Strategic objectives and business model

What drives our business model

Telkom’s business model targets long-term value creation for its stakeholders by delivering profitability and growth, improving efficiencies and mitigating risks. The main capitals used by Telkom to create value for the group and its stakeholders are financial capital, productive capital, intellectual capital, human capital, social and relationship capital and natural capital – as defined in the International <IR> Framework. This diagram articulates how Telkom’s actions affect the quality and availability of its stock of capitals and how the efficient use of the various capitals creates value for the group and its stakeholders.

Our purpose

Seamlessly connect South Africans to a better life

Enterprise risk management

Risk management is at the core of Telkom’s operating structure. As well as identifying threats or uncertainties it also provides us with opportunities to grow and develop our business

Governance

Our framework of stringent and clear rules of governance

Stakeholders

We communicate with the people connected with us in every possible way. We listen, we inform and our ultimate goal is to connect and gain insight

Values

Our values drive how we behave:

  • Continuous improvement
  • Honesty
  • Accountability
  • Respect
  • Teamwork

Assets

Our assets include:

  • Products and services
  • Distribution channels
  • Property portfolio
  • Converged network

Strategic objectives

We use the unique combination of our people, technology and networks and our financial strength, to create products and services, deliver customer service, transform our cost base and invest in our future.

Leading provider of converged ICT solutions
  • Centre of the digital home and lifestyle by delivering simple and compelling bundles and converged products
  • Leader in enterprise, business and government communication and networked services to South African business
  • Wholesaler of choice
  • An invincible network
  • Connect people to the future by building innovative products and services that create the future they desire
  • Future-proof technology meeting next generation customer expectations
Customer First
  • Transforming our business to put the customer first
  • Actively listen and respond in order to deliver on our customer needs first, regardless of our own internal complexity
  • Provide access to the digital life and be part of the global economy and social ecosystem
  • Partner to deliver a better life for all
  • Attract and develop the best talent
  • Be considered an employer of choice
  • Create the best environment for our people to flourish
  • Ensure our people feel the reward of personal progress
  • Performance incentives aligned to company objectives
Building a sustainable business
  • Achieve level playing field in terms of regulatory environment
  • Grow EBITDA margin by between 26 and 27% in FY2016
  • Strong free cash flow
  • Normalise capex to revenue in line with benchmark and peers at 15 to 18%
  • Competitive cost base and efficiencies
  • Partner for scale and capability in mobile
  • Acquisitions providing scale and capability in IT infrastructure services
  • Strategic technology investments
  • Capitalise on the investment we have made in our infrastructure
  • Doing business in a responsible and ethical manner and having a low environmental impact by minimising our energy and resource consumption and mitigating any impacts we have on the environment

Capitals

Our stock of capitals, which is increased, decreased or transformed through our activities and outputs, allows us to deliver value to our stakeholders

  • Natural
  • Financial
  • Human
  • Social and Relationship
  • Intellectual
  • Productive

Detailed information on our performance against each capital is available in the Performance section of this report