Telkom Sa Soc Ltd. · JSE:TKG
Telkom Sa Soc — H1 FY2026 Earnings Presentation
42 slides from Telkom Sa Soc's earnings presentation, November 2025
Slide 1: Interim Results
Interim Results For the six months ended Seamlessly connecting our 30 September 2025 customers to a better life.
Slide 2: Disclaimer
Disclaimer Many statements in this document and verbal statements that may be made by Telkom cautions readers not to place undue reliance on forward-looking statements. Telkom or officers, Directors or employees acting on Telkom’s behalf constitute or All written and verbal forward-looking statement
Slide 3: Contents
Contents 01 Strategic Highlights 02 Business Review 03 Financial Review 04 Outlook and Priorities
Slide 4: Strategic Highlights
Strategic Highlights Serame Taukobong Group CEO Interim Results Presentation H1 FY2026 4
Slide 5: Data-led growth. Quality earnings sustained
Strategic Highlights Business Review Financial Review Outlook & Priorities Data-led growth. Quality earnings sustained Group Group Data Group HEPS Free Revenue Revenue EBITDA Cash Flow 3.4% 7.9% 7.4% 16.4% TO R22.1bn TO R13.1bn TO R6.0bn TO 305.6c AT R724m Driven by Now 59.1% Costs kept Sustained Co
Slide 6: Unique infrastructure. Operational performance sustained
Strategic Highlights Business Review Financial Review Outlook & Priorities Unique infrastructure. Operational performance sustained Mobile sites integrated Mobile data subscribers Mobile data traffic ’000 # petabytes 3.9% 26.7% 16.8% 75% 64% 67% 993 850 KEY POINTS 18 479 7 814 7 684 8 115 14 582 676
Slide 7: Benchmark of mobile growth
Benchmark of mobile growth Interim Results Presentation H1 FY2026 7
Slide 8: 15 years of Telkom Mobile
Strategic Highlights Business Review Financial Review Outlook & Priorities 15 years of Telkom Mobile | Building the most competitive, value compelling data propositions Mobile revenue Rm R4.8 billion revenue growth 24 448 22 583 21 617 20 791 19 623 2010 2012 2016 2022 2025 FY21 FY22 FY23 FY24 FY25
Slide 9: 12 consecutive quarters of market-leading service revenue growth
Strategic Highlights Business Review Financial Review Outlook & Priorities 12 consecutive quarters of market-leading service revenue growth Total mobile subscribers Mobile service revenue Mobile EBITDA/EBITDA margin ’000 ‘000 ’000 7.7% 7.9% 9.5% KEY POINTS 11 027 • Total subscriber growth of 10 220
Slide 10: Targeted CVM and optimised pricing power prepaid growth
Strategic Highlights Business Review Financial Review Outlook & Priorities Targeted CVM and optimised pricing power prepaid growth Mobile prepaid subscribers Mobile prepaid service revenue Mobile pre-paid data revenue ’000 ‘000 ’000 9.0% 10.8% 13.9% KEY POINTS • Pre-paid service revenue growth of 10
Slide 11: Beacon of competitiveness
open )serve Beacon of competitiveness
Slide 12: Pervasive fibre network close to homes and businesses
Strategic Highlights Business Review Financial Review Outlook & Priorities Pervasive fibre network close to homes and businesses Openserve Base Central Office Station Commercial (Exchange) Network • 3 undersea cable Fibre backhaul • 6 000 mobile sites landings equipped with fibre • SA’s largest NOC
Slide 13: Fibre drives revenue transformation
Strategic Highlights Business Review Financial Review Outlook & Priorities Fibre drives revenue transformation Revenue Fibre-related data revenue EBITDA/EBITDA margin Rm Rm Rm 2.7% 10.1% 1.2% KEY POINTS • Overall revenue increase underpinned by growth 6 327 across all segments 6 261 33.8% • 5 064 33
Slide 14: Overall growth by leading the fibre revolution
Strategic Highlights Business Review Financial Review Outlook & Priorities Overall growth by leading the fibre revolution Enterprise Revenue Broadband revenue1 Carrier Revenue Rm Rm Rm 15.7% 7.3% 5.1% 2 205 978 2 028 845 1 890 807 2 146 1 734 2 098 H1 FY24 H1 FY25 H1 FY26 H1 FY24 H1 FY25 H1 FY26 H1
Slide 15: Industry leading connectivity and service competitiveness
Strategic Highlights Business Review Financial Review Outlook & Priorities Industry leading connectivity and service competitiveness Connectivity rate NPS % Net Promoter Score 2.3 99.93% KEY POINTS 5.7% ppts Broadband • Industry leading connectivity access availability rate of 52.0%. 79.6 • Our inno
Slide 16: Task team in action
Task team in action
Slide 17: Disciplined execution and continued cost management
Strategic Highlights Business Review Financial Review Outlook & Priorities Disciplined execution and continued cost management Revenue IT business revenue EBITDA/EBITDA margin Rm Rm Rm KEY POINTS 4.4% 1.2% 5.1% • Revenue decline due to revenue decrease of 11.3% in Converged Communications • IT busin
Slide 18: Planned revenue transition in progress
Strategic Highlights Business Review Financial Review Outlook & Priorities Planned revenue transition in progress Fibre revenue IT hardware and software revenue Rm Rm 13.8% 4.3% KEY POINTS • Fibre-related data revenue growth of 13.8% and now represents 83% of total data revenue - Offsetting a declin
Slide 19: Financial Review
Financial Review Nonkululeko Dlamini Group CFO
Slide 20: Financial strategy: Progress made on executing our strategy
Strategic Highlights Business Review Financial Review Outlook & Priorities Financial strategy | Progress made on executing our strategy Earnings Financial position Cash flow • Momentum in revenue growth • Lowered debt resulted in • Higher capex deployed to support from H1 FY25 to H1 FY26 leverage re
Slide 21: Financial highlights: Delivered quality financial performance
Strategic Highlights Business Review Financial Review Outlook & Priorities Financial highlights | Delivered quality financial performance Cash allowing for Growth Earnings Financial position growth investment Group +3.4% Group +7.4%1 Net revenue EBITDA debt R7.9bn FCF R724m R22.1bn R6.0bn Group Net
Slide 22: Group performance
Strategic Highlights Business Review Financial Review Outlook & Priorities Group performance | Sustained growth even after adjusting for prior period once-off items Continuing operations Reported Reported Variance Adjusted1 Variance Rm H1 FY26 H1 FY25 % H1 FY25 % Revenue 22 104 21 382 3.4 Other inco
Slide 23: Revenue by stream
Strategic Highlights Business Review Financial Review Outlook & Priorities Revenue by stream | 11% growth in mobile and fibre-related data revenue driven by the execution of the data-led strategy Continuing operations Rbn R12 760m R9 344m H1 FY25 H1 FY26 11.0% 5.4% +10.3% +12.3% +2.9% -1.6% -18.5% 7
Slide 24: Expenses: Disciplined cost management
Strategic Highlights Business Review Financial Review Outlook & Priorities Expenses | Disciplined cost management delivering below-inflation expense increase Continuing operations Rm OVERALL 2.2% Total expenses INCREASE (3.8%) Operating expenses in total expenses limited to (1.3%) below-inflation dr
Slide 25: EBITDA: Revenue growth and ongoing cost optimisation
Strategic Highlights Business Review Financial Review Outlook & Priorities EBITDA | Revenue growth and ongoing cost optimisation delivering sustained margin expansion Continuing operations Rm EBITDA EBITDA margin +1.1 ppts 7.4% Total expenses 26.2% 25.3% 26.4% 27.2% (2.2%) R417m 207 147 428 185 5 83
Slide 26: Earnings: Strong quality earnings growth
Strategic Highlights Business Review Financial Review Outlook & Priorities Earnings | Strong quality earnings growth highlighting profit momentum Continuing operations Cents per share 1 BEPS Reported Reported Adjusted HEPS cents per share H1 FY26 H1 FY25 H1 FY25 +12.7% +16.4% BEPS 325.7 173.2 288.9
Slide 27: Strong financial position
Strategic Highlights Business Review Financial Review Outlook & Priorities Strong financial position | Well-placed for investing in growth opportunities Net debt Debt maturity profile Rm Rm H1 FY26 FY25 % 2 500 Call borrowings Bonds Cash balances 5 682 11 054 (48.6) 2 000 Revolving credit facility I
Slide 28: Capital expenditure: Focused on enhancing returns
Strategic Highlights Business Review Financial Review Outlook & Priorities Capital expenditure | Focused on enhancing returns in the long run Capex spend and intensity Capex allocation Rm % H1 FY26 +12.9% 6% 5% MONETISING OUR ASSETS 2 870 41% 2 543 • Disciplined smart capex H1 FY25 48% deployment. 1
Slide 29: Free cash flow
Strategic Highlights Business Review Financial Review Outlook & Priorities Free cash flow | Remains robust with 7.9% growth in cash generated from operations Free cash flow Reported Reported Variance Rm H1 FY26 H1 FY25 % Cash receipts from customers 22 941 22 255 3.1 KEY POINTS Cash paid to supplier
Slide 30: Cash conversion: Stability maintained
Strategic Highlights Business Review Financial Review Outlook & Priorities Cash conversion | Stability maintained Free cash flow Rm 6 023 201 509 942 1 586 3 187 724 597 265 1 EBITDA Other Working Lease Capex Operating Net finance cost Tax paid FCF capital liabilities FCF paid 1 Includes dividend re
Slide 31: Medium term guidance unchanged (FY26 – FY28)
Strategic Highlights Business Review Financial Review Outlook & Priorities Medium term guidance unchanged (FY26 – FY28) Key performance indicator Targets H1 FY26 Revenue growth Mid-single digit 3.4% R EBITDA margin 25% - 27% 27.2% R Capex to fund growth 12% - 15% 13.0% R Net debt to EBITDA 0.5x - 1.
Slide 32: Outlook & priorities
Outlook & priorities Serame Taukobong Group CEO
Slide 33: Sustainability excellence is embedded into our operations
Strategic Highlights Business Review Financial Review Outlook & Priorities Sustainability excellence is embedded into our operations Prosperity Planet People Practice Creating economic value for Committing to Connecting and Embracing stewardship to our stakeholders through environmentally conscious
Slide 34: Confident meeting medium-term commitments
Strategic Highlights Business Review Financial Review Outlook & Priorities Confident meeting medium-term commitments 1 Continue revenue growth Smart CAPEX deployment 3 • Consumer: CVM and focused regional expansion. • Expand mobile and fibre network for data-led growth. • Openserve: FTTH, enterprise
Slide 35: Quality growth unlocked
Strategic Highlights Business Review Financial Review Outlook & Priorities Quality growth unlocked Continued execution of the data-led strategy as OneTelkom Backbone of Excellent SA’s digital future, execution of serving our data-led customers strategy Unrivalled Focused Committed to infrastructure
Slide 36: Thank you.
Telkom Thank you.
Slide 37: Consumer
Telkom Consumer
Slide 38: Consumer revenue growth, with improved profitability
Strategic Highlights Business Review Financial Review Outlook & Priorities Consumer revenue growth, with improved profitability Consumer operating revenue1 ARPU Consumer EBITDA/EBITDA ’000 R margin 6.4% 3.4% Rm 6.4% 209 186 190 182 22.3% 237 219 1 327 1 434 19.4% 1 662 12 715 15.4% 11 743 85 11 085
Slide 39: Population coverage at 85%, due to network expansion and site upgrade
Strategic Highlights Business Review Financial Review Outlook & Priorities Population coverage at 85%, due to network expansion and site upgrade Broadband subscriber growth Broadband traffic growth 4.5G sites integrated ’000 ’000 # 26.7% 16.9% 3.9% KEY POINTS • Broadband subscribers grew +26.7% YoY
Slide 40: Openserve
open)serve
Slide 41: Ongoing migration to fibre drives broadband growth
Strategic Highlights Business Review Financial Review Outlook & Priorities Ongoing migration to fibre drives broadband growth Fixed line broadband services Carrier Enterprise Services (‘000) Circuits Business circuits 16.8% 9.3% 3.1% 45 407 44 041 21 760 881 42 444 19 946 19 912 755 659 H1 FY24 H1 F
Slide 42: Thank you.
Telkom Thank you.