2019 Sustainable Business Report

SAFARICOM SUSTAINABLE BUSINESS REPORT 2019 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT CONCLUDING REMARKS 23 We remain committed to our purpose of transforming lives. Our latest True Value Report indicates that the value to Kenyan society created by Safaricom increased by 11 per cent to KSh 601 billion , 9.6 times the financial profit the company earned during the same period, and we contributed a total of 6.3 per cent * to the gross domestic product (GDP) of the country. We continue to leverage the power of mobile technology to deliver shared value propositions that disrupt inefficiencies and impact lives positively in the health, agriculture and education sectors. *This figure is based on the direct, indirect and induced economic impact of Safaricom (calculated using the Kenyan national economic impact assessment model) and the average estimated Kenyan GDP sourced from the Kenyan National Bureau of Statistics website https://www.knbs.or.ke/ Definitions True Value: A three-step methodology that enables companies to (i) assess their ‘true’ earnings including externalities, (ii) understand future earnings at risk and (iii) develop business cases that create both corporate and societal value. True Earnings: The first step of the True Value methodology, which quantifies and monetises the material externalities of a company. Total Economic Value: The nature and magnitude of the contribution to the Kenyan economy made by Safaricom. Induced economic impact: Our operational and capital expenditure will stimulate additional employment and benefit the employees of our suppliers. A share of the additional income generated in this way will be spent on the consumption of goods and services, which, through linkages and multiplier effects, will benefit the broader economy by stimulating additional demand for the products and services produced within that economy. (68.3) (344.0) 601,181.2 ENVIRONMENTAL EXTERNALITIES TRUE EARNINGS Water Carbon Emissions True Earnings Source: KPMG 2019, KPMG True Valuse Case Study – Safaricom Ltd