Results of the Telkom Annual General Meeting regarding directors re-appointments

On 27 August 2019, the following Board members were elected or re-elected as per the Annual General Meeting ordinary resolutions:

• KA Rayner
• SP Sibisi
• SL Botha
• KT Kweyama
• KW Mzondeki
• F Peterson-Cook

Dividends

The Telkom Board declared an ordinary dividend of 249.40 cents per share on 27 May 2019, paid on 18 June 2019 to shareholders registered at the close of business on 14 June 2019.

The Telkom Board also declared an ordinary dividend of 71.53 cents per share on 8 November 2019 which was paid on 2 December 2019 to shareholders registered at the close of business on 29 November 2019.

Allocation of shares in terms of the Telkom Employee Share Plan

On 24 May 2019, the Board approved the seventh allocation of shares to employees in terms of its Employee Share Plan.

The number of shares to vest will depend on the extent to which the performance conditions are met at the end of the applicable vesting period.

Vesting of shares

In terms of the Telkom Share Plan, 112 368 shares vested to Mr Sipho Maseko in June 2019.

Resignation of non-executive director

Telkom announced on 26 July 2019 that Mr Graham Dempster, a non-executive director, would be resigning from the Telkom Board with effect from 30 November 2019.

Appointment of non-executive director

Telkom announced on 15 July 2019 that Mr Keith Rayner has been appointed to the Board of directors of the Company as an independent non-executive director with effect from 15 July 2019.

Impact of COVID-19

On 11 March 2020, the World Health Organisation declared the novel coronavirus (COVID-19) outbreak a global pandemic which subsequently resulted in the President of South Africa declaring a national state of disaster on 15 March 2020, with many measures implemented by the government, such as travel restrictions. On 23 March 2020, the President of South Africa announced a national 21-day lockdown starting on 26 March 2020. South Africa is still in the early stages of the pandemic and, as such, the full impact of the pandemic on the economy and Telkom’s operations will only be known over time.

The Group has assessed the potential impact, including the impact of the pandemic on Telkom’s performance and liquidity in the short to medium term. The going concern assumption, as adopted in the preparation of the annual financial statements, remains applicable.

The Group will continue to monitor its position as more data becomes available and as circumstances change.