Annual integrated report 2011

Our value contribution

Netcare creates value for its stakeholders through its core purpose of caring for the health of society. We are committed to being an active and resourceful partner in finding sustainable healthcare solutions as well as solving the prevailing socio-economic challenges in the countries in which we operate.

Our contribution in 2011 makes this intent clear.

Investing in healthcare infrastructure  
Invested R1.4 billion in capital expenditure.
Over R6.6 billion invested in capital expenditure over the last five years.
Opened 126-bed Netcare Waterfall City Hospital in Midrand, in conjunction with Netcare’s empowerment partners.
Creating jobs and investing in skills development and training  
More than 8 300 people trained in SA (54 800 since inception).
13.3% increase in SA permanent employees since 2007.
28 700 employees in both SA and the UK.
100 students trained in partnership with the Free State Premier.
Contribution to academic medicine through the Hamilton Naki post-graduate scholarships.
Almost doubled the number of people with disabilities we employ.
Improving the quality of our services  
1st officially accredited SA Level 1 trauma centres at Netcare Milpark and Netcare Union hospitals.
Founding member and active leader of “Best Care… Always!”, clinical improvement campaign across public and private sector in SA.
Hospitals benchmarked against USA hospitals.
Netcare hospitals to be benchmarked against the Department of Health’s Core Standards by February 2012 in preparation for NHI.
Closing the wage gap in SA  
Highest minimum wage in private hospital sector.
15.4% increase in minimum wage.
76.7% of all SA employees are members of the Netcare Medical Scheme.
Driving innovation in healthcare delivery  
  Opened the 425-bed Queen ’Mamohato Memorial Hospital, part of the Lesotho Public Private Partnership (PPP), the largest healthcare PPP in Africa.
R8.0 billion spent on procurement of which 84.0% was with B-BBEE suppliers.
67.4% of SA employees are black and 54.6% are black women.

Wealth distributed %

Creating shareholder value

Rm 2011   2010   % change
Group financial summary          
Revenue 23 221   22 474   3.3
EBITDA 4 914   4 865   1.0
Operating profit 3 701   3 708   (0.2)
Profit for the year 1 855   1 460   27.1
Headline earnings 1 504   1 226   22.7
Net debt 25 689   24 197   (6.2)
Cash generated from operations 5 572   4 934   12.9
Basic earnings per share (cents) 122.1   97.0   25.9
Headline earnings per share (cents) 117.0   96.5   21.2
Distributions per share (cents) 53.0   46.5   14.0




Headline earnings per share



Distributions per share


Recognition in 2011

Top Empowered Company
Metropolitan Oliver
Empowerment Award.
  Most Empowered Company
in the JSE’s healthcare sector:
Financial Mail Top Empowerment
Companies Survey for 2011.
  Top Women’s Award
in the Science, Biotechnology and Healthcare category.

Level 1 Gold Community Contributor Award
National Department of Social
  Best Employer in Healthcare
category, third in the Large
Company category: CRF Institutes’
Best Employers South Africa
2011/2012 publication.
  Mid-cap Annual Report winner
Chartered Secretaries Southern
Africa and the JSE.