SAFARICOM LIMITED - Welcome to RICH.CO.KE Ltd Abridged Annual Report.pdf · safaricom limited...

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SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014 ABRIDGED AND PUBLISHED IN ACCORDANCE WITH ARTICLE 145 OF THE COMPANY’S ARTICLES OF ASSOCIATION SAFARICOM LIMITED Kenya’s business environment has been characterised by changes to the VAT regime and legislative developments WKDW UHGHÀQHG VRPH HOHPHQWV RI RXU industry. At the macro-level, the economy grew by 4% and we witnessed a steady GROODU H[FKDQJH UDWH ZKLFK IRVWHUHG D FRQGXFLYH EXVLQHVV HQYLURQPHQW IRU WKH company. 2Q WKH JRYHUQDQFH IURQW WKH LPSDFW RI GHYROXWLRQ KDV VWDUWHG WR WDNH VKDSH We became involved in large-scale LQIUDVWUXFWXUH SURMHFWV ZKLFK VRPH FRXQWU\ governments had begun to implement. We noted sustained interest in Kenya as a EXVLQHVV KXE DQG GHVWLQDWLRQ IRU 3DQ$IULFDQ DQG LQWHUQDWLRQDO LQYHVWRUV :H believe that the new capital being channelled into the country will not only FUHDWH HPSOR\PHQW EXW RSHQ XS QHZ PDUNHWV IRU .HQ\D 7KH 6DIDULFRP VKDUH PDLQWDLQHG LWV XSZDUG PRPHQWXP ZLWK D GRXEOLQJ RI WKH VKDUH SULFH RYHU WKH ODVW \HDU 7KLV ZH EHOLHYH LV D YDOLGDWLRQ RI RXU EXVLQHVV VWUDWHJ\ 2XU GHGLFDWLRQ WR RXU VWUDWHJ\ KDV \LHOGHG D VWURQJ VHW RI ÀQDQFLDO UHVXOWV JHQHUDWHG VLJQLÀFDQW IUHH FDVK ÁRZ DQG LV FRQÀUPDWLRQ RI RXU FRPPLWPHQW WR JHQHUDWLQJ ORQJ WHUP YDOXH IRU DOO RXU VKDUHKROGHUV 7KH %RDUG UHFRPPHQGHG D GLYLGHQG RI FHQWV SHU VKDUH DQ LQFUHDVH RI 52%, totalling Kshs 18.83 billion. This is, once again, the largest dividend in Kenyan history. We continued to invest in the communities we operate in through various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ÀGHQW ZH ZLOO EH DEOH WR KDUQHVV QHZ RSSRUWXQLWLHV IRU JURZWK LQ WKH \HDU DKHDG Nicholas Nganga Chairman 6 August 2014 :H H[SHULHQFHG D \HDU RI VWURQJ SHUIRUPDQFH DFURVV RXU HQWLUH VHUYLFH SRUWIROLR 7KLV KDV HQDEOHG XV WR FRQWLQXH WR LQYHVW LQ RXU QHWZRUN DQG LQWURGXFH innovative products and services. &XVWRPHU VDWLVIDFWLRQ OHYHOV FRQWLQXHG WR LPSURYH DV HYLGHQFHG E\ KLJKHU XVDJH RI all our products and services. Our total revenue grew by 16% to Kshs ELOOLRQ DQG RXU FXVWRPHU EDVH JUHZ by 11%. Voice remained our predominant revenue stream and increased by 12% to .VKV ELOOLRQ ZKLOH QRQYRLFH VHUYLFH VWUHDPV DFFRXQWHG IRU RI WRWDO revenue. 03(6$ UHPDLQHG WKH NH\ GULYHU DQG JHQHUDWHG .VKV ELOOLRQ ZKLFK LV KDOI RI RXU QRQYRLFH VHUYLFH UHYHQXH 7KLV JURZWK ZDV GULYHQ SULPDULO\ E\ D LQFUHDVH LQ GD\ DFWLYH 03(6$ FXVWRPHUV DQG DQ LQFUHDVH LQ WKH DYHUDJH QXPEHU RI WUDQVDFWLRQV SHU FXVWRPHU 7KH 03(6$ DJHQW IRRWSULQW H[SDQGHG WR ZKLFK PDGH WKH VHUYLFH HYHQ PRUH DFFHVVLEOH WR RXU FXVWRPHUV :H DFKLHYHG \HW DQRWKHU PLOHVWRQH LQ GHHSHQLQJ ÀQDQFLDO LQFOXVLRQ ZLWK WKH ODXQFK RI Lipa na 03(6$ ZKLFK HQDEOHG FDVKOHVV PHUFKDQW SD\PHQWV DQG IDFLOLWDWHG WUDGH EHWZHHQ EXVLQHVVHV DQG WKHLU FXVWRPHUV ZKLOH LPSURYLQJ EXVLQHVV HIÀFLHQF\ ,Q WKH SHULRG XQGHU FRQVLGHUDWLRQ WKH PHUFKDQWV UHJLVWHUHG IRU WKH VHUYLFH DQG EHJDQ WR DFWLYHO\ XVH LW 0HVVDJLQJ UHYHQXH ZDV D VWDQGRXW SHUIRUPHU JURZLQJ DW WR .VKV ELOOLRQ :H FRQWLQXH WR EXFN WKH WUHQG LQ RWKHU SDUWV RI WKH ZRUOG ZKHUH LQVWDQW messaging services are eroding SMS business. Mobile data revenue grew by 41% supported by a 34% growth in customers to 9.6 million and an increased XSWDNH RI DIIRUGDEOH GDWD EXQGOHV 7KURXJK IDVWHU DGRSWLRQ RI VPDUWSKRQHV we now have 3.1 million customers using 3G enabled devices. Fixed data UHYHQXH JUHZ E\ WR .VKV ELOOLRQ RQ WKH EDFN RI LQFUHDVHG FXVWRPHU numbers and usage. )ROORZLQJ WKH LQLWLDWLRQ RI RXU %HVW 1HWZRUN LQ .HQ\D SURJUDPPH PRQWKV DJR ZH LQYHVWHG .VKV ELOOLRQ LQ LPSURYLQJ RXU QHWZRUN TXDOLW\ FDSDFLW\ DQG FRYHUDJH :H LQFUHDVHG WKH SRSXODWLRQ FRYHUDJH RI RXU * DQG * QHWZRUNV FRPSOHWHG QHWZRUN PRGHUQLVDWLRQ LQ VL[ NH\ FLWLHV DQG UROOHG RXW ÀEUH WR RI RXU EDVH VWDWLRQV LQ 1DLUREL 2XU UREXVW UHVXOWV FRXSOHG ZLWK FRVW HIÀFLHQF\ HQVXUHG YDOXH IRU RXU VKDUHKROGHUV DQG SXVKHG WKH (%,7'$ PDUJLQ XSZDUGV WR )UHH FDVK ÁRZ DOVR LQFUHDVHG E\ DV D UHVXOW RI RXU VWURQJ WUDGLQJ UHVXOWV DQG SRVLWLYH ZRUNLQJ FDSLWDO /RRNLQJ DKHDG RXU JRDO LV WR FRQWLQXH WUDQVIRUPLQJ WKH OLYHV RI RXU IHOORZ Kenyans by delighting our customers with great value and innovative products DQG VHUYLFHV GHHSHQLQJ ÀQDQFLDO LQFOXVLRQ JURZLQJ RXU PRELOH GDWD QHWZRUN EHFRPLQJ WKH SDUWQHU RI FKRLFH IRU EXVLQHVV DQG SXUVXLQJ %HVW 1HWZRUN LQ Kenya status. Robert Collymore CEO 6 August 2014 CHAIRMAN’S ABRIDGED COMMENTARY CEO’S ABRIDGED COMMENTARY

Transcript of SAFARICOM LIMITED - Welcome to RICH.CO.KE Ltd Abridged Annual Report.pdf · safaricom limited...

SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014ABRIDGED AND PUBLISHED IN ACCORDANCE WITH ARTICLE 145 OF THE COMPANY’S ARTICLES OF ASSOCIATION

SAFARICOM LIMITED

Kenya’s business environment has been characterised by changes to the VAT regime and legislative developments WKDW�UHGHÀQHG�VRPH�HOHPHQWV�RI�RXU�industry. At the macro-level, the economy grew by 4% and we witnessed a steady GROODU�H[FKDQJH�UDWH��ZKLFK�IRVWHUHG�D�FRQGXFLYH�EXVLQHVV�HQYLURQPHQW�IRU�WKH�company.

2Q�WKH�JRYHUQDQFH�IURQW��WKH�LPSDFW�RI�GHYROXWLRQ�KDV�VWDUWHG�WR�WDNH�VKDSH��We became involved in large-scale LQIUDVWUXFWXUH�SURMHFWV��ZKLFK�VRPH�FRXQWU\�governments had begun to implement.

We noted sustained interest in Kenya as a EXVLQHVV�KXE�DQG�GHVWLQDWLRQ�IRU�3DQ�$IULFDQ�DQG�LQWHUQDWLRQDO�LQYHVWRUV��:H�believe that the new capital being channelled into the country will not only FUHDWH�HPSOR\PHQW��EXW�RSHQ�XS�QHZ�PDUNHWV�IRU�.HQ\D�

7KH�6DIDULFRP�VKDUH�PDLQWDLQHG�LWV�XSZDUG�PRPHQWXP��ZLWK�D�GRXEOLQJ�RI�WKH�VKDUH�SULFH�RYHU�WKH�ODVW�\HDU��7KLV��ZH�EHOLHYH��LV�D�YDOLGDWLRQ�RI�RXU�EXVLQHVV�VWUDWHJ\��2XU�GHGLFDWLRQ�WR�RXU�VWUDWHJ\�KDV�\LHOGHG�D�VWURQJ�VHW�RI�ÀQDQFLDO�UHVXOWV��JHQHUDWHG�VLJQLÀFDQW�IUHH�FDVK�ÁRZ�DQG�LV�FRQÀUPDWLRQ�RI�RXU�FRPPLWPHQW�WR�JHQHUDWLQJ�ORQJ�WHUP�YDOXH�IRU�DOO�RXU�VKDUHKROGHUV��7KH�%RDUG�UHFRPPHQGHG�D�GLYLGHQG�RI����FHQWV�SHU�VKDUH��DQ�LQFUHDVH�RI�52%, totalling Kshs 18.83 billion. This is, once again, the largest dividend in Kenyan history.

We continued to invest in the communities we operate in through various FRUSRUDWH�VRFLDO�UHVSRQVLELOLW\�LQLWLDWLYHV��1RWDEO\��WKH�6DIDULFRP�)RXQGDWLRQ�PDUNHG�LWV���WK�DQQLYHUVDU\�LQ�$XJXVW������DQG�FHOHEUDWHG�WKH�GLVEXUVHPHQW�RI�DERXW�.VKV���ELOOLRQ�WR�RYHU�����FRPPXQLW\�GHYHORSPHQW�SURMHFWV�LQ�SDUWQHUVKLS�ZLWK�RYHU�����RUJDQLVDWLRQV��

$V�WKH�PDUNHW�OHDGHU�LQ�.HQ\D��ZH�DUH�LQ�D�VWURQJ�SRVLWLRQ�WR�OHYHUDJH�RXU�FDSDELOLWLHV�DQG�PHHW�WKH�HYHU�HYROYLQJ�QHHGV�RI�RXU�FXVWRPHUV��7KH\�DUH�ORRNLQJ�WR�XV�WR�GHOLYHU�QHZ�VHUYLFHV�DQG�SURYLGH�D�QHWZRUN�WKDW�DOORZV�WKHP�WR�IXOO\�SDUWLFLSDWH�LQ�WKH�QHZ�GLJLWDO�ZRUOG��:LWK�RXU�VWUDWHJ\�LQ�SODFH�DQG�RXU�FRPPLWPHQW�WR�WUDQVIRUPLQJ�OLYHV��ZH�DUH�FRQÀGHQW�ZH�ZLOO�EH�DEOH�WR�KDUQHVV�QHZ�RSSRUWXQLWLHV�IRU�JURZWK�LQ�WKH�\HDU�DKHDG�

Nicholas Nganga Chairman

6 August 2014

:H�H[SHULHQFHG�D�\HDU�RI�VWURQJ�SHUIRUPDQFH�DFURVV�RXU�HQWLUH�VHUYLFH�SRUWIROLR��7KLV�KDV�HQDEOHG�XV�WR�FRQWLQXH�WR�LQYHVW�LQ�RXU�QHWZRUN�DQG�LQWURGXFH�innovative products and services. &XVWRPHU�VDWLVIDFWLRQ�OHYHOV�FRQWLQXHG�WR�LPSURYH�DV�HYLGHQFHG�E\�KLJKHU�XVDJH�RI�all our products and services.

Our total revenue grew by 16% to Kshs �������ELOOLRQ�DQG�RXU�FXVWRPHU�EDVH�JUHZ�by 11%. Voice remained our predominant revenue stream and increased by 12% to .VKV�������ELOOLRQ��ZKLOH�QRQ�YRLFH�VHUYLFH�VWUHDPV�DFFRXQWHG�IRU�����RI�WRWDO�revenue.

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/RRNLQJ�DKHDG��RXU�JRDO�LV�WR�FRQWLQXH�WUDQVIRUPLQJ�WKH�OLYHV�RI�RXU�IHOORZ�Kenyans by delighting our customers with great value and innovative products DQG�VHUYLFHV��GHHSHQLQJ�ÀQDQFLDO�LQFOXVLRQ��JURZLQJ�RXU�PRELOH�GDWD�QHWZRUN��EHFRPLQJ�WKH�SDUWQHU�RI�FKRLFH�IRU�EXVLQHVV�DQG�SXUVXLQJ�%HVW�1HWZRUN�LQ�Kenya status.

Robert Collymore CEO

6 August 2014

CHAIRMAN’S ABRIDGED COMMENTARY

CEO’S ABRIDGED COMMENTARY

SAFARICOM LIMITED REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL STATEMENTS TO THE MEMBERS OF SAFARICOM LIMITED

REPORT ON THE SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

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DIRECTORS’ RESPONSIbILITIES FOR THE SUMMARY FINANCIAL STATEMENTS

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Notes 2014Shs’000

2013Shs’000

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SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014ABRIDGED AND PUBLISHED IN ACCORDANCE WITH ARTICLE 145 OF THE COMPANY’S ARTICLES OF ASSOCIATION

Safaricom Limited

Notes Attributable to owners of the Company

Share capital

Shs’000

Share premium

Shs’000

Retained earnings

Shs’000

Proposeddividends

Shs’000

Non-controlling interest

Shs’000

Total equity

Shs’000

Year ended 31 March 2013at start of year 2,000,000 1,850,000 59,940,584 8,800,000 (508,886) 72,081,698

3URÀW�DQG�WRWDO�FRPSUHKHQVLYH

����LQFRPH�IRU�WKH�\HDU - - 17,539,810 - - 17,539,810

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����VXEVLGLDU\ 19 (a) - - (1,065,266) - 508,886 (556,380)

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��)LQDO�IRU����� - - - (8,800,000) - (8,800,000)

��3URSRVHG�ÀQDO�IRU����� 14 - - (12,400,000) 12,400,000 - -

Total transactions with owners - - (12,400,000) 3,600,000 - (8,800,000)

$W�HQG�RI�\HDU� 2,000,000 1,850,000 64,015,128 12,400,000 - 80,265,128

Year ended 31 March 2014at start of year 2,000,000 1,850,000 64,015,128 12,400,000 - 80,265,128

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LQFRPH�IRU�WKH�\HDU - - 23,017,540 - - 23,017,540

,VVXH�RI�QHZ�VKDUHV 13 3,271 350,040 - - - 353,311

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��)LQDO�IRU����� 14 - - - (12,400,000) - (12,400,000)

��3URSRVHG�ÀQDO�IRU����� 14 - - (18,830,751) 18,830,751 - -

Total transactions with owners - - (18,830,751) 6,430,751 - (12,400,000 )

$W�HQG�RI�\HDU� 2,003,271 2,200,040 68,201,917 18,830,751 - 91,235,979

SUmmarY coNSoLidated StatemeNt of chaNgeS iN eqUitY