Revenue.up Pre tax profit. up Post tax profit. up Dividends. Subscribers. up up to Kshs 47.4 Billion to Kshs 17.2 Billion 40.8% 3
Contents Board of Directors Chairman’s Report CEO’s Report Foundation Value Added Statement Directors’ Report Corporate Governa
Board of Directors 1 2 3 4 5 6 7 2 Safaricom Annual Report 2007
Board of Directors 1. Mr Nicholas Nganga – Chairman Mr Nganga joined the Board of Safaricom Ltd on 6 May 2004 and was elected C
Chairman’s Statement At Safaricom, we are committed to the highest level of corporate governance, which we consider critical to
Chairman’s Statement Safaricom also installed a Very Small Aperture Terminal (VSAT) base station in Mpeketoni, Lamu, to provide
CEO’s Report CEO’s Report We have delivered another year of robust performance against a background of increasing competition.
CEO’s Report To date, we have completed commercial power connections to over 300 BTS sites, totalling Ksh 350 million. We have
CEO’s Report include petrol stations, supermarkets, cyber cafés, and independent retailers. International Voice and Roaming Int
CEO’s Report Over the past year, we rolled out the Oracle Human Resource modules of our enterprise resource platform. This prov
Foundation CORPORATE SOCIAL RESPONSIBILITY A passion for the world around us At Safaricom, we have a passion for the world arou
Foundation A number of the targeted schools are off the national power grid. To enable them initiate the integration of ICT int
Value Added Statement Value added is the wealth created by Safaricom through the provision of mobile telephone services. Value
Directors’ Report Report of the Directors for the Year Ended 31 March 2007 The Directors have pleasure in presenting their repo
Corporate Governance Statement Introduction At Safaricom, we are committed to the highest level of corporate governance, which
Statement of Directors’ Responsibilities The Companies Act requires the directors to prepare financial statements for each financ
Telephone: +254-20-342330 Fax: +254-20-311482 email: cag@kenyaweb.com P.O. Box 30084 NAIROBI KENYA NATIONAL AUDIT OFFICE REPORT
Profit and loss account Notes Year ended 31 March 2007 2006 Ksh’000 Ksh’000 47,447,490 (18,155,340) 29,292,150 17,250 (1,389,83
Balance sheet Notes CAPITAL EMPLOYED Share capital Share premium Retained earnings Proposed dividends Shareholders’ funds Non-c
Statement of changes in equity Share capital Ksh’000 Year ended 31 March 2006 At start of year Profit for the year Dividends: -
Cash flow statement Notes Year ended 31 March 2007 2006 Ksh’000 Ksh’000 Operating activities Cash generated from operations Int
Notes 1 General information Safaricom Limited is incorporated in Kenya under the Companies Act as a private limited liability c
Notes continued Summary of significant accounting policies (continued) (c) Translation of foreign currencies Transactions are r
Notes continued Summary of significant accounting policies (continued) (h) Receivables Receivables are recognised initially at
Notes continued (l) Borrowings Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings
Notes continued 5 Analysis of sales by category 2007 Ksh’000 Revenue from services Revenue from sales of mobile phone handsets
Notes continued 8 Finance costs 2007 Ksh’000 Interest expense - bank borrowings Interest expense - medium term note Net foreign
Notes continued 11 Share capital Number of issued shares Ordinary shares Ksh’000 Share premium Ksh’000 Balance at 1 April 2005,
Notes continued 13 Borrowings(continued) Movement in borrowings 1.4.2006 Ksh’000 Bank borrowings Shareholders loans Total 5,016
Notes continued 14 Deferred income tax(continued) Deferred income tax assets and liabilities and deferred income tax charge/(cr
Notes continued 15 Property, plant and equipment (continued) Network infrastructure Ksh’000 Year ended 31 March 2007 Opening ne
Notes continued 18 Inventories 2007 Ksh’000 912,980 (251,235) 661,745 2006 Ksh’000 950,744 (150,000) 800,744 119,533 61,545 90,
Notes continued 21 Payables and accrued expenses 2007 Ksh’000 3,564,727 6,243,667 2,581,752 12,390,146 2006 Ksh’000 2,219,639 6
Notes continued 24 Cash generated from operations Reconciliation of profit before income tax to cash generated from operations:
Notes continued 2007 Ksh’000 177,466 2007 Ksh’000 450 1,479 1,929 e) Outstanding balances arising from sale and purchase of goo
Notice NOTICE is hereby given that the Annual General Meeting for the year 2007 of the Company will be held at the Company’s Bo
Proxy Form I/WE______________________________________________________________________ OF_______________________________________