Botswana Telecommunications Corporation Limited 2019 Annual Report 1 177 175 178 167 179 233 232 235 166 236 180 205

8. Proxy Form Proxy Notes to Proxy Statement of Changes of Statement in Equity AGM Notice of Board Approval of Annualthe Approval of Board Financial Statements General Information Financial of Statement Position Cash Flows of Statement the NotesFinancials to Analysis Shareholder Independent Auditor’s Independent Report 170 Loss or Profit of Statement Comprehensive and Other Income Accounting Policies ANNUAL FINANCIAL STATEMENTS 143 146 134 124 107 Compliance thewith Financial Review and Discussion Management Review Year Ten FINANCIAL REVIEW 7.

Corporate GovernanceCorporate Compliance thewith GovernanceCorporate Code Management Risk Report GOVERNANCE 6. 72 78 92 86 66

Corporate Social Corporate Investment Report Board of Directors of Board Management Executive Human Resourses Engagement Stakeholder Report SUSTAINABILITY SUSTAINABILITY REVIEW 5. BTC ANNUAL REPORT 2019 ANNUAL BTC 59 OPERATIONAL OPERATIONAL PERFORMANCE REVIEW

4. Commercial Unit Review 53 Unit Commercial Review Unit Technology 42 45 44

3. Strategic Themes Strategic 2020 To Focus Strategic Performance Strategic Update STRATEGIC PERFORMANCE REVIEW

22 28 20

www.btcl.co.bw 2. PERFORMANCE SUMMARY Performance Highlights Statement Chairperson's Managing Director's Statement Online 7 8 12 15 14 WHAT'S INSIDE REPORTTHIS 10 Our Performance Our and high level Summary 19-100 views on page Our reportingOur PAGE

Our Mission Our Vision Our Values Our 1. History Year 10 Milestones- Key Our Business Our Structure High Level Organisational Structure ABOUT BTCABOUT 3 8 9 12 15 14 10 Strategic Structure Strategic Organisational Structure Our Values Our About BTC – Corporate Info, Info, – Corporate BTC About Summary Corporate Milestones, and Vision Mission Portfolio Product in Botswana Broadband

Service fastest

2 5 ABOUT BTC ABOUT 01 Botswana proudly a is BTC strives business to operate that international truly a to and deliver we share In section, this standard. our business, our about more essencevery and history the of brand. our ABOUT BTCABOUT OF CULTURE A IN OUR PROGRESS FIBRE

4 7 CASE STUDY In 2008, BTC launched its BTC In 2008, beMOBILE. mobile service, wing was telephony The cellular established following liberalisationthe in 2007. industry the of industry telecommunications the of The liberalization Licenses operatorsService Neutral all network awarded fixed line to operate them (SNL) which permitted business. telephony as well as cellular telephony toThe beMOBILE network and expanded grew The brand became country. the 90% of almost cover after in Botswana development football with synonymous thesponsorship the richest introducing the local to game, League. beMOBILE Premier BTC introduces BTC its mobile network, beMOBILE 2008 launches its mobileBTC “beMOBILE” service, 2013 is as a incorporated BTC under company limited 2003 Act Companiesthe years privatisation 2014 2012 BTC completes itsBTC obligation to transfer transfer to obligation purpose vehicle and the assetsthe network to plan for BTC within 2 within BTC plan for announces separation from BTC into a special special a into BTC from Botswana Government Government Botswana Botswana Fibre Network Fibre Botswana (BoFiNet) and readies for (BoFiNet) of some network of assets announces privatisation Corporation Corporation d Chartered Bank d Chartered Bank Bank Botswana Limited Limited Botswana Bank Gaborone Limited clays Bank Botswana Limited Limited Botswana clays Bank st National Bank Botswana Botswana Bank National st African Banking Limited Botswana Bar Fir Stanbic Standar Bank Limited Limited Botswana Limited Limited Botswana

As a global community, we are As a global community, digital, of movingan era fast into connected and truly networked Digital innovations communication. we do what of underpin much As BTC, and indeed how we do it. towards committed we are wholly digital organisationam in building a impactful and sustainable manner. digital Botswana’s support further We strategy and transformation journey. and passion is This commitment Annual Report, this echoed throughout designand content. function, in form, Our Purpose Our superior provide To communications solutions to Batswana and anywhere to enable everywhere live connected. to them • • • Company Secretary Mganga Sidney Bankers • • • 3674400 /09/11/12 3674400 Transfer Secretaries Transfer Securities Central Depository Botswana of Company details: Contact personContact : Masego Pheto Postal bag address: Private 00417, Gaborone Auditors Ernst & Young Letshego Place 2nd Floor, Crescent Khama 41015 O Box P Botswana Gaborone,

This speaks This theto increasingly prevalent fourth culturedigital or industrial revolutiontermed. is often as it The theme of this Annual Report thisThe theme has of been informedsomething by that shapeswholly industry our and our business; this being Digitisation.

About this this ReportAbout Registered Office Megaleng House 50350, Plot Crescent, Khama Botswana Gaborone, 700, O BOX P Botswana Telecommunications Botswana Telecommunications (BTC) Limited Corporation of Republic the in Incorporated Botswana Registration Number Company 2012/12936 Corporate Information Corporate

Botswana Telecommunications Telecommunications Botswana converged a is (“BTC”) Limited Corporation offering operator telecommunications mobile (voice data), and fixed (voice services and data) and broadband to licensed enterprisesand other consumers, serviceproviders. INTRODUCTION BTC About

6 9 “BTC ke ke “BTC CASE STUDY Historic BTC Historic IPO and Listing The 8th of April 2016 will The 8th of go down in Botswana history as the day the first was BTC, successfully privatised entity, on listed the local bourse. 462 million Shares of BTC were listed on the Domestic listedthe were on BTC Shares of million 462 was (BSE).This Exchange Stock Botswana the of Main Board signaling partthe Batswana, occasion for momentous a in that, company a in Batswana everyday ownership of years. the over build helped have they ways, many This received. were qualifyingapplications 50,301 of total A 1.68 a representing Shares, 776,333,400 for Offer to equated the and thus making amongst it times over-subscription, history. IPOs in Botswana’s historic and most largest sawalsoan IPO BTC the Botswana, for record another yet In with Offers individuals, made by of majority unprecedented offersaccepted received from 462,000,000 the 90% of over wasThe balance companies. and citizen-owned individuals to IPO the who drove investors, institutional from received its oversubscription status. Botswana for time historic truly and an incredible This was The business BTC. at all for humblingtruly moment a and versed more shareholders, citizen thousandswelcomed of buyingshares in what an virtue of means by public intense nationwide keen and drive, education As we thrive. see BTC to and which then, proclaimed today, true remains rotlhe!” rona ya 2017 2016 BTC launches 4G BTC network BTC lists the BTC on becoming BSE, firstand only the telecommunications listedservices provider local bourse. the on The first privatisation in Botswana‘sinitiative brings over history Batswana 50,000 shareholders BTC. to 2015 BTC delivers Government BTC Network Data Broadband 2016 integrates itsBTC beMOBILE and BTC one, brands into reflecting its position as one-stopa shop communication no longer BTC business. as goes to market fixed lines or beMOBILE, as one but Broadband, single a with BTC, united refreshed brand. and more. and more. entertainment, leisure entertainment, and Internet can bring can for and Internet solutions, SIM-only solutions, the the voice convenience that Paid/contract-based Paid/contract-based Build- and a packages solutions includes Post- Your-Own-Bundle (BYOB) (BYOB) Your-Own-Bundle Our on the go suite ofsuite the on go Our can live connected, enjoying live connected, can Post-Paid product that allows that product Post-Paid lines. We ensure that everyonethat ensure We lines. customers to customise their including broadband and fixed voiceincludingand fixed broadband mobile package based on their needs. basedtheir on mobile package We provide residential solutions residential provide We

At home At

BTC has solutionsBTC customersfor ranging from SMEs to large corporates; from up set single office connectivity multi-office to solutions broadband Even our services. business. any needs of the fit Consumer We offer solutions to individual customers to individual includingsolutions offer We focus is The primary offers. SMS and data voice, mobile SMEGA, Services, Financial Mobile bundles, on data greater aim for as we and convenience inclusion. Our mobile and fixed products are offered in both Prepaid and Post-Paid packages. packages. and Post-Paid Prepaid in both offered are and fixed products mobile Our such based content alsoservices mainly offers are which added value customers BTC to is The intention on mobile. SMS and bulk airtime credit ringtones (CRBT), as caller proposition. value customer services enhance our to value-added more introduce Our product portfolio offers and fixed products mobile both product Our services which customersaccessthrough and to can have and SMS broadband. voice, Products and Services solutions” innovative communication innovative customer experience experience throughcustomer MISSION provide superior “We

8 11 CASE STUDY BTC Digital Digital BTC Innovation March 2019 LaunchesBTC the Sentlhaga Centre Data To live its brand promise, BTC has taken a bold and bold a taken has BTC live itspromise, brand To in itsand network invest heavily to decision deliberate the customer. of benefit the efficienciesfor Centre, Data Sentlhaga the launched BTC 2019, In March tier top best the Certified Centre, Tier Institute an Uptime to Central availability. in the world guaranteeing 99.74% is Centre Data Sentlhaga the transformation, digital BTC’s most industry’s the to which conforms facility rack 52 a the proper trusted and adopted standard global for centres. data of and operation build design, solution is centre data modular generation This next houses mission It digital economy. the backbone of the as well as ICT critical and applications infrastructure facility. colocation acting as a and cloud delivers centre The facility world-class data innovation, enablingtransformation, digital services, data operations, IT of simplification and agility increased speed Internet high VoIP’s, services, increased data hosting, currently content local hub for a is It access. video and allowing Google etc., YouTube, Facebook, housing Netflix, accessand content. download to browsing, faster for 2017 embarks BTC on network transformation 2019 launches Data BTC and improved Centre capabilities VSAT platform 2018 converged billingconverged BTC launches a new launchesa BTC OTHER 3% FIXED SERVICES VOICE OF PORTFOLIO MOBILE OF PORTFOLIO BROADBAND 29% 32% OF PORTFOLIO SERVICES 36% OF PORTFOLIO

Fixed voice constitutes 36% of voice constitutes 36% of Fixed mobile 32%, portfolio, product our BTC 3%. and other 29% broadband has steady seen a growth in mobile to will continue this and we believe going driver primary growth be our centric data more as we offer forward customer the different products to services Voice segments. continue to fixed lines. over dominate Product PortfolioProduct services” communication VISION in leader “Market

10 13 5 Innovation adapt to and to embrace adapt environmental changes. environmental We are agile and able to agile and able to are We BTC ANNUAL REPORT 2019 ANNUAL BTC 4 Simplicity internal customers. customers. internal easy-to-understand We provide seamless, seamless, provide We solutions and services to both our external and external our both to We offer fixed broadband to all our customers, and residential and customers, all our to fixed broadband offer We and enterprise customers bandwidth level of can choosethe satisfy to In order and requirements. needs dependingtheir on enterprise internet, customers’ broadband our for high demand provide which solutions connectivity dedicated them we offer and quality. bandwidth uncontended guaranteed 3 Our customer base customer Our Customer Base Customer Delivery timeframes. comprises individual Government entities. entities. Government through effective, effective, through customer experience customer We commit to the the best to commit We delivery within defined within delivery efficient and agile service and agile efficient consumers, enterprises and consumers, 2 Ownership for the quality of of quality the for our effortsour the and We exhibit a sense of sense of a exhibit We and take accountability accountability and take pride in the work we do work the pride in organisation as a whole. whole. organisation as a 1

and efficiently and efficiently Teamwork

collaborate collaborate in the of a common goal. common a goal. of We work effectively effectively work We workplace in pursuit workplace in pursuit

and key stakeholders: and key in all our dealings with customers with dealings all our in We will uphold the following Values followingthe will uphold We Our ValuesOur ABOUT BTC ABOUT

12 15 GM - MARKETING SALES GM - CONSUMER GM - ENTERPRISESALES SERVICEHEAD OF QUALITY SYSTEMS GM - INFORMATION GM - TECHNOLOGY GM - TRANSFORMATION SERVICESHEAD OF SECURITY GM - FINANCE SERVICESGM - SUPPORT & HUMAN RESOURCES AUDIT & INTERNAL GM - RISK SECRETARY COMPANY RELATIONS STAKEHOLDER HEAD OF CHIEF CHIEF CHIEF OFFICER OFFICER OFFICER FINANCE OPERATIONS OPERATIONS COMMERCIAL BOARD OF DIRECTORS MANAGING DIRECTOR Our OrganisationalOur Structure

Find additional information information Find additional printed the 53 in page from Annual Report. the section of 1 PAGE The Commercial unit comprises:The Commercial unit Sales, Consumer Marketing, Enterprise Sales & Service division is The Marketing Quality. responsible to ensuring we take market the to products right the The Consumer segment. per Sales focusesSME and on Retail customers Enterprise whereas parastatals focuses on corporates, and resellers. and Government

Find additional information on information additional Find section of printed the in 59 page Annual the Report. 2 The Technology unit comprises: unit Technology The (Telecommunications Technology Systems (IS), Information Networks), ServicesSecurity and Transformation responsible is The unit Office. and build planning, network for also overseesThe function operations. overall corporate environment, IT the of and the delivery services, security initiatives strategic wide company- and programmes. PAGE 3 SUPPORT UNIT SUPPORT

BTC has three distinct distinct three has BTC

TECHNOLOGY UNIT, TECHNOLOGY UNIT, Find additional information information Find additional printed the in 103 page from Annual Report. the section of

operational areas areas comprising: operational COMMERCIAL ANDCOMMERCIAL UNIT PAGE

The Support comprises: unit Support Risk Services & Human Resources, Company Finance, Audit, and Internal Relations. and Stakeholder Secretary to support These provide functions business. the of functions core the

Structure Our BusinessOur ABOUT BTC ABOUT

14 PERFORMANCE SUMMARY REVIEW 16 17

Sentlhaga Data Centre Facility is a Tier II, Uptime certified Data Centre

Financial Performance Highlights 20 Chairperson’s Statement 22 Managing Director’s Statement 28 PERFORMANCE SUMMARY 19 18

PERFORMANCE SUMMARY HIGH LEVEL VIEW/ SUMMARY

02 An important part of how we strategically shape our future is in looking back at what worked well in the past. In this section, we explore our performance in the year under review. PERFORMANCE SUMMARY REVIEW 20 Key Highlights: 21 This year showed a Highlights strong financial and operating performance. We continued to drive sustained for 2019 investment. This year showed a strong financial and operating performance. We continue to invest in our network and capabilities. Sustained investments, included: 4G (LTE) – 88% coverage of major centres and higher speeds of 1 Fixed network modernisation and up to 75mbps mobile network expansion Expansion of FTTx – Launched new high-speed internet for the Significant increase in LTE coverage residential market footprint covering Urban, Semi Urban • 81 Fibre to the Cabinet (FTTC) nodes commissioned in and villages across Botswana 2 Gaborone, Francistown, Kasane and Maun • Fibre to the Home (FTTH) now available in Phakalane and Improved VSAT service Gaborone North, other areas ongoing

3 Sentlhaga Data Centre – Uptime Institute Tier II Certified Modernisation of IT infrastructure

Launched mobile financial service, SMEGA, and BTC mobile App Investment in and migration of 4 (post reporting period) and introduced new data products. customers to a converged billing platform 15% 83% 63% 14% 24.13% 61% 76% 11% 57% 69% Our mobile 23.58% subscriber base 22.89% increased by 2017 2017 2017 2017 2019 2019 2019 2019 2018 2018 2018 2018

Gross Profit Margin went EBITDA Margin went Net Profit Margin went Asset Turnover went 2% down 2% up 0.55% down 3% down 7% 23 Board ChairpersonBoard PERFORMANCE SUMMARY Lorato Boakgomo - Ntakhwana Boakgomo Lorato to our shareholders. shareholders. to our effort to achieve sustained to achieve results. effort Executive Summary Executive was paid in dividends paid was Statement Chairperson’s to share our outlook and future plans with you. you. plans with and future outlook our share to I am privileged to once again write to you about you about I am to privileged to again once write the performance of Botswana Telecommunications Telecommunications Botswana performancethe of Corporation Limited (BTC) at the end of yet another another yet end of the at (BTC) Limited Corporation profitable year. This statement serves statement This to you give an year. profitable overview of our performance against our Strategy; to Strategy; our performanceagainst our overview of recognize our achievements, acknowledge and address and acknowledge achievements, our recognize P138.9 mil P138.9 Growth are complex undertakingsan integrated company-wide and require complex are Growth challenges we faced during the year, and last but not least, least, not but and last year, challenges during we faced the The first 2 years of our Strategy cycle have been intense. Transformation and Transformation been intense. cycle have Strategy our yearsThe first 2 of PERFORMANCE SUMMARY REVIEW

22 25 Our investmentsOur during focused on year the Transformational three pillars: Technology, and Commercial Transformation. Cultural Cultural Transformation. We are We Transformation. Cultural efforts our to build about deliberate is technologically, an organisation that future- and culturally commercially, focused and able to resultsgenerate our to value sustainable and deliver that belief our is It stakeholders. invest in capabilities organisationsthat the long-term outperform their over peerssustainable and achieve more investedthus in have We growth. initiatives and Growth Transformation whilst cross functional, are which samestreamlining the time and at the prioritising initiatives which deliver value. most Transformation From Cultural a to we continued perspective, efforts of a culture make to instil high performance improving by competenciesand people’s our mindsetschanging their through behavioural of implementation have We programmes. change leadership our strengthened previous year. The decline was as a year. previous on completion expenditure of result of strategic transformational projects. we review, under year During the to dividends in paid P138.9million The cash balance shareholders. our to fund planned sufficient remains Capital and dividend expenditures payments. few next seethe in you will As decisions taken we have pages, businessthe which will move the in not are they even if direction, right deliver To profitable in short-term. the emphasis is our Transformation, true sustainability and maintainingon a perspective. long-term to medium STRATEGY some notable progress made have We Objectives. Strategic our against investments year Our duringthe Transformation focused three on the Commercial and pillars: Technology, 4.2% billion. P1.269 to We registered We cost significant savings during under year the total Our review. costs declined by should not embark on transformation transformation on embark should not For many organisations, the pursuit of of pursuit the organisations, many For ing as it may be, hence our concurrent concurrent hence our be, may ingas it pursuit of Transformation and Growth. and Transformation of pursuit transformation precedes the pursuit of of pursuit precedesthe transformation growth, but we strongly believe that we that believe strongly we but growth, without thinking about growth, challeng- thinking about growth, without climate and regulatory landscape, etc., etc., landscape, and regulatory climate performance. on our implications have year during the activity Economic despitean slow, was review under increase in year on year estimated (GDP) Gross Product Domestic real 2.4% up from in 2018, 4.2% of growth appear This increase does not in 2017. increased into translated have to reduced the spending in as reflected customer different across our spend segments. alsowas across This trend reflected the sector; total revenue for the came sector telecommunications pressure reporting duringthe under Customers to continued period. margin and lower demand cheaper putting further services, and products line; revenue top pressurethe on P1.45billion. to 8% declined by faced challenges in our notably We registered which mobile business, launch despitethe 12% decline of a services the and in new products of and efforts their to promote market close eye a will be keeping We uptake. year. financial in the next area on this savings registeredcost significant We Our review. under year duringthe P1.269 to coststotal 4.2% declined by reinvested funds the have We billion. the into savings back cost the from cash the decline in Despitea business. as levels healthy stillat is balance it registering down P305m end, year at the in P450m balance of the from

We measure our performancethe in our measure We operatingthe environment, of context dynamics. and market trends industry technology, dynamics, Changes market in investmentthe indicators, economic OPERATING PERFORMANCEOPERATING OVERVIEW The first two years of our our The firsttwoyears of been intense. cycle have Strategy and Growth, Transformation are change, culture coupled with undertakings and require complex effort an integrated Company-wide For sustainable results. achieve to pursuit the organisations, many precedes the transformation of strongly we but growth, of pursuit embark should not we that believe thinking without on transformation may challengingas it growth, about of pursuit concurrent hence our be, and Growth. Transformation This statement is therefore an an update is therefore statement This since made progressthe we have on some and ask back as then we look we have i.e. questions, pertinent very yes, and if been able to raise the wall, strong foundation the level? Is what to we Are completegoingto enough? endthe build by to out set we what These are years? three etc. the of promised We necessary questions. we are shareholdersgoing that to our an and deliver BTC, and transform grow Company and profitable healthy agile, the statethat to I would like 2020. by committed completely remains Board this endeavour. to The year under review was the second the was review under year The in I noted Strategy. three-year our of the first that statement previous my foundation the layingthe was of year and doing necessarythe groundwork. continued Chairperson’s Statement PERFORMANCE SUMMARY REVIEW

24 27 APPRECIATION thank to this opportunity me take Let whose Members, Board fellow my right the in BTC steer to commitment unquestionable remains direction challengesdespite which come the Transformation. processthe of with Staff the thank to I would also like their for BTC of and Management duringand dedication work hard as we achieve we can Together, year. and on thesejourney Transformation team. initiatives as a Growth - Ntakhwana Boakgomo Lorato ChairpersonBoard OUTLOOK 2019-2020, year, financial The next three-year our of year last the marks we twoyears, last the Over Strategy. on what clarity achieved more have is possibleand how we can improve focused will be We performance. a from on monetising network the perspectivecommercial which will and we financial objectives, the deliver new digital will be riding BTC’s the on whilst capabilities, and connectivity leverage to new ways we explore these capabilitiesand develop ones. additional aware are we earlier, As mentioned process andis a Transformation that opentherefore are We is evolving. strategic planned adapting to our changes in future of initiatives in light continue ecosystemto generatingour time. over Growth consistent 3G sites and base stations to 4G in stationsto sitesand base 3G villages. covering 18 area the Ghanzi residents initiative this of Through villages theseaccess are able now to various and use the Internet faster services. data-centric SUSTAINABILITY the alive to we are growing As BTC, companies on drive expectation to We impact. socialand economic thesewelcome because deliberations thrive only we can that we believe also societies we operate where if and to thrive we are committed socio-economic the contributing to Botswana. of development review under year the for have We ploughed Foundation, BTC the through, support in P500,000 than more back projectsand causes the in line with of of Details areas. focus Foundation’s these investments under found are (CSI)Social Investment Corporate the am I report. this elsewhereReport in year, during the that, to note happy in excessapproved Foundation the We CSI projects. towards P4million of to respect view with long-term a take with concerned more are We CSI. our sustainability than with and impact results. immediate efforts collaborative value with We allow us which stakeholders different capabilities each other’s leverage to for opportunity open doorsto of and bring people developmentsour For Botswana. and for Batswana, to contribution our through example, the Universalto AccessService and collaborative a Fund (UASF), between Government initiative the and other BOCRA Botswana, of bringto we continue stakeholders, services to telecommunication quality review, under year the For Batswana. upgrade to project a undertook BTC We welcome these welcome regulatory We developments will continueand we thought and provide voice our lend to regulatory of wide range leadershipa on issuesreform considering long-termthe do We and BTC. industry the benefits of all with compliance ensure to utmost our requirements. regulatory REGULATORY ENVIRONMENT REGULATORY regulated highly operatesa in BTC and value We industry. and dynamic engagement high level of a maintain regulators, various our with Botswana the which include Communications Authority Regulatory Stock and the Botswana (BOCRA), amongst (BSE), Limited Exchange advocate to continue We others. increases that reform regulatory for level and maintains a competition enhancestransparency, playing field, supports governance, promotes good and protects the sustainable growth, interests consumers and investors. of year financial the end of the Towards 2019, January effective review, under new Listings BSE introduced the The new rules require Requirements. BTC, disclosure for level of higher a For Management. Senior and Directors companies now required are example, and Review Opinions, Audit publish to Management Senior and Directorsand shareholders notify to required are Company’s the dealings in their of securities. discussto and monitor continue We accounting new the of impact the have 15, and 9 IFRS notably standards, financial reporting. on our which possesses a wide variety of of which possessesvariety wide a skillsetsdiverse and is able to offer public the both from perspectives, in deep rooted sector, and private and industry, in finance, experience human resources. risk of culture instila to continue We the organisation. across management establishedto mechanisms BTC the and manage control, understand, on its risks various high of impact continue We projects. strategic impact I business plans. continuity our test to resultsthe of that report to am happy theseall efforts been satisfactory. have GOVERNANCE there review, under Duringyear the on asspotlight governance a was alleged news of faced with we were private the practices in both corrupt assure to I would like sector. and public endeavours BTC that stakeholders our the highest to corporate adhere to effect, that To standards. governance the review, under year during the new Committee: establishedBoard a Affairs and Directors the Governance Its mandate (DAGC). Committee to things, other amongst includes, nominating, oversee processthe of Directors, and appointing of electing, the performance and of evaluation with compliance review to and Board by and Conduct Ethics Code of the Directors. and Non-Executive Executive key a as functions Board The BTC strategic partner and sounding without Management, for board oversight their of losingsight This resultsvery in responsibility. sometimes with discussions, robust end the at strong but disagreements, no decisions, we make day the of a better, to build how difficult, matter Members Board Our BTC. transformed duties. fiduciary their in diligent are corporate governance, our enhance To assesses continuously Board the skills of itsterms in composition new members Two and experience. Thari Mr. namely, Board, the joined as Molomo Bafana and Mr. Pheko Directors. Non-Executive Independent Board a have is fortunateto BTC In the long-term, we aim to align the align the we aim to In the long-term, BTC intereststhose employees of to of vested employees fully ensure are to performance. in BTC’s capital 85% expenditure of our our of the period for in spent was transformative projects such as and FTTx LTE the rollouts cannot achieve Transformation and Transformation achieve cannot identified We them. without growth capabilities to which are required and Growth Transformation deliver and sectoral trends in line with development thesethe informed new implemented recently the of organisational structure. of implementation the through have, We been structure, new organisationalthe people thewith align the right able to possible. the extent to greatest roles, right The exercise. continuous see as a this We leadership, resources, availed has Board that to ensure financial and otherwise, businessthe itsachieve can Cultural objectives. Transformation the right also that ensured have We leadershipand capable is in place. been have positions Executive Most we which few a for except filled, Post year. new the fill in to expect also we have reportingthe period, andstructure of the change approved role. Officer Financial Chief a introduced

As mentioned above, we strongly strongly we above, As mentioned most are our team our believe that the ‘engine’ are They asset. valuable efforts andTransformation we all of PEOPLE We have started leveraging have newthe We enableddigital capabilities have which speed increase costs, our reduce to us customers our and offer market to Duringthe money. for value more and new mobile we launched year, details propositions, fixed broadband this throughout available are which of supportive are we Board, the As Report. efforts transformManagement’s to of thewithin and the business, grow and governance good of confines understand that We business principles. pursuing is transformative that growth cost. a and time comes at takes The LTE and fixed broadband rolloutsand fixed broadband The LTE and coverage expanded network have We performance. network improved widest 4G coveragethe have currently also our improved We country. the in service VSAT new Our capabilities. VSAT offersreach. improvedgeographical capabilities, developed a leadership a developed capabilities, new talent and a succession plan, programme. management review, During period under the technology support to our 85%than more of transformation, spent was capital expenditure our projectssuch as on transformative “X” (FTTx) the to Fibre and, LTE the Billing Converged the rollouts, These Centre. Data Systemthe and investments offer to able been have new digital capabilitiesand have fulfillingto step closer a us brought objectives Transformative our one of digital organisation. buildinga of continued Chairperson’s Statement PERFORMANCE SUMMARY REVIEW

26 PERFORMANCE PERFORMANCE SUMMARY SUMMARY REVIEW Managing Director’s 29 28 Statement

Dear Investors and Stakeholders,

It is my pleasure to present to you our 2018-19 Annual Report, a summary and review of Botswana Telecommunications Corporation Limited’s (BTC) activities during the year, with a focus on performance against our strategic objectives.

Operating Costs were The overall mobile under control and market subscriber base declined by increased by 4% 2% EBIDTA margin increased to 24% from 23%

We take our role in spurring the growth and transformation of our economy to improve our global competitiveness and enable broad-based socio- economic development and inclusion very seriously.

Anthony Masunga Managing Director 31 the ordinary the voice solutions are Our suite of data and data of suite Our designed to beyond go MARKET SHAREMARKET SIM market, dual a remains Botswana in excess mobile penetration with The overall mobile market 100%. of base 2% increased by subscriber to 3.18m period from duringthe 2% registeredgrowth a We 3.35m. subscribers; mobile total however, in declined share mobile market our This 16%). 15% (FY2018: to marginally the in general growth of result a was subscriber overall mobile market the base and an competitive intensely continue to expect We mobile market. fallingSIM cards somesee off to as operators continue market the SIM the compliance with enforce to registration requirements. player dominant the remains BTC with market fixed broadband the in however, have, We share. market 72% some pressure new from received Service Providersand existing Internet fixed broadband the (ISPs) on able been have but offering, product leadership market maintain our to our to due primarily position and improved fixed network extensive simplified and as well as our quality, offering. product Internet affordable seenan increase we have result, a As residential the led by in usage, 4% registereda and have segment, usage.increase in fixed broadband Other revenue lines, such as fixed such lines, revenue Other whilst flat, relatively remained voice, declined marginally. fixed broadband challenges the from Recovery was year experienced duringthe exacerbated mobile further by new the into migration customer took which BillingConverged System, than expected. longer due to an increase on in investment to due Operating and fixed networks. mobile and declined costs control under were This P723m). (FY18: P693m to 4% by 5% decline in earnings a resulted in depreciation taxation, interest, before and amortisation to P349m (EBITDA) decline in Despitethe P368m). (FY18: margin increased EBIDTA revenues, 24%. to 23% from is The overall decline in revenue to attributable unfavourable mainly This saw trading conditions. resulting spend, restrained consumer 12% decline on the mobile in a business introduction despitethe servicesand in new products of to initiatives and other market the uptake. promote The satisfaction of our our satisfaction of The customers is one of priorities. greatest our has 66% from from to 68%. 68%. to shown an as improvement, timesturnaround improved. have The Index by improved Our Our Customer Satisfaction Index 2% FINANCIAL PERFORMANCEFINANCIAL OVERVIEW of tax after profit a recorded BTC under year Financial the for P162m to 25% compared decline of a review, year. previous the in recorded P217m to anThis attributable 8% is mainly P1,448m to revenue total decline in 28% increase in a and P1,567m), (FY18: P156m) (FY18: P199m to depreciation In line with global trends, consumers In line with trends, global and to newer switch to continued products with alternative cheaper shifting from i.e. margins, lower thus services, centric voice to data am, I increasing pressure on margins. pleased announce that to however, profitable another yet was 2018-19 us. for year the next level. next the all our customers all our have more to discover, taking to discover, more At BTC, we strive to ensure ensure striveto we BTC, At their Internet experience to to experience Internet their

OPERATING ENVIRONMENT OPERATING Botswana the sluggish of growth The under year duringthe economy spend resulted in low ICT review across The all segments. customer as a sector, Telecommunications suppressed registered revenue result, the period. for The year under review marks the the marks review under year The our of year second the end of Growth strategy of three-year Consistent and Transformation. efforts, transformation our with to our committed we remain which is “To founding Purpose, communications superior provide and anywhere solutions to Batswana to live to enable them everywhere our also are of aware connected.” We much-needed economic the in role As Botswana. of transformation telecommunications converged a an integral part of are we operator, Communication Information the which has sector (ICT) Technology enabler critical a as been identified the National of attainment the for transforming Botswana of objective We knowledge-based economy. a into spurring the in role growth our take to economy our of transformation and global competitiveness our improve socio- and enable broad-based and inclusion development economic seriously. very

Statement continued Managing Director’s PERFORMANCE SUMMARY REVIEW

30 33 The Third Year will focus the year, final the In network be on monetising our sales robust and a through will We strategy. marketing effortsa our continue build to to digital organisation in order ourselvesdifferentiate through efficiencies operational improved innovative, offer and capabilitiesto solutions. customer-centric Digitalisationalso will increase service scope our provision, of including new digital channels customer which will improve doing of and ways experience reportingthe Post business. able been already we have period, which App, Mobile launch our to provides self-service capabilities. The Year Second secondthe year, For the with we continued telco our modernisation of and during the infrastructure, the on built review, under year upgrade infrastructure network out roll to and continued (FTTx) X the and to Fibre LTE modernising As part of sites. Systems Enterprise IT our digital buildinga towards out we rolled organisation, billing converged platform a Data and commercialised our side, commercial the On Centre. we made effortsto monetise investments technology the and products rolling by out services market in line with mobile to demand our grow market and fixed broadband our and improve share experience. customer

OUR EFFORTS TO ACHIEVE OUR STRATEGIC OBJECTIVES AND TO POSITION BTC FOR SUSTAINABLE GROWTH, WHICH GROWTH, SUSTAINABLE FOR BTC POSITION TO AND OBJECTIVES STRATEGIC OUR ACHIEVE TO EFFORTS OUR REVIEW. UNDER YEAR THE INTO CONTINUED YEAR, THE PREVIOUS IN STARTED The First Year Strategy our of year The first the foundation to lay was which will allow achieve us to We objectives. strategic our our of startedalignment with and Commercial Technology, ensure objectivesto Cultural strategic initiatives are our complementary. started making investmentsWe modernisingin expanding, telco and future-proofing our modernising infrastructure, systems, Enterprise IT our new commercial developinga to segmentedand approach and developing plans market high- and instila build to performance culture.

Statement continued Managing Director’s PERFORMANCE SUMMARY REVIEW and Cultural. Pillars: Commercial, Technological Technological Pillars: Commercial, anchored on three transformation transformation on three anchored Transformation strategy which is Transformation year of our three-year Growth and Growth three-year our of year The year under review is the second the is review under year The STRATEGY TO TO 2020 STRATEGY OUR THREE-YEAR

32 35 home internet 87 FFTx sites FFTx additional additional in line enable BTC’s capability to to capability enable BTC’s offer higher speed fixed data speed fixed data higher offer products such as the such as the improved products increase in overall subscriber base 4% Customers continue feature from switch to phones and basic affordable to our 4G-enabled devices Mobile Device our with Strategy. platform post reporting period, which which reporting post platform period, converged deliver to will enable us fixed and mobile products across to This will continue business. the of objective our to enabler key a be digital organisation. buildinga CULTURAL TRANSFORMATION Transformation Cultural our As part of to continued BTC programme, strides high in buildinga make performing characterised company strong and capable leadership, a by leadership robust a supported by and succession plan. was structure new organisational A rolled and Board the by approved also rolled BTC year. duringthe out programmes change behavioural out and culture work improve to we that ensure to levels productivity customersserve our efficiently. more sustainably to This will enable BTC above achieve those are results that new Performance A peers. our of has been Systemtool Management and is now developed and approved being out. rolled cordial a enjoy to continue We the working with relationship Telecommunications Botswana premised Employees’ Union (BOTEU), the common desire for a on and respect mutual BTC, success of an understanding each others, of objectives. capable of delivering high speed and deliveringspeed high capable of up of connectivity Internet affordable in Botswana. anywhere 50Mbps to These services servicehave improved experience and and customer quality seenan increase in customer has BTC retention. 4G our expansion of the of result a As has BTC year, duringthe network (LTE) more with widest 4G coverage the sites covering 400 than economically viable parts delivering Botswana, of 75Mbps. to up speeds of mobile data saw an We increase in smartphone as on the network penetration from switch customers to continue phones our to and basic feature 4G-enabled devicesaffordable in Strategy. Mobile Device our line with base subscriber The overall mobile 6%. increased by additional an of expansion The FTTx BTC’s sitesthe has enhanced 87 speed fixed higher offer to capability such as the improved products data at available (now home internet and 20 50Mbps) and the Net 4, market key for suite product Connect started realise to have We segments. as returns anticipated the some of base subscriber broadband fixed our the and we expect 7% increased by to continue. trend positive network our of quality The improved will capacity and increased network us from differentiate to continue ensuring players market, the in other We experience. customer improved all our of migration the completed customers billing converged the onto TECHNOLOGY TECHNOLOGY TRANSFORMATION the first two theyears Over of focused primarily we were Strategy, transformation technology on our enabler effortsa primary are which In Transformation. Commercial for these twowe significantly years, have sites, LTE/4G of number the increased and (urban locations coveringall major This will improve country. the of rural) on data, experience customer the significant and ensuring coverage more fixed a also out rolled have We speeds. expansion programmebroadband providing centres, major throughout (FTTC) Cabinet the to Fibre both This Home (FTTH). the to and Fibre assists deployment us in maintaining leadership provision the in position our services. fixed broadband of we review, under year During the world launched our commercially CertifiedclassTier Institute Uptime Very and improved Centre II Data Small Aperture(VSAT) Terminal servicesexperienced already and have these platforms. of increased uptake service offers improved VSAT The new terrestrial (where reach geographical and is available) technologies are not a customer service programme customer a times turn-around to improve thus installations and repairs, for enhancing experience. customer Index Satisfaction Customer Our as shown an improvement, has The improved. times have turnaround 68%. to 66% from improved Index

To improve customer serviceand customer improve To under year duringthe experience, Customer the focused on BTC review Service strategy and implemented We also We launched some value- services customer improve to added retention and various conducted stimulate usage of to promotions These initiatives were network. our Post market. the by received positively we re-launched reportingthe period, mobile financial revamped our seen already and have SMEGA, service, product. the of uptake significant Our Commercial Transformation Transformation Commercial Our efforts our by informed are is which Strategy Commercial segmented approach anchored on a customer superior and market to various the target We service. segments relevant with market their and affordable productsfor As competition needs. specific launch to continued BTC intensified, products which and improved new customer various the resonate with under year During segments. the voice we launched mobile review, Social, as Live such products and data Live Freely, Bundles, Turnup revamped targeting the etc., video bundles, also launched We market. consumer such as the products, fixed data the for suite product Connect Net and (FTTC FTTx Enterprise market, and Residentialthe market FTTH) for which cut services, VSAT improved segments. across all market COMMERCIAL COMMERCIAL TRANSFORMATION Statement continued Managing Director’s PERFORMANCE SUMMARY REVIEW

34 37 APPRECIATION the Board, thank to I would like their Stafffor and team Executive and assistance. support continued objectivesand plans, All our be possibleachievements not would employees. dedicated our without and commitment work, hard Their sacrifice unnoticed. go will not Masunga Anthony Managing Director billing systems convergence and systemconsolidation support of digital our As part of contracts. to we intend transformation, processes our to of most automate seamlessgive customers digital a access easier experience through communication our and usage of technologies. given the believe that, We been made, investments have that to positioned is now better BTC to itsvalue investorsdeliver and future. the stakeholders in OUTLOOK 2019-20 the for The focus is to monetise and year financial commercialise significant the investments in both made mobile and fixed networks and to in order This infrastructure. IT sustainable growth for BTC position an unparalleled and to deliver experience. customer and Fixed the of The completion (FBB Network Mobile Broadband the as BTC & MBB) has positioned in network widestand best data which enables to us country, the through speed Internet higher offer will We and fixed broadband. mobile innovative more launch to continue will capitalise on our that offerings and data grow high-speed Internet to also will continue We usage. we that value proposition expand the segments. market key all our to offer see an increase to in the expect We newly the transactions from volume of Mobile of launched digital channels Services Financial (SMEGA) and the which offer Application Mobile BTC the customer. to more convenience BTC margins, profitability improve To on driving more will focus efficiencies transmission, areas of in the “We will continue will continue “We launch more to innovative offerings that will capitalise on high-speed our and grow Internet usage.” data base but expect a downward trend trend downward a expect base but enforce to as we continue develop to SIM registration. compliance with result to is expected This initiative SIM in card disconnections and a subscriber mobile the in reduction base across the board. regulatory other are There developments which came into under year the during and post effect way the which will impact review These the include we do business. New Electronic the of enactment Protection Data Act, Service Payment and Spectrum Management Act, will continue We etc. Strategy, closethese eye on and a keep to business. the on impact their manage

As expected, the enforcement of SIM of enforcement the As expected, registrationstarted requirements has base. subscriber mobile the impact to sawa we review, under year the In subscriber marginal increase in our continues to evolve. continues to evolve. we that I mentioned year, Last for Regulator the lobby to continued and competitive equitable more a bestlandscape the which is in Operators Mobile Network of interest focus a with (MNOs) and the public, the Post portability. on number Regulator the review, period under has announced the commencement number for preparations of in be implemented portabilityto welcome development a This is 2020. will as we believe it us for levellingto contribute significantly playingthe field. the regulatory landscape regulatory the regulated environment and environment regulated We operate in a highly highly a in operate We DEVELOPMENTS REGULATORY REGULATORY

Statement continued Managing Director’s PERFORMANCE SUMMARY REVIEW

36 39 43 42 44 Strategic Themes Strategic Brand Purpose Startegic Focus 2020 Strategy PerformanceStrategy Update 45 your Find accurately location and faster

STRATEGIC PERFORMANCE REVIEW

38 41 STRATEGIC PERFORMANCE RERVIEW STRATEGIC 03 and transparent clear has a BTC create to intent strategic are We value. shareholder ensuringtowards committed and meaningfully we deliver, plan. strategic on our sustainably, our at we look section, this In year performancestrategic the in review. under STRATEGIC STRATEGIC PERFORMANCE REVIEW

40 43 BTC is the BTC

wherever they they go. wherever

Expertiseto service innovation in spirit of Botswana. of spirit Brand Purpose connectivity to advance life. advance to connectivity infrastructure to boost the economy and the the economy to boost infrastructure only operator with a fixed mobile convergence a with operator only Our Brand purpose Brand is Powering with Our Botswana - Botswana Better a for Convergence connecting opportunities,to people Simplicity and Ease - Simplicity simplify convergence and provide an easy user experience. user an easy and provide convergence simplify Coverage Wherever You Goalways network - Widest coverage You Wherever Coverage BTC seeks to transform itself transform seeks to BTC BTC will create a superior customer customer superior a will create BTC BTC will develop new products and lines of businessand lines will develop new products of BTC BTC will demonstrate cost leadership will demonstrate cost through BTC BTC growth will be driven by an improved mobile and mobile an improved will be driven by growth BTC – formance Culture – Culture formance owth – owth Gr improved revenue margins, reduced operational costs, and improved costs, operational reduced margins, revenue improved returns. into a high performing company that is characterised by superior superior is characterised by high performingthat a into company leadership and talented people who are results ability oriented. broadband customer experience, new products, and new market and new market products, new experience, customer broadband and regionally. locally both growth that advantage. competitive give that us a experience by delivering the right products and services customersto and products delivering right by experience the in response establishedto needs. Innov High Per Cus Efficiency

5 4 – ation 3 2 – Experience tomer 1 The strategic plan focuses on five key themes: focuses plan strategic on five key The BTC has identified five broad thematic areas central to executingto this central areas thematic five broad has identified BTC Efficiency, Experience, Customer Growth, are areas result These key intent. High-Performance and a Culture. Innovation,

The Strategic Intent pursued by BTC is to create create to is pursued BTC by Intent Strategic The innovative of delivery the through value shareholder increasing market and broadband mobile solutions, to be able to the basics in order and to fix share, experience. customer superior a deliver

Themes Strategic Strategic

42 45 In the Fixed Broadband space, BTC has deployed and has deployed BTC space, Fixed Broadband the In (FTTC) The Cabinet To 81 Fibre of total commissioneda and Kasaneand Maun, Francistown, nodes in Gaborone, Phakalane in (FTTH) The Home to Fibre has extended providing fibre-based Estateand Gaborone Golf North, service The FTTx households. of hundreds to connectivity and customers centres noware launched in major was to up connectivity; high-speed Internet experience to able FTTH. for 100Mbps and FTTC 50Mbps for VSAT state-of-the art system a to upgraded itsVSAT BTC and deliveringspeed high of which is capable platform result a As to 50Mbps. up connectivity Internet affordable seenan increase in has BTC service quality, improved of seen increasedservices have VSAT retention. customer as as well particularly farming from communities, uptake facilities countrywide. and hospitality tourism MOBILE BROADBAND MOBILE BROADBAND (MBB) network Broadband Mobile the in Investment of achievingis desired quality improved the results of sites 281 out has rolled and BTC experience, customer 4G MBB has resulted in BTC of The deployment date. to coverage of terms in both being country, the best in the an upsurge to This has led speed. and download footprint subscriptions. usagean increase in 4G and in mobile data has mobile network servicethe on voice of The quality targets reductions with set and exceeded also improved congestionin network call rates. rates drop and FIXED BROADBAND TECHNOLOGY TRANSFORMATION TECHNOLOGY CONVERGED BILLING Billing Converged the was Platform Phase1 of Mobile Mobile Prepaid, 2018. in March implemented migrated. were platforms and Fixed Prepaid Post-Paid customers completed Fixed Post-Paid was of Migration in June 2019. CENTREAND INFRASTRUCTURE DATA CONSOLIDATION. Data the digitisation program, BTC the As part of was Consolidation Infrastructure Project IT and Centre has there and 2019, launched in March commercially customers of hosted in an increasesince been in uptake Centre. Data the Strategy PerformanceStrategy Update the programmesfollowingstrategic anchor identified to BTC pillars: transformation three the sustainable. CULTURAL CULTURAL TRANSFORMATION is characterised by superior superior is characterised by BTC seeks to transform into a a into transform seeks to BTC requisite skills. This will enable skills. requisite leadership ability and talented, leadership and talented, ability BTC to remain competitive and to remain competitive BTC High Performing Company that High Performingthat Company results the with people oriented customers. COMMERCIAL COMMERCIAL TRANSFORMATION Our approach to the market is the market to approach Our with our customers our and with gather seamless customer experience. seamless experience. customer value proposition and provide a and a provide value proposition essential insights our improve to We have developed an integrated developed have We of growingand of revenue gaining our Commercial Strategy with the intent intent the with Strategy Commercial segment based - we want to engage engage to basedsegment - we want market share while giving value to our our while share to value giving market The achievements under each theme are summarisedThe achievements below: are each theme under as volumes increase.

TECHNOLOGICAL TECHNOLOGICAL BTC is transforming and BTC TRANSFORMATION increased traffic volumes. volumes. increased traffic quality of user experience. experience. user of quality fastest speeds and the fastestspeeds and the best

our services more affordable. services our more affordable. the same the time improving the This means that BTC can pass BTC that This means networks in order to offer our our offer to networks in order network technology allows us technology network We continuously invest in our invest in our continuously We network quality, while making quality, network to lower operating costs lower to while while providing higher levels of levels of while providing higher modernising its and at network customers the widest coverage, customers widest coverage, the service quality on demand, even on demand, service quality Investing latest the in generation improving our capacity to handle to capacity improving our more cost savings onto customerssavings onto cost more

BTC’s three-year strategic focus to 2020 remains 2020 to focus strategic three-year BTC’s themed Transformation, and Growth one of Culture. and Commercial Technology, around to 2020 to Strategic Focus Focus Strategic STRATEGIC PERFORMANCE REVIEW

44 47 SUCCESSION PLAN SUCCESSION AND DEVELOPED THE APPROVED BY BOARD THE OF OUT ROLL BEHAVIOURAL CHANGE PROGRAMME COMPLETION OF THE RESTRUCTURING EXERCISE WITHIN THE ANTICIPATED TIMEFRAME NEW PMS TOOL NEW TOOL PMS AND DEVELOPED AND APPROVED NOW BEING ROLLED OUT BTC was able to achieve the achieve the following: able to was BTC CULTURAL TRANSFORMATION CULTURAL three undertook BTC initiatives: strategic Organisational Structure and review implementation, Build Strong and Capable and Leadership, Speed of the Leading at (LSOT). Trust e have also introduced Mobile also introduced e have App that gives that App customers access convenience to our phonesservices their through for application and online services. electricity, airtime or data bundles data airtime or electricity, service has The wallet. their from and a feature to wallet Bank a called Motshelonew innovation payments. as Bulk as well group W

As part of our customer experience customer our As part of “In introduced BTC programme, service”aimed which is day a service improving customer at Customer times. turnaround from improved index Satisfaction an that indication 66% to 68%, efforts customer to improve experience are beginning to bear fruit. • improve customer improve customer internet my office” solution office” my internet connect suite offers, offers, suite connect C has relaunched its has relaunched money C e also introduced a new a e also introduced Effortsto are beginningexperience to fruit. bear VSAT offering, which offering, gives our VSAT includingthose in customers, access areas, to reach hard remote and transmits and the Internet to video or fax, voice, receives data, satellite. conferencing via financial service called SMEGA. This allows customers to deposit buy bills, pay money, withdraw or broadband products which broadband give SME businessesand reliable burstable speed. internet W BT Net “My for Corporates, which is a solution a which is Corporates, for offers the ability that corporate office their for internet have to the customers and their premises, once. employees all at

• • • Other Offerings Other • ernet home packages (4, (4, home packages ernet

20 & 50 Mbps). The roll-out of of The roll-out & 50 Mbps). 20 & GaboroneFTTH in Phakalane to Northalso has enabled BTC more speeds of higher even offer 50Mbps. than New int

We introduced: We • GROW FIXED BROADBAND GROW The roll-out of the 4G sites enabled 4G the of The roll-out new mobile data introduce to BTC to different targeted products We market. segmentsthe of such launched new propositions revamped Social bundles, as Live video bundles. up bundlesturn and offer to able we were post-paid For bundlescustomers connect Pro which offers of a range customers of an option and voice bundles, data 4G high-end device. GROW MOBILE MOBILE GROW BROADBAND COMMERCIAL TRANSFORMATION COMMERCIAL

continued Strategy PerformanceStrategy Update STRATEGIC PERFORMANCE REVIEW

46 48 Upload 49 pictures850 while you order with the fastest 4G in Botswana.

Commercial Unit Review 53 Technology Unit Review 59 51 OPERATIONAL PERFORMANCE RERVIEW OPERATIONAL 04 helps us what part of key A on deliver truly we ensure is making intent strategic our an from operational that, sure everythingperspective, is clear, and seamless. purposeful, This section speaks to our performanceoperational the in review. under year OPERATIONAL OPERATIONAL PERFORMANCE REVIEW AND COMMERCIAL TECHNOLOGY OPERATIONAL PERFORMANCE REVIEW

50 OPERATIONAL PERFORMANCE REVIEW Commercial Unit 52 Review 53

Like all growing economies, Botswana is part of a rapidly developing and technology-dependent world in which everyday life is heavily digital BTC continues to play its central role in the digital transformation of Botswana.

The growing use of smartphones, the Internet, Apps and Artificial Intelligence (AI), and more technology-driven means of interaction are changing how we communicate. This is something we at BTC are wholly alive to.

Why BTC?

CONVERGENCE PROXIMITY BEST SOLUTIONS

Offers Mobile and Fixed Widest Network Largest and fastest Broadband Services Coverage growing 4G rollout Seamless Hybrid Largest footprint across the country (Postpaid with Prepaid) countrywide for Competitive rates 1 Stop shop technical and Bespoke solutions commercial support Best value added 24/7 contact and fault services report centre (121 or 1333) OPERATIONAL PERFORMANCE REVIEW 54 CONSUMER SALES 55 The consumer products are sold and distributed through multiple channels, both direct Commercial Unit Review and indirect. continued The primary direct distribution INDIRECT SALES during the year under review, with channel for consumer products is In addition to retail outlets, BTC has more expected in the next financial through our retail outlets. These indirect sales distribution channels year. These channels sell airtime, SIM CONSUMER PRODUCTS include our 23 retail stores spread for consumer products, which use cards, SIM replacement and also offer across the country, with more third party dealers, sub dealers, SMEGA services. BUILDING A DIGITAL LEADER IN DATA COMMUNICATIONS scheduled to be opened in the next street vendors (commonly known financial year, including in Shakawe as runners or ‘’Mma Sekhukhu’’) and In a bid to embrace digital and Letlhakane. Banks to distribute BTC Products and transformation, BTC has improved The Commercial Unit is capitalising on the BTC’s digital Services. the USSD menu for runners, which transformation programme and has made strides through enhanced During the year, we introduced a protects them against erroneous Mobile Service Truck which has We have extended our indirect retail transactions - mostly as a result of product and service offerings to improve customer experience, enabled us to reach previously foot print to include “BTC Service human error. The plan is to introduce increase revenue and reduce operational cost. unserved areas across Botswana, Points”. Service Points are provided PIN-less transactions and Omni enabling us to further live our purpose through partnerships will small local channels to give customers multiple of providing superior communication businesses to offer BTC products product purchase and utilisation solutions to Batswana anywhere and and services in areas where BTC’s The focus of the past financial year to leverage on the 4G network and their phone as a bank to save money options on the various platforms. everywhere to ensure that they live presence was previously limited. More has been to evolve the BTC’s customer enable our customers to enjoy an and make a variety of payments. Connected. than 250 service centres were set up base, to use more data centric improved user experience. It promotes greater access and products and introduce convenient inclusion in an increasingly fintech channels through which customers BTC also rolled out a new Smartphone environment. can easily access our services e.g. Strategy by offering customers a purchase airtime through BTC’s newly range of affordable low end to high- BTC also has post-paid offers such as launched mobile financial service end 4G devices to enable them to Pro-connect which allows customers platform, SMEGA. enjoy the 4G experience. to get device plus data, voice packages based on their usage or through the During the year BTC rolled out Through the recently launched mobile SIM only package select a bundle that more LTE sites to increase its 4G financial service, SMEGA, customers are caters for their need. Our high usage coverage for an improved customer able to pay their BTC and utility bills, data customers have the option of experience. The 4G roll-out has and to purchase airtime and data for selecting Pro-data bundle which enabled customers to experience themselves and for others with the click is designed for data only users or faster internet offering a better and of a button on their mobile devices. customise their package through our faster browsing and downloading Build Your Own Package (BYOP) offer. experience than any other network This service creates convenience for in Botswana. Increasing demand for customers who now can simply use These packages are suited for the social media consumption, video customers that prefer to have fixed downloading and browsing gave BTC bundle or product package of 6, 12 or the opportunity to introduce new 24 months. data-driven products such as Live The BTC LTE Social bundles (a social media-based network offers product bundle), revamped TurnUp data bundles (data bundle that gives customers a better customers all access to internet, and faster browsing, whether it is browsing, streaming or gaming) and video-based bundles for gaming and DStv customers who can now enjoy downloading watching their favourite programmes than on the go. These products cater for experience the Prepaid segment. We intend to any other network in launch more content propositions Botswana. 57 platform that gives that platform the customer control. greater team of a also have We Relationship dedicated care Managerstake who and Corporate SME our of customers the and are main liaison between the customers and the business.

ENTERPRISE SALES Managers Relationship dedicated personalised who ensure of team a have We understanding better customers’a in of business result that relationships to provide customised thus enabling to solutions tailored BTC requirements, addressing customers’ needs. identified that team back-office a supported by Managers further The Relationship are segment The Enterprise fulfilled. quickly requirementsare customer ensuresthat in both managingto footprint and dedicated team growingalso BTC’s a has to ensure customersroaming able to roam are and interconnect international international their customersselect BTC able to are and that on continent every choice. operators of businessessothat choice for of partner the be to is approach Enterprise BTC’s customers’support services businessand advance needs. To further enhance our customer customer enhance our further To launched Company the experience, service additional channels. Customers for apply are now able to services comfort online 24/7the from also reporting post We homes. their of with App, Mobile a period launched front retail a capabilitiesas similar office service consultant. allows customers app The interactive bills, access their to have to services, and on product information store locations purchasing capabilities, services be to more with and contacts, The ultimate future. near the in added paperless processa remains goal through an self-serviceinteractive It is our priority to ensure that our that ensure to priority is our It all experience at customers a great have in whether service points, customer our online. phone or the over person, Sale customer Post primary Our Centre. Contact the is service point we centre contact the Through query customer provide to endeavour resolution on first contact. system has been centre The contact web- and now includes a upgraded, easier allow for based which platform media different through interaction supported by is The Centre platforms. in for which is roped team, technical a queries. complex more CUSTOMER EXPERIENCE and drive objectivesto is strategic key our One of experience. enhance customer SERVICES MANAGED HIGH VALUE HIGH CLOUD SERVICES additional value-add offered as part of as part of offered value-add additional colocation. the (Very VSAT itsalso revamped BTC Small Apertureplatform Terminal) solution offerscommunication that businesses for connectivity enhanced in remote situated are and homesthat are not that the country areas of access to able the internet. traditionally the realisationstep towards This is a seamlessly ultimate of the goal of at connecting - anyone whether elsewhere. business or a at home, satellite platform The new improved offers customers efficiency greater capacity. bandwidth and higher ON THE GO SOLUTIONS VOICE & COLLABORATION Data Centre in Botswana and one of and one of in Botswana Centre Data the be to Built Africa. in few a only and digital connectivity BTC of heart secure, a offers the facility capabilities, environment effective cost scalable, houseto customers’ platforms ICT Cloud BTC’s to home the and is a balance offers It offerings. Connect between managing business critical to facility secure and a offeringdata providing customers systems, IT host their meet that and security reliability business needs. CustomersSentlhaga registering for Colocation Services secure, a get house physically to space dedicated controlled a in equipment ICT their power regulated a with environment, servicean is connectivity A supply. NETWORK NETWORK SOLUTIONS YOUR OFFICE YOUR INTERNET FOR FOR INTERNET ENTERPRISE PRODUCTS BTC has continued to evolve itsto has continued BTC Enterprise offeringthe new with Data state-of-the-art Sentlhaga firstthe is Centre The Data Centre. Certified Institute Uptime and only BTC is the partner of choice for for choice of partner the is BTC Enterprisesoffers as it an assortment and broadband voice fixed mobile, of solutions in one and products voice products fixed BTC place. suite, PABX fixed line and a include a include products while fixed data lines MPLS lines, Internet dedicated all for cater to and Enterprise WIFI also BTC needs. Internet corporate to have offers employerswant who their for mobile arrangement a loading credit employeesautomated product. (ACL) The Enterprise segment is critical for facilitating for is critical segment The Enterprise supporting by operations and customer are providingrelevant services products and that businesses. their to continued ENTERPRISE SEGMENT OPERATIONAL PERFORMANCE REVIEW Review Commercial Unit

56 59 Covered, 96% Covered, 4% Uncovered, POPULATION COVERED POPULATION NETWORK BTC BY + Review Widest Coverage Function VirtualisationFunction (NFV). investments in modernising its Technology Unit Unit Technology BTC continued to make significant significant make to continued BTC modernisation expansionand mobile network telecommunications infrastructure. telecommunications on Software Defined Networks and Network (SDN) Software on founded on the latest technologies which are basedare technologies which latest the on founded The investments fixed network towards were geared sites across Botswana LTE COVERAGE FOOTPRINT FOOTPRINT COVERAGE LTE IN URBAN AND SEMI AND URBAN LOCATIONS VILLAGES 400 BTC Towers BTC Widest coverge OPERATIONAL PERFORMANCE REVIEW

58 61 services;Quad-Play ove Customer Experience; ove Customer ove Time to Market; uce IT complexity and complexity uce IT tablish an Integration Centre an Integration Centre tablish Red Es Excellence. of improve serviceimprove uptime and and reliability; Impr Impr Offer

• • • • The Strategy seeksThe Strategy to: • While Internet accessibility and While Internet digital services continue to grow risks cyber sothe do in Botswana, associated thesewith technological advancements. some of and operates owns BTC Infrastructures, Critical National the implement to imperative making it Information and effective robust a Framework. Security This is ensuring towards that geared through is increased reliability there compliance regulatory services, secure improving customer result, a as and, and business confidence. partner SECURE SERVICES, SECURE BATSWANA o enhance the t tomer experience. tomer

the system’s system’s the ove service turnaround uce total cost of ownership of cost total uce Impr Enhance cus Simplify and minimise architecture systems integration points; Red enhanced businessto due time process and automation; due to operatingto multiple due legacy billing systems; 1 4 3 2 The converged billingThe converged is platform key of number a yield to expected and will: benefits,

• • TRANSFORMATION DIGITAL STRATEGY on enhancing focus the a With duringthe experience, customer embarked BTC review, under year business process develop a to on Strategy, the Digital Transformation focusing on customer maps. journey seeks Strategy The customer-focusedthe for roadmap BTC. of transformation digital converged billing system. The project The converged project billing system. reporting post completed was period, June 2019. in • • THE CONVERGED BILLING SYSTEM BTC of convergence the Phase1 of billingsystems in completed was BTC firstthis phase, In 2018. March and mobile fixed prepaid migrated billing new converged servicesthe to this secondsystem.The phase of the of included migration project services the new to fixed post-paid MODERNISATION MODERNISATION OF ENTERPRISE IT INFRASTRUCTURE IT scalable flexible, a of In pursuit digitisedenables a that environment the continued BTC ecosystem, modernised a towards evolution The Infrastructure. Enterprise IT first Uptime a establishment of Centre II Data Tier CertifiedInstituted turned has now focus and is complete, the the commercialisation to of associated including products various BTC services and cloud for colocation servicesthe from of Migration clientele. services hardware IT current internal withinvirtualised environment the to and has begun centre new data the the 2019-2020 will through continue a be to continues BTC year. financial servicesand digital in cloud leader itsresulting modernisationthe of from Infrastructure. Enterprise IT GSM900 – 6Mhz, GSM900 – 6Mhz, - 12Mhz, GSM1800Mhz - 10Mhz, UMTS2100 – 10Mhz, LTE1800 – 40Mhz FixedLTE2300Mhz – 30Mhz 3500Mhz Point-to-Multi-Point BTC also to invest continued in the BTC services LTE 4.5G of deployment network The LTE country. the across fastestprovidesthe mobile allocated speed the within broadband and is being spectrum in delivered leadingthe partnership one of with The rollout vendors. international ensures adequate in coverage all and LTE The 4.5G locations. targeted system ubiquitous provide VSAT the all to localities the within connectivity including Botswana boundaries of places Okavango the in hard-to-reach The and farmingremote areas. Delta VSAT and network fixed broadband delivering systems capable of are 50Mbps. to speeds up internet also is usedtechnology LTE The 4.5G fixed wireless of deployment fast for or X broadband (Wireless the to has not FTTX that areas in WTTX) The wireless technology yet. reached and WTTX of combination useda is dependingthe on Point Point-to-Multi respect solutions with the of suitability service and connectivity type the of to customer. particular a by required This spectrum enables BTC to provide provide to enablesspectrum BTC This speed wireless highest Internet the the services at across the country experienced ever throughput highest in Botswana. SPECTRUM & LICENSES followingthe on spectrum has BTC frequencies: BTC continued to deploy FTTx in FTTx deploy to continued BTC access to facilitate urban areas ever-growingthe high-speed for In collaboration market. broadband started already has BTC BoFinet, with Homesto (FTTH) Fibre of deployment all that is expected It and businesses. FTTC, either cities by will be covered solutions wireless broadband FTTH or year, financial 2019-2020 duringthe villages and towns will while major wireless with be covered broadband This will (WTTX) technologies. of quality the improve significantly high- the to experience due customer the of capability speed broadband systems. new technology OUR MOBILE AND FIXED MOBILE OUR NETWORKS gaps and for twodensification in the and gaps for Gaboroneand Francistown. cities, also its has improved fixed BTC services the broadband to with Fibre areas. deployed in urban “X” (FTTx) service commissionedVSAT its BTC Satellite Throughput High usesa that speed broadband high (HTS) delivery in the country. anywhere connectivity

BTC mobile network coverage coverage mobile network BTC continues to be the widest in the the 96% of and covers over country significantly has BTC population. footprint, coverage increased its LTE semicovering urban and urban villages across and locations sites 365 over with Botswana, year the end of commissioned as at sites will Additional review. under 2019/20 be deployed duringthe address to coverage year financial NETWORK COVERAGE AND NETWORK COVERAGE RELIABILITY As a customer-centric and proactive and proactive customer-centric As a has BTC operator, mobile network an integrated Fault implemented and Performance Management strategic as a Solution Management integrated network the of initiative This was platform. management and of the quality done to improve network the of visibility overall ensure monitoring Continual performance. these has helped in of guidingthe capacity additional installation of thereby needed, is most it where to resolving constraints. capacity

The continual enhancement of the telecommunications environment is environment telecommunications the of enhancement continual The isand industry telecommunications the competitiveness in basis for a ensuringand experience improving customer of element important an satisfaction. customer INFRASTRUCTURE the of ability the to enhance continued BTC the radio accesssupport to transmission network stations fibre connecting with base by more network thus transmission, microwave and high-speed IP service and extending access. improvingof the quality TELECOMMUNICATIONS TELECOMMUNICATIONS continued OF THE MODERNISATION Technology Unit Review Unit Technology OPERATIONAL PERFORMANCE REVIEW

60 63 72 78 92 66

Board of Directors of Board Management Executive Human Resources Report Report Relations Stakeholder ReportSocial Investment Corporat 86 and interactivity connectivity Faster SUSTAINABILITY REVIEW

62 These here Icons 65 SUSTAINABILITY REVIEW 2019 SUSTAINABILITY 05 Sustainability must view, In our inherently go beyond short-term is about It thinking and action. philosophy deep-rooted drivinga shareholder long-term create to value across and stakeholder environmental, social, ethical, cultural spheres. and economic our we review section, this In business sustainability. SUSTAINABILITY SUSTAINABILITY REVIEW PEOPLE AND ENGAGEMENT

64 67 6 9 5 8 4 7

Non-Executive Non-Executive Director THARI G. PHEKO G. THARI MASUNGA ANTHONY SERTY LEBURU SERTY ector ector Dir MR. Managing MR. Independent Dir MS. Independent

7. 7. 8. 9.

Non-Executive Non-Executive Non-Executive 1 BAFANA MOLOMO BAFANA LETSHWITI MACLEAN CHOICE PITSO ector ector ector MR. Independent Dir MS. Independent Dir MR. Independent Dir

5. 6. 4. 4.

2 Non-Executive Non-Executive Non-Executive RANJITH PRIYALAL DE SILVA DE RANJITH PRIYALAL ANDREW JOHNSON ector ector ector, Chairperson ector,

MR. MS. NTAKHWANA Independent Dir MR. Independent Dir Independent Dir

2. 2. 3.

1. 1. - BOAKGOMO LORATO The Board’s individual duties are primarily are duties individual The Board’s ensureto then purpose and BTC’s define to the execute to strategy is in place robust a organisation.the purposelong-term of SUSTAINABILITY REVIEW

Board of DirectorsBoard of

66 69 oss acr

April 2012 Laurelton Laurelton

Motswana - Human Resources HR consultancy. HR

Pitso Human Resources is Head of INDEPENDENT NON-EXECUTIVE INDEPENDENT DIRECTOR Chairperson Committee Appointment: Date of Nationality: MS. CHOICE PITSO MS. Ms. Botswana Diamonds Botswana, (BAMB), Board Marketing Agricultural Her Mining Company. and Debswana experience includes development their human resourcesstrategies, of integrated implementation human resources of areas functional learningresourcing, and development, succession & management, talent rewards staff and remuneration as as well and employee relations, leadership operational HR of provision and internal in Human Resource an MSc She holds Universitythe from Management Social BA a and UK, Manchester, of Sciences Universitythe degree from of member alsoShe is a Botswana. of People Management of Institute the and (IPM) Africa, South previously for Secretary servedas Publicity Human of Institute Botswana (IHRM).Resources Management (HR) at Metropolitan Botswana. Botswana. Metropolitan at (HR) years HR general of 15 She has over and diverse industry management private experience in Government, and parastatals ranging from Mines, of Department October 2016 October Motswana Technology and Technology . Letshwiti is a respected Letshwitia is . INDEPENDENT NON-EXECUTIVE INDEPENDENT DIRECTOR Member: Committee Investment Appointment: Date of Nationality: entrepreneur whose expertisespans entrepreneur commercial business management, and development, and industrial He appraisal and monitoring. project setting Avis instrumentalwas in up Rent-a-Car. several of Director a He is currently Mining namely: Kalahari companies, Diamonds Laurelton and Machinery, Tiffany subsidiary of Botswana (a listedthe on company a and and Co. and Avis Exchange), Stock New York Rent-A-Car. of number serveda on He has including listed companies, of Boards Holdings Insurance Botswana the he was which of Group, (BIHL) Limited Member Board alsoa He was Chairman. Housing Botswana (BHC), Corporation of entities. among other of Bachelor Letshwitia holds Mr. Arts Administration from degree in and Botswana Universitythe of and campus) (Botswana Swaziland professionaland leadership other qualifications. Mr MR. MACLEAN LETSHWITI MACLEAN MR. May 2017 May - Audit and - Audit Risk Sri Lankan Human Resources etired, he has over 36 years of years 36 of he has over etired, . De Silva is a Chartered Accountant Accountant Chartered a is Silva De . Nationality: INDEPENDENT NON-EXECUTIVE INDEPENDENT DIRECTOR Chairperson Committee Member: Directors AffairsCommittee, and Governance Committee Appointment: Date of experience in the profession mainly professionthe mainly experience in PriceWaterhouseCoopers at spent was he where (PwC) Botswana, yearsand Chief 19 for partner a While years. 9 for Operating Officer served he Botswana, still PwC with Audit/Tax clients portfolio large of a Advisory Businessand provided privately- large Services many to owned corporates in Botswana. an Independent is Silva De Mr. Old three for Director Non-Executive and subsidiaries in Botswana Mutual Participation CapitalDebt Funding Limited. numerous of member a He is professional bodies including, Charteredthe of Associate Member Accountants Management of Institute of and Fellow Member UK (CIMA) of Chartered of Institute Botswana the Accountants and the (BICA) Institute Sri Lanka. Accountants Chartered of of Mr whose expertise Auditing, covers Financial Planning, Tax Accounting, Investigationsand Fiscal Management. Now r MR. RANJITH PRIYALAL MR. DE SILVA May 2017 May - Technology and - Technology South African South Investment Committee Investment Appointment: Date of INDEPENDENT NON-EXECUTIVE INDEPENDENT DIRECTOR Chairperson Nationality: Mr. Johnson is a telecommunications telecommunications Johnson is a Mr. industry the in expert whose career special a with years, 34 spans over telecommunications on mobile focus development. infrastructure and fibre Technical as Chief He has worked Chief the MTN Group, for Officer MTN Rwanda, for Officer Executive MTN for Officer Technical and Chief positions as other as well Uganda, that, to Prior the MTN within Group. telecommunications as a he worked Eskom. for engineer Johnson business has extensive Mr. management and technology Sub- consultingthe experience within regions and the Pacific Africa Saharan African the countriesfor different 18 in and Bank World Bank, Development He has operators. and entities other at as Principal Consultant worked Consulting in Telecomms Tubitayeho years. 11 the past for Africa South for Director a servedas He previously Cote subsidiaries in Cameroon, MTN and Uganda, Rwanda Nigeria, d’Ivoire, and MTN Group workingwhilst for MTN International. Electrical (Eng) BSc Johnsona holds Mr. University the of from Current, - Light with Africa, Witwatersrandthe South in specialisation a in Telecommunications and Alternative Energies. MR. ANDREW JOHNSON MR. October 2016 October - Directors Affairs and Motswana Human Resources

Date of Appointment: Date of Nationality: Member: Committee Board ChairpersonBoard Chairperson Governance Committee INDEPENDENT NON-EXECUTIVE INDEPENDENT CHAIRPERSON DIRECTOR, She has been associated with the the associatedShe has been with 2008 August FirstRandsince Group she servedwhere as Board a Member in Committee Member and Board the she is Currently, several countries. Dairy. Sally of Managing Director a has Boakgomo-Ntakhwana Ms. degree Commerce from of Bachelor an and Botswana Universitythe of College in Baltimore, Loyola from MBA several other and holds USA, professional qualifications. Ms. Boakgomo-Ntakhwana is a career career a is Boakgomo-Ntakhwana Ms. whose professional experience banker She previously years. 30 spans over FNB CEO Deputy of of position a held and Portfolio International Executive this to Prior Emerging Countries. for First National CEOthe she was of role, Limited. Botswana Bank MS. LORATO BOAKGOMO - BOAKGOMO LORATO MS. NTAKHWANA continued SUSTAINABILITY REVIEW Board of DirectorsBoard of

68 71 January 2017 January Motswana EXECUTIVE DIRECTOR DIRECTOR MANAGING Appointment: Date of Nationality: As Managing Director, Mr. Masunga Masunga Mr. As Managing Director, with leading the is tasked BTC of and Growth Transformation shareholder BSE listingpost deliver to He provides overall leadership value. including ensuring business, the to the highest to adherence corporate management standards, governance systems all financial and technical of and and development and processes, human capital. of management Company’s the previously He was Acting Group Operating Officer, Chief and Commercial General Manager Manager, Privatisation Programme founding the and is General Manager Mobile). beMOBILE (now BTC of years’ experience in 20 He has over and Telecommunications field of the Masunga Mr. Technology. Information degreeScience Computer BSc a holds McGill Universityfrom (Canada)and University De Montfort from an MBA Universitythe Alumni of an He is (UK). Stellenbosch Businessof School, Executive their having completed Programme. Development MR. ANTHONY MASUNGA ANTHONY MR. Motswana Technology and Technology INDEPENDENT NON-EXECUTIVE INDEPENDENT DIRECTOR Member: Committee Investment Appointment: Date of 2018 September Nationality: Mr. Thari G. Pheko is the foundingthe is Pheko Thari G. Mr. and Member Executive Chief Communications Botswana of (BOCRA) Board, Authority Regulatory the of Executive Chief the having been Botswana regulator, sector-specific Authority Telecommunications (He successfully years. six for (BTA), to from BTA transition the managed wider a saw of adoption which BOCRA, mandate.) integrated ICT regulatory the on consulted has Pheko Mr. and Society ICT Information and the Strategy Development ICT Policy National the of formulation Botswana. for Membership held Board He previously President He was Post. Botswana of Technology Information Botswana of of Commissioner and also a Society Commission National Botswana the an ICT Consultant He is UNESCO. for serves Foundation. and on Boitumelo (Hons) in Business BSc. a He holds Finance and Economics and an MSc. Systems Information in Management He UK. Anglia, East Universityfrom of Executive attended numerous has from Programme Management University of CapeTown, University of Rutgers University Canterbury, Kent professional institutions. and other MR. THARI G. PHEKO G. THARI MR. April 2009 Motswana Audit and Risk Committee, Committee, Risk and Audit Nationality: INDEPENDENT NON-EXECUTIVE INDEPENDENT DIRECTOR Member: and Investment Technology Committee Appointment: Date of Ms. Leburu is currently the Executive Executive the Leburu is currently Ms. Accountancy Botswana of Director previously She was College (BAC). Officer- Executive Chief Deputy a Housing Botswana Servicesat Support She served as Corporation (BHC). at Officer Executive Chief Deputy Botswana of CharteredStandard Bank to joining Prior before joining BHC. 17 she spent Standard Chartered Bank, years diamond miningsector. the in areas all in experience She has broad governance, finance, strategy, of management, risk chain, supply administration and general leadership. Bachelor a Leburu with graduated Ms. the degree Commerce from of Fellow a is and Botswana University of a (FCMA) with Accountant Chartered qualification. CIMA MS. SERTY LEBURU SERTY MS. Motswana Audit and Risk and Risk Audit

INDEPENDENT NON-EXECUTIVE INDEPENDENT DIRECTOR - Member Directors AffairsCommittee, and Governance Committee Appointment: Date of 2018 September Nationality: MR. BAFANA MOLOMO BAFANA MR. Mr. Molomo is co-founder and is co-founder Molomo Mr. Aleyo Capital, Managingat Partner Botswana-based equity private a the previously He was fund manager. Botswana at Officer Investment Chief (BDC) Corporation Development Capital.having Vantage from joined VPB in with he was that, to Prior senior as a and Namibia Botswana professionalinvestment their in He began his team. equity private as an with analyst investment career Fleming Asset Management. experience in He brings extensive finance, corporate equity, private finance. and project strategy of Bachelor a Molomo earned Mr. and Finance) (Economics Commerce Universitythe of from an MBA and Post- also He a holds CapeTown. in Business from Diploma graduate Gordon Pretoria’s Universitythe of He has BusinessScience. of Institute roles Board in of number alsoa held property, ICT, healthcare, hospitality, companies.and beverage FMCG

continued SUSTAINABILITY REVIEW Board of DirectorsBoard of

SUSTAINABILITY REVIEW Executive Management

72 75 GENERAL MANAGER ENTERPRISE MANAGER GENERAL (A) SALES November Appointment: of Date 2018 4 13. LEBUDI KGETSE LEBUDI 13. Mr. Kgetse’s role is to develop and develop Kgetse’sto is role Mr. Sales Strategy robust maintain a segment Enterprise Market the for and Government (Corporates, will drive Licensed Operators)that thus sales and revenue growth, of the delivery contributing towards BTC. for value shareholder positioningalso He is responsible for to be able to compete BTC competitive a highly in effectively Fixed for market telecommunications and Mobile products. years’ experience in 19 He has over industry Telecommunications the BTC at his career of most spent having He has ranks. the and rising through Relationship experience in Customer and Back Office (Front Management Office) and Strategy Development, others. amongst Business of Master a He holds North from Administration (MBA) also He Africa). University (South West degree Commerce of Bachelor a holds Botswana. University the of from include: qualifications His other Development Management Senior Universitythe of from Programme in Associate Diploma Stellenbosch, Banking Institute Botswana from Prince2 Foundation and Bankers of Management Certificate in Project APGM Innolead Consultingfrom / International. CHIEF COMMERCIAL OFFICERCHIEF COMMERCIAL April Appointment: 2018 Date of 3 He has 19 years of experience in the the in experience years of 19 He has and industry, telecommunications strategy in experienced He is highly business execution, and formulation development/ product development, planning technology management, and mobile and design (fixed, and project convergence) technology management. Business of Master a He holds Administrationthe degree from South College of Management Bachelor and a (MANCOSA) Africa Engineering (Hons) degree of Systems in Telecommunication He University (UK). Coventry from the University Alumnus of is an Stellenbosch Businessof School Programme. Development Executive 3. EDWARD WICKS EDWARD 3. Mr. Wicks oversees Wicks commercial the Mr. directingand driving BTC, arm of performance Dynamic the in Consumer Sales, Enterprise Marketing, Service functions of Salesand Quality He is organisation. the within BTC’s of delivery the responsible for Strategy. Commercial the He has been in for industry telecommunications years and has in-depth 24 than more and expertise knowledge in most This aspects telecommunications. of includes Management, Commercial Product Marketing, Strategic Business Development Development, various He has held and Distribution. and directorships in positions senior As strategic numerous a companies. also he has been consulting expert, involved in launchingtwo new mobile networks. Commerce of Bachelor a He holds Universitythe (Hons.) degree of from Edinburgh (UK). CHIEF OPERATIONS OFFICER CHIEF OPERATIONS 2017 October Appointment: of Date MANAGING DIRECTOR MANAGING January 2017 Appointment: Date of 1 2 2. ALDRIN SIVAKO ALDRIN 2. ANTHONY MASUNGA ANTHONY Mr. Sivako is responsible for the the is responsible for Sivako Mr. the business, arm technical of being Systemsthe Information Division, Technology Division, and the Services, Security Corporate He provides Office. Transformation leadership in implementing BTC’s SystemsInformation and Technology programmes corporate Strategy, security corporate portfolio delivery, initiatives and identifying and forging partners.strategic with relationships As Managing Director, Mr. Masunga Masunga Mr. As Managing Director, with leading the is tasked BTC of and Growth Transformation shareholder BSE listingpost deliver to He provides leadership overall value. including ensuring business, the to the highest to adherence corporate management standards, governance systems all financial and technical of and and development and processes, human capital. of management Company’s the previously He was Acting Group Operating Officer, Chief and Commercial General Manager Manager Privatisation Programme founding the and is General Manager Mobile). beMOBILE (now BTC of years’ experience in 20 He has over and Telecommunications field of the Masunga Mr. Technology. Information degreeScience Computer BSc a holds McGill Universityfrom (Canada)and University De Montfort from an MBA Universitythe Alumni of an He is (UK). Stellenbosch Businessof School, Executive their having completed Programme. Development 7 O MASOKO 6 Management EAD KGOSIEMANG OLYN BOGATSU 13 eneral Manager, Technology eneral Manager, Audit Internal eneral Manager, Sales Consumer eneral Manager, Finance eneral Manager, G and Risk BOITUMEL G ABEL G PETER G SAME R

12 11. 11. 13 10 10 2 12

11 4 y Secretary y MGANGA TSE M. MONAGENG TSE M. ON DISANG tems 3 eneral Manager, Marketing eneral Manager, Information eneral Manager, General Manager, Support Support General Manager, Services & Human Resources MALEBOGO MOSINYI G NELS G Sys SIDNEY Compan MAMO

9 7. 7. 8. 6. 6. 10 5 8 9 MASUNGA 1 Director GETSE SIVAKO O MOKGOSANA Commercial Officer Commercial Operations Officer Officer Operations WARD WICKS WARD

eneral Manager, Enterprise (A) eneral Manager, Transformation eneral Manager, G KUTL G ED Chief LEBUDI K ALDRIN Chief ANTHONY Managing

4. 4. 5.

3. 3.

1. 1. 2. BTC is proud to have an Executive an Executive have to is proud BTC wields unrivalled that team Management expertise and experience and who are on deliver to ambition their in united are Strategy. BTC’s continued SUSTAINABILITY REVIEW Executive Management

74 77 GENERAL MANAGER FINANCE MANAGER GENERAL November Appointment: of Date 2010 13 13. ABEL BOGATSU ABEL 13. revenue growth. She was previously previously She was revenue growth. Sales overall the responsible for business.the of function years’ experience 23 She has over industry, telecommunications in the BTC. at mainly spent Arts Social in of Bachelor a She holds Sciences Universitythe of degree from Masters as well as a Botswana Degree in Science Management in Strategic She is Derby. Universitythe of from the University of of also an alumna Development Stellenbosch Executive Graduate and UNISA Programme Business LeadershipSchool of (SBL) Mr. Bogatsu oversees operation the Mr. all financial of and management systems and processes thewithin Treasury, includes which business, and Financial Credit Budgeting, compliance ensure to etc., Control, and financial regulatory with also He provides reportingstandards. the into professional finance input BTC a of and maintenance creation deliversBusiness that Strategy value. shareholder years’ 24 than He has more private the experience in both He possesses sectors. a and public degree Commerce in of Bachelor UniversityAccountingthe of from the Fellow of and is a Botswana Chartered CertifiedAssociation of Accountants and the Botswana (FCCA) He Accountants (BICA). of Institute the University Alumnus of is an Stellenbosch Businessof School Programme. Development Executive

GOSIEMANG K SAME READ GENERAL MANAGER CONSUMER CONSUMER MANAGER GENERAL SALES 2017 October Appointment: of Date GENERAL MANAGER INTERNAL INTERNAL MANAGER GENERAL MANAGEMENT RISK AND AUDIT 2011 September Appointment: of Date 11 12 12. BOITUMELO MASOKO BOITUMELO 12. 11. Ms. Masoko’s role is to create and create to is role Masoko’s Ms. the strategy for targeted maintain a residential (mass, market consumer She is responsible and SMME). developingand implementing for sales comprehensive plan for a and retention acquisition, customer Mr. Kgosiemang’s role is to ensure ensure to is role Kgosiemang’s Mr. robust a and maintains has BTC that He Strategy. Audit and Internal Risk overseesAudit and Internal the Risk Management providing BTC Division, an independent with and Board assurance on risk and objective and controls internal management, processes.governance Reporting the Managing to Director ensure to He has Board, the and sustainability business continuity, best practice and compliance with corporate and governance reporting standards. years’ experience in He has close 23 to Management. and Risk Audit Internal the of Associate Member an He is Management Chartered of Institute Fellow a and Accountants (CIMA) UK, Institute Botswana the of Member He Accountants Chartered (BICA). of of Institute the of member alsoa is and Auditorsthe (IIA) Internal USA (IRM) in Management Risk of Institute UK. the MMAMOTSE M. M. MMAMOTSE MONAGENG GENERAL MANAGER TECHNOLOGY MANAGER GENERAL January 2018 Appointment: Date of GENERAL MANAGER - SUPPORT SUPPORT - MANAGER GENERAL SERVICES & HUMAN RESOURCES January 2017 Appointment: Date of 9 10 10. PETER OLYN PETER 10. Mr. Olyn is mandated with planning, planning, with Olyn is mandated Mr. building and managing the BTC vast the of functions operational He is network. telecommunications developingstrategic with alsotasked the BTC and deploy transform plans to achieve to businessnetwork targets. years’ experience in 19 He has over He industry. telecommunications the Engineering in of Bachelor a holds Engineeringand Electrical Electronics He is Botswana. Universitythe of from Stellenbosch the Alumnus alsoof an Management Senior Business School, Programme. Training Development Ms. Monageng provides professional Ms. Human and directs BTC the input Resources an agreed function within supports that strategic framework business of achievement the high promote to bid objectivesa in employee satisfaction and inculcate She is high-performance culture. a strategic providing with alsotasked of in ensuring delivery guidance the safetyhigh standard health and of services.environmental years of 15 than She has more She industry. the in experience Commerce of Bachelor a holds degree majoring Resource in Human Relationsand Industrial Management Technology Curtinfrom University of Postgraduate Diploma (Australia) and a the from Management Strategic in Derby. Universityof COMPANY SECRETARY COMPANY 2018 May Appointment: of Date 8 8 SIDNEY MGANGASIDNEY 8 Sidney is tasked advisingwith the is tasked Sidney on governance and Company Board matters and providing secretarial He also services the Board. to oversees the Legal and Regulatory compliance ensure to BTC of functions statutory and with regulatory requirements. years’ 16 cumulative He has over experience in legal, sector private and compliance and regulation governance. corporate Laws of Bachelor a holds Sidney Universitythe of (LLB) degree from Associate and is also Botswana an from Secretary Chartered Company CharteredSecretaries of Institute the and Administrators Southern of also a Sidney completed (ICSA). Africa Advanced CertificatePostgraduate in Botswana the from Audit & Tax He has College (BAC). Accountancy Management Senior also undergone (SMDP) Programme Development Universitytrainingthe of with Stellenbosch Business School. He has a Bachelor of Science Science of Bachelor a He has Engineering Clarkson from Computer He is States). (United University, certifiedScorecard Balanced a Balanced the with practitioner certified COBIT a Institute, Scorecard professional and a practitioner He has undergone ISACA. of member Development Management the Management Programme and Senior the with Programme Development Stellenbosch. University of GM INFORMATION SYSTEMS SYSTEMS GM INFORMATION September Appointment: Date of 2018 7 7. NELSON DISANG NELSON 7. organisations including BIDPA, Bank Bank organisations including BIDPA, before joining BTC and KBL, Gaborone, in 2016. Commerce of Master a She holds degree Practice in Management CapeTown. University the of from degree in Master’s alsoShe a holds degree in and Bachelor’s Economics UniversitySciencesthe Social from alsoand has completed Botswana, of Development Management Senior her the Programme through (SMDP) Stellenbosch. University of Mr. Disang directing is responsible for Mr. Systems overall Information BTC’s BTC’s that to ensure Strategy (IS) investmentsIS the aligned to are He businessstrategic initiatives. frameworks, develops IT governance policies ensuresand implementation secure and enable the efficient that Information BTC utilisation of platforms. Technology Information the He has been in 14 for industry (IT) Technology years knowledge and has in-depth IT and expertise management, in IT and development strategy planning, resource optimisation, risk execution, realisation. optimisationand benefit in positions various He has held companies including; Huawei Mascom - Botswana, Technologies Botswana recently, most and, Wireless, (BPC) Corporation he where Power department. IT Head of was

Date of Appointment: April Appointment: 2019 Date of GENERAL MANAGER MARKETING MANAGER GENERAL Date of Appointment: October 2018 October Appointment: of Date GENERAL MANAGER MANAGER GENERAL TRANSFORMATION 5 6 6. MALEBOGO MOSINYI MALEBOGO 6. 5. KUTLO MOKGOSANA KUTLO 5. continued SUSTAINABILITY REVIEW She has 12 years’ experience in 12 She has She Researchand Marketing. conceptualisationoversees product and enterprise consumer and insights, and brand MFS development, product various in She has worked marketing. Ms. Mosinyi is responsible for is responsible for Mosinyi Ms. developing Strategy the Marketing positioning Plan, and Marketing a in effectively compete to BTC and mature competitive highly market telecommunications and Mobile products Fixed through and services. He has over 15 years’ from experience 15 He has over He miningsectors. the and logistics from Accountancy of Bachelor a has certifieda He is Botswana. Universityof Balanced and a Prince2 Practitioner alsoan He is Graduate. Scorecard London Businessthe Alumnus of EmergingSchool Leaders Programme. Mr. Mokgosana is responsible for Mokgosana Mr. transformational, driving of the delivery programmes in line withstrategic also He is Strategy. Corporate BTC’s ensuringsynergies with and tasked BTC’s in line with collaborations Strategy Management, Corporate and and Strategy Digital Innovation & ProcessesachieveQuality to functions high service standards.customer Executive Management

76 79 SUSTAINABILITY REVIEW 2019 SUSTAINABILITY and associatedand communities. improving stakeholder satisfaction levels. improving stakeholder in its recruitment, and wherever possible, and wherever in its recruitment, This is achieved by providing the best serviceand providing best the by achieved This is Human ResourcesHuman BTC adheres to establishedBTC policies and guidelines BTC is an equal opportunity, equal access equal employer. an equal opportunity, is BTC BTC values its employees pursuesand BTC employment practices that are are designed to practices that employment BTC seeks to benchmark itself against industry best practice. industry against itself benchmark to seeks BTC who are able to have a positive impact on BTC on BTC impact positive a have to able are who attract, retain and develop talented employees talented develop and retain attract,

78 81 by Average Employee Cost Decreased 3.65% 924 2017 871,000 402,000 1,748,000 920 2018 915,000 1,703,161 440,000 911 2019 423,911 822,000 1,589,707 BTC strives high to become a BTC such, as performing organisation and, continues the discipline to improve The managing performance. of has tool performance management view towards been a reviewed with user-and more simple making it effective is more tool The new friendly. levels and will improve and efficient and boost employee engagement of management levels, competency BTC. within culture has been implemented tool The performancethe and will improve Company. the in culture management aimed at providing employees at with aimed personal and development broader life. of quality their improvements to to enhancing is committed local BTC and skills telecommunications in the of provision the through fields ICT training. and technical management PERFORMANCE MANAGEMENT

Total Employees at 31 March 31 Employeesat Total Productivity Employee Revenue per EMPLOYEE PRODUCTIVITY EMPLOYEE Average Employee costAverage Value created per Employee per created Value LEARNING AND TRAINING Besides formal skills job-related encouragestraining BTC development, and provides employees learning with opportunities e-learning through on upskilling focus and that initiatives enable to leadership development, and outside inside both lead, to them also conducts BTC organisation. the and courses workshops seminars, BTC employees are subject to and to subject employees are BTC conditions comprehensive by governed Conduct Code of a and employment of unethical or prohibits corrupt that staffto encourages BTC behaviour. themselves manner an ethical in conduct lives. daily during businesstheir and in Trust The LeadingSpeed of with be continues to programme (LSOT) trust staff to promote to rolled out turn which in organisation, the across and agility. execution speed of leads to CODE OF CONDUCT

Resources continued Human Human Executive Management, in conjunction in conjunction Management, Executive the Human with Resources and and Remuneration Nomination reviews continuously Committee, schemes. and incentive reward BTC’s Appraisal Performance a has BTC usedare which outputsthe of System, training employeesas inputsand for administering the rewards. REWARDS AND REWARDS REMUNERATIONS This has resulted in deliveringwork a that environment high- promotes a performance culture. ENVIRONMENT quest to drive a In a high-performance continues BTC culture, its revamp to offices in outstationsthe enable to optimise only not to BTC infrastructure usethe of costs, rental and reduce alsoto a provide but for environment conducive employees. THE WORK THE WORK SUSTAINABILITY REVIEW

80 83 349 349 Females conducts safety surveys independent the business. throughout also undertakes financial literacy BTC trainingand employee counselling, alcohol and includingdrug abuse, for voluntary carriesand periodically out tests diseases non-communicable for and wellness health activities. of as part Males vs Females Gender Males vs Females MalesGender

562 Males 562 Total Males & Females & Males Total 11 109 HEALTH, SAFETY AND AND SAFETY HEALTH, WELLNESS and safety to health is committed BTC itssocial as part of workplace the in employees towards and responsibility strives that to ensure BTC customers. understanding clear a everyone has constantly BTC safety. on, and focus of, tests safety performance and and regularly methods operational 217 198 174 138 31-35 36-40 41-45 46-50 51-55 56-60 Age Analysis Age 63 26-30 1 18-25 0

150 100 250 200 Number of Employees of Number on BTC’s performance over the past past the performance over on BTC’s areStaff given quarterly updates year. projects on performance key against newsletter. an internal through social interaction also promotes BTC among employees through sporting of variety participationa in codes sports and inter-country involvingcompetitions Botswana, Swaziland and Namibia. Lesotho, 7 4 49 60 76 141 62 136 71 103 6969 31-35 36-40 41-45 46-50 51-55 56-60 be reviewed on a yearly basis to ensureto basis yearly a on be reviewed relevant. and is up-to-date it that EMPLOYEE ENGAGEMENT ENGAGEMENT EMPLOYEE continuesto The Managing Director operations toursundertake to BTC with meet to country the across staff and cascadethe Corporate objectivesand clear with Strategy that these fora is at It deliverables. staff informs Managingthe Director 15 26-30 48 0 Male Female 1 18-25 0

20 80 60 40

120 140 160 100 Number of Employees of Number 160 140 134 120 BTC has developed a Succession Plan a has developed BTC strengthening leadership of way a as in managingassist This will capability. leadershipthe in exposure cadre risk SuccessionThe Plan will going forward. BTC is committed to recruiting, recruiting, to is committed BTC developingand retainingmanaging, talented employees an to create workplace. optimal PLANNING SUCCESSION 102 96 100 87 82 71 71 68 58 56 38 40 60 80 32 20 10 2 4 Male Female 0 0

0-5 Length of Service & Gender Analysis Service & Gender of Length Team BTC Analysis of & Gender Age 36+

6-10 11-15

31-35 21-25 16-20 26-30

Length of Service (year) Service of Length BTC has developed and is in the the and is in has developed BTC implementing the process of Framework. Management Talent processThe implementation entails assessing talent the current requirementsand challenges in depth, assessingsegmenting and the internal assessingsuccession talent, the bench and developing current strength, plans. growth TALENT MANAGEMENT TALENT continued SUSTAINABILITY REVIEW Human Resources Human

82 85 Fire 54 First Aiders Marshals and Safety, Health Safety, trained as trained representatives & Environment & Environment ACTIVITY CONTROL PESTS sites; Calland Galoshop; Centre followingthe BTC at rooms Rats in equipment control Jwanengand Mmopane. Gantsi, at: dish in microwave removal Beescolony Gaborone West. Engineeringat Centre Technical at situated facility Management Waste a license for a Acquired Corrective Measures ENVIRONMENTAL ed an incident of faulty of an incident ed ational with minor injuries minor with ational e alarm e C Occup Manag fir

- - -

4 1 Accidents ar 1 COMMENTS eracy, depression, World Safety Talk, Hypertension, safe Hypertension, Talk, Safety World depression, eracy, ted Inter - Telco Games, participated at National eventssuch National participatedat Games, Telco - Inter ted e – employment medicals and high risk annual medicals were were annual medicals and high risk medicals e – employment wo (2) ill health retirements cases recorded this year. retirements caseswo (2) ill health this recorded 8 employeesassisted were counselling with services. male circumcision, HIV/AIDS testing, breast cancer, prostate cancer prostate cancer cancer, breast testing, HIV/AIDS male circumcision, drive. and blood donation Pr employees heights those working workingand at for at conducted mines. Debswana T Financial Lit Hos Gaborone Diacore Marathon, Y-Care, walk, Foundation as BTC Jwaneng bush walk. and Walk Makgadikgadi 1

• COMMENTS / NOTES COMMENTS sites 15 of sites out BTC (8) eight at drills fire Conducted representatives MarshalsSHE (Fire trained and First (54) four – Fifty Aiders) • • • • Accidents

Incident 5 1 NUMBER OF INCIDENTS OF INCIDENTS NUMBER AND ACCIDENTS Accidents& Incidents STATUS

/ 18

Wellness and SportsWellness Day Emergency preparedness Emergency compliance Safety medical health Occupational examination and promotions health Monthly topics motivational Assistance (EAP) Programme Employee TASK /ACTIVITY TASK YEAR HEALTH, WELLNESS & WELFARE WELLNESS HEALTH, continued SUSTAINABILITY REVIEW Human Resources Human

84 87 FORUMS EXCHANGE EXCHANGE SERVICENEWS (X-NEWS) FOC WORKSHOPS INVESTMENT BO GROUPSUS EXCHANGE STOCK TSWANA AND SOCIAL AND MEDIA SOCIAL AIRS UPDATES BR COURT P AND F WEBSITES RADIO T MEETINGS EAKFAST INCONFERENCES ARTICIPATION VISITS ESY SHOWS ALK

WITH INSTITUTIONAL INVESTORS WITH INSTITUTIONAL WORTH HIGH NET SELECT WITH SHAREHOLDERS ST FOR FOR ANNU MEDIA AFF ADDRESSES ONE-ON-ONEMEETINGS MAL ONE-ON-ONEMEETINGS MAL MEETING GENERAL AL BRIEFINGS ANDANALYSTS’ During the year under review, BTC developed and implemented stakeholder engagement plans using engagement the stakeholder developed and implemented BTC Duringreview, under year the following platforms: ENGAGEMENT PLATFORMS ENGAGEMENT The engagements are a proactive open communication platform offering an opportunity to engage, listen to and and to listen to engage, offering platform an opportunity open communication proactive a are The engagements the and concerns address stakeholders. issueseffectively of RESPONSIBILITY RESPONSIBILITY A CORPORATE AS CITIZEN THAT BACK GIVES BATSWANA TO AND SUPPORTS THAT INITIATIVES LIVES. UPLIFT BUSINESS BUSINESS SUSTAINABILITY VIABILITY AS AN AS VIABILITY INVESTMENT OPTION WHICH DELIVERS TO VALUE SHAREHOLDERS the BTC’s performance or the way BTC BTC way the performance or BTC’s the conducts its business. and manage improve continually To to are central these that relationships sustainablethe success the business, of its with engages constantly key BTC various Stakeholders through platforms. The an engagements are opportunity and receive information share to BTC for prospects performance, about feedback developments material or any or company. the changes within SUPPORT SUPPORT LOCAL FOR BUSINESSES THESE MESSAGES INCLUDE BTC’S INCLUDE THESE MESSAGES

CONTRIBUTION AND TO, DIGITISATION THE LOCAL OF, ECONOMY BTC IS COMMITTED TO A POLICY OF POLICY A TO COMMITTED IS BTC AND CONSIDERS EFFECTIVE COMMUNICATION AS STAKEHOLDERS WITH ITS ENGAGEMENT TO CRITICAL DRIVER VALUE SIGNIFICANT A SUSTAINABLE BUILDING A COMMERCIALLY BENEFIT. MUTUAL FOR COMPANY In keeping with its commitment to to its with In keeping commitment mutual mattersbe responsiveto of stakeholders, various its with interest Stakeholder established has a BTC to liaise its with Office Relations broad base. stakeholder groups or individuals are Stakeholders and organisationsindividuals that of businessthe in an interest of have of consumption through whether BTC, investment services, and products BTC and goods of provision the in BTC, by affected are who or services BTC to

ADHERENCE TO THE HIGHEST AND CORPORATE GOVERNANCE STANDARDS Report 2019 SUSTAINABILITY REVIEW Relations Stakeholder

86 89 Compliance with Compliance with requirements regulatory as part Engage stakeholder of management serviceImproved turnaround delivery times. reviewing Continuously of the benefit for tariffs stakeholders our Inputs policy ICT to formulation. Introduced a supplier supplier a Introduced management payment process processing Timely of invoices supplier SHE standardsPromote Relaunched Mobile financial service ‘SMEGA’ Significant investmentsSignificant in network modernisation & expansion to improve and network quality enhance customer experience BillingNew Converged Platform New Mobile App. New Performance tool & Management system. rewards Management Talent launched. Programme Company-wide-Strategy cascade Health Safety, Monthly (SHE) & Environment awareness sessions                  Converged solutions for solutions Converged for business customers Improving and health safety standards Licensing and compliance service and Quality of network performance access Wider broadband to servicescommunication reduction Tariff policy ICT Conditions of Service Conditions of progressionCareer Staff welfare Performance Company and Training Development Quality of Service Quality of value offerings Better networks data Faster coverage and wider Makingand simpler it BTC deal with to quicker times) (turnaround Timely payment and payment Timely terms favourable Debriefing on tenders                   MD AddressesStaff Divisional/Departmental meetings – Mowana Intranet Share Point Yammer, Newsletter Company Breakfast meetings Breakfast Formal One-on-One meetings Active participationActive in forums policy Formal periodic bodiesconsultative briefings on engagement Ad hoc matters regulatory through Engagement industry Call centres Retail outlets and Interviews focus groups Social Media SMS Bulk launches Product fairs Consumer Emails Leadership shows road visits) (Patronage Where applicable, site site Where applicable, audits visit                     STAKEHOLDER METHOD OF ENGAGEMENTAREAS OF INTEREST KEY RESPONSE BTC EMPLOYEES SUPPLIERS POLICY POLICY AND MAKER REGULATORS CUSTOMER BTC STAKEHOLDER ENGAGEMENT FEEDBACK ENGAGEMENT STAKEHOLDER BTC % Stakeholder Stakeholder Satisfaction Index currently is at 75 During the year under review, BTC BTC review, under year During the Satisfaction Stakeholder a conducted the which determined Survey 75%. at satisfaction index tant feedback and feedback tant Receive impor issues potential warningearly of Inc shares Company for value and Be the in role major a plays that of development socio-economic Botswana Incr and the Management, Strategy, Directors of Board Build existingwith and potential investors andrease liquidity brand affinity company recognised as a Company the for support ease and maintain relationships Furthermore, BTC hopes BTC Furthermore, to enhance transparency and access to information and operations BTC’s performance to:

A A and responsible citizen corporate impactspositively communities operates in which it live connected to Batswana and anywhere everywhere A A highest corporate governance standards A all stakeholders

Stakeholder Engagement Goal Engagement Stakeholder enables that Company sustainable is a business that option viable investment adheres the to that Company to deliversvalue that Company Through the engagements, the engagements, Through hopes be to BTC recognised as:

THE GOAL OF OUR STAKEHOLDER ENGAGEMENT IS TO TO IS ENGAGEMENT STAKEHOLDER OF OUR THE GOAL AND BUILD RELATIONSHIPS ENHANCESTAKEHOLDER INTRINSICALLY IS THAT COMPANY SUSTAINABLE A IN WHICH OPERATES COMMUNITIES IT TO LINKED APPROACH. SHAREDTHROUGH A VALUE Report continued SUSTAINABILITY REVIEW Relations Stakeholder

88 91 Increased customer Increased customer service points expansion & Network modernisation. CSI agenda Implement the BTC through Foundation the to give back We by community guided areas: focus four Entrepreneurship & Innovation;      Sports & - Wellness Arts - & Culture; - Employee Engagement. Impact of our operations operations our of Impact on the communities Access servicesto Service Quality of Sponsorships and Donations     Corporate Social Corporate Responsibility Programmes and Broadcast Print media launches Product Formal meetings     STAKEHOLDER METHOD OF ENGAGEMENTAREAS OF INTEREST KEY RESPONSE BTC COMMUNITY COMMUNITY AND LOCAL LEADERSHIP Increased investments on future areas growth the business of Developed & Introduced Dividend Policy a monitoringContinuous compliance with of governance corporate standards the Monetisation of network an Investor Introduced portalRelations as part the of Mobile App Diverse information dissemination platforms Developed & media a Implemented strategy & engagement plan        Return on Investment on Investment Return (share price and dividends) PerformanceCorporate GovernanceCorporate Business sustainability Access to information Enhanced (in communication Setswana) Access to Information Service Quality of performance Company Products and Services Covering events and activities            Annual General Meeting and Broadcast Print media Formal one on one meeting (Institutional Investors) One-on-One interviews briefings Media Radio interviews releases Media Annual and interim financial results briefings shows Radio talk launches Product Annual and interim financial results briefings Editors’ forum            

STAKEHOLDER METHOD OF ENGAGEMENTAREAS OF INTEREST KEY RESPONSE BTC SHAREHOLDERS AND ANALYSTS

MEDIA Report 2019 continued SUSTAINABILITY REVIEW Relations Stakeholder

90 93 Trailer Prize Trailer BTC Hawkers Challenge Hawkers BTC 5 in line with with in line n support of projects of support n i causesand BTC Employees and sports Employeesand BTC clubs to participate always invited are CSI projects Foundation BTC the in of culture a inculcate to way a as the Social Responsibility within business. During year the BTC the review under ploughed Foundation than more back P500,000 the Foundation’s focus focus Foundation’s the areas. AND ARTS AND ARTS CULTURE DEVELOPMENT SPORTS AND INNOVATION PROTECTION ENVIRONMENTAL ENVIRONMENTAL 1 2 3 ENTREPRENEURSHIP 4 5 EMPLOYEES Foundation will be focused on Foundation supporting projectsand initiatives followingthe areas: in line with FOCUS AREASFOCUS

The BTC Foundation projectsand Foundation The BTC activities are stakeholder important BTC. for platforms engagement the Strategy, the current Under development of Botswana. of development investstherefore The Foundation in sustainable socially and environmentally projectsand community impactful throughThis is done initiatives. partnerships Non- like-minded with CSIsponsorship of Organisations, Profit support to donations projects and direct causes its in line with areas. focus contributing to the socio-economic socio-economic the contributing to vehicle a is Foundation The BTC delivers its which BTC CSI through view long-term a take We agenda. are CSI; we our to respect with and impact concerned with more immediate with than sustainability Foundation’s The BTC results. the for strategysustainable document strategy to 2020 three-year current International is in compliance with (ISO26000). Standards thrive, and our commitment to to commitment and our thrive, if societiesalso we operate where if strong belief that we can only thrive thrive we can only that strong belief Investment(CSI) is driven by our Investment(CSI) our is driven by Our Social Corporate Our Report Investment (CSI) SUSTAINABILITY REVIEW Social Corporate

92 95 treated to a month-long arts a to treated exchange the Bulawayo National at programme Zimbabwe. GalleryArt in partnershipthe enhanced Locally, artstraining running by nationwide teachers art and artists workshops for and Maun Francistown, in Gaborone, engaged The workshops Tsabong. trainers art and artiststeachers, with new exposingto them of objective the fresharts and ideas training methods, opportunities. A THREE-YEAR THREE-YEAR A

Arts and Culture The winners of the BTC Phonebook Phonebook BTC the The winners of were competitions TAYA and Cover The objective of the partnershipthe project of The objective artsis to enhance the and culture grassrootsat landscape in Botswana and to unearth artistic talent level, the (through youth, the empower running competition, cover Phonebook artists’ workshops of development and the Thapong Artist Year the of The Foundation (TAYA)). Awards value eventssponsored the 2018 the to P277,925. of THE BTC FOUNDATION PARTNERED PARTNERED FOUNDATION THE BTC ARTS WITH THE THAPONG VISUAL CENTRE LAUNCH TO P1.7M. AT VALUED SPONSORSHIP Partnership Thapong Visual Arts SUSTAINABILITY REVIEW Projects Foundation BTC

94 97 Cancer AssociationCancer Botswana INITIATIVE FUNDRAISING DINNER

P8,000 worth P8,000 The BTC Foundation Foundation The BTC the Cancer to contributed Association Botswana (CAB) fund raising initiative buyingby “Happy Hearts” June 2018. - on the 9th of build raiseto to funds was The dinner cancer home for paediatric an interim sufferers and survivors. s to the gala the s to gala ticket of dubbed dinner

Sports and Wellness Development The walk, organised by the CSI-Concepts Foundation raised funds in support CSI-Conceptsthe support raised Foundation organised by funds in The walk, the and underprivileged members children of NGOs, projects, community of Board BTC Trustees, Foundation BTC employees, BTC 100 than More community. Executives participated walk the Members in and BTC SPONSORED DESERT ANNUAL THE 4TH THEMED WINTER 2018, BUSH WALK - GIVING BACK TOURISM AND “SPORTS HELD IN AND EDUCATION” HEALTH TO TO 2018 JULY THE 28TH OF ON JWANENG OF P45,000. VALUE THE Bush Walk Bush Walk 2018 Jwaneng2018 Desert Projects continued SUSTAINABILITY REVIEW Foundation BTC

96 99 This initiative was aimed at encouraging entrepreneurs to enhance their encouragingtheir enhance to entrepreneurs at aimed was This initiative thus airtimeas such and be rewarded, businesses products selling BTC more by sponsored The Foundation services. and products usage of increasing uptakeand P357,000.00. of value the to event the (6) sawsix which concluded post-reporting period Challenge, The Hawker’s Kanye Jwaneng, Gaborone, Charles Hill, Thamaga, successful entrepreneurs from shop/ tuck branded mobile BTC a with each walkingaway and Letlhakeng, service trailer. centre BTC FOUNDATION BTC COMPETITION VENDOR PROJECT THE WITH PARTNERED THE FOUNDATION CAMPAIGN SALES A LAUNCH TO BTC, BUSINESS, CHALLENGE 2018.” THE “HAWKERS DUBBED Students from benefit to computer the lab at inception lab at The Foundation Donated a computer computer a Donated The Foundation computers, (10) ten with laboratory toners and Internet printer, a P129, value of the to connectivity The lab Brigade. Okavango to 549 students at 52 total of a will benefit assist to the potential with inception, studentsmore within the Shakawe in the future. area catchment the BTC attended by was The event Foundation BTC Chairperson, Board ManagingChairperson Director. and BTC 52

Entrepreneurship and Innovation

This is an annual event under under annual event an This is and Transport of Ministry the raising aimed at Communication awareness on the possibilities that and other Internet the usethe of and communication information can bring to technologies (ICTs) as well as societies and economies, digital divide. the bridge to ways Access to to ICT is an enabler held WTISD, 2018 the and Innovation in Mohembo, 2018 May of 17th the on recognises this. (WTISD) THE HELD ON THE WTISD WAS IN MOHEMBO. 2018 OF MAY 17TH INFORMATION SOCIETY DAY DAY SOCIETY INFORMATION WORLD TELECOMMUNICATIONS WORLD TELECOMMUNICATIONS Projects continued SUSTAINABILITY REVIEW Foundation BTC

98 101 Under the new Act, all trusts Act, the new Under the Master accountable to are the High and Court therefore of High the be registeredat must compliance Deadline for Court. end the was Act new the with The BTC 2018. December of all with has complied Foundation Trust new the requirementsthe of and 2018, Act Property Control Trust registered itsduly Deed of 2018. December of 27th the on KEY DEVELOPMENT DEVELOPMENT KEY Governmentthe In 2018, the enacted Botswana of Act Property Control Trust to which is meant 2018, for Trusts curb misuse of launderingmoney and acts, terrorist funding of things. other amongst

KARENG SCHOOL PRIMARY Guest a as invited was Managing Director The BTC P5,000.00. of Donation prize giving 2018 the ceremony at Speaker Employees and Sports Wellness and KARAKUBIS PRIMARY SCHOOLKARAKUBIS PRIMARY valuedand toners printer a school100 pre-primary of chairs, Donation UniversalSchool the Access Service Fund (UASF) P18,374 as part of at and innovation. entrepreneurship encourage to Launch Connectivity BOBONONG BOBONONG COMMUNITY JUNIOR SECONDARY SCHOOL THE FOUNDATION DURING THE YEAR MADE OTHER MADE OTHER YEAR THE DURING THE FOUNDATION AS FOLLOWS: DONATIONS As part of employee engagement and engagement employee As part of sponsored the Foundation Staff, partnering BTC with the raise Runners’to funds for Club initiative BTC the student School Secondary BobonongJunior Community duringspotted running barefooted athletes who were Junction Airport the Marathon. to employee initiative this sponsored The Foundation running of procurement the towards 768 P21, of tune the onThese handed over were athletics gear. shoesand other Kgosi Chairman, Foundation the by 2018 May of 11th the Runners Letsogile BTC Mothobi Michael the and Mothobi Monko. Teko Club representative Mr

Environmental Protection The department has a mandate of conservation, conservation, of mandate a has The department resources forest of and protection management socio-economic and ecosystems the to improve The partnership presents country. the of development on on initiatives which deliver partner to an opportunity Foundation BTC the on deliver turn in and mandate this objectives. environmental

RANGE RESOURCES FORESTRY AND FORESTRY like-minded with to partner an effort In organisations and to participate in initiatives, protection environmental reporting post period, Foundation, the of Memorandum a into entered Understanding of Department the with Resources. Forestryand Range DEPARTMENT OF DEPARTMENT MoU THE WITH Projects continued SUSTAINABILITY REVIEW Foundation BTC

100 GOVERNANCE 102 103

Faster stronger security

Corporate Governance Report 107 King III Principles 124 Risk Management Report 134 105

GOVERNANCE 06 The significance and sound need for corporate protocols governance and practices become increasingly section, In this time. imperative with the well-entrenched at we look and oversight governance, year the in BTC compliance within review. under GOVERNANCE OVERSIGHT AND OVERSIGHT CONTINUITY

104 107 and accountability. and international best practice. international Corporate GovernanceCorporate Statement of Commitment of Statement GOVERNANCE corporate corporate is fundamental ingovernance principles of business ethics, corporate and corporate governance businessprinciples ethics, of BTC is dedicated to the implementation of of implementation the to is dedicated BTC enhance corporate createand enhance corporate governance sustainable value for our shareholdersand our for value sustainable reviewed and improved by and benchmarking acceptedreviewed improved by against and as such, remains committed to ensuring committed remains such, as and manner with integrity, fairness, transparency transparency fairness, integrity, with manner IV Code of Good Governance by the end of the 2020 financial 2020 the Good end of Governancethe Code of by IV reporting. In complying with the guidelines of the BSE Code of BSE Code of the In complying the with guidelines of reporting. effective structures, policies and practicesthat structures, effective Corporate Governance, BTC has complied with the principles of principlesthe of with has complied BTC Governance, Corporate As a listed entity, BTC strives and achieve uphold the to highest BTC listed entity, As a that the Company is managed in a responsible a in is managed Company the that King III and is aligning itself to ensure compliance with the Kingthe King with compliance aligning ensure and is III to itself stakeholders. The Board believes that excellent excellent believesThe Board that stakeholders. year. BTC’s corporate governance practices are continually being continually corporate are practices governance BTC’s year. ensuring sustainable a and successful business,

106 109 APPOINTMENT OF APPOINTMENT DIRECTORS the In making appointments, Board are followed broad principles that and to maintain an are independent constructively that Board vibrant strategieschallenges Management’s and evaluates performance against and applicable agreed benchmarks is balance A conduct. codes of maintained among Non-Executive the which ensures that Directors, these are independent of majority reviews regularly The Board Directors. experience skills, of its mix required as its such qualities and other and demographics sodiversity as to the Board. assess effectivenessthe of self- a of means is by This review whole, a as Board BTC the of evaluation of itscontribution the Committees and Director. individual each their chosenThe Directorsare for wide business acumen and their and experience. skills of range to direction The Board strategic gives appoints the Managing Director BTC, succession planning and ensuresthat appointing Directors, In is in place. achievingemphasis is placed on the experience, skills, necessary balance of knowledge professionaland industry objectives. strategic BTC meet to of selection and appointment The and transparent formal Directors is a the whole for matter a and is process, assisted Board the Directors’ by Affairs and Committee Governance the by approval to subject and is Annual General the shareholders at All company. the of Meeting (AGM) an annual to subject Directors are BTC Succession performance evaluation. planningalso regularly. is reviewed responsibleShareholders ultimately are and the Board the composition of for theinterests is in their that to ensure it constituted. is properly Board Who are Who are Non-Executive Non-Executive ive Directors: Include Being Directorsare who ive Directors: Execut Non-Execut Independent Directors: day-to- the involved in neither are nor BTC, of management day a representativesnominees of or shareholder. involved in the day-to-day day-to-day the involved in in itsare and BTC of management full time employ nominees be Directors who may shareholder a representatives of or

DEFINITION OF INDEPENDENCE Directors Report, this purposes of For classifiedas follows: are • • • BOARD CHARTER a of operatesterms The Board in which is reviewed Charter formal the purpose of annually, and adopted the of conduct the regulate to which is sound business with accordance in corporate principles.governance are Charter the The objectives of all Directors acting that to ensure their of aware are BTC of on behalf and duties responsibilities and the legislation affecting and regulations seeks it Furthermore, conduct. their sound corporate that ensure to principlesgovernance applied are The Directors. the by all dealings in sets the responsibilities Charter to out Directors collectively be discharged by is The Charter and individually. BTC. from upon request available BTC. Non-Executive Directors have Directors Non-Executive have BTC. separately meet to opportunity the as Managing Director BTC the without and when circumstances warrant. Audit and Risk Committee and Risk Audit Human Resources Committee and Investment Technology Committee Directors’ Affairs and Governance Committee The roles of the the ChairpersonThe roles of and the and separate, are Managing Director ensures Board the of composition the precluding authority, balance of a exercising from one Director any decision making. powersunfettered of BTC over full control retains The Board and monitors Management Executive and in the implementation execution is The Board strategies and policies. of assisted in fulfilling its responsibilities the by following Sub-Committees: the for The responsibility and implementation monitoring corporate in BTC governance of which is rests Board, the with assisted above-mentioned the by The delegation Sub-Committees. to Committees authority does of the of any transfer absolve nor not the to the Board responsibilities of the and Board respective Committees, the accountable to remains ultimately Company. the shareholders of Non-Executive a is led by The Board During financial the Chairperson. was Board the review, under year Boakgomo- Lorato Ms. by chaired an Independent who is Ntakhwana, Director. Non-Executive The Chairperson has no executive meets with regularly but function Management Executive Senior progressand discuss monitor to business issuesrelevant and is stakeholder to respond to available issues relatingto other queries or page 51page of BOARD’S GOVERNANCE BOARD’S AND STRUCTURE is BTC The of governing body Directors which of Board the the consists the Chairperson, of seven other and Managing Director members independent appointed shareholdersthe in line with the by unitary a has BTC Act. Companies majority the with structure Board members beingof Non-Executive of The preponderance Directors. Directors Non-Executive Independent Board. the on encouraged strongly is King IV Code of Good Governance Code of King by IV year. financial 2020 the of end the compliance with believesthat BTC recognised best practices will provide performance in levels of superior sustainable all to returns terms of stakeholders. not consideration into take We Company intereststhe the only of wider the but and itsshareholders, includingenvironment suppliers, employees as and the community our representation of A whole. a stakeholders is included on Report.this in compliance is prepared This Report King principles III. the of with deemed Directors have the Where certain apply to impractical it rationalethe practices, recommended section. relevant the is explained under ting Listings Code III of Good Code III of ernational Financial ernational Companies Act Requirements Reporting Standards (IFRS) The Global Repor The King The The BSE Equity The Int (GRI) Initiative’s Sustainability Reporting - on Economic, guidelines Environmental and Social performance. Governance, and now Governance, Kingtransitioningto Code IV

1 3 2 5 4 THE BTC BOARD COMMITTED IS THE BTC THE PRACTICE OF GOOD TO GOVERNANCECORPORATE AND THE FOLLOWING: TO SUBSCRIBES COMPLIANCE WITH KING III to complying In addition the with Governance, Corporate BSE Code of the has complied with Company the Kingaligningand is principles III of the compliance with ensure to itself Corporate GovernanceCorporate Adherence to sound principles of sound principles of to Adherence is critical BTC corporate by governance to earning and maintaining trust the ultimately stakeholdersand, key of achieving while its performance goals, the methods it acknowledging that achieve theseemploys to as are goals important as the themselves. goals The Board directs BTC’s strategic strategic directsThe Board BTC’s internal assessment, itsplanning, risk and operational financial controls, the BTC’s that to ensure management to itsstakeholders obligations are also BTC understood and observed. acknowledgessocial its corporate and responsibility provides assistance the to support and developmental and operates, communities in which it deservingto large. at institutions governance principles. principles. governance conducted according to sound according corporate to conducted THROUGH DONE IS THIS POLICIES KEY APPROVING AND ENSURING THAT MEETS THE COMPANY ALL TO ITS OBLIGATIONS STAKEHOLDERS. ensuring that the business of BTC is BTC businessthe of ensuringthat governance and is responsible for and is responsible for governance The Board is the custodian of corporate custodianthe of is The Board GOVERNANCE GovernanceCorporate Report

108 111 DIVISION OF DIVISION RESPONSIBILITIES BETWEEN AND EXECUTIVE THE BOARD MANAGEMENT division of clear a is There responsibilities between Executive the The Board. and the BTC Management Executive Directors and the Executive for responsibility have Management businessthe of operations daily the BTC’s the of execution the and the policies to and subject Strategy, Board. BTC the by adopted positions STANDARDS ETHICAL and all the Board Members of employees to conduct are required themselves according the highest to strives BTC always standards. ethical disclosures of relevant make to stakeholders in a to information manner. transparent Ethics Code of a in place has BTC establishes which the and Conduct conduct principlesand guidelines of individuals that and behaviours In Ethics. Code of the to subject are Code the purposethe of addition, leadership ethical ensure and to is internal both with interactions ethical The and stakeholders. external BTC Directors’ Affairs and Governance reviews compliance with Committee in BTC. and Conduct Ethics Code of the es the effectiveness of es effectivenessthe of es compliance with proves BTC’s Corporate Corporate proves BTC’s provescapital significant proves and acquisitions points senior management, sesses the comprehensive sesses businessand risks key Strategies, annual budgets and Strategies, business plans selection expenditure projects, financial suppliersand major of proposals divestments evaluates and monitors their performance. Ensur internal systems control Ap Ap Ap As reportingsystem of on financial and non-financial matters, operational and other strategy matters Ensur and regulations laws applicable Ap As of monitors management the those risks The Board, directly or through itsthrough or directly The Board, Sub-Committees:

• • • to is required Management approved the BTC’s implement strategiesplans and support and to monitorsThe Board Board. the performancean on Management’s ongoing basis. • • • • • The Managing Director is engaged on is engaged The Managing Director employment of contract term fixed a targets set which are and agreed with to time the Board from appraised by be renewed may The contract time. satisfied his with is Board the if performance. RESPONSIBILITIES OF THE BOARD AND THE EXECUTIVE MANAGEMENT brings that Board a led by is BTC and rigour commitment leadership, organisation, the businessthe to of as itsas well good in governance mandate, itsstatutory pursuance of control and effective ensuring proper business and carrying out BTC’s of corporate of evaluation periodic performance. also is responsibleThe Board for guiding corporate governance establishing by committees and structures the organisation within to of fulfilment effective the in it assist its responsibilities. delegatesThe Board certain functions to Sub-Committeeswell-structured abdicating its own without responsibility. QUALIFICATIONS Mr. Bafana Molomo was appointed appointed was Molomo Bafana Mr. Non-Executive an Independent as 2018. September on 27 Director MBA (University of Cape Town): CapeTown): (University of MBA in Business Diploma Post-graduate Gordon Pretoria’s (University of BusinessScience) of Institute Management; M.Sc. in Management in Management M.Sc. Management; East Systems (University of Information UK) Anglia, Institute of Chartered Accountants Chartered of Institute the of (FCA); Fellow Member Accountants Chartered of Institute the Associate of (FCA); Sri Lanka of Management Chartered of Institute (ACMA) UK Accountants of [Telecommunications and Alternative [Telecommunications the Energies] (University of RSA) Witwatersrand, Management (Manchester, UK) (Manchester, Management Institute of Management Accountants Management of Institute (FCMA) UK of BSc (Computer Science)(McGill (Computer BSc (De Montfort Canada); MBA University, UK) University, BA Administration (BOLESWA) BA College, USA) College, DATE OF APPOINTMENT DATE Appointed 27 September 2018September 27 Appointed and Finance): BCom (Economics Appointed 27 September 2018September 27 Appointed (Hons) in Businessand Finance BSc Appointed in May 2017 in May Appointed Botswana the of Fellow Member Appointed in May 2017 in May Appointed (Eng) Electrical BSc Appointed in April 2012 in Appointed HR MSc SciencesSocial (UB), BA Appointed in April 2009 in Appointed Charteredthe Fellow of BCom (UB), Appointed in January 2017 January in Appointed Appointed in October 2016 in October Appointed Appointed in October 2016 in October Appointed (Loyola MBA (UB); Commerce BA APPOINTMENTS DURING THE FINANCIAL YEAR UNDER REVIEW: UNDER YEAR THE FINANCIAL DURING APPOINTMENTS as an appointed was Thari Pheko Mr. Director Non-Executive Independent 2018. September on 27 POSITION Independent Member Independent Independent Member Independent Independent Member Independent Independent Member Independent Independent Member Independent Independent Member Independent Managing Director Independent Member Independent Chairperson MEMBER MR. BAFANA MOLOMO BAFANA MR. MR. THARI G. PHEKO THARI G. MR. MR. RANJITH PRIYALAL RANJITH PRIYALAL MR. DE SILVA MR. ANDREW JOHNSON MR. MS. CHOICE PITSO MS. MS. SERTY LEBURU SERTY MS. MR. ANTHONY ANTHONY MR. MASUNGA MR. MCLEAN LETSHWITI MR. MS. LORATO LORATO MS. BOAKGOMO- NTAKHWANA FOR THE YEAR UNDER REVIEW THE BTC BOARD WAS CONSTITUTED OF THE FOLLOWING DIRECTORS: THE FOLLOWING OF CONSTITUTED BOARD WAS REVIEWTHE BTC UNDER YEAR THE FOR During the financial year under under year During financial the the following appointments review, place: took continued GOVERNANCE GovernanceCorporate Report

110 113 authorities. In particular, it monitors it In particular, authorities. accounting systems financial controls, with compliance and reporting, legal statutory and requirements, of and the management evaluation and systems, and internal control risk and the internal effectivenessthe of The Committee external auditors. and exposure also evaluates BTC’s including risks, significant response to risks to its sustainability. and Risk Audit the The activities of the Report in out set are Committee on Committee and Risk Audit the of 118. page 1 AUDIT AND RISK COMMITTEE AND RISK AUDIT The Company’s Audit and Risk and Risk Audit The Company’s least at Committee is composed of Non-Executive Independent three MembersBoard by and is chaired are There Director. Non-Executive a could that overlaps no relationship and Risk Audit interfere the with Committee members’ independence Management. from the of The main responsibility to Committee is and Risk Audit in discharging Board the assist its Companiesthe responsibilities under and ensuring compliance Act legislation applicable other with regulatory and requirements of MEMBERS Ranjith Priyalal De Silva Mr. (Chairperson) Serty Leburu Ms. Molomo Bafana Mr. OVERVIEW The Committee operates within set as reference of defined terms in its authority out and the Charter and meets Board, the by it to granted meetings quarterly more with least at The being held when necessary. auditors and external internal attend unrestricted theseand have meetings access the Chairperson. to 5 AD-HOC AD-HOC COMMITTEES 4 DIRECTORS’ COMMITTEE AFFAIRS AND AFFAIRS GOVERNANCE 3 HUMAN RESOURCES COMMITTEE 2 AND COMMITTEE INVESTMENT INVESTMENT TECHNOLOGY TECHNOLOGY THE BOARD IS SUPPORTED BY SPECIALIST COMMITTEES AS FOLLOWS: AS COMMITTEES SPECIALIST SUPPORTED BY THE BOARD IS These Sub-Committees have formal Charters and report to the Board on regular intervals. intervals. regular These on formal Chartersthe Board Sub-Committees to have report and scope of membership, their to as Board the BTC by mandated The Committees fully are These Non-Executive by Committees chaired are responsibilitiesand duties. authority, Directors. Non-Executive of majority a comprisedare of Directorsand Certain functions of the Board are facilitated through the main Sub- main the through facilitated are Board the Certain of functions the Human Committee, and Risk Audit Committees includingthe Affairs and Directors Governance Committee Resources Committee, in Committee; each constituted and Investment Technology the and Constitution. Company the of section 20.3.2 with accordance In the In the course scope and of the dischargingmandate, their to Directors are empowered various to duties their delegate part of Sub-Committees. Board Board Sub-Committees 1 RISK RISK AUDIT AND AUDIT COMMITTEE continued GOVERNANCE GovernanceCorporate Report

112 115 terly reportsterly the on eports from significant technology technology significant t to the Board, and make and make the Board, to t see and strategic recommend seeand loan loans guarantees see relations investor ard tenders in line with BTC’s tenders BTC’s ard in line with aluate the execution, financial execution, the aluate management, as and when management, concerning the appropriate, BTC’s of implementation including initiatives, technology budget, to compared cost the the expected benefits and the implementation. timelines of recommendations to the Board, the Board, to recommendations quality, direction, scope, the as to of and execution levels investment enterprise acquisition, investment, venture services, and joint divestiture transactions alliances and obligations third-party debt of activities. Review quar Management the decisions of Committee Tender Aw Review including the expenditures, and its BTC for associated budget business segments Receive r Ev resultsand integrationof acquisition, completed investment, enterprise venture services, joint and divestiture transactions Repor Over Over Over and policy procurement approved regulations tender ON MERGERS AND ACQUISITIONS ON ACQUISITIONS AND MERGERS

• • • TO: DECISIONS, TENDER ON MATERIAL • • • Evaluate and revise Evaluate mergers and policies for approval acquisitions enterprise acquisition, investment, venture services, and joint divestiture requestsand consider transactions, such approve to from Management proposed transactions • • • ’s cash flow, cash flow, ’s BTC ’s overall Strategy ’s BTC the viability of the the capital of viability the e that appropriate due due appropriate e that see the proper value delivery delivery value proper seethe projects and/or acquisitions and/ acquisitions projects and/or they disposals or and the effect the on have may comply they as whether as well the with Consider Ensur Over the and that ensure Technology of on investment return expected Technology significant from investmentsand projects is the information and that delivered property and intellectual information the contained in systems are protected. diligence procedures are followed followed are procedures diligence disposingacquiringwhen of or assets

• • • capital projects, capital projects, scope of changesthe in the performance of performancethe of prove and advise prove the Board on Review investments the to BTC linked overall investment Company’s strategy Consider and assetsacquisitions disposal of overall BTC’s the in line with Strategy Consider as may limits, exceed projectsthat from Board the by be determined in approving the time, to time once- whether regulations, tender approved the of collectively, off or estimate project Ap investment other any

ON INVESTMENT ACTIVITIES, TO: ACTIVITIES, ON INVESTMENT • • • • iality of information of iality egrity of information egrity of ailability of information information of ailability e that an Information an Information e that e that there are appropriate appropriate are there e that systems are there e that Confident Int Av systemsa in and information manner. timely

- - - Ensur Ensur Ensur Security Management System Security Management and (ISMS) is developed incorporates the following high-level security information principles: systems in place for the the systems in place for information of management assets and the performance of functions data information private in place for property, as intellectual (such investment decisions and tendering processes) to be treated an important businessas BTC by all personal and that asset is processed by that information identified is BTC

• • • 2 eports on existingand the negative impact negative impact the and endorse technology ease awareness of key key easeawareness of ovide oversight over over ovide oversight that technology could have on have could technology that and provide environment the sustainable solutions for action Management’s investments and projects including monitoring and reviewing implementation post technology such key results all of projects future trends in technology that that in technology trends future plans, strategic BTC’s affect may including monitoring overall trends industry technology new innovative future developments for BTC within deployment changes and technology the and in BTC within innovations marketplace Review Consider Pr Incr Receive r

ON TECHNOLOGY, TO: TECHNOLOGY, ON planning technology Review BTC’s including financial, the strategy, and benefitsstrategic of and tactical technology- proposed significant projectsand initiatives: related • • • • • THE DUTIES OF THE COMMITTEE INCLUDE THE FOLLOWING: THE COMMITTEE INCLUDE OF THE DUTIES TECHNOLOGY AND INVESTMENT COMMITTEE AND INVESTMENT TECHNOLOGY continued GOVERNANCE GovernanceCorporate Report OVERVIEW operates Committee The within set as reference terms of defined in its out authority the and charter and the Board by to it granted quarterly more with least meetsat beingmeetings necessary. when held and Investment Technology BTC’s fewer no is composedCommittee of Board Non-Executive three than Committeethe of role The Members. it that to ensure the Board assist is to fulfils its and corporate governance BTC’s the responsibilitiesoversight for Technology to relation in Strategy opportunities. Investment and MEMBERS AndrewJohnson (Chairperson) Mr. Maclean Letshwiti Mr. Thari Pheko Mr.

114 117 3/3 3/3 3/3 3/3 COMMITTEE √ √ √ √ HUMAN RESOURCES 3/3 2/3 5/6 6/6 6/6 Board meetings to facilitate adequate adequate to facilitate Board meetings discussionthorough for preparation of number A these meetings. at between taken be decisions may resolution written by meetings Board founding BTC’s the with accordance in documents. THE OF AND MEETINGS ATTENDANCE AND BOARD COMMITTEES BOARD meet to is expected Board The BTC full quarterlyand retains least at Board The BTC BTC. the over control ensuringthat monitors Management, to BTC material matters subject are and reserves to itself approval, Board that ensure to decisions key of range a and control direction proper retains it the BTC. of COMMITTEE √ √ √ √ √ AUDIT AND RISK AUDIT 1/2 3/3 5/5 5/5 5/5 5 COMMITTEE TECHNOLOGY TECHNOLOGY & INVESTMENT & INVESTMENT √ √ √ √ √ AD-HOC COMMITTEES AD-HOC BOARD AND COMMITTEE MEETINGS BOARD Board (4) four minimum of A financial each scheduled are meetings and key strategic to consider year operational matters, financial issues, proposalspecific performance and any and investment, capital expenditure for applicable. where convened are meetings Additional basis to consider on an ad-hoc importance of items extraordinary attention. urgent require which may a convened by are meetings Board detailed incorporating notice a formal written relevant with together agenda is Information proposalsand reports. to prior manner timely distributed in a 7/7 7/7 5/7 5/7 5/7 5/5 6/7 6/7 4/5 BOARD √ √ √ √ √ √ √ √ √ Member Attendance Member Attendance Member Attendance Member Attendance MS. LORATO LORATO MS. BOAKGOMO- NTAKHWANA LEBURU SERTY MS. CHOICE PITSO MS. MACLEAN MR. LETSHWITI ANDREW JOHNSON MR. SILVA DE PRIYALAL MR. THARI PHEKO MR. MOLOMO BAFANA MR. ANTHONY MR. MASUNGA Ad-hoc Committees are appointed Committees appointed are Ad-hoc as and when necessary, the Board, by issues before specific consider to final a submissionthe Board for to finds it as The Board, decision. of terms determines the necessary, such committees. of reference PRESENTED IS BELOW. ATTENDED AND HELD OF MEETINGS SUMMARY A compliance with the the compliance with that a succession plan is a that process a of that that remuneration remuneration that seeing the performance and ermining remuneration Reviewing Ensuring Over Board the of evaluation Ensuring by and Conduct Ethics Code of and Executive Non-Executive Directors. in place for the Directorsthe including in place for Managingthe Director electing and nominating, appointing Directors is in place packages needed to attract, retain attract, needed packages to high performingand motivate payingthan is staff more without purposethis necessary for Ensuring comparable other to relative the companies is at pitched desiredtaking level relative performance account. into Det

• • • • • • 3 4 objectivity and neutrality objectivity and monitoring the alignment of the the of alignment the the establishment remuneration strategy remuneration and policy businessstrategy BTC’s with Reviewing strategic human Company’s resource initiatives and their Company’s the compliance with human resource policies. Ensuring Ensuring the process formal for a of Directorsand of appointment for recommendations make Board the by consideration and pertaining appointment the to Directors including the of removal Managing Director Maintaining in determining remunerationthe Directors and benefits of

Committee is composed of at least least at Committee is composed of Members. Board Non-Executive three INCLUDES: MANDATE THE COMMITTEE’S • • • meets on an ad-hoc basis with more more basis with meetsad-hoc an on and when when as held meetings necessary. includes: mandate The Committee’s • HUMAN RESOURCES COMMITTEE DIRECTORS’ AFFAIRS AND GOVERNANCEDIRECTORS’ AFFAIRS COMMITTEE OVERVIEW The Committee operates within set as reference defined terms of in itsout authority and the charter and the Board by to it granted MEMBERS Boakgomo-Ntakhwana Lorato Ms. (Chairperson) Silva Priyalal De Ranjith Mr. Molomo Bafana Mr. During the year under review the the review under year During the new Committee, establishedBoard a Affairs and Directors’the Governance Committee (DAGC). continued GOVERNANCE GovernanceCorporate Report OVERVIEW The Committee operates within set as reference of defined terms in its authority out and the charter and the Board, by to it granted quarterly more with least meetsat beingmeetings held when necessary. Human Resources, The Company’s and Nominations Remuneration MEMBERS Pitso Choice (Chairperson)Ms. Boakgomo-Ntakhwana Lorato Ms. Silva Priyalal De Ranjith Mr.

116 119 accounting control ed stakeholder reportinged stakeholder management utory and regulatory and regulatory utory ernal control that relates to the Audit and Audit the relates to that Committee Risk requirements. Risk Select Stat Int Financial

• • Standards. The Committee has The Committee Standards. the recommended therefore statementsannual financial for The Board the Board. to approval the approved subsequently has which will statements, financial the discussionat be open for forthcoming Annual General Meeting. OF ON FULFILMENT CONCLUSION AND DUTIES OBLIGATIONS the Committee above, Given the has it that opinion the is of addressed its key appropriately of: responsibilities in respect • • • that they comply, in all material all material in comply, they that requirementsthe of with aspects, and appropriate Act the Companies Financial ReportingInternational s in corporate governance and best practice and and bests in corporate practice governance eporting risks s as they relate to financial reportingto relate they as s a non-audit services policy which determines the nature and services nature the which determines policy non-audit a the text of various reports, including Goingthe reports, various Concern of text the an integral component of the risk management process and, processand, management risk the of an integral component an oversight role in respect of the internal audit function to ensure ensure to function audit internal the of in respect role an oversight ernal financial controls ormation Technology (ICT) risks in so far as they relate to financial to relate they as so (ICT) far in risks Technology ormation ored closure of reported audit findings reportedaudit of closure ored ed that the BTC’s existing the BTC’s combined assurance model addresses ed that the ement, Corporate Governance Report and Directors’ report for inclusion inclusion Governance Corporate and Directors’ for Report report ement, Financial r Int Fraud risk Inf reporting isfied itself that the General Manager of Finance is appropriately qualified appropriately Finance is of Generalthe Manager that isfied itself proved the Internal Audit Annual Operational Plan Annual Operational Audit Internal the proved

- - - - amongst others, monitored: others, amongst Maintained the to provide may Young & Ernst servicesthat non-audit any of extent Company Ensur Formed significant risks facing risks businessthe significant its effectiveness Reviewed development Sat suitably is Finance function the that and fulfil his role to and experienced its obligations out carry to skilled resourcedand Reviewed Stat Played Ap Monit and in particular BTC the on and implications impact their considered the King the principles throughout of embedded III are that ensured business 2019. March ended 31 year the for Annual Report Integrated the in

ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL The Audit and Risk Committee has and Risk Audit The the consolidated annual evaluated financial statements year the for and ensured 2019 March ended 31 • • • • • • • • • the re-appointment of Ernst & Young as the registeredthe as Young & Ernst of re-appointment the erim reports, results announcements and other releases of releases results of erim reports, announcements and other and commented on the Annual Financial StatementsAnnual Financial and the and on the commented the process, audit the external and effectiveness the quality of significant judgements and/or unadjustedresulting differences significant judgementsand/or ored compliance with accounting standardsand legalaccounting requirements compliance with ored ermined the fees to be paid to Ernst & Young and ensured that the feesthe that and ensured Young & Ernst to be paid feesto the ermined the terms of Ernst & Young’s engagement Young’s & Ernst of terms the he Company comply with all statutory requirements statutory all with comply he Company Independent Auditors Independent and equitable fair are Reviewed int price-sensitive information Reviewed reporting as well as any decisions made audit, the from Recommended Set Det Reviewed Statements of Annual Financial the accountingthat policiesand ensured t Monit Reviewed responses and Management’s Committee the to Report Auditor’s External

• • • • • • The report is presented in accordance with the the with presented is accordance The report in Kingthe contained in III Report on recommendations operatesThe Committee within Governance. Corporate the its in and charter out set as reference of terms defined Board. the by it to authority granted servicesauditors external performedthe permissible by non-audit Pre-approved and valuation services non-accounting Prohibited include taxation. include later be compromised by independence might their where accounting work there is appropriate Committeethat ensures and Risk Audit The work. auditing their auditors. external the services by provided non-audit independence relatingto AMONGST ACTIVITIES, REVIEWTHE FOLLOWING THE PERIOD UNDER DURING WERE CARRIED OUT: OTHERS, • • REPORT OF THE AUDIT AND RISK COMMITTEE AND RISK AUDIT THE OF REPORT 1 The Committee is its present pleasedto financial the for report March ended 31 year 2019. Ranjith Priyalal De Silva And Risk the Chairperson of Committee. MAnagement continued GOVERNANCE GovernanceCorporate Report

118 121 NIL NIL NIL NIL NIL NIL NIL 254,488 100,000 DIRECTORS’ SHAREHOLDING (NUMBER (NUMBER OF SHARES) 87,000 83,000 65,000 60,000 113,000 157,000 181,000 100,000 DIRECTORS’ 2,083,872* Director, with a dual reportingdual a with Director, and Risk Audit the to responsibility process Audit Internal The Committee. significant provides an assurance that review to periodic subject are risks processes control in are that and place and weaknesses are identified is Audit The Internal and mitigated. also advise to the expected Board of framework BTC’s the whether control internal management, risk and as processes, governance is Management, the designed by The adequate and functioning. an has Department Audit Internal the setting Charter out Audit Internal which function, the independence of and Audit the has been adopted by the signed by Committee and Risk Committee. that Chairperson of is function Audit Internal BTC’s and value enhance designed add to the helps It operations. Company’s the REMUNERATION REMUNERATION (AMOUNT IN PULA)(AMOUNT POSITION Director Managing Director Director Director Director Director Director Chairperson Director INTERNAL AUDIT FUNCTION AUDIT INTERNAL providing a reasonable but not an not reasonable but providinga absolute assurancematerial against misstatement. loss or received information Basedthe on andAudit the from management, theCommittee and InternalRisk believes Board that the Division, Audit can controls internal systems of the thatand upon, relied be reasonably the in threat no material was there internal system of the effectiveness of review. under year duringthe control Kingthe Accordingto III Code of key the Governance, Corporate to is Audit Internal of responsibility its committees and/or Board the in discharging its governance reason this is for It responsibilities. Internal an independent has BTC that administratively which function Audit reports the Managing to directly MEMBER MR. BAFANA MOLOMO BAFANA MR. MASUNGA ANTHONY MR. MR. THARI PHEKO MR. MR. RANJITH PRIYALAL DE SILVA DE RANJITH PRIYALAL MR. MR. MCLEAN LETSHWITI MR. ANDREW REGINALDMR. JOHNSON MS. CHOICE PITSO MS. MS. LORATO BOAKGOMO-NTAKHWANA LORATO MS. MS. SERTY LEBURU SERTY MS. DIRECTORS; AND SHAREHOLDING REMUNERATION INTERNAL AUDIT INTERNAL Except for the Managing Director, Members of the Board are not entitled to monthly or annual salaries. Members of the the Members of salaries. annual or monthly to entitled not are Board the Members of Managingthe Director, for Except sittinga allowance. Sub-Committees and Board are paid March at Directorsas by shares held directly Limited Corporation Telecommunications Botswana of number aggregate The table below: the as per shareholding are and remuneration the Details of is 604,488. 2019 BTC has an Internal Audit functionAudit an Internal has BTC andAudit reports the to that directly to assuranceCommittee provide Risk and effectiveness adequacy on the of itsstrategic, to risks mitigate to controls and compliance financial operational, however controls Internal objectives. and not reasonable provide only can materialabsolute assurance against elementsThe key misstatements loss. or are control internal system of the of planningand operations, delegation, monitoring competence, empowerment, Audit. and Internal and reporting, systems The are designed to provide reasonable assurances the to financial the of and reliability integrity operational statementsand other internal systems of Such information. are designed controls to manage of risks the eliminate than rather business objectives, meet to failure * Managing Director’s remuneration includes salaries includes remuneration and benefits. * Managing Director’s and sion or Retirement savings, savings, Retirement sion or individual award based onaward individual oup Assurance; Life pool-based Performance the by bonus triggered Gratuity; Allowances Pen Gr Medical Aid; A isaward which Bonus Incentive discretion Board’s the at A budgeted the of achievement as (PBT) Tax Before Profit the at the Board determined by year financial the beginning of review under An performance. comprising full or partiallycomprising full or employee) (with matched towards contributions to subject savings, retirement and practice local competitive legislation;

EMPLOYEE AND BENEFITS EMPLOYEE RETIREMENT FUNDING are reward components of Other These are given to employees. practice local competitive to subject provides, BTC and legislation. third through appropriate, where elements of additional parties, compensation: • • • TERM INCENTIVES (STI) SHORT STI of an element Employees have comprising one based remuneration, the following: of • • • NON-EXECUTIVE DIRECTORS’ REMUNERATION Non- the for The remuneration ended year the Directors for Executive the by approved was 2018 March 31 Annual General BTC’s shareholdersat 2018. September Meeting on 27 • • e a positive culture through positive culture e a and retain talented, skilled talented, and retain ard and recogniseand employees ard ivate employees performto ivate propriately compensatepropriately sist itssist employees career on in the best interests of BTC and itsand best interests BTC the in of stakeholders training and through development development. proper structures recognition proper Attract performing high and employeesto operationsthe manage effectively businessthe and of growth Mot As Ap services the they employees for the businessprovide Rew specific of attainment the for performance targetsBTC as well individual of attainment as the performance through goals pay variable Inculcat

Remuneration levels are positioned positioned are levels Remuneration comparable other to relative economic current the organisations, and individuals’ environment, personal performanceand BTC’s Remuneration business model. comprises fixed elements of and performance-remuneration remuneration. based (at-risk) STRUCTUREREMUNERATION the elementsvarious of The structure are remuneration discussed below. REMUNERATION remuneration of element The basic to is required salarybase that is a andaattract retain skills, given of set competencies and experience. • • • REMUNERATION PHILOSOPHY REMUNERATION applies philosophy The remuneration is BTC’s It operations. all BTC’s to to: philosophy • • • REPORT OF THE HUMAN RESOURCES COMMITTEE OF REPORT 2 The Committee is its present pleasedto financial the for report March ended 31 year This setsreport 2019. the Company’s out remuneration philosophy. Choice PitsoChoice Human Chairperson of Resources Committee continued GOVERNANCE GovernanceCorporate Report

120 123 EMPLOYEE SHARE OWNERSHIP PLAN SHARE OWNERSHIP EMPLOYEE (“ESOP”) SAFETY HEALTH, ENVIRONMENT, AND SUSTAINABILITY PREVENTION & DETECTION OF AND FRAUD ERRORS As part of the BTC Initial Public Offer Offer Public Initial BTC the As part of Republic the of Government (“IPO”), Government” (“the Botswana or of shareholder”) “Majority reserved BTC issuedthe capital of 5% of of benefit the shares) for (52,500,000 Employees. BTC Citizen shares to be were the Initially Share an Employee into deposited and dividends accrued were Trust amongst equally shared be to The Government employees. (CAB Presidential Directive a through terms of amended the 10(A)/2016) the Scheme Employee Share to allow purchase employees directly to for This amendment the reserved shares. Annual the 2016 at approved was General Meeting. Employees 950 eligible BTC of out 820 the reserved of purchased 19,269,200 15% a share, 85thebe shares at per A P1.00. IPO price of the to discount of shares (3.16% 33,230,800 of total remain. BTC) issuedthe capital of and Majority The Company still in discussion are shareholder and Company the how both about the from employees can benefit BTC remaining shares which stillare in the Government.the name of and to strives to, to conform BTC and health environmental, exceed, seeks safety laws in itsand operations of life of quality the to value add to its preventative employeesthrough programmes.health system control internal An effective and prevention for should provide and errors. fraud of detection COMPANY SECRETARY AND SECRETARY COMPANY ADVICE PROFESSIONAL WITH EMPLOYEE RELATIONSHIP REPRESENTATIVES The Compliance Checklist and Legal Checklist The Compliance businessthe to out rolled Register covers new dissemination of regulatory handling of legislation, of and review development visits, regulatory various and universes, risk reporting procedures. legislation piecesof Various the including Act, the Companies Communications and Act, Regulatory and the Financial Act Competition analysed (FIA) were Act Intelligence developing purposesand of for universes the reviewing risk the of is consciousThe Board of business. itsand is unequivocally responsibility to upholding committed ethical in conducting its business. behaviour the Company through The Board, to ensure strives office, Secretary’s comply businessesthe BTC of that of and regulations laws the with Botswana. S. is Mr. Secretary The Company unlimited All Directors have Mganga. servicesaccess advice and the to who is Secretary, Company the of ensuring for Board the to accountable all prescribed are procedures that sound and that complied with, corporate and governance ethical Director Any principles to. adhered are independent seek to is entitled professional advice concerning the responsibilities her his or discharge of the though expense, BTC’s at this arrange is practice encouraged to Secretary. the through Company maintaining harmonious As part of employee conducive and a relations Company, the within climate relations the Telecommunications Botswana and Employee Union (BOTEU) engage to continue Management the established through each other and consultation communication, forums. negotiation EXTERNAL AUDITORS EXTERNAL AND OTHER COMPLIANCE WITH LAWS REQUIREMENTSLEGAL Committee, approved by the Board by approved Committee, two any signed off by and can be they however, In practice, Directors. the of signed on behalf usually are Chairpersonand BTC the by Company Managingthe Director. The auditorsexternal an provide BTC’s assessment of independent financial control internal systems of opinion and expressan independent on Annual the Financial Statements. provides function audit The external reasonable assurance on the disclosures financial of accuracy thresholds of approved the within The external auditors’ materiality. Risk and Audit the by plan is reviewed significant to all Committee ensure without covered, are concern of areas infringing auditor’s on the external audit. the to independence and right Close between cooperation the and auditorsinternal external ensures all is adequate of coverage there that of terms In BTC. within areas material the shareholdersthe Companies Act, Annual General Meeting the at firm of a Young, & Ernst appointed auditors as the for CertifiedAuditors, review. under year the considers compliance with BTC regulations, industry laws, applicable codesstandardsand its own ethical an policies be and internal to BTC’s doing business. integral part of facilitates function Secretary Company compliance of management the and analysingstatutory through drafting requirements, regulatory and plans compliance management implementingsubsequently those and monitoring BTC plans throughout suggested of implementation the compliance with ensure to controls statutory and applicable regulatory requirements. A Risk Management Report is included Management Risk A 139. to 134 on page GOING CONCERN FINANCIAL ANNUAL OF APPROVAL STATEMENTS The Board has considered and has considered The Board facts and all relevant recorded and has concluded assumptions resourcesadequate has to BTC that existence in operational continue Their foreseeablethe future. for also is regard this in statement of statement the contained in Annual the for responsibility Director’s Financial Statements. have statements BTC The financial of and Risk Audit the by been reviewed PAGE of duties, transaction supervision, transaction supervision, duties, of and managerial financial monitoring, reporting. the Board has above, the to In addition control that to ensure endeavoured designed safeguardsystems, to assets BTC’s and maintain proper facilitates the accounting that records reliable of and availability production are in place and are information, functioning as planned. a The programme ensures that arisingrisks as a of range wider BTC’s diverse of are result operations of support in managed effectively communications uninterrupted the services and the creation to Botswana shareholder and preservation of business The significant risks to wealth. and operational financial, Company, the undermine which could compliance, BTC’s business of achievement the is mitigation identified, objectivesare owners and risk appointed. established, semi- a on Business reviewed are risks annual basis. MONITORING RESULTS AND MONITORING RESULTS REPORTING MANAGEMENT MANAGEMENT RISK A summary of audit results, progress results, audit of summary A plan audit the of delivery against and progressclosing in Internal both are findings items Audit and External the Executive presented to bi-weekly and quarterly the to Management Committee. and Risk Audit reviews actively The Committee submissionsthe Audit Internal and appraises accordingly. the Board tip-off anonymous the Through Internal Deloitte, by line managed investigatesall reported Audit casesconveys itsand and findings the Managing to recommendations and Risk Audit and the Director Committee. should controls internal Effective information timingprioritise the of applicable the as per required management. and needs of laws and other All reporting financial of an effective as results is carried out monitoring resultsactual mechanism; annual the against are compared the historical trends plans and against the years.previous of is integral management risk Effective consistently objectives of BTC’s to the business. to value adding is continuously Management developingand enhancing its risk improve to procedures and control identifyingand mechanisms for the the is Operating risk monitoring risks. a through loss to occur for potential information, in control breakdown business processesand compliance policiesand procedures Key systems. operating manage to in place are involvingsegregation exposure risk the Internal Internal the -Based Auditing. Internal egrity and professionalism Audit function Audit Risk within audit within internal Independence of Int 1

3 2 • • • The Internal Audit Charter places Charter Audit The Internal considerable emphasis on: The Internal Audit follows a risk- a follows Audit The Internal to develop basedthe methodology which is reviewed plan, audit annual and Risk Audit the by and approved the The Chairperson of Committee. Committee appraises and Risk Audit the of duties the on Board the on quarterly function Audit Internal by is conducted work the All basis. and experience qualified appropriately team members and the follows Standards. Audit Internal of Institute The Internal Audit function reports function Audit The Internal the Managing to administratively the Board to and functionally Director Committee. and Risk Audit the via also advisesAudit the Board Internal framework, management risk on BTC’s effectiveness and compliance control requirements. and regulatory laws to In performing its duties, Internal Audit Audit Internal In performing its duties, Institute the by is principally guided Auditors’ professional Internal of Kingand other III framework, practice standards in undertaking relevant responsibilities. audit internal Company to accomplish to itsstrategic Company systematic, bringingobjectives by a and to evaluate disciplined approach risk effectivenessthe of improve and control governance management, processes. continued GOVERNANCE GovernanceCorporate Report

122 125 COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS In accordance with the Board Charter, the Board is Board the Charter, Board the with accordance In corporate of the highest standards to committed governance The Board, in accordance with the Board Charter, is Charter, Board the with accordance in The Board, vision objectives, aligning strategic responsible the for sustainabilityand mission performance with and process management risk BTC’s considerations. and includingstrategic risks considers of range full the performance. covering of risks areas operational all See 1.1 above See 1.1 See 1.2 above See 1.2 See 1.1 above See 1.1 BTC has an effective and independent Audit and Risk and Risk Audit and independent an effective has BTC a Committeereporting the andto Board chaired by Director. Non-Executive The Board, through its Audit and Risk Committee, Committee, and Risk Audit itsthrough The Board, companywide. risks oversees of management the A Technology and Investment Committee responsible Committee and Investment Technology A is in place. function this for A compliance framework is monitored by the BTC BTC the by is monitored compliance framework A is in compliance BTC view, Board’s the In legalteam. (seealso and regulations 6.1). all laws with The Internal Audit function, with the help of the the help of the with function, Audit The Internal prudently handles function this auditors, external As part of the risk assessment process, the Board, Board, the assessment process, risk the As part of evaluates Committee, and Risk Audit itsthrough issues reputational relatingarisingto all risks from government shareholders, employees, customers, etc. local communities, agencies, √ √ √ √ √ √ √ √ √ √ √ 2. BOARDAND DIRECTORS2. The Board should act as the as the should act The Board and custodian of, for, point focal governance. corporate The should Board appreciate performance risk, strategy, that and sustainability are inseparable. The Board should provide should provide The Board leadershipeffective based on foundation. an ethical The Board should ensure that that should ensure The Board seen and is is Company the responsible corporate a be to citizen. The Board should ensure that that should ensure The Board are ethics Company’s the effectively. managed The Board should ensure that that should ensure The Board an effective has Company the and Risk Audit and independent Committee. The Board should be The Board the responsiblegovernance for risk. of The Board should be The Board information responsible for (IT) technology governance. The Board should ensure that that should ensure The Board complies with company the and considers laws applicable non-bindingto adherence rules, codes and standards. The Board should ensure that that should ensure The Board risk-based an effective is there audit. internal The should Board appreciate perceptions stakeholder’s that the Company’s affect reputation. PRINCIPLE DESCRIPTION OF PRINCIPLE COMPLIANCE 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS In accordance with the Board Charter, the Board is the the is Board the Charter, Board the with accordance In recognises BTC BTC. of valuesand ethics the of curator good emanates effective, governance that from characterised which is by responsible leadership, Code of a has in place The Company values. ethical leadership ethical ensure and to and Conduct Ethics and external internal both with interactions ethical stakeholders BTC Social Responsibility reports Corporate BTC to commitment reflectsthe Company’s adequately citizenship. corporate good integralto and Conduct Ethics Code of a has BTC which conditions, employment Company’s the values the ethical things other amongst promotes, fairness and accountability, responsibility, of transparency. √ √ √ 1. ETHICAL LEADERSHIP AND CORPORATE CITIZENSHIP CORPORATE AND LEADERSHIP ETHICAL 1. The Board should provide should provide The Board leadershipeffective based on foundation. an ethical The Board should ensure that that should ensure The Board seen and is is Company the responsible corporate a be to citizen. that should ensure The Board are ethics Company’s the effectively. managed PRINCIPLE DESCRIPTION OF PRINCIPLE COMPLIANCE P 1.1 P 1.2 P 1.3 COMPLIANCE WITH KING III PRINCIPLES The statement below, which is based on the Code which is basedthe on below, statement The the degree measures of Kingthe Committee, published by has complied BTC respective codes. itsthe to compliance financial the throughout Best Practice Codesthe of with exceptions the with than other 2019, March ended 31st year stated below: To improve the corporate corporate the governance improve To principles the and to Board’s enhance to decided voluntarily BTC accountability, world class onthe code to itself subject Kingthe III Code on Governance, Corporate GovernanceCorporate (www.kingIII.co.za). Compliance with the Corporate Governance Code (King III) (King Code Compliance with theGovernance Corporate continued GOVERNANCE GovernanceCorporate Report

124 127 COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS Currently, Directors are selected by the Nominations Nominations the selected by Directorsare Currently, Annual the the at Board by Committee and approved General Meeting. a through the Directors are inducted Currently, and pertinent relevant dissemination of process of be formalised. to yet which is information, company suitably legal professional, a is Secretary The Company secretarial matters company the handle to qualified BTC. of the and of self-evaluation a carries out The Company targets set. viz. sub-committees four appointed has The Board and Technology the Committee, and Risk Audit the the Human Resources and Committee Investment AffairstheCommittee and Directors’ and Governance Committee. All reference. terms of Each committee has memberships these to by committees approved are Board. the are Managingthe Director All Directors except at spent time for only remunerated currently by feesapproved the in line with meetings, shareholders disclosesAnnual adequately Report The all shareholdings their paid to Directors, remuneration Company. the to relationships and other approved policies are remuneration The Company’s remuneration the save for Board the by only shareholders. by approved be which must philosophy √ √ √ √ √ √ √ √ √ Directors should be appointed process. formal a through and ongoing of The induction of trainingand development conducted should be directors processes. formal through assistedshould be The Board suitably competent, by a qualified and experienced secretary. company its Board, the of The evaluation committees the and individual should be performedDirectors year. every should delegate The Board certain well- to functions committeesstructured but abdicating its own without responsibilities. framework governance A should be agreed between the boards. and itssubsidiary group Companies should remunerate directorsand executives fairly and responsibly. Companies should disclose the each individual of remuneration and certaindirector senior executives. Shareholders should approve remuneration Company’s the policy. PRINCIPLE DESCRIPTION OF PRINCIPLE2.19 COMPLIANCE 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS Annual financial statements are reviewed by the the statements by Annual financial reviewed are Further the Board. and Committee and Risk Audit are ReportAnnual the components of significant the beingreleased. before Board officially the by reviewed Internal the Charter, Audit Internal the As part of control internal Company’s Auditorsthe review and Risk Audit the to report systems and a provide and Risk Audit The theto Board. Committee and its the reporting, confirms as part of Committee the at in operation controls internal the of adequacy Company. acceptance and the of appointment The terms of the Directors as Directors that dictate appointment all and that the Company in the best of interest act reported and and/or declared are interest conflicts of with. dealt adequately meets the it ensuresthat always The Company three- also preparesThe a Company tests. solvency business plan incorporatingyear financial forecasts financial distresssituations. any of detection early for Chairperson Non- The Board an Independent is Annual General the chosenat Director Executive the The Managing Director, Company. the Meeting of the Chairpersonthe of is not CEO, the of equivalent Board. CEO)the to is (equivalent The Managing Director fixed period contract a on Board the by appointed organisational well-defined a has The Company basis. to targets and authority strategies, structure with achieve them. are Board the on positions the one of all but Currently, Directors. Non-Executive filled by √ √ √ √ √ √ √ The Board should ensure the the should ensure The Board Company’s the of integrity Integrated Report. The Board should report on the the on should report The Board the Company’s effectiveness of controls. internal system of and its The Board Directors best intereststhe in act should the Company. of should consider The Board business rescue or proceedings mechanisms turnaround other is soon as as the company distressedfinancially as defined in Act. the a should elect The Board who is Board the Chairman of Non-Executive an Independent the The CEO of Director. also fulfil should not company the Chairman of of role the Board. the should appoint The Board and Officer Executive chief the for establish framework a authority. delegation of should comprise The Board a with power, of balance a Non-Executive of majority Non- of The majority Directors. should be DirectorsExecutive independent. 2.12 PRINCIPLE DESCRIPTION OF PRINCIPLE COMPLIANCE 2.13 2.14 2.15 2.16 2.17 2.18 COMPLIANCE PRINCIPLES WITH KING III continued GOVERNANCE GovernanceCorporate Report

126 129 COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS The Audit and Risk Committee formally reports formally the Committee to and Risk Audit The Committee the of report A each meeting. after Board Annual Report. the is included in this and has delegated risk this of aware is The Board Committee. and Risk Audit the to task impact their has established risks, The Board of levels and tolerated can be that The risk and likelihood. continuously are is willingtake to it that risks the A risk Committee. and Risk Audit examinedthe by is register in address this. place to of sub-committee a Committee is and Risk Audit The assistsand Board the in its Board the responsibility risks. the of governance for the management to has delegated The Board risk designto and implement responsibility the risks. measures and to monitor management to Committee meets periodically and Risk Audit The mattersvarious the including discussionsconsider of and methodology. framework assessments, risk risk the risk at Committee looks and Risk Audit The and frameworks methodologies and ensures that an on- This is well managed. are risks unpredictable going process. submitted is report management risk annual The the to Board Committee and and Risk Audit the to These periodically are responses. containing risk the monitored. managing purposesall of is in place for register risk A risks. required the Committee provides and Risk Audit The effectivenessthe of evaluation the in comfort level of process. management risk the of √ √ √ √ √ √ √ √ √ √ 4. THE GOVERNANCE 4. OF RISK The Board should be The Board the responsiblegovernance for risk. of The Audit The CommitteeAudit should and the Board to report has shareholders on how it discharged its duties. should determine The Board tolerance. risk levels of the Committee Audit and The Risk Audit Committee should or in carrying Board the assist out responsibilities. its risk to should delegate The Board the responsibility management and implement design, to management risk the monitor plan. that should ensure The Board assessmentsrisk are performed basis. continual a on that should ensure The Board and frameworks methodologies increase to implemented are anticipating of probability the risks. unpredictable that should ensure The Board considers and management implementsrisk appropriate responses. should ensure The Board monitoring by risk continual management. should receive The Board assurance regarding the the risk effectiveness of process. management 4.1 PRINCIPLE DESCRIPTION OF PRINCIPLE3.10 COMPLIANCE 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 BTC has an effective and independent Audit and Risk and Risk Audit independent and an effective has BTC a Committeereporting the andto Board chaired by Director. Non-Executive and Audit has an andeffective independent BTC Committee comprising accounting qualified Risk Non- an Independent by professionalsand chaired Director. Executive an by Committee is chaired and Risk Audit The Director. Non-Executive Independent statementsThe annual financial and are evaluated Committee. and Risk Audit the by approved internal that Committee ensures and Risk Audit The in guarantee umbrella providesthe function audit assurance providers namely other with collaboration Revenue Compliance, Regulatory Management, Risk auditors External Assuranceand Fraud Management. to Audit Internal by carried out work the also review reliance level of the assuranceand determine provide work. audit be placed on internal to are Committee and Risk Audit the All members of qualified. adequately plans are annual audit function’s Audit The Internal The Committee. and Risk Audit the by approved reports periodically function the to Audit Internal and accessBoard has theunfettered to Committee. reviews Committee periodically and Risk Audit The management and risk profile risk Company’s the the risks that view the The Committee is of approach. are being addressed. adequately the recommends Committee and Risk Audit The and the Board to auditor the external of appointment Annual General Meeting. the to COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS √ √ √ √ √ √ √ √ √ 3. AUDIT COMMITTEES 3. The Board should ensure that that should ensure The Board an effective has Company the and Audit independent Committee. Audit Committee members Audit should skilled be suitably and Non- experienced Independent Directors.Executive The CommitteeAudit should an Independent by be chaired Director. Non-Executive The CommitteeAudit should oversee integrated reporting. The CommitteeAudit should combined a that ensure assuranceapplied model is co-ordinated a provide to all assurance to approach activities. The CommitteeAudit should expertise, the satisfy of itself resources the and experience of finance function. Company’s should be Committee Audit The overseeing responsible for of audit. internal should be Committee Audit The the of an integral component process. management risk Committee is Audit The recommending responsible for the external of appointment the and overseeingauditor the process. audit external 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 PRINCIPLE DESCRIPTION OF PRINCIPLE COMPLIANCE COMPLIANCE PRINCIPLES WITH KING III continued GOVERNANCE GovernanceCorporate Report

128 131 COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS A compliance framework is monitored by the BTC BTC the by is monitored compliance framework A the Company the office of legal through team all with is compliant BTC view, Board’s the In Secretary. laws and regulations. members new Board process for The induction attempts thesensitiseto Directors all with lawsand astheir well as affectingtheregulations company rolesand responsibilities include fiduciary which duties. is identified and regulations laws to Compliance risks, as market such dimensions, risk different under adequately are and etc., finance risks, risks, regulatory considered. responsibilities ensuring level of adequate an has BTC laws and compliance all applicable regulations. with function Audit Internal dedicated a has The Company detail this responsible for above See 7.1 Audit reports Audit the quarterlyto The Internal to in order audits Committee on carried out and Risk assess controls. the internal effectiveness of above See 7.1 above See 7.1 √ √ √ √ √ √ √ √ √ 7. INTERNAL AUDIT 7. 6. COMPLIANCE WITH LAWS, RULES, CODES AND STANDARDS CODES RULES, COMPLIANCE WITH LAWS, 6. The Board should ensure that that should ensure The Board complies with Company the considersand laws applicable to non-bindingadherence codes rules, and standards. and each individual The Board working a should have Director of understanding effect the of codes rules, laws, applicable the Company standardsthe on and and its business. an should form Compliance risk Company’s the integral part of process. management risk should delegate The Board the to management an effective of implementation and compliance framework processes. that should ensure The Board based risk an effective is there audit internal should a follow audit Internal to its approach plan. risk-based should Internal provide audit the written assessmenta of the Company’s effectiveness of and control internal system of management. risk The CommitteeAudit should overseeingbe responsible for audit. internal should Internal be audit strategically to positioned achieve its objectives. PRINCIPLE DESCRIPTION OF PRINCIPLE COMPLIANCE 6.1 6.2 6.3 6.4 7.1 7.2 7.3 7.4 7.5 A risk management report containing report all high level management risk A of level the and impact their risks, and operational Annual Report.responses the included in are understandsThe Board the importancethe of technology and associatedgovernance information IT for responsibility the has delegated It risks. issues to governance the Managing through Director personnel. Management appropriate the most operations, BTC’s of component significant a is IT technologiesand platforms, basedare on IT which of processes and are crucial to its performance and attention is adequate being such, As sustainability. given to IT. investing, implementing for The responsibility the to is delegated function and managing IT the IT the within functions as other as well management infrastructure. managing IT governance the Responsibility for The management. to is delegated framework decision- supports and efficient effective framework resources IT utilisationmakingthe of around the Company’s of achievement the to facilitate objectives. of duty the is risk IT-related of The management the part of are IT relatingto Risks management. IT BTC. within function management overall risk management ensures project good management principles applied. are overall the assets an integral IT part of are the In BTC, therefore, and are, the Company structure of asset managed. adequately overall risk the is part of management risk IT Committee. and Risk Audit the of profile management COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS √ √ √ √ √ √ √ √ 5. THE GOVERNANCE 5. TECHNOLOGY (IT) OF INFORMATION The Board should ensure should ensure The Board are processes there that in place enabling complete, and accurate relevant, timely, to disclosure accessible risk stakeholders. The Board should be The Board Information responsible for (IT) governance. Technology should be aligned the with IT performance and sustainability Company. the objectives of to should delegate The Board the responsibility management an IT of implementation the for framework. governance should monitor The Board IT significant and evaluate investments and expenditure. an integral should form IT risk Company’s the of part management. should ensure The Board assets information that are effectively. managed Audit and Committee Risk A the should assist Committee its in carryingBoard IT out responsibilities. 4.10 5.1 5.2 5.3 5.4 5.5 5.6 5.7 PRINCIPLE DESCRIPTION OF PRINCIPLE COMPLIANCE COMPLIANCE PRINCIPLES WITH KING III continued GOVERNANCE GovernanceCorporate Report

130 133 The Board upholds globally recognised high standards upholds The Board recognised high globally of integrity reporting ensuresthe and rigorously of reporting disclosure for purposes. before data any the Sustainability reportingas part of is included Annual Report. COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS √ √ 9. INTEGRATED REPORTINGAND DISCLOSURE INTEGRATED 9. The Board should ensure the the should ensure The Board Company’s the of integrity Integrated Report. Sustainability reporting and should be integrated disclosure financial Company’s the with reporting. 9.1 9.2 PRINCIPLE DESCRIPTION OF PRINCIPLE COMPLIANCE COMPLIANCE STATUS AND ADDITIONAL COMMENTS AND ADDITIONAL COMPLIANCE STATUS The Board is aware of reputational risk and itsand risk reputational of aware is The Board operations, the Company’s on effect potential issues reputational takes It performanceand results. and theseseriously discussed Board are regularly at meetings. and the structure Management The BTC the deal with adequately organisational responsibility stakeholders. issuesvarious relating the to has delegated itsThe Board responsibilities to various stakeholders to with address the relationship the to some in instances, Board Committeesto and, management. and carries employer an equal opportunity is BTC its ethical within activities and with guidelines out all shareholders As such, the utmost impartiality. information and receive equitably treated are simultaneously responsible in practice a adopted has BTC itswith and effectively communicatingtransparently stakeholders.various various resolution has dispute mechanisms with BTC suppliers, such as employees, customers, stakeholder, etc. shareholders, community, √ √ √ √ √ √ 8. GOVERNING RELATIONSHIPS 8. STAKEHOLDER The should Board appreciate perceptions stakeholder’s that reputation. a company’s affect to should delegate The Board to proactively management deal stakeholder with relationships. The should striveBoard to appropriate achieve the balance between various its in the groupings, stakeholder Company. best intereststhe of Companies should ensure of treatment equitable the shareholders. and effective Transparent with communication stakeholders is essential for building and maintaining their and confidence. trust should ensure The Board resolved disputesare that and efficiently as effectively, as possible. expeditiously PRINCIPLE DESCRIPTION OF PRINCIPLE COMPLIANCE 8.1 8.2 8.3 8.4 8.5 8.6 COMPLIANCE PRINCIPLES WITH KING III continued GOVERNANCE GovernanceCorporate Report

132 135 RISK MANAGEMENT RESPONSIBILITY MANAGEMENT RISK is and to essential BTC within risks of management The effective is responsibleThe Board for objectives. BTC’s of delivery the underpins processesthat stipulate management which risk the of oversight the has It across the business. managed and appropriately are identified risks the BTC’s reviewing effectivenessthe of for responsibility the delegated assess, systems established including the identify, to controls, internal Committee. Audit and the Risk to risks, and manage monitor BTC has adopted a global framework for identifying and managing risk for global framework a adopted has BTC its both and to operations in relation levels, tolerance defined within The in itsstrategy. as identified upside risks to relative appetite risk and Committee Executive the been designed has provide to framework decision enable informed to and risk over sight line of clear a with Board systematic, a in risk manage to helps BTC This framework making. manner. and cost-effective transparent PHILOSOPHY RISK BTC process is fundamental management risk an effective recognisesthat BTC that aware is BTC achieving to its business and itssustainability. goals of management business better opportunitiesthrough can be enhanced more a that aims to ensure process therefore management The risk risks. exists connection explicit and more between managinginter-dependent can manage it also believesthat BTC businessthe and managing risks. and believes risks its manage to employees equipped are if only risks enterprise-wide which facilitates risk the culture corporate the is it that risk eliminate possibleto is not it that aware is BTC process. management seeking it eliminate to than rather manages risk therefore and entirely completely. is and financial risks compliance operational, Understandingstrategic, BTC’s process. and oversight management risk BTC’s of vital element a an end in itself, is not programme and oversight management risk BTC achieving in itsset goals. management support process to a but management its how comprehensive risk no matter understandsthat nor be exhaustive, assumedto be cannot it system be, may and control negative developments in will prevent it certainty provide that can it is It effective. its will be fully actions mitigating that business or BTC’s still be identified may risks unknown, yet as new, that note to important material a could have report this in identified risks the of any that and liquidity results operations, of financial position, adverse on BTC’s effect actual outcome including the to in the forward-looking those or referred Annual Report. statements this contained in 5 drawing up a risk risk drawinga up A comprehensive comprehensive A both and both internal external, involving external, nature, impact and impact nature, mitigation strategy. mitigation universe and clearly approach to all risks, all to risks, approach defining the risks, their their defining the risks, 4 managing and mechanisms for mechanisms for controlling risks of process control of A complete framework framework complete A 3 supervision THESE ARE: between the risk between the risk for itsand control for generating functions Independence of the the Independence of risk function, covering function, risk all risks and providing all risks and those responsible an separation adequate 2 management governance model governance that assigns all risks that Risk for their control and control their for to those to responsible An organisational and BTC faces a wide range of risks, both internal and internal both risks, of wide range facesa BTC significant can have which organisation, the to external considers BTC its operations. of outcome the on impact to be fundamental to good governance management risk corporatethe integralan practicesand of part processthe of recognisesthat BTC process. governance succeed, businessthe to for is crucial management risk shareholders. the for value its objectivesand create meet BTC considers risk as a natural part of any any of part natural a as considers risk BTC of business management processthe and operating and anphilosophy key a as risk itsactivities. of integral component RISK MANAGEMENT ACTIVITIES AT BTC ARE GOVERNED BY THE FOLLOWING THE FOLLOWING ARE GOVERNED BY BTC AT ACTIVITIES MANAGEMENT RISK PRINCIPLES, WHICH ARE ALIGNED WITH ITS STRATEGY AND BUSINESS MODEL. MODEL. AND BUSINESS STRATEGY ALIGNED WITH ITS ARE WHICH PRINCIPLES, 1 planning The integration of the culture of of culture the of attitudes, values, values, attitudes, throughout BTC’s BTC’s throughout risk management management risk processes, decision processes, making and business GOVERNANCE Report Management Risk

134 137 5 Classifying the risks medium high, classifiesas, risks BTC potential low basedtheir on or them of and the likelihood impact risk a where Therefore, occurring. occurring of high likelihood a has the on impact potential the and or position financial business, it assessed is reputation as high, critical. would be considered

Insurance reporting to give management sight sight Insurance reporting to give management a BTC risk universe risk assessrisk to specific BTC the a of key risks, actions and indicators through monthly Risk Risk monthly and indicators through actions risks, key of Committee meetings. ongoing billing converged project. make to need they and experience claims and information, transfer risk businessthe BTC in line with for decisions informed management. and cost systems for and IS Technology (SPOF) for Failure of Single Point and implementation correction. the full utilisation of Barnowl, a global risk management management global risk a Barnowl, full utilisationthe of standardisation the This allows tool for global risk reporting tool. information sharing of the and all risks stored on data the of across BTC. Incr Cond Enhanced Risk Cond Developed risks the sources of the operatesand in which BTC environment strategy, purpose, be exposedthe may in line with which BTC to operations/processes. Cond Es the the risk ion of the risk by by risk the ion of ing the risk owners monitoring improve to risk with eased engagement including the projects, assessments key Risk ucted for assessmentsystems and all identified on risk a ucted organisation.the within survey maturity risk a ucted reporting including risk methodology consistent a tablished 6 Monitoring and reporting the risks are strategic, and tactical operational, All across the business, risks continuous As part of system. management risk the into captured made BTC framework, risk the strengthening of and improvement months: 12 following last the the enhancements over ransferring the risk. ransferring the risk. Accept T Eliminat adopting strategyan exit Avoiding rol strategiesrol usually

1. 2. 3. 4. Determining the risk response Determining risk the Cont are: considered BTC’s risk management approach and practices continued to focus on minimising focus to and practices continued approach management risk BTC’s business Company the the on enable risks to objectivesand adverse of the impact balance. return risk opportunities baseda on market leverage to 2 Setting the risk appetite Settingthe risk is determined appetite risk BTC’s This allows risk. type the of by of way controlled more a for Aggregation levels. managing risk is done qualitatively, risk total of assesses and the management the consolidated BTC’s of acceptability profile. risks 1 Defining the risks in management levels of Various operatingeach define business unit at tolerance according risks to risk operational, process, project, the tactical strategic and levels. Assessing and likelihood the impact organisationthe on risks the of occur should they assessed are Risks based on the them occurring and the of likelihood businessthe on (i.e. possible impact business operatingon customers, employees, systemsand process, and brand financial position, etc.) reputation, THE PROCESS OF DEFINING, OF DEFINING, THE PROCESS CLASSIFYING ASSESSING, IS RISKS AND MONITORING BELOW: OUT SET FINANCIAL REGULATORY REPUTATIONAL MARKET SHAREMARKET RISK CONSEQUENCESRISK TECHNOLOGICAL BTC ENTERPRISE-WIDE RISK RISK ENTERPRISE-WIDE BTC PROCESS MANAGEMENT In order to manage risk, BTC identifies BTC risk, manage to In order them ranks faces, analysesand it risks and occurrence of likelihood the by and consequences, significance of ways effective most determinesthe Headline BTC’s them. manage to into risks Register the groups Risk categoriesfive broad - people, customers technology, processes, High level risk shareholders. and place under assessmenttakes dimensionsdifferent and such risks, operational analysis includes, obsolescence network risks, market processes internal risks, risks, etc. risks, /compliance regulatory PRODUCT PROCESSES CUSTOMERS RISK EVENT RISK IMPACT RISK SHAREHOLDERS On identification, risks are analysed are risks On identification, and occurrence of the likelihood as to business. the on impact potential their then developed and plans Action are eliminate or mitigate to implemented risks. identified to exposure unwanted managers Individual allocated are assessing responsibility for and within managing identified risks the their and Risks business units. their corresponding subject are mitigation BTC. within review to Established business reporting systems that to ensure exist are escalatedrisks through significant businessoperating units division or the the Executive Committee and to Board. TACTICAL STRATEGIC STRATEGIC COMPLIANCE OPERATIONAL SOURCE RISK OF The overall internal Risk Function Function Risk The overall internal Generalthe of responsibility the is and Audit Internal Manager, Day-to-day Management. Risk identification, risk for responsibility mitigation, evaluation, analysis, reportingand monitoring rests with operatingthe and business divisions and these the Company units of Risk Head of the by coordinated are and Divisional Risk Management management risk BTC’s Champions. all operating requires divisions policy and businessand units identify to assess are to which they the risks registers Risk usedto are exposed. source, their risks, identified document possible consequences and control mechanisms. continued GOVERNANCE Report Management Risk

136 139 MITIGATING FACTORS MITIGATING BTC maintains a robust and constructiveand robust a maintains BTC regulators. with engagement requirements regulatory to Full compliance controls vigilance on internal ensuringby monitoring and strict governance controls. Prioritisation of network modernisation network and Prioritisation of optimisation deployment. assets critical ensures that are currently BTC and its so systems protected, are resilient, on customers or impact avoided is any that minimised. BTC implements an annual robust BCM implementsannual robust an BTC testing enhance to programme and review resiliency. network Entrenched culture of innovation with clear clear with innovation of culture Entrenched processes and governance. BTC is modernising is its deliver to BTC network experience. user and differentiated reliable End to end project management to enhance to management end project to End efficiency. Capacity building and talent management, Capacity buildingmanagement, and talent includingsuccessionskills. planning on critical Through its talent management programme, programme, management itsThrough talent shift mindset cultural a has implemented BTC trust). speed of (Leadinginitiative at RISK DESCRIPTION result in the complete loss of loss complete of the in result

BTC operates in a licenced environment and environment licenced operatesa in BTC impact tariffs may reduce pressureto regulatory and position & competitive share market on BTC in statutes result may other to none compliance fines and penalties. Network obsolescence, network failures, failures, network obsolescence, Network the monitoring & visibility of inadequate security cyber integrity, data system, network elements network vandalism of & theft breaches, contractstimes leads vendor and poor Major incidents caused by suppliers, systems suppliers, incidents causedMajor by mode, failure of single point operating on disasterstechnology natural an extreme or could failure, on sites causingsevere impact technology key revenuesand reputation. customers, BTC’s failure to provide differentiated solutions differentiated provide to failure BTC’s to customers vs. experience superior offer to to due erosion revenue pushing products, cannibalisation sales product and of skill set.lack Increased churn due to poor quality of service of quality poor to Increased churn due slow turnaround times on and standards, resultinginstallationand maintenance in bad performance product and experience customer Delayed resolution of converged billing converged Delayed resolutionof challenges. implementation Talent retention in limited critical skills in IP, IT, IT, in IP, skills critical in limited retention Talent & Pricing Cost IoT, Security, Cyber services, Cloud to competition due Poor work culture that impacts on Strategy impactsStrategy on that culture work Poor execution. CONTEXT REGULATORY REGULATORY PRESSURE TECHNOLOGY TECHNOLOGY RISKS BUSINESS BUSINESS CONTINUITY MANAGEMENT INNOVATION QUALITY OF QUALITY SERVICE CONVERGED BILLING SYSTEM LIMITED CRITICAL LIMITED CRITICAL SKILLS CULTURE MITIGATING FACTORS MITIGATING mechanical systems, data systems, IP IP systems, data mechanical systems, mobile systems, Enterprise systems, SHE and systems, systems and IT This process assures management. serviceavailability high level of a the customersto and ensures that is priority to given appropriate resources that systems during failures, restoration and fault recovery for crises that to ensure available, are and resolved managed time, on are recovery, and provides for guidance escalationand crisis coordination. BTC is strengthening its brand, accelerating strengthening is its brand, BTC servicesand new products of introduction the will promote pricingthat model and fair revenues and increase BTC’s loyalty customer share. and market Increased resource efficiency, the creation the creation Increased resource efficiency, and services, affordable new innovative of management. credit effective and the implementation of a robust robust a of implementation the and business resilience. for arrangement is implementingan end BTC this To structured BCM testingannual and to functions on critical schedule protection, assurance, provide and mitigation preparedness, systemand process response for The mission systemscritical recovery. the to limited are not include but transmission systems, network and power switching systems, RISK DESCRIPTION BTC faces increased competition from a variety variety a faces from increased competition BTC new market providers, technology new of entrantsand evolving needs customer Economic pressuresassociated high with Economic spending, decline in consumer unemployment, pressuresinflationary on disposable income, customers, key cuttingcost measures by in low demand result tariffs increase in utility on BTC spending decrease in power a and products. CONTEXT COMPETITION ECONOMIC DECLINE ECONOMIC TOP TEN RISKS TOP astenfollows: are top risks The businesses. BTC’s affect may factorsseveral that risk are There This framework is implemented is implemented This framework defined comprehensively usinga Business Management Continuity which has been modelled Framework, standard – leadingthe on industry global leading practices ISO22301, and such institutesguidelinesfrom Business Institute the as Continuity Institute Disaster Recovery the (BCI), which Kingthe and III report, (DRI), people, integration of the propose technologiesand processes as part of management organisation-wide risk continued GOVERNANCE Report Management Risk BUSINESS CONTINUITY MANAGEMENT CONTINUITY BUSINESS and corporate governance management risk good an integral (BCM) of part considers Business Management BTC Continuity itsalign it has reviewed to existing BTC framework BCM improvement, continuous of as part and end, this to practicesand, and differentiated quality network improved ever-changing demand for the developments technological to customer and experience. customer

138 FINANCIAL REVIEW 140 141

Financial Review 143 10 Year Review 146 Financial Overview 148 Revenue Analysis 150 FINANCIAL FINANCIAL REVIEW REVIEW 142 143

FINANCIAL REVIEW AND MANAGEMENT DISCUSSION 07 This Financial Review and Management Discussion reviews the results of the operations, performance and financial position of the Corporation for the year ended 31 March 2019.

The commentary is intended to help the reader understand the results of the operations and financial condition of BTC and is provided as a supplement to be read in conjunction with the Company’s audited annual financial statements for the year just ended compared with the year ended March 2018. The Audited Annual Financial Statements (AFS) and the accompanying notes are prepared in accordance with International Financial Reporting Standards (IFRS) and reported in Botswana Pula (BWP). FINANCIAL REVIEW 144 Financial Review and 145 Management Discussion

Throughout the commentary, references to “We”, “Our”, the “Company”, “Corporation”, “BTC” and “BTCL” all refer to Botswana Telecommunications Corporation Limited. BTC is a 10 Year financial trend solitary Company established under the Companies Act and presently does not have any In keeping up to the tradition, the commentary opens with a 2 paged, 10-year reproduction of the Corporation’s subsidiaries or associates. The Corporation is a converged telecommunications operator footprint which highlights the transformation journey that BTC has undergone including but not limited to: offering fixed, mobile and broadband (fixed data) services to individuals, enterprises and • In 2012, in line with the decision of the changes resulting in increased network related other licensed service providers. These segments are further broken down or analysed into Government of Botswana to commercialise costs, a reduction in revenue lines, increased distinct revenue sources notably voice, access service, data usage and provision of customer and privatise BTC, it was converted to a public competition and, more importantly, substantial premises equipment. These analyses are designed to assist management and other readers company limited by shares, continuing with all wholesale tariff reductions. to compare the operating results and financial performance in a meaningful way. existing assets, liabilities, operations, licenses, etc. • In both instances (2014 and 2016), BTC’s value • The new entity assumed the name Botswana in use of its asset were below their carrying Telecommunications Corporation Limited. On the amounts, necessitating impairment adjustments Basis of Financial analysis and other measures same date, BTC also changed from being a tax- for the respective years. exempt entity to a tax paying entity, falling under Unless expressly indicated otherwise, BTC INCLUDES THE FOLLOWING MEASURES BECAUSE IT BELIEVES CERTAIN the purview of the Income Tax Act regulations. • In April 2016 BTC was listed on the Botswana Stock figures in the review have been INVESTORS USE THEM AS A MEANS OF ASSESSING FINANCIAL PERFORMANCE With the change in tax status, the Corporation Exchange following an Initial Public Offering (IPO), extracted from the AFS and are AND POSITION: changed its dividend policy from the then making it the first listed telecommunication entity therefore IFRS compliant. One such prescribed 25% to a rate determined by the Board in the exchange. The IPO included the issue of 250 departure is the 10-year trend • Gross profit is calculated as revenue from contracts with customers less of Directors. million subscription shares, thereby increasing the which, for purposes of computing costs of goods and services sold with the gross profit margin being gross total number of outstanding ordinary shares to the measures such as EBITDA, has had profit divided by revenue from such contracts. • Network separation in 2014: In line with a current 1.05 billion. the order of account lines re-aligned Government directive, all fibre network assets, in relation to IFRS, some of the • Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) related capital grants and deferred revenue • BTC has continued to be a self-financing and balances have been re-classified and are calculated as gross profit plus other income less all costs but excluding amounting to P284m were transferred to debt-free enterprise since fully paying off its some of the numbers summarised. depreciation, amortisation, interest and taxation. The EBITDA margin is the newly created Botswana Fibre Networks Government loans and redeeming the bonds Reconciliations or explanations have EBITDA divided by revenue derived from contracts with customers. (BoFiNet). BTC also provided P122m cash funding that were issued. This is on the face of a been included in areas where there as initial set up costs for BoFinet. The network defined programme over a period of continued are departures from, or differences to, • Earnings Before Interest and Taxes (EBIT) or Operating income, is calculated separation exercise resulted in a P400m reduction investments in infrastructure through a number of the audited accounts. as net earnings before finance costs (net of finance income) and income in shareholder equity. projects aimed at modernising the infrastructure taxes. Operating margin is therefore the EBIT divided by revenue derived and expanding network capacity where needed. It should also be noted that BTC from contracts with customers. • Following the separation and the loss of cash- There has been a steady migration to next presents other financial performance • flows attributable to the transfer of backbone generation service provider networks to support and position measures including the • Return on average capital employed (ROCE) is computed as EBIT over the network plant and equipment to BoFinet, an converged service offerings and requirements of various margins (Gross profit, EBITDA, average (sum of opening and closing balances divided by two) capital impairment charge of P266m was recognised. our customers. EBIT and Net profit) and various employed, i.e. total assets minus current liabilities. measures of returns such as ROA, ROE, • In the same year, a work force restructuring • The cornerstone of this transition has, to a large ROCE, etc. These measures do not have • Return on average shareholders’ equity (ROE) is computed as profit for the exercise was undertaken resulting in separation extent, been propelled by our innate ability to a standardised meaning under IFRS year (PAT) over average shareholders’ equity. costs of P31m. initiate and build successful partnerships and and therefore may not be comparable forge valuable relationships with a multitude of to similarly titled measures presented • Return on average assets (ROA) is computed as profit for the year over • Two years later, the impairment charge increased associates. The sustainability of these relationships by other publicly traded companies, as average total assets. by P522m on account of significant changes in the has played a pivotal role in our quest to provide a other entities may define these terms business environment attributable to regulatory world class telecommunications service. in different ways. • Solvency ratio is calculated as profit for the year plus depreciation charge for the year over both long-term and short-term liabilities. FINANCIAL REVIEW 146 10 Year Review 147

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Performance (P 000's) Revenue from contracts with customers 1,448,224 1,566,908 1,615,022 1,485,839 1,479,988 1,463,931 1,384,222 1,173,909 1,065,112 958,444 Cost of services and goods sold (excluding depreciation and amortisation) (396,361) (461,955) (541,447) (471,427) (399,923) (375,054) (397,505) (363,583) (302,171) (297,568) Gross Profit 1,051,863 1,104,953 1,073,575 1,014,412 1,080,065 1,088,877 986,717 810,326 762,941 660,876 Other income 246 1,455 6,094 4,121 15,254 9,444 565 1,471 3,481 Selling and distribution costs (37,332) (41,096) (48,728) (42,188) (38,168) (29,810) (23,649) (26,372) (98) (470) Administrative expenses (excluding depreciation) (403,519) (422,570) (389,116) (397,012) (389,309) (367,264) (317,624) (276,420) (268,535) (227,840) Other expenses (262,443) (273,313) (272,489) (317,038) (315,666) (282,000) (198,669) (134,645) (144,022) (116,280) Earnings before interest, depreciation, taxation and amortisation(EBIDTA) 348,815 369,429 369,336 262,295 352,176 419,247 447,340 374,360 350,286 319,767 Depreciation and amortisation (199,366) (156,098) (147,321) (259,593) (202,070) (217,782) (220,353) (191,218) (166,646) (185,291) Amortisation of capital grants 29,657 29,453 29,453 25,304 24,397 42,670 38,669 40,489 25,316 25,914 Impairment of property, plant and equipment - - - (522,404) - (266,051) - - - - Earnings Before Interest and Taxation (EBIT) 179,106 242,784 251,468 (494,398) 174,503 (21,916) 265,656 223,631 208,946 160,390 Interest Income 17,606 21,131 23,075 26,451 26,066 25,144 18,451 13,415 21,311 30,891 Interest costs (Financing costs) - - - - - (208) (184) (184) (2,866) (10,228) Profit Before Baxation (PBT) 196,712 263,915 274,543 (467,947) 200,569 3,020 283,923 236,862 227,391 181,053 Income tax expense (34,652) (46,564) (37,194) 97,127 (53,814) (2,880) (10,277) - - - Profit for the year (PAT) 162,060 217,351 237,349 (370,820) 146,755 140 273,646 236,862 227,391 181,053

Position (P 000's) Property, Plant, Equipment and Intangible assets 1,744,694 1,488,331 1,279,488 1,028,771 1,556,197 1,251,793 1,886,115 1,772,827 1,444,597 1,212,928 Deffered taxation 27,502 51,634 87,947 123,738 26,611 89,751 - 7,052 9,692 - Other current Assets 497,827 442,829 442,040 406,481 455,316 434,926 315,680 310,667 209,880 266,071 Cash and cash equivalents 305,456 450,074 516,549 390,029 365,977 353,462 405,548 292,882 283,295 344,076 Total Assets 2,575,479 2,432,868 2,326,024 1,949,019 2,404,101 2,129,932 2,607,343 2,383,428 1,947,464 1,823,075 Capital employed 2,080,967 2,062,663 1,949,159 1,552,110 1,922,930 1,588,319 1,993,628 1,779,199 1,460,453 1,278,326 Non-current liabilities 95,319 113,899 130,322 180,842 201,512 198,050 304,337 345,784 263,553 215,012 Current liabilities 399,193 256,306 246,543 216,067 279,659 343,563 309,378 258,445 223,458 329,737 Total Equity and Liabilities 2,575,479 2,432,868 2,326,024 1,949,019 2,404,101 2,129,932 2,607,343 2,383,428 1,947,464 1,823,075 Capital Expenditure 455,820 299,793 398,969 254,570 264,498 194,846 333,896 380,456 401,915 348,318 Ratios Revenue growth (8%) (3%) 9% 0% 1% 6% 18% 10% 11% Earning per share (Thebe) (1, 050,000,000 shares) 15.43 20.70 22.60 (35.32) 13.98 0.01 26.06 22.56 21.66 17.24 EBITDA margin 26% 25% 25% 19% 25% 32% 35% 35% 35% 36% Current ratio 2.0 3.5 3.9 3.7 2.9 2.3 2.3 2.3 2.2 1.9 Capex to revenue ratio 31% 19% 25% 17% 18% 13% 24% 32% 38% 36% Capex to depreciation charge 2.3 1.9 2.7 1.0 1.3 0.9 1.5 2.0 2.4 1.9 Return on average equity 8% 11% 14% (21%) 8% 0% 15% 15% 17% Return on average capital employed 7% 10% 12% (19%) 8% 0% 12% 12% 14% Return on average operating assets 6% 9% 11% (17%) 6% 0% 11% 11% 12% Other Operational Data Staff strength 914 920 919 944 934 932 962 942 950 905 Economic data Inflation (consumer price inflation) 3.30 2.80 3.00 2.50 4.50 8.20 6.20 8.20 6.20 9.20 Value of Pula (1 Pula equals to US $) 0.09 0.10 0.09 0.09 0.10 0.11 0.15 0.14 0.15 0.15 FINANCIAL REVIEW 148 149 Financial Overview PROFITABILITY RATIOS

80%

REVIEW OF THE RESULTS BASED ON THE STATEMENT OR PROFIT OR LOSS AS PUBLISHED 60% All figures in P'000 2019 2018 2017 2016 2015 P'million % 40% Revenue from contracts with 1,448,224 1,566,908 1,615,022 1,485,839 1,479,988 (118,684) (8%) customers 20% Cost of services and goods sold (576,353) (600,895) (675,573) (721,632) (574,647) 24,542 (4%) Gross Profit 871,871 966,013 939,449 764,207 905,341 (94,142) (10%) 0% - Other income 29,903 30,908 35,547 29,425 39,652 (1,005) (3%) -20% Selling and distribution costs (37,332) (41,096) (48,728) (42,188) (38,168) 3,764 (9%)

Administrative expenses (422,893) (439,728) (402,311) (406,400) (416,656) 16,835 (4%) -40% 2015 2016 2017 2018 2019 Impairment of property, plant and - - - (522,404) - - - equipment revenue growth EBIDTA margin net profit margin operating margin gross profit margin Other expenses (262,443) (273,313) (272,489) (317,038) (315,666) 10,870 (4%) - Earnings Before Interest and 179,106 242,784 251,468 (494,398) 174,503 (63,678) (26%) Taxation (EBIT) The downward movement in BTC’s the maturity of the business strategies Depreciation for the year increased results continued from the prior adopted on direct cost containment; from P156m to P199m following the Interest Income 17,606 21,131 23,075 26,451 26,066 (3,525) (17%) financial year with overall profit an encouraging trend in the face of completion and capitalisation of Profit before taxation (PBT) 196,712 263,915 274,543 (467,947) 200,569 (67,203) (25%) after tax (PAT) reducing from increased competition and regulation various significant strategic network P217m to P162m, representing a Income tax expense (34,652) (46,564) (37,194) 97,127 (53,814) 11,912 (26%) over the years. transformation projects - mainly Profit for the year (PAT) 162,060 217,351 237,349 (370,820) 146,755 (55,291) (25%) 25% decline year on year. This was fixed broad broadband and mobile mainly attributable to a P119m, or 8%, The cost containment exercise was broadband (FBB & MBB), a new data Earnings before interest, 348,815 369,429 369,336 262,295 352,176 11,912 (26%) decline in revenue from contracts further evidenced in the 4% reduction taxation, depreciation and centre at Kgale Earth Station - and with customers from P1.567 billion in Operating costs leading to Earnings amortisation(EBIDTA) other critical projects such as the new achieved in the previous year to Before Interest and Tax (EBIT) converged billing platform (C1). Due Earning per share (Thebe) 15.43 20.70 22.60 (35.32) 13.98 (25%) P1.448 billion. A 4% savings in the declining to P179m from P243m in the to the timing of the delivery of these (1, 050,000,000 shares) cost of services and goods sold prior year reducing the P94m deficit projects, there was no corresponding reduced the overall decline to P94m, at the gross profit level to P64m at Profitability ratios (%) or incidental contribution to resulting in an overall gross profit EBIT level, with most of the reduction the bottom line from a revenue Revenue growth (7.6%) (3.0%) 8.7% 0.4% 0.0% (4.6%) for the year of P872m, compared to coming from the employee costs perspective, hence the closing net Gross profit margin 60.2% 61.7% 58.2% 51.4% 61.2% (1.4%) P996m in the prior year.The gross under the administrative expenses profit margin declining from 14% in EBITDA margin 24.1% 23.6% 22.9% 17.7% 23.8% 0.5%) profit margin for the year was 60%, section. Consequently, the operating the prior year to 11%. As with other Operating margin 12.4% 15.5% 15.6% (33.3%) 11.8% (3.1%) a decline of 2% compared to prior margin for the year declined from 15% profitability ratios, the trend for the Net Profit margin 11.2% 13.9% 14.7% (25.0%) 9.9% (2.7%) year. With the exception of the 2016 in the prior year to 12% in the current past 3 years saw a steady reduction financial year (where the margin went year. As in the case of the gross profit but remained within the normal long- down to 51%), this was largely in line margin, this was still within the BTC’s term average range. with the Corporation’s average gross average over the period. profitability of around 60%, reflecting FINANCIAL REVIEW 150 Revenue Analysis Fixed Voice 151

Change in Millions % change Change in Millions % change All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 CAGR All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 CAGR

Total Revenue from 1,448.2 1,567.0 1,615.1 1,485.9 1,479.5 (118.8) (48.1) -7.6% -3.0% -1% Total Fixed Voice Revenue 510.3 524.1 520.8 488.6 490.5 (13.8) 3.3 -2.6% 0.6% 1% contracts with customers Voice 241.6 260.4 278.2 263.6 272.5 (18.8) (17.8) -7.2% -6.4% -3% Fixed Voice 510.3 524.1 520.8 488.6 490.5 (13.8) 3.3 -2.6% 0.6% 1% Access 131.4 121.7 115.1 121.4 121.4 9.7 6.6 8.0% 5.7% 2% Mobile 479.7 544.3 593.4 567.5 492.2 (64.6) (49.1) -11.9% -8.3% -1% Interconnect 20.9 21.3 19.4 18.5 15.4 (0.4) 1.9 -2.0% 9.8% 8% Fixed data 432.5 468.3 472.0 402.3 472.8 (35.8) (3.7) -7.6% -0.8% -2% Customer Premises Other 25.7 30.3 28.9 27.5 24.0 (4.6) 1.4 -15.2% 4.8% 2% 116.4 120.7 108.1 85.1 81.2 (4.3) 12.6 -3.5% 11.7% 9% Equipment (CPE) CAGR = Compound Annual Growth from 2015-19

Revenue from contracts with customers Revenue trend, challenges in increasing the proportion Fixed Voice (contributions over time) At P510m, fixed voice remained contribution of Mobile & Data in relation to Fixed a significant contributor to the

100% 1 650 80% 2019 overall sales revenue of BTC, though marginally down by P14m year 90% 70% 1 600 on year. The fixed line network 80% 2018 60% continues to increase in revenue 70% 1 550 contribution and provide a base for 50% 60% network convergence. Similar to the 2017 mobile segment category where the 50% 1 500 40%

P Million P primary cause of the decline was the 40% 30% 2016 voice category, voice calls revenues 1 450 30% too also pulled down the fixed voice 20% 20% category by P19m on account of the 1 400 2015 10% 10% overall switch in customers’ usage from voice-centric to more data 0% 1 350 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% centric products. 2017 2015 2017 2019 2018 2016 2015 2019 2018 2016 Voice Access Customer Premises Equipment (CPE) Interconnect

Fixed Voice Mobile Fixed Data Other Total Revenue from contractors with customers Prop. of Mobile and F.Data voice to Total revenue Prop. of Fixed voice to Total revenue This mirrored the prior year where growth rate (CAGR) only rising by which has seen immerse investments voice call revenue reduced by P18m a single percent between 2015 and in technology over the period is (6%) in relation to the 2017 financial 2019. This provides the business with centred around mobile and data, Revenue from contracts with customers ended the year at P1.448 billion, P119m lower than prior year reflecting a year. The P19m reduction was a steady revenue base in the face of BTC remains alive to the fact that the decrease of 8%. This was the second successive annual decrease following the 3% year on year decrease reported cushioned by a P10m increase in increasing competition in the mobile bulk of institutional and business in 2018. The decline was largely on the back of challenges experienced in the mobile services revenue stream which access line revenue due to solid sales and fixed data services and the communications is still predominantly registered a P65m (12%) drop compared to the prior year. BTC’s two other main revenue streams (Fixed Voice and in ISDN and line rentals. ever-evolving customer preferences fixed voice centric and will continue Fixed Data services) were not as badly affected, with fixed voice revenue remaining relatively flat at 3% while fixed with the gradual shift from fixed to remain BTC’s revenue generator for data revenue declined marginally by 8%. From a trend analysis perspective, voice telephony to mobile and data. the foreseeable future. fixed voice revenues have remained Although the current two-pronged flat with the compound annual strategy of growth and transformation The telecommunications sector in increasing pressure on already around a third each, with fixed voice general registered suppressed revenues stressed margins. revenue stream gaining 2% at the for the period under review due to expense of the mobile revenue stream. reduced consumer spending power. Despite our strategic intention to increase our mobile and broadband This in spite of the fact that from a In line with global trends, consumers market share, thereby growing the global and local perspective the fixed continued to switch to newer and contributions of these two revenue voice service is expected to shrink cheaper alternative products with streams in relation to fixed voice, the with growth expected to be driven by lower margins i.e. shifting from voice composition of the three revenue an improved mobile and broadband to data centric services, thereby streams has remained unchanged at (fixed data) services. FINANCIAL REVIEW 152 Mobile Revenue Fixed Data Revenue 153

Change in Millions % change Change in Millions % change

All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 CAGR All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 CAGR Total Fixed Data Revenue 432.5 468.3 472.0 402.3 472.8 (35.8) (3.7) -7.6% -0.8% -2% Total Mobile Revenue 479.7 544.3 593.4 567.5 492.2 (64.6) (49.1) -11.9% -8.3% -1% Usage 119.5 113.5 99.5 96.2 119.8 6.0 14.0 5.3% 14.1% 0% Voice 362.7 409.8 440.3 433.5 382.9 (47.1) (30.5) -11.5% -6.9% -1% Access 281.1 301.3 300.4 302.2 343.5 (20.2) 0.9 -6.7% 0.3% -5% Interconnect 22.3 34.2 42.5 40.5 37.1 (11.9) (8.3) -34.9% -19.5% -12% Customer Premises 31.9 53.5 72.1 3.9 9.5 (21.6) (18.6) -40.4% -25.8% 35% Data 56.2 66.9 66.3 46.4 24.3 (10.7) 0.6 -16.0% 0.9% 23% Equipment (CPE) Short Message Service 26.9 27.9 40.3 43.9 44.1 (1.0) (12.4) -3.7% -30.8% -12% (SMS) Customer Premises 11.7 5.5 4.0 3.2 3.8 6.2 1.5 113.1% 37.5% 33% Equipment (CPE) Fixed Data (contributions over time)

CAGR = Compound Annual Growth 47.1 30.5 from 2015-19 2019

Mobile Voice (contributions over time) innovative data centric products such 2018 as Live Social and My Connect bundles were successfully launched with 2019 2017 satisfactory uptake.

2018 Mobile voice was primarily responsible 2016 for the downward revenue trend, accounting for P48m of the P65m 2017 decline, which was in line with the 2015 prior year where it accounted for P31m 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 of a P50m reduction. Apart from the Access Usage Customer Premises Equipment (CPE) customer premises equipment (CPE) which registered a P6.2m year on 2015 year increase, the remaining mobile The fixed data or broadband services contributed P433m to the total revenue lines declined. revenue from contracts with customers, a P36m (8%) decline compared 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% to P468m in the prior year. Despite the decline, and against a backdrop Voice Interconnect Data SMS Customer Premises Equipment (CPE) Since 2017 the mobile market has of significant investments in both the fixed broadband and mobile LTE experienced a decline in the total networks, by the third quarter of the year there was a noticeable increase The overall decline in the mobile revenue segment was mainly subscriber base which impaired the in broadband uptake in the residential market segment, which was in attributable to unfavourable trading conditions which saw restrained prospect of mobile revenue growth in line with our Corporate Strategy of growth in data services. The expected consumer spending resulting in a 12% decrease in revenue despite the 2018. This was on the back of a slowing increase in the demand for data did materialise with increase in data introduction of new products and services and other initiatives to promote economy which negatively affected revenues expected to rise as the density of smart phones. uptake in the market. BTC’s mobile prepaid streams. BTC’s market share has remained largely The decrease in fixed data revenue metro network services. Continuing unchanged in relation to the other two From an internal perspective, the These disruptions affected customer came primarily from the access and from the prior year, there is a mobile houses, remaining between challenges that affected the mobile experience and airtime distribution customer premises equipment (CPE) continuing migration of national 15% and 18% over a 5-year period. segment began in the first quarter of channel partner’s confidence leading which were P20m and P22m lower leased lines, to metro ethernet services, the financial year, with the disruptions to subdued sales. BTC also experienced respectively than the previous year. which offer customers better services in service resulting from the migration delays in billing and the launch of new and a lower price per megabyte. of the mobile customer accounts to products. On a positive note, these Access data comprises retail and The reduction in the CPE revenue the new converged billing system. challenges were resolved and new wholesale national and international component was primarily the result of leased lines, ADSL, frame relay and once-off special projects in 2017-18. FINANCIAL REVIEW 154 Other Revenue 155

Change in Millions % change 2 500 160% While revenue from contracts All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 with customers declined by 140% P119m, there was a compensating Total Other Revenue 25.7 30.3 28.9 27.5 24.0 (4.6) 1.4 -15.2% 4.8% 2 000 120% decrease of P56m in total Directory services 11.4 12.5 12.4 12.8 12.8 (1.1) 0.1 -8.8% 0.8% operating costs as a result of Value Added Services 1.9 2.3 2.7 2.1 3.0 (0.4) (0.4) -18.3% -14.8% 100% costs directly related to revenue Property rentals 5.9 1.7 2.3 3.2 3.2 4.2 (0.6) 248.4% -26.1% 1 500 80% or volume of traffic, such as Cost of works 4.8 9.2 10.5 7.0 1.0 (4.4) (1.3) -48.0% -12.4% call based costs (interconnect Third party collection fees 1.7 4.6 1.0 2.4 4.0 (2.9) 3.6 -62.9% 360.0% 60% costs), dealer commissions, regulatory turnover fees.; the 1 000 40% CAGR = Compound Annual Growth from 2015-19 management of controllable costs 20% such as consultancy costs, some elements of employee costs led 500 0% Although very small in relation to the main revenue lines, other revenue category contributed P26m to total revenue, to a reduction of operating costs. which was P4.6m lower than prior year. Directory services remained the anchor product, delivering P11m followed by -20% Reduced operating costs were however partly offset by a P43m property rentals which contributed P6m, P4.2m higher than prior year. 0 -40% 2015 2016 2017 2018 2019 increase in depreciation charge related to new investments in Operating Costs % to revenue excl. impairment Proportion to revenue Growth Fixed and Mobile broadband, the Operating Costs data centre and converged billing. The trend over years has been a 100% general decrease in the total cost base due to the effectiveness of 90% Change in Millions % change the Corporation’s cost containment 80% measures, aligned to our strategic All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 CAGR theme of efficiency which requires 70% Operating Costs 1,299.0 1,355.0 1,399.1 2,009.6 1,345.1 (56.0) (44.0) -4.1% -3.1% -1% that the Company demonstrates Cost of services and goods sold 396.4 462.0 541.5 471.4 399.9 (65.6) (79.5) -14.2% -14.7% 0% 60% cost leadership through improved Depreciation and amortisation 199.4 156.1 147.3 259.6 202.0 43.3 8.8 27.7% 6.0% 0% margins, reduced operational costs Impairment of property, plant and 50% and improved returns. Consequently, equipment - - - 522.4 - - - 0.0% 0.0% N/a 40% and as already alluded to above, the Employee Costs 386.5 404.7 371.7 373.6 360.4 (18.2) 33.0 -4.5% 8.9% 2% proportion of costs to revenue (the Selling and distribution costs 37.3 41.1 48.7 42.2 38.1 (3.8) (7.6) -9.2% -15.6% -1% 30% inverse of the operating margin) has Other operating and administrative 279.4 291.1 289.9 340.4 344.7 (11.7) 1.2 -4.0% 0.4% -5% remained flat over the previous 5 costs 20% years. The anomaly in the 2016 year 10% was due to a once-off impairment Revenue from contracts with customers 1,448.2 1,566.9 1,615.0 1,485.8 1,480.0 (118.7) (48.1) -7.6% -3.0% -1% of property and plant which has not Operating costs as above 1,299.0 1,355.0 1,399.1 2,009.6 1,345.1 (56.0) (44.0) -4.1% -3.1% -1% 0% 2017 been repeated as the Corporation’ Percentage of revenue 90% 86% 87% 135% 91% 2015 2016 2018 2019 Cost of services and goods sold Employee costs Depreciation and amortisation value has remained higher than the Other operating and administrative costs Impairment of property, plant and equipment Selling and distribution costs carrying value of its net assets. Depreciation and amortisation as above 199.4 156.1 147.3 259.6 202.0 43.3 8.8 27.7% 6.0% Network depreciation and amortisation(included in cost of goods 180.0 138.9 134.1 250.2 174.7 41.1 4.8 29.6% 3.6% 1% sold in the AFS) Other depreciation (included in 19.4 17.2 13.2 9.4 27.3 2.2 4.0 12.8% 30.3% -8% administrative costs in the AFS)

CAGR = Compound Annual Growth from 2015-19 FINANCIAL REVIEW 156 157 Cost of Services and Goods Sold Change in Millions % change All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18

Depreciation & Capital 455.8 299.8 399.0 254.6 264.5 156.0 (99.2) 52.0% -24.9% 15% All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 CAGR Expenditure Cost of services and goods 576.4 600.9 675.5 721.7 575.1 (24.5) (74.6) -4.1% -11.0% 0% Depreciation and 199.4 156.1 147.3 259.6 202.0 43.3 8.8 27.7% 6.0% -0.3% sold amortisation Payment to International 213.2 228.5 289.3 268.3 221.4 (15.3) (60.8) -6.7% -21.0% -1% Excess of Capital 256.4 143.7 251.7 (5.0) 62.5 112.7 (108.0) 78.4% -42.9% 42.3% carriers and local operators expenditure over Depreciation and 180.0 138.9 134.1 250.2 174.7 41.1 4.8 29.6% 3.6% 1% Depreciation amortisation Impairment of property, - - - 522.4 - - - 0.0% 0.0% N/A Equipment and material 102.2 100.6 157.4 80.3 70.4 1.6 (56.8) 1.6% -36.1% 10% plant and equipment costs Capital Expenditure to 31% 19% 25% 17% 18% 0.1 (0.1) 64.5% -22.6% 15.2% License fee - BOCRA 46.2 46.3 40.7 46.9 44.6 (0.1) 5.6 -0.2% 13.8% 1% Revenue (%)

Write (up)/down of (12.5) 26.6 5.3 (7.0) 8.8 (39.1) 21.3 -147.0% 401.7% N/a inventories CAGR = Compound Annual Growth from 2015-19 Other cost of sales expenses 47.3 60.0 48.7 83.0 55.2 (12.7) 11.3 -21.2% 23.2% -4%

CAGR = Compound Annual Growth from 2015-19 500

800 45% Cost of services and goods sold, 400 40% 700 which has averaged about 40% of 35% total revenue, primarily comprises 300 600 of payments to international 30% carriers and local operators (37% 500 200 of total) and depreciation and 25% 400 amortisation charges related to 20% network work assets (31% of total). 100 300 15% In line with the overall reduction 0% 200 2017 10% in volumes of call traffic in 2015 2016 2018 2019 the current year, there was a Capital Expenditure Depreciation and amortisation 100 5% reduction of P15m in traffic-based payments to our interconnection 0 0% 2015 2016 2017 2018 2019 partners. BTC’s three-year strategic focus to March 2020 remains one of Transformation and Growth, anchored on three Cost of goods sold Depreciation and amortisation Payment to international carriers and local operators transformation pillars: commercial transformation, technological transformation and cultural transformation. With regard to the technology transformation pillar, BTC has set itself a target of transforming and modernising its network Additionally, there was a reduction current year was due to utilisation or grew to P180m, a P41m increase by continuously investing in the latest generation network technology. in the level of write-up of inventory sale of obsolete or slow-moving stock over the prior year on the back of balances which ended in credit hence the reduction in the provision completion and capitalisation of the at P12.5m, compared to the prior built up over the years. major strategic projects namely Fixed To that end, BTC has had a robust The only issue though is in the long-term aim is to now reign in the year write-down of P26.6m due to Broadband & Mobile Broadband, Data capital expenditure program with a corresponding movement on the level of capital expenditure in order obsolescence, bringing the overall These reductions were however Centre and converged billing platform. CAGR from 2015 of 15%, at an average depreciation and amortisation, to, amongst other things, allow for reduction to P39m. The reduction partially offset by the increase in All other lines did not materially of P335 million with 2019 showing a which, from a CAGR perspective has monetisation or commercialisation in the obsolete stock account in the depreciation and amortisation which change in relation to prior year. marked increase to P456m. As already remained unchanged (at 0%) only of the significant investments discussed, this was largely centred increasing recently on the back of already made. Our long-term goal around the network transformation completed projects. Taking a leaf is to continue growing the value of but also included other large-scale from the 2014 and 2016 impairments the company on a stable net asset projects including the revamp of exercises where the Company’s assets base to create sufficient impairment head office building, shops and offices value-in-use was below the carrying headroom. countrywide, and the renewal of the value, which triggered impairments Note – as indicated in the Operating costs table in the preceding page, total depreciation and amortisation was P199m for the Corporation with P180m being motor vehicle fleet. from an accounting perspective, BTC’s under cost of services and goods sold category and the balance under administrative expenses as depreciation for non-network assets. FINANCIAL REVIEW 158 159 Employee Costs Selling and Distribution Costs

Change in Millions % change Change in Millions % change

All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 CAGR All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 Salaries and wages 354.6 377.5 344.5 341.9 317.8 (22.9) 33.0 -6.1% 9.6% 3% Selling and distribution costs 37.3 41.1 48.7 42.2 38.1 (3.8) (7.6) -9.2% -15.6% Pension fund and group 19.5 16.5 18.0 17.2 15.7 3.0 (1.5) 18.0% -8.3% 6% Product Marketing Costs 23.8 26.5 38.2 29.6 27.6 (2.7) (11.7) -10.3% -30.6% life contributions (defined Sponsorship 13.6 14.6 10.5 12.6 10.5 (1.0) 4.1 -7.1% 39.0% contribution plans) Training costs 0.8 10.4 2.8 9.5 5.7 (9.6) 7.6 -92.1% 271.4% -38% Retrenchment costs 7.0 - - - - 7.0 - 0.0% 0.0% N/a At P37m, selling and administrative costs represented 2.6% of overall revenue from contracts with customers in line Other related employee 24.9 17.1 16.7 24.7 21.5 7.8 0.4 45.7% 2.4% 4% with the past 5-year average of 2.7%. Our sales and marketing drive have always been geared towards the attraction costs and retention of customers, with greater emphasis on the mobile sector where we command a small market share Employee Costs 406.8 421.5 382.0 393.3 360.7 (14.7) 39.5 -34.5% 275.1% 3% relative to other mobile operators. Capitalised to project work- (20.3) (16.8) (10.3) (19.7) (0.3) (3.5) (6.5) 20.8% 63.1% 187% in-progress Total employee costs to 386.5 404.7 371.7 373.6 360.4 (18.2) 33.0 0.0% 0.0% 2% profit and loss Other Operating and No of employees 914 920 919 944 934 CAGR = Compound Annual Growth from 2015-19 Administrative Costs

Change in Millions % change

All figures in P'millions 2019 2018 2017 2016 2015 18-19 17-18 18-19 17-18 CAGR 800 45%

700 40% Other operating and administrative costs 279.4 291.1 289.9 340.4 344.7 (11.7) 1.2 -4.0% 0.4% -5% 35% 600 Dealer commission 74.0 88.2 97.5 91.3 72.0 (14.2) (9.3) -16.1% -9.5% 1% 30% Billing costs 54.7 56.6 52.1 36.4 24.7 (1.9) 4.5 -3.3% 8.7% 22% 500 Utilities -electricity and 25% water 29.5 12.2 6.2 18.3 13.3 17.3 6.0 142.3% 96.2% 22% 400 20% Financial charges 26.4 13.7 13.3 21.7 8.2 12.7 0.4 92.8% 2.8% 34% 300 Repairs and 15% maintenance - non- telecommunications 17.0 17.8 17.5 23.6 29.0 (0.8) 0.3 -4.7% 1.9% -12% 200 10% equipment Other operating and 100 5% administrative costs 43.1 48.9 47.8 41.5 106.5 (5.8) 1.1 -11.9% 2.4% -20% Licenses - system and 0 0% 13.4 7.7 13.6 21.0 15.6 5.7 (5.9) 74.2% -43.6% -4% 2015 2016 2017 2018 2019 software Travel and entertainment 13.3 17.5 14.7 31.9 25.1 (4.2) 2.8 -24.0% 18.7% -15% Cost of goods sold Payment to international carriers and local operators Depreciation and amortisation Property upkeep 12.5 10.2 10.0 10.7 10.0 2.3 0.2 22.9% 1.7% 6% Consultancy 12.3 34.7 43.5 51.4 41.1 (22.3) (8.8) -64.4% -20.3% -26% Exchange gain (16.8) (16.3) (26.3) (7.4) (0.8) (0.5) 10.0 3.0% -38.1% 114%

Net employee costs, after capitalisation of costs to respective projects or assets, reduced by P18m, closing the year Reconciliation 279.4 291.1 289.9 340.4 344.7 at P387m. This was primarily due to the once-off productivity bonus that was paid in the previous year based on Administrative expenses per AFS 422.9 439.7 402.3 406.4 416.7 performance for 2016-17 financial year. No corresponding payment or provision was made in the year under review. Other operating expenses per AFS 262.4 273.3 272.5 317.0 315.7 Employee costs (classifed As at end of the year, BTC had a work force of 914 and a salary bill averaging 25% of revenue as has been maintained over on page 158) (386.5) (404.7) (371.7) (373.6) (360.4) the past 5 years. Depreciation - Other equipment (classified (19.4) (17.2) (13.2) (9.4) (27.3) under page 154) CAGR = Compound Annual Growth from 2015-19 FINANCIAL REVIEW 160 Other Operating and Cash-Flows, Cash Positions and 161 Administrative Costs Liquidity Ratios

Summarised Statement of Cash flows (5 years) All figures in P' millions 2019 2018 2017 2016 2015 400 40% Profit Before Tax (PBT) 196.7 263.9 274.5 (467.9) 200.6 350 35% Net increase/ (decrease) in cash and cash equivalents (341.3) (330.3) (148.0) 491.9 (188.0) 300 30% Cash-flows from operating activities 67.8 (50.6) (6.8) 724.8 43.3 Cash-flows utilised for investing activities (409.9) (278.1) (368.9) (224.0) (238.4) 250 25% Cash-flows from / (used in) financing activities 2.9 - 250.0 - (2.3) 200 20% Net foreign exchange on cash & cash equivalents (2.1) (1.6) (22.3) (8.9) 9.4

150 15% Cash and cash equivalents at beginning of the year 450.1 516.5 390.0 366.0 353.4 Cash and cash equivalents at end of the year : 305.5 450.1 516.5 390.0 366.0 100 10% Analysis of closing bank balances 50 5% Cash and bank and on hand 36.2 25.6 16.8 32.3 19.0 0 0% Short term deposits 269.3 424.5 499.7 357.7 347.0 2015 2016 2017 2018 2019 305.5 450.1 516.5 390.0 366.0 Other operating and administrative costs Dealer commision Billing costs % to total operation costs Profit and Loss extract Interest Income received 17.6 21.1 23.1 26.5 26.1

Banking Facilities 15 110 110 110 110 Other operating and administrative costs contributed P279m in the current year representing a P12m reduction Liquidity ratios compared to prior year and are primarily made up of dealer commissions and billing costs. The reduction in the current year was directly linked to the performance of BTC with dealer commissions from sale of airtime declining Current ratio 2.0 3.5 3.9 3.7 2.9 by 14% to P74m. Other cost reductions were as a result of deliberate cost reduction initiatives to preserve margins in Quick ratio 1.9 3.3 3.6 3.3 2.6 view of the decline in revenues. Solvency ratio 73.1% 100.9% 102.1% (28%) 72.5% Solvency ratio (excluding development grants) 88.9% 143.0% 161.3% (49%) 120.8%

BTC continues to consistently deliver strong cash-flows from operations allowing it to finance its operations and capital from internal cash resources whilst maintaining its dividend pay-outs in line with its dividend policy. Total dividends paid in the current year were P139m (Please refer to the following section on capital structure which illustrates our dividend payment track record over the past 5 years).

BTC continues to spend heavily on Although not material in relation provision of broadband connectivity the modernisation of its network to previous years, BTC reached an to government schools in the Ghanzi and other strategic projects with agreement with the Universal Access district. The total grant receivable was total expenditure under the investing and Service Fund (UASF) for the P8.6m, of which 33.3% (P2.9 million) activities amounting to P410m, net of upgrade of the Corporation’s base was received as at year end as per the P18m interest income received. stations to 3G or better and the grant agreement. 165 177 175 178 179 167 233 232 170 235 166 236 180 205 Statement of Cash Flows of Statement Accounting Policies the NotesFinancials to Analysis Shareholder AGM Notice of Form Proxy Board Approval of Annual the Approval of Board Financial Statements Changes in Equity of Statement Notes to Proxy General Information Report Auditor’s Independent Financial Position of Statement Statement of Profit or Loss and Other Lossand Other or Profit of Statement Income Comprehensive ANNUAL ANNUAL FINANCIAL STATEMENTS 08

164 167 Director son Appointed 27 September 2018) September 27 Appointed 2018) September 27 Appointed Chairper Managing ( (

o Molomo h Priyalal De Silva h Priyalal De e Pitso o Boakgomo-Ntakhwana o Boakgomo-Ntakhwana ew Johnson lean Letshwiti hony Masunga Masunga hony rty Leburu African Banking Limited African Botswana Corporation Limited Botswana Bank Barclays Limited Botswana First Bank National Limited Botswana Bank Stanbic Limited Botswana CharteredStandard Bank Gaborone Bank Ernst & Young 41015 Box P.O. Botswana Gaborone, Pula Botswana Botswana Crescent Khama Megaleng, 50350 Plot 700 Box P.O. Botswana Gaborone, CO2012/12936 Lorat Ant Se Mac Andr Ranjit Choic Thari Phek Bafana BANKERS AUDITOR CURRENCYFUNCTIONALAND PRESENTATION GENERAL INFORMATION GENERAL MARCH 31 ENDED YEAR 2019 THE FOR DIRECTORS LIMITED CORPORATION TELECOMMUNICATIONS OF BOTSWANA INCORPORATION Corporation Limited Botswana Telecommunications was as registered a under company the Companies Act in the Republic of that Act in provides Botswana on The on Transition the section the BTC 1 date, 13 Act is BTC 2012. conversion November (CAP 42:01). Act the Companies of with all requirements comply to be required will now and BTC repealed AND DOMICILE OF INCORPORATION COUNTRY REGISTERED OFFICE NUMBER COMPANY ACTIVITES AND PRINCIPAL OF BUSINESS NATURE The is Company engaged services services in and in the products of telecommunication The Botswana. provision Company’s services. services and directory data telephony, voice and mobile include fixed GING DIRECTOR MANA ANTHONY MASUNGAANTHONY

HAIRPERSON C ORATO BOAKGOMO-NTAKHWANA ORATO L

Against this background, the Members of the Board accept responsibility for the financial statements and the information on and the information the for responsibility financialthe accept statements Members the of Against Board this background, signed on its behalf by: and are June 2019 on 21 approved were which 231 to 176 pages The financial statements have been prepared on a going concern basis, since the Members of the Board have every reason to reason every have basis,on ofconcern since a the the going Board Members been prepared have The financial statements future. the foreseeable for in operation continue in place to resources has adequate the Company that believe The Members of the Board, supported by the Audit and Risk Committee, are satisfied maintained that adequate management internal introduced controls and to ensure of loss and mismanagement that detect dependable and records prevent to exist Company the for of assets the of accountability preparation maintain and of verify to the statements, annual financial in of any breakdown the Nothing has reasonably to indicate Board the been the to assets of the brought attention Company. during the period under review. and systems procedures these controls, of the functioning The Audit and Risk Committee, which consists of three members of the Board and the Managing Director, meets at least four four least at meets Director, Managing the and Board the of members three of consists which Committee, Risk and Audit The concerning matters evaluate to management, senior of members as well as auditors, external and internal the with year a times reporting. auditing and financial controls, internal accounting, The Members of the Board are responsible for the annual financial statements prepared Standards. Financial Reporting accordancein with International BOARD APPROVAL STATEMENTS OF FINANCIAL ANNUAL THE BOARD APPROVAL MARCH ENDED 31 YEAR 2019 THE FOR

166 169 INDEPENDENT AUDITORS’ REPORT AUDITORS’ INDEPENDENT MARCH 31 ENDED YEAR 2019 THE FOR Limited Corporation Telecommunications the Shareholders Botswana of To the Financial Statements the Audit of on Report Opinion have We audited the financialofTelecommunications Corporation Limited statements Botswana (the Company) set out on loss or profit of statement the and 2019, March 31 at as position financial of statement the comprise which 231, to 176 pages ended, then year the for flows cash of statement the and equity in changes of statement the income, comprehensive other and policies. accounting of significant including a summary financial statements, the to and notes Cor- Telecommunications Botswana of position financial the of view fair and true a give statements financial the opinion, our In and its of financial year and for performance then cash the endedflows in accordance 2019, March 31 as at Limited poration (CAP 42:01). Act the Companies of and the requirements Standards Financial Reporting with International Opinion Basis for under those stan- on Auditing (ISAs). Our responsibilities Standards with International our audit in accordance conducted We dards are further described in the Responsibilities Auditor’s for the Audit of the Financial section Statements of our report. We are independent of the Company in accordance with the Ethics International Standards Board for Code Accountants’ of of audit the performing to applicable requirements independence other and Code) (IESBA Accountants Professional for Ethics with the responsibilities in accordance ethical other fulfilled our have We Limited. Corporation Telecommunications Botswana IESBA Code, and in with accordance applicable other ethical to requirements performing the audit of Telecommu- Botswana a to provide the that and is obtained audit appropriate believe sufficient evidence we have We Limited. Corporation nications our opinion. for basis Matters Audit Key financial the of audit our in significance most of were judgement, professional our in that, matters those are matters audit Key of the statements period. current These were addressed in matters of our the audit context of the financial as statements a below, matter each For matters. these on opinion separate a provide not do we and thereon, opinion our forming in and whole, context. in that is provided the matter our audit addressed how of our description section of the financial statements for the audit responsibilities responsibilities described in the Auditor’s fulfilled the have We of our our report, including audit in included Accordingly, to these relation the matters. performance of designed procedures to respond to our of assessment the of the The resultsfinancialmisstatement ofrisks of material statements. our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on statements. financial the accompanying Following approval by Bank of Botswana, BTC rolled out its electronic payment services platform (SMEGA) which is a mobile (SMEGA) services platform payment out its electronic rolled BTC Botswana, Bank of by approval Following 2019. of May 10th on the offering financial services Events after Eventsreporting after period The directors have approved a final5.73of dividendof3.53 thebe dividend thebe perapproved an follows This per share. interim share have The directors year financial the of respect in dividend annual total the taking results interim the in for paid and declared Company the which business of close at Company the of books the in registered shareholders all to payable is dividend The share. per thebe 9.26 to under applicable withholding taxes of The net dividend will be paid will be 26 July 2019. date The ex-dividend on 30 July 2019. 9 August 2019. on or before Act Tax Income the Botswana’s Messrs. Thari Pheko and Bafana Molomo were appointed as new directors on 27 September 2018. on 27 September directors as new appointed Molomo were and Bafana Messrs. Thari Pheko Dividends Declaration Directors page. information general outlined on the are directors the company of The details Stated Capital Stated under review. capital during the year the stated no changes to were There 12. note capital is as per Stated Other revenue lines such as fixed voice remained relatively flat whilst fixed broadband declined marginally. The telecommunications telecommunications The marginally. declined broadband fixed whilst flat relatively remained voice fixed as such lines revenue Other with line In consumers. of power spending reduced the to due period the for revenues suppressed registered general in sector global trends, consumers continued to switch to newer and cheaper products alternative with lower margins i.e. shift from on margins. pressure services, thus increasing centric data to voice This resulted in a 5% decline The (FY18:P368m). in overall decline in earnings revenue is mainly attributable to before trading unfavorable conditions interest, which saw taxation, restrained depreciation and consumer spend, decline resulting in on a the 12% mobile business and amortization of new products the despite services introduction in (EBITDA) to P349m uptake. promote to initiatives and other the market The Company recorded a profit after tax of P162m for the financial year ended 31 March 2019, a decline of 25% compared to compared of 25% a decline 2019, 31 March year ended for the financial of P162m tax after a profit recorded The Company customers with contract from revenue the in decline 8% an to attributable mainly is This year. previous the in recorded P217m on investment in increase an to due (FY18:P156m) P199m to depreciation in increase 28% a and (FY18:P1,567m), P1,448m to to P693m (FY18:P723m). by 4% and declined control under were costs Operating networks. mobile and fixed Financial ResultsFinancial Directors of Board the by issue for authorized were 2019 March 31 ended year the for Company the of statements financial The June 2019. on 21 Basis of Preparation and Accounting and Preparation PoliciesBasis of statements financial The The basis. financial concern statements have been going prepared the on on a and historical assets, cost certain basis, of except as modifiedrevaluation by the the and value measurement of fair certain at instruments financial have been prepared in compliance with the Financial International Reporting Standards (“IFRS”) issued by the International issued Financial Interpretations by the Reporting Standard International (“IASB”), Board interpretations Standards Accounting (CAP 42:01). Act the Companies by required and in the manner Committee Botswana Telecommunications Corporation Limited (“BTC”) is a converged telecommunications operator offering fixed (voice (voice fixed offering operator telecommunications is a converged (“BTC”) Limited Corporation Telecommunications Botswana licensed service providers. and other enterprises consumers, services to and broadband and data) mobile (voice and data), Our BusinessOur DIRECTORS REPORT MARCH ENDED 31 YEAR 2019 THE FOR

168 171 ed whether the IT systems and environments environments and systems IT the whether ed a sample basis, we inspected key reconciliations e tested the transfer of data from the billing system system billing the from data of transfer the tested e e obtained an understanding of the different pro- al- and calculation the over controls key the tested e e assessed the judgement exercised by the Com- e tested the billing system parameters to assess e considered whether revenue was appropriately or a sample of transaction records in the systems, we we compared the amounts recorded in the systems underlying in- customer contracts, to their respective and cash receipts; voices assess used to management and by support revenue recognition; W W to the general ledger by comparing, on a sample basis, the billing reports to the journals captured in the ledger. general W revenue different the in operating controls and cesses processes including IT general controls and application controls; Consider support the operating effectiveness of controls; application W to location separable of elements revenue in bundled with customers; under contracts transactions W pany on allocation of separable elements in bundled transactions under contracts with customers, with reference to standalone selling prices and other ob- data; market servable F On W that network activity was in recorded the pe- correct riod. deferred by inspecting the unused airtime report ex- from the to assess tracted billing the system amount should be deferred; that revenue of

• • Our audit procedures included, amongst others the included, amongst Our audit procedures : following • • • • • • • How the matter addressedwas matter How the in the audit ounting policies”, and policies”, ounting te 1 “Revenue from contracts with customers” contracts from 1 “Revenue te The “acc No

Revenue recognition Revenue The accuracy of amounts recorded as revenue is an inherent industry risk due to the complexity of the billing systems, and the accounting for various products and arrangements. element plans, including multiple tariff The audit of revenue at BTC is further complicated by the various streams revenue operating on sys- different tems, resulting in the need for manual journal entries to trade revenue, deferred be revenue, of in posted respect receivables. and other primarily mobile of subscrib- the migration Furthermore, commenced which system billing converged new a to ers in 2018 was expedited in 2019 and was substantially end. year by concluded account- recognition revenue new the of application The cus- with contracts from revenue – 15 (IFRS standard ing judgements of number a involves and complex is tomers) and estimates in determining the measure- appropriate ment and timing of recognition of elements different of sales packages. within bundled revenue The new revenue standard, IFRS 15, which prescribes the was of revenue on accounting treatment adopted 1 April On 2018. adoption, the Company has applied the modified retrospective transition method which recog- of applying the new nises revenue effect the cumulative standard upon transition directly in equity on 2018. The 1 application of IFRS introduced significant 15 April judgements and estimates in the recognition and mea- revenue. of surement disclosed in are revenue to with respect Disclosures • • Key Audit Matter Audit Key INDEPENDENT AUDITORS’ REPORT AUDITORS’ INDEPENDENT MARCH 31 ENDED YEAR 2019 THE FOR

e involved EY’s internal valuation specialists to as- e compared the discount rate and WACC used by e considered the and revenue margin growth rates percentage margin Company’s the compared also e the understand to analysis sensitivity a performed e grouping of data for management’s e in- evaluated e also considered the adequacy of the disclosures e evaluated the methods and models used to de- sist us in the of assessing model the appropriateness used and to assist in the evaluating assumptions ap- model; plied within that sources where management to independent external possible; used by management by comparing the rates with the and trends in historic margins within revenue the Company and taking into account our own under- in the industry; standing about developments W histor- and to in the region companies similar sized to in the industry; ical trends W of effect changes in variables key on the outcome of the model; W model; the impairment put into W deter- applied to and judgements the assumptions of with IFRS; in accordance were they mine whether W termine the amount by were recoverable appropriate comparing with the of requirements IAS 36 - Impair- Assets; of ment W W W

• • • • • • Our audit procedures included, amongst others the others included, amongst Our audit procedures following: • • How the matter addressedwas matter How the in the audit ounting policies”, and policies”, ounting te 9 “Asset Impairment” 9 “Asset te The “acc No

• Consideration of impairment of network assets of impairment of network Consideration Property, plant and equipment and intangible represent a assets significantportion of Company’sasset the base, assets being as total at 68% 31 of the Company’s 2019. March We focused on the impairment assessment for BTC as the assessment is sensitive to changes in assumptions (in particular the long-term growth rate, the discount rate and the assumptions underlying future operating cash flows) as well regulatorydirectives as events and the Company. to and internal external both Management computed the amount, using recoverable cash flow modela withdiscounted around assumptions revenue for expectations specifically forecasts, flow cash assumptions, as well as developments margin and trends including the discount rate and Cost Average Weighted Capital (WACC). of assessment impairment asset the to respect with Disclosures disclosed in are • Key Audit Matter Audit Key INDEPENDENT AUDITORS’ REPORT AUDITORS’ INDEPENDENT MARCH ENDED 31 YEAR 2019 THE FOR

170 173 e obtained an understanding of management’s pro- management’s of understanding an obtained e impairment and policies accounting the evaluated e assess- in us assist to experts internal our involved e e the tested mathematical accuracy of the models assump- significant and parameters the evaluated e e assessed the reasonableness of forward-looking allow- the regarding disclosures the assessed also e cesses over credit origination, credit monitoring and remediation; credit these applied the methodologies comparing to by re- 9: Financial Instruments; IFRS of quirements ing the ECL models developed by management and the applied assumptions in the calculation evaluating impairment; for allowances of management; used by tions applied in the calculation models through dis- of grouping management’s evaluating cussion and by input in the models; for data information incorporated into the credit loss calculations considering the multiple economic scenarios each scenario; applied to and the weighting selected ance of trade for and impairment in other receivables the financial statementsto determine whether they with IFRS. in accordance were W W W W W W W

• • • • • • Our audit procedures Our included, audit amongst procedures the others, following: • How the matter addressedwas matter How the in the audit ounting policies” and ounting te 11 “Trade and other receivables” and other “Trade 11 te The “acc No

• Impairment of trade and other receivables Impairment of trade At 31 March 2019 the company recognised net trade and other receivables of million, P185 net of loss allow- million. P149 ances of The company adopted IFRS 9 – Financial Instruments to measure the allowance for impairment of trade and for other receivables the firstreporting time in the 2019 period. The introduction of the impairment IFRS requirements 9 require impairment allowances of to be considered on an expected credit loss basis as opposed to the incurred credit basis previously by adopted the Company. This change in policy accounting the required Company to develop an impairment model to calculate Expected each at ECLs those in changes and (ECLs) Losses Credit initial since risk credit in changes reflect to date reporting receivables. and other the trade of recognition The Company applies the simplified approach andrec- ognises ECLs lifetime for trade and other bal- receivable ances. In determining the ECLs, key judgements were applied by the company in selecting and applying an appropriate model and in determining the credit losses which are expected to be incurred upon final write-off of the on based the payment are loss rates Expected amounts. profile of trade and other receivables over the past 24 as well 31 as March months before 2019 corresponding losses credit during then the are ad- period. These rates justed to thereflect current and future macroeconomic factors affecting the customers’ ability to pay the outstanding amount. The allowance for ECLs on trade and other receivables to the current most significance be of to considered was year audit due to the first-time adoptionof the IFRS 9 requirements through application of the ECL modelling technique. Disclosures with respect to trade and other receivables disclosed in are • Key Audit Matter Audit Key INDEPENDENT AUDITORS’ REPORT AUDITORS’ INDEPENDENT MARCH 31 ENDED YEAR 2019 THE FOR e assessed the application of the agent versus prin- versus agent the of application the assessed e e performed an evaluation of the competence, ca- e also considered the adequacy of the disclosures e obtained the approved prices and recalculated the recalculated and prices approved the obtained e e tested, on a sample basis, the identified perfor- as a contract recognised the amount e recalculated e tested the manual revenue adjustments arising cipal cipal accounting treatment for different revenue transactions, post-paid we examined legal documents and business rules between the Company and business partners; its pabilities and objectivity of management’s experts by considering their professional qualifications, ex- and perience, use methodology, of industry accepted lines; reporting on the assumptions and judgements applied to de- with IFRS. in accordance were they whether termine standalone selling prices per performance obligation. We compared our recalculated prices to standalone allocated selling ment’s prices per manage- perfor- mance obligation; mance obligations used in the allocation of revenue evidence; on supporting contractual based asset by management and the contract cost asset pertaining to the indirect channel post-paid revenue stream; from the adoption of IFRS by comparing 15 the jour- the supporting documentation; nals to W W W W W W W

• • • • • • Regarding Regarding the impact of the initial adoption of IFRS 15, following: the included, amongst others, our procedures • How the matter addressedwas matter How the in the audit Key Audit Matter Audit Key INDEPENDENT AUDITORS’ REPORT AUDITORS’ INDEPENDENT MARCH ENDED 31 YEAR 2019 THE FOR

172 175

or on the of the appropriateness use directors’ of the going concern basis of accounting and based on the audit

t 22, Khama Crescent, Gaborone t 22, Khama Crescent, aluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether whether and disclosures, the including statements, financial the of content and structure presentation, overall the aluate Plo Ernst Ernst & Young Member: Thomas Chitambo (2003022) Practicing Partner Certified Audit 5 July 2019 Conclude evidence obtained, whether a or to uncertainty events material conditions exists related that may cast significant doubt required are we exists, uncertainty material a that conclude we If concern. going a as continue to ability Company’s the on in- are if such disclosures or, in the financial statements disclosures the related to report in our auditor’s attention draw to auditor’s our of date the to up obtained evidence audit the on based are conclusions Our opinion. our modify to adequate, concern. as a going continue to cease to cause the Company may or conditions events future However, report. Ev fair presentation. achieves in a manner that events and transactions the underlying represent the financial statements rom the matters communicated with rom communicated the the we that those of were determine matters most directors, matters significance in the audit

INDEPENDENT AUDITORS’ REPORT AUDITORS’ INDEPENDENT MARCH 31 ENDED YEAR 2019 THE FOR of of the financialof statements the circumstances, current period rare and extremely arein the therefore keywhen, or audit We matters. describematter thesethe about in matters disclosure our public precludes regulation or law unless report auditor’s doing so would of consequences because in the our adverse report be communicated should not a matter that determine we communication. such of benefits the public interest outweigh to be expected reasonably • significant and audit the of timing and scope planned the matters, other among regarding, directors the with communicate We our audit. during we identify that control internal in deficiencies significant any audit findings, including indepen- regarding ethical requirements also with complied that with we the We have provide a relevant directors statement dence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on safeguards. our related applicable, independence, and where F • tify and assess of the the risks misstatement whetherof financial duematerial to statements, fraud design or error, tain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in appropriate are that procedures audit design to order in audit the to relevant control internal of understanding an tain aluate aluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. control. internal Company’s the of effectiveness the on opinion an expressing of purpose the for not but circumstances, the Ev the directors. made by disclosures Iden and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andto appropriate a provide basis for our opinion. The risk resulting of a from not fraud misstatement detecting material is higher than for or the override omissions, misrepresentations, intentional forgery, collusion, involve may as fraud error, from one resulting control. internal of Ob

• • • As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism through- scepticism professional maintain and judgement professional exercise we ISAs, with accordance in audit an of part As also: out the audit. We Auditor’s Responsibilities theAuditor’s Statements Financial of Audit the for Our are objectives to obtain reasonable assurance about whether the asfinancial a statements whole are free from material assurance includes our opinion. Reasonable that report issue an auditor’s and to or error, fraud due to whether misstatement, is a high of assurance, level but is not that a an in guarantee audit with accordance conducted a ISAs ma- will detect always when terial it can misstatement exists. arise Misstatements from fraud or error and if, are individually material considered or of on these basis the of users the decisions taken economic influence to be expected reasonably could they in the aggregate, financial statements. Those charged with governance are responsible for overseeing the Company’s financial reporting processes. financial the Company’s overseeing for responsible are with governance Those charged In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue ascontinue ato ability going forresponsible assessing the are Company’s the directors the In financialpreparing statements, the unless accounting of basis concern going the using and concern going to related matters applicable, as disclosing, concern, do so. but to alternative no realistic or have cease operations, or to the Company liquidate to either intend directors Responsibilities the Directors of the for Statements Financial with in Interna- accordance the of financial statements and fair presentation the for responsible preparation are The directors tional Financial Reporting Standards and the of requirements the Companies Act (CAP 42:01), and for such internal control misstate- material from free are that financial statements of enable the preparation is necessary to determine as the directors or error. fraud due to whether ment, When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate communicate to required are we therein, misstatement material a is there that conclude we if report, annual the read we When governance. with those charged to the matter In with connection our audit of the financialour responsibility statements, istoread theother and, information in doing so, with the or inconsistent is consider financial ourwhether the materially statements knowledgeother information obtained in is there that conclude we performed, have we work the on based If, misstated. materially be to appears otherwise or audit, the regard. this in report to nothing have We fact. that report to required are we information, other this of misstatement material a Our opinion on the financial statements does not cover the other information and we do not express anexpress weand auditdo opinion not orother the any information Our cover opinion does on not the financial statements thereon. conclusion assurance of form Other Information Other are The responsible for directors the The comprises other Report the information. other as information by Directors’ required the Companies (CAP Act 42:01), which we obtained prior of the this to date report and the annual report, which is expected to be made to The us does available that date. other after not information include the andfinancial our statements auditor’s thereon. report INDEPENDENT AUDITORS’ REPORT AUDITORS’ INDEPENDENT MARCH ENDED 31 YEAR 2019 THE FOR

174 177 - - - 74 ch 06 072 452 626 2018 1 634 4 431 4 273 3 2 663 8 892 8 398 0 236 9 965 8 095 23 715 23 0 056 25 381 P’000 3 5 13 899 Mar 79 7 29 98 401 92 903 92 4 1 39 1 47 256 3 8 450 0 1 2 36 1 41 1 53 2 06 2 432 868 2 432 868

- 3 3 ch ch 951 594 030 2 013 2 013 2019 3 283 283 3 7 453 7 502 7 502 9 657 9 657 8 892 9 280 1 53 715 P’000 61 392 392 61 Mar 95 319 2 36 2 2 21 940 22 053 22 1 58 368 54 90 979 90 979 05 456 05 456 20 399 193 3 47 80 3 340 68 1 772 196 196 1 772 40 1 2 1 5 2 575 479 2 575 479 2 080 967

7 3 2 5 5 8 4 4 4 0 11 11 .2 1 1 1 1 es 1 1 16 16 1 7.3 7.2 7.2 7.2 7.2 6 1 1 1 Not

AND LIABILITIES ract liabilities ract ome tax receivable receivable tax ome ome tax payable tax ome SETS ash and cash equivalentsand cash ash STATEMENT OF FINANCIAL POSITION OF FINANCIAL STATEMENT 2019 March 31 at As Accumulated profitsAccumulated EQUITY C Revaluation reserveRevaluation Capital Capital and reserves CapitalStated Inc Total assetsTotal

Inc provisions employee related portion of Current Current portion of development grants development portion of Current AS Intangible assets Non current assetsNon current and equipment plant Property, Deferred tax assets tax Deferred

Employee related provisions provisions Employee related Non current liabilitiesNon current grantsDevelopment Trade and other receivables and other Trade Current assets Current Inventories assetsContract Current liabilitiesCurrent payables and other Trade Cont

Total equity and liabilitiesTotal ) ) ) ) )

31 ch 363 0.70 1 763 7 351 2018 3 915 21 1 2 6 908 69 114 69 5 0 908 P’000 Mar 66 21 41 096 273 313 46 46 564 3 26 ( 439 439 728 14 600) 14 ( 2 ( 966 013 ( ( 600 895 ( 1 56

) ) ) ) )

- - - ch ch 60 60 5.43 2019 1 8 224 8 224 7 606 9 903 9 903 P’000 96 712 96 712 Mar 1 37 332 37 2 1 871 871 34 652 34 ( ( 576 353 576 162 0 162 0 422 893 422 262 443 262 ( ( ( 1 44

1 3 5 .1 .1 4

.3 .3 .2 .2 .4 es 2 6 2 2 2 Not

om contracts customers with trative expensestrative erest income erest ofit for the year year the for ofit ofit before ofit tax her expenses her oss profit oss profit COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH ENDED 31 YEAR 2019 THE FOR STATEMENT OF PROFIT OR LOSS AND OTHER OTHER AND LOSS OR OF PROFIT STATEMENT Other comprehensive income for the year, net of tax tax of net year, the for income comprehensive Other Income tax effect effect tax Income Adminis Other comprehensive income not to be reclassified to not comprehensiveto income Other subsequent /loss in periods profit Gains on property revaluation Sellingand distribution costs expense tax Income Ot Pr Pr Gr Int Other income income Other (Thebe): share per earnings diluted and Basic Total comprehensive income for the year

Cost of services Cost of and soldgoods Revenue fr

176 179 ) ) ) ) ) ) ) ) )

- - 74 ch 629 2018 2 061 3 256 9 061 1 628 16 16 914 15 15 100 P’000 19 83 164 83 22 22 343 16 549 ( 72 89572 Mar 2 64 64 847 ( ( 122 122 416 ( 21 278 278 103 144 144 539 3 5 ( 4 277 277 450 ( ( 450 0 ( (

) ) ) ) ) ) ) )

5 ch ch 74 74 33 592 2019 6 196 3 2 657 26 111 26 2 087 2 865 2 865 18 133 133 18 6 058 6 P’000 ( Mar ( 23 23 348 4 7 142 142 531 05 456 64 460 460 64 138 138 303 ( 35 321 321 846 106 106 478 ( 3 450 0 ( 2 ( 409 409 856 ( (

8 4 1 7.1 7.3 7.3 7.2 7.2 1 1 1 es Not

OWS FROM FINANCING ACTIVITIES:OWS FROM FINANCING OWS FROM OPERATING ACTIVITIES: OWS OPERATING FROM chase of intangible assets intangible chase of rease/(decrease) in trade and other payables and contract liabilities payablesand contract and other trade rease/(decrease) in easeand cash equivalents in cash foreign exchange difference on cash and cash equivalentscash on difference exchange foreign Income tax paid tax Income cash from operating cash from activities cash from financing cash from activities Pur Purchase of property, plant and equipment and equipment plant property, Purchase of Inc Working capital adjustments:Working assets receivables,contract and Decrease/(increase) and in trade other prepayments erest income received income received erest oceeds from disposal of property, plant and equipment and equipment plant property, disposal from oceeds of ash and cash equivalents at beginning of the year year the beginning equivalentsand cash ash at of operations ash from generated STATEMENT OF CASH FLOWS OF CASH STATEMENT 2019 March 31 at As Cash and cash equivalents at end of the year year the end of Cash equivalentscash and at Pr Int Net C Net CASH FLOWS USED IN INVESTING ACTIVITIES: USED IN INVESTING CASH FLOWS expand operations: to Investment Decr Ordinary dividend paid to shareholders to dividend paid Ordinary Net Net CASH FL Grants received C CASH FL Operating profit before working before capital changes Operating profit

Net cash used cash in investingNet activities

(Increase)/decrease in inventories (Increase)/decrease ) ) ) )

- - 22 otal 1 763 1 279 7 351 9 159 9 3 562 T ( 2 060 2 060 69 114 69 5 ( P’000 21 62 663 138 915 138 2 155 610 155 ( 16 16 ( 1 94 2 057 8 2 0 2 080 967

) ) ) )

- ofits 1 279 7 351 7 351 9 373 9 373 3 562 8 874 8 874 4 427 427 4 ( 1 2 060 2 060 ( 1 P’000 21 21 Pr 138 915 138 147 547 547 147 155 610 155 ( 16 16 ( 1 1 223 715 1 21 1 261 392 cumulated Ac

) )

------1 763 1 763 1 763 serve 19 373 19 0 056 0 056 0 056 5 5 14 427 14 P’000 22 720 720 22 ( ( 3 340 683 36 Re 36 aluation aluation Rev

------al ated ated P’000 78 892 892 78 78 892 892 78 St Capit 4 4 478 892 478 892

1 3 3 2 11 1 1 1 es Not

e at 31 March 2019 e at e at 31 March 2018 e at e at 31 March 2018 (restated) e at e at 1 April 2017 April 1 e at eciation transfer for land and buildings land for transfer eciation eciation transfer for land and buildings land for transfer eciation 9 adoption adjustment adjustment adoption 9 IFRS 15 adoption adjustment adjustment adoption 15 IFRS Balanc Balanc Depr Depr IFRS Balanc Ordinary dividend declared dividend declared Ordinary Comprehensive Income /Other Total dividend declared Ordinary Profit for the year year the for Profit Other comprehensive income income comprehensive Other Comprehensive Income Total

Profit for the year year the for Profit Balanc As at 31 March 2019 March 31 at As STATEMENT OF CHANGES IN EQUITY STATEMENT

178 181 18 567 567 562 005)

20 P’000 4 3 (1 tive additional Loss additional Loss tive Cumula wance recognised on 1 April recognised wance allo

1 te 1 No Adoption of IFRS 9: Financial instruments IFRS (...continued) of Adoption

rade and other receivables and other rade Impact of deferred tax deferred of Impact earnings in retained Decrease result of adopting IFRS 9 of financial assets as a remeasurements and of the reclassifications Reconciliation FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR (...continued) (...continued) STATEMENTS OF FINANCIAL PRESENTATION 2) IFRS 9 Financial Instruments financial assets of and measurement Classification Balances IFRS 9 provisions existing of impairment to subject April 2018 on 01 T liabilities in terms of the requirements of IFRS 9) is 01 April 2018. Accordingly, the company has applied the requirements of IFRS of requirements the The applied has date of company the initial application Accordingly, (i.e. 2018. the April 01 date is 9) on IFRS of which the requirements the company of has terms that in instruments liabilities assessed to its requirements the existing applied not financialhas and assets and2018 April financial 01 at as derecognised been not have that instruments to 9 been derecognised not have that instruments to in relation Comparatives April 2018. 01 as at been derecognised already have as at 01 April have 2018 not been restated. Instead, cumulative adjustments to retained earnings have been recognised in April 2018. 01 as at earnings retained All recognised financial assets that are within the scopeof IFRS 9 arerequired to be subsequently cost or measured fair atvalue on the business basis amortised model of the for entity’s managing the financial assets and cash the contractual flow summarised below: are requirements The measurement the financial assets. of characteristics Financial instruments that are held within a business model whose objective is to that have collect contractual cash the flows thatcontractual cash are solelyflows,paymentsof and principal amount outstanding, are subsequently measuredat on its receivables. interest charge does not The company amortised cost. of financial assets Impairment IFRS 9 requires the Company credit losses to expected record on all of its trade receivables, other receivables and cash and cash equivalents , either on or a lifetime basis. 12-month The Company has historically been raising provisions for bad debt IAS 39. by losses as prescribed on incurred based Specifically, IFRS 9requires the Companyto recognise a loss allowancefor expected credit losses on financial instruments subsequently measured at amortised cost or at fair value through other comprehensive income, lease receivables, contract assets and loan commitments and financial guaranteetocontracts which the impairmentrequirementsof IFRS 9 apply. In IFRS particular, 9 requires the company to measure the loss allowance for a financial instrumentat an amount equalto the recognition, since initial significantly has increased financial instrument risk on that losses if the credit credit expected lifetime or if the financial instrument is a purchased financial or credit-impaired asset. originated On the other hand, if thecredit risk on a financial instrument has not increased significantly since for initial(except recognition a purchased orcredit- originated impaired financial asset), thecompany is torequired measure the loss allowancefor that financial at instrument an amount losses. credit expected months 12 equal to reasonable using impairment financial assets existing and assessed the company’s reviewed the directors April 2018, 01 As at IFRS 9 to of with the requirements in accordance or effort without undue cost available was that and supportable information risk credit the to that compared and recognised, initially were they date the at items respective the of risk credit the determine is as follows; assessment the of result April 2018.The and 01 April 2017 01 as at ACCOUNTING POLICIES ACCOUNTING tion and measurement of financial assets and financial assets of tion and measurement al hedge accounting. al hedge accounting. airment for financial assets and; financial assets for airment classifica financial liabilities; imp gener

b) a) c) The new standard includesas the new credit loss expected (ECL) model for the impairment theof financial assets thatreplaces the incurred loss model final as sections: three classification into which can be categorised requirements brings new in IAS 39. The standard prescribed and measurement model for financial assets and liabilities aswell 2) IFRS 9 Financial Instruments Adoption of IFRS 9: Financial instruments Foreign Currency Transactions and Advance Consideration Advance and Transactions Currency 22 Foreign Interpretation 1) IFRIC income or expense asset, related the of recognition initial on use to rate exchange spot the determining in that clarifies interpretation The (or part of it) on the of a derecognition non-monetary asset or non-monetary the liability of theto advance consideration, date relating the advance liability arising from or non-monetary asset the non-monetary initially on recognises which an entity is the date transaction in the for or each of then advance, transactions receipts a If the multiple are must date there entity payments determine consideration. payment or receipt advance of to advance relating consideration. liability The non-monetary or amendments asset are non-monetary a intended of to derecognition eliminate the diversity on it) in of part practice, (or income when or expense recognising theasset, related or received consideration There paid is in Thefinancialon no currency. foreign statements. the impact of this Company’s interpretation 1 January 2018. annual periods beginning on or after for is effective interpretation BTC has adopted the following new accounting pronouncements as issued by the IASB, which were effective for the company from the for company as issued the effective by IASB, pronouncements which were accounting new the following has adopted BTC April 2018: 01 The BTC Foundation is not consolidated as it is immaterial. consolidated is not Foundation The BTC The financial statements have been prepared incompliance with International FinancialReporting Standards (‘’IFRS’’) issuedby the International Accounting Standards Board (‘’IASB’), interpretations issued by (CAP 42:01). Botswana of Act the Companies the by and in the manner required Committee International Interpretations Financial Reporting Standard Statement of compliance compliance of Statement The financial statements have been prepared on a historicalcost basis, except as modified bythe measurement of certain financialat instruments fair value andof the revaluation certain assets as in indicated the accounting policies and below, on basis. the going concern BASIS OF PREPARATION BASIS OF PREPARATION Botswana Telecommunications Botswana Corporation Telecommunications Limited fixed (“BTC” or include “the Company”) products is and incorporated and services domiciled BTC in Botswana. Botswana. Gaborone, Megaleng, Khama at Crescent, is The situated headquarters services, and directory national data and mobile internet, services, international voice and virtual telephony, networks private equipment. premises customer CORPORATE INFORMATION INFORMATION CORPORATE information and values are rounded to the nearest thousand (P’000) except when otherwise indicated. The Financial Statements Statements Financial The The indicated. otherwise annual when financial except statements are (P’000) presentedthousand nearest Botswanathe in to rounded Pula are which values Company’sand functionalthe is currency.information All financial with accordance in Board the of Members the by issue for authorised were 2019 March 31 ended year the for Company the of June 2019. on 21 a resolution STATEMENTS OF FINANCIAL PRESENTATION ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR

180 183 Impact There is a change to the timing of the the timing the to of change There is a the to change and a revenue recognition revenue the of classification For transactions with a significant significant transactions a with For on payment where financing component, period greater a handsets over is deferred financingthe element months, 12 than recognition revenue impactstiming the of and classification. In applying the transition principlesIn applying transition the to revenue in reduction a is there 15. IFRS portion as a of services, the network from as a transactionthe price for is accounted receivable. classification the in change alsoa is There financial the of financingthe as element income. as other recognised was asset, (...continued) (...continued) timing of revenue timing of Nature of change in accounting policy / classification and accounting / classification in policy change of Nature The network services twoseparate are The network and handset transaction price is total The performance obligations. services device the network and the handset to allocated sellingstand-alone (SSP). price relative basedtheir on is the handset transaction to The total price allocated has handset the of since control recognised upfront transaction total and the price subscriber passed the to services is recognised based network the on to allocated period. contractual the usage over a constitute certain CPEs do not paid, fixed post For separate performanceand fees charged obligations the contract term of the are recognised them over for consistent with service.the When concluded that arrangements include a significant significant arrangements include a When that concluded transaction price the portion of a financing component, the financing to is allocated and recognised as interest period. contractual the income over The handset voucher value is accounted for as a financial a as for accounted is value voucher The handset at is calculated receivable the of value The fair receivable. The transaction price allocated the contract. inception of performance servicesother the network and any to total the of residual the is contract the in obligations the value of the fair deducting after consideration The transaction to network allocated price receivable. contractual the services over as revenue is recognised period based on usage. pay itsto obligation for financial liability recognisesa BTC customer the when handset the for supplier partythird a financial the of The extinguishment voucher. the redeems subscriber the when of earlier the occursliability at handset the when or voucher handset the redeems is and BTC expires, voucher handset the If expires. voucher the the distributor, to payment any to make required not or is recognised in profit liability financial the release of income’. lossas ‘other product / service product Revenue Stream Revenue Stream / Sale of handset device device handset Sale of network bundled with services Significant financing Significant where component, on handsetspayment is period a over deferred 12 months than greater Sale of the handset handset the Sale of vouchers with bundled the servicesnetwork FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR (...continued) STATEMENTS OF FINANCIAL PRESENTATION 3) IFRS Contracts15 Revenue from Customers with Adoption of IFRS 15: Revenue from Contracts with Customers Contracts from Revenue Adoption of IFRS 15: ACCOUNTING POLICIES ACCOUNTING 074 074 395 469 864 938

t as at 9 11 78 2 1 450 38 839 April 2018** 1 amoun IFRS 9 carrying

) ) )

- - 567 567 567

(4 (4 (4 hanges c e-measurement R

074 074 431 431 036 395 505

t as at 16 78 2 1 450 394 844 1 March 2018 1 March amoun 3 IAS 39 carrying

e 1 1 7.3 7.3 1 Not

Trade and other receivables receivables and other Trade On adoption of IFRS BTC 15, followed a modifiedretrospective approach applying an adjustmentto equity on adoption only the that to were contracts not at completed the date of of date initial application (i.e. 01 and April applying 2018) certain as follows: are IFRS 15 to the transition from the changes resulting of The nature expedients. practical For For bundled packages, the company accounts for individual products and services separately product or if service is they identifiableseparately from are other items distinct in the (i.e. bundledpackage if and if a a customer can benefitfrom it. The consideration is allocated between products and separate services in a bundle based on their standalone selling prices. The based on standalone the sells selling list mobile prices determined prices which and devices are at the network company services separately. Revenue is measured based Revenue on the specifiedconsideration in with on a acontract collected amounts excludes customer and a customer. or service to a product over control when it transfers revenue recognises The company parties. third behalf of IFRS 15 establishes an at a recognised is revenue comprehensive framework 15, IFRS Under for determining interpretations. whether, related and how Contracts Construction much 11 IAS and Revenue, when customer. 18 IAS a replaced to revenue services is or goods recognised. transferring for It entitled be to expects entity an which to consideration the reflects that amount 3) IFRS Contracts15 Revenue from Customers with with Customers Contracts from Revenue Adoption of IFRS 15: IFRS is 15 based on the principle that is revenue recognised when control of a good reassess to or entities service requires and is contracts transferred to all to a applied be to customer. model five-step based, principles single, a provides standard The a good of or services and a customer control obtains when a customer is recognised Revenue with their customers. contracts the good or service. from the benefits and obtain the use of direct when it has the ability to control obtains

Previous P’000 Balance prepayments excluding receivables and other Trade Prepayments Cash and cash equivalents (...continued) instruments (...continued) Adoption of IFRS 9: Financial 2) IFRS 9 Financial Instruments The following table presents a summary of the financial assets asat 01 categories. April IFRS 9 measurement their new The 2018. and into categories table their IAS 39 measurement from reconcilesfinancial assets theof movement (...continued) (...continued) STATEMENTS OF FINANCIAL PRESENTATION ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR Classification and measurement of financial liabilities Classification and measurement liabilities financial company’s of the and measurement on the classification IFRS 9 has had no impact of The application The adoption of IFRS 9 has fundamentally changed accounting the for impairment Company’s losses for financial assetsby approach. loss (ECL) credit looking expected with a forward loss approach incurred IAS 39’s replacing **IFRS 9 was adopted without financialrestating comparative In information. accordance withrestated the the in transitionalof provisions reflected not is model loss credit expected the of implementation the from arising adjustment the standard, the statement of financial position asat 1 April and 2017 31 March but 2018, isrecognised as an 1 April 2018. as at earnings opening balance adjustmentto the retained

182 185 Impact ecognised upfront, but rather over the the over rather but ecognised upfront, customer’s life, as the customer receives customer the as life, customer’s the pay to having not of benefit the contract future of as part installation fee renewals. material of recognition transition, On by is matched revenue) right(deferred corresponding a decrease in retained earnings. In applying the transition principles of principlesIn applying transition the of timing in the change a was there 15, IFRS instal-the as recognition revenue of is no longer fee and connection lation r Upon application of the transition transition the of Upon application change a is there 15 IFRS principles of the in revenue of classification the in disclosedas information additional contracts from with revenue the of part customers note. In applying the transition principlesIn applying transition the to is no difference there 15, IFRS of revenue timing of or amount the is no balance there and recognition change a is however There impact. sheet as in the classification installation and be to need that revenue connection disclosed separately. installation and purchases, outright For separate Performance a is connection revenue related and therefore Obligation the when is recognised upfront this to services is performed. a as impact sheet is no balance There transition. the of result - timing of revenue timing of tead, BTC grants the customer an option to purchase to an option grants customer BTC the tead, Nature of change in accounting policy / classification and accounting / classification in policy change of Nature services at a discounted rate by not incurring this fee as incurring fee this not by discounted rate a servicesat contract. the of part of as part recognised but Revenue is recognised upfront basis straight-line access the performancea on obligation the for life customer average The life. customer the over sub-classesvaried are: Years 2 residential: - Broadband Years - Leased line: 2 Years 3 corporate: - Broadband - Fixed line customers:Years 5 Access to an internet line and data usage represent usage represent and data line Accessan internet to two performance within contained distinct obligations transaction price total The customer. a with contract a should to be allocated the contract under receivable performance basedaccess on obligations and data an unlimited to is entitled customer the As SSPs. their shall be and revenue is no rollover there data, of amount accessrecognised as the network services and (usage) are the customer. to provided The fee charged for installation and connection of of installationand connection for charged The fee the by has been purchased outright that equipment PABX installationthe of of result a as or customer, separate performance a as is identified equipment, obligations. has will be disclosed that revenue as revenue The related installationsand connections arisen performance from of in salethe of goods and services note. Revenue is recognised as the upfront payment invoiced to to invoiced payment upfront the as Revenue is recognised customer. the installation and con 15, IFRS Following adoption of the service. separate a as be recognised would not nection Ins product / service product Revenue Stream Revenue Stream / Dedicated Internet: Dedicated between accessSplit and usage Installation and Connection (Revenue): Installationand Connection purchases of Outright Dedicated CPE (PABX, Lines and Internet) For equipment provided provided equipment For contractual a of as part arrangement FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR BTC has adopted the following new accounting pronouncements as issued by the IASB, which were effective for the company company the for effective were which IASB, the by issued as pronouncements accounting new following the adopted has BTC (...continued) April 2018: 01 from with Customers (...continued) Contracts from Revenue 3) IFRS 15 ACCOUNTING POLICIES ACCOUNTING - Impact revenue on usage and therefore a a revenue on usage and therefore The sale of the handset / SIM card SIM card / handset the saleThe of services ‘free’bundled with network twoseparate is representative of contract performancethe in obligations change a is There customer. the with as the classification well as timingto of ‘free’the to related recognition revenue services. network The transaction to net allocated price services be recognised would only work as portion of the transaction will be price the portion of deferred. In applying the transition principlesIn applying transition the to in the change will there be a 15, IFRS result a as recognition revenue timing of will effectively BTC applying breakage. of revenue of amount larger be recordinga consumes network subscriber a as off when will be no write There services. vouchersprepaid expire. The total amount of revenue recognised revenue of amount total The affected. not basis was monthly a on of classification the in change a is There was notes)as revenue the (in revenue a to provided CPE recognisedfor not did not customer the where customer CPE outright. the purchase customersto charged The fee for CPE of installationand connection service the of as part recognised are term the performance over obligation the specified, not if or, contract the of period relationship customer a as impact sheet is no balance There transition. the of result timing of revenue timing of Nature of change in accounting policy / classification and accounting / classification in policy change of Nature All revenue is allocated to the handset or SIM card. SIM card. or handset the to allocated is All revenue SIM or handset the of Revenue is recognised when control passescard subscriber. the to transaction the price is 15, IFRS Following adoption of the based services/ handset SIM and network the to allocated Revenue from sellingstand-alone prices (“SSPs”). their on services based ‘free’ on usagethe is recorded network or, / handset SIM card the to Revenue related expiry. earlier, if / SIM card the of should be recognised when control passeshandset the customer. to BTC accounts for revenue generated by the consumption consumption the by revenue generated accounts for BTC services customers prepaid by network on usage. of unexercised rightsHistorically the recognised when are airtime voucher expires. any accounts for BTC 15, IFRS Following adoption of the in servicesas revenue, unexercised network expected the rights exercised by pattern of the proportion to customer. CPE supplied to the customer does not represent a lease a represent does not customer the to supplied CPE separate as being identified representative of and is not a with contract a performance in contained obligation customer. total the CPE to will be allocated invoiced for amount Any service allocated and be contract, the transaction price of performance obligation.

product / service product Revenue Stream Revenue Stream / ale of promotional promotional ale of Handsetsand SIM cards Unexercised rights (breakage) CPE not purchased CPE not and the customer by all streams revenue excluding PABX. Allocation of revenue to to revenue of Allocation ‘free’ servicesnetwork a as provided part of bundled offering. This the relates to both s Prepaid Revenue: Prepaid 3) IFRS 15 Revenue from Contracts with Customers (...continued) Contracts from Revenue 3) IFRS 15 BTC has adopted the following new accounting pronouncements as issued by the IASB, which were effective for the company the company for effective the IASB, which were as issued by pronouncements accounting new the following has adopted BTC (...continued) April 2018: 01 from ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR

184 187 .

s of financial statements financial s of ive of financial reporting financial ive of statements reportingthe and entity ion and derecognition and derecognition ion ive characteristics of useful financial information useful financial information ive characteristics of ement ement and capital maintenance capital epts of esentationand disclosure The object Qualitat Financial The element Recognit Measur Pr Conc

• • • • • • • • FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR Effective for annual periods beginning on or after 1 March 2020 1 March periods beginning annual after for on or Effective requirements Key definition the align to 8 Statementsand IAS Financial 1 Presentation IASB issuedamendments of the IAS to 2018, In October is ’Information statesthat, The new definition definition. certainthe clarify aspectsto standards and of the across ‘material’ of of users the primary that to influence decisions misstating be expected reasonably obscuringcould omitting, or it if material about financial information which provide statements, those financial basis of the on statements purposegeneral financial make reportingspecific entity.’ a to will need An entity both. or information, of magnitude or nature the will depend on materiality amendmentsthat The clarify the of context the in is material information, other with in combination or individually either information, the assess whether financial statements. Reporting Financial for Conceptual Framework accounting help preparers develop consistent to in developingstandards, Board the assist to is Framework Conceptual the The purpose of standard all assist in is parties to and place there no applicable policiesstandards. to understandif the and interpret standard financial reporting, concepts for of set comprehensive a sets out It 2018. in March Framework Conceptual The IASB issuedthe preparers accounting in developing efforts policies assistancefor and consistent guidance setting,to otherstheir to understand in and standards. the interpret assets and liabilities for criteria and recognition provides definitions updated some includes new concepts, Framework The Conceptual as follows: arranged is It someand clarifies concepts. important a particular to applies standard no where situations in IFRS of application the affect may Framework Conceptual the to The changes 2020. 1 January annual periods beginning after for on or is effective Framework, Conceptual The event. transaction or Borrowing Costs 23 IAS Borrowing costs capitalisation eligible for The amendments clarify that an entity treats as part of general borrowings any borrowing originally made to develop a qualifying a develop to borrowing made originally any borrowings general of as part treats an entity that amendments The clarify Standards issued but not effective...continued) ( not Standards issued but 3 (...continued) Amendments Business IFRS to - a of Definition business a be Minimum requirementsto an minimum, a at and activities assets of set include, must an integrated business, to be a considered The amendments that clarify business a also that They clarify output. create to ability the to contribute significantly together substantive process that and a input inputsthe and processesthose to applied is, That inputsthe and processes includingoutputs. create all of to needed without can exist outputs’. create to ability ‘the than outputs’ rather of creation the to contribute to ability ‘the inputs have must requirements the for applies it operation, a is joint businessthat a of obtains control an entity when amendmentsthat, The clarify includingheld interests at operation the assets previously the stages, in joint and liabilities business of achieved in combination a operation. the in held interest joint remeasures its previously entire acquirer the In doingso, value. fair 8 and IAS 1 Amendments IAS to - Material of Definition ACCOUNTING POLICIES ACCOUNTING ) )

79 118 361 ( 3 1 2 1 478 ( P’000

(...continued) (...continued)

of deferred tax deferred of tment to retained earnings on adoption of IFRS 15 IFRS of adoption earnings on retained to tment t-paid Revenue- Sale of handset device with network services network device with handset Sale of Revenue- t-paid Impact Adjus Definition of a Business - Amendments to IFRS 3 Amendments Business IFRS to - a of Definition 2020. 1 March annual periods beginning after for on or Effective Management has not yet assessed the impact of this standard to the company. Typical areas where the standard will have a significant standard a will the areas have where Typical standard the company. to this assessed yet of the impact has not Management is arrangementsequipment network where assets network shared arrangements, operators, arrangements other with are; impact Useassests (IRU) sites of includingservices Indefisible Right network and retailand leases communication of of supply the in embedded space. The new standard, in addition to bringing substantial new assets and liabilities onto a lessee’s balance sheet, will have an impact on reportedan impact will have bringingsubstantialto assets lessee’ssheet, new balance addition a in and liabilities onto standard, The new contractssomeadditional leases will be there of definition changed the with that is likely It and performanceas EBITDA. such measures profit lessors lessees by although be considered use to theto which will need able as lessees, be as well may standard, new the scope of the within services.as for accounted remain someto permit which may exemptions limited requirements Key business whether Business 3 determine help entities to in IFRS a Combinations of definition The IASB issuedamendmentsthe to the remove business, a minimum requirementsthe for clarify They assets not. and business activities or a is of set acquired an assess help entities to add guidance missing replacing participantsany elements, capable of are market whether assessment of fair an optional and introduce outputs, business and of a of definitions the narrow substantive, processacquired an is whether New illustrative examplesamendments. along the provided test. were with concentration value The standard requires lessees to account for all leases under a single on-balance sheet model in a similar way to finance leases under leases finance to under way similar a model in sheet single on-balance a all leases under standard for requires lesseesThe account to lesseesstandard personal includestwo for The ’low-value’ exemptions – leasesassets recognition computers)and of (e.g., 17. IAS lesseea will recognise lease, a of date commencement the At less). or months 12 of leaseterm leasesa with leases (i.e., short-term underlying use duringthe the to asset representingasset right an leasethe and the liability) lease payments make (i.e., to liability a and benefits risks the all substantially retains company the accounting lessor where Under asset). right-of-use the (i.e., leaseterm costs in negotiating direct an operating incurred added Initial leaseare classifiedas operatingare leases. asset the ownership of of Lease income is same basesthe income. on leaseas rental term the and recognised over leasedasset the of carryingthe amount to the in as revenue rents recognised are Contingent leaseterm. the basis over straight-line lossa on or as income in profit recognised 2019. 1 January annual periods beginning after for on or standard effective is The earned. are they period in which The transition methods applied for IFRS 15 means BTC does not restate comparative information for the impact of these standards. standards. these of impact the for restate information does comparative not means BTC 15 IFRS for applied methods transition The the of recognition on openingretained earnings of the impact reflect to sheet balance April 2018 has instead 01 adjustedthe BTC and liability. asset 15 contract IFRS 16 LeasesIFRS Adoption of IFRS 15: OpeningAdoption of balance adjustments resulting IFRS 15 from of the implementation arrangement contractual of as part provided Revenue - Equipment Installationand Connection effective not Standards issued but financial the Company’s issuance of of the date to up effective, yet not but issued, are that standardsand interpretations The effective. become they when applicable, if standards, these adopt to intends The Company statements disclosedare below. The nature and the effect of these disclosed are changes below: of effect the and The nature ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR Pos 3) IFRS Contracts15 Revenue from Customers with Installation and Connection (Revenue): Installation Connection and

186 189 (...continued)

FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR The Company uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are based ratesare on days The provision assets. and contract receivables trade ECLs for calculate to matrix provision usesa The Company andcoverage type, customer type, product by loss patterns(i.e., similar segments have customer that various of groupings for due past insurance). credit forms of and other credit lettersby of The Company provides certain pieces of equipment as well as installation services as part of their package of fixed line services provided. services fixed line provided. of package their servicesas installation of part as as well provides certain equipment The Company pieces of entity. servicethe being by the provided from be used independently cannot equipment the as separately sold typically service is not This installationthe as as well which includes equipment these piecestreatsthese of contracts, Company the assessment, Basedthis on underlyingthe service.single performance relatingto usage obligation the services of as part versusPresentation: Net Gross factsand all relevant of and consideration requires judgement agent an principal or actinga is as entity the Determining whether substance the and legal the form both costs, related presenting or revenue basis for appropriate When deciding most the circumstances. the in role respective each party’s determine to service providers reviewed are and its between independent entity the agreement the of Where transactions. of value and volume basedare on content salearrangementsand of prepaid for Distribution network transaction. comprisethe to grossThis requires revenue gross basis. a is recognised on revenue principal, of transactionthat is a in role Company’s the administrativefeesrelated as an operatingcharged any with cost.trade discounts, after transaction the the customer, billed to value of grants Development will be conditions attached all and will be received the grant assurancethat is reasonable there Grants recognised where are will be complied conditions attached the that costs capitalisation Initial of is basedjudgement on management’s with. complied development portion of The current assets the usefulthe lives purchased using of the Revenue is recognised over grant. with. amortising is estimated by grant existing will be no there reporting grants assuminggrantsand at date government that received 2018/2019. year financial the in capital expenditure additional and no received Lease Classification income The rental Lease classification- Operating leases basedan on has determined, The Company property lease into arrangements. rental lessor has entered the as The company ownership of of and rewards risks significant the all retains it that arrangements, the of and conditions terms the of evaluation space These Office propertyto: lease arrangements contracts as operatingthe relate these leases. so propertiesaccounts and for basis. straight-line a on leaseterm the The lease payments recognised over are Botswana. around locations various being in rented Finance leases leasedthe property of value fair the at date inception the leaseat the of commencement the Finance leases capitalisedat are lessor accruingthe value to residual unguaranteed minimum leasethe payments any and of value present the at lower, if or, lease.the in implicit rate interest the discounted by assets contract and receivables trade lossesof credit expected for Provision SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES JUDGEMENTS AND ACCOUNTING ESTIMATES SIGNIFICANT and presentation (...continued) Revenue recognition betweenand impacts revenue obligations of impactsallocation the materially obligations standalone for price determined The revenue of allocation the example, times for – different customersto provided at are when obligations revenue timing the of period. contract the over delivered servicestypically are and which up-front, delivered usually are which between handsets, assets related or contract of value carryingthe to adjustment material of risk significant a be to considered is not there However, these estimatesrevised. if date were sheet the balance after months 12 liabilitiesthe in ACCOUNTING POLICIES ACCOUNTING

sumptions an entity makes about the examination of tax treatments by taxation treatments by authorities tax the examination of about makes an sumptions entity her an entity considers uncertain tax treatments separately considers treatments an entity uncertain tax her an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates creditstax and unusedtax losses, unusedtax bases, tax loss), (tax determinestaxable an entity profit considers changesan entity in factsand circumstances How Whet The as How

• • • • timates and Judgments Revenue recognition and presentation Revenue recognition IFRIC Interpretation 23 Uncertainty over Income Tax Treatment Tax Income Uncertainty over 23 Interpretation IFRIC affects addresses treatments the application taxesinvolve income The uncertainty accountingInterpretation the that when tax for include requirements relatingto specifically does it nor 12, IAS leviesscope taxesof outside to or the apply and does 12 not IAS of addressesspecifically the following: The Interpretation and penaltiesinterest associated with uncertain treatments. tax AND JUDGEMENTS ACCOUNTING ESTIMATES SIGNIFICANT The Company does not have borrowing costs have itsto does cash reserves not due The Company position. other more one or with together or separately treatment each uncertaintax consider to whether determine must An entity The interpretation followed. be should the uncertainty resolutionthe predicts of better that approach The treatments. uncertaintax to assesseed yet the impact has not Management 2019. 1 January reporting annual for periods beginning after is effective on or company. the Where the Company doesn’t sell equivalent goods or services in similar circumstances on a standalone basis it is necessarystandalone to basis it circumstancesa on servicessimilar in or goods sell equivalent doesn’t Company the Where inputs; external maximises methods usethe When estimating of standalone Company the price the standalone price. estimate the Company, the servicessold by and goods similar estimating standalonestandalonefor prices of price determining include the reasonable margin cost-plus parties usingthird services solda by or and when goods similar standaloneobserving prices the for standalone estimate reliably possibleto is not it Where equipment). handsetssometimesand other case the for is (which approach standalone the services, sometimes casethe for which is pricing, variable salesstandalone highly observable or of lack to prices due contract. the in obligations other standalonetransaction price less pricesthe as the of be determined may an obligation of price Revenue arrangementsRevenue including one deliverable: than more deliverablesthe are arrangements including one deliverable, In revenue than more fixed linesto and mobile installations. This relates accounting unitsthe of each of to allocated is consideration arrangement the accountingand separate units of more one or assignedto cash capthe Under arrangements. mobile post-paid multiple-element to applied is The cash cap method cash cap method. basedthe on of the amount to isthe limited handset to value allocated the but the agreement, elements of different the to is allocated revenue method, nature estimatesthe to complex due each deliverable can require to allocated value Determining the zero. be which may it, for cash received accounting 15 policies. IFRS the has been discussed item each selling under Standalone for prices (SSP) services and provided. goods of Es certain Financial Reportingstatements useInternational the with critical of requires financial Standards in conformity of The preparation accounting estimates based Estimatesare on historicaland and and evaluated judgmentsjudgments continually are concerning future. the accounting company’s applyingthe processthe In of reasonable. considered are eventsthat future about factors expectations with coupled the to causingadjustment material of risk significant followingthe made has estimatesa and have management judgmentsthat policies, next the within subjective or particularlyare complex assetsassessments involve they that and liabilitiesas decisions of carrying or amount year. asset when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete. The amendment amendment The sale complete. are its use intended or for asset that necessaryactivities the prepare to all of substantially when asset applies those amendments an entity borrowing to statesalsothe beginning the annualreportingcosts that after of on incurred or reporting annual amendments periods beginningThe for is effective on or amendments. those firstapplies entity the period in which statements. financial the Company on an impact have will not amendment This 2019. January 1 after Conceptual Framework for Financial Reporting Financial for Conceptual Framework (...continued) ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR

188 191 (...continued)

Usage of a standardseparate a leaseand is not a represent does not instrument telephone The installation and connection does not result in the transfer of goods and services to the customer but but customer servicesthe to and goods of transfer the in result doesThe installationand connection not When subscribers makes calls on their fixed line it would be viewed as an optional purchase of purchase of an optional as viewed would be fixed line it subscriberstheir on calls When makes value in use calculations are undertaken, management must estimate the expected future cash flows from the asset or or asset the flows from cash future estimate expected must the management undertaken, are in use value calculations rather grants the customer an option to purchase future fixed line services at a discounted rate by not incurring this fee as part of the of as part incurring fee this not by discounted rate a servicesat fixed line purchase future to an option grants customer rather the The installation would be fee customer. the to has been provided that right material a and results of creation the in contract renewed The upfront access the to would performancerelate and therefore obligation. access with line, the customer the to provide to required When ACCOUNTING POLICIES ACCOUNTING MARCH 31 ENDED YEAR 2019 THE FOR the disposal the obtain from of currently would entity the that estimating by amount is determined asset the an of value The residual its usefulthe end of at expected condition the and in age of already were asset the if disposal, the of estimated deducting cost after asset companythe experience of past the based on of judgment matter a is asset an of value and residual useful the life The estimation of life. assetsmanagement. similar of and the intention with assets non-financial of Impairment Non- assets each reporting all non-financial at date. for impairment indicators of any assessesare there The company whether Management be recoverable. carryingthe amounts not may indicatorsthat are there when impairment assetsfinancial tested are for assets respective the in use of of nature and expected changes technological expresses of and estimates impact the on judgement future. near the in revenue of the generation those flows. cash of value present the calculate to in order rate suitable discount and chooses a cash-generatingunit Instruments financial of Value Fair Initial for applicable date grant rates at current at cash flows discounted expected basedthe valued on been Financial liabilities have future expected estimatesabout make to company the requires valuation This characteristics. and risk terms similar with items to uncertainty. subject are andthey hence cash rates, flows anddiscount POLICIES ACCOUNTING Revenue Recognition at customer the to servicestransferred are the or contractsRevenue from goods customers with of is recognised when control services. those goods or for in exchange expects entitled to be the Company to which reflectsthe consideration that amount an services (comprisingas network such services, providing from principally telecommunication revenue generates The Company Premises mobile devices and Customer sale of the as from as well services, and roaming interconnect SMS), and data voice, and works of cost property rentals, Services, Added Value services, services Directory (comprising of and other (CPE) Equipment payment and prepaid post-paid services under communication and data voice provides The company party fees). collection third include SMS and data voice, Revenues from in bundled packages. or separately servicessold and maybe Products arrangements. customer a of length typical The roaming network. or the local network in originated traffic telecommunications charges for explained below: categoriesare revenue various The months. 36 or 24 12, is contract 1) Fixed Voice Usage Voice Revenue: A) voice usage represents Fixed line the separate contract. a as for accounted be servicestherefore and will and goods additional is recognised based revenue on usage in therefore and customer the with separate contract performancethis in only obligation month. particular that amounts line with for invoiced B) Prepaid Products: Instrument: Telephone Usage of instrument.standardtelephone the recognised for separately is no revenue such, As performance obligation. and Connection:Installation SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES JUDGEMENTS AND ACCOUNTING ESTIMATES SIGNIFICANT (...continued) Values Residualand Charges Depreciation (...continued) (...continued)

is shorter ed portion of ed portion of e or 50 years, years, 50 e or years o 10 years o 10 to 20 years 20 to 40 unexpir leas whichever 5 3 t

ACCOUNTING JUDGEMENTS AND ESTIMATES AND JUDGEMENTS ACCOUNTING ESTIMATES the properties are not contaminated and that the sites have stable ground conditions. stable sites have the ground conditions. and that the properties contaminated are not the property are free from any structural fault, rot, infestation or defects of any other nature, including inherent including inherent nature, other any defects infestation of or rot, structural fault, any from free propertyare the That That weaknesses due to the use in construction of deleterious materials. materials. deleterious weaknesses usethe in construction of to due Network Assets Network Buildings Leaseholdand buildings land

Other plant and equipment plant Other

• • ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR Depreciation Charges and Residual Values Values and Residual Charges Depreciation and each asset the of cost total the of 20% than greater or to as equal is defined component significant a purposes, depreciation For reference with is determined asset an The useful of life separately. useful lives depreciated are different with component significant benefitseconomic the pattern in reflects which method The depreciation experts. itsas prescribed internal to life by expected including but of factors, variety a these dependingof The vary assetsuseful lives on can the entity. to flows asset the to attributable cycles life product period, relationship customer refurbishments, programs, maintenance obsolescence, technological to limited not are: and equipment plant property, of The estimated useful lives company’s assignedto management. of intention the and Based on prior management practice, inventory that has not moved for a 12-month period is considered to have no normal sale no normal have to period is considered 12-month a moved for has not that inventory practice, management Based on prior is raised full The provision basedthe on value. sale no normal have to considered are and discontinued products Obsolete value. product. the of value realisable net or cost Allowances for slow moving inventory Allowances for Related partiesRelated of The Government company. the personnelas beingto considered related are management parastatalsand key Government, to is required judgment management Significant 2019. March 31 at as shareholding is 54.16% partythe as related stilla is Botswana also especially on entities controlled relationship the type of basedthe on party, related beinga who qualifies to as for determine the Government. by Provision for expected credit losses of trade receivables and contract assets contract and receivables trade losses of credit expected for Provision

SIGNIFICANT

Land and buildings are carried at a revalued amount, which is the fair value at the date of the revaluation less any subsequent subsequent less the revaluation any the date of at value which is the fair amount, revalued a Land and buildings are carried at performedare valuations considersthat Management losses. impairment accumulated subsequent and depreciation accumulated from its materially differ does asset not revalued a value of fair the that years)to ensure three every enough (after frequently has followingmade the arriving assumptions processvaluer during at and at revaluation the The independent carrying amount. the property values: Revaluation of land and buildings land of Revaluation The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. estimate. significant a and ECLs is conditions economic forecast between rates, correlation historicalthe observed default assessmentThe of loss historical credit The Company’s conditions. economic forecast changes in circumstancesto sensitive and of ECLs is of amount The The information future. the in default actual customer’s be representative of also not may conditions economic of and forecast experience assets is disclosedand contract 11. receivables trade in Note Company’s the ECLs on the about The provision matrix is initially based on the Company’s historical observed default rates. The Company will calibrate the matrix to adjust the adjust to matrix the will calibrate The Company rates. historical observed default Company’s basedthe on is initially matrix The provision product)gross domestic (i.e., conditions economic forecast if instance, For forward-looking loss information. with experience historical credit historicalthe defaultssector, manufacturingthe in of an increased number to which can lead year next the over deteriorate to expected are forward-lookingthe and changes in updated rates are historical the observed default reporting every date, At adjusted. ratesare default estimates analysed. are

190 193 the the B) Post-paid Products: B) Post-paid handset voucher expires (within 3 months). If the handset voucher expires, and BTC is not required to make any payment to the the to payment any make to required is not and BTC expires, voucher handset the If expires 3 months). (within voucher handset income”. loss as “other or would be recognised in profit financial liability the release of the distributor, C) Mobile Handset Revenue (Mobile CPE) separatetwo are services and handset The network services, devices network bundled with sales mobile handset of For services device transaction based the network The total and the handset to price be allocated needs to performance obligations. since is recognised upfront handset the to transactionallocated price total The sellingstand-alone price (“SSP”). relative their on services network the transactionrecognised are to total price allocated and the subscriber has passed handset the the to of control is handset the is recognised when revenue separately, sold mobile devices For period. contractual the based on usage over sale. of the point at the customer to delivered Revenue 3) Data and forwarding call identification, caller voice mail, websitesand domains, services, as internet servicessuch includes revenue Data separatetwoas contained performance usage obligations represent and data line an internet Access to messageshort services. usageaccess and data to allocated is contract the under transaction price receivable total The customer. a with contract a within data, of amount an unlimited to is entitled customer the As sellingstandard prices. relative performance basedtheir on obligations customer. the to services provided are access and data internet the is recognised when revenue (Fixed Revenue and Mobile) 4) Interconnect company The operators’ networks. in other originate that traffic and other calls derived from revenuesare Interconnection mobile operators both or telecommunications other fees with based into agreementsreceives on interconnection entered These services revenues recognised are as the performed are over-time and period in the and internationally. nationally installing, for collectingand delivering charges include charges calls, for Interconnect services rendered. were the in which maintaining interconnect. and operating points the of ACCOUNTING POLICIES ACCOUNTING MARCH 31 ENDED YEAR 2019 THE FOR Revenue Recognition (...continued) usage as per servicesafter the pays for customer the whereby solutions, communications and data voice services are paid Mobile post services telephone and international domestic solutions include both services communications Voice contract. serviceagreement the network post-paid Revenue for agents involved. no dealersare or there and BTC sold by are paid products All post services. and ISDN services period contractual the is recognised network basedthe services on usageto over transactionallocated basedprice total on subscriber. by the twoseparate performanceand are services obligations and handset network the arrangements, bundled mobile post-paid For stand-aloneselling services transactionrelative device total the network basedthe and price the handset to is allocated on their has passed to handset the of control since is recognised upfront handset the to transactionallocated price total The (“SSP”). price subscriber. the portion a financing component, significant a which has months 12 than period greater a salesPayments over deferred on handset period. contractual the income” over financingthe as “interest and recognised to allocated transaction is price the of financial a as for accounted is value voucher handset the services, network vouchersthe bundled with handset the sale of For network the to allocated price Transaction contract. the of inception at is calculated receivable the of value fair the and receivable the fair deducting after consideration total the of residual the is contract performancethe in obligations other servicesany and period contractual the services over revenue as is recognised network to allocated transaction The price receivable. the of value based on usage. redeems customer the when handset the for supplier partythird a pay itsto obligation for financial liability a recognise BTC The voucher). handset the made for payment upfront any plus receivable the to is equal liability (this voucher handset the when or voucher handset the redeems subscriber the when of earlier the occurs financial liability at the of extinguishment will be separately recognised for the standard telephone instrument. Any amount amount Any instrument. standardtelephone the recognised for separately will be

Access and usage represent two separate performance obligations. The total transaction price total The Accesstwoseparate performance and usage obligations. represent

ognition (...continued) ACCOUNTING POLICIES ACCOUNTING BTC accounts for expected unexercised network services as revenue, in proportion to the pattern of rights exercised by the rights exercised by pattern of the in proportionto servicesas revenue, unexercised network expected accounts for BTC operating costs other expensed of as part are which Dealers are given discounts, upon identifying breakages. expected customer when incurred. Upon purchase of an airtime scratch and dial card or electronic vouchers the customer receives the right to make outgoing voice calls andvoice calls outgoing make to right the receives vouchers customer the electronic or and dial card scratchairtime an Upon purchase of liability contract a as is deferred received amount the recognition, On initial and dial card. airtimescratch the of value the usageto data is recognised products in prepaid sale of the from The revenue airtime utilises the available. customer the as is recognised and revenue tariff. agreed services the loss as usage are provided basedor airtime at actual data on the the profit or A) Prepaid Products: All network services relating to mobile revenues (i.e. Provision of mobile post-paid and prepaid services, including voice minutes, voice minutes, including services, and prepaid post-paid mobile of Provision services mobile revenues relatingto (i.e. All network the to service each ongoing provided separate performance for obligation a as services) been considered have and data SMS, services the are provided. the period that satisfied and are over customer Revenue for access charges, airtime usage, and messaging by contract customers is recognised as services are performed. Unbilled Unbilled and messaging customersservicesairtime performed. are as is recognised contract usage, by access charges, Revenue for services be to from and unearned revenue each period end of the at accrued are provided services resultingrevenue already from uses customer the as time such until is deferred credit prepaid sale of the Revenue from deferred. are periods in future provided expires. credit the or airtime, the 2) Mobile Revenue related to the contract is allocated to the access and usage based on their relative standard selling prices. Any amount invoiced amount Any accessselling the standard to and is allocated usage relative prices. based the contract to on their related the installation enablesthe As contract. the transaction under total price the to allocated installation is upfront) (once-off for arising accessfrom right installationmaterial the the to is allocated performance only obligation access to line, the to customer customer. the of life the and recognised over transaction total The Accessseparateservices performanceFixed Line Revenue: Access fixed line obligation. representsto a in performance identified obligations other servicesany and voice access fixed line to to allocated is contract the to related price standardtelephone the usage of amounts for invoiced Any sellingstandalone prices relative (“SSP”). basedtheir on contract the and thecontract, transaction total price under the to allocated and installation will be upfront) (once-off (monthly) instrument right material the access to enablesline, installation the As the to instrument and telephone customer the access the to allocated . customer. the of life the installationthe performanceand recognised over arising to installation obligation allocated from will be C) Post-paid Products: C) Post-paid separate a leaseand is not a represent does not instrument standardtelephone a Instrument: Usage of Telephone Usage of no revenue such, As performance obligation. to and relates line, accessthe with to customer the provide and Connectionto Installation Revenue: The installation is fee to and released when received liability contract a as installation is deferred fee The upfront access the performance obligation. customersthe life. basis over straight-line access the a line performanceand on obligation of as part revenue Fixed Line AccessLine Fixed Revenue: made. usage Usageare to as calls is recognised Voice Revenue: Revenue related and whole, a as contract the transaction price of the part of will form instrument standardtelephone the usagethe of invoiced for contract. the in performance identified the obligations to allocated is installation fee is deferred when received, and released to revenue as part of the access line performance obligation on a straight-line straight-line access the a line performance on obligation of as part revenue to and released received, when installation is deferred fee life. customer the basis over Revenue Rec FOR THE YEAR ENDED 31 MARCH ENDED 31 YEAR 2019 THE FOR

192 195 emporary differences at the reportingthe bases between tax date the differences at emporary t

ACCOUNTING POLICIES ACCOUNTING MARCH 31 ENDED YEAR 2019 THE FOR Revenue Recognition (...continued) of assets and liabilities and their carrying financial reportingassetsamounts purposes. for their and liabilitiesand of arises liability from tax the deferred when differencestaxable except all temporary recognised for liabilitiesare tax Deferred affects transaction, time of the at business a combination, is not transaction that in a liability or an asset of the initial recognition loss. or taxable profit nor accounting the profit neither Capitalisation of Customer Acquisition Costs Capitalisation Customer of These commisions. dealer fees, activation SIM costs acquisition subscriber comprising pays union commissions, The Company Costsamortised are asset. in line with cost acquisition contract a as recognised are contract acquiring costs incremental a of direct period the given contract the which is normally Group the be earned by to is expected that revenue related the of recognition the renewal. new commissions become payable upon contract that fact OF SALES COST servicesand network operators for This includes payments other to an expenseas when incurred. sales recognized are of Cost and maintenance support assets, Intangible networksassets and buildings, land of and related depreciation interconnection, repairs. and network installations, systems, costs network contract for BENEFITS EMPLOYEE benefits employment Post the registeredThe fund is under employees. its eligible citizen fund for pension defined contribution operatesa The company Pension members. the pensionable earnings of the 16% of fund the to contributes The Corporation 2014. Act, Funds Retirement service is related the as and to relate they which to year lossthe in or profit to employees charged are of on behalf contributions provided. benefits employment Short-term duringthe Company the serviceto has rendered employee employee benefitsthe term recognised when are short of The cost and annual leave paid salaries, followingthe include : Company the employee benefits -term short of The annual reportingyear. services).subsidised and and aid goods medical housing, bonuses benefitsand non-monetary (car, leave, sick paid benefits Termination of offer the withdraw can no longer Company the when of: (a) earlier the benefitsat recognised are termination of The cost and involves the 37 IAS scope of the is within restructuring recognisesthat a coststhose benefits; Company the and when (b) for benefits. termination of payment contract. their end of the employees receive at gratuities and contract expatriate employment, of conditions their of terms In services uses unlessthe entity the services, employee benefits employee rendersthe period is recognised duringthe of The cost stage which at asset, an of criteria recognition the benefitsthe meet and received asset an construction of the employee in of the made, contributions regular the than Other item. and equipment plant property, of item related the as part of is included it its employees’arrangements. of pension in respect liability further any have does not company the withdraw no longer can company the when a) of earlier the benefitsat recognises be payable termination may The Company 37(Provisions, IAS scope of the is within restructuringa recognises that those costs benefitsthecompany and b) when for of offer benefits. termination of includes payment Assets)the that Liabilitiesand Contingent Contingent DEFERRED TAX on method using is provided liability the tax income Deferred

ract costs incurred related to contracts with an amortisation period of less than one year have been expensed as incurred. been expensedas incurred. have year amortisation less costsan contracts one to than with ract period of related incurred company applies the practical expedient in paragraph 121 of IFRS 15 and does not disclose information about remaining discloseabout and does information 15 not IFRS of 121 in paragraph expedient practical the applies company performance obligations that have original expected durations of one year or less. For contracts with a duration of more than than more of duration a contracts with For less. or year one of durations original expected have performancethat obligations has been disclosed. information the year, one The Cont

FOR THE YEAR ENDED 31 MARCH ENDED 31 YEAR 2019 THE FOR ACCOUNTING POLICIES ACCOUNTING 2) 2) 1) 1) BTC has elected to make use the following make of to has elected BTC expedients: practical Practical ExpedientsPractical 7) Interest Income rate interest effective the and receivable amount principal the to proportion reference time basis with a is recognised on Interest (EIR). rate using interest effective the accrues, interest the as Revenue is recognised applicable. Directory Services: Directory passed. is when control generally distribution, released for are directories telephone Revenue is recognised when Construction Contracts: progresstowards measure to method usingan input time, recognises construction contracts from revenue over The Company controls. the customer performance enhancesservice that as the Company’s an asset the satisfaction of complete Rental Income: are which operatorsand PABXs cellular towers other leased to are network which are out rented are that equipment Primarily on ongoing leaseterm the line basis over straight a is recognised Revenue on individuals. and corporate private both to rented services. other leasesand is classified under line basis over straight a Revenue is recognised on mobile operators. other towers leased to are network which are rentals Site an ongoing on lease leases. term the 6) Other Services6) Other Revenue for the sale of all CPE equipment purchased outright and PABX equipment is recognised as control is passed on delivery. is passedas control on delivery. is recognised equipment and PABX purchased outright equipment all CPE sale of the Revenue for as separate is recognised performance and revenue obligation a would be customer the to supplied equipment Accordingly, passes customer. the to equipment the of control as identified leasenot and is a represent does not purchased outright not (“CPE”) Premises Equipment Customer Revenue for CPE invoiced for amount Any customer. a with contract separate performancea contained in obligation being representative of service performance the and to is allocated sales the contract transaction total price the to of and is allocated Internet Dedicated over it and depreciates (“PPE”) and Equipment Plant customers recognisesto CPE provided as Property, The company obligation. benefits CPE. the from obtain economic to is expected company the period the A)PABX Equipment and Outright Purchases and Outright Equipment A)PABX Purchases Outright B) Not (Rental) 5) Customer Premises5) Customer (CPE): Fixed and Data Equipment Revenue Recognition (...continued)

194 197

is shorter ed portion of ed portion of e or 50 years, years, 50 e or o 10 years o 10 to 20 years 20 to 5 3 t unexpir leas whichever

and equipment plant Other Buildings 40 yearsBuildings 40 Leaseholdand buildings land Assets Network

eciation is provided on other property, plant and equipment on a straight line basis. This is from the time they are available available are they time the This is from line basis. straight a on and equipment plant property, on other is provided eciation Depr PROPERTY, PLANT AND EQUIPMENT (...continued) EQUIPMENT AND PLANT PROPERTY, remaining surplus the properties in revaluation attributable the property, revalued a of retirement sale or subsequent On profits. assets Improvements operatingto leases capitalised held under are profits. accumulated to reservetransferred is revaluation remainingthe leaseterm. over and depreciated construction) comprises coursethe in costs of and equipment in constructing incurred Capital property, (plant work-in-progress Assets in progress until remain incapital work asset. the the construction of to attributable directly are that and equipment plant appropriate the to transferred are they time that At date. earlier the is whichever commissioned, are use into or been put have they are details 7. Further given in Note equipment. and plant property, class of benefits expected are economic when no future is derecognised upon disposal or and equipment plant property, of An item is asset the year lossthe in or is included in profit asset the lossarising of on derecognition or gain Any its disposal. from use or derecognised. Depreciation and asset the of cost total the of 20% than greater or to as equal is defined component significant a purposes, depreciation For as land on freehold provided is not Depreciation separately. useful lives depreciated are different with component significant each use. for available yet not are they as construction coursethe in of and equipment and plant life an indefinite have to is deemed it an value of residual The values. residual the any estimated useful lives taking account over cost into their off write to soas use, for its until zero is charge depreciation asset’s the case, the is it If carryingamount. asset’s the than greater or to be equal may asset carrying asset’s below the amount. decreasessubsequently an amount to value residual are: and equipment plant property, of The estimateduseful lives company’s assignedto ACCOUNTING POLICIES ACCOUNTING Where the expected useful lives or residual values of property, plant and equipment have changed due to technological change or or change technological to due changed have and equipment plant property, values of residual useful expected livesthe or Where remainingthe estimated useful over valuation or cost their off write to soas adjusted is depreciation of rate the conditions, market and equipment. plant property, such values of estimatedthe lives residual to year financial each at reviewed are and equipment plant property, of methods valuesand depreciation residual The useful lives, the ceases asset at an of Depreciation the previous estimates. from differ expectations period if current adjustedthe and in end, disposal company a in is included distribution; or held for asset sale or is classifiedas held for asset the that date the of earlier are details 7. Further given in Note is derecognised. asset the that date the distribution held for sale or is classifiedas held for that OF NON-CURRENTIMPAIRMENT ASSETS indication any is there carrying itsthe amountsassets reviews whether of determine Company to the each reportingAt date, is asset estimated the of amount recoverable the exist, indications such any If loss. an impairment suffered assetsthose have that of amount estimate recoverable possibleto the is not it Where any. if loss, impairment the of extent the determine to in order asset’s An belongs. which it to cash-generating unit the of estimatesamount recoverable the company the asset, an individual lessvalue costs disposal in useand value and its of fair cash generating unit’s or asset’s an of higher the is amount recoverable those from of independent largely are that inflows cash doesgenerate unlessasset not the asset, an individual for is determined assets. of assets company’s or other FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR

and buildings are measured at fair value less accumulated depreciation on buildings and impairment losses and impairment recognised on buildings lessvalue depreciation accumulated fair at measured are and buildings equent costs are included in the asset’s carrying amount or recognised as a component, as appropriate, only when it is is when it only appropriate, as component, a as recognised or carrying costsasset’s amount the included in equent are ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR Land and buildings are revalued independently by professional valuers using the open market value method. Revaluations are are Revaluations method. value valuers using professional open market the by independently revalued are and buildings Land and buildings is credited land such of arising increase revaluation the on revaluation Any years. three of intervals at conducted recognised same previously asset the decrease for reverses revaluation it a that extent the to except reserve, revaluation the to A charged. decrease previously the of extent the lossto or profit the to increase is credited in which casethe an expense, as extent the an expenseto as and buildings is charged such land of arising revaluation the carrying on the decrease in amount The revaluation asset. the of revaluation previous reservea relating to revaluation the held in any, if balance, the exceeds it that charge depreciation the to equal amount an and and buildings land usefulreserve expected livesthe amortised of is over reserve accumulated to revaluation the from transferred is and buildings, such land portionrevaluation of the to attributable at the date of revaluation. Valuations are performed with sufficient frequency to ensure that the carrying amount of a revalued revalued a of the carrying amount that to ensure frequency sufficient performedare with Valuations revaluation. of date the at value. its from fair materially differ doesasset not Land probable that future economic benefits associated with the item will flow to the company and the cost of the item can be can be the item of the cost and the company to will flow benefits item the associated with economic future that probable loss financial period in duringthe or profit to charged are expenditures repairsand maintenance All other reliably. measured are incurred. they which benefits expected are economic no when future is derecognised upon disposal or and equipment plant property, of An item disposal betweenthe net difference the as (calculated asset the of loss on derecognition or gain Any its disposal. from use or is derecognised. asset the year lossthe in or asset) the is included in profit of carryingthe and amount proceeds Subs Property, plant and equipment, excluding land and buildings are stated at historical cost less accumulated depreciation and and less historical depreciation cost accumulated statedat excluding are and buildings land and equipment, plant Property, expenditure includesall direct and equipment plant Property, applicable. where loss, impairment accumulated subsequent met. are criteria recognition the if thereof inspection major or of, part replace to, add to and costssubsequently, incurred PROPERTY, PLANT AND EQUIPMENT AND EQUIPMENT PLANT PROPERTY, Work-in-progress includes contracts carried out for customers and is stated at the lower of cost and estimated net realisableand estimated net cost of lower the customersstatedat and is for includes contracts out carried Work-in-progress are such work-in-progress payments of Advance respect in foreseeable losses. any for provisions for due consideration after value payables. and other trade included under Inventories comprise items of customer premises equipment used in the construction or maintenance of plant (including work-in- plant of maintenance construction or usedthe in premises equipment customer Inventories comprise of items weighted the on determined cost, of lower the statedat Inventoriesare inventories. storesand other and consumable progress), slow moving and obsolete items. for due consideration after value realisableand estimated net basis, average INVENTORIES INVENTORIES Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets current against tax current off exists set to right enforceable a legally if offset liabilitiesare assets tax and deferred tax Deferred samesame taxes the taxable liabilities to and the taxation and the deferred relate authority. income tax entity The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer is no longer it that extent the to each reporting assets and reduced at date tax is reviewed deferred of The carryingamount Unrecognised to be utilised. asset tax the deferred part of to allow all or available taxable will be sufficient profit that probable future that probable has become it that assets extent the re-assessed reportingare each tax to recognised are and deferred at date to be recovered. asset profits tax will allow the deferred Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets unused tax and of unused tax carry-forward differences, temporary assets all deductible tax recognised are Deferred for differences, temporary deductible the which against available will be taxable profit that is probable it that extent the to losses, the recognised if assetsSuch not and liabilitiesare assets losses unusedand unusedtax tax be utilised. can of carry-forward the nor profit tax the assets neither and liabilities affect which other of recognition arisesthe initial difference from temporary transaction. the time of the at accounting profit DEFERRED (...continued) TAX

196 199 Current taxation is charged on the net income net taxationthe on is charged Current

as are referred to in the order form, and in respect of which the the which is grantee an granted of and in respect form, order the in to referred are as

(...continued) FOREIGN CURRENCY TRANSLATION SDR the of value The debts. operator settle international to currency the as Union uses SDR Telecommunications The International US currencies (the major of basket rates of exchanged Dollarsvalues in US market basedthe summing on the by is determined sterling pound). Japaneseyen, EUR, Dollars, OF USE (IRU) INDEFEASIBLE RIGHT the grantor agreement, the As per (Bofinet). Network Fibre Botswana with arrangement capacity a into entered The company transmission IRU is defined The transmission IRU. the use of of right and irrevocable exclusive grants the an indefeasible, grantee pointssuch between capacity network a as use. of right and irrevocable exclusive indefeasible, access physical or operation the over control any have does not arrangementsand BTC IRU the specified under assetsThe not are users other that is likely it price, related market a is not paid price the Although met. not are requirements 4 IFRIC thus asset, the of doesconstitute not the IRU arrangement Therefore asset. the of the output of amount significant will be able to use a than more Payments service. receivesthe company the period in which the The expenses recognised over are 4. IFRIC leases of terms in services the exceed received the should accrued and service received the made in excess of if prepayment a as recognised are payments made. GRANTS DEVELOPMENT will conditions attached all and will be received the grant that assurance is reasonable there Grants recognised where are and plant property, construction of or acquisition the fund specifically to company the Grants by received be complied with. aregoingthe to be used Grants in that liabilities. grants as development andclassified as non-current reflected are equipment a to is the credited grant value of fair the an asset, relates to the Where grant liabilities. are classified as current year financial next useful expected the basis over systematic lossa on or grants profit development called to and is released account income deferred and equipment. plant property, such lives of DEFERRED REVENUE rentingthe for advance in Revenue received advance. in received are certain revenue amounts certain of agreements, rental As per leaseterm. the remainingthe of life as income over is recognised and equipment plant property, of CAPITAL STATED shares issued by limited company public a converted was to body, statutory a Limited, Corporation Telecommunications Botswana authorised 1,050,000,000 with Exchange Stock Botswana listedthe was on company the April 2016 On 8 2012. 1 November the on the 2019 March 31 at As listing. of day shares issuedthe were on 250,000,000 shares listed, of number total the of Out shares. majority the remains Botswana of The Government shares). 1,050,000,000 shares (2018: issued 1,050,000,000 had company shareholding. 54.16% a with shareholder TRANSACTIONS PARTY RELATED the portion of significant and Parastatalsa authorities local constitute various and its Botswana of Republic the of The Government directors. personnel Company’s the and management key parties members related the are of Other revenues. company’s CURRENT TAX INCOME statementstaxation. financial the using in is provided the of gross method Taxation andcapital allowances on fixed to taxation, subject which is not and income taking expenditure, account into after year the for FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR ACCOUNTING POLICIES ACCOUNTING ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR Transactions in currencies other than Botswana Pula are initially recorded at the rates of exchange prevailing on the dates of the the dates prevailing of the on exchange rates of the at recorded initially are Pula Botswana than in currencies other Transactions approximating exchange rates of the at translated assets currenciesare such Monetary in and liabilities denominated transactions. are currency foreign a in historical cost of terms in measured are that items Non-monetary reportingthe thoseruling date. at a in value fair at measured items Non-monetary transactions. initial the dates the of at ratesas using exchange translated the lossarising on or Profit is determined. value fair the when date the using ratesat exchange translated the are currency foreign arise. they in which year the loss in or in profit with dealt are company the to currenciesattributable foreign of translation FOREIGN CURRENCY TRANSLATION Computer & billing software and network system and network & billingsoftware Computer systems licenses) (which includes software for and network software payments purchase to made upfront The company periods property arefor intellectual granted the use of licencessoftware for The purposes. and Network technology Information The licences at are renewed ranging betweenyears 5 and licences20 amortised and are dependingspecific accordingly. on the no cost. little or asset intangible of Derecognition disposal between the net difference the as measured are asset an intangible lossesGainsarising of or de-recognition from is derecognised. asset lossthe when or recognised in profit are and asset the of carryingthe and amount proceeds Amortisation of intangible assets with finite lives is over the useful economic life and assessed for impairment whenever there is an is there whenever assessedand impairment life usefulassetsthe Amortisation for economic intangible lives finite is over with of end of the at least Amortisationamortisationat and period reviewed are method be impaired. may asset intangible the that indication amortisationThe lives finite is with expenseasset on intangible useful finite life. assetsall intangible each reportinga with period for assets. intangible the of function the with is consistent that expense lossthe category in or recognised in profit The useful lives of intangible assets are assessed as either finite or indefinite. assets intangible The usefulassessed or lives finite are of as either Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at assets intangible at carried are Following recognition, initial cost. at assets recognition Intangible on initial measured are acquired capitalised intangibles not are Internally generated losses. amortisation impairment accumulated accumulated and less cost any is incurred. the expenditure in which the period loss in or in profit is reflected expenditure related the and INTANGIBLE ASSETS INTANGIBLE An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment recognised impairment previously that indication any is there each reporting whether to as assessment at An date is made asset the of carryingthe amount reverses, subsequently loss an impairment Where decreased. have or exist losses no longer may does increased carryingthe amount sothat itsamount revised estimatethe recoverable of to (cash-generating is increased unit) (cash- asset the loss been recognised for had no impairment been determined would have that carryingthe exceed amount not is asset unless relevant the lossas income immediately, is recognised an impairment reversal A of years. generatingin prior unit) comprehensive an increase in other as losstreated is impairment the reversal in which casethe of amount, revalued a at carried loss. or reversing recognisedthe portion in profit after income (OCI) previously Management’s estimates of future cash flows are subject to risk and uncertainties. It is therefore reasonably possible that changes that possible reasonably therefore is It and uncertainties. to risk subject are flows cash future estimates of Management’s cash-generating (or asset an of amount recoverable the If assets. thecompany’s of recoverability the affect which may could occur itsto (cash- asset generating is reduced the unit) of carryingthe amount is estimatedunit) be lessto its than carryingamount, buildings, is land or asset unless relevant the lossesan expenseas recognised immediately, are Impairment amount. recoverable reservethis of value the of extent the reserve to revaluation the decrease in a as losstreated is impairment in which casethe asset. relating this particular to In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that that rate discount a pre-tax value using present their to discounted are estimated flows cash the future assessingIn in use, value the asset.to specific the and risks money value of assessmentstime the market of reflectscurrent IMPAIRMENT OF NON-CURRENTIMPAIRMENT (...continued) ASSETS

198 201 (...continued) INSTRUMENTS FINANCIAL For trade receivables containingabove. significant financing explained simplified approach applies the the Company components, risk increase in credit Significant compares company the recognition, initial since significantly loan has increased a on risk assessingIn credit the whether of date the occurringat as default a of reportingthe risk the with date at occurringas loan the on default a of risk the supportable, and is reasonable that information qualitative and considers quantitative both The Company recognition. initial including historical experience and forward-looking Forward- effort. or cost undue without available is that information obtained counterparties industriesthe the in which operate, prospectslooking includes of future considered the information organisations, similar and other think-tanks relevant bodies, governmental analysts, financial reports, expert economic from information. economic and forecast actual sources of external various of as consideration as well ACCOUNTING POLICIES ACCOUNTING MARCH 31 ENDED YEAR 2019 THE FOR receivables (excluding parties)amounts related from and other due Trade Classification been have They amortised cost. at assets measured as financial classified are subsequently 11) receivables (note and other Trade are that cash flows specified datesto on these receivables of give rise, terms contractual becausethe manner classifiedthis in these cash flows on contractual the business collect to model is company’s principal outstanding,the and paymentssolely of on its interest charge receivables. does not The company receivables. and Recognition measurement loan. the of provisions contractual the party to becomesa company the is recognised when receivables receivable and other Trade any. if transaction plus costs, value fair at recognition, initial at measured, are The receivables party related receivables the recognised on amortisedamount The the is cost amortised cost. at measured subsequently are They the maturity and amount between the initial difference any of repayments minus principal method interest using effective the initially, loss allowance. any adjusted for amount, Impairment of amount The amortised cost. lossesat measured all receivable on credit expected for lossallowance recognisesa The Company respective loans. the of recognition since initial risk changes in credit reporting each losses reflect to at date is updated credit expected haslossesthere ECL) when (lifetime credit expected lifetime to equal amount an at lossallowance measuresthe The Company since significantly increased has not receivable a on risk credit the If recognition. initial since risk increase in credit significant a been ECL Lifetime losses ECL). month (12 credit expected month 12 at loan is measured that for lossallowance the then recognition, initial 12 In contrast, loan. a of life expected the eventsall possible over default from will result lossesthat represents credit expected the 12 possible are within that loan eventsa on default from result to is expected that ECL represents lifetime portionthe ECL month of thereporting after months date. increase in significant a has been there not or whether words, in other ECL, 12-month or ECL lifetime apply to assess to whether In order occurring default a of risk the increase in significant a has been there considers whether company the recognition, since initial risk credit occurring. default actual an of reportingthe or date at impaired loan being credit a of evidence at than rather recognition since initial does Company the Therefore, in calculating ECLs. approach simplified a applies Company the assets, and contract receivables trade For The Company each reportingat ECLs date. based lossallowance on lifetime instead recognisesa but risk, changes in credit track not to specific forward-looking factors adjusted for is based loss on its experience, historicalthat credit matrix provision has establisheda environment. economic debtorsthe the and - - - orily at fair value through profit or loss. (This classification automatically applies to all debt instruments all debt do not which to applies automatically classification (This loss. or profit through value fair at orily orily at fair value through profit or loss; or or profit through value fair at orily orily at fair value through profit or loss. (This applies to contingent consideration in a business combination or to liabilito business or combination a in consideration contingent to applies (This loss. or profit through value fair at orily orily at fair value through profit or loss. or profit through value fair at orily ial liabilities: tised cost. (This category applies only when the contractual terms of the instrument give rise, on specified dates, to cashto specified dates, on instrument give rise, the of terms contractual the when applies only category (This tised cost. tised cost; or value through other comprehensive income. (This category applies only when the contractual terms of the instrument instrument the of terms contractual the when applies only (This category income. comprehensive other through value Curr truments); or signated at fair value through profit or loss. (This classification option can only be applied when it eliminates or significantly significantly eliminates or when it applied be only can (This classification option loss. or profit through value fair at signated signated as at fair value through other comprehensive income. (This designation is not available to equity instruments equity to which available designation (This is not income. comprehensive other through value fair at as signated signated at fair value through profit or loss. (This classification option can be applied when it eliminates or significantly reduces significantly eliminates or when it applied be can option classification (This loss. or profit through value fair at signated

ties which are held for trading); or trading); held for tiesare which Amor Fair Mandat De flows that are solely payments of principal and interest on principal, and where the instrument is held under a business model is held under the instrument and where on principal, and interest principal payments solely of are that flows cash flows); contractual or collect to holding instrument by the whose is met objective the in and where on principal, and interest principal payments solely of are that cash flows to dates, specified on give rise, are held for trading or which are contingent consideration in a business combination). a in consideration contingent are which trading or held for are an accounting mismatch; the liability forms part of a group of financial instruments managed on a fair value basis; or it forms part forms it basis; or value fair financial instruments a on of managed group a part of forms liability accountingthe an mismatch; loss). or profit through value fair at is designatedas contract entire the and containing derivative an embedded contract a of Mandat De reduces an accountingreduces mismatch). Mandat Financ Amor Mandat or income); comprehensive other through value fair at amortised or cost at as qualify De strument is held under a business model whose objective is achieved by both collecting contractual cash flows and sellingthe and business flows collectingcash both contractual achieved by model whose is a objective is held under strument ins convention in the marketplace. the in convention

ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR • • Financial assets which are debt instruments:assetsFinancial debt are which • Financial assetsFinancial instruments: equity are which • Financial instruments held by the company are classified in accordance with the provisions of IFRS 9 Financial Instruments. Instruments. 9 Financial IFRS of provisions the with classifiedaccordance are in Financial instruments company the by held as are follows: ,as applicable, the company adopted by which are the classification possibilities, Broadly, • FINANCIAL INSTRUMENTS FINANCIAL authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted at the the at substantially enacted are enacted or those that are laws amount used the rates to compute and tax The tax authorities. operatesand taxable generates reporting Company the income. countries where the in date All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchas way Regular basis. date trade assetssales financial a and derecognised recognised on are purchases of or way All regular Note 21 Financial instruments and risk management presents the financial instruments held by the company based on their presents basedtheir on financial instrumentsthe company 21 Financial management instruments the Note held by and risk classifications. specific assets frame established time regulation the by within of delivery require assetssales financial sales that purchases of are es or or or • • Derivatives which are not part of a hedging relationship: a part of not are Derivatives which • • • • The specific accounting policies for the classification, recognition and measurement of each type of financial instrument instrument financial type of each of and measurement recognition classification, the accounting policies for specific The presentedare below: company the held by assets. taxation the paid to to be from or expected recovered assets amount the income tax and ent liabilities at are measured CURRENT (...continued) INCOME TAX

200 203

Recognition and and Recognition measurement Financial Liabilities and Equity InstrumentsFinancial Liabilitiesand Equity into. arrangements entered contractual the substance of instruments the Financial liabilitiesand equity according classified to are payables. and other trade financial liabilitiesare Significant payables and other Trade amortised method rate using interest effective cost at the measured subsequently payables are and other trade Liabilities for to billed not or whether services and received, goods for future the be paid in to consideration the of value present the which is company. the Gains Financial Liabilitiesand Losses for amortisation the through as as well payable is derecognised loan or lossthe when Gains or and losses recognised in profit are process. instrumentsEquity issue costs direct . of instruments net Equity recorded are balances) of financial assetsOffsetting financial liabilities and (Interconnect reportedthe in amount the net and offset are charges interconnect to assets in relation Financial specifically and liabilities an is recognised amountsthere the and off set to legal right enforceable currently a is there when financial position of statement simultaneously. thesettle liability and realisethe asset or basis, a net settle on to intention ACCOUNTING POLICIES ACCOUNTING MARCH 31 ENDED YEAR 2019 THE FOR (...continued) INSTRUMENTS FINANCIAL receivables. the of provisions contractual the party to becomesa parties Receivables related Company from the recognised when are amortised cost. at measured subsequently are They any. if transaction plus costs, value fair at recognition, initial at measured, are They minus principal repayments method using interest effective the initially, receivable the recognised on amount amortised The the is cost loss allowance. any adjustedfor amount, the and maturity betweendifference the amount any initial of losses off and write credit expected of and recognition Measurement Impairment, impairment length” normal “arms the to subjected parties related receivables from not are receivables, and other trade other the Unlike and measurement issue the of accordingly and collection debt external reciavables, other and trade above on assesment explained provided amounts such immediately are all such instances, In transactions. losses disputed to relate unless credit they of recognition partiesall balances related from basedsince on history, casethe This is no resolution between parties reached. the in full if is not for terms. payment agreed the payments the occuringafter some of with albeit paid, eventualy are the into is factored money of value time the where ECL months 12 the to subjected been have due become past All balancesthat outstanding balances. carryingamount their to corresponding adjustment a loss with or all loans in profit loss is recognised for or gain An impairment in credit movement a lossas or lossadministrative expenses in is included in profit The impairment account. loss allowance a through 2). (note lossallowance Cashcash equivalentsand depositsterm an original short with and bank compriseat position financial cash of Cashstatement cash equivalentsand the in statement the purposethe of For amortised Cash cost. at equivalents carried and cash on hand are less. or months three of maturity outstanding overdrafts. of bank net and deposits, cash and cash equivalents of cash consist cashflows, of AssetsGains Financial and Losses for amortisation the through as as well impaired is derecognised or receivable lossthe when Gains or lossesand recognised in profit are process. ACCOUNTING POLICIES ACCOUNTING MARCH ENDED 31 YEAR 2019 THE FOR Classification have They amortised11). (note parties cost at assets related Receivables measured as financial classified from are subsequently payments solely are that flows cash datesspecified to on terms give rise, contractual becausetheir manner been classifiedthis in receivables. and other trade cash flows on contractual the business collect to model is company’s principal outstanding,the and of on its interest charge receivables. does not The Company Receivables from related partiesReceivables related from An impairment gain or loss is recognised for all loans in profit or loss with a corresponding adjustment to their carrying amount carryingamount their to corresponding adjustment a loss with or all loans in profit loss is recognised for or gain An impairment in movement a lossas or administrative loss expenses in is included in profit The impairment account. lossallowance a through 2). (note lossallowance credit The grouping is regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk risk credit similar share each to constituents continue the group ensure of to management The by reviewed grouping is regularly in ECL lifetime to equal amount an at instrument financial a for lossallowance the has measured company the If characteristics. met, no longer are ECL lifetime for conditions the reportingthat date current the reporting determines previous at the period but versa. vice and reporting the current date, at ECL 12-month equal to an amount measures the loss at allowance the company Measurement and recognition of expected credit losses credit expected of recognition and Measurement of magnitude the loss (i.e. given default default, of probability the of function lossesa is credit expected of The measurement lossand given default default of probability the assessmentThe of default. at exposure the and default) a is there lossthe if the is gross default at The exposure as described forward-looking above. adjustedinformation is based by on historical data basis in cases collective of evidence where a on is measured ECL Lifetime reportingthe date. at receivable the of carryingamount a such in compiled then Receivablesare level. instrument individual the at available yet not are risk increases in credit significant industry available), (if ratings credit external loan, the of as nature such characteristics, risk credit similar share they that manner counterparty etc. of The Company writes off a loan when there is information indicating that the counterparty is in severe financial difficulty and there there and financial difficulty severe counterpartythe is in that indicating is information there a loan when writes off The Company bankruptcy into has entered or liquidation counterpartythe has been placed under when e.g. recovery, of prospect is no realistic loss. or recognised in profit are write-offs to subsequent recoveries made Any proceedings. Write off policy Write external to handed over are they before procedures collection internal to subjected firstare receivables due past Procedurally, are loans the where Company the to these handed back are been exhausted, have avenues all Once collection. collectors for debt the directors. to off write for now recommended Definition of default of Definition is either there if has occurred event default a that consider company the purposes, management risk credit internal purposes of For counterpartythe is unlikely indicatesthat information external or internal if or counterparty, financial covenantsthe by of breach a considers company the analysis, above the Irrespective of account). taking into its collateral pay to creditors in full (without supportable and unless is reasonable due there 90 days past than is more loan instalment a when has occurred default that appropriate. is more criterion lagging more default a that demonstrate to information Irrespective of the outcome of the above assessment, the credit risk on a loan is always presumed to have increased significantly increased have presumedto always loan is a on risk credit the assessment, above the of outcome the of Irrespective since initial recognition if the contractual and has reasonable unless company the due, days past 30 than payments more are reportingthe at risk low credit assessed loan is a a have to if contrast, By demonstrates otherwise. that supportable information The Company recognition. since initial significantly increased loan has not the on risk credit the assumedthat is it then date, risk increase in credit significant a has been there whether to identify used the criteria monitors effectivenessthe of regularly before risk increases in credit significant identifying of capable are criteria the that ensure to appropriate as and revises them becomes due. past amount the FINANCIAL INSTRUMENTS (...continued) INSTRUMENTS FINANCIAL (...continued) risk increase in credit Significant

202 205 - - 2 77 33 79 70 221 185 681 2018 3 531 1 6 9 791 8 319 7 798 4 9 2 2 2 01 311 2 466 5 508 0 330 6 868 21 733 21 25 34 53 4 P’000 2 11 1 1 24 074 3 20 663 20 3 6 60 426 1 46 544 40 5 2 1 566 908

75 22 76 78 97 07 02 20 50 4 8 782 1 872 1 7 2019 1 8 2 189 2 278 5 9 4 5 599 11 3 9 548 11 7 6 866 10 312 3 0 880 41 597 31 386 31 2 P’000 79 730 79 32 496 32 56 2 25 686 2 1 11 5 2 2 11 36 281 0 4 4 1 448 224

erconnect EVENUE FROM CONTRACTS WITH CUSTOMERS Relates to adjustments to Customer Premises Equipment (PABX) and mobile postpaid (with handset device) as per IFRS IFRS as per device) and mobile postpaid handset (with (PABX) adjustments Premises Relatesto Equipment Customer to Data

Customer Premises Equipment (CPE) Premises Equipment Customer Short MessageShort Service (SMS) Fixed Data Usage Access Int * Total Operating Revenue Total Property rentals Mobile Voice * financing component Significant (CPE) Premises Equipment Customer Revenue Other services Directory Services Added Value works of Cost party feesThird collection

R Interconnect guidelines. 15 with method Contracts modified retrospective Revenue from Customersthe 15 with IFRS optingadopted has for BTC has The Company application. initial of the date at on equity recognized 15 applying IFRS initially of effect cumulative the loss. or profit of statement following the amountsthe recognised in revenue relatingto Fixed Voice Voice Access (CPE) Premises Equipment Customer * financing component Significant

1 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR

ACCOUNTING POLICIES ACCOUNTING FOR THE YEAR ENDED 31 MARCH ENDED 31 YEAR 2019 THE FOR Finance leases lower, if leasedthe property or, of value fair date inception the leaseat the of commencement the Finance leases capitalisedat are minimum leasethe payments. of value present the at Leases where the company retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. classifiedas operatingare leases. asset the ownershipand benefits of risks of the all substantially retains Leases company the where and recognised over leasedasset the of carrying coststhe amount to in negotiating direct an operating incurred added Initial leaseare basis over straight-line lossa on or Leaseas income in profit income is recognised same basesthe income. on leaseas rental term the earned. are they period in which the in as revenue recognised are rentals Contingent leaseterm. the Company as lessor Company Company as a lessee as a Company leasedthe item. and benefits ownershiprisks to the incidental all substantially of company the to Operatingtransfer leases do not leaseterm. the basis over straight-line lossa on or Operating leasean expense paymentsas in profit recognised are The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement and requires an and requires arrangement the substance lease of is basedthe on a contains or is, arrangement an whether of The determination assets arrangement the and or asset specific usethe of on is dependent arrangement the of fulfilment the whether assessment of to use the asset. right a conveys LEASES General provisions are recognised when the company has a present legal or constructive obligation as a result of a past event, event, past a of result a as constructive obligation legal or present a has company the General recognised when are provisions reliable a and the obligation resources settle to benefits embodyingan outflow of required willbe economic that is probable it taking into if, obligation present to is deemed a give riseto event past A obligation. the of amount the estimate can be made of exists reporting obligation present at date. a that not than likely is more it evidence, available the all of account PROVISIONS Management determines the amount of dividends to be distributed to the shareholders. Dividends shall be declared in respect of of in respect shall be declared Dividends shareholders. the to be distributed to dividends of amount determinesthe Management future strategy, investment Company, the of financial position period, operating period based financial each the the on results of The dividend will declared. are is recognised dividends when dividends pay to The liability factors. and other requirementscapital Act. Tax Income Botswana the under withholdingtaxesapplicable (7.5%) of be paid net DIVIDENDS A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing When expires. or cancelled is discharged or liability the under obligation the is derecognised when liability financial A an existing are liability terms of the or terms, different substantially on lender the from another by is replaced financial liability recognition the and original liability the of derecognition a as treated is modification or an exchange such modified, substantially loss. respective carryingthe or in amounts difference the recognisedand is in profit new liability, a of Derecognition of financial assets financial liabilitiesand of Derecognition transferred has and it expired have asset the flow from cash receive to right the when asset financial derecognisesa The Company material in full without cash flows received the to pay assumed an obligation has or asset the its cash flows from rights receive to and all the substantially risks has transferred the company and either arrangement pass through a party third under a to delay but asset the of and rewards risks the all substantially retained nor transferred has neither company the or asset the of rewards in continuing involvement a has Company the that extent the to recognised is only asset The asset. the of control transferred has asset.the FINANCIAL INSTRUMENTS (...continued) INSTRUMENTS FINANCIAL

204 207 - - 86 86 686 686 Other 25 25 686 25 686 25 6 25 686 25 686 (P’000) Revenue

) - - 872 872 872 872 872 872 CPE

1 1 1 1 3 3 3 3 (P’000

)

- - 076 076 076 076 076 076 076

cess Ac (P’000 281 281 281 281 Fixed Data

) - - age 548 548 548 548

9 9 9 9 Us (P’000 11 11 11 11 Network

) - - 720 720 720 720 720 720 CPE

11 11 11 11 (P’000

) - - 278 278 278 278 278 278

2 2 2 2 2 2 2 2 (P’000 Mobile erconnect erconnect Int

) - - es 732 732 732 732 732 732

work (P’000 445 445 445 445 Net Servic

FOR THE YEAR ENDED 31 MARCH ENDED 31 YEAR 2019 THE FOR

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES )

- -

CPE 449 449 449 449 449 449 449

85 319 319 1 (P’000 074 074 116 116 116 116

864 864 466 466 908

2018 8 7 2 1 P’000 1 24 46 544 5 566

) - - 880 880 880 880

0 0 0 0

(P’000 2 2 2 2

erconnect erconnect 232 232 637 637 397 397 289 289 455

Fixed Voice 900

2019 4 11 7 Int 81 33 P’000 1 4 4 448 50

)

- - es 983 983 983 983 983 983 hout Adoption hout

IFRS 15 (IAS 18) IFRS 15 72 72 72 72 of (P’000 3 3 3 3 Wit Servic Net

312 312 397 397 ted ted

730 730

289 289 224 496

work

2019 4 11 10 P’000 1 79 32 5 IFRS 15 4 4 448

1 As Repor

AND SERVICES

EVENUE FROM CONTRACTSEVENUE FROM (...continued) WITH CUSTOMERS Diasggregation of revenue fromDiasggregation with contracts customers: of Total Revenue from External Customers Total Mobile Revenue Other Services Other Revenue Fixed Data sources: Revenue from other services Directory

Year Ended 31 March 2019 (IFRS 15) Year service lines: products / Major contracts customers external with Revenue from rentals) services, addedd value services, (directory revenue Other recognition: revenue Timing of in time point a at transferred Products time services over and Products transferred The Company derives revenue from the transfer of goods and services over time and at a point in time in the following major product product followingthe in major time in point a at and time services and over goods of transfer the derives from revenue The Company recognition. revenue service linestimingand / products of major is disaggregated revenue by followingthe table, In service lines. and 18. IAS under Annual Report year’s presentationthe in last with been presented consistent comparatives have year The prior Contracts Customers:Revenue from with Revenue Voice Fixed

R CONTRACT COSTS recognises incremental the Company the as 15, IFRS of 94 paragraph as per expedient practical the applied has The Company costs obtaining of contracts as an expense amortisation as the when assetsCompany the incurred the period that of less. or year recognised is one otherwise would have 000. P1 279 was tax of net 15 IFRS The openingadjustments of application upon

FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES SALES OF GOODS SALES OF GOODS 1

206 209 )

13 31 31 42 313 3 331 331 351 767 615 615 227 227 518 672 681 681 166 166 166 675 675 432 091 091

452 452 453

455 569 569 288

8 083 083

908 0.70

000

7 2018 2018

7 9 3 1 1 2 7 3 21 1 21 1 2 7 0 9 5 1 1 1 1 10 0 1 P’000 P’000 56 16 34 88 2 21 273 3 ( 000

050

)

9 46 46 84 135 135 871 871 778 257 616 616 347 347 363 363 014 014 33 657 657

938 938

740 740 368 368 443 443 2 3 499 499 903 903 5.43

980

044

480

060 060

000

1 2 2019 2019

6 3 2 3 5 9 8 2 6 1 7 606 7 606 9 1 6 2 4 1 9 1 16 P’000 P’000 1 1 1 2 62 2 54 ( 2 7 2 2 16 000

050

EST INCOME EST Audit fees Audit Services Other NINGS PER SHARE ed capital - number of shares (note 12) shares (note of - number ed capital her operatingher expenses analysis is as follows: Miscellaneous expenses include the following: outsourced call centre costs, customs and freight, newspapersand periodicals. customsMiscellaneousand freight, expenses outsourced following: costs, the include call centre Earnings per share (Thebe) share Earnings per The shares). 1,050,000,000 2018: March (31 2019 March 31 at sharesas 1,050,000,000 stated capital of has The Company shareholding. 54.16% a with shareholder majority stillthe is Botswana of Government shares between reporting the ordinary potential shares or transactions involving ordinary been no other have There thesestatements. authorisationfinancial of and the date of date Audit remuneration Audit Directors fees-sitting allowance expensesDirectors fees-other Billing costs Consultancy gain Exchange Financial charges feesRadio Licence - BOCRA Operating lease charges - rentals Stationery Miscellaneous expenses* Property upkeep and entertainment Travel commission Dealer runningcosts Vehicle and water -electricity Utilities Licenses - system and software TOTAL *Miscellaneous expenses INTER EAR earnings and diluted basic for shareholder to ordinary attributable Profit share per Stat Ot O 14) income (note as recognised grant Development and equipment plant property, on disposal of Profit accounts and call deposits short-term from Interest

.4 2 3 THER INCOME 4 5 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR - 611 611 513 134 134 722 722 591 591 732 732 158 158 376 728 461 461

283 283 801 702 635 635 478 478 838 838 398 398 955 288

264 264

895

096 050

2018 2018 7 7 1 6 3 0 7 6 4 2 2 1 1 13 0 5 1 27 1 16 2 P’000 P’000 2 00 1 2 28 92 2 1 41 46 1 00 2 439 36 404 6

) )

161 161 215 215 518 199 199 374 374 332 332 919 257 616 616 279 567 567 353 765 765

263 263 893 345 487 829 349 349 001 962 962 740 740

820

468 468

450

3 2019 2019 7 1 2 3 3 7 6 0 2 6 4 9 1 ( 19 02 1 3 12 P’000 P’000 2 14 24 29 22 46 3 1 21 1 34 116 ( 57 386 4 33

trative expensestrative and distribution costs: TING COSTS Land and buildings-depreciation Assets-depreciationNetwork charge assetsAmortisation intangible of t of services of t and goods sold :

Cos OPERA Equipment and material costsand material Equipment (CPE) Premises Equipment Customer Installation of inventories of (up)/down Write sales directory of Cost cards prepaid of Cost phones of Cost License - BOCRA fee fees licence and other rentals segment Space services cost of and Total soldgoods software. computer to fees Licence relate rents. satelites entity the which to relates rentals segment Space Payment to International carriers operatorsand local International to (interconnection) Payment Depreciation Employee costs: Salaries and wages plans) (defined contribution and Pension fund contributions life group costsTraining costs Retrenchment employee costs related * Other loss or employee costs profit to charged Total equipment - Other Depreciation equipment Repairs - non-telecommunications and maintenance Administrative expensesTotal staff employee costs related aid expenses, include medical *Other welfare and staff uniforms Product marketing costs marketing Product Sponsorship Adminis Selling

2.1 2 2.3 2.2 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH ENDED 31 YEAR 2019 THE FOR

208 211 ) ) )

) )

312 312 815 815 378 378 283 283

771 296 035 895 584 820

095 450

068

otal 378 378

283 283

979 979 342 342

750 368 368

970

095

880

otal

5 8 1 32 T ( 1 P’000 9 18 ( 77 ( 1 ( P’000 ( 4 712 76 208 538 2 637 956

418

1 429

538 956 34

418 303 590 1 2

3 3 2 1 1 2 3 4

------t - - - - - al al 437 599 599 036 036 036 036

418 418 418 418

382

036 036 036 036

Cos

7 7 7 ork in ork P’000 47 02 02 ork in ork P’000 Capit 13 2 2 Capit 250 W 38 250 38 250 W 250 Progress Progress

) )

- - t 141 141 751 772 772 158 158

610 610 720 720

035

820 948 772 772 351

013 013 004 004 432 432

081 720 720

682 682 970

948 2 880 7

Cos

9 7

5 1 77 4 3 1 ( 1 P’000 ( 77 ( 21 2 ( P’000 53 88 80 33 16 02 90 258 1 80 & Other & Other 258 2 2 1 & Other & Other Equipment Equipment Plant

Plant

- - - - t - - 167 167 361 361 237 535 702

043 043

179 167 167 508 404 404

237

416 416

870 870 882 882 286

404 404 2 0

Cos work work

’000 2 0 work work P’000 9 92 23 00 Assets 22 14 P 72 53 1 1 Assets

572 14 5 1 672 049 53

265

2 672 845

Net

2 2 2 Net 2 2 2

)

- - - - 218 218 120 120 439 296 955 502 502 063 176

648 098 098 068 218 218 274 274 614 614 120 120

396 396

340

098 098

Land

2 5 6 0 8 5 Land 5 P’000 18 10 2 5 7 50 3 775 P’000 value ( 4 80 2 21 560 775 6 24 440 7 21 560 535 Fair & Buildings & Buildings

, PLANT AND EQUIPMENT AND EQUIPMENT PLANT , PROPERTY 2019 Measured at COST OR VALUATION year the beginning At of Additions Disposals year the end of At AND DEPRECIATION IMPAIRMENT year the beginning At of year the for charge Depreciation Disposals year the end of At NET BOOK VALUE year the beginning At of year the end of At 2018 COST OR VALUATION year the beginning At of Additions Disposals Revaluation year the end of At AND DEPRECIATION IMPAIRMENT year the beginning At of year the for charge Depreciation Disposals Revaluation year the end of At NET BOOK VALUE year the beginning At of year the end of At

7 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR ) ) ) ) ) )

- - 85 713 713 713 713 139 915 915 1 851 851

061 061 947 634 634 349 855

564 564

903

600 600 600 600

2018 1 3 21 21 47 4 4 ( 63 P’000 51 51 24 24 68 87 58 1 1 46 80 ( ( ( ( 2 (

) ) ) ) ) ) ) )

- - 28 712 712 277 277 1 361 154 154 232 232 641 641

652 652 764 634 502 502

498 498 498 498

606 ( 005

2019 3 2 3 9 9 1 ( 96 4 P’000 ( 51 27 56 27 34 25 25 90 1 28 ( ( ( ( (

AX RED TAX Accelerated depreciation for tax purposes tax for depreciation Accelerated Unrealised gain and buildings (OCI) land of Revaluation Unutilised scratch cards assets tax Deferred ASSET IN DEFERREDTAX MOVEMENT Opening balance and Loss in Profit Movement adjustment adoption 15 IFRS adjustment9 adoption IFRS income comprehensive in other Movement Closing balance 22%. of rate tax statutory the at computed were tax taxesAll income and deferred DEFER The components of income tax expense for the period ended are: period ended the expense for tax income The components of income Comprehensive of Statement expense Taxation tax Corporate taxationDeferred expense Taxation reconciliation rate Tax tax before Profit 22% at tax Company Non-taxable income expensesNon-deductible expense Taxation INCOME T

2 1 6.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH ENDED 31 YEAR 2019 THE FOR

210 213 311 311 176 176

792 792 283 283 343 343 236 236

075 075 968

otal

3 2 T 2 71 0 22 P’000 2 2 28 7 3 99 2 25 2

112 112 163 163

239 239 423 423 852 740 740

550 402 402

9 8 work work 1 2 0 21 P’000 07 6 6 89 16 126 1 1 Systems Net

er er 171 171

753 223 223 are 104 104 052 052 686 686 805

909 909

1 0 7 1 P’000 21 25 31 32 1 1 1 1 & Billing Softw Comput

(...continued) - Gross margins rate - Discount period forecast duringthe share - Market period forecast the cash flows beyond the rates extrapolate usedto - Growth ANGIBLE ASSETS ANGIBLE ASSETS AS Valuation key assumptions key Valuation a period over usedThe calculations flow projections cash in use. value based determined on was amount The recoverable years based five (5) on financial forecastsapplied. of was assumptionsKey usedvalue in use in sensitivity and calculations changes to in assumptions followingthe assumptions to sensitive in usevalue is most of The calculation Assumptions 13%) 2018: (March 13% 2019: (WACC) rate Discount information. sources of external as as well experience based rate on past this determined Management As at 31 March 2019, the Company assessed its property, plant and equipment and finite life intangible assets at the reportingthe assets intangible life and finite date at and equipment plant assessed Company the its property, 2019, March 31 at As assets recoverable the with corporation’s the of comparing carrying done by the This was amount impairment. of indication any for forecasting by calculated was turn, which in in use, value business’ basedthe was on amount The recoverable assets. the of amount discountingthesevalue by freeyears thendetermining the and five a period of for cash flows enterprise free future company’s the business The entire 13%). 2018: (March 13% of capital (WACC) of cost average the weighted to equal rate a discount flows usingcash services. all of production the elementssince common network responsibleare for (CGU) as one cash regarded was generating unit assets be unimpaired. to Company’s the determined 2019, March assessmentat The 31 March 2018 COST year the beginning At of Additions year the end of At AMORTISATION year the beginning At of year the Charge for year the end of At NET BOOK VALUE year the beginning At of year the end of At systems. network of the management for software to relates transfer *The systems category Network the under for licensesaccounted only are Followingtransfer, the INT

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR 9 IMPAIRMENT SET 8 )

- - 311 311 715 715

236 236 478 478 789 789

075 075 074 074 872 872 196 196 999 324 otal

2018 T 2 5 2 2 0 22 53 P’000 7 28 3 22 1 P’000 06 27 1 14 25 25 4 109 (

- ) 852 865 550 029

894 894 666 666 402 402

508) 489)

work work 2 2 4 P’000 1 23 35 6 89 324 592 592 126 268 268 1

153 2019 Systems 108 Net ( ( P’000 48 257 109 1 (

er er 223 223 are 333 333 478 478 895 686 686 508 489 045

850

909 909

8 7 2 1 P’000 25 53 32 06 1 08 40 1 1 1 392 25 1 1 & Billing Softw Comput

, PLANT AND EQUIPMENT (...continued) EQUIPMENT AND PLANT , ANGIBLE ASSETS 31 March 2019 COST year the beginning At of Additions Reclassification* period the end of At AMORTISATION year the beginning At of year the Charge for *Reclassification period the end of At NET BOOK VALUE year the beginning At of period the end of At INT Cost Cost Depreciation Carrying amount Land and buildings are carried at a revalued amount, which is the fair value at the date of the revaluation less any subsequent subsequent less the revaluation any the date of at value which is the fair amount, revalued a Land and buildings are carried at losses. impairment accumulated subsequent and depreciation accumulated and The count Associates. Kathurima Willy by performed 2018 and buildings was March land on 31 of The revaluation classesstandardised depreciation were appropriate and components asset the in Botswana, of possible, where valuation, 22. Note to refer disclosures, value fair For valuesapplied. and residual values remained the that determined and reassessed has valuation the management done in 2018, Following revaluation the 2019. March ended 31 year the for relevant Land and Buildings of Revaluation as follows: would be carryingthe amount model, using measured cost and buildings were the land If PROPERTY

8 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES FOR THE YEAR ENDED 31 MARCH ENDED 31 YEAR 2019 THE FOR 7

212 215

91 191 191 8 1 8 2018 2018 4 446 4 446 4 P’000 P’000 2 2

2019 2019 2 165 2 165 6 657 6 657 1 1 P’000 P’000

factors affecting the ability of thecustomers factors thesettle to affecting of the ability its receivables, trade of nature short the Given receivables. relevant the most to be inflation has identified Company the adjusted the historical and accordingly loss rates factor, basedthis. changes in on expected days receivables is 30 and other trade period on The credit on outstanding is charged No interest trade days). 30 (2018: receivables . and other and other trade all is recognised for lossallowance A Instruments, 9 Financial IFRS with accordance in receivables, In each reporting end of period. the at and is monitored are trade writtenreceivables the loss to allowance, addition for recovery, reasonable of is no expectation there off when liquidation. has been placed under debtor a when example, are receivables due past policy, credit company the As per processall collection until internal the to subjected first then handed are They are exhausted. avenues available balancesAny collections. collectors for debt external to over which at the company to back are returned uncollected off. write assessmentan is made for point loss the adopted, simplified approach the with In accordance lifetime the as is determined receivables trade on allowance These lifetime losses receivables. trade on credit expected losses estimated provisionare credit usingexpected a a is matrix The provision which is presented below. matrix, lossan expected applies model which probability-weighted experienced history write-off net basedthe on percentage, the at receivables of ageing each to category on receivables, provision total the calculate to in order each month end of also incorporates It balances. receivable be raisedthe to on lookingand economic forward information general the reporting as at date. the industry of conditions (...continued) AND OTHER RECEIVABLESAND OTHER (...continued) TRADE Contract assetsContract changesSignificant assets in the contract liabilities and the contract table The as follows. liabilities balancesare period assets duringthe contract the and contract the changes in Significant liabilities contract reporting forward carried to relates period current the recognised in revenue the shows how much of years. satisfied prior the in were performancethat to and how much relates obligations beginningthe at balance liability contract the included in was that Revenue recognised the period of unsatisfiedshows The following performancetable resulting obligations long from contracts: customer term transaction to the long allocated price contracts. term customer of amount Aggregate UNSATISFIED PERFORMANCEUNSATISFIED TERM IN LONG OBLIGATIONS CONTRACTS The table includes revenue expected to be recognisedto table includes expected The revenue are to performance related that in the future obligations reportingthe partially unsatisfied) date: unsatisfiedat (or contracts customers from with No consideration is excluded amounts the from presented above. (modified expedient practical the applies The Company discloseand does 15 not IFRS of 121 in paragraph approach) remaining performancethat about obligations information less. or year one of durations original expected have to repaidStaff advances up are andtwelve non are months receivables are Staff advances and other bearing. interest carryingvalue. their approximate which cost at carried Global connectivity from details on receivables Further been disclosed 20. in note have and WACS) projects (EASSy risk Exposure credit to credit to Company exposethe inherently receivables Trade financial will incur Company the that being risk the risk, fall due. paymentsthey as customers make lossto fail if to simplified approach 9 appliesIFRS the The Company lossesmeasuring lifetime which usescredit expected a measure To receivables. trade all for lossallowance expected been have receivables trade losses, credit expected the due. days past basedthe grouped on profiles payment loss basedthe ratesare The expected on before months 24 period of a paid customers post over of theand respectively April 2018 1 before or 2019 March 31 corresponding losses historical experienced within credit The historical reflect adjustedto loss ratesare period. this on macroeconomic and forward-looking information current

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR 11 )

------711 431 431 431

537 537 535 395 455

036 036 360 360

880 980

2018 4 4 4 365 2018 398 398 033 0 1 8 9 4

1 141 P’000 2018 94 P’000 7 ( 6 8 8 17 1 39 39 39 216 P’000 4 40

)

371 371 143 143 891 891 816 816

524 455 220 220 220

428 920 920 280

940 940 404

000

874

2019

916 678 2019 3 594 594 9

61 3 8

9 7

31 31 P’000 8 066 82 46 2019 84 21 21 P’000 3 21 940 3 1 1 4 09 1 4 4 149 P’000 50 5 ( 40 2

ORIES AND OTHER RECEIVABLESAND OTHER Comprising: Consumable stores premises equipment Customer value realisable and net cost of lower the inventoriesat Total value. realisable estimatedand net cost of lower the is disclosedat above inventory The receivables Trade partiesReceivables related from balances interconnect from receivables Trade assetsContract Staff advances & WACS) Receivables projects from (EASSy global connectivity receivables Other Debtors impairment receivables trade and other Net Prepayments use) of right (Indefeasible partyRelated prepayment receivables trade and other Total Comprising: receivables and other Trade assetsContract party related relatingto and conditions terms For bearing. non-interest are receivables and other trade The Company’s 90 day to 30 are receivables generally balancesand other interconnect from receivables Trade 20. Note to refer receivables, occurssettlement in cash. and unsecured free, interest terms, AssetsContract consideration before customer the to transferred has which control servicesassets and for recognisesgoods for contract BTC the periond of the coursethe of over paid for These but mobile handsetsassets to upfront relate provided mainly is due. reportingthe at billed not services but and rendered goods for consideration to right BTC’s to relate and primarily contract and other trade to assets transferred are The contract servicesand mobile devices. network contracts for customer for date the receivables when and other assets trade as reclassified are Contract rightsthe receivables when become unconditional. customer. the has billed becomesand BTC unconditional payment to right liabilities assets from and contract contract related revenue receivables, about The following table provides information contracts customers: with assetsContract Receivables’ and Other in ‘Trade included - Receivablesare which Current assets contracts long relatingto customer - Contract term Non-Current assets contract Total TRADE INVENT

10 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH ENDED 31 YEAR 2019 THE FOR 11

214 217 )

5 16 763 427 610 610 720 720 892 892 892 445

056 056 056

1 2018 2018 9 8 8 8 0 0 5 14 3 P’000 P’000 22 55 ( 1 116 3 47 47 47 36 36

)

- 373 915 915 892 892 892 683 683 683

056 056 065 850

2019 2019 8 8 8 7 19 0 P’000 P’000 38 3 ( 01 1 1 47 47 47 340 340 36

ed associations, partnerships, and investment funds (whether managed directly or by institutional institutional by or directly managed funds (whether and investment partnerships, associations, ed al Pension Funds managed by institutional investors institutional by al Pension Funds managed registered in Botswana; or ities (whether or not falling into categories ii, iii or iv above) which are wholly Citizen owned which manage manage owned which Citizen wholly are which above) iv iii or falling categories into ii, not or ities (whether ural persons who are citizens of Botswana of ural persons citizens are who y other entities operating in Botswana which are wholly Citizen owned; or owned; Citizen wholly are operating entities which in Botswana other y orporate entities registered or operating in Botswana which are wholly Citizen owned; or owned; Citizen wholly are operating which in Botswana registered entities orporate or rusts whose ultimate beneficiaries are all Botswana Citizens; or rusts Citizens; all Botswana beneficiaries whoseare ultimate investors or owned; Citizen registered wholly in Botswana)are which only. Citizens of benefit the funds for investment t Loc an ent nat c unincorporat

ATED CAPITAL ATED EVALUATION RESERVE EVALUATION b) b) d) f) g) a) a) c) e) Properties reserve revaluation year the beginning the at Balance of buildings and land for transfer Depreciation Revaluation during year the year the the end of at Balance reserves other Total Balance Balance Authorised shares value no par shares of ordinary ) 1,050,000,000 2018: (March 1,050,000,000 paid shares issued fully and Ordinary value no par shares of ordinary ) 1,050,000,000 2018: (March 1,050,000,000 as dividends receive to entitled sharesare ordinary the The holders of the at share vote per to one and are entitled time to time declared from Company. the of meetings ) share per thebe 11.09 (2017: share: per thebe 9.70 2018: Final dividend for share) Thebe per : 3.73 share:(2018 per thebe 3.53 2019 dividend for Interim Botswana the as per withholdingtax 7.5% of The dividend is paid net ST R BTC shares are only available to the the following: to available shares are only BTC Income Tax Act. Income Tax Authorised and issuedcapital sharesCash dividends on ordinary paid:

12 13 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR

)

- - - - - 711

843 885 669 669 742 742 347 347 997 997 otal 428 428 830 666 666

846

2018 2019 T 41 8 8 6 2 1 6 P’000 ( 41 P’000 17 P’000 94 20 1 49 1 expected expected (Lifetime redit loss) redit c s allowance

Los )

196 196 297 798 798 695 695

2 8 5 tively ( P’000 711 6 317 317 110 110 572 572

379 379 64

278 150 150

567 567 295 565 396 396

428 428

2 2019 2019 3 7 6 4 41 impaired 1 03 25 P’000 1 25 P’000 32 28 33 1 49 1 14 1 Collec t default t a

)

timated gross timated

515 Es 974 974 087 087 546

carrying amount

( 9 6 3 7 P’000 7 Impaired Individually

3% 71% 27% 74% 39% 70% Expected (average) credit loss rate credit AND OTHER RECEIVABLESAND OTHER (...continued) TRADE Current Current due days past 31-60 due days past 61-90 due past days 91-120 due past days 121-150 due days past 150 than More Opening in with balance accordance IAS 39 9 IFRS Adjustments of application upon openingAdjusted April 2018 in withaccordance IFRS 9 1 balance as at reciavables raisedtrade Provision on new year the the end of Balance at 000. 562 P3 was tax of 9 net IFRS adjustments of The application upon Bucketing due) (Days past Total loss allowance of Reconciliation (expected lossallowance the in movement the shows The followingtable receivables and other trade losses) for credit Reconciliation of provision for impairment of trade and other receivables and other trade of impairment for provision of Reconciliation year the beginning At of amounts Additional raised year Amounts utilised duringthe year the end of At During the year trade and other receivables amounting P10m were approved for write-off. This receivables which have been receivables This which have write-off. for approved were amounting receivables P10m and other trade year During the activities. enforcement to further subject are not written off disclosures risk Credit IAS 39. comparatives under for The been restated. not which have receivables and other trade for section provides information The following comparative Financial Instruments:and Measurement. Recognition 39 IAS with accordance in is provided information

11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES FOR THE YEAR ENDED 31 MARCH ENDED 31 YEAR 2019 THE FOR

216 219 )

- - - 381 273 654 654 654

690 404 404 440 otal 651

2018 4 T 2018 9 9 2 8 25 P’000 P’000 3 5 5 47 5 P’000 64 (

)

418 951 951 her 453 853 320

404

2019 1 7 Ot 15 4 14 P’000 P’000 2 36 ( 6 671 671 147

883 883

030

2019 9 2 17 P’000 20

)

273 951 568

890

1 4 atuity P’000 3 3 36 28 ( Gr

)

921 382 061

600 600

5 3 4 6 ( P’000 2 ve Pay 2 Lea

(...continued) PAYABLES AND OTHER OYEE RELATED PROVISIONS RELATED OYEE ilised Opening balance (April 2018) employee expensesto Charged to employees entitled are policy, BTC of terms In and other. gratuity pay, leave comprise provisions of Employee related less than not twelve months, (12) period of any of days earned in respect leave the Of vested benefits. leave accumulate This is earned. leave which of respect the period in after immediately months six than no later taken shall be days (8) eight casethe of which in contract an employee’s end of the at paid normally are Gratuities taken. not shall be forfeited if leave BTC is between 1 to 5 years. Interconnection balances relate to terminating charges owing on BTC outgoing calls to international operators and for other other operatorsand for international outgoingterminatingto charges calls owingto balances on BTC relate Interconnection payables and other accruals Included in secured. not are and term 30-90 day a settled These on are local mobile networks. P8,651,363). 2018: 055 (March amounting P9 671 to revenue mobile deferred the is EMPL Ut Closing 2019) (March balance Comprising: liabilities Current liabilities Non Current TRADE Contract LiabilitiesContract (continued) liabilitiesContract Current Non-Current liabilities contract - IFRS 15 Total revenue liabilities - deferred Contract

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR 16 15 )

- - - - 312 651 401 401 401 452 452 939

626 078 078 530 530 498 498

2018 2018 4 1 8 9 3 3 P’000 P’000 79 29 2 23 98 98 98 38 09 09 1 ( 1 1 1 1 1 1

)

671 671 223 739 739 657 657 657 754 754

078 368 368 025 025 025 025 053 865 083 083 083 405

030 030

2019 2019 9 5 9 9 2 2 2 6 P’000 P’000 29 2 36 22 58 88 88 09 20 20 1 ( 3 1 16 34 34

E AND OTHER PAYABLES AND OTHER E TRAD The cumulative grants received to end of March 2019 are P509,325,984 (March 2018: P509,325,984). These grantsare P509,325,984). 2018: (March P509,325,984 are 2019 March The cumulative grants end of to received for Plan 8 called the Development National expansion in rural districts of terms in funding Company’s the purpose of Nteletsa projects. which and equipment plant useful is based of the life on the year grantsThe portion as income duringthe recognised of above the was funded by grants. upgrade the Universalthe for AccessService Fund (USAF) with and reached was agreement an year, financial 2018 the In schools in ingovernment connectivity Broadband of and provision better 3G or stationsto base telecommunications the of end year at as been received had 865 237) (P2 which 33.3% of 318 is P8 604 receivable total The grant district. Ghanzi the agreement. as per grant Balance at the beginning of the year the beginning the at Balance of year the Additions for Receivable Recognised as year income during the year the end of at Balance Comprising: grant development portion of Current grant development portion of Non-Current DEVEL Trade payables and accrued expenses are non interest bearing and are normally settled on 30-60 day terms and are not not are and terms settled30-60 day on payables accrued expenses bearingand normally non are interest are and Trade secured. not are and months three of date settlement average an bearing payables non interest and have are Other secured. LiabilitiesContract transferred not have services that and goods for payment advance has received recognised when BTC liabilitiesare Contract customer customersfrom received consideration advance for the to relate liabilities primarily The contract customer. the to performance distinct obligations. servicescontracts not on are and which goods liabilities assets from and contract contract related receivables,revenue about The following table provides information contracts customers: with Trade payables Trade liabilities Contract revenue liabilities - deferred Contract balances Interconnection payables and other Accruals Comprising: payables and other Trade liabilities Contract UniversalAccess Fund and Service Nteletsa projects

15 14 GRANTS OPMENT NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES FOR THE YEAR ENDED 31 MARCH ENDED 31 YEAR 2019 THE FOR

218 221 - 911 757 757 757 724 724 279 279 632

268 268 456 284 469 469

004 004

9 2018 ’000 1 2 2 1 0 0 0 6 3 21 11 18 P 2 2 2 2 53 3

- 3 171 171 11 211 315 315

512

481 270 457 457

344 344 998 998 998 998

2019 ’000 1 1 5 1 11 9 9 9 85 P 53 38 1 1 1 4 1 6

TING LEASE COMMITMENTS-COMPANY AS LESSEE TING LEASE COMMITMENTS-COMPANY CAPIT OPERA Contracted but not paid not but Contracted contracted not Authorised but commitments capital Total These funds. grants development commitmentsand internally generated be financed by will minimum lease non-cancellable operating paymentsFuture leasesas follows: under payable are Operating leases year one than later not due Balance years five than later and not year one than later due Balance years five after due Balance AS LESSOR LEASE COMMITMENTS-COMPANY OPERATING operating non-cancellable minimum lease receivables under Future leases as are follows: Operating leases year one than later not due Balance years five than later and not year one than later due Balance years five after due Balance The majority parties. contractsthird serviceand maintenance with into has entered Company the above, the to addition In and been built premisessites on which network have of in respect are as lessor operatingthe leases company the with of annual basis with monthly Thesea payable on leases fixed rentals itsto comprise customers. of company the by sub-let period. notice one month a with annum generally per 10% to up escalations of

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR 18 COMMITMENTS AL 19 ) ) )

- 31 26 1 153 153 815 815

915 915 072 072 5 164 164 287 287 074 074

283 283 568 452 455 506

902 902

851)

100)

000

2018 6 2018

3 1 21 3 8 ( ( 32 P’000 16 63 P’000 83 2 25 1 29 24 15 1 24 2 ( 80 ( 4 ( 450 4

) ) ) )

- 91 30 712 712 8 1 226 226 230 230 657 657 467 456 750 019 368 368 246 999

154)

013) 606

072)

348)

(

2019

3 2 2 9 4 9 ( 3 P’000 96 P’000 36 17 12 29 76 ( ( 22 05 1 ( 23 1 ( ( 35 26 3 (

7 3 8 4 14 es Not

Facilities ating before profit working changes: capital Depreciation of property, plant and equipment plant property, of Depreciation assetsAmortisation intangible of and equipment plant property, on disposal of Profit income Interest Amortisation IRU of (IRU) partyRelated prepayment gain Exchange income as recognised grant Development in provisions Movement working before capital changes Operating profit Income tax Income tax cash and cash equivalents at end of year: the of end cash equivalentsand cash at For the purpose of the cash flow statement the working capital changes arising from trade and other receivables and trade receivables and the working and other arisingtrade changes capital from statement flow cash the purposethe of For year. the the beginning both and end of at receivable the interest cash effectsthe of account into payablestake and other Profit before tax before Profit cash movements: non for Adjustment ST Oper Net Opening balance 6.1) (Note year the for Charge on interest Withholdingtax Closing balance paid cash Net The Company has facilities with its bankers amounting to P15,000,000 (March 2018: P110,000,000) in respect of letters of letters of of in respect P110,000,000) 2018: (March has facilities itsamounting with P15,000,000 to The bankers Company The banking unsecured. facilitiesare and guarantees. credit the over the Company low utilisation by of account was on 2018, May from effect with year, current the in The reduction years. 2019. March 31 at as million banking P15 the to facilitiesamounted The unutilised portion of Cash at bank and on hand bank Cashat term depositsShort year the end of and cash equivalents cash at Net 1%). and 0.25% 2018: (March 1% and 0.25% between depositsThe call rates of interest had effective partya as counter a from received 000 which BTC USD 60 of equivalentsand cash amount cash an is the in Included certain bad debts. of payment the financial for guarantee Banking Net

FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR 17 OFCASHFLOWS ATEMENT NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES 17.2 17.1 17.3 17.4

220 223 872 872 872

000 000 000 000 000 000 000 000 825 825 826 826 999 999

2018 7 3 0 4 11 16 P’000 929 083 8 00 8 65 113

181 157 Total 1 2 2

220 872 220 872 e and ------02 213 415

2019 4 14 1 P’000 Fring other benefits other

------Bonus Performance 000 000

------1 863 1 863 - 000 000 000 000 000 000 000 000 000

7 3 0 Fees Remuneration 8 00 8 65 113 6 181 157 1 846 R Individually significant transactionssignificant Individually and WACS) projects (EASSY Connectivity Global of payments made on behalf which were for P9,455,478) 2018: (Mar P9,455,478 owes Botswana BTC of The Government is now leasing network basis arms length an on BTC use (IRU). of right procuring Indefeasible the towards Government the as per impaired has been fully amount the and The balance is disputed an operating on lease basis. Bofinet from capacity 24.18. IAS requirements of the Network) Fibre (Botswana BOFINET an IRU BTC and has offered infrastructure telecommunication international and national wholesale of a is provider BoFiNet P340 The lossaccount. or Profit the to million P34 of annual charge an yearsto translates which 10 worth P340 million for paid. million has been fully annual an translatingto P555 million for BoFiNet with agreement IRU year second15 a into entered BTC year, current the In years first the obtained 6 was over staggered P98 million of discount A lossaccount. or Profit the to million P37 of charge particular this firstthe IRU, Unlike in 2024. increasing P27million to in 2019 P17million to annual charge the reducing 300Gbps. of aggregate an to up capacity unlimited givesagreement BTC in stakes acquired has Government Botswana and internationally. services operators licensed nationally telco both BoFiNet BoFiNet. by managed are which submarine cables, and WACS EASSy the personnelmanagement Compensation key of benefits Short-term benefits Termination the Human Resource and Nominations Remuneration staff by is determined management key for The remuneration Committee. Company. the from pension entitlement receive do not Board the membersThe non-executive of Directors’ Interests (in Pula) (2019) director Emoluments per Anthony Masunga (Managing Director) Masunga Anthony Boakgomo-Ntakhwana Lorato LetshwitiMaclean PitsoChoice Serty Leburu Andrew Reginald Johnson Silva Priyalal De Ranjith Molomo Bafana Thari Pheko emoluments paid Total Director

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR 20 TRANSACTIONS (...continued) PARTY ELATED

789 789 976 384 360 360

2018 4 P’000 10 33 53 6

183 183 143 143 552 552

960 960

2019 1 Balance due Balance 12 6 P’000 46 33

111

573 573 462 462 620

2018 4 P’000 03 405 1 508 39

616 616 328 328 242 242

086

Revenue billed 2019 8 16 P’000 03 3 315 41 1

Government of Botswana Botswana of Government 167 General page to information Refer Masunga Anthony Aldrin Sivako Wicks Edward Abel Bogatsu Olyn Peter Lebudi Kgetse Same Kgosiemang Masoko Boitumelo Mmamotse Monageng Mganga Sidney Mosinyi Malebogo Nelson Disang Mokgosana Kutlo The sales to and purchases from related parties are the rendering or receiving of services between a party related to the the services to party sales between related receiving a and partiespurchasesThe rendering of to related the from or are Outstandingyear the balances pricingat the margin in applied. variable model a plus cost usesa In BTC general Company. any for received been noguarantees or provided have There occurssettlement cash. in and free interest unsecured, are end payables. partyrelated receivables or Social Investment Corporate Foundation BTC initiatives. Investment Social Corporate Company’s the and deliver coordinate to in 2014 Foundation established BTC the BTC to aligned are projectsthat community support to is main focus Their Trustees. of Board a is The Foundation by governed BTC review, under year During the arts sportsand culture. development; education, ; health, followingareas the focus an unexpended had foundation the 2019, March 31 at As P2,582,000). 2018: (March P2,219,475 Foundation the to donated P3 445 733. balance of cash R Sales and outstanding balances parties from related Botswana of Republic the of The Government Parastatals Purchases parties from related Parastatals transactions and conditions of partiesTerms with related Trading transactionsTrading basis: length arm’s The following partyan transactions on related were Relationships ownership 54.16% with Shareholder Directors of Board the Members of management Key Members of

20 TRANSACTIONS PARTY ELATED NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH ENDED 31 YEAR 2019 THE FOR

222 225

) ) ) )

- 37 60 672 778 778 525 525 722 722 722

315) 8 837 837

625 625 090 090

260 2

698)

2018 002) 2

Pula ( 2018

1 9 71 51 5 171 1 11 119 933 ( 29 ( 458

( 802 295 ( 941

2 ( 3 4 (

57 8 259 259 361)

873) 041) 865) 698)

2019

21 ) ) ) )

( 29 874 756

725 (

854 1

1 2 20 ( ( 2 254 254 824 824 920 9 998 998 998

(

( Pula Pula 2019 8 8 ( 39

2 239 2 248 ( (

,2735

1 0,1075 0,1075 1,2020 0,0875 0,0875 2018

3915 1,3915 1, 2019 0,0955 Exchange RatesExchange Currency in Foreign Amount 0,0850 0,0850 0,0900

eign Currencysensitivity analysis e Tax Profit/(Loss)e Tax Pr Curr For The Company is mainly exposed to the currencies of South Africa (Rand), the United States (US Dollar) and the European European the and Dollar) States (US United the (Rand), Africa South currenciesthe of exposedto is mainly The Company Union (Euro). foreign the relavant against increase and decrease the in Pula 10% a to sensitivity The following table details the Company’s personneland management key to internally when reporting risk rate sensitivity currency foreign the is 10% currencies. analysis sensitivity The rates. exchange in foreign possible change reasonably the assessment of represents management’s period end for the at translation adjustsand includes outstanding items only their monetary denominated currency foreign below indicatesan increase in profit. number positive A rates. currency in foreign change 10% a assets and liabilities. of analysis below impact combined The givesa decrease 10% Rand StatesUnited Dollar Euro Effect Net increase 10% Rand StatesUnited Dollar Euro Effect Net The Company undertakes certain transactions denominated in foreign currencies with international operators and other undertakes operatorsand other certain international currencies with The Company transactions in foreign denominated foreign the Company’s of The carrying amount arise. fluctuations rate exchange to exposure Hence, suppliers. foreign analysis below reporting (the the as follows assetsare date liabilitiesmonetary at denominated monetary and currency assets and liabilities): of combined impact givesa Currency Liabilities: AUD Rand Dollar US Euro Assets: Rand Dollar US Euro Position Combined Net cash and mainly end year at settled as be to yet were emanates liabilitiesthat exposure from risk currency The Company’s currencies. in foreign holdings denominated

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR 21.2 risk: ency 21.3

880 880 000 000 000 000 000 000 000 000 000

7 22 711 57 6

34 48 90 869 101 122 1 Total 201

3 2 e and ------206 880 206 880 206 Fring other benefits other

------Bonus 800 000 800 000 Performance 000 000

------1 863 1 863 -

000 000 000 000 000 000 000 000 000 000

7 22 Fees Remuneration 57 6 34 48 90 201 101 1 122 842 RISK MANAGEMENT ial risk management objectives management ial risk and policies Financ these raise financial liabilitiesto The main is purpose of payables. trade principal financial liabilitiesare The Company’s and and cash receivables assetstrade financial as various such has The Company operations. Company’s the finance for its from operations. arise which directly deposits, short-term and risk currency foreign risk, liquidity financial instruments risk, rate interest are arising Company’s the The main risks from summarised below. theseare which risks managingagreesand policies of each Directors reviews for of The Board risk. credit business. Company’s arisesthe normal coursethe in risk of and credit rate interest liquidity, currency, to Exposure FINANCIAL R Directors’ Interests (in Pula) (2018) director Emoluments per Anthony Masunga (Managing Director) Masunga Anthony Boakgomo-Ntakhwana Lorato LetshwitiMaclean Alan Boshwaen PitsoChoice Serty Leburu Tsheko Rejoice Gerald Nthebolan Andrew Reginald Johnson Silva Priyalal De Ranjith emoluments paid Total Director

21.1 21 20 TRANSACTIONS (...continued) PARTY ELATED NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH ENDED 31 YEAR 2019 THE FOR

224 227 131 131 131 110 517

519

568 036 036

506 606 606

7 2018 2018 6 21 8 21 7 4 6 P’000 P’000 P’000 1 17 25 14 66 216 216 42 ial assets

Financ t amortisedt cost a

272 816 226 230

2019 9 21 27 P’000 36 2 5 26

and interest management risk ial instruments designated at fair value through and loss profit fair ial instruments designated at ial assets pledged as collateral held or forming loans erest income and expense category instrument financial by Cr Financial assets exposures credit and other rated) (Not debtors parties including related those from Trade deposits call term Short Cash and bank their analysis gross trade at receivables of shows an age The below table 2018 March 31 at as value carrying Per and had not pledged any of itsassets financial of as collateral. any pledged and had not Liquidity associated liabilities. financial in meeting with difficulty obligations will encounter an entity that risk the is risk Liquidity Company’s the of management the for framework management risk liquidity appropriate an has built Management maintaining by is managed risk Liquidity requirements. funding management and long-term medium and liquidity short, cash actual and monitoring forecast continuously banking by facilitiesand reserve reserves, adequate borrowing facilities, assets financial and liabilities. profiles of and matchingthe maturity flows been drawn up basedtables The have itsassets. financial for maturity expected Company’s The followingthe table details cash flow the that anticipates company the assets financial where the except of maturities undiscounted contractual the on period. different a in will occur Past due but not impaired not but due Past Financ value held no financial instruments fair reportingthe Company designatedat the date At and loss (FVTPL). profit through Int 2019 income Interest interestNet income 2018 income Interest interestNet income Financ At the reporting date the Company neither held nor received financial assets financial received as collateral held nor neither reportingthe Company the date At

7 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR 21.4 Risk (...continued) edit 21. 21.5 21.6 21.8

alternative payment arrangements have been made, or if made, are not being adhered to by the customer;the by beingto adhered not are made, if or been made, arrangements have payment alternative ernative collection efforts (mainly through external debt collection agencies) have failed and; failed agencies) have collection efforts collection debt ernative external through (mainly he customer has not made any payment within 150 days from the date of invoice (at which stageamounts are which invoice (at of date the days from 150 within payment any made has not he customer amountshe in question disputed; are considered in full default), considered alt t t no

• • • • Cr On the above basis the expected credit loss for trade receivables as at 31 March 2019 and 1 April 2018 was determined as determined was April 2018 1 and 2019 March 31 at as receivables trade loss for credit expected the above basis the On 11. note per AssetsContract lossesarising no impairment are contracts customers from There with Cash & cash equivalents in department treasury Company’s the by is managed institutions and financial balances banks from with risk Credit on liquid funds counterpartiesis low becausethe commercial are risk The credit policy. Company’s the with accordance agencies. credit-rating international assigned by ratings high credit with banks risk credit of concentrations Significant Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet meet to fails instrument financial a counterpartyto or customer a if company the financial lossto of risk the is risk Credit its obligations. contractual receivables Trade as receivables trade all losses for credit recognising expected lifetime of simplified model 9 IFRS the applied The Company receivables trade the losses, In measuring credit expected the financing component. significant a have these do not items been based have grouped They characteristics. risk possess credit shared they assessedas been basis collective have a on due. on days past cognisance of taken has the Company receivables, trade losses of on write-off credit likely In determining level of the as well arrangements debtors, with processes collection settlement and delayed debt external historical from collections on have may inflation) indicators (specifically macro-economic of development future expected the which impact the as historical collection and default rates. 000. 428 P149 was provision ECL the 2019, March 31 At where; irrecoverable considered are receivables Trade The Company does have significant credit risk exposure to single counterparties or groups of counterparties having similar counterpartiessimilar single counterparties having of groups or to exposure risk credit significant does have The Company include this and entities related are they characteristics if defines counterpartiessimilar The Company as having characteristics. counterpartiesthese to counterparties of related groups or risk credit The etc. clients, Government clients, sectors Corporate such businesses counterpartiesagencies or the since Government are possessing limited ratings. is however high credit Below is the significant concentration of credit risk per counterparty: per risk credit of concentration significant the Below is P48,762,005.33) (2018: agencies: P29,035,492.87 Government 953) 946 P300 (2018: 025 761 depositsterm P204 institutions: financial Short with losses, impairment of which is net statements, assets financial the financial the in recorded of The carryingamount secure its to which with holds no collateral The Company risk. credit to maximum exposure represents Company’s the financial assets.

21.4 Risk edit NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES FOR THE YEAR ENDED 31 MARCH ENDED 31 YEAR 2019 THE FOR

226 229

) )

431 676 92 92 401 401 074 053

456 083 505 280 030

940

’000 ’000 4 245 245 2 9 value value P P 2 692 2 6 36 22 21 4 4 245 4 98 98 05 44 20 ( ( P’000 39 7 1 1 3 34 3 450 8 40 Fair Fair or theor year f

e tax profit/(loss)e tax rease / (decrease) Inc 431 in pr 676 401 401 074 053

456 083 505 280 030

940

2 9 P’000 P’000 36 22 21 98 98 05 44 20 39 1 1 7 3 34 3 450 8 40 -1% -1% +1% +1% Carrying amount Carrying amount

(...continued) RISK MANAGEMENT values erest rate risk erest rate FINANCIAL If the market interest rates had been 1% higher/lower and all other variables were held constant, the change in the the in change the variables held constant, were all other and rates1% higher/lower been had interest market the If table below: the reserves in shown and equity as be would profit Company’s 2019 risk Interest rate rate in interest Change rate in interest Change

2018 Int Fair Set out below is a comparison, by class, of the carrying amount and fair values of the Company’s financial instruments: Company’s the values of and fair carryingthe amount of class, by comparison, a below is out Set 2019 assetsFinancial receivables and other Trade assetsContract Cash equivalentscash and liabilitiesFinancial payables and other Trade liabilities Contract 2018 assetsFinancial receivables and other Trade Cash equivalentsand cash liabilitiesFinancial payables and other Trade trade payables and trade reciavables, deposits, term short cash and cash and value of assesedfair the Management that these instruments. of maturities term short the to carrying due amounts largely their liabilitiesapproximate current other

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR 21 21. 083 083 083

Total Total P’000 Total P’000 198 401 198 332,317 332,317 342 216,035 216,035 198 401 332,317 332,317 342 216,035 216,035 - - - - P’000 P’000 5+ years 5+ years 67,782 67,782 1 year 1 year 186,432 67,782 67,782 186,432 - - - - P’000 P’000 1 - 3 3 months to 1 - 5 years1 - 5 1 - 5 years1 - 5 42,775 42,775 42,775 80,736 80,736 80,736 80,736 - - - - P’000 P’000 to to 1 year to to 1 year 3 months 3 months 67,517 67,517 P’000 P’000 P’000 P’000 103,110 103,110 67,517 67,517 1 month months 083 083 1 - 3 083 1 - 3

Less than P’000 P’000 198 401 198 months 342 months 198 401 342 - - - - P’000 P’000 1 month 1 month Less than Less than and interest risk management (...continued) and interest management risk erest rate sensitivityerest rate analysis Financial LiabilitiesFinancial 2019 Trade and other payables and other Trade Financial LiabilitiesFinancial 2018 Trade and other payables and other Trade Liquidity Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes because will fluctuate a financial instrument cash flows of future of value fair the that risk the is risk rate Interest fixed depositsthe to rates relate interest changes in market of risk the to exposure The Company’s rates. interest in market 17.3. note to Refer institutions. and call deposits financial the with Company the in which enters fixed depositsinto financial institutions, Company with the risk, rate interest manage To specified intervals. at accrues interest reportingthe instruments financial ratesat interest to of exposure basedthe table below has been determined on The assets the the reporting analysis assuming of the is held at prepared amount assets, date was the variable rate For date. key to decrease is used internally when reporting1% increase or risk rate interest A year. outstanding whole the for rates. in interest possible change reasonably the personnelasssessment and represents of management management’s The Company maintains an overdraft facility with Standard Chartered Bank Botswana. At 31 March 2019, the Company had the Company 2019, 31 March At Botswana. Chartered Standard Bank with facility an overdraft maintains The Company P450 million) million (2018: P305 equivalentsand cash cash of Int

The table includes both interest and principal cash flows. and principal table includesThe interest both Financial Assets 2018 receivables and other Trade been drawn up tablesThe have its financial liabilities. of remaining maturity contractual Company’s The followingthe table details to pay. required can be the Company liabilities financial on which the earliest based date on discountedbased cash flows of the on 21.8 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH ENDED 31 YEAR 2019 THE FOR 2019 receivables other and Trade 21.9

228 231 715 715 401 401

892 663 663 056 056 064 064

10%

2018 8 0 P’000 98 98 223 1 1

47 261 062 1 36

2 2

392 392 967 967 892 683 683 083 083 083

050 16%

2019 8 2 2 P’000 261 47

34 34 340 423 080 1

2 2

REPORTING AFTER THE REPORTINGAFTER PERIOD AL RISK MANAGEMENT (...continued) RISK MANAGEMENT AL AL PROCEEDINGSAL AND PROCEDURES Mobile Financial Services of services (SMEGA)10th platform the on payment its electronic out rolled BTC Botswana, of Bank by Followingapproval 2019. May Dividends shareholders registeredthe all in to payable June 2019, on 21 share per thebe 5.73 of dividend a declared Board The BTC as withholdingtax 7.5% of dividend will be payable net 2019.The July business on 30 closethe of at Company the of books 2019. August 09 before on or Act Tax Income Botswana the requirements of the per Debt payables and other Trade debt Total Equity CapitalStated reserveRevaluation profitsAccumulated equity Total capital Total Gearing ratio deposits.term short lessand cash debt total and equity addingtotal is derived by capital Total normal coursethe legal in to proceedings of subject and is industry telecommunications operatesthe in The Company legalproceedings, threatened all pending final resultsthe or determine of or forecast to practicable is not While it business. on itsresults effect material and a will have (including proceedings such litigation) that believe does not management financial position. no are There all regulations. and has complied with regulations telecommunications to subject also is The Company regulations. such with compliance of lack or compliance Company’s the associated with contingencies In 2016, BTC refreshed its fixed, mobile and fixed mobile convergence strategy in order to bring synergy in its bringsynergy to business strategy in order and fixed mobile convergence mobile refreshed its fixed, BTC In 2016, resourcesshare including to human together businessand mobile fixed identifiable Both units brought were operations. integrated the given company the reported liabilitiesare an overall basis for on assets, operating expenses, Therefore capital. 1. in note as outlined basis the streams on revenue tracks Management business. company’s the of nature segments. no identifiable geographical therefore is There in Botswana. place take All operations EVENTS CAPIT SEGMENT LEG

23 24 26 25 NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH 31 ENDED YEAR 2019 THE FOR 34 592 120

meter 2018 P’000 560 per square per Average value value Average

s (level 3) ant unobservableant meters 209 163 209 340 566 424 566 input

2019 P’000 535 Total square Total Signific experience for similar properties insimilar experience for

To 65 2500 10 100 100 From Price range per square meter per Price range Pula Pula

cial (including certain urban network sites), light industrial and residential properties in the major urban and residential properties industrial major the in light cial (including certainsites), urban network work sites located outside of the major urban areas in Botswana.areas urban major the outsidesites located of work Commer Net areas in Botswana, and in Botswana, areas

AL RISK MANAGEMENT AL

1. 1. 2. Urban areas Rural areas The significant unobservable The significant inputsvaluation were: Land

F Land & Buildings 2018. March having been done on 31 valuation last the with intervals year performedare on 3 Revaluations The revalued land and buildings consist of: consist and buildings land The revalued rural)vs Management (urban location nature, basedthe on determined13, assets IFRS these one classthat under constitute of valuation propertiesthe using determined comparable market was the of value Fair property. specific the of and conditions performedvaluations by values based were on propertiesthe fair 2018, March on 31 revaluation of date the at As method. valuation years who has 25 valuer independent accredited an Associates, Kathurima Willy Botswana. Fair value measurement disclosures for revalued land and buildings are provided below: provided are and buildings land revalued disclosures for measurement value Fair Botswana. values remained the that and determined has reassessedvaluation the management done in 2018, Following revaluation the 2019. March ended 31 year the for relevant Assets measured at Fair Value Assets Fair measured at CAPIT Significant increases/(decreases) in estimated price per square meter in isolation would result in a significantly higher/ significantly a in in isolation would result increases/(decreases)square meter Significant in estimated per price value. (lower) fair been disclosed have assessment 2019 March done on 31 management/director the unobservable inputs for Significant above. valuestechniquesValuation used derive level 3 fair to and building buildings improvements land improvements, land, value usedto was method valuation market The comparable method. valuation market comparable the inputsas disclosed for are Valuation above areas. and land in rural areas in urban land improvements.the of cost replacement the basis of the on valued Rural land improvements were The Company manages its capital to ensure continuity as a going concern for the Company while at the same time the at while Company the goinga for as concern manages continuity its ensure to capital The Company access has The Company balances. and equity debt the optimisationthe of through shareholders’maximising return the The reportingthe date. at million) P110 (2018: million unusedtotal portion the amounting P12.3 to financingto facilities, maturing assets. financial of the proceeds operating from and cash flows obligations its other expects meet to Company reserves earnings. and retained capital, share payables, and other trade consists Company the of of structure The capital

22 HIERACHY AIR VALUE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FINANCIAL ANNUAL THE TO NOTES MARCH ENDED 31 YEAR 2019 THE FOR 23

230 233 % 1,12% 7,91% 0,11% 0,17% 3,16% 3,14% 1,02% 7,59% 1,69% 0,31% 3,79% 0,13% 0,12% 0,12% 0,12% 100% 100% 0,19% 0,18% 2,43% 0,14% 9,52% 3,96% 0,23% 0,83% 0,83% 0,43% 3,09% 0,25% 0,24% 0,56% 4,04% 0,20% 0,09% 0,40% 15,48% 34,01% shares 51,00% 51,00% 55,20% % of issued % of

Shares held Shares held 935 000 935 8 711 891 8 711 891 1 312 256 1 312 1 259 159 159 1 259 1 369 513 1 369 1 224 418 418 1 224 1 478 501 1 478 2 676 316 316 2 676 3 211 904 211 904 3 1 820 194 194 1 820 1 140 482 1 140 2 522 524 8 679 810 810 8 679 2 051 934 2 051 934 41 541 967 41 541 967 2 459 436 436 2 459 17 739 339 339 739 17 4 502 790 790 502 4 2 033 444 444 2 033 4 232 400 232 4 5 884 495 42 391 403 403 391 42 11 744 294 294 11 744 79 649 887 887 649 79 32 453 888 32 32 968 100 968 100 32 10 746 769 769 746 10 39 826 402 402 826 39 1 900 000 336 232 816 336 232 32,02% 83 088 089 088 089 83 357 101 529 529 101 357 25 465 802 25 465 802 33 230 800 230 33 162 580 264 580 264 162 579 640 100 640 100 579 535 500 000 535 500 000 1 050 000 000 1 050 000 000 % Shares held

1,15%

7,10% 9,73% 0,77% 0,10% 0,07% 0,02% 0,84% 0,00% 22,19%

99,02% 58,89%

% of holders% of Shares held

1 0,00% 800 33 230 3,16% 1 7 31 53 0,12%961 284 99 43

512 376 345 3 159 3 159 4 331 9 879 9 879 44 521 521 44 100% 44 521 100,00% 1 050 000 000 100% 26 220 44 084 Number Number Number Number

Shareholders of holders of

Shareholders

1-2,000

2,001-5,000

5,001-10,000 10,001- 50,000 10,001- LENTSWE 50,001-100,000

over 100,000,000 over 100,001- 500,000 100,001- 500,001 - 1,000,000 500,001

HFELD 1,000,000 - 100,000,000 1,000,000 BW (PTY) LTD RE: BPOPF EQUITY PORTFOLIO C - ALLAN GRAY - PORTFOLIO C RE: BPOPF EQUITY LTD (PTY) BW PTY) LTD RE:KGORI CAPITAL ALEXANDER FORBESALEXANDER RETIREMENT FUND CAPITAL RE:KGORI PTY) LTD

TSWANA NOMINEES (PTY) LTD RE:KGORI CAPITAL - AON PRESERVATION FUND PRESERVATION AON - CAPITAL RE:KGORI LTD (PTY) NOMINEES TSWANA RE:IAM BBDCSPF LTD (PTY) NOMINEES TSWANA TSWANA NOMINEES (PTY) LTD RE:BIFM BPOPF-EQUITY LTD (PTY) NOMINEES TSWANA RE:IAM BPOPF EQUITY LTD (PTY) NOMINEES TSWANA TSWANA NOMINEES (PTY) LTD RE: ALLANGRAY BPOPF EQUITY PORTFOLIO B PORTFOLIO BPOPF EQUITY ALLANGRAY RE: LTD (PTY) NOMINEES TSWANA BPOPF EQUITY RE:AA LTD (PTY) NOMINEES TSWANA UDDIN KADER ANYI CHARLESTIBONE TOR VEHICLE ACCIDENT FUND ACCIDENT VEHICLE TOR VERNMENT OF BOTSWANA - MINISTRY OF TRANSPORT & COMMUNICATIONS TRANSPORT OF - MINISTRY OF BOTSWANA VERNMENT TSWANA POLICE SAVINGS AND LOANS GUARANTEE SCHEME GUARANTEE AND LOANS POLICESAVINGS TSWANA ACCOUNT MAKER - MARKET HOLDINGS ASSET PRIVATISATION TSWANA ANBIC NOMINEES RE: BOTSWANA INSURANCE MANAGEMENT FUND RE: NOMINEES BOTSWANA ANBIC ANBIC NOMINEES BOTSWANA RE: INVESTEC DEBSWANA PENSION FUND DEBSWANA RE: INVESTEC BOTSWANA NOMINEES ANBIC Total Trusts shareholdersNon Public Category bodiesCorporate Nominees companies individuals Private THERS EGINAH DUMILANO SIKALESELE AITSENG DIRENG op 25 Shareholders AIZEL ISMAIL AIZEL AROUK ISMAIL AROUK B FNB BO JAMAL O FNB BO F R DITIRO CLEMENT MBIG ST SCBN(PTY)LTD RE:KGORI CAPITAL-STANDARD CHARTERED BANK BOTSWANA PENSION FUND CHARTERED BOTSWANA BANK CAPITAL-STANDARD RE:KGORI SCBN(PTY)LTD PENSION FUND RE DEBSWANA ALLAN GRAY SIMON HIRSC MO ST FNBBN ( FNB NOMS BO BO FNB BO F FNB BO FNB BO BOTSWANA PRIVATISATION ASSET HOLDINGS - GOVERNMENT OF BOTSWANA OF BOTSWANA - GOVERNMENT HOLDINGS ASSET PRIVATISATION BOTSWANA GO FNB BO T Share Analysis- OrdinaryAnalysis- Shareholders Share SHAREHOLDER ANALYSIS FOR THE YEAR ENDED 31 MARCH 31 ENDED YEAR 2019 THE FOR

232 235 3674400 /09/11/12 3674400 8.1 Mr. Ranjith Priyalal De Silva Priyalal De Ranjith Mr. 8.1 Serty Leburu Ms. 8.2 Molomo Bafana Mr. 8.3 NOTICE OF ANNUAL GENERAL MEETING GENERAL ANNUAL OF NOTICE Resolution No.5 Ordinary 6. auditors external of Re-appointment registered the independent as Committee, and Risk Audit the of recommendation the upon Young, & Ernst re-appoint To company. the auditors of Resolution No.6 Ordinary 7. auditors external of Remuneration 2019. March ended 31st year the auditors the for to paid remuneration the approve To Resolution No.7 Ordinary 8. Committee and Risk Audit the membersthe of of Re-election Risk and Audit the following the directorsas members nonexecutive of vote, separate of way by re-elect or appoint To Committee: which annualthe general meeting at the conclusion of from shall be effective re-election or The members’appointment Company. the annual meetinggeneral next of the resolutionthis is passed conclusion of the until report. annual the contained in are re-election or appointment offeringthemselves for each director CVs of in respect Brief Committee. and Risk Audit these directors the and to of re-election appointment The the Board recommends BUSINESS SPECIAL 1 Special Resolution No. 9. Capand 42:01 Act Companiesthe of 128 Section of terms in amendment without pass or with fit, thought if and, consider To March 31st ended year the for 148,000 P2, sum of the in Foundation BTC the to company the made by donations the ratify 2019. Business Other Any 10. the company. affairsthe business the and of of shareholders in respect by questions put any answer To meeting closethe To 11. and Proxies Voting and attend to the company) of a member be not (who need a proxy appoint may vote and attend to entitled member A Transfer the postedto or at be lodged must proxy a such appointing The instrument behalf. on his/her him/her for vote Company Securities Depository Central less 48than stated address not meeting. hours below the the before Secretariesat votes.postal and authorised to receive are count Botswana of Board the of Order By Secretary Company Secretaries Transfer Botswana of Company Securities Depository Central details: Contact Khupe personAmbrosia PhalatseContact : Nonofo or Gaborone Postal bag address: Private 00417, Proposed Fees per meeting Proposed Fees per P15,000 P10,000 P12,000 P10,000 Choice Pitso . Ranjith Priyalal De Silva Priyalal De Ranjith . Johnson Andrew . o consider and approve the remuneration paid to Non-Executive Directors for the year ended 31st March 2019 as 2019 March 31st ended year the Directors Non-Executive for to paid remuneration the approve and o consider table below: the in out set as ensuingyear the Directors Non- Executive for of proposed remuneration the approve o T Annual Report.the 121 of on page reflected T Mr Mr Ms.

5.2 5.1 4.2 4.3 4.1 Role Board ChairpersonBoard Member Board Sub-Committee Chairperson Sub-Committee Member NOTICE OF ANNUAL GENERAL MEETING GENERAL ANNUAL OF NOTICE 5. Ordinary Resolution No.4 Ordinary 5. directors non-executive of Remuneration Brief CVs in respect of each director offering themselves for re-election are contained in the annual report. annual the contained in are re-election offering themselves for each director CVs of in respect Brief these directors. of re-election the recommends The Board 4. Ordinary Resolution No.3 Ordinary 4. Company the directors of of Re - election Clause17.4.1 of terms in rotation by who retire company, the followingthe Directorsvote of separate of way by re-elect To re-election. themselves for offer being eligible, and, Constitution the of 3. Ordinary Resolution No.2 Ordinary 3. Dividends the Directorsand paid by the by declared was that share per thebe 9.26 dividend of total and final full a approve To Company. 2. Ordinary Resolution No.1 Ordinary 2. StatementsAnnual Financial and report Presentation of the with together 2019, March ended 31st year the Statements Financial for Audited the adopt and consider receive, To report. annual the contained in as Committee and Risk Audit the Auditorsand Reportof the of Report ORDINARY BUSINESS ORDINARY convening notice meeting. the the read To 1. Agenda: Notice is hereby given that the 2019 Annual General Meeting of Botswana Annual General Botswana Meeting of 2019 the that is hereby given Notice Fairgrounds Boipuso Hall, at be held will Limited Corporation Telecommunications transact to 09:00hrs, at 2019 September 23rd on Monday, Botswana Holdings Gaborone, followingthe business:

234 237 son of the Annual General Meeting may reject or accept any form of proxy not completed and/or received received and/or completed not proxy of form any accept or Annual General Meeting reject the may son of ion and lodging of this form will not preclude the relevant Shareholder from attending the from General MeetingShareholder relevant the preclude will not form this and lodgingion of Proxy must be lodged or posted to the Transfer Secretaries, Central Securities Depository Company of of Company Securities Depository Central Secretaries, Transfer the postedto or be lodged must Proxy e must be filled on this proxy form when it is signed. is when it form proxy this be filled on e must erialized shareholders, other than with “own name registration”, must NOT complete this form of proxy and must and must proxy of form this complete NOT must “own name registration”, with than other shareholders, erialized trument of proxy shall be valid for the Annual General Meeting as well as for any adjournment thereof, unless the thereof, adjournment any Annual General Meeting as for as well the for valid shall be proxy of trument e Ordinary Shares are held jointly, all Shareholders must sign. A minor must be assisted by his/her unlessassistedguardian be his/her must by minor A sign. Shareholders all must held Sharesare jointly, e Ordinary authority of a person signing the form of proxy under power of attorney or on behalf of a company must be must a company of on behalf or attorney of power under proxy personsigning of form a the of authority y alterations or corrections made to this form of proxy must be initialled by the signatory/ies. the by be initialled must proxy of form this to made corrections or alterations y shareholder’s instruction to the proxy must be indicated by the insertion of the relevant number of votes exercisable of number relevant the insertion the by be indicated of must proxy the to instruction shareholder’s Demat voting terms instructions in their with broker or CSDP their provide Forms of Gaborone bag Private 00417, Botswana, Wher contrary contrary is stated thereon. proxy. form of the to attached transfer been registeredthe with have documents or establishing produced relevant are the legal capacity his/her secretaries. An An ins The The dat The Chairper Shareholder the in which manner the satisfiedto as he/she is these with that notes accordance in provided than other concerned wishes vote. to and speaking and voting in person thereat to the exclusion of any proxy appointed thereof. in terms appointed proxy any speakingvoting and the exclusion and to in of person thereat The complet A The person whose name Annual General Meeting”. deleting the “Chairperson without of or with space provided the in the to as proxy act to shall be entitled been deleted and whose name has not proxy appears of form firstthe on those whose names follow. exclusion of A the authorize to will be deemed herewith comply to Failure space provided. appropriate the in Shareholder the by but votes exercisableShareholdersthereat, the of Generalthe in respect Meetingas he/she deems fit at vote to proxy the of in favour vote to proxy the authorize to will be deemed comply to failure Chairperson, the is proxy the where his/her by or Shareholder votesthe exercisable by the useall to is obliged proxy his/her or Shareholder A resolution. proxy.

11. 7. 8. 9. 10. 6. 5. 4. NOTES TO FORM PROXY OF TO NOTES 1. choice Shareholder’s the two proxies of alternative nameof the or proxy a nameof insertthe must Shareholder BTC 2. 3. Abstain Against For Agenda item No 2 item Agenda No 9 item Agenda ______Company to be held at Boipuso Hall, Fairgrounds, Gaborone on Monday 23 September 2019 at 09:00hrs and at any any at and 09:00hrs at 2019 September Gaborone 23 on Monday Fairgrounds, Boipuso Hall, at be held to Company the modification, without passing or with deemed fit, and if considering, purposethe of for thereof adjournment saidvoting abstain the as meeting. indicated in the resolutionfrom to be at considered resolutions and/or Ordinary resolution 1 Ordinary resolution 2Ordinary resolution 3Ordinary resolution 4Ordinary No 3 item Agenda resolution 5Ordinary 4 No item Agenda resolution 6Ordinary 5 No item Agenda resolution 7Ordinary No 6 item Agenda Special resolution 1 No 7 item Agenda No 8 item Agenda ______Of ______(Address) Telephone(work) ______appoint hereby shares, ordinary of ______number of holder a and BTC of shareholder beinga 1.______or failing him/her failing2.______or him/her Annual Generalthe Meeting the of at me/us for act to proxy annual /our The Chairperson meetinggeneral as my of 3. Please read the notes overleaf before completing form. this before notesthe Please overleaf read I/We______letters) (Name in block Only for use and completion by holders of Ordinary shares of BTC in certificated or dematerialized “own name registered” “own name dematerialized in certificated or BTC shares of Ordinary holdersby useand completion of for Only annualthe general attend to intention their of broker or CSDP the shareholders inform must dematerialized Other form. the that in order 09:00hrs, at 2019 September 23rd Gaborone on Monday, Fairgrounds, Boipuso Hall, at meeting be held to with broker or CSDP the provide or necessarythe attend, with to Representation issuethem Letters may of broker or CSDP annualthe general meetingattend to in person. wish not they should voting instructions their PROXY FORM PROXY Signature: Assisted by (where applicable): Assisted (where by Signature: representative capacity signinga in if signatory/ies Full names of persons more as one or a appoint to General Meeting is entitled at vote and attend to who is entitled shareholder Each Annual the need Generalso appointed Meetingthe and at proxy shareholder the vote in place of and speak attend to proxy reverse Pleaseside hereof the notes1 -11 on read company. the of member a be not Signed at: Date:

236

BTC

ABOUT BTC 10 Year History - Key Milestones 7 Our Mission 8 Our Vision 10 Our Values 12 Our Business Structure 14 High Level Organisational Structure 15

OUR PERFORMANCE SUMMARY Performance Highlights 20 Chairperson's Statement 22 Managing Director's Statement 28

BTC Store STRATEGIC PERFORMANCE REVIEW Strategic Themes 42 Strategic Focus To 2020 44 Strategic Performance Update 45 Footprint OUR OPERATIONAL PERFORMANCE REVIEW Kasane Commercial Unit Review 53 Technology Unit Review 59

Shakawe OUR SUSTAINABILITY REVIEW Board of Directors 66 Executive Management 72 Okavango Human Resourses 78 Delta Stakeholder Engagement Report 86 Maun Corporate Social Nata Investment Report 92

OUR GOVERNANCE

Francistown Corporate Governance 107 Makgadikgadi Orapa Compliance with the Salt Pans Ghanzi Letlhakane Corporate Governance Code 124 Risk Management Report 134 Selebi - Phikwe Mamuno Serowe OUR FINANCIAL REVIEW Palapye Compliance with the Financial Review and Mahalapye Management Discussion 143 Ten Year Review 146 Kang

ANNUAL FINANCIAL Lehutu STATEMENTS Molepolole Board Approval of the Mogoditshane Mochudi Annual Financial Kalahari Jwaneng Desert Gaborone Statements 166 Kanye General Information 167 Lobatse Independent Auditor’s Report 170 Statement of Profit or Loss and Other Comprehensive Tsabong Income 175 Statement of Financial Store location Position 177 Store opening soon Statement of Changes in Equity 178 Statement of Cash Flows 179 Accounting Policies 180 Notes to the Financials 205 Shareholder Analysis 232 Notice of AGM 233 Proxy Form 235 Notes to Proxy 236