Our business strategy
Our business strategy is to build a resilient product portfolio promoted in growth territories, strategically aligned to our enhanced manufacturing capacities and capabilities, to achieve organic growth and create long-term value. Our strategy is underpinned by our overriding commitment to deliver social value for our stakeholders.
Our strategic positioning supports delivery of our vision.
We seek to achieve this through building a differentiated portfolio of relevant IP, creating value through our complex manufacturing capabilities and enabling access through our globally integrated supply chain.
Our market positioning is focused on leveraging opportunities presented by emerging markets, balanced with presence in more established, stable developed markets.
Through our dynamic portfolio management model, we build, optimise and reshape our basket of products to achieve a global product portfolio of niche, specialty products complemented by leading regional brands, aligned to our manufacturing capability.
We implement our strategy by applying the resources we have available in execution of our business model to achieve sustainable growth and value creation.
We have identified KPIs designed to provide a defined measure of performance against our strategic objectives. We track our performance by reporting against these KPIs to the Board on a quarterly basis. In this way, the performance of executive directors, executives and senior management is aligned to our sustainable business strategy.
Reporting on our performance against our strategic objectives is included in Our strategic business performance.
Our focus areas
- Build and strengthen pipeline and accelerate product launches
- Focus on expanding our emerging country portfolios by establishing a meaningful presence in countries with high growth potential
- Implement initiatives to achieve security of supply
- Explore opportunities to reshape, optimise and revitalise product portfolio
- Explore opportunities to play a greater role in vaccine supply to Africa.
KPI^
- Number of product recalls
Our focus areas
- Optimise operations, drive efficiencies and reduce cost of goods
- Achieve the transfer of the manufacture of complex, sterile products to Aspen sites
- Focus on supply performance and optimise carrying levels of inventory
- Partner with multinationals to leverage excess manufacturing capacity in niche specialty sterile manufacturing, including vaccines
- Advance digital transformation across our value chain
KPI^
- Gross profit
Our focus areas
- Build a culture of operational excellence and cross-functional collaboration
- Strengthen leadership capacity across the Group
- Harness the benefits of equity, diversity and inclusion
- Focus on the development and retention of required skills
- Maintain a strong health and safety culture across our operations
- Align organisational design to position the Group for success
KPIs^
- Average staff turnover
- Average training spend per employee
- Percentage of females in top management roles in the Group
- Percentage of black employees in top management roles in South Africa
- Total recordable incident frequency rate ("TRIFR")
$
Our focus areas
- Maintain high governance and ethical standards
- Enhance relationships and reputation with our various stakeholders
- Recalibrate sustainability strategy and align ESG priorities
- Explore resource efficiency projects to secure security of supply and minimise impact on the environment
- Develop a climate change strategy
KPIs^
- BBBEE accreditation in South Africa
- FTSE/JSE Responsible Investment Index score
- Carbon emissions
- Waste recycled
- Water withdrawn
- Electricity used
Our focus areas
- Drive organic growth through the realisation of the potential of existing portfolio and territories
- Increase operating margins and generate strong free cash flows
- Remain alert to acquisition, disposal and collaboration opportunities which present strategic value
- Optimise the allocation of available capital
- Deliver economic benefits to suppliers, employees, governments, communities and shareholders
KPIs^
- Revenue growth
- NHEPS growth
- Normalised EBITDA growth
- Normalised EBITDA margin percentage
- Operating cash flow per share
- Return on invested capital ("ROIC")#
- Free cash flow#
- Leverage ratio
Assurance on our KPIs
We obtain assurance on these reported KPIs through a combined assurance approach:
IBIS
Empowerdex
EY
Internal Audit
Further discussion on combined assurance is included on our risks and opportunities
^ KPI definitions are included in the Sustainability and ESG Data Supplement available online.
$To align with best practice, we have transitioned to TRIFR as our KPI for Health and Safety, replacing lost workday frequency rate ("LWDFR"), refer to human capital | # Measured, not reported
