Safaricom (SCOM) Investor presentation summary

Strategy and execution

• FY24 focus: scale tech solutions toward becoming a purpose-led technology company by end-2025; 2030 strategy work was underway for presentation at FY results.

• Execution progress included 49% agile adoption at Level 3 maturity, a Big Data Center of Excellence with 20 data engineers and 20 data scientists, and growth across Kenya mobile data, M-PESA, fixed and EBIT.

• Performance initiatives included 800 5G sites, 500k 5G devices on the network, credit and insurance launches, Safaricom Hook youth platform, and East Africa’s first device assembly facility.

• Kenya priorities: accelerate financial services, fixed, content and IoT/ICT; improve cost and productivity; expand AI and analytics; grow 4G device penetration through local assembly and financing.

Kenya outlook

• Medium-term ambitions: M-PESA double-digit growth, mobile connectivity high-single-digit growth, fixed double-digit growth, stable capex intensity and stable EBITDA margin.

• FY24 guidance: EBIT of KES 87-93Bn and CAPEX of KES 85-93Bn.

• Public-sector digitization included Hustler Fund, digital health, eCitizen, county systems and agricultural subsidies; as of Jan 2024, 5.5Mn farmers were targeted and KES 17Bn of fertilizer subsidy distributed.

Ethiopia market opportunity

• The market was positioned around a population of 120Mn, young demographics, GDP growth above 5% per year, low mobile-money penetration and low mobile and fixed data penetration.

• Telecom license awarded in July 2021; M-PESA license awarded in May 2023 and commercial launch followed in August 2023.

• GSM license cost USD 850Mn for 15 years, with potential for an additional 15 years; mobile financial services license included a USD 150Mn investment protection fee and ETB 50Mn paid-up capital.

• Regional execution reflects a diverse population and geography; the stated ambition was one federal headquarters and nine regional offices.