Safaricom Plc · NSEKE:SCOM
Safaricom — FY2025 Earnings Presentation
62 slides from Safaricom's earnings presentation, May 9, 2025
Slide 1: Safaricom Plc FY25 Investor Presentation
Safaricom Plc FY25 INVESTOR PRESENTATION 9th May 2025 C2 - Safaricom Internal
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: Agenda
Agenda 01 Brand & Purpose Update 02 Recap of the Past 5YR-Strategy Cycle 03 Vision 2030 Update 04 FY25 Operating Review Kenya & Ethiopia 05 FY25 Group Performance 06 Outlook & FY26 Guidance 3
Slide 4: Business Overview, Purpose & Strategy Update
Business Overview, Purpose & Strategy Update Dr. Peter Ndegwa, CBS Chief Executive Officer 4
Slide 5: Safaricom Kenya Brand & Purpose
01 Safaricom Kenya Brand & Purpose C2 - Safaricom Internal 5
Slide 6: M-PESA @18 | Revolutionizing Kenya's Financial Landscape
M-PESA @18 | Revolutionizing Kenya’s Financial Landscape Supporting Capacity to support Launched in +35Mn +200 55k Integrations, 4,500 transactions March 2007 Customers IMT Corridors +100k Developers per sec Driven Formal Financial >8% Contribution +1Mn p.a Jobs Sustained Inclusion to 84.8% in 2024
Slide 7: M-PESA @18 video
M-PESA @18 video C2 - Safaricom Internal 7
Slide 8: Our Awards & Recognitions in the Year
Our Awards & Recognitions in the Year Overall Marketing Company of Top Employer in Kenya the Year and Africa for the fourth PEOPLE BRAND year running Best Sports Marketing Campaign for Chapa Dimba Na Safaricom Awarded by The Top Employer Institute (TEI). Awarded by Marketing Society of Kenya Most In
Slide 9: Our Foundations | Invested KShs 18.4Bn, Impacting 13Mn Lives
Our Foundations| Invested KShs 18.4Bn, Impacting 13Mn Lives in the Past 5 Years Education Total Investment: KShs 12.4Bn Total Reach: 1.1Mn beneficiaries Health Total Investment: KShs 3.6Bn Total Reach: 10.3Mn beneficiaries Humanitarian Response Total Investment: KShs 0.8Bn Total Reach: 232k benefici
Slide 10: Our Culture | Beliefs and Behaviours Guiding Safaricom Spirit
Our Culture | Beliefs and Behaviours Guiding Safaricom Spirit PURPOSE CUSTOMER OBSESSION BELIEF – I am an extreme owner BELIEF – Our customers’ perception BEHAVIOUR – I step in to resolve the is their reality real issue for the best impact BEHAVIOUR – I feel and act on our OUR customers’ pai
Slide 11: Safaricom Group Strategy Recap; The Past Years
02 Safaricom Group Strategy Recap; The Past 5 Years C2 - Safaricom Internal 11
Slide 12: Our 5-Yr Strategy | Commercial Execution Over the Past 5 Years
OUR 5-YR Strategy| Commercial Execution over the Past 5 Years with Notable Outcomes Mobile Connectivity M-PESA/FS Value & Velocity – 3X Transaction value, 2X growth in mobile data revenue 4X volume,10.4X free transactions Stable voice business (58.4% growth in usage) Footprint acceleration (
Slide 13: Safaricom Group Vision 2030
03 Safaricom Group Vision 2030 C2 - Safaricom Internal 13
Slide 14: Vision 2030 | Group Strategy
Vision 2030 | Group Strategy 14 14
Slide 15: Vision 2030 | Six Big Priorities Over the Next 5 Years
Vision 2030 | Six Big Priorities Over the Next 5 Years CONSUMER ENTERPRISE • 4G+ device acceleration • Beyond connectivity • Always on safe secure • Segment led execution • Grow segmented & integrated propositions with embedded loyalty • Scale content & digital platforms FS/M-PESA PUBLIC SECTOR • Su
Slide 16: FY25 Operating Review Kenya
04 (a) FY25 Operating Review Kenya C2 - Safaricom Internal 16
Slide 17: Kenya Operating Environment | Stable Macros With Some Potential Risks
Kenya Operating Environment | Stable Macros With Some Potential Risks Macro Tailwinds & Headwinds Regulatory & Industry Customer Insights Tailwinds Tailwinds Tailwinds • GDP growth slowdown; +4.8% in 2025 (IMF) • Great support & collaboration with the • Declining food prices • Stable inflation rates
Slide 18: Current Shape of the Kenya Business
Current Shape of the Kenya Business #1 GSM Market Share* 98% 30% Population +23Mn covered Telecom operator in Kenya 66% 4G 5G by our network 4G+ Devices 37Mn 36Mn 1.9Mn+ 299k 694k 30-day Active 30-day Active M-PESA Merchants Active M-PESA Homes Customers M-PESA customers (Medium, small & micro) Agen
Slide 19: What We Delivered in FY25
What We Delivered in FY25 Strong Topline Growth TechCo Capabilities Purpose and Brand • Consumer business growth • Agile structure ramp up to 75% • @24 years celebrations above inflation of our business • M-PESA@18 • Double digit growth in FS • 2+1 skills transformation program • M-PESA Foundation@1
Slide 20: Consumer Business | Delivering for Our Customers, While Growing the Core
Consumer Business| Delivering for Our Customers, While Growing the Core Customer Integrated Accelerating Digital Segmentation Propositions 4G Penetration Content • Driving meaningful • All in one • Open market partnerships to • Driving engagement for connections, tailored • Make Your Bundle drive 4G
Slide 21: Financial Services | Beyond Consumer Payments
Financial Services| Beyond Consumer Payments, Delivering Value for the Underserved Payments Financial Services Digital Lifestyle Enabler • Business & Consumer payments • Ziidi (1.5Mn opt-ins) • Business & Consumer app activity powering growth of the core • Device insurance (411k Policies) growth • M
Slide 22: Enterprise Business & Public Sector | Digitisation Partner of Choice
Enterprise Business & Public Sector| The Digitisation Partner of Choice Public Sector Digital Transformation Enabled Government Revenue Collections, Universal Safaricom Grow Health Coverage & Deepening Financial Inclusion Business Brand Hustler Fund Inua Jamii - Government KShs 14.2Bn Cash Transfer
Slide 23: Fixed Business | Accelerating Connections & Enhancing Customer Experience
Fixed Business| Accelerating Connections & Enhancing Customer Experience Reach Experience Cost Optimization Accelerating Introduced the first ever 1000Mbps Through low-cost Broadband Penetration fibre solutions powered Driving delight and value by AI Expanded distribution to to customers large retai
Slide 24: FY25 Operating Review Ethiopia
04 (b) FY25 Operating Review Ethiopia C2 - Safaricom Internal 24
Slide 25: Ethiopia Operating Environment | Navigating Impact of FX Regime Reforms
Ethiopia Operating Environment | Navigating Impact of FX Regime Reforms Macro-Economic Regulatory/Industry Political/Security Resilient • Fundamentals as Reforms Take Root Industry Issues are Being Addressed Stable but Fragile • Easing Inflation; 13.6% in Mar 2025 • Mobile Termination Rate reduction
Slide 26: Community & Partnerships | Contributing to Ethiopia's Digital Future
Community & Partnerships | Contributing to Ethiopia’s Digital Future Education Partnerships Economic Empowerment • Donating laptops and routers • Partnerships with • Financial Inclusion for to identified high schools in Government Small farm owners different city regions and administrations • Empowe
Slide 27: FY25 Ethiopia Performance | Strong Commercial Momentum
FY25 Ethiopia Performance | Strong Commercial Momentum Customers M-PESA Network People 8.8Mn, 2.4Mn, +103.2% YoY +68.7% YoY 3,141 898 Sites Permanent Employees 90-day active- Total 90--day Active Customers 7.1Mn, 30-Day Active Sites Split 42k 95% 5% +155.1% YoY 1,718 1,423 Ethiopians Expats 90-day a
Slide 28: FY25 Group Performance Highlights
05 FY25 Group Performance Highlights C2 - Safaricom Internal 28
Slide 29: FY25 Performance | Outstanding Performance for the Group
FY25 Performance | Outstanding Performance for the Group Total Revenue EBIT Net Income* Safaricom +11.4% YoY +13.0% YoY +12.7% YoY Kenya KShs 381.2Bn KShs 158.1Bn KShs 95.5Bn Group Underlying Performance +12.9% YoY +16.9% YoY +14.2% YoY excluding impact of KShs 390.1Bn KShs 133.3Bn KShs 80.1Bn* Birr
Slide 30: Financial Performance Kenya & Ethiopia
Financial Performance Kenya & Ethiopia Dilip Pal Group Chief Financial Officer 30
Slide 31: Kenya Performance
05 (a) Kenya Performance C2 - Safaricom Internal 31
Slide 32: Customers | Growing Customer Base in All Segments
Customers | Growing Customer Base in All Segments Total Customers (Mn) M-PESA Customers (Mn) 37.1 35.8 +7.1% YoY +10.5% 35.3 33.5 YoY 34.6 +6.0% 32.4 +4.1% +4.6% YoY YoY +0.9% YoY YoY FY24 H1 FY25 FY25 FY24 H1 FY25 FY25 Connectivity customers (Mn) Fixed Data Customers ‘000s 36.7 371.3 329.0 308.0 +7
Slide 33: Service Revenue | Strong Growth Supported by M-PESA and Mobile Data
Service Revenue | Strong Growth Supported by M-PESA and Mobile Data Contribution to Service Revenue Profile Service Revenue (KShs Bn) 4.9%, Fixed 364.3 1.6 365.9 Data & IoT, KShs 329.8 18.0Bn, +10.5% +10.9% 44.2%, +12.9% YoY YoY YoY Financial +11.7% Services, YoY 186.8 KShs 161.1Bn, 177.5 FY25 +15.2
Slide 34: M-PESA | Strong Performance Driven by Consumer & Business Payments
M-PESA | Strong Performance Driven by Consumer & Business Payments Contribution to M-PESA Revenue M-PESA Volume (Bn)* 2.4%, Global 37.2 +29.5% Payments, 5.2%, Financial YoY KShs 3.9Bn, Services, KShs +12.1% YoY 8.4Bn, +5.7% YoY 28.7 15.5 +29.3% YoY Chargeable 12.0 30.2%, Business KShs Payments, 161.
Slide 35: M-PESA Growth Acceleration | Key Growth Drivers
M-PESA Growth Acceleration | Key Growth Drivers in the Ecosystem Customers (Mn) Merchants Revenue (KShs Bn) FY24 FY25 FY24 FY25 +44.2% +20.5% 1.8 +4.4% Acceleration +10.1% 9.8 Payments +81.7% 8.1 1.3 1.3 7.3 7.6 1.1 1.2 +6.8% +165.3% 0.6 0.7 0.6 2.2 0.8 LNM* Pochi* Total Merchants* IMT LNM* Pochi* T
Slide 36: M-PESA Acceleration | Credit Portfolio Recovery
M-PESA Acceleration | Credit Portfolio Recovery Supported by Growth in Customers Total Credit Customers (Mn) Total Values (KShs Trn) Total Revenue (KShs Bn) +21.4% +5.1% +17.4% Overall Credit* 8.1 Performance 2.2 7.7 13.1 12.8 1.9 +6.0% +18.1% +15.7% YoY 1.2 3.9 4.2 1.0 11.2 +26.7% -1.0% +9.3% +8.0%
Slide 37: M-PESA Super Apps | Lifestyle & Business Platform
M-PESA Super Apps | Positioning M-PESA as a Lifestyle & Business Platform of Choice Consumer Business App App Downloads 13.7Mn 1.3Mn Customers Merchants Active 4.7Mn, +29.5% YoY 301k, +111.5% YoY Value of KShs 2.3Trn, +16.1% YoY KShs 896.2Bn, +77.3% YoY transactions 37 37
Slide 38: Connectivity Business | Mobile Data Powers Connectivity Business
Connectivity Business | Mobile Data Powers Connectivity Business Connectivity Revenue Contribution Connectivity Business Revenue (KShs Bn) 185.2 Voice Mobile Data 173.9 43.6% 39.4% KShs 80.8Bn KShs 72.9Bn +6.2% +6.5% YoY YoY +1.6% YoY +15.2% YoY 91.3 93.9 +3.4% Messaging Mobile Incoming +9.8% YoY Yo
Slide 39: Mobile Data | Double Digit Growth Driven by Increased Usage
Mobile Data| Double Digit Growth Driven by Increased Usage Mobile Data Revenue (KShs Bn) Customers and 4G+ Devices continues to grow 72.9 +19.4% 63.2 +33.3% +15.2% 27.4 +18.0% YoY 24.7 22.9 23.4 YoY 20.1 37.3 +18.1% 17.5 35.6 +20.2% +10.9% 11.9 YoY YoY 10.0 10.9 FY24 H1 FY25 H2 FY25 FY25 Data custom
Slide 40: Fixed Service | Solid Growth Driven By Improved Value Propositions
Fixed Service | Solid Growth Driven By improved value Propositions and Engagements Fixed Service Revenue (KShs Bn) Customers (‘000) 17.1 301.5 Home Fixed 15.1 +12.9% 262.9 +12.0% YoY 248.6 +21.3% YoY YoY +17.8% +27.0% YoY 8.5 8.6 YoY +14.7% +11.3% YoY YoY FY24 H1 FY25 H2 FY25 FY25 FY24 H1 FY25 FY25
Slide 41: Costs | Navigating a Complex Operating Environment
Costs | Navigating a Complex Operating Environment With Addressable Opportunities Operating Costs (KShs Bn) Direct Costs (KShs Bn) 83.2 85.7 68.1 15.7% 59.5 15.7% 14.4% 13.3% 12.5% 11.0% 43.8 36.6 41.9 7.2% 31.5 7.6% 3.6% -0.1% 3.0% -0.7% FY24 H1 FY25 H2 FY25 FY25 FY24 H1 FY25 H2 FY25 FY25 Direct co
Slide 42: Free Cash Flow & Debt
Free Cash Flow & Debt | Healthy Net Debt to EBITDA Driven by Strong Cash Flow Free cashflow (KShs Bn) 89.9 Net Debt (KShs Bn) 76.1 +18.2% YoY +15.7% YoY 51.3 FY24 H1 FY25 FY25 +73.2% YoY Cash & Cash Equivalents 21.3 23.0 15.9 FY24 H1 FY25 FY25 Short term borrowings (39.8) (34.5) (39.5) Interest Cost
Slide 43: Kenya | Stellar Performance Supported by Great Strategy Execution
Kenya | Stellar Performance Supported by Great Strategy Execution Service Revenue EBITDA EBIT +10.5% YoY +10.1% YoY +13.0% YoY KShs 364.3Bn KShs 205.8Bn KShs 158.1Bn Net Income Operating Free Cash Flow +12.7% YoY +15.8% YoY KShs 95.5Bn KShs 148.9Bn 43 43
Slide 44: Financial KPIs | Improved Margins Over the Past 5 Years
Financial KPIs | Improved Margins Over the Past 5 Years FY20 FY23 FY25 Contribution Margin 70.8% 69.9% 71.8% EBITDA Margin 52.7% 51.9% 54.0% EBIT Margin 38.7% 37.6% 41.5% OPEX Intensity 18.2% 17.5% 17.9% CAPEX Intensity 13.7% 13.1% 13.7% ROCE 67.7% 65.0% 55.1% Net Debt to EBITDA - 0.35 0.31 44 44
Slide 45: Ethiopia Performance
05 (b) Ethiopia Performance C2 - Safaricom Internal 45
Slide 46: Customers | Accelerated Customer Growth Momentum in FY25
Customers | Accelerated Customer Growth Momentum in FY25 90-Day Active Customers (Mn) Overall Customers Mobile Data Voice 7.8 8.8 7.1 2.2x 2.0x 2.5x 5.2 YoY 6.1 4.9 YoY YoY 4.4 3.5 2.8 FY24 H1 FY25 FY25 FY24 H1 FY25 FY25 FY24 H1 FY25 FY25 Messaging 4.8 M-PESA 2.4 3.1 2.6x YoY 1.7x 1.4 1.2 YoY 1.8 FY
Slide 47: Usage & ARPU | Encouraging Usage as we Drive Higher Penetration
Usage & ARPU | Encouraging Usage as we Drive Higher Penetration Voice Mobile Data Messaging Minutes of Use per Sub Data GBs per User SMSs Per User 127.3 6.6 Usage* 6.5 18.5 97.2 1.8x 4.2 1.5x 17.9 70.6 YoY YoY 17.3 1.0x YoY FY24 H1 FY25 FY25 FY24 H1 FY25 FY25 FY24 H1 FY25 FY25 Voice Mobile Data Mess
Slide 48: Service Revenue | Solid Growth Driven by Mobile Data
Service Revenue | Solid Growth Driven by Mobile Data Service Revenue Growth Drivers (KShs Bn) Contribution to Service Revenue 0.2 0.1 8.9 0.4 2.8 4.6%, Others*, KShs 0.41Bn, +65.4% +119.3% YoY 5.4 YoY 4.9%, Mobile Incoming, KShs 0,43Bn, KShs 8.9Bn +30.2% YoY +65.4% FY24 Mobile Data Voice Others* Mob
Slide 49: Ethiopia | Funding & Capex Status
Ethiopia| Funding & Capex Status As at As at USD Mn 31 March 2025 31 March 2024 Equity 2,048* 1,626 5Yr CAPEX Local currency debt 105 134 Plan Shareholder loan 18 - USD 1.0 – 1.3Bn IFC debt 100 100 Spend to FY25 (4YR Capex) Total funding 2,270 1,860 USD 1.2Bn (4Yrs) Deferred vendor payables 194 301
Slide 50: Ethiopia | Improved Underlying Performance from Commercial Momentum
Ethiopia | Improved Underlying Performance from Commercial Momentum All numbers are in KShs FY25 Performance* Without Birr Reported FY24 Reported* Depreciation Impact Birr Depreciation EBITDA -8.8Bn -43.0Bn -21.4Bn Impact at Net Income Excluding Minority EBIT -24.9Bn -61.1Bn -45.0Bn Interest KShs 20
Slide 51: Safaricom Group Performance
05 (c) SAFARICOM GROUP PERFORMANCE C2 - Safaricom Internal 51
Slide 52: CAPEX | Sustained Investment to Support Expansion
CAPEX | Sustained Investment to Support Expansion in New Growth Areas Group CAPEX Evolution (KShs Bn) 96.1 93.5 91.3 Kenya Ethiopia* Group KShs 52.1Bn KShs 39.2Bn KShs 91.3Bn 55.8 52.1 +10.2% YoY -15.3% YoY -2.4% YoY 49.8 46.3 47.3 39.3 40.4 39.2 10.4 CAPEX Intensity 13.7% 416.6% 23.4% FY22 FY23 FY2
Slide 53: Group Net Income | Great Performance Despite Ethiopia Forex Impact
Group Net Income | Great Performance Despite Ethiopia Forex Impact 95.5 +12.7% 80.1 -15.4 YoY 10.2 69.8 +35.3% YoY 59.6 -20.5 +10.8% YoY +0.7% YoY FY25 Net Income ET Net Performance FY25 Group Birr Depreciation FY25 Group IAS 29 Impact* FY25 Group Kenya Excl. Birr Depreciation* Underlying Impact* Ne
Slide 54: Group | Resilient Performance For The Group
Group | Resilient Performance For The Group Group Kenya Group Reported Constant Currency* H1 FY25 H2 FY25 FY25 Service Revenue +10.5% +13.1% +8.7% +10.8% +12.2% EBIT +13.0% +1.8% +22.8% +29.5% +16.9% Net Income +12.7% -17.7% +44.6% +10.8% +14.2% Excluding Minority Interest *Group% YoY Constant Curre
Slide 55: FY25 Group Performance
FY25 Group Performance Safaricom Safaricom Safaricom Safaricom Safaricom Safaricom Group % YoY Constant Currency Kenya Ethiopia Plc Group Kenya Ethiopia Group (excl. IAS 29 & Birr (KShs Mn) (KShs Mn) (KShs Mn) % YoY % YoY % YoY Depreciation impact) Service Revenue 364,282.7 7,548.6 371,415.4 10.5% 3
Slide 56: Conclusion & FY26 Outlook
06 CONCLUSION & FY26 OUTLOOK C2 - Safaricom Internal 56
Slide 57: In Summary | Outstanding Performance in FY25
In Summary | Outstanding Performance in FY25 Kenya Ethiopia Group • Strong performance, with a solid exit as • Great results during a year marked • Solid Group performance as Ethiopia we transition to our next 5-year strategy by significant currency reforms. becomes a key contributor. cycle - Vision
Slide 58: FY26 | Strategic Priority Areas
FY26 | Strategic Priority Areas Drive delivery, Deliver frictionless, Accelerate path adoption and safe and secure to profitability in commercial scale digital first customer Ethiopia of Tech solutions experiences 3 1 2 Defend and grow Living our Enhance core market share Safaricom Spirit our cultur
Slide 59: Dividends | Sustained Dividend Despite Birr Depreciation
Dividends | Sustained Dividend Despite Birr Depreciation FY25 Dividends KShs 1.20 2023, 2024 & 2025 DPS, Peak at KShs 1.39 in 2022 Interim Final Proposed before entry into Ethiopia KShs 22.04Bn KShs 26.04Bn KShs 0.55 DPS KShs 0.65 DPS KShs 612.12Bn dividends paid to shareholders from FY08/09 to FY23
Slide 60: FY26 Guidance | Safaricom Kenya, Ethiopia & Group
FY26 Guidance | Safaricom Kenya, Ethiopia & Group All numbers are in KShs Bn and exclude hyperinflationary impact (IAS 29) Kenya Ethiopia* Group EBIT 170 - 173Bn (26) – (23)Bn 144 - 150Bn FY25 Actual 158.1Bn (61.1)Bn 97.1Bn Capex 54 - 57Bn 18 - 21Bn 72 - 78Bn FY25 Actual 52.1Bn 39.2Bn 91.3Bn *Ethiop
Slide 61: Corporate Information
Corporate Information Registrars Investor Relations Image Registrars Limited 5th Floor, Absa Plaza, Loita Street Safaricom House, Waiyaki Way, Westlands P.O. Box 928-00100, Nairobi P.O. Box 66827-00800, Nairobi Telephone: +254 709 170 000 Telephone: +254 722 00 6218/4233/4746 Email; Info@image.co.ke
Slide 62: Thank You!
Thank You! C2 - Safaricom Internal