Telkom SA SOC Limited
Integrated Report 2017
For the year ended 31 March 2017
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.
Considerations in preparing this report
We use the International
Integrated Reporting Council’s
(IIRC) Integrated Reporting
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.
Telkom South Africa SOC Ltd represents Telkom group, which comprises Telkom company (including the divisions Openserve, Telkom Consumer 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 to Telkom group as Telkom. In the context of our new operating model the term business units represent our divisions and subsidiaries.
This report is primarily prepared for our providers of financial capital and other stakeholders at large. It also serves as Telkom’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 and Telkom Consumer, 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 of Telkom 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 Telkom Audit 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.
Reporting suite
Our reporting suite, where they can be found online, our reporting frameworks, and a summary of the assurance of the reports, are outlined in the table below.
| Report | Framework | Assurance provider | ||||||
| Integrated report |
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|---|---|---|---|---|---|---|---|---|
| Consolidated annual financial statements* |
|
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| Human capital supplementary report |
|
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| Assurance statement |
|
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| King III checklist |
|
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| Annual results presentation |
|
|
* Included in the consolidated annual financial statements are the following reports: audit report, audit committee report, directors’ statement
and directors’ report.
Forward looking statements
Certain statements in this document may constitute forward looking statements. Such statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the group to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. The group undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document, or to reflect the occurrence of anticipated events. These were not reviewed or reported on by the group’s auditors.
The Telkom board acknowledges its responsibility for ensuring the integrity of this integrated report. The board confirms that it collectively reviewed the report’s contents and leveraged off the assurance obtained from our various internal and external assurance providers, including assessments on risk and internal controls.
The board is of the view that Telkom’s integrated report addresses key material matters to its stakeholders’ decision-making. The board approved the report on 3 July 2017.
JA Mabuza (chairman)
SL Botha
GW Dempster
KW Mzondeki
N Kapila
I Kgaboesele
K Kweyama
Dr H Touré
F Petersen-Lurie
RG Tomlinson
LL von Zeuner
SN Maseko (group chief
executive officer (GCEO))
DJ Fredericks (group chief
financial officer(GCFO))