OUR OUTLOOK AND ANCILLARY INFORMATION

Challenges, Uncertainties and Disruptive Factors FY25

OUR OUTLOOK AND ANCILLARY INFORMATION

Challenges, Uncertainties and Disruptive Factors FY25

As we look ahead, our new strategic direction emphasises prioritised initiatives aimed at fostering long-term, mutually beneficial relationships with our stakeholders.

We recognise our vulnerabilities in strategic planning and their potential implications for the organisation, as well as the opportunities they present. This proactive approach enables us to respond swiftly to stakeholder needs and maintain our crucial role as a cornerstone of healthcare services in South Africa. Guided by our FY2025/2026-2029/2030 Strategy, which aligns with the six capitals, we are positioned to create value and achieve positive outcomes in the short, medium, and long term. The illustrations below demonstrate this commitment.

Financial Capital

Strategic Priority

Sustainable business model - financial sustainability

Prioritise resource optimisation, cost-effectiveness, and innovative funding to ensure a sustainable future
New revenue streams (increased source plasma collection for NBI), cellular therapies, research grant funding
Manage bad debts rigorously by improving debt collections tactics
Optimise process cost efficiency for delivery of blood products

Challenges, Uncertainties and Disruptive Factors

Persistence of the Ukrainian/Russian war and their macro impact on global economies; impact on our exchange rates and the cost impact as SANBS is billed in Euros
Financial sustainability (collecting what is owed to us)
Government and medical aids financial sustainability and ability to pay for blood
Keeping the service fees for blood low

Mitigating Actors/Opportunities

Strong financial management leadership provided by the CFO
Rejections by Medical Aids understood and reduced from lofty highs of 25% to around 3.5%
Improved cash collection efforts
Implementation of a robust billing system for order to collect programme
Transparent cost models for products and services
Enhance budgeting processes and monitoring mechanisms to optimise financial performance and resource allocation
Ongoing meetings held with Government and Medical Aid Schemes
Well-managed bad debt provision
Leveraging technology to manage debt collection efforts
Alternative revenue streams
Process improvements to increase first-time payment rates
Strengthening our Procure-to-Pay process
Consideration of hedging strategies

Risks

Materiality Matters

Manufactured Capital

Strategic Priority

Supply chain (logistics, stores, inventory), connecting patients and products

Prioritise efficiency and reliability in our supply chain
Optimise logistics and inventory to ensure timely and safe delivery of products
Expand products and services through innovation
Mainstream digitalisation of business processes (outside of BECS & ERP)
Mobile Donor Centres/vehicles of the future
Digitalisation of Procure-to-Pay and Order-to-Collect Processes

Challenges, Uncertainties and Disruptive Factors

Maintaining and increasing the donor base
Patient blood management and reduced demand
Blood supply, given concerns, areas affected by riots/protests/strikes and floods
Supply and logistics uncertainties for critical consumables

Mitigating Factors/Opportunities

Optimise internal processes in patient facing labs to enhance service delivery; Harness technology by implementing BECS phase 2 and incorporating a technology platform to digitalise processes
Engage with stakeholders and implement a differentiated strategy for product and services
Upgrading of SAP and implementing SAP S4 HANA
Process improvements (better models for service delivery) – donor convenience, smart fridges
Optimise the management, procurement, storage and distribution of consumables and goods
Optimise the management, storage and distribution of blood products
Develop and implement a strategic supplier relations programme aimed at maximising operational efficiencies
Increasing regional blood collection to reduce the cost of blood collection and distribution
Use of drones in emergency situations
New blood collections models