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PREFERENTIAL PROCUREMENT

As part of Adcock Ingram’s transformation journey, priority attention

was given to procuring services from qualifying enterprises. This

resulted in an 58% achievement of the target in the year ended 30

June 2016. R2.0 billion of procurement expenditure was included

as qualifying expenditure for rating purposes. 26% of qualifying

expenditure was placed with black-owned business and black

women-owned enterprises. In order to increase procurement

opportunities for Adcock Ingram’s small suppliers through

collaboration and partnership, growing knowledge of the quality of

services provided to Adcock Ingram by qualifying small enterprises

and exempt micro enterprises, has allowed the procurement

department to source from black owned recruitment agencies,

suppliers of point of sale materials, packaging designers and print

services.

SOCIO-ECONOMIC DEVELOPMENT

In line with Adcock Ingram’s commitment to be involved with the

communities in which the Company operates and to undertake

sustainable initiatives, there was a continued commitment to

support a number of worthy causes during the year.

This support was focussed largely on worthy causes which included:

• The continuing support for the Smile Foundation which

coordinated a week of surgical interventions at the Tygerberg

Hospital, and gave 43 children the opportunity to have life

changing surgery to repair facial deformities;

• Ongoing support for the Leratong Hospital in Krugersdorp, in

the refurbishment of certain wards through the South African

Medical and Education (SAME) Foundation;

• Distribution of containers of water to drought stricken areas of

the country was one of the most gratifying initiatives;

• Mercy Vision (Ships), the Zithulele Eye Care Project, as well as Azali

Healthcare, which funds medical male circumcision.

Adcock Ingram contributed a total amount of R3.5 million during

the year to improve the well-being of society. The focus of the

support given was largely on healthcare, with smaller contributions

to support orphaned and abandoned children.

Adcock Ingram’s CSI projects are an effort to build sustainable

relationships,

particularly

with

previously

disadvantaged

communities, in linewith the Company’s proud heritage andmission:

‘To contribute meaningfully to the health and well-being of the

people in the markets we serve’ and in support of the commitment

of ‘Adding value to life’.

FIVE

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THREE

ONE

FOUR

TWO

OUR PERFORMANCE

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Integrated Report 2016