Financial Results

Group annual results for the year ended 31 March 2016

Telkom SA SOC Limited
(Registration number 1991/005476/30)
JSE share code: TKG
ISIN: ZAE000044897

Special note regarding forward-looking statements.

Many of the statements included in this document, as well as verbal statements that may be made by us or by officers, directors or employees acting on our behalf, constitute or are based on forward-looking statements.

All statements, other than statements of historical facts, including, among others, statements regarding our convergence and other strategies, future financial position and plans, objectives, capital expenditures, projected costs and anticipated cost savings and financing plans, as well as projected levels of growth in the communications market, are forward-looking statements. Forwardlooking statements can generally be identified by the use of terminology such as “may”, “will”, “should”, “expect”, “envisage”, “intend”, “plan”, “project”, “estimate”, “anticipate”, “believe”, “hope”, “can”, “is designed to” or similar phrases, although the absence of such words does not necessarily mean that a statement is not forward looking. These forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause our actual results and outcomes to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Factors that could cause our actual results or outcomes to differ materially from our expectations include but are not limited to those risks identified in Telkom’s most recent annual report, which is available on Telkom’s website.

We caution you not to place undue reliance on these forward-looking statements. All written and verbal forward-looking statements attributable to us, or persons acting on our behalf, are qualified in their entirety by these cautionary statements. Moreover, 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.

The information contained in this document is also available on Telkom’s Investor Relations website.

Telkom SA SOC Limited is listed on the JSE Limited. Information may be accessed on Reuters under the symbols TKGJ.J and on Bloomberg under the symbol TKG. SJ. Information contained on Reuters and Bloomberg is provided by a third party and is not incorporated by reference herein. Telkom has not approved or verified such information and does not accept any liability for the accuracy of such information.

All commentary, messaging and indicators in this report for the current year exclude voluntary early retirement and severance package costs of R2 193 million and the related tax impact of R517 million. The comparative numbers exclude a voluntary early retirement and severance package cost of R591 million and the related tax impact of R165 million, as well as the tax benefit on the post-retirement medical aid payment of R546 million.

Auditors’ report
This summarised report is extracted from audited information, but is not itself audited. The annual financial statements were audited by Ernst & Young Inc. who expressed an unmodified opinion thereon. The audited annual financial statements and the auditors’ report thereon are available for inspection at the Company’s registered office. The directors take full responsibility for the preparation of the preliminary, provisional or abridged report and the financial information has been correctly extracted from the underlying annual financial statements.

Board approval
The condensed consolidated provisional annual financial statements were authorised for issue by the board of directors of Telkom (Board) on 3 June 2016.

Preparer and supervisor of condensed consolidated provisional annual financial statements
These condensed consolidated provisional annual financial statements were prepared by Mrs Gladys Machinjike (Executive Financial Accounting and Reporting) and supervised by Mr Robin Coode (Group Executive Accounting).