What are Shareholders’ needs and expectations of us?

Our shareholders expect us to remain a high-performing company that balances delivering consistent and sustainable financial returns against ethical and environmentally responsible operation. As a reflection of this, they expect us to retain our experienced, proven management team and to uphold the very highest standards of corporate governance and practices. In terms of the exchange of information and ideas that also underpins shareholder trust and fosters commitment, they expect:

• Timely and accurate financial information;
• Explanations of our business model and strategy for creating long-term value;
• Updates on management expectations regarding changes in macro and micro environments;
• Updates regarding changes in the competitive and regulatory landscapes;
• Consistent and sustainable financial performance; and
• Experienced management and strong corporate governance practices.

We deliver value to our shareholders through our strong financial performance and through how we engage and
communicate with them.

Financial performance

We delivered strong financial performance in the current year, which has resulted in dividend growth and share appreciation:

• Achieving an EBITDA of KSH 71.2bn, up 17% from the prior year
• Achieving a 38% increase in net income (increase to KSH 31.9bn)
• Proposing a dividend per share of KSH 0.64, which is 36% higher than last year
• Increasing our free cash flow by 21% to KSH 27.5bn

This strong financial performance is the result of Safaricom successfully implementing its strategy to grow revenue while controlling costs (please refer to the Annual Report for more details).