KPJ Healthcare : Integrated Report 2022 Corporate

2 Basis of this Report

				SEC 3		GOVERNANCE	SEC 5
			OUR VALUE
			STORY
					103	Corporate Information
		39	Our Response to the	103	Company Secretary
		104	Corporate Structure
				Market Landscape
		42	106	Who Governs Us
		Stakeholder
	SEC 1	118	KPJ Senior Management
			Management
		48			Team
		Sustainability	126
		Corporate Governance
				Materiality
		52			Overview Statement
OUR VALUE	Managing Key Risks	145
Audit Committee Report
		& Opportunities
PROPOSITION	62	149	Statement on Risk
Our Value Outcomes
				Management and Internal
			75 Patient-centric Care
4	At a Glance		157	Control
			Medical Advisory
6	Awards & Recognition						Committee Report
10	2022				168	Compliance Information
What We Do

1. Our Value Creation

1. Our Approach to

16	Sustainability		SEC 6
Our Strategic Progress	WHAT'S
		INSIDE THIS
		REPORT	FINANCIAL STATEMENTS

SEC 7

APPENDICES

310

Shareholdings Statistics

SEC 4

313 List of KPJ Top 10

314

Properties

Group Network and

Directory

316 Notice of Annual General

SEC 2

OUR PERFORMANCE

Meeting

REVIEW

Proxy Form

LEADERSHIP STATEMENTS

77

Clinical and Hospital

82

Operations

20

Statement from Our Chairman

Ambulatory Care and

24

Review of the Officer in Charge

90

Wellness

30

Financial Review

Ancillary Services

34

Group Quarterly Performance

98

Education

36

5-Year Financial Performance

100

Digitalisation

102

Health Tourism

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38

Statement of Value Added

Integrated Annual Report 2022

COVER RATIONALE

At KPJ, we are dedicated in serving our stakeholders especially our patients, as they rely on us to provide high-quality healthcare. Our Integrated Annual Report

2022 reflects our commitment in prioritising the health needs of our patients as we understand that through care that goes above and beyond patient expectations, we are creating strong connections which leads to better health outcomes. Bringing together product and service excellence with passion and compassion is how we are "Connecting Hearts" to sustainably preserve the health and wellbeing of our stakeholders.

VISION

The Preferred Healthcare Provider We 'Care for Life'. We strive to be the preferred provider of healthcare throughout the continuum of care, by leveraging on the innovative use of technology and capitalising on our experienced consultants, our well-trainedand caring employees and our extensive network of specialist hospitals. Together we will offer the best diagnosis, treatment and care, for all our patients and customers.

MISSION

Deliver Quality Healthcare Services Our mission is to improve the health of the people and the communities we serve. Led by skilled and caring medical staff, we are consistently focused

on clinical excellence and innovative technology for superior patient outcomes and customer experience.

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OUR CORE VALUES

We are guided by our five Core Values which underpin our dedication to 'Care for Life'. It is through these five Core Values, we deliver and grow KPJ's patient-centric healthcare services focused on compassionate care.

Ensuring Safety	Delivering Service	Performing Duties
	with Courtesy	with Integrity

Exercising Professionalism	Striving for Continuous
at all Times	Improvement

2

KPJ Healthcare Berhad

Basis of this Report

BASIS OF THIS REPORT

Welcome to KPJ Healthcare Berhad's (KPJ or the Group) Integrated Annual Report 2022. Our fifth Integrated Annual Report serves as a platform for us to present a comprehensive and transparent account of the Group's businesses, strategies and performance as well as demonstrate how we continue to create value for our stakeholders.

KPJ's vision is to be the preferred healthcare provider to our patients and customers are laser-focused on achieving this via our commitment to deliver exceptional healthcare. We consistently achieve high-quality patient outcomes and foster a loyal customer base by skillfully guiding patients through their healthcare journeys, emphasising on our 'Care for Life'. We go all out to support this commitment by bringing the appropriate resources and strategies into play, all of which are enabling us to create a sustainable business that is positioned for long-term success.

REPORTING SCOPE AND BOUNDARY

This Integrated Annual Report goes beyond financial reporting and encompasses our non-financial activities for the period 1 January to 31 December 2022. Building on our previous publications, it aims to present to KPJ's stakeholders our progress in implementing our strategies as well as our approaches in navigating challenges, risks and opportunities that had a significant influence on our ability to create value.

This report covers the operating activities of the Group and all its subsidiaries in various locations. It is worthy to note that the Malaysian operations contribute an estimated 95% of the Group's revenue, therefore, our reporting results are predominantly derived from these operations and its related activities.

REPORTING FRAMEWORKS

In line with best practices, this Report adopts the Value Reporting Foundation's (formerly known as the International Integrated Reporting Council) Integrated Reporting Framework. The Framework is a principle-based, multicapital framework that is used to accelerate the adoption of integrated reporting across the world. Our reporting is also aligned with the updated Malaysian Code on Corporate Governance (MCCG) that was released in April 2021, the Main Market Listing Requirements (MMLR) of Bursa Malaysia Securities Berhad (Bursa Securities), the Companies Act 2016 (CA 2016), and both the International Financial Reporting Standards (IFRS) and Malaysian Financial Reporting Standards (MFRS).

Sustainability-related information has been prepared in accordance with the Global Reporting Initiative (GRI) Standard and is closely guided by Bursa Malaysia's Sustainability Reporting Guide (2nd and 3rd Edition) to fulfil Bursa's enhanced sustainability requirements in the MMLR and FTSE4Good Bursa Malaysia Index criteria. This is our first year reporting on the quality of our healthcare according to the SASB reporting standards. The SASB standards are specific to the healthcare industry and are meant to provide information on the quality of our healthcare and customer satisfaction, both of which can affect our financial performance. We also continue to be guided by our commitment towards the United Nations Sustainability Development Goals (UN SDGs) which is covered within this Report.

NAVIGATION ICONS

Our Value Creation activities are linked to our Six Capitals and Seven Strategic Thrusts through the following icons, applicable throughout this Integrated Annual Report:

Our Six Capitals

FinancialManufactured

HumanNatural

Intellectual	Social and
	Relationship

Our Seven Strategic Thrusts

S1S5

CapacityHuman

BuildingResources

S2S6

EnrichedBusiness

CustomerProcess

Relationships Improvement

S3	S7
Innovation	Sustainable Value
@ The Core	for Stakeholders

S4

New Niches

Integrated Annual Report 2022

www.kpjhealth.com.my

FORWARD-LOOKING STATEMENTS

This Integrated Annual Report contains forward-looking statements with the use of words or phrases such as "might", "forecast", "anticipate", "project", "may", "believe", "predict", "expect", "continue", "will", "estimate", "target", and other similar expressions. The report may also contain forecast information about KPJ Healthcare Berhad's future direction, strategies and growth opportunities. These forward-looking statements are not to be construed as a guarantee of our operating performance or financial results as the business is subjected to uncertainties and risks which are present in our dynamic business environment.

3

BASIS OF THIS REPORT

APPROVAL BY THE BOARD

Datuk Md Arif Bin Mahmood

Chairman

KPJ Healthcare Berhad

Norhaizam binti Mohammad Officer In Charge

OUR REPORTING SUITE

KPJ's Integrated Annual Report for the financial year ended 31 December 2022 is supplemented by our standalone Sustainability Report 2022. Our reporting suite can be accessed online at https://www.kpjhealth.com.my.

REPORTING SUITE	INTEGRATED ANNUAL REPORT 2022	SUSTAINABILITY REPORT 2022
Disclosure	•	Management Review	• Global Reporting Initiative Universal
	•	Corporate Governance Overview Statement		Standard 2021 (GRI 2021)
	•	Audit Committee Report	•	Bursa Malaysia's enhanced
	•	Statement on Risk Management and Internal		sustainability reporting requirements
		Control
	•	Directors' Report
	•	Independent Auditors' Report
	•	Financial Statements
Reporting	•	MMLR	•	GRI 2021
Frameworks	•	Value Reporting Foundation's Framework	• FTSE4Good Bursa Malaysia Index
	•	MCCG		Criteria
	•	Companies Act 2016
	•	MFRS
	•	IFRS