Safaricom - 2021 Sustainable Business Report

12 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 //// STANDING TOGETHER: GOING BEYOND / OUR MATERIAL TOPICS / OUR STAKEHOLDERS / KPI SUMMARY DELIVERING A RESILIENT SET OF RESULTS AMID CRISIS While the pandemic has had serious adverse effects across the country, it has highlighted a key attribute in all of us: resilience. In April last year, we were anticipating an extremely difficult period ahead. However, despite the difficult circumstances, we found a way through adversity. We were pleased with the performance especially the recovery noted in the second half of the year. Our half year results showed a solid performance, with positive momentum leading to a recovery of service revenue. This provided an opportunity to give back to our shareholders and support them during the difficult economic times. Accordingly, we issued the first ever interim dividend at KSh 0.45 per share totalling KSh 18.029 billion. At year end, in addition to the interim dividend, the Board declared a dividend of KSh 0.92 per ordinary share amounting to KSh 36.86 billion which was approved during the company’s AGM. MARKING A MAJOR MILESTONE WITH THE LAUNCH OF 5G We’re proud to be the first operator in East Africa to launch 5G. With 5G, we aim to empower our customers with super-fast internet at work, at home and on the move, supplementing our growing fibre network. As Kenya’s economy continues to digitalise, we hope that our 5G network will play a key role in the country’s 4th Industrial Revolution, particularly in regard to the Internet of Things which has the power to transform education, health and manufacturing, among other things. A FUTURE-FIT SAFARICOM In October 2020, we celebrated 20 years of our existence during which we have witnessed great success. This success is not guaranteed in future if we don’t disrupt ourselves and transform our business into a future ready organisation. During the period under review, the Board approved a new strategic positioning that will move Safaricom from a telco business into a fully-fledged purpose-led technology company. This strategy will see us focus on new business areas such as agriculture, education, healthcare, next generation financial services, MSMEs and regional expansion amongst others. The Board is committed to supporting the management to see through the successful implementation if this strategy, We look forward to engaging with the relevant government functions to ensure awareness of this strategy and seek support in areas such as legislation, taxation, interpretation of laws, amongst others. The Board recognises the extent to which past actions, from across the different arms of government, have contributed to the growth and success of our organisation. Through our mutual commitment, we will continue investing in the success of this country. As we go into the future, we are optimistic on the opportunities as the management implements the new strategy of being a purpose- led technology company aligned with our nine priority United Nations Sustainable Development Goals. The Board will continue to work with the management to deliver value to our shareholders but most importantly, will work to ensure that Safaricom continues to transform the lives of our customers, employees, business partners and communities across Kenya as we connect them to the future and beyond. EXPANSION TO ETHIOPIA Shortly after year end, we were delighted with the announcement that the consortium led by Safaricom had won the bid for a telecommunications operator licence in Ethiopia. I am pleased with the outcome of this process which is a culmination of many months of work in putting together the bid and building a winning consortium of partners. I would like to extend my gratitude to the management team involved in this and the members of the consortium for the support accorded in this venture. THANKS The Board and I would like to extend our deep appreciation to the CEO, management, and all members of staff for their efforts and commitment during a challenging year in staying true to the purpose embedded in our DNA – that of transforming lives. Michael Joseph Chairman and Non-Executive Director Safaricom PLC “Our half year results showed a solid performance, with positive momentum leading to a recovery of service revenue. This provided an opportunity to give back to our shareholders and support them during the difficult economic times.”