Telkom Sa Soc Ltd. · JSE:TKG
Telkom Sa Soc — Investor Day (2019)
11 slides from Telkom Sa Soc's investor day presentation, 2019
Slide 1: Sipho Maseko, Group CEO
Sipho Maseko Group CEO Telkom Capital Markets Day 2019 3
Slide 2: Our journey: Turnaround, Transform, Grow
Our journey Turnaround Transform Grow Telkom Capital Markets Day 2019 4
Slide 3: Recapping
Recapping Internal factors External factors • Declining revenue and high cost • Declining fixed voice & fixed-mobile structure substitution • Over-reliance on fixed voice • Self-provisioning by wholesale customers • Uncertain regulatory & policy environment • High debt levels and weak cash flow • Re
Slide 4: Our turnaround
Our turnaround Challenges Management response • Invested in new technologies and managed voice decline • Declining fixed voice revenue and self provisioning by mobile players • Wholesale pricing intervention • High cost structure, poor balance sheet and weak • Multi year cost efficiency programme &
Slide 5: Transformative initiatives
Transformative initiatives Repositioning of Openserve Acquisition of BCX Our vehicle for data and broadband IT revenue streams to diversify and investment offset declining fixed voice revenue in the Enterprise business Accelerated Mobile business Separated Mast & Tower and such as LTE through effici
Slide 6: Repositioning of Openserve
Repositioning of Openserve Strategic Action Outcome intent steps taken • Modernise network • Review pricing strategy • Leading connectivity • Create trust with • Invested in NextGen provider customer base technology & Fiber roll-out • Largest fibre footprint • Grow OLO customers • Cost efficiency pr
Slide 7: BCX acquisition to diversify
BCX acquisition to diversify Strategic Action Outcome intent steps taken • Position ICT converged • Backward integration of • Reduced voice dependency solutions Enterprise into BCX • Optimised product • Diversify revenue mix • Renewed BCX leadership offerings • Invest in future skill base • Revised
Slide 8: Reposition Consumer business
Reposition Consumer business Strategic Action Outcome intent steps taken • De-risk Mobile business • Launched data led • Broadband led value • Grow data usage prepositions propositions • Improve customer value • Offered Fixed Wireless • Increased mobile market propositions products share • Improve c
Slide 9: Focus on property portfolio
Focus on property portfolio Strategic Action Outcome intent steps taken • Diversify portfolio • Established focused • Increased revenue streams • More efficient use of property business - Gyro from Mast and Tower portfolio building capacity & space • Consolidated the portfolio • Optimised building o
Slide 10: New revenue streams – foundation for growth
New revenue streams – foundation for growth FY2013 FY2019 Telkom Capital Markets Day 2019 12
Slide 11: Diversified portfolio – set for growth
Diversified portfolio – set for growth • Accelerate mobile • Grow • Modernise the • Optimise and • Establish dedicated growth connectivity network grow the mast & SMB business unit • Drive high-speed • Improve IT • Commercialise tower portfolio • Aggressive on new broadband services the network • Co