Unpacking the value derived from our business model for our stakeholders

Value created/capital enhanced Value eroded/capital reduced Value preservation

 

VALUE FOR OUR CLIENTS

AfroCentric is committed to exceptional client service and continuous improvement in our service offerings. We optimise the healthcare value chain by leveraging our market presence and size to reduce costs for our clients and their scheme members.

Voice of the Customer Survey achieved a positive response rate of 81.46% (2020: 81.82%)

Membership on larger schemes between 2016 and 2021 has grown by 3%

Weighted scheme solvency of 39% (2020: 36%)

Average scheme contribution increase of 3.81% (2020: 3.45%)

R2.7 billion managed care savings for medical schemes (2020: R3.2 billion)

R848 million cost savings based on fraud management software (2020: R1.5 billion)

R289 million FWA cases quantified (2020: R228 million); R134 million recovered (2020: R141 million)

Value created for us

Retaining and growing our medical scheme clients is critical to our sustainability and enhances the organisation’s profitability.

Capitals impacted

VALUE FOR OUR CLIENTS' MEMBERS

advancement through continued professional development. Enhancing the quality and ease

101 536 VirtualCareTM consultations

13 million scripts dispensed per annum (2020: 10 million)

Launched our Pharmacy Direct online shop – available to all our patients and the public

https://pdonlinewarehouse.co.za/

67 patients made use of the hospital-at-home product

Value created for us

Member satisfaction is critical to our clients and therefore top of mind for us. By ensuring member satisfaction for our clients, we therefore support the continued sustainability of our business.

Capitals impacted

VALUE CREATED FOR OUR SHAREHOLDERS AND INVESTORS AND INVESTORS

clients and their scheme members. Sustainable returns over time derived from

Dividend yield of 7.7% (2020: 9.2%)

Headline earnings per share of 57.26 cents (2020: 53.42 cents)

Operating profit increased by 15.5%

Return on equity of 14.6% (2020: 14.7)

Diversifying into other revenue streams through our various subsidiaries supports business sustainability

Pharmaceutical companies contributed 53% in revenue through organic and acquisitive growth, as well as a 27% contribution to operating profit

Net working capital – 10.8% decrease year-on-year as a result of 25.8% growth in sales and new product launches.

Value created for us

Our providers of capital enable us to diversify our revenue sources and grow our business.

Capitals impacted

VALUE FOR OUR EMPLOYEES

a purpose-driven business model. A purpose-driven work culture that fosters inclusivity and high performance. Passionate individuals who pursue innovation, excellence and career advancement through continued professional development.

11.3% employee turnover (2020: 12.8%)

82% of the workforce are black (2020: 81%)

70% of the workforce are women (2020: 70%)

57% of the workforce are black women (2020: 55%)

33% black representation at senior management level (2020: 34%)

247 online courses were undertaken by 3 816 employees (2020: 185 courses taken by 3 725 employees)

R10.7 million spent on developing our employees (2020: R4.5 million)

Value created for us

Our people are a key differentiator and enable our continued success. AfroCentric competes for skilled and experienced employees in the global and local healthcare sector. Retention of critical skills, particularly actuarial, IT and medical specialists, is imperative to our continued success.

Capitals impacted

VALUE FOR GOVERNMENT AND REGULATORS

Enhancing public-private partnership in furthering the aim of enabling access to healthcare for all.

R31 million invested in the vaccination roll out process

Value created for us

Policy and regulatory decisions directly impact the Group and our subsidiary entities. By engaging with government and regulators, we can contribute to shaping an environment that supports our mission of innovating a new integrated model of sustainable healthcare that measurably improves access to quality healthcare. Furthermore, we can develop sustainable revenue streams by seeking to support national and provincial spheres of government by delivering services that meet their mandate.

Capitals impacted

VALUE CREATED FOR INDUSTRY BODIES

Contributing our technical expertise and in-depth knowledge to pertinent industry topics.

Approximately 250 engagements with industry bodies

Value created for us

Industry bodies provide vital opportunities to interact with broader industry players concerning critical interests in the healthcare sector. In some instances, they open communication channels to government and regulators, particularly when policymakers and regulators seek industry-wide positions.

Capitals impacted