ANNUAL REPORT 2010
IN THIS SECTION

Life Healthcare as an investment

The group is a conduit through which the shareholders own the assets

Market position >
One of three leading private hospital operators in attractive South African healthcare market
Market share of ± 27% of South African hospital beds
Owns Life Esidimeni, largest healthcare public/private partnership (PPP) in South Africa
Market leader in acute mental healthcare, acute rehabilitation and occupational healthcare in the private market
Extensive geographic network of healthcare facilities
Market leader for preferred provider agreements with medical funders
     
Shareholder wealth creation >
Solid track record of operational excellence
Over 100 senior Life Healthcare managers have invested in the Company
13% compound annual growth in revenue over five years from continuing operations
Normalised EBITDA margin has increased from 21.0% to 24.7% over five years

Occupancies increased to 70% over five years despite the addition of nearly1 200 beds

Earnings underpinned by high cash generation
Compound annual growth rate of 16% for normalised EBITDA over five years
     
Management depth >
Experienced management team with an average 15 years’ service
Management team has guided growth and development of the Group
Formalised succession planning and management skills development ensure the continuity of management excellence
     
Good governance >
Board structure has strong independent element
As at 30 September 2010, the board of directors is a culturally diverse group with five historically disadvantaged members of whom two are female and six white members
Compliant with JSE Listings Requirements
Working on King III compliance by 2011
     
Sustainability >
Committed to clinical excellence in world class facilities
Track record of providing high quality, cost effective healthcare in South Africa
Continued focus on transformation and BBBEE
Well entrenched corporate social investment programme
Support for government’s initiatives to build a healthier nation
Making a vital contribution to the training and development of nurses in South Africa