2019 Sustainable Business Report

SAFARICOM SUSTAINABLE BUSINESS REPORT 2019 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT CONCLUDING REMARKS 81 WHAT IS IMPORTANT TO OUR SHAREHOLDERS? We have changed the way we interact and engage with shareholders. We have sharpened the focus of our Investor Relations (IR) department and ensure that our website and dashboard remain up to date with information relevant to our investors. All queries directed to the investor relations desk are addressed within 24 hours, while those requiring further input are completed within 48 hours. We also sustain engagement with institutional investors through conferences; local and overseas roadshows (where we present annual and interim earnings releases, and update stakeholders on our way forward); and email correspondence. Based on feedback received from these engagements, the following are their primary areas of interest: • Governance, including Board composition and remuneration • Carbon emissions and carbon reduction strategies • Internal policies, including - data protection policy - AML - whistleblowing - anti-bribery and corruption policy - energy efficiency policy - workplace diversity policy - labour training and development activities - health and safety practices • Environmental, social and governance (ESG) strategy • Risks and opportunities related to sustainability • Integration of the UN SDGs • Reporting and monitoring of carbon and greenhouse emissions • Shareholding and composition of the company Customer relationship management solutions from Bloomberg support our scouting initiatives. The IR team has onboarded Chorus Call, a teleconferencing service, to handle conferencing sessions for annual and interim results announcements. Investor conference calls take place several times a year between management, IR, investors and fund managers, and transcripts and recordings of these calls are available to all parties. CREATING VALUE FOR OUR SHAREHOLDERS Our Board remains committed to investing in the business and maintaining our strong record for paying progressive dividends each year. The proposed dividend for the financial year is KSh 50.1 billion, an increase of 13.6 per cent year-on-year. Given the strong position of the balance sheet, we were also happy to propose a special dividend of KSh 24.8 billion for the year under review. We are pleased with the strong results we have delivered for the year, building on our long track record of consistent delivery, protecting shareholder value and putting the customer first, and we anticipate continued growth in the future. Our financial outlook for 2020 reflects the adoption of the International Financial Reporting Standards (IFRS) 15 and IFRS 16 accounting standards guidance for EBIT moving from KSh 89 billion to KSh 93-97 billion, with Capex remaining within the KSh 36-38 billion range.