Statement of Comprehensive Income

FY14 FY15 FY16 FY17

Sh. '000' Sh. '000' Sh. '000' Sh. '000'
Voice revenue 84,316.00 87,368.00 90,802.00 93,459.00
M-PESA revenue 26,561.00 32,626.00 41,500.00 55,084.00
Mobile data revenue 9,314.00 14,823.00 21,154.00 29,328.00
Fixed data revenue 2,571.00 3,128.00 3,815.00 5,242.00
SMS revenue 13,620.00 15,671.00 17,328.00 16,679.00
Other service revenue 1,980.00 2,631.00 3,185.00 4,317.00
Service revenue 138,362.00 156,247.00 177,784.00 204,109.00
Handset and other revenue 6,312.00 7,117.00 8,621.00 8,700.00
Construction revenue - - 9,280.00 76.00
Total revenue 144,674.00 163,364.00 195,685.00 212,885.00
Other income 127.00 576.00 232.00 2,509.00
Direct costs (51,964.00) (56,709.00) (62,310.00) (66,782.00)
Construction costs - - (9,280.00) (76.00)
Contribution margin 92,837.00 107,231.00 124,327.00 148,536.00
Operating expenses (31,892.00) (36,040.00) (41,261.00) (44,928.00)
EBITDA 60,945.00 71,191.00 83,066.00 103,608.00
Depreciation & amortisation costs (25,787.00) (25,570.00) (27,943.00) (33,234.00)
EBIT 35,158.00 45,621.00 55,123.00 70,374.00
Net Finance costs -355 219 504 297
Net forex gain/ (loss) 168.00 206.00 398.00 (58.00)
Share of profit/(Loss) 15.00 (4.00) 104.00 19.00
Assets purchase bargain gain - 108.00 - -
Fair value loss on investment property - - (367.00) -
EBT 34,984.00 46,150.00 55,763.00 70,632.00
Taxation (11,967.00) (14,278.00) (17,658.00) (22,188.00)
Net Income 23,017.00 31,872.00 38,105.00 48,444.00

Earnings per share (Shs) 0.57 0.80 0.95 1.21

Free Cash flows (Shs mn) 22,692.00 27,524.00 30,360.00 43,515.00
Ordinary dividend (paid/proposed) (Sh 18,831.00 25,642.00 30,483.00 38,863.00
Ordinary dividend 0.47 0.64 0.76 0.97
Special dividends per share (Shs) 0.68
 FY18
Sh. '000'
95,639.00
62,907.00
36,357.00
6,673.00
17,721.00
5,237.00
224,534.00
8,980.00
202.00
233,716.00
510.00
(70,555.00)
(202.00)
163,469.00
(50,636.00)
112,833.00
(33,568.00)
79,265.00
659
(26.00)
10.00
-
-
79,909.00
(24,620.00)
55,289.00

1.38
55,387.00
44,409.00
1.10
 Safaricom Group
Statement of Financial Position
As at 31st March…
2013 2014
Sh. Sh.
Share Capital 2,000,000.00 2,003,271.00
Share premium 1,850,000.00 2,200,040.00
Retained earnings 64,015,128.00 68,201,917.00
Proposed dividend 12,400,000.00 18,830,751.00
Total equity 80,265,128.00 91,235,979.00

Non-current Liabilities
Payables and accrued expenses - -
Contract liabilities - -
Lease laibility - -
Borrowings 12,000,000.00 5,102,380.00
Total non-current liabilities 12,000,000.00 5,102,380.00
Total Equity & non-current liabilities 104,265,128.00 101,440,739.00

Non-current assets
Deferred income tax 2,553,665.00 2,750,879.00
Property, plant and equipment 95,296,398.00 97,710,542.00
Right of use asset - -
Indefeasible rights of use 4,006,681.00 4,855,097
Investment property
Intangible assets 1,641,162.00 945,573.00
Investment in subsidiaries
Investment in associate - 15,860.00
Prepaid operating lease rentals 2,227.00 1,527.00
Contract assets - -
Restricted cash
Deferred restricted cash asset
103,500,133.00 106,279,478
Current assets
Inventories 2,234,294.00 2,955,967.00
Receivables and prepayments 8,124,808.00 7,746,617.00
Contract assets
Restricted cash - -
Cash & cash equivalents 14,996,922.00 17,618,884.00
Other financial assets
Income tax - -
25,356,024.00 28,321,468
Current Liabilities
Payables & accrued expenses 27,825,322.00 29,473,060.00
Provisions - -
Current income tax 537,749.00 1,276,527.00
Lease Liability - -
Dividends payable - -
Contract liabilities - -
Borrowings 8,227,958.00 7,513,000.00
36,591,029.00 38,262,587
Net current liabilities (11,235,005.00) -9,941,119
92,265,128.00 96,338,359
 2015 2016 2017 2018 2019 2020
Sh. Sh. Sh. '000' Sh. '000' Sh. '000' Sh. '000'
2,003,271.00 2,003,271.00 2,003.00 2,003.00 2,003.30 2,003.30
2,200,040.00 2,200,040.00 2,200.00 2,200.00 2,200.00 2,200.00
74,431,346.00 82,052,204.00 64,422.00 75,640.00 65,218.90 82,785.20
25,641,874.00 30,483,432.00 38,863.00 44,071.00 74,922.40 56,091.60
104,276,531.00 116,738,947.00 107,488.00 123,914.00 144,344.60 143,080.10

- - - - 1,131.00 985.4
- - - - 739.5 983.4
- - - - 0 11,675.30
- - - -
- - - - 1,870.50 13,644.10
104,276,531.00 116,738,947.00 107,488.00 123,914.00 146,215.10 156,724.20

1,666,417.00 1,420,309.00 1,946.00 2,160.00 1,602.90 1,104.70

107,756,919.00 113,419,398.00 117,199.00 121,709.00 125,217.80 129,337.20
- - - - 0.00 15,242.90
4,848,505.00 4,500,334.00 4,155.00 3,854.00 3,553.10 3,252.10
- 845,000.00 845.00 845.00 845 845
10,082,411.00 8,940,618.00 10,115.00 8,756.00 7,385.40 6026.2
- - 0 0
11,819.00 115,908.00 135.00 145.00 150.3 4,965.10
1,002.00 477.00 1.00 45.00 56.8 0
- - - - 964.5 881.7
1,338.00 1,584.00 1845.5 1,911.70
793.00 879.00 895.5 836.1
124,367,073.00 129,242,044.00 136,527.00 139,977.00 142,516.80 164,402.70

8,258,601.00 816,393.00 1,371.00 1,605.00 1,774.60 1859.4

10,301,643.00 20,622,992.00 17,835.00 15,857.00 18126.3 17,190.30
1984.6 2,563.80
2,113,938.00 2,391,563.00 - -
11,916,371.00 6,109,493.00 5,956.00 9,497.00 20030.1 26,759.70
8,043.00 188.60
- - - 503.00 0 260.4
32,590,553.00 29,940,441.00 25,162.00 27,462.00 49,958.60 48,822.20
 41,423,899.00 40,068,982.00 33,805.00 35,313.00 28,703.90 29920.1
- - 2,766.00 4,028.00 3,893.50 4,462.30
617,216.00 2,374,556.00 1,086.00 144.00 351.3 112.9
- - - - - 3549.4
- - - - - 1045.1
- - - - 9,279.60 9,410.90
10,149,218.00 - 16,544.00 4,040.00 4,032.00 8000
52,190,333.00 42,443,538.00 54,201.00 43,525.00 46,260.30 56,500.70
(19,599,780.00) (12,503,097.00) (29,039.00) (16,063.00) 3,698.30 (7,678.50)
104,767,293.00 116,738,947.00 107,488.00 123,914.00 146,215.10 156,724.20
 FY14 FY15 FY16 FY17
Sh. Sh. Sh. Sh. '000'
Current ratio= Current assets 28,321,468 32,590,553 29,940,441 25,162
Current Liabilities 38,262,587 52,190,333 42,443,538 54,201
0.7402 0.6245 0.7054 0.4642
The current ratio is decreasing and increasing over time and therefore not constant. The ratio is also below 2:1.
This means that the ability of Safaricom to meet current obligations from the current assets is not sufficient.
However, the low current ratio could be due to the high amounts of bonga points that have not been redeemed.

Quick ratio= Cash

 FY18
Sh. '000'
27,462
43,525
0.6309
nt. The ratio is also below 2:1.
ent assets is not sufficient.
that have not been redeemed.
 FY14 FY15 FY16
Sh. Sh. Sh.

Inventory turnover= Cost of Goods Sold 51,964,000.00 56,709,000.00 71,590,000.00

Avearge inventory 2,595,130.50 5,607,284.00 4,537,497.00
20.02 10.11 15.78

Days Inventory= 365 days 365 365 365

Inventory turnover 20.02 10.11 15.78
18.23 36.09 23.13

Inventory turnover has been declining from 2014 to 2016 implying that the efficiency with which the company is converting in
cost of goods sold is reducing. The numbers have also reduced from 2014 to 2016 implying that the company is taking longer
This may lead to obsolete stocks
 FY17 FY18
Sh. '000' Sh. '000'

66,858.00 70,757.00 -
408,882.00 1,488.00
0.16 47.55

365 365
0.16 47.55
2232.22 7.68

h the company is converting inventory to

t the company is taking longer to sell its inventory.
 FY14 FY15 FY16 FY17
Sh. Sh. Sh. Sh. '000'

Gross profit margin= Gross Profit. 92,710.00 106,655.00 124,095.00 146,027.00

Sales 144,674.00 163,364.00 195,685.00 212,885.00
0.64082 0.65287 0.63416 0.68594

The Gross profit margin ratio has been stable with a slight increase and decrease over the years.
This means that Safaricom has been consistent in managing the production costs.
 FY18
Sh. '000'

162,959.00
233,716.00
0.69725
 FY14 FY15 FY16 FY17
Sh. Sh. Sh. Sh. '000'
Debt:Equity ratio= Total Debt 43,364,967.00 52,190,333.00 42,443,538.00 54,201.00
Total net assets 91,235,979.00 104,276,531.00 116,738,947.00 107,488.00
48% 50% 36% 50%

Interest Cover= PBIT 35,158.00 45,621.00 55,123.00 70,374.00

Interest paid 355 219 504 297
99.04 208.32 109.37 236.95

Safaricom is a low geared company

It has a vey high interest cover ratio implying that it is genearting sufficient revenues to cover the interest paid
 FY18
Sh. '000'
43,525.00
123,914.00
35%

79,265.00
659
120.28