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Engaging with our stakeholders

Telkom commits to open communication with its stakeholders and engages them on various matters. We strive to respond to stakeholder concerns appropriately and timeously, and to be transparent about how we address these concerns.

We are guided by our stakeholder engagement framework and policy in managing our stakeholder engagements. We structured our Stakeholder Management Programme around identifying stakeholders, engaging with them, understanding their challenges and expectations, and aligning them to Telkom's strategic and operational objectives and targets.

We engage with stakeholders regularly through appropriate channels.

In FY2023, we enhanced our stakeholder engagement framework to better respond to changes in our operating environment, while also considering industry-leading practices in stakeholder management. In FY2024, we planned to submit the framework for approval through our governance structures and update the Group's stakeholder engagement management policy accordingly. However, we were hampered by capacity constraints and have revised our timelines to complete this process in FY2025.

Monitoring and reporting

We assess the effectiveness of stakeholder engagements and relations by linking KPIs to value creation and relationship quality. Proper assessment of stakeholder relationships allows management to channel time and effort into relationships that are relatively weak.

In FY2024, we focused on the below stakeholder matters:

  • Customers | Strategy alignment across the Group to ensure customer experience is a key priority across the customer journey and value chain
  • Employees and organised labour | We focused on initiatives supporting employee experience, collaboration, innovation, performance, and training and development
  • Suppliers | Implemented ESG assessments for suppliers

Our stakeholder groups

We unpack our top six stakeholder groups below, based on the material impact they can have on Telkom's value creation process.

Relationship quality

No existing relationship

Relationship established but significant work needed to improve it

Relationship established and value created with room for improvement

Good relationship with some room for improvement

Strong relationship exists

Man with a phone
Customers

Relationship quality

Basis of assessment: Self-assessment, NPS and surveys conducted

Customers underpin our existence and drive our reputation and brand. They consume the products and services from which we generate revenue. Their requirements guide product and service development in relation to new trends. Refer to the business unit performance sections in the Productive capital chapter.

Their interests, needs and expectations

  • A relationship of trust and transparency
  • Reliable, affordable, and value-rich products and services
  • Solutions that support cost management
  • Timeous resolution of complaints and issues
  • Effortless transactions
  • Secure information
  • Education on how they can derive the most value from our offerings

How we responded in FY2024

  • Continually reviewed product portfolios to ensure our products are relatively affordable and market-responsive
  • Extended product ranges in response to market needs, e.g. WhatsApp and TikTok bundles for the mass and youth segments and best-in-class unlimited offerings for the high-value segments
  • Implemented POPIA-compliant direct marketing guidelines
  • Openserve Connect app to simplify customer interactions, and proactive notifications to customers on relevant matters

Overarching value created for our customers

  • Offered our customers the most compelling product and service value propositions on the market to accommodate their budget constraints in a tough economic environment
  • By providing connectivity, we enabled them to improve their lives and grow their businesses

In FY2025 we will prioritise

  • Improving the customer experience
Quality and affordable products and services across South Africa...
Government
and
regulators

Relationship quality

Basis of assessment: Self-assessment

Government, Parliament and regulators (through policies, laws and regulations) impact the cost of doing business, as well as our ability to derive a reasonable return on investment and create value for our stakeholders.

Regulators issue critical licences, such as those necessary to provide electronic communications services and networks and to use radio frequency spectrum. Regulators also monitor retail tariffs, set call termination rates, impose social obligations, allocate numbers, and prescribe various fees payable by licensees. Non-compliance with laws and regulations can result in penalties and fines.

Their interests, needs and expectations

  • A relationship of trust and transparency
  • Compliance to policies, laws and regulations
  • Quality and affordable products and services across South Africa
  • Effective competition in the market
  • Confidence of capital providers in the market
  • Economic transformation and social impact, job creation, productivity

How we responded in FY2024

  • Continued to engage with policymakers, regulators and the market to ensure the above expectations are met

Overarching value created for government and regulators

  • Contributed to the fiscus through financial contributions such as tax payments, licence fees and contributions to the Universal Service and Access Agency of South Africa
  • Enabled the government's social and economic development mandate through investment in networks and infrastructure
  • Helped shape government policies through robust engagement with regulatory agencies such as ICASA and the competition authorities and participation in industry forums
  • Supported local procurement and employment and value-adding corporate social initiatives

In FY2025 we will prioritise

  • Continuing to collaborate with the government and other regulatory bodies as necessary to maintain robust engagement and ensure ongoing communication and co-operation
Investor
community

Relationship quality

Basis of assessment: Self-assessment perception study

The investor community enables access to equity and debt markets. It drives demand for Telkom shares and debt securities, impacting our market capitalisation and debt issuance capacity. Also refer to the Leadership reflections.

Their interests, needs and expectations

  • Long-term sustainable return on investment
  • Stabilisation of debt levels
  • A relationship of trust and transparency, and access to management
  • Clearly articulated investment case
  • Improved ESG disclosures and tracking performance against goals set

How we responded in FY2024

  • Management engaged with investors and analysts at financial results roadshows, conferences, and on an ad hoc basis
  • Management engaged with the investment community on the Swiftnet disposal deal roadshow to drive shareholder approval for a Swiftnet transaction
  • Board Chair and Remuneration Chair engaged with shareholders at the roadshows
  • Continued to provide progress on our ESG targets
  • Simplified and improved the disclosure of ESG strategy
  • Conducted a perception study to receive feedback and identify areas for improvement

Overarching value created for investors

  • Improved understanding of Telkom's investment case to enable informed investment decisions
  • Telkom aims to provide a sustainable return on investments through dividend payments, share price appreciation, capital and interest payments on bonds, and interest repayments on loans

In FY2025 we will prioritise

  • Enhancing communication of our strategy and business objectives to current and potential investors to deepen their understanding of our business model
  • Continuing to prioritise in-person engagement with investors to strengthen relationships. Exploring innovative ways to maximise investor engagement, leveraging technology for broader participation
  • Continuing to improve our reporting practices to provide comprehensive information on ESG matters, reflecting our dedication to sustainability
Employees

Relationship quality

Basis of assessment: Employee engagement survey

Employees are strategic partners essential for ensuring Telkom's sustainability through their performance, culture, and skills. Employees possess the intellectual capital required for all core and supporting business processes, making them integral contributors to the Group's success and wellbeing. Also refer to the Human capital chapter.

Their interests, needs and expectations

  • A relationship of trust and transparency
  • Frequent communication and engagement
  • Job security
  • Fair remuneration and recognition and reward for performance
  • Learning and development
  • A non-discriminatory and safe work environment

How we responded in FY2024

  • Facilitated regular meetings and virtual gatherings to keep employees informed about news and initiatives. Utilised diverse communication channels, including email, newsletters and intranet, to share information effectively
  • Offered diverse learning opportunities, e.g. part-time bursaries, tailored development programmes, online learning resources, internships, and leadership initiatives
  • Integrated individual career development plans into the performance management process to foster talent and professional growth
  • Assessed and reviewed the wage gap, focusing on gender and ethnicity, to ensure equity within the workforce

Overarching value created for employees

  • Offered competitive market-related packages with various benefits to enhance value for employees. Benefits included company cellphones, rebates on Telkom services, and flexible death and disability benefits through a bespoke retirement fund
  • The Telkom Retirement Fund assists employees with retirement planning and preparation
  • The Telkom Wellness Programme provides comprehensive employee wellness assistance, including psychological counselling and legal advice, for employees and their families

In FY2025 we will prioritise

  • Continuing to engage with employees on the strategy to ensure alignment and accountabilities through the performance management process, creating an engagement framework for the employee voice
Organised
labour

Relationship quality

Basis of assessment: Self-assessment

Telkom has established a recognition agreement with the Alliance of Communication Workers Union (CWU) and South African Communications Union (SACU) for all Company employees at job levels M/S6 and below. The Alliance serves as a strategic partner. It plays a significant role in fostering shared value between Telkom and its employees, advancing the Group's strategic plans, and ensuring operational efficiencies and objectives are met.

Interests, needs and expectations

  • A relationship of trust and transparency
  • Proactive consultation on business changes that impact employees
  • A stable workforce and business stability
  • Continuous commitment to skills development, especially considering new technologies and employment equity regulations
  • Avoiding retrenchments and, where unavoidable, minimising the number of impacted employees
  • Considering the impact of retrenchments and outsourcing agreements on employment and terms and conditions of employment

How we responded in FY2024

  • Continued with engagement forums between Telkom and unions/alliances

Overarching value created for organised labour

  • Employees are allowed to exercise their right to freedom of association
  • Unions are given access to the workforce and we provide support for shop stewards
  • Facilitated fee deductions

In FY2025 we will prioritise

  • Conducting performance management workshops
  • Facilitating quarterly employee relations workshops between HR business partners, promoters and employees
  • Training pools of internal disciplinary inquiry chairpersons and initiators
Suppliers
and business
partners

Relationship quality

Basis of assessment: Self-assessments and supplier surveys

Our value-adding partnerships with suppliers and business partners allow us to deliver high-quality products and services. Suppliers underpin our value chain and directly influence raw material and other input costs. Suppliers and business partners often represent Telkom to customers and can impact our ability to meet customers' demands and expectations. Also refer to the Social and relationship chapter.

Their interests, needs and expectations

  • Increased effective and open two-way communication
  • Joint contractual obligation management
  • Performance visibility and feedback
  • Adherence to payment terms
  • Simplification of business transactions

How we responded in FY2024

  • Conducted regular monthly and quarterly reviews with suppliers to ensure alignment and strengthen partnerships
  • Evaluated partnership performance and revenue monthly to identify opportunities for growth and improvement
  • Tracked adherence to payment terms monthly to ensure consistency and compliance with agreements
  • Implemented ESG assessments for suppliers
  • Hosted supplier days focusing on operational and transactional aspects such as purchase orders, invoicing, procurement process enhancement, and implementation of digitalisation and automation

Overarching value created for suppliers and business partners

  • Suppliers and business partners generate revenue through supplying their products and services to Telkom at fair terms
  • Telkom provides a platform for partners, suppliers, and service providers to market their products, and strengthens their brands through association with and/or accreditation by Telkom
  • We provide training and support to our subcontractors where necessary
  • Our enterprise and supplier development (ESD) and transformation programmes (FutureMakers) support local procurement as far as possible. We also support local employment by supporting and developing local contractors

In FY2025 we will prioritise

  • Driving the Procurement Sustainability Programme
  • Driving efficiencies in the procurement value chain

Our communities are at the centre of our social licence to operate and host some of our infrastructure. It is imperative that we understand our communities' needs and perspectives, and work collaboratively with them on sustainable solutions to their challenges. Refer to the Social and relationship chapter for more information.

The media, opinion makers and influencers drive reputation and brand perception. We provide information and context on technical, financial performance and operational developments, and thought leadership on matters affecting our industry. Refer to information on our brands in the Intellectual capital chapter.

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