2022 Sustainable Business Report

97 PARTNERING FOR GROWTH: TRANSFORMING LIVES | KPI SUMMARY OUR MATERIAL TOPICS OUR BUSINESS OUR STAKEHOLDERS PROFILING OUR SHAREHOLDERS As indicated in the table below, foreign corporates' shareholding of the free float declined from 45.6% to 43.7%. This is attributable to several factors, including foreign investor sell-off in emerging markets, uncertainty about the upcoming August general elections, depreciation of the Kenyan Shilling, rising interest rates in developed markets and investor jitters about the Russia/Ukraine crisis. Domestic investors have been supporting the stock amidst the foreign investor sell-off. Following increased engagement with local funds, the local corporate share of the free float increased from 39.4% to 41.2%. % BREAKDOWN OF SHAREHOLDERS FY19 FY20 FY21 FY22 Vodacom 35% 35% 35% 35% Vodafone 5% 5% 5% 5% Government of Kenya 35% 35% 35% 35% Free float 25% 25% 25% 25% PROPORTION OF ‘FREE FLOAT’ SHAREHOLDERS (%) BY CATEGORY FY19 FY20 FY21 FY22 Foreign corporate 45.1 44.7 45.6 43.7 Local corporate 39.0 39.7 39.4 41.2 Local individual 15.5 15.3 14.6 14.8 Foreign individual 0.4 0.4 0.4 0.4 BUILDING TRUST Recognising that trust is underpinned by transparency, we work hard to build legitimacy with our shareholders through transparent information that addresses their concerns. Retail investors’ major concerns are the amount and timing of dividend payments. In FY22, we paid an interim dividend of KSh 0.64 per share amounting to KSh 25.64 billion (2021: KSh 18.03 billion) and a final dividend of KSh 0.75 per share, amounting to KSh 30.04 billion. These dividends were approved by shareholders after year end. This brought the total dividends for the year to KSh 55.69 billion (2021: KSh 54.89 billion), representing KSh 1.39 per share for the financial year ended 31 March 2022 (2021: KSh 1.37 per share). We continue to liaise closely with our company registrar, Image Registrars and the dividend disbursing bank to ensure timely dividend payments. Analysts and investment funds want information that enables more accurate valuation of the Ethiopian business. We have responded to institutional investors’ concerns by enhancing disclosures related to the expansion and giving investors greater levels of visibility into M-PESA operations. SHAREHOLDERS OUR HIGHLIGHTS • Evaluation of our Environmental, Social and Governance (ESG) performance by S&P Global. • KSh 55.69bn in dividends (2021: KSh 54.89bn) ISSUES FOR INVESTORS • Institutional investors are increasingly focused on ESG issues. Other areas of focus for this investor group include the evolution and future of M-PESA, accurate valuation of the Ethiopian business, traction in new growth areas, the regulatory environment and the company’s strategy as we transition into a technology company by 2025. • Retail investors are concerned about the amount and timing of dividend payments. For further information about our financial performance in FY22, please refer to https://www.safaricom.co.ke/investor-relations.