Safaricom Plc · NSEKE:SCOM
Safaricom — FY2021 Earnings Presentation
23 slides from Safaricom's earnings presentation, May 13, 2021
Slide 1: Safaricom PLC FY21 Investor Presentation
Safaricom PLC FY21 Investor Presentation 13th May 2021
Slide 2: Disclaimer
DISCLAIMER The following presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or its contents. This presentation does not
Slide 3: Operating Environment: Pandemic, Recession and Recovery
Operating Environment: Pandemic, Recession and Recovery HEADWINDS Shilling depreciation, Introduced turnover tax, Roll back of tax relief measures Third wave of COVID-19, Re-instated restrictions Sustained pressure on shrinking consumer wallet TAILWINDS Improving macro-economic performance COVID-19
Slide 4: Transforming Into A Technology Company: Powering Digital Lifestyles
Transforming Into A Technology Company: Powering Digital Lifestyles Agriculture Education Connecting people Healthcare to people, knowledge and Financial opportunities Services SMEs/MSMEs Regional Expansion 04
Slide 5: Commitment to Our Purpose: Transforming Lives
Commitment to Our Purpose: Transforming Lives Community Governance and People • Education, health and • 34% Women in leadership empowerment programmes • 2.4% People With impacting +1.6Mn beneficiaries Disabilities (PWDs) • Ndoto Zetu initiatives • 25% Women in technology +1.1Mn beneficiaries, +330 p
Slide 6: Our Performance: Strong Operational and Commercial Momentum in H2
Our Performance: Strong Operational and Commercial Momentum in H2 Results Reinvigorating Our Business • Customers growth Response • Service revenue recovery Building resilience in a • Permanent double bandwidth on fibre disruptive period connections • Interim dividend • *Free fees for M-PESA transac
Slide 7: Delivering Our Strategy: Towards a Customer-Obsessed, Digital-First Organization
Delivering Our Strategy: Towards a Customer-Obsessed, Digital-First Organization Strengthening the Core Enhanced Financial Services Winning in Digital Ecosystems Achieve Cost Leadership Market share growth Enhancing customer experience DigiFarm • Drive a cost optimization journey to fuel • 69.2% Voi
Slide 8: Strategic Focus: Digital Transformation Enablers
Strategic Focus: Digital Transformation Enablers M&A and Ecosystem Partnerships • M-PESA Africa JV • Facebook and Google for Device Financing • Submission of bid for telco license in Ethiopia People Customer Obsession Spirit Network and IT • Transforming into an • Enhance network coverage: 5G trial
Slide 9: Underlying Commercial KPIs: Continued Improvement
Underlying Commercial KPIs: Continued Improvement Minutes of Use per Subscriber Average GBs per chargeable M-PESA Vol (Bns) user 6.6 169.1 5.1 133.8 1.5 4.5 126.4 1.3 1.2 H2 FY20 H1 FY21 H2 FY21 H2 FY20 H1 FY21 H2 FY21 H2 FY20 H1 FY21 H2 FY21 One month active chargeable One month active M-PESA One m
Slide 10: FY21 Guidance: Earnings Outperform Guidance
FY21 Guidance: Earnings Outperform Guidance EBIT FY21 Capex FY21 Guidance Achieved Guidance Achieved KShs KShs KShs KShs 91 - 94 Bn 96.16 Bn 35 - 38 Bn 34.96 Bn 10
Slide 11: The Numbers
Qe The Numbers Zanes 7 Safaricom |
Slide 12: FY21 Key Highlights: Solid Performance in H2 Driving Recovery
FY21 Key Highlights: Solid Performance in H2 Driving Recovery Service Revenue EBIT -0.3% YoY FY21 -5.3% YoY FY21 H1 FY21 H2 FY21 H1 FY21 H2 FY21 KShs 118.41 Bn KShs 131.95 Bn KShs 44.97 Bn KShs 51.20 Bn -4.8% YoY +4.0% YoY -10.5% YoY -0.1% YoY Customers One month active +9.9% YoY 31.45 Mn FY21 28.63
Slide 13: FY21 Service Revenue: Growth in Customers and Usage Driving Recovery
FY21 Service Revenue: Growth in Customers and Usage Driving Recovery Contribution to Service Revenue Growth (KShs Bn) Evolution of Service Revenue Profile** 1.1 251.2 4.6 250.4 Others Others 15.0% 14.7% M-PESA (1.8) (0.9) 33.0% FTTH M-PESA FTTH (4.0) 0.9% 33.6% 1.4% M-PESA Profile Mobile Mobile H1 FY2
Slide 14: M-PESA: Regaining Momentum with Return to Charging
M-PESA: Regaining Momentum with Return to Charging Contribution to M-PESA Revenue (KShs Bn) 84.4 1.9 82.6 0.5 1.1 0.7 (4.2) (1.7) Transfers Revenue (KShs Bn) Payments Revenue (KShs Bn) 14.2 14.5 7.3 7.3 9.6 5.5 FY20 Transfers Payments Betting Withdrawals IMT Lending & FY21 H2 FY20 H1 FY21 H2 FY21 H2
Slide 15: M-PESA: Sustained Velocity Driven by Changes in Behaviour
M-PESA: Sustained Velocity Driven by Changes in Behaviour Contribution to M-PESA Value (KShs Trn) Contribution to M-PESA Volume (Bn) 2.43 22.04 0.02 0.08 0.01 0.42 11.68 3.14 0.09 0.12 0.94 1.16 0.96 9.00 0.05 1.37 13.94 FY20 Deposits Transfers Payments Betting & IMT Non- FY21 FY20 Deposits Transfer
Slide 16: Mobile Data: Propositions that Unlock Value Driving Customer Usage
Mobile Data: Propositions that Unlock Value Driving Customer Usage Mobile Data Revenue (KShs Bn) Opportunity to drive usage and growth +9.9% YoY 22.6 +11.5% YoY 31.5 22.2 FY21 28.6 30.3 +12.4% YoY 16.7 15.7 +19.6% YoY 14.9 20.7 10.8 +39.8% YoY 9.1 9.9 8.5 +31.1% YoY 6.1 7.1 5.4 6.1 4.7 One month Dis
Slide 17: Fixed Service: Solid FTTH Performance with Working and Schooling from Home
Fixed Service: Solid FTTH Performance with Working and Schooling from Home FTTH 119.1 137.4 2,471 104.5 Contribution to Fixed Revenue Growth (KShs Bn) 2,337 2,278 1.1 0.1 9.5 58.5% 9.0 53.5% Conversion (0.1) (0.6) 42.9% Conversion rate Conversion rate rate H2 FY20 H1 FY21 H2 FY21 Closing customers (
Slide 18: EBIT: Focus on Achieving Cost Leadership
EBIT: Focus on Achieving Cost Leadership FY21 EBIT (KShs Bn) Opex YoY Growth vs Opex Intensity 101.5 6.9 96.2 21.7% 21.5% 18.2% (5.0) 17.0% (0.9) (1.9) 0.8 (0.8) 10.0%* (1.4) (3.1) 5.8% FY18 FY19 FY20 FY21 -3.2% - 4.9% FY20 Contribution Covid Payroll Forex Depreciation Nopex Other Opex Opex FY21 Ope
Slide 19: CAPEX: Sustained Investment to Enhance Customer Digital Experience
CAPEX: Sustained Investment to Enhance Customer Digital Experience FY21 Capex Split Capex (KShs Bn) Operations 36.3 37.3 2.7% 36.1 35.0 35.3 22.8 18.9 18.1 17.4 16.9 Radio Access 36.8% IT Capex 28.6% FY17 FY18 FY19 FY20 FY21 H1 FY +8.0 ppts YoY Capex Intensity 15.6% Core Network 14.9% 7.3% 13.8% FY2
Slide 20: FY21: Proposed Dividends
FY21: Proposed Dividends FY21 FY21 FY20 Interim Final Dividend Proposed Dividend KShs 56.09 Bn KShs 18.03 Bn KShs 36.86 Bn KShs 1.40 DPS KShs 0.45 DPS KShs 0.92 DPS FY21 KShs 54.89 Bn KShs 1.37 DPS 20
Slide 21: FY22 Guidance: Gaining Momentum for Growth
FY22 Guidance: Gaining Momentum for Growth EBIT Capex* FY21 FY22 FY21 FY22 KShs KShs KShs KShs 96.16 Bn 105 - 108 Bn 34.96 Bn 40 - 43 Bn 21 *Capex guidance excludes spectrum
Slide 22: Thank You
YEARS BEYOND £Sataricom | FAC) =] \e] > —~ ¢ ce] a om _
Slide 23: Simple * Transparent * Honest
Simple * Transparent * Honest FOR YOU BEYOND