About this report

Adcock Ingram regards this report, as a valuable opportunity to engage with its stakeholders and to respond to issues raised by them. The matters reported on in the Integrated Report are considered by leadership throughout the year as being vital to the sustainability of the Group and include all material aspects up to the date of issue of this report.

A full set of annual financial statements is included with the integrated report.

Adcock Ingram has continued the journey towards providing a more comprehensive picture of the Group in one document, working towards producing a more integrated report.

REPORTING PRINCIPLES

Adcock Ingram is a public company incorporated in South Africa in accordance with the provisions of the Companies Act 71 of 2008 (Companies Act).

Adcock Ingram has applied the principles of King IV unless otherwise stated, the Companies Act, the JSE Limited Listings Requirements and other applicable legislative requirements. The Group subscribes to high ethical standards and principles of corporate governance. For more details, and an overview of the Group governance and structure, please see the corporate governance section.

In addition to the above, the Group adheres to International Financial Reporting Standards (IFRS) in compiling its annual financial statements.

SCOPE AND BOUNDARY

Adcock Ingram's integrated report covers the financial year 1 July 2017 to 30 June 2018.

The report is released at least 15 business days prior to its Annual General Meeting to be held on 22 November 2018. Comparatives are for the year 1 July 2016 to 30 June 2017.

The report provides a general narrative on the performance of the Group which includes the holding company, and its subsidiaries and joint ventures across all territories. The business in South Africa has a material impact on the overall sustainability of the Group. The Group's presence in Kenya, Zimbabwe and India, individually and collectively, constitutes a small percentage of the Group's operations and are for that reason excluded from the operational review. Data is given, where relevant, about these entities. Comparatives are included where available.

The B-BBEE assessment, as well as the employment equity statistics, exclude all non-South African companies and operations.

ASSURANCE

In line with its responsibility, the Board ensures the integrity of the integrated report. The Board has accordingly applied its mind to the integrated report and, in its opinion, the report presents fairly the integrated performance of the Group.

ANNUAL FINANCIAL STATEMENTS 2018

The annual financial statements for the year ended 30 June 2018 were approved by the Board on 28 August 2018.

An independent audit of the Group's annual financial statements was performed by Ernst & Young Inc.

B-BBEE SCORECARD

The Group's B-BBEE status has been verified by Empowerlogic, an independent verification agency, for the 2017 financial year. Through the external verification process conducted by the agency, the Group has been assessed as a Level 3 contributor in terms of the revised codes of the B-BBEE Act. This rating is valid until 21 November 2018.