LENMED AIR 2019.pdf

Contents 00 00 00 01 ABOUT OUR ANNUAL INTEGRATED REPORT 02 REFLECTIONS FROM OUR CHAIRMAN AND CHIEF EXECUTIVE OFFICER 06 VALUE CREATION HIGHLIGHTS 07 Five-year review 08 LENMED IN CONTEXT 08 Our organisational structure and operating footp rint 10 OUR VISION, VALUES AND BRAND 10 Vision 10 Values 11 Our vision and values in action 11 Our brand promise 11 Our corporate culture 12 HIGH STANDARDS OF GOOD GOVERNANCE 12 Governance philosophy 12 Board of directors 14 Our management team 16 OUR SUSTAINABLE BUSINESS MODEL 16 Business activities 16 Inputs, outputs and outcomes 18 REFLECTIONS FROM OUR DEPUTY CHIEF EXECUTIVE OFFICER 22 OUR VALUE CREATION JOURNEY 24 OUR BUSINESS ENVIRONMENT 26 THE NEEDS AND EXPECTATIONS OF OUR STAKEHOLDERS 28 RISKS AND OPPORTUNITIES IN OUR OPERATING ENVIRONMENT 30 OUR MATERIAL MATTERS 30 How we determine our material matters 31 Our material matters 34 DELIVERING ON OUR STRATEGY 34 Our value creation strategy 36 FINANCIAL RESOURCES 38 REFLECTIONS FROM OUR CHIEF FINANCIAL OFFICER 44 HUMAN RESOURCES 48 SOCIAL AND RELATIONSHIP RESOURCES 52 INTELLECTUAL RESOURCES 54 NATURAL RESOURCES 56 CLINICAL GOVERNANCE REPORT 57 Clinical governance priorities and progress report 62 LENMED’S CORPORATE GOVERNANCE 63 King IV™ overview 69 Governance structure 70 DIRECTORS’ ATTENDANCE AT BOARD AND COMMITTEE MEETINGS 71 BOARD COMMITTEES 71 Audit and Risk Committee report 75 Risk management 76 Remuneration and Nominations Committee report 79 Implementation report 80 Social and Ethics Committee report 122 Acronyms and glossary 125 Notice of annual general meeting ibc Company information OUR VALUE CREATION POSITIONING 02 CREATING VALUE IN A SUSTAINABLE MANNER THROUGH OUR STRATEGY 18 HOW WE PERFORMED 36 ENSURING AND PROTECTING VALUE 62 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS 83 SUPPLEMENTAR Y INFORMATION 122 LENMED — a compelling investment Founded in 1984, Lenmed Investments Limited (“Lenmed” or “the Group”) links investors to the nichemarket of privatemedical care for underserved communities. Lenmed was founded on a strong sense of social responsibility for serving underprivileged communities and areas where medical services are scarce. We take a pragmatic and risk-informed approach to steady growth, focusing on a solid balance sheet and optimal performance while providing quality medical experiencesandbuildingstrongcommunityrelationships. Lenmed is the fourth largest healthcare group in an increasingly competitive Southern African market. We operate 11 hospitals in three countries across Southern Africa, with approximately 700 doctors and 3 000 employees caring for patients in over 1 700 beds every day. Lenmed’s recent highlights: + Ethekwini Hospital and Heart Centre and Shifa Private Hospital listed in the Discovery Top 20 hospitals + Commissioned Royal Hospital and Heart Centre in 2017 — only hospital to offer cardiac and radiotherapy services in the Northern Cape + Bokamoso Private Hospital is the only hospital in Botswana to offer cardiac services, vascular surgery and nuclear medicine + Ethekwini Hospital and Heart Centre is the only hospital in KwaZulu-Natal to offer Paediatric cardiac surgery and a full sub-speciality paediatric unit Lenmed invests in its people. In a highly competitive environment, we understand the importance of retaining our highly skilled doctors, specialists and nurses. We strive to attract, retain, engage and motivate these key skilled professionals. Though unlisted, Lenmed has a strong culture of ethical leadership and operates largely as though it is listed. This is displayed not only by way of its Board and sub-committee structures and adherence to various governance codes and rules, but also in the leadership style of management.