About this report

Any financial discussion from pages 2 to 134 excludes retrenchment expenses, voluntary early retirement and severance packages costs of R591 million, the related tax impact of R165 million and the tax benefit on the post-retirement medical aid payment of R546 million for the year ended 31 March 2015. The comparative numbers exclude the R2 169 million net curtailment gain on the postretirement medical aid liability and the related tax benefit of R246 million.

Telkom SA SOC Limited, which is listed on the Johannesburg Stock Exchange, chooses to report in an integrated manner because we believe that doing so can help our stakeholders make better informed decisions about our business.

This integrated report, which is our primary report to stakeholders, covers the period 1 April 2014 to 31 March 2015. The scope of this report includes the Telkom group’s operations, projects and the key functions over which we exercise control. The only change to Telkom’s size, operating structure or ownership during FY 2015 is that our subsidiary, Trudon (Pty) Ltd has been made available for sale. There have been no significant changes from the previous reporting period in the scope, boundary or measurement methods applied in this report. We would refer you to page 17 for details of our structure. Our previous report covered the period of 1 April 2013 to 31 March 2014.

For ease of reference we have used Telkom or the group to represent the company and its group entities. All our subsidiaries, business divisions and products are referred to by their branded names. With respect to comparability all items are reported on a like-for-like basis with no major restatements. Any restatements are noted and explained.

Reporting frameworks

Our integrated report conforms to the requirements of local and international reporting frameworks, including those of the South African Companies Act 71 of 2008 and the JSE Listings Requirements. We have used the International Integrated Reporting Framework to guide us in structuring our report to show the connectivity between material information on our strategy, governance, performance and prospects and how our strategy affects and is affected by environmental, social and financial matters. We have been guided by the Global Reporting Initiative’s (GRI) 3.1 indicators. Selected sustainability information in this report has been assured by independent auditors Ernst & Young Inc. For more information see the assurance statement available on the Telkom website.

We have also applied King lll and have been guided by the Global Reporting Initiative’s GRI G3.1 guidelines.

Telkom was included in the JSE Social Responsibility Index (SRI) in 2014.

Our annual financial statements (pages 143 to 235), which comply with International Financial Reporting Standards, were audited by Ernst & Young Inc. whose unqualified audit report can be found on page 142.

Building stability. Unlocking potential

Board approval

The Telkom board acknowledges its responsibility to ensure the integrity of this integrated report. The board confirms that it has collectively reviewed the report’s contents and to the best of its knowledge and beliefit addresses Telkom’s material issues and presents fairly the integrated performance of the organisation and its impact on the environment and its stakeholders. The report, for the year ended 31 March 2015, was approved by the board of directors on 1 July 2015 and signed on its behalf by:

Jabu Mabuza Chairman 1 July 2015

Sipho Maseko Group chief executive officer

Give us feedback

We would welcome your feedback on our reporting for the financial year ended 31 March 2015 and any suggestions you have in terms of what you would like to see incorporated in our report for the financial year ended 31 March 2016. To do so please contact Nwabisi Piki at telkomir@telkom.co.za.

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