2019 Sustainable Business Report

SAFARICOM SUSTAINABLE BUSINESS REPORT 2019 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT CONCLUDING REMARKS 22 TRUE VALUE ASSESSMENT We continually track whether we are successfully improving quality of life and contributing towards a sustainable livelihood for people throughout Kenya. Guided by a structured impact modelling tool, we are able to conduct holistic assessments and build a foundation from which to explore inclusive solutions to further increase the value we create for society. The KPMG “True Value” methodology allows us to quantify the significant indirect value contribution we make to the Kenyan economy, society and environment. By examining the positive and negative impact of the organisation on society, the environment and the economy in monetary terms, we are able to highlight how much actual value we contribute to Kenya and its people. The following is an independent analysis of our True Earnings by KPMG. SOCIAL EXTERNALITIES 213,476.4 4,899.3 M-PESA Social Value Social Value of Jobs 3,198.1 Strategic Social Investments (73.3) Health & Safety EARNINGS ECONOMIC VALUE-ADD Revenue 250,283.0 Cost (187,792.0) 62,491.0 Profit Economic Value Added Operations 336,977.1 11,726.0 Economic Value Added Capex (31,101.2) True Value created : 9.6 times profit Corruption IMPACT ON SOCIETY PROFIT TRUE VALUE 9.6 x The True Value assessment calculates that we sustained over 187,756 direct and indirect jobs during the year and, if the wider effects on the economy are included, this number increases to over 978,633 jobs . All figures in KSh million