Aster DM Quality Care Ltd Management Discussions

2.Operating EBITDA for the period FY26 excludes the ESOP Cost of INR 8.3 Cr [FY25: 8.4 Cr], Movement in fair value of contingent consideration payable of INR Nil [FY25 : 0.8 Cr], Variable O&M fee amounting to INR 37.3 Cr [FY25 : 31.8 Cr]. [Our Operating & Management (O&M) agreements, encompasses both fixed and variable component. While the fixed component of the O&M fee is delineated into depreciation and finance costs as per Ind AS 116, whereas the variable component falls outside the scope of IndAS 116, leading to an incomplete reflection of the standards impact in EBITDA] ^3.Normalised PAT for FY 2026 excludes exceptional income of INR 38.4 Cr [FY 2025: Nil] arising from minimum wage reversal, as well as exceptional expenses of INR 71.1 Cr [FY 2025: 50.1 Cr], which includes merger related costs, CSR expenses related to profits from the sale of the GCC business and other provisions.

The consolidated revenue grew by 12% year-on-year to INR 4,643 crore in FY26 from INR 4,138 crore in FY25. The growth in revenue is driven by YoY growth of 9% in total volume and YoY growth of 15% in ARPOB reaching to INR 51,800 in FY26, with an improvement of 4% YoY in ALOS.

Consolidated Operating EBITDA grew strongly by 17% year-on-year reaching to INR 947 crore in FY26 compared to INR 806 crore in FY25. Operating EBITDA margins has also improved to 20.4% in FY26 from 19.5% in FY25. This improvement is driven by operational leverage from strong revenue growth and enhanced EBITDA performance from Lab business.

Material cost as a percentage of revenue remained stable at 22.6% in FY26 as compared to 22.7% in FY25.

Doctor costs and Employee costs also remained stable at 22.2% and 18.3% respectively in FY26.

Other cost as a percentage has reduced to 16.5% in FY26 from 17.2% in FY25 on account of focused cost optimisation efforts across units.

Finance cost remained largely stable at INR 123 crore in FY26 compared to INR 124 crore in FY25, reflecting prudent capital management despite continued investments in expansion projects.

Depreciation increased to INR 264 crore in FY26 from INR 249 crore in FY25, primarily due to capacity addition of 290 beds.

Tax expense increased to INR 143 crore in FY26 from INR 134 crore in FY25, on account of an increase in profits from the hospital business.

Other income reduced to INR 126 crore in FY26 compared to INR 148 crore in FY25, primarily attributable to lower interest income and non-operating gains compared to the previous year.

The Companys PAT (post non-controlling interest) increased by 26% to INR 388 crore in FY26 compared to INR 307 crore in FY25 reflecting improvements in operational performance and profitability. Normalised PAT (Post NCI) adjusted for minimum wage reversal and transaction cost, increased from INR 357 crore in FY25 to INR 421 crore in FY26 (excluding transaction cost), reflecting a growth of 18%.

For FY26, the Board declared an interim dividend of INR 3.0 per equity share (face value of INR 10 each).

Fixed assets as of March 31, 2026, is INR 3,058 crore as compared to INR 2,694 crore as of March 31, 2025. This growth is primarily attributable to new capacity expansion at Aster Kasargod (greenfield project) along with investments in hospital infrastructure, medical equipment.

The Company maintained a healthy leverage profile despite continued investments in growth initiatives.

The Companys Balance sheet remained strong with a net cash position of INR 626 Crore as on March 31, 2026.

Total Borrowings stood at INR 701 crore as of March 31, 2026 compared to INR 642 crore as of March 31, 2025.

Total Cash, bank balances and current investments stood at INR 1,327 crore as of March 31, 2026 compared to INR 1,381 crore as of March 31, 2025.

Net Debt (Net Cash) to EBITDA (Pre IND-AS) stood to (0.8) x, reflecting the Companys strong liquidity position and disciplined financial management.

Overall lease liabilities as of March 31, 2026 were at INR 1,518 crore as compared to INR 1,376 crore as of March 31, 2025, primarily due to planned capacity addition at Aster Whitefield (Block D) and revision of lease rentals for the existing capacity at Aster Whitefield.

*The ratio has been calculated after considering a one-time dividend income of INR 5,569.96 crore and exceptional income of INR 323.15 crore in FY 2024-25, as well as exceptional expenses of INR 89.92 crore in FY 2025-26.

The Companys bed capacity increased to 5,449 beds as of March 31, 2026, from 5,159 beds as of March 31,2025. The Company added 290 beds last year including the commissioning of 263 beds at Aster Kasargod and balance of 27 beds across other locations. Aster plans to increase its standalone bed capacity to 8,200 beds over the coming years through a robust expansion pipeline including both greenfield and brownfield projects, reinforcing its healthcare infrastructure and supporting long-term growth.

The Company witnessed healthy growth in Average Revenue Per Occupied Bed (ARPOB), increased by 15% YoY to INR 51,800 in FY26 from INR 45,000 in FY25. The improvement was driven by a favourable specialty mix, improved realisations, focus on high-acuity treatments, growth in international (MVT) revenue and improvement in ALOS.

The company witnessed healthy growth in Average Revenue Per Patient In-Patient (ARPP IP), increased by 9% YoY to INR 1,21,016 in FY26 from INR 1,10,948 in FY25. The improvement was driven by a favourable specialty mix, improved realisations, focus on high-acuity treatments and growth in international (MVT) revenue.

The overall payor revenue mix witnessed a change with Insurance & Corporate patients contribution increased by 100 bps YoY to 34% in FY26 from 33% in FY25 while Walk-in patients continued to form the largest share of revenues at 55% in FY26. The contribution from government schemes marginally increased to 6.7% in FY26 from 5.3% in FY25 on account of price revision, while contribution from international patients (MVT) remained stable at 4% in FY26.

The Company maintained a well-diversified specialty revenue mix during FY26, with no single specialty contributing more than 15% of total revenue. The Companys focus on strengthening high-acuity specialties resulted in an increase in the CONGO mix (Cardiac Sciences, Oncology, Neurosciences, Gastroenterology & Integrated Liver Care and Orthopaedics) to 51% in FY26 from 50% in FY25. The contribution of Oncology increased from 7% in FY22 to 11% in FY26, underscoring the Companys commitment to strengthening access to advanced care across high-demand specialty segments

The average length of stay (ALOS) improved by 4% YoY to 3.1 days in FY26 from 3.2 days in FY25, driven by the adoption of advanced medical technologies in cardiac care and operational improvements such as enhanced discharge planning and streamlined insurance approvals. These initiatives contributed to better bed utilization while maintaining patient care quality and throughput.

The Companys core business hospitals and clinics has achieved a CAGR of 16% in revenue over the last three years till FY26, supported by higher patient volumes, improved case mix, increasing Medical Value Travel (MVT) revenues and expansion across key markets. The segment contributed 95% of the total revenue and grew by 13% to reach to INR 4,500 crore in FY26 from INR 3,990 crore in FY25.

The Company strengthened its advanced clinical capabilities across organ transplantation, robotic surgery, oncology, neurosciences and cardiac sciences, reinforcing its position as a leading provider of tertiary and quaternary healthcare services. In FY 2026, the Company performed over 578 transplants and conducted 2,700 robotic surgeries.

The Operating EBITDA for hospital and clinics has achieved a CAGR of 24% over the last three years till FY26 driven by operating leverage, improved realisations and continued focus on cost optimisation. The Operating EBITDA grew by 18% to INR 1,031 crore in FY26 from INR 875 crore in FY25, while Operating EBITDA margin expanded to 22.9% from 21.9% in FY25.

The Companys hospitals and clinics business continued to generate healthy returns through sustained profitability improvements and disciplined capital allocation. The Return on Capital Employed (RoCE*) from the Companys core hospital business increased to 27% in FY26 from 25% in FY25, supported by higher earnings and improved operating performance.

The Companys mature hospital portfolio Hospitals in the 3-7 years maturity Hospitals in this category commenced remained the primary driver of operating category continued to demonstrate operations about two years ago and performance during FY26. Comprising healthy operational performance and are currently in their growth phase. 11 hospitals, this category accounted improving profitability. The segment This category comprised four hospitals for 78% of hospital revenue and 76% of comprised four hospitals and contributed (including Aster Kasargod commenced its operational census beds. The segment 10% of hospital revenue and 12% of operations in Oct 2025) and accounted generated revenue of INR 3,474 crore operational census beds. Revenue stood for 12% of hospital revenue and 13% and Operating EBITDA of INR 882 crore, at INR 442 crore, while Operating EBITDA of operational census beds. Revenue resulting in an EBITDA margin of 25.4%. reached INR 91 crore, translating into an stood at INR 523 crore, while Operating Strong operating efficiencies, established EBITDA margin of 20.6%. The segment EBITDA amounted to INR 55 crore, clinical programmes and higher utilisation reported a ROCE of 23.8%, reflecting resulting in an EBITDA margin of 10.5%. levels contributed to a robust Return on continued ramp-up and improving Excluding Kasargod Hospital, revenue Capital Employed (ROCE) of 36.5%. operating leverage. for the category stood at INR 496 crore, with Operating EBITDA of INR 77 crore, EBITDA margin of 15.5% and positive ROCE of 4.3%.

The Kerala cluster performed strongly, contributing 53% of the overall hospital business revenue in FY26. The clusters revenue grew by 14% YoY to INR 2,405 crore in FY26, supported by growth in patient volumes, international (MVT) revenues and contribution from the newly operationalised Kasargod facility. MVT business revenue grew by 39% YoY in FY26 despite macroeconomic headwinds in key source markets. The cluster witnessed temporary disruptions arising from the nurses strike during the last year. Despite these factors, the Operating EBITDA grew by 20% with improvement in operating EBITDA margin to 24.6% in FY26 from 23.4% in FY25, led by cost efficiencies and operating leverage Excluding the newly commissioned Kasargod facility, the revenue grew by 13% YoY in FY26 while operating EBITDA grew by 24% YoY with operating EBITDA margins remained strong at 25.6%.

Total patient volumes increased by 11% YoY in FY26, with inpatient volumes growing by 6% and outpatient volumes increasing by 12%. ARPP (IP) improved by 5% YoY to INR 1,04,090 in FY26, supported by a favourable case mix and higher contribution from specialised procedures.

The Karnataka and Maharashtra, contributing 35% of hospital business witnessed revenue growth of 10% YoY to INR 1,553 crore in FY26. The growth is supported by higher ARPP (IP) and improved specialty mix. The Operating EBITDA grew by 14.0% YoY to INR 366 crore in

FY26, while EBITDA margin improved to 23.5% from 22.8% in FY25, supported by strong performance with the successful ramp up of Aster Whitefield hospital in Bengaluru. Excluding the Whitefield hospital, the cluster achieved operating EBITDA margin of 25.3% in FY26 as compared to 25.1% in FY25.

Andhra Pradesh and Telangana cluster performed well with revenue increased by 15% YoY to INR 542 crore in FY26, driven by strong performance from Ramesh hospitals, growth in patient volumes and ARPP (IP). The Revenue from Ramesh Hospitals grew strongly by 10% during the year. The Operating EBITDA grew by 22% to INR 73 crore in FY26, while EBITDA margin improved to 13.5% from 12.7% in FY25.

Total Patient volumes grew by 12% YoY in FY26 with 7% growth in in-patient volumes and 13.5% growth in outpatient volumes. ARPP (IP) increased by 8% YoY supported by an improvement in case mix. The company has increased its capacity by adding 75 beds at Ramesh Ongole in April 2026.

The Labs business continue to demonstrate strong performance during the last year. The overall revenue grew by 16% in INR 153 crore in FY26 while operating EBITDA almost doubled to INR 20 crore with operating margin improved to 12.8% from 7.6% in FY25.

The Aster Health app continued to strengthen its position as a key enabler of digital healthcare access, crossing 500,000 downloads during FY26 with the integration of hospital laboratory reports, radiology reports and medical images. This digital platform recorded more than 51,000 unique patients, over 33,000 monthly active users and facilitated more than 64,000 appointments during the year. In parallel, the Company expanded its digital patient engagement initiatives through AsterCare, a clinical reactivation platform designed to re-engage dormant patients based on their healthcare needs. During its pilot phase, the platform achieved an 8% patient reactivation rate, successfully reconnecting with over 6,500 patients. Following a successful proof of concept, the programme is being scaled across additional facilities.

The Company continued to strengthen its digital diagnostics capabilities through its 24/7 teleradiology business model, enabling centralised remote interpretation of MRI, CT and X-ray scans through a hub-and-spoke network. The platform supports both internal operations and external healthcare institutions, improving reporting efficiency, optimising radiologist utilisation and enabling round-the-clock diagnostic coverage.

The revenue from wholesale Pharmacy business decreased to INR 108 crore in FY26 from INR 134 crore in FY25, primarily due to the planned exit from a loss-making wholesale unit. This strategic decision was undertaken to enhance profitability and has yielded positive results, with the business achieving a positive Operating EBITDA of INR 1 crore in FY26.

During FY26, the company has added 290 beds, including the commissioning of 263 beds at Aster Kasargod and balance of 27 beds at other locations, reaching total bed capacity to 5,449 beds as of March 31, 2026. Aster has a robust expansion plan to add 2,728 beds in the coming years through a mix of brownfield and greenfield projects. Out of the total 2728 beds, 688 beds will be added in FY27 (Already commissioned 159 beds at Aster Whitefield and 75 beds at Ramesh Ongole in April 2026), 760 beds in FY28, and 1280 beds beyond FY29. With this, the Company is aiming to increase its total bed capacity to 8,177 beds. Following the proposed merger with Quality Care India Limited, the combined platform has a current capacity of 10,898 beds as on 30^th June 2026 and planned to add 4,179 beds, taking the total bed capacity to 15,077 beds over the coming years. The expansion plan is focused on a balanced mix of brownfield and greenfield developments, with 53% of the planned additions coming from existing facilities and 47% new facilities, enabling efficient capital deployment while strengthening market presence across high-growth healthcare corridors.

Aster Yeshwanthpur - Planned Bed Capacity increased to 550 beds from 500 beds Aster Sarjapur - Planned Bed Capacity increased to 460 beds from 430 beds

The Company believes that its people are the foundation of its success and remains committed to building a high-performance, patient-centric and inclusive workplace. Through investments in talent development, leadership enhancement and capability building, the Company seeks to nurture a future-ready workforce aligned with its mission of delivering quality healthcare services. Employees are empowered through structured learning programmes, clinical advancement initiatives, leadership development interventions and digital capability enhancement opportunities.

The Companys people strategy focuses on attracting, developing and retaining skilled healthcare professionals while promoting a culture of collaboration, compassion, innovation and excellence. Through progressive HR practices and a supportive work environment, the Company promotes employee wellbeing, engagement and diversity while enabling individuals to contribute meaningfully towards improving patient outcomes and strengthening healthcare delivery.

As part of its commitment to society, the Company encourages active employee participation in community outreach programmes, healthcare awareness initiatives, disaster relief efforts and social responsibility activities. These initiatives reinforce the Companys purpose-driven culture while creating a positive impact across communities.

As of March 31, 2026, the Company had a workforce of over 22,413 professionals, including doctors, nurses, allied healthcare professionals, and outsourced staff. The growth of the workforce reflects the Companys growing healthcare network and ongoing investments in clinical excellence, operational capabilities and patient care.

The Company focuses on building an engaging workplace culture through continuous learning, employee recognition, leadership development and wellbeing initiatives. During the reporting year, it remained committed to creating an environment where employees can grow professionally while contributing to the delivery of quality healthcare services.

The Company continued to be recognised as a Great Place to Work? for its people-centric culture and commitment to employee experience. This recognition reflects the organisations focus on creating a workplace built on trust, collaboration, respect and shared purpose.

Aster prioritises strong internal financial controls to ensure the orderly and efficient conduct of its business, including adherence to Asters policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013, as amended from time to time. The internal control framework of Aster is designed to cater to

Asters diverse operations across various locations with varied size and complexity, ensuring consistency and efficiency across its operations, including changes in information technology and business processes, changes in key management, and acquisitions, mergers and divestments, if any. legal and regulatory developments such as changes in industry regulations and new regulatory reporting requirements. changes in the financial reporting framework, such as changes in accounting standards. The Internal Financial Control Framework promotes operational efficiency by optimising business processes and minimising waste and ensures accuracy and reliability of financial reporting, builds trust and transparency with investors and other stakeholders. The Managing Director and Chief Financial Officer (CFO) at Aster annually certifies the existence and maintenance of effective internal controls pertaining to financial reporting, within the Companys Corporate Governance report as per SEBI (LODR) Regulations, adding another layer of accountability and transparency.

Deloitte Haskins & Sells, the statutory auditors of Aster DM Healthcare Limited, has audited the financial statements included in this Integrated Annual Report, and as part of their audit, has issued their report on the Companys internal financial controls (as defined in Section 143 of Companies Act, 2013), on the effectiveness of our internal financial controls over Standalone and Consolidated Financial Statements as at 31 March 2026. Aster also has a comprehensive internal audit and internal financial control audit programme in place. This programme is managed by a dedicated internal audit team, supplemented by the expertise of an external risk management firm. The Audit Committee of the Board oversees the internal audit function, ensuring its independence and effectiveness. Internal auditors regularly update the Audit Committee through reports and presentations, keeping them informed about the state of the Companys internal controls. The Audit Committee approves an audit charter that defines the scope and authority of the internal audit function. Based on a thorough risk assessment, the internal audit team develops a plan to evaluate the design and effectiveness of internal controls across the organisation. This approach ensures that Asters internal controls are focused on mitigating the most significant risks facing the Company, providing the Board with greater assurance about the Companys overall financial health and risk management posture.

Certain statements in the Management Discussion and Analysis section pertaining to the Companys objectives, outlook, estimates and expectations may be considered forward looking statements, as defined under applicable laws and regulations. These are based on current assumptions, forecasts and internal and external information available at the time of reporting. However, actual results may differ materially due to various known and unknown risks, uncertainties and other factors beyond the Companys control, including but not limited to changes in the macroeconomic environment, industry dynamics, regulatory developments, legal proceedings and shifts in political or market conditions. These statements are based on current assumptions and available information. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based are also subject to change accordingly. These statements do not constitute guarantees of future performance and should not be relied upon excessively. The Company assumes no obligation to revise or update any forward-looking statements, whether because of new information, future events, or otherwise.

Strengthening Every

Relationship to Amplify Value

Sustainable growth is built on the strength of the relationships we nurture with those who influence and are influenced by our business.

We engage with our stakeholders to understand their evolving expectations, incorporate their perspectives into decision-making and foster mutual trust. These ongoing interactions provide valuable insights that inform our strategic priorities, strengthen risk management, enhance responsiveness to emerging challenges and enable us to create shared, long-term value for all.

To understand evolving healthcare needs, deliver safe, high-quality and patient-centric care, and continuously enhance clinical outcomes and service experiences. Engagement also helps us strengthen trust, improve accessibility and uphold the highest standards of patient safety and satisfaction.

To drive an inclusive, collaborative and high-performing workplace that supports professional growth, well-being and continuous learning. These interactions enable us to strengthen engagement, nurture leadership, align teams with organisational goals and empower our people to deliver excellence in care.

To build responsible, transparent and mutually beneficial relationships that ensure reliable supply, consistent quality and operational efficiency. Ongoing engagement also promotes ethical business practices, innovation and resilience across our value chain.

To maintain transparent and regular communication on our business strategy, financial performance and long-term growth priorities. These interactions also provide clarity on our governance and sustainability commitments, strengthening investor confidence and supporting informed decision-making.

To ensure compliance with applicable regulations, uphold the highest standards of clinical governance and contribute to the advancement of the healthcare ecosystem. Regular engagement enables us to remain aligned with evolving policies, regulatory expectations and industry best practices.

To understand local healthcare needs and create meaningful social impact through accessible healthcare, preventive health initiatives and community development programmes. Engagement helps us build lasting relationships, promote health awareness and contribute to the well-being of the communities we serve.

Prioritising What Matters Most

Understanding stakeholder expectations is fundamental to how we create long-term value.

We engage regularly with our key stakeholder groups to gain diverse perspectives that strengthen our decision-making and help us focus on the issues that matter most. These insights, combined with our strategic priorities, shape our Materiality Assessment and guide our approach to sustainable value creation.

Our assessment extends beyond stakeholder engagement to incorporate emerging environmental, social and governance considerations that are expected to shape the future of our business. This broader perspective enables us to address long-term risks and opportunities proactively while supporting responsible, resilient and sustainable growth.

Navigating Uncertainty to protect Long-Term Value

Risk is an inherent part of every business environment, but resilience lies in the ability to anticipate change before it becomes disruption. As markets evolve, technologies advance, regulations change and stakeholder expectations rise, organisations must continually reassess the risks and opportunities that shape long-term performance.

At Aster DM Healthcare, risk management is an integral part of the way we govern our business and make decisions. Rather than viewing risk solely as a potential challenge, we recognise it as an opportunity to strengthen our capabilities, enhance preparedness, and build a more agile organisation. By embedding risk awareness across our operations, we are better positioned to respond to change, safeguard stakeholder interests and pursue sustainable growth.

Our Enterprise Risk Management (ERM) framework provides a holistic and enterprise-wide approach to identifying, assessing, monitoring, and mitigating risks that could impact the achievement of our strategic objectives. Integrated into our business processes and governance framework, ERM enables proactive risk identification, timely de-risking and informed decision-making across the organisation. This holistic approach enhances organisational resilience, supports business continuity and reinforces our ability to create sustainable long-term value for all stakeholders by managing exposure down to an acceptable residual level.

Our risk governance framework is supported by clearly defined roles, responsibilities and accountability across the organisation. A structured governance mechanism, combined with robust oversight and cross-functional collaboration, ensures that risks are identified, evaluated, managed and monitored effectively, ensuring a strong culture of risk awareness and enabling consistent execution of our strategic priorities.

The rapid rise of telehealth, remote care and digital patient monitoring with the help of AI, is transforming how healthcare is delivered and consumed. This shift lowers the barrier for health-tech and digital-first entrants to compete for patient volumes traditionally served by hospitals, creating a risk that we lose market share and patient loyalty if we do not adapt our service delivery model and technology capabilities at the pace the market demands.

We are exposed to the risk of financial loss from delayed or non-payment by patients, insurance providers, government bodies and corporate clients. As a significant share of our revenue is billed and collected post delivering our care service, any deterioration in the creditworthiness or payment discipline of these counterparties directly exposes us to working capital strain and potential bad debt.

Our operations depend on seamless supply chains for critical medical equipment, pharmaceuticals, utilities and essential services. Any disruption to these supply chains, whether from geopolitical events, sustainability events (e.g. climate risk) vendor concentration or logistics failures, creates a risk of treatment delays, higher procurement costs and compromised quality of patient care.

Our reputation rests on trust, clinical excellence and patient-centric care. As healthcare decisions are highly trust-dependent, an unforeseen incident arising from human error, operational lapses or adverse publicity can disproportionately damage stakeholder confidence, creating a risk that extends well beyond the immediate incident to our broader brand and patient relationships.

Delivering consistent, high-quality care and ensuring patient safety are at the core of our purpose. Given the inherently high-stakes nature of clinical care, any lapse in clinical protocols, infection control or quality standards creates a direct risk to patient outcomes, regulatory standing and the trust that underpins our business.

Regulatory scrutiny of healthcare providers is intensifying, and we operate across multiple jurisdictions, each with its own statutory and regulatory requirements. This regulatory complexity creates a risk of inadvertent non-compliance, particularly as clinical, operational and financial norms continue to evolve.

We face risk from delays in responding to legal notices, contractual disputes or evolving healthcare laws across jurisdictions. Without timely, coordinated legal oversight, such matters can escalate into costly disputes or expose us to regulatory penalties.

We operate in a highly regulated environment and events such as natural disasters, pandemics or man-made incidents pose a serious threat to healthcare infrastructure. As our facilities provide critical, life-saving services, any disruption to operations creates a risk not only to business continuity but to patient safety and community trust.

Delivering world-class healthcare depends on attracting, developing and retaining a diverse, skilled workforce amid rising competition for specialised talent. Given the acute shortage of specialised clinical professionals in the market, any gap in our ability to attract or retain talent creates a risk to our service quality, capacity and growth plans.

Secure, seamless information flow is essential to patient-centric care. As we accelerate digital transformation across electronic medical records and telehealth, our growing digital footprint increases our exposure to cyber-attacks, data breaches and unauthorised access, creating risk to patient confidentiality, system availability and regulatory compliance.

Our operations use limited natural resources and generate environmental impacts such as emissions, biomedical waste and water usage. If these impacts are not responsibly managed, they create a risk of regulatory non-compliance, resource scarcity and contamination that could affect both our licence to operate and our standing with stakeholders.