Independent auditor's report

To the shareholders of Telkom SA SOC Limited

Report on the audit of the consolidated and separate financial statements

Our opinion

In our opinion, the consolidated and separate financial statements present fairly, in all material respects, the consolidated and separate financial position of Telkom SA SOC Limited (the Company) and its subsidiaries (together the Group) as at 31 March 2026, and its consolidated and separate financial performance and consolidated and separate cash flows for the year then ended in accordance with IFRS Accounting Standards and the requirements of the Companies Act of South Africa.

What we have audited

Telkom SA SOC Limited's consolidated and separate financial statements set out on pages 17 to 130 comprise:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated and separate financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the Independent Regulatory Board for Auditors' Code of Professional Conduct for Registered Auditors (IRBA Code), as applicable to audits of financial statements of public interest entities, and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards).

Our audit approach

Overview

Final materiality

Consolidated financial statements: R444.77 million which represents 1% of consolidated revenue.
Separate financial statements: R326.62 million which represents 1% of revenue.

Group audit scope

We performed full-scope audits on three components that were considered significant due to risk and/or size.
Specified procedures were also performed on one non-significant component.

Key audit matter

Recognition and measurement of revenue in terms of IFRS 15: Revenue from Contracts with Customers

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated and separate financial statements. In particular, we considered where the Directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

In terms of the IRBA Rule on Enhanced Auditor Reporting for the Audit of Financial Statements of Public Interest Entities, published in Government Gazette Number 49309 dated 15 September 2023 (EAR Rule), we report final materiality and group audit scope below.

Final materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the consolidated and separate financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated and separate financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the final materiality for the consolidated and separate financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the consolidated and separate financial statements as a whole.

	Consolidated financial statements	Separate financial statements
Final materiality	R444.77 million	R326.62 million
How we determined it	1% of consolidated revenue.	1% of revenue.
Rationale for the materiality benchmark applied	We chose consolidated revenue, because in our view, it is the benchmark against which the performance of the Group is most commonly measured by users when profitability fluctuates year on year. Consolidated revenue is considered to be a key objective and focus of the Group's businesses and a key performance indicator for management and investors. We chose 1% as the benchmark threshold, based on our professional judgement, which is the quantitative materiality threshold that we would typically apply when using consolidated revenue to compute materiality. In making this determination, we took into account various factors, including the intended users and distribution of the financial statements, and the financial covenants over the Group's debt.	We chose revenue, because in our view, it is the benchmark against which the performance of the Company is most commonly measured by users when profitability fluctuates year on year. Revenue is considered to be a key objective and focus of the Company's business and a key performance indicator for management and investors. We chose 1% as the benchmark threshold, based on our professional judgement, which is the quantitative materiality threshold that we would typically apply when using revenue to compute materiality. In making this determination, we took into account various factors, including the intended users and distribution of the financial statements, and the financial covenants over the Company's debt.

Consolidated financial statements

Separate financial statements

Final materiality

R444.77 million

R326.62 million

How we determined it

1% of consolidated revenue.

1% of revenue.

Rationale for the materiality benchmark applied

We chose consolidated revenue, because in our view, it is the benchmark against which the performance of the Group is most commonly measured by users when profitability fluctuates year on year.

Consolidated revenue is considered to be a key objective and focus of the Group's businesses and a key performance indicator for management and investors.

We chose 1% as the benchmark threshold, based on our professional judgement, which is the quantitative materiality threshold that we would typically apply when using consolidated revenue to compute materiality. In making this determination, we took into account various factors, including the intended users and distribution of the financial statements, and the financial covenants over the Group's debt.

We chose revenue, because in our view, it is the benchmark against which the performance of the Company is most commonly measured by users when profitability fluctuates year on year.

Revenue is considered to be a key objective and focus of the Company's business and a key performance indicator for management and investors.

We chose 1% as the benchmark threshold, based on our professional judgement, which is the quantitative materiality threshold that we would typically apply when using revenue to compute materiality. In making this determination, we took into account various factors, including the intended users and distribution of the financial statements, and the financial covenants over the Company's debt.

Group audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

We considered the Group's organization or legal structure and its financial reporting processes when identifying components for purposes of planning and performing audit procedures. The Group comprises of the Company and its controlled entities (each considered to be a "component" for purposes of our group audit scope).

Our scoping assessment included consideration of the Group's significant components, due to risk and/or size, and the sufficiency of work performed over the material financial statement line items within the consolidated financial statements. We have determined three components to be significant, one component to be non-significant and seven components to be inconsequential to the Group.

We performed full-scope audits on three components that were considered significant due to risk and/or size. We also performed specified procedures on one non-significant component.

In establishing the overall approach to the group audit, we determined the type of work that was needed to be performed by us, as the group engagement team, and by component auditors, in order to issue our audit opinion on the consolidated financial statements of the Group. Where the work was performed by component auditors, we determined the level of involvement we needed to have in the audit work at those components to be able to conclude whether sufficient appropriate audit evidence had been obtained as a basis for our opinion on the consolidated financial statements as a whole.

We issued group audit instructions to the component auditors, outlining key aspects such as risk assessment, materiality, and scope. We held meetings with the auditors from the significant components. During these meetings we discussed our group instructions, developments relevant to the component, audit execution, significant risks, findings of their procedures and other matters that could be of relevance to the consolidated financial statements.

We assessed the competence, knowledge and experience of the component auditors and evaluated the procedures performed on the significant audit areas to assess the adequacy thereof in pursuit of our audit opinion on the consolidated financial statements.

Further audit procedures were also performed by the group audit engagement team, including substantive procedures over the consolidation process. The work performed at a component level, and the procedures performed at the group level, provided us with sufficient evidence to express an opinion on the consolidated financial statements as a whole.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

In terms of ISA 701 Communicating key audit matters in the independent auditor's report / the EAR Rule (as applicable), we are required to report key audit matters and the outcome of audit procedures or key observations with respect to the key audit matters, and these are included below.

Key audit matter	How our audit addressed the key audit matter
Recognition and measurement of revenue in terms of IFRS 15: Revenue from Contracts with Customers This key audit matter relates to both the consolidated and separate financial statements. The Group's revenue is derived from three segments. This key audit matter specifically addresses the following revenue streams within these segments: Telkom Consumer: mobile and fixed-line telecommunication services (disclosed within voice and data revenue), customer premises equipment ("CPE") and interest revenue (relating to the significant financing component recognised); BCX: fixed-line telecommunication services (disclosed within voice and data revenue), CPE related services, information technology ("IT") services and IT hardware and software revenue; and Openserve: fixed-line telecommunication services (disclosed within data revenue). In respect of the Company, this key audit matter addresses the revenue streams that are aligned with the Telkom Consumer segment above, as Telkom Consumer is a division of the Company. We considered the recognition and measurement of the above revenue streams for the Group and Company to be a matter of most significance to our audit because of the following factors: The magnitude of revenue recognised from the above revenue streams in relation to the consolidated and separate financial statements; The diversity of the Group and Company's revenue streams each with distinct recognition criteria under IFRS 15: Revenue from Contracts with Customers ("IFRS 15"); In relation to revenue from fixed-line and mobile telecommunication services, the high volume of transactions processed through multiple interconnected IT systems that manage customer orders and sales (order management), manage vouchers and facilitate recharging, provision customers and services on the relevant systems (provisioning), manage network usage (mediation), charge customers (rating and billing), and the recording of revenue and deferred revenue in the general ledger; and The significant accounting judgements, estimates and assumptions applied in revenue recognition and measurement, specifically the: determination of stand-alone selling prices used to allocate the transaction prices for bundled arrangements; assessment of whether a significant financing component exists in customer contracts; principal versus agent considerations in relation to software and related licenses, cloud services and vendor resold services; and identification of distinct performance obligations in accordance with IFRS 15. Refer to the following notes to the financial statements for the disclosures as it relates to this key audit matter: Note 3.1 - Segment information; and Note 3.2 - Revenue.	Our audit addressed this key audit matter as follows: Obtained an understanding of management's process and controls over recognising and measuring revenue by performing an end-to-end revenue processes walkthrough for each related revenue stream. Evaluated the appropriateness of the Group and Company's revenue recognition accounting policies, including the significant accounting judgements and estimates applied, against the requirements of IFRS 15. We did not identify any material exceptions when performing these procedures. Telkom Consumer and BCX With respect to mobile and fixed-line telecommunication services, and with the involvement of our IT specialists where relevant, we performed sample testing over: The operating effectiveness of IT general controls over the relevant revenue systems; Independent test calls and data events (simulated transactions) to evidence that the amount charged, benefit given and validity period provided to subscribers were consistent with the approved price plans; The operating effectiveness of controls over the transfer of call and data usage records from the mediation system to the billing system; The rating of calls against approved prices; and The system interfaces between the relevant revenue systems and the general ledger. We did not identify any material exceptions when performing these procedures. Telkom Consumer Selected a sample of revenue transactions and assessed the validity of each transaction to supporting documentation. Identified the distinct performance obligations in accordance with IFRS 15 with reference to the agreement with the customer. Agreed the stand-alone selling price against the standard price list at which the Group sells these products on a stand-alone basis. Determined the transaction price and recalculated its allocation to the performance obligations identified based on their relative stand-alone selling prices, including, where relevant the significant financing component. Agreed the transaction price allocation journals passed by management to align revenue recognition with the requirements of IFRS 15, to the underlying transaction price allocation calculation. Selected a sample of voucher sales transactions and agreed these to supporting payment information. In respect of deferred revenue recognised, we: Recalculated the valuation of a sample of deferred revenue balances outstanding as at year‑end by multiplying the units outstanding by the applicable rate; and Reperformed management's calculation of the deferred revenue balance and compared this to the balance per the general ledger. We did not identify any material exceptions when performing these procedures. BCX Selected a sample of revenue transactions and assessed, in line with the requirements of IFRS 15, that the arrangements with customers were valid, that performance obligations were agreed with the customer and that revenue was appropriately measured, recognised and allocated to its relevant performance obligations. For a sample of revenue transactions, we assessed the reasonableness of management's determination of whether the Group is the principal or agent, in accordance with IFRS 15, by: inspecting the underlying contractual agreements and/or purchase orders between the Group and the end-customers to identify the performance obligations and to assess whether the Group obtains control of the goods and services before providing them to the end customer, with reference to the terms of the contractual agreements; and assessing whether the sale of the software and licences is integral to the functionality of the related hardware sold by the Group. We did not identify any material exceptions when performing these procedures. Openserve With respect to fixed-line telecommunication services and with the involvement of our IT specialists, where relevant, we performed sample testing over: The operating effectiveness of IT general controls over the relevant revenue systems; The operating effectiveness of controls over the provisioning of data services based on customer orders; and The operating effectiveness of controls over the accuracy of billing based on customer orders In addition, we: Selected a sample of revenue transactions and assessed, in line with the requirements of IFRS 15, that the arrangements with customers were valid, that performance obligations were agreed with the customer and that revenue was appropriately recognised and allocated to its relevant performance obligations. Recalculated the valuation of a sample of deferred revenue balances outstanding as at year-end by assessing the remaining contractual period over which the revenue should be deferred. We did not identify any material exceptions when performing these procedures.

Key audit matter

How our audit addressed the key audit matter

Recognition and measurement of revenue in terms of IFRS 15: Revenue from Contracts with Customers

This key audit matter relates to both the consolidated and separate financial statements.

The Group's revenue is derived from three segments. This key audit matter specifically addresses the following revenue streams within these segments:

Telkom Consumer: mobile and fixed-line telecommunication services (disclosed within voice and data revenue), customer premises equipment ("CPE") and interest revenue (relating to the significant financing component recognised);
BCX: fixed-line telecommunication services (disclosed within voice and data revenue), CPE related services, information technology ("IT") services and IT hardware and software revenue; and
Openserve: fixed-line telecommunication services (disclosed within data revenue).

In respect of the Company, this key audit matter addresses the revenue streams that are aligned with the Telkom Consumer segment above, as Telkom Consumer is a division of the Company.

We considered the recognition and measurement of the above revenue streams for the Group and Company to be a matter of most significance to our audit because of the following factors:

The magnitude of revenue recognised from the above revenue streams in relation to the consolidated and separate financial statements;
The diversity of the Group and Company's revenue streams each with distinct recognition criteria under IFRS 15: Revenue from Contracts with Customers ("IFRS 15");
In relation to revenue from fixed-line and mobile telecommunication services, the high volume of transactions processed through multiple interconnected IT systems that manage customer orders and sales (order management), manage vouchers and facilitate recharging, provision customers and services on the relevant systems (provisioning), manage network usage (mediation), charge customers (rating and billing), and the recording of revenue and deferred revenue in the general ledger; and
The significant accounting judgements, estimates and assumptions applied in revenue recognition and measurement, specifically the:
- determination of stand-alone selling prices used to allocate the transaction prices for bundled arrangements;
- assessment of whether a significant financing component exists in customer contracts;
- principal versus agent considerations in relation to software and related licenses, cloud services and vendor resold services; and
- identification of distinct performance obligations in accordance with IFRS 15.

Refer to the following notes to the financial statements for the disclosures as it relates to this key audit matter:

Note 3.1 - Segment information; and
Note 3.2 - Revenue.

Our audit addressed this key audit matter as follows:

Obtained an understanding of management's process and controls over recognising and measuring revenue by performing an end-to-end revenue processes walkthrough for each related revenue stream.
Evaluated the appropriateness of the Group and Company's revenue recognition accounting policies, including the significant accounting judgements and estimates applied, against the requirements of IFRS 15. We did not identify any material exceptions when performing these procedures.

Telkom Consumer and BCX

With respect to mobile and fixed-line telecommunication services, and with the involvement of our IT specialists where relevant, we performed sample testing over:

The operating effectiveness of IT general controls over the relevant revenue systems;
Independent test calls and data events (simulated transactions) to evidence that the amount charged, benefit given and validity period provided to subscribers were consistent with the approved price plans;
The operating effectiveness of controls over the transfer of call and data usage records from the mediation system to the billing system;
The rating of calls against approved prices; and
The system interfaces between the relevant revenue systems and the general ledger.

We did not identify any material exceptions when performing these procedures.

Telkom Consumer

Selected a sample of revenue transactions and assessed the validity of each transaction to supporting documentation.
Identified the distinct performance obligations in accordance with IFRS 15 with reference to the agreement with the customer.
Agreed the stand-alone selling price against the standard price list at which the Group sells these products on a stand-alone basis.
Determined the transaction price and recalculated its allocation to the performance obligations identified based on their relative stand-alone selling prices, including, where relevant the significant financing component.
Agreed the transaction price allocation journals passed by management to align revenue recognition with the requirements of IFRS 15, to the underlying transaction price allocation calculation.
Selected a sample of voucher sales transactions and agreed these to supporting payment information.
In respect of deferred revenue recognised, we:
- Recalculated the valuation of a sample of deferred revenue balances outstanding as at year‑end by multiplying the units outstanding by the applicable rate; and
- Reperformed management's calculation of the deferred revenue balance and compared this to the balance per the general ledger.

We did not identify any material exceptions when performing these procedures.

BCX

Selected a sample of revenue transactions and assessed, in line with the requirements of IFRS 15, that the arrangements with customers were valid, that performance obligations were agreed with the customer and that revenue was appropriately measured, recognised and allocated to its relevant performance obligations.
For a sample of revenue transactions, we assessed the reasonableness of management's determination of whether the Group is the principal or agent, in accordance with IFRS 15, by:
- inspecting the underlying contractual agreements and/or purchase orders between the Group and the end-customers to identify the performance obligations and to assess whether the Group obtains control of the goods and services before providing them to the end customer, with reference to the terms of the contractual agreements; and
- assessing whether the sale of the software and licences is integral to the functionality of the related hardware sold by the Group.

We did not identify any material exceptions when performing these procedures.

Openserve

With respect to fixed-line telecommunication services and with the involvement of our IT specialists, where relevant, we performed sample testing over:

The operating effectiveness of IT general controls over the relevant revenue systems;
The operating effectiveness of controls over the provisioning of data services based on customer orders; and
The operating effectiveness of controls over the accuracy of billing based on customer orders

In addition, we:

Selected a sample of revenue transactions and assessed, in line with the requirements of IFRS 15, that the arrangements with customers were valid, that performance obligations were agreed with the customer and that revenue was appropriately recognised and allocated to its relevant performance obligations.
Recalculated the valuation of a sample of deferred revenue balances outstanding as at year-end by assessing the remaining contractual period over which the revenue should be deferred.

We did not identify any material exceptions when performing these procedures.

Other information

The Directors are responsible for the other information. The other information comprises the information included in the document(s) titled "Telkom SA SOC Ltd Annual Financial Statements For the year ended 31 March 2026", which include(s) the Directors' report, the Audit Committee report and the Certificate from the Group Company Secretary as required by the Companies Act of South Africa, which we obtained prior to the date of this auditor's report, and the document(s) titled "Telkom SA SOC Ltd Integrated Report For the year ended 31 March 2026", which is expected to be made available to us after that date. The other information does not include the consolidated or the separate financial statements and our auditor's report thereon.

Our opinion on the consolidated and separate financial statements does not cover the other information and we do not and will not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the consolidated and separate financial statements

The Directors are responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with IFRS Accounting Standards and the requirements of the Companies Act of South Africa, and for such internal control as the Directors determine is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated and separate financial statements, the Directors are responsible for assessing the Group's and the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group and/or the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the consolidated and separate financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and/or Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

Audit tenure

In terms of the IRBA Rule published in Government Gazette Number 39475 dated 4 December 2015, we report that PricewaterhouseCoopers Inc. has been the auditor of Telkom SA SOC Limited for 3 years.

Prior to that, Telkom SA SOC Limited was jointly audited by PricewaterhouseCoopers Inc. and another auditor for 5 years.

PricewaterhouseCoopers Inc.
Director: SN Madikane
Registered Auditor
Johannesburg, South Africa
1 June 2026