The year under review unfolded within a demanding environment for both the healthcare sector and the Group. Alongside ongoing system pressures, AfroCentric navigated a number of operational and strategic developments that required careful stewardship, disciplined governance and clear leadership. In this context, the Board remained firmly guided by the Group’s long-term strategic direction and purpose.

Navigating change within a dynamic healthcare landscape

The healthcare environment is defined by complexity, pressure and ongoing transition. Economic constraints, rising healthcare demand, affordability challenges, utilisation trends and regulatory uncertainty continue to test the resilience of healthcare systems and funding models.

Further detail on the external drivers shaping the Group’s operating environment is set out in the Operating context section.

Against this backdrop, AfroCentric remains firmly committed to the principles underpinning universal healthcare and the progressive expansion of access to quality, affordable care. In a country marked by deep inequality in health outcomes, this commitment carries both social responsibility and long-term economic importance. We believe that improving access requires a healthcare system that is sustainable, outcomes-led and capable of delivering care at scale. This conviction continues to guide the Group’s strategic direction and contribution to healthcare reform.

In line with this commitment, the Board remains focused on constructive engagement with policymakers, regulators and industry stakeholders. We continue to advocate for a collaborative public-private healthcare framework that protects continuity of care, leverages existing capacity and supports sustainable reform over time. AfroCentric’s integrated healthcare capabilities, scale and experience position the Group to contribute meaningfully to this dialogue while remaining agile in the face of change.

Navigating the Bonitas developments with governance and care

The Board has given careful and sustained attention to developments relating to the Bonitas Medical Scheme (Bonitas) during the year. Medscheme has maintained a long-standing relationship with Bonitas over several decades, during which the scheme has grown into one of the country’s largest medical schemes, supported by Medscheme’s extensive administrative and managed care capabilities.

A key area of focus has been the continued sharpening of the Group’s strategic positioning. The Board supports the deliberate prioritisation of managed healthcare as the core engine of value creation, underpinned by clinical expertise, data-driven insights and integrated care models.

Over this period, the value delivered to Bonitas has been measurable across solvency, affordability, growth, retention, service levels, governance, and clinical outcomes. Notably, Medscheme played a primary role in supporting Bonitas’ solvency recovery through disciplined managed care interventions and evidence-based models — a key indicator of long-term sustainability for members. Service levels have also remained consistently high, even in increasingly complex delivery environments, with no service-level agreement breaches over an extended period. This performance contributed to Bonitas being recognised as the top medical aid scheme for excellence in customer experience in the Ask Afrika Orange Index Awards in both 2024 and 2025.

During the year, Bonitas conducted a request for proposal (RFP) process for administration and managed care services and awarded the contracts to third parties, while the Council for Medical Schemes (CMS) initiated a forensic investigation following earlier regulatory enquiries and media reporting concerning procurement processes. Medscheme launched an application in the High Court to prevent the award of the contracts or their implementation pending the conclusion of the CMS forensic investigation. These developments have understandably attracted significant attention across the healthcare sector.

The Board’s position is clear: governance, fairness and due process are fundamental to the integrity and sustainability of the healthcare system. Where regulatory investigations and legal processes are underway, they must be allowed to proceed through the appropriate channels and reach their conclusions in accordance with the rule of law.

At the same time, the Board’s responsibility to members and clients remains paramount. Until contractual arrangements change, the continued delivery of services to scheme members must remain professional, responsible and uninterrupted, with any transition managed to protect continuity of care and minimise disruption.

Recognising the potential implications of these developments for the organisation, the Board has directed management to implement a structured programme to reposition the business for revised scale. The programme focuses on stabilising the organisation, resetting the cost base, simplifying the portfolio and redesigning the operating model to ensure long-term sustainability.

Importantly, the Board acknowledges the human impact of these developments. We extend our sincere appreciation to employees who have supported the Bonitas relationship over many years with professionalism and care, including those who may be affected by the potential loss of this contract. Their contribution has been instrumental to the value delivered and is deeply valued by the Group.

While the circumstances require careful stewardship and disciplined execution, the Board remains confident in the strength of the Group’s core healthcare capabilities and its continued role in supporting millions of beneficiaries across multiple schemes.

Sharpening strategic focus through disciplined governance

During the year, the Board maintained a strong focus on strategic execution, governance discipline and organisational resilience. Building on the strategic refresh undertaken in the prior period, attention shifted decisively from strategy articulation to delivery, supported by strengthened oversight structures and clearer accountability.

In parallel, the Group undertook selective disposals and prioritised partnerships to streamline its portfolio and ensure that capital and leadership attention are concentrated where AfroCentric can deliver the greatest long-term impact. These actions reflect strategic discipline and a commitment to sustainability rather than short-term scale.

Central to this approach is the Group’s partnership with Sanlam. Alignment of reporting cycles, operating models and strategic priorities has strengthened long-term stability while creating opportunities to deepen integration across healthcare funding, administration and care delivery. The Board continues to view this partnership as a cornerstone of AfroCentric’s ability to deliver sustainable value over time.

Governance remains a defining strength of the Group. The Board and its committees exercised rigorous oversight across risk management, financial performance, regulatory compliance and ethical conduct. In an environment characterised by heightened scrutiny and complexity, this discipline is essential to maintaining stakeholder trust and safeguarding long-term value.

AfroCentric’s ability to fulfil its purpose ultimately depends on its people. The Board continues to place significant emphasis on leadership depth, succession planning and the cultivation of a high-performance, values-driven culture – particularly in a demanding operating environment where skills, resilience and ethical conduct are essential.

Strengthening leadership and stewarding our people

The Board was strengthened during the year by the appointment of Ms Charlotte Mokoena in October 2025. Ms Mokoena also serves on the Nomination committee, Remuneration committee and the Social and Ethics committee. She brings extensive experience as a senior human resources executive, and her insight into people, culture and organisational effectiveness is already adding value to Board deliberations. The Board warmly welcomes her contribution to the Group’s governance and long-term stewardship.

Ms Marinda Dippenaar resigned from the Board with effect from 6 March 2026. She also resigned from the Investment committee. The Board would like to thank her for her contribution.

Ensuring that AfroCentric remains a place where people can thrive is both a moral responsibility and a strategic imperative. Ongoing attention to employee wellbeing, engagement and ethical conduct remains essential, particularly in a demanding operating environment.

Upholding integrity through regulatory and legal stewardship

Trust remains foundational to the functioning of the healthcare system. During the year, CMS published the findings of the Section 59 Inquiry into aspects of fraud, waste and abuse detection across the industry. While the findings are not legally binding and did not result in sanctions, they contributed to important public discourse regarding fairness, transparency and procedural integrity.

The Board notes that Medscheme had already taken proactive steps prior to the publication of the report to strengthen governance controls, enhance oversight mechanisms and mitigate any potential risk of bias or unintended discrimination in its processes. These actions reflect the Group’s ongoing commitment to ethical conduct, continuous improvement and regulatory alignment.

The Board also notes the resolution of the long-standing litigation involving Neil Harvey and Associates, which has spanned more than 18 years. The findings of the Appeal Tribunal affirm Medscheme’s position and bring welcome closure to a matter that has required sustained legal and governance attention over an extended period. The case is being taken on review by NHA.

Positioning the Group for sustainable long-term value

Looking ahead, the healthcare environment is likely to remain complex and contested. Affordability pressures, regulatory developments, technological change, workforce constraints and increased utilisation will continue to shape the sector.

AfroCentric’s long-term strategy remains clear. The Group is focused on strengthening integrated healthcare delivery, advancing clinical and digital innovation, deepening partnerships and operating with discipline and integrity.

While the near-term environment will require careful stewardship and disciplined execution, the Board remains confident in the strength of the Group’s underlying capabilities and the scale of the healthcare platform that continues to serve more than three million beneficiaries across multiple schemes.

For more detailed strategic outlook information, please refer to our strategy and approach section.

I would like to thank my fellow Board members for their commitment, insight and stewardship. I also extend my appreciation to the executive team and all AfroCentric employees for their professionalism and dedication during a demanding year.

Finally, I thank our shareholders, clients, partners and stakeholders for their continued trust and engagement.

With a clear purpose, strong governance and a disciplined focus on execution, AfroCentric remains well positioned to navigate the period ahead and contribute meaningfully to the evolution of healthcare in Southern Africa.

Prof. Anna Mokgokong

Chairman