We prepared this report for our providers of financial capital and other stakeholders and used the <IR> Framework to compile it.
The report shows the connections between our material themes, strategy, governance, performance and prospects. It addresses our divisions and our subsidiaries (business units), unless otherwise stated.
This integrated report (the report) covers the financial year 1 April 2023 to 31 March 2024 (FY2024 or the year) and includes significant subsequent events up to the report’s approval date. In the report, “the short term” refers to the next financial year (ending 31 March 2025), “the medium term” to the period to 31 March 2027 and “the long term” to beyond March 2027.
The reporting boundary covers Telkom SA SOC Ltd, which represents Telkom Group (Telkom or the Group), which comprises Telkom Company and its subsidiaries.
Telkom Company comprises the Corporate Centre and a division, Telkom Consumer. Telkom Group’s operating subsidiaries are Openserve, BCX, Swiftnet and Gyro. These divisions and subsidiaries form Telkom’s business units.
Our integrated reporting processes, as set out below, reflect our integrated thinking
Integrated reporting project team
The investor relations team, led by the GCFO, is
responsible for compiling the integrated report.
This team, with assistance from external experts,
provides guidance on reporting approach and
content and ensures the report adheres to the
<IR> Framework and other adopted reporting
standards and frameworks.
Materiality determination process
and material themes approval
Our Group Executive Committee (Exco) and
Board of Directors (the Board) annually review
and approve material themes that guide the
preparation of the integrated report.
Content contributors
Contributors from various functions and subject
matter experts produce the report's content.
The Group executives from various functions
and departments oversee this process and ensure
that controls are applied in information gathering
and drafting.
The content creation process includes interviews with selected Board and Exco Members, internal and external sources of trusted information used for decision-making, and extracts from other reports in the reporting suite.
The Exco is accountable to the Board for preparing the integrated report. It reviews the reporting suite prior to submission to the Board subcommittees (Audit, Risk, Social and Ethics, and Remuneration Committees) for review and discussion.
The subcommittees recommend the reports to the Board, which provides final approval and sign-off.
The report is made available online on publication date, and printed copies are distributed to various stakeholders.
This report focuses on material matters. These are matters that materially affect our ability to achieve our strategy and create value over the short (one year) medium (two to three years) and long term (more than three years) and that have the potential to erode value for providers of financial capital and other stakeholders.
We consider internal and external factors, relying on established processes, to identify and confirm our material themes. This process is set out below:
We identify relevant matters based on their potential to affect our ability to create value over the short, medium and long term.
Our purpose, vision, values, strategy and strategic risks
The external operating environment’s impact on our value creation
Key global and local sectoral trends and peer benchmarking
Our stakeholders’ expectations and concerns
Board and subcommittee key discussions
Evaluating the importance of relevant matters in terms of their known or potential effect on value creation and prioritising the matters based on their relative importance.
During a workshop, Exco Members reviewed and prioritised material themes based on their impact on Telkom’s creation of value in the short, medium or long term
Exco and the Board continually review the material themes and approve them annually. The Board approved the material themes for FY2024 in July 2024.
In addition to this process disclosure, we provide details on each of the following material themes here.
MM1Regulatory environment
MM2Competitive landscape
MM3Customer expectations and experiences
MM4Cyberthreats
MM5Economic climate
MM6Future-ready skills and expertise
MM7Networks and digital technologies
MM8Climate resilience
To ensure the integrity of information in this report, the Group follow a Combined assurance approach. This approach integrates our internal audit function, known as Telkom Group Internal Audit (TGIA), with other independent assurers and risk management activities. TGIA assessed the completeness and accuracy of strategic, non-financial KPIs presented in this report.
Certain financial information included in this report is derived from our Company and Group consolidated annual financial statements. PricewaterhouseCoopers Inc (PwC) independently audited the consolidated annual financial statements and issued an unmodified audit opinion.
Independent external assurance provider IBIS
ESG Consulting Africa (Pty) Ltd (IBIS) provided
moderate assurance over selected non-financial
indicators. Assured non-financial indicators are
indicated with this icon
. Refer to IBIS’s FY2024
statement of assurance, available online.
We aim to provide our stakeholders with transparent, relevant and integrated information to enable them to make better-informed decisions about Telkom.
Many of the statements in this document, and verbal statements that may be made by Telkom or Officers, Directors or employees acting on Telkom’s behalf, constitute or are based on forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results or achievements to be materially different from our future results, performance or achievements expressed or implied by such forward-looking statements.
Telkom cautions readers not to place undue reliance on these forward-looking statements. All written and verbal forward-looking statements attributable to Telkom, or persons acting on Telkom’s behalf, are qualified in their entirety by these cautionary statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this document so that they conform either to the actual results or to changes in our expectations.
Any forecast financial information contained in this report has not been reviewed or reported on by our external auditors.
