Adcock Ingram Integrated Report 2018

...we are able to perform strategically . ...while actively managing our risk universe ... ...and allocate our capital resources . Implemented through our business model ... Refer to page 4 Refer to page 46 Refer to page 12 CUSTOMERS  Government  Wholesalers  Pharmacies  Hospitals  FMCG retailers  Homepatients R&D/REGISTRATION  Buy intellectualproperty  Develop intellectualproperty SOURCE  Rawmaterials sourced locallyor internationally  Finishedgoods from thirdparty suppliers MANUFACTURE  Own factories  Outsourced factories LOGISTICS  Distributioncentres Adcock Ingram manufactures, marketsanddistributes awide rangeof healthcareproducts. Our business model AsmembersofProudlySouthAfrican we shareacommitment toan upliftingethos thatpromotes social andeconomicchangeandprogress. Wemakeameaningfulcontribution tobuildingSouthAfrica’seconomy, alleviatingunemploymentand retainingexistingemployment opportunities. OUR CAPITAL INPUTS OPERATIONS TheCompany isa leading supplier to both theprivate andpublic sectors of theSouth Africanmarket. OURRISKUNIVERSE OURRISKUNIVERSE Weusecashgeneratedbyouroperationsaswellas debtfinancing to runourbusinessand fundgrowth. Investing inplantandequipmentallowsus to continue tocomplywith regulatoryandexpansion requirements. We requirecoal,water, landandenergy for production inourmanufacturing facilities. We integrate theneedsofour stakeholders intoour businessandwedeliveronourcommitments. Ourproprietaryand licensedproducts,dossiers, technologies, software, licensesand standardoperatingprocedures support ourbusiness. We requireadiverse setofpeoplewith specialist skillsand experience togrowourbusiness. Over thecounter Prescription Hospital Consumer Manufactured Natural Intellectual Human Socialand relationship Financial Refer topage22 Refer topage24 Refer topage26 Refer topage28 OUR PROCESSES OUTCOMES INTHEFORMOFVALUECREATION FOOTPRINT Ouroperationsare spreadacross sub-SaharanAfrica andourmanufacturing facilitiesarebased in SouthAfrica and India . Theheadofficeof theGroup is located in Midrand,SouthAfrica. Johannesburg Pretoria Polokwane CapeTown PortElizabeth Kimberley Bloemfontein Maseru Lesotho Mmabatho SouthAfrica Swaziland Namibia Botswana Windhoek Gaborone Mbabane Durban R1 290m EMPLOYEE REMUNERATION, INCLUDING SHARE-BASED PAYMENTS Humancapital R219m INCAPEX Manufacturedcapital R273m PAYMENTSTO PROVIDERS OFCAPITAL (interestanddividends) Financialcapital R6.6m TOTALCSISPEND Socialand relationshipcapital Gauteng 24000 Durban 10000 CapeTown 4800 PortElizabeth 3000 Bloemfontein 400 Total 42200 % 58 24 10 7 1 Palletspace Refer topage34 Refer topage32 Weconductourbusinessactivities whileactivelymanaging risk. Refer topage46 ADCOCK INGRAM IntegratedReport2018 5 ADCOCK INGRAM IntegratedReport2018 4 ABOUTUS Social and relationship Manufactured Human ...we realise capital outcomes ... Financial Intellectual Natural Social and relationship Manufactured Human Financial Intellectual Natural FIRST LINE SECOND LINE THIRD LINE ADCOCK INGRAM  Integrated Report 2018 11