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An overview of our business
Our report’s basis
of preparation
Our 2017 integrated
report aims to provide
our stakeholders with
insight on how we
create value through our
strategy, governance
and performance
and provide a view of
our prospects.
To keep our report
concise, we focus on
material themes that
substantively affect our
ability to create value for
our stakeholders.
This report is primarily prepared for our providers of financial capital and
other stakeholders at large. It also serves asTelkom’s communication
on progress to the United Nations Global Compact in terms of human
rights, labour, the environment, and our anti-corruption efforts.
Reporting scope and boundary
This report covers the period 1 April 2016 to 31 March 2017.
It addresses our divisions, Openserve andTelkomConsumer, and
our subsidiaries, BCX and Trudon, unless otherwise stated. Effective
from 1 April 2017, we formed a wholly owned subsidiary, Gyro, that is
responsible for managing our masts and towers, as well as property
development and property management services on behalf of the
group. This new subsidiary is included in our group operating structure
on page 13.
For the purpose of assurance of non-financial indicators, Trudon has
been excluded on the basis of immateriality. The external assurance
focused on the South African operations ofTelkom company and BCX.
It must be noted that BCX is made up of numerous small companies that
we are gradually incorporating on our journey towards full disclosure.
Refer to page 96 for full disclosure of the findings by an independent
assurer.
Material matters determination process
We define our material matters as the factors that will substantively
affect our ability to create value for our stakeholders over time.
Refer to page 53 for our material themes and how we respond to them.
Our process to determine material themes is on page 40.
Combined assurance
We adopted a combined assurance approach, which coordinates
TelkomAudit Services (TAS), other independent assurers and risk
management activities across the group. Refer to page 102 for
details of our combined assurance approach. Our integrated report
was reviewed and approved by the executive committee (exco), audit
committee and the board.
Ernst & Young Inc (EY) and Nkonki Inc are joint external auditors who
provided assurance over our consolidated annual financial statements
and expressed an unqualified opinion (refer to page 10 of the
consolidated annual financial statements) available online.
IBIS ESG Assurance provided assurance over certain non-financial
indicators relating to the sustainability elements of the report (refer
to the assurance statement) available online. Assured indicators are
indicated with this icon throughout the report.
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Considerations in
preparing this report
We use the International
Integrated Reporting Council’s
(IIRC) Integrated Reporting
<IR> Framework as well as the
United Nations Global Reporting
Initiative G4 Sustainability
Reporting Guidelines in compiling
this report. This report shows
the connection between our
strategy, material themes,
governance, performance and
prospects. We apply the lens
of the six capitals to ensure we
provide a balanced view of our
value creation. We renamed
manufactured capital to
productive capital.
In response to our stakeholders’
feedback, we introduced a
strategy section in the report
(page 60), articulating our
new operating model which is
effective from 1 April 2017.
TelkomSouth Africa SOC Ltd representsTelkomgroup, which comprisesTelkom company
(including the divisions Openserve,TelkomConsumer and Enterprise which was subsequently
integrated with BCX in November 2016) and its subsidiaries, BCX, Trudon and Gyro. Refer to
page 13 for our operating structure.
In the report we refer toTelkomgroup asTelkom. In the context of our new operating model the
term business units represent our divisions and subsidiaries.
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40
96