skills, wellness and motivation

Key inputs

• 5 274 employees
• Skilled and motivated workforce
• Training and developing skills

Human capitalOur social impact

Outcomes

• R7 million spent on training employees
• R421 thousand bursary spend

Trade-offs

We invest financial capital to recruit and develop employees with the competencies for the functions we need.

Social and relationship capital

The quality of AfroCentric’s relationships with our material stakeholders, particularly the communities in which we operate.

Key inputs

• Managing stakeholder relations
• Social licence to operate

Social and relationship capitalStakeholdersOur social impact

Outcomes

• R3.2 million spend in enterprise development*
• R6 million spend in supplier development*
• R3 million spend in SED*

* The 2018 spend is a projection which will be verified in November 2018 for B-BBEE

Trade-offs

We commit a significant portion of our human and financial capital to enterprise and supplier development (ESD), corporate social investment (CSI) and socio-economic development (SED) in South Africa. We also have a learning academy to empower and train our employees.

Natural capital

We consume energy, water and paper to provide services.
We proactively monitor our environmental impact to reduce it over time.

Natural capital

Outcomes

• Environmental impact monitoring and management
• Optimised energy, water and paper use
• Enhanced awareness communication Group wide

Trade-offs

Although operations require electricity and water to operate, we believe that we have a relatively small environmental impact. We aim to reduce our footprint through optimal use of resources throughout our value chain.