Pharmaceutical & Surgical Wholesalers & Distributors. Presentation prepared for Day Hospital Association Conference

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1 Pharmaceutical & Surgical Wholesalers & Distributors Presentation prepared for Day Hospital Association Conference 21 October 2016

2 Contents Company Vision and Ethics Company Profile Company Structure Day Hospital Proposal

3 OUR VISION AND ETHICS VISION To establish ourselves as a partnership with our customers and to provide the level of service delivery that will maintain ourselves as our customers preferred service provider OUR BUSINESS ETHICS are to always conduct business with uncompromising honesty and integrity.

4 Company Profile and Capabilities Established in 1989,wholly owned South African healthcare company fully black empowered. The Company is a registered pharmaceutical wholesaler and distributor as well as a retail courier pharmacy. Services 85% of the Independent Hospitals and Clinics nationally. Our core business is group procurement; pharmacy management; direct to patient retail and chronic dispensing; and warehousing and distribution services of pharmaceutical and surgical consumables to both the private and public healthcare providers. Head office based in Fourways in Johannesburg with a complete business infrastructure which includes a MCC approved licensed distribution center in Johannesburg and Cape Town and branches in Durban and Port Elizabeth, all supported with own fleet of delivery vehicles. Qestmed has full cold chain management capabilities and is able to deliver nationally on a same day basis or next day turnaround. All operational functions are driven by a young, dynamic, diversified management team.

5 Company Profile and Capabilities ( Contd) The Group has over 27 years of experience in the public and private hospital and clinic market. Qestmed has preferred supplier agreements with the Netcare & Life Healthcare Groups. We remain the preferred and exclusive supplier to many of the NHN Group of hospitals for the past 14 years. We are able to deliver to the greater Pretoria/Johannesburg, Durban and Cape Town areas (100 km radius) on a twice daily basis, and for all other areas on a next day basis. We are contracted with Surgicom, Orderwise and X-Procure and as such are able to receive orders and respond electronically within seconds.

6 Company Structure Hospital Division Services three private hospital groups and Independent Private hospitals through fine distribution with branded and generic pharmaceuticals and surgical consumables purchased in bulk from suppliers on a national basis, with a customized electronic ordering system. Oncology Division Services 40% of the private oncology market nationally. Has the ability to customise the oncology service to customer needs. Performs direct patient billing to medical aid schemes. Specialised Clinics; Doctors and Healthcare Centers Provides a one-stop shop service with split pack options where required, and customized delivery services by customer and/or product. Hospiformance Is a group procurement company that offers group procurement solutions and account administration services to the independent private hospitals and clinics nationally. The company has secured procurement contracts with all surgical and pharmaceutical suppliers in the country. I-Qest Manages and supplies the Hospiformance price file which is used by NHN members for patient billing.

7 Proposal to Day Hospitals We are able to offer a customized warehousing and distribution solution to the Day Hospitals as we understand that not all businesses needs are the same. We understand that Day Hospitals and clinics have specific procurement requirements with regards to split packs and in some cases, a one stop shop supply service. Through our bulk group buying for the Hospiformance group we are able to offer Day hospitals products at group competitive prices. Through our Hospiformance tenders we are able to offer selected products at even lower prices. Becoming members of Hospiformance will mean that Day Hospitals will never pay more than NAP(Net Acquisition Price) for surgical products and will therefore not incur losses due to paying more for a product than what you are able to charge. We are prepared to work with the Day Hospital Association and its members to standardize on a basket of products whereby we can procure these products at the most competitive prices, split packs, and deliver to the Day hospitals in line with our delivery service times. We are prepared to install the Surgicom ordering system into the Day hospitals free of charge. This will make the task of placing orders much easier. Products that are on tender or included in the standardized basket of products will be highlighted accordingly thereby ensuring that the Day hospitals buyers order the correct stock. We will be able to circulate and facilitate the movement of slow moving and close to expiry stock between all our Hospiformance and Day hospital members thereby reducing the amount of stock that Day hospitals will have to write off.

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