Our businessmodel

Financial and liquidity management are essential within the current high inflation and elevated interest rate environment. Despite these challenges, due to prudent management, the Group continued to grow revenue. Although historically there has been significant investment in IT system and infrastructure modernisation, we have made substantial advancements in our collaboration with Sanlam on the technology front. We believe this collaboration will continue to support our aim of enhanced systems stability, enable significant cost savings and serve to strengthen our resilience around our hardware infrastructure.

A significant risk affecting employee acquisition and retention is the overall skills shortage present in the sector. Increasing mental health challenges globally are also on our radar as a potential risk for our human capital. The Group provides comprehensive learning and development initiatives, an employee wellness programme and other upliftment opportunities. We also invest in growing skills throughout the sector to ensure sustainable healthcare provision in the future.

Innovation within the healthcare sector has accelerated at unprecedented levels. Businesses that cannot innovate quickly risk becoming obsolete. Collaboration to grow intellectual capital is crucial. As the Group advances its digital engagement, we continue to invest in upgrading our software systems and processes.

Our intellectual capital is enhanced through continuous learning, process improvement, and the integration of advanced technologies and knowledge systems. By focusing on developing intellectual capital, the Group aims to maintain its competitive edge and ensure sustainable growth in an increasingly digital and knowledge-driven healthcare environment.

Effective management of stakeholder relationships, including the communities where we operate, remains an integral part of our operating environment to accelerate growth.

The Group continuously invests in upgrading buildings, facilities, and physical IT infrastructure. This is essential for maintaining and improving operational efficiency and service delivery. Although initially impacting profitability, these investments enhance the quality and affordability of our services over time by increasing operational efficiencies and reducing long-term costs. The availability of modern infrastructure and well-maintained buildings and facilities is crucial for supporting the Group's strategic goals and ensuring sustainable growth in a highly competitive and rapidly evolving healthcare sector.

Although load-shedding has decreased, we still rely on diesel generators during outages, adversely impacting financial and natural capital. We also recognise that in South Africa, grid electricity has a significant environmental impact due to the reliance on coal-fired power plants, which produce high levels of greenhouse gas (GHG) emissions and air pollution. By shifting to solar energy, we aim to decrease our carbon footprint and promote cleaner energy solutions while lessening the strain on the national grid. Additionally, we are making progress on borehole installations across our operations. We remain judicious in our use of water in our water-scarce region, whether from boreholes or municipal sources, to ensure sustainable resource management.

• Revenue growth: Prudent financial and liquidity management has led to sustained revenue growth despite challenging economic conditions
• Profitability: Investment in IT systems and infrastructure is expected to improve profitability over time by enhancing operational efficiencies
• Value creation and preservation: Reinvesting funds into the Group has helped to ensure long-term sustainability for shareholders

• Infrastructure quality: Significant investments in upgrading buildings, facilities, and IT infrastructure have improved the quality and reliability of the Group's physical assets
• Service delivery: Enhanced physical infrastructure supports better service delivery, contributing to overall customer satisfaction
• Long-term sustainability: Modernised facilities and infrastructure ensure the Group can meet future demands and remain sustainable

• Innovation: Continuous investment in IT systems and processes has driven innovation, keeping the Group competitive in the healthcare sector
• Knowledge enhancement: Developing customised IT solutions and improving business processes have enhanced the Group's intellectual assets
• Operational efficiency: Improved systems and software have streamlined operations, reducing costs and improving service delivery

• Employee retention: Comprehensive learning and development programmes, along with wellness initiatives, have improved employee retention and satisfaction
• Skills development: Investing in employee skills has ensured the Group has a capable and motivated workforce, ready to meet industry challenges
• Empowered workforce: A motivated and skilled workforce is essential for delivering on AfroCentric's purpose of enhancing the quality of life through improved healthcare services