Scope, boundary and reporting cycle
This integrated annual report of Mediclinic International presents the economic, social and environmental performance, as well as the financial results of the Mediclinic Group for the financial year ended 31 March 2015, and covers all our operations in Southern Africa, Switzerland and the UAE. Cognisance should be taken of the fact that the largest component of the Group’s operations is situated in Southern Africa (with 52 hospitals), compared to our operations in Switzerland (with 16 hospitals and 3 clinics) and in the UAE (with 2 hospitals and 10 clinics). There are therefore variances in the level of detail provided in this integrated annual report and the Sustainable Development Report published on the Company’s website. Although the scale of the Group’s operations in Switzerland is relatively small compared to Southern Africa, the Swiss operations contributed 46.1% to the Group’s operating profit and is therefore considered to have a material impact on the Group’s ability to create and sustain value.
Printed copies of this integrated annual report are available on request from the Company Secretary.
Significant events during reporting period
No significant events occurred during the reporting period or after the end of the reporting period, which may have an impact on the Group’s operations.
Noteworthy developments during the year include:
- the Company raised R3.1bn in June 2014 to fund growth opportunities through an accelerated bookbuild offering in terms whereof 41 000 000 new Mediclinic ordinary shares were placed with qualifying institutional investors, increasing the total number of issued shares of the Company to 867 957 325;
- Hirslanden acquired a 100% interest in the operating business of Hirslanden Clinique La Colline in Geneva in June 2014, and Hirslanden Klinik Meggen in August 2014;
- Mediclinic listed on the Namibian Stock Exchange, as a secondary listing, in December 2014; and
- the elective early refinancing of the Group’s Swiss debt was concluded successfully in March 2015, which simplified the existing structure, reduced financing costs going forward and diversified the funding base and maturity dates.
The contents included in the integrated annual report are deemed to be useful and relevant to our stakeholders, with due regard to our stakeholders’ expectations through continuous engagement, or that the Board believes may influence the perception or decision-making of our stakeholders. The information provided aims to provide our stakeholders with a good understanding of the financial, social, environmental and economic impacts of the Group to enable them to evaluate the ability of Mediclinic to create and sustain value for our stakeholders.
This integrated annual report was prepared in accordance with the International Financial Reporting Standards, the Listings Requirements of the JSE, as well as the Companies Act, 71 of 2008, as amended, where relevant. The Company has also considered and applied many of the recommendations contained in the International Integrated Reporting Framework issued by the International Integrated Reporting Committee in December 2013, as endorsed by the Integrated Reporting Committee of South Africa (“IRCSA”), as well as the guide on preparing an integrated report issued by the IRCSA in November 2014. This report aims to provide a succinct integrated annual report in line with the integrated reporting principles. The Company’s reporting on sustainable development was done in accordance with the fourth revision guidelines of the Global Reporting Initiative (“GRI G4”). The Company has applied the majority of the principles contained in the King Report on Governance for South Africa 2009 (“King III”). All the King III principles which the Company did not apply are explained, where applicable, in the integrated annual report, also stating for what part of the year any non-compliance had occurred.
An index on the application of the King III principles is published on the Company’s website at www.mediclinic.com. The Sustainable Development Report and the detailed annual financial statements in respect of the year under review are available on the Company’s website at www.mediclinic.com.
External audit and assurance
The Group’s consolidated annual financial statements, as well as the summarised consolidated annual financial statements, were audited by the Group’s independent external auditors, PricewaterhouseCoopers Inc., in accordance with International Standards of Auditing. The report of the external auditors in respect of the summarised consolidated annual financial statements is included on page 135 of this integrated annual report.
Various other voluntary external accreditation, certification and assurance initiatives are followed in the Group, complementing the Group’s combined assurance model, as covered throughout the integrated annual report. We believe that this adds to the transparency and reliability of information reported to our stakeholders. Please refer to Figure 4 of the Sustainable Development Report for further details.