Slide 1: Group Annual Results for the year ended 31 March 2024
Seamlessly connecting our customers to a better life Telkom SA SOC Ltd Group Annual Results For the year ended 31 March 2024
Slide 2: Special note regarding forward-looking statements
Overview of our business Operational data Financial performance Telkom SA SOC Ltd Special note regarding Unless we are required by law to update these years ended 31 March 2024 and 31 March 2023 to (Incorporated in the forward-looking statements statements, we will not necessarily update any of achi
Slide 3: Table of Contents
Overview of our business Operational data Financial performance 1 Telkom Group Annual Results 2024 TABLE OF CONTENTS SECTION 1 7 Overview of our business SECTION 2 26 Operational data SECTION 3 27 Financial performance
Slide 4: Key indicators and Telkom operating structure
Overview of our business Operational data Financial performance 2 Telkom Group Annual Results 2024 Key indicators Telkom operating structure Telkom SA SOC Ltd represents Telkom Group The United Nations 43 230 34 356 19 026 (Telkom or the Group), which comprises Telkom Company and its subsidiaries. T
Slide 5: Re-presentation of financial information
Overview of our business Operational data Financial performance 3 Telkom Group Annual Results 2024 Re-presentation of financial Adoption of IFRS 17 IFRS 15 prior period error (principal versus agent) information IFRS 17 (Insurance Contracts) has been adopted retrospectively with effect from IFRS 15
Slide 6: Pro forma financial information
Overview of our business Operational data Financial performance 4 Telkom Group Annual Results 2024 Previously IFRS 15 Pro forma financial information reported1 Prior prior Adoption Restated March period period of March Certain financial information presented in this results announcement constitutes
Slide 7: Extract of audited consolidated annual financial statements
Overview of our business Operational data Financial performance 5 Telkom Group Annual Results 2024 Continuing Total Continuing Total operations Discontinued operations operations Assets held operations Extract of the audited consolidated annual March 2024 operations March 2024 Extract of the audited
Slide 8: Segment reporting
Overview of our business Operational data Financial performance 6 Telkom Group Annual Results 2024 Invested capital BCX revenue reconciliation (principal vs agent) As a result of the headroom between fair value when compared to the carrying value, the BCX CGU were A portion of products and services
Slide 9: Overview of our business: Performance overview
Overview of our business Operational data Financial performance 7 Telkom Group Annual Results 2024 Performance overview Telkom delivered improved financial results despite inflationary pressures and the added operating Telkom announced its Group annual cost resulting from power outages in South resu
Slide 10: Operating unit performance overview
Overview of our business Operational data Financial performance 8 Telkom Group Annual Results 2024 Openserve Telkom Consumer through our 4.5G network (primarily serving fixed wireless access) and 46% through our 4G network Openserve continued its leadership in the fixed Telkom Consumer remained resi
Slide 11: Leadership changes and Delivering as OneTelkom
Overview of our business Operational data Financial performance 9 Telkom Group Annual Results 2024 While BCX reduced some operating costs, this was We accelerated the disposal of decommissioned Unlocking value for shareholders not sufficient to offset the combined effects of properties no longer req
Slide 12: Regulatory and legal update
Overview of our business Operational data Financial performance 10 Telkom Group Annual Results 2024 Regulatory and legal update Electronic Communications Amendment Bill With the proposed disposal of Swiftnet, our future In FY2024, areas of growth have been brought into focus as we we established Rev
Slide 13: Financial capital: Group revenue and HEPS growth
Overview of our business Operational data Financial performance 11 Telkom Group Annual Results 2024 Financial capital Group revenue HEPS growth Group revenue 1,2 increased by 1.6% to HEPS1,3,4,7 increased by 201.3% to 376.0 cents R43 230 million, driven by an increase in mobile while BEPS1,3 increas
Slide 14: Free cash flow and capex
Overview of our business Operational data Financial performance 12 Telkom Group Annual Results 2024 March March Free cash flow supported by improved working capital management 2024 2023 Variance Capex Rm Rm % FCF4,5 increased 115.6% to R424 million (FY2023: negative R2 722 million). Excluding restru
Slide 15: Productive capital: Openserve
Overview of our business Operational data Financial performance 13 Telkom Group Annual Results 2024 Productive capital EBITDA 31.4% margin1 Openserve Performance overview Highest market Delivering on its ambition of being the Openserve’s next-generation fixed data-led products grew by 7.4% from 48.5
Slide 16: Openserve: Scalable network, commercialise, transform service delivery
Overview of our business Operational data Financial performance 14 Telkom Group Annual Results 2024 Scalable network Commercialise the network Transform service delivery In line with our strategic focus on building Openserve has made significant progress in Openserve’s journey to redefine service ex
Slide 17: Productive capital: Telkom Consumer
Overview of our business Operational data Financial performance 15 Telkom Group Annual Results 2024 Productive capital Mobile service 6.8% revenue growth Telkom Consumer Accelerated Mobile growth In the dynamic and challenging landscape Despite the adverse economic climate, our mobile subscriber bas
Slide 18: Drive broadband adoption, expand mobile network
Overview of our business Operational data Financial performance 16 Telkom Group Annual Results 2024 Drive broadband adoption Expand mobile network Economic challenges have prompted a noticeable The persistent demand for data continued, shift in consumer behaviour regarding acquisition resulting in a
Slide 19: Productive capital: BCX performance overview
Overview of our business Operational data Financial performance 17 Telkom Group Annual Results 2024 Productive capital BCX Performance overview BCX operated in a challenging trading BCX continued to focus on enhancing the quality and sustainability of Growth in total its client base, with key metric
Slide 20: BCX business segments
Overview of our business Operational data Financial performance 18 Telkom Group Annual Results 2024 BCX’s performance is segmented into two main BCX saw a 14.5% drop in the Converged IT Business segment business areas: Information Technology (IT) and Communications b u s i n e s s re v e n u e t o C
Slide 21: International business revenue exceeded R1 billion
Overview of our business Operational data Financial performance 19 Telkom Group Annual Results 2024 The partnership enables BCX to be the sole In addition to strengthening our cloud offerings, Converged Communications Alibaba cloud distributor for South Africa and we have made significant progress i
Slide 22: Productive capital: Swiftnet
Overview of our business Operational data Financial performance 20 Telkom Group Annual Results 2024 Productive capital Swiftnet Optimise and grow masts and towers portfolio Swiftnet continued to commercialise its masts Swiftnet’s revenue increased by 1.3% to R1 321 million against the New towers pri
Slide 23: Productive capital: Gyro property portfolio
Overview of our business Operational data Financial performance 21 Telkom Group Annual Results 2024 Productive capital Gyro Commercialise the property portfolio Gyro continued to rationalise the property Various property development projects advanced in terms of property Property sale development pl
Slide 24: Human capital
Overview of our business Operational data Financial performance 22 Telkom Group Annual Results 2024 Driving a high-performance culture Human The FY2024 employee engagement survey saw an increase in capital We are advancing our impact through purpose-led and sustainable participation, with 53% of Gro
Slide 25: Intellectual capital
Overview of our business Operational data Financial performance 23 Telkom Group Annual Results 2024 Data-driven insights Intellectual Leveraging insights from historical and churn data, Openserve and Telkom Strategic Key achievements Contributing capital focus areas in FY2024 to UN SDGs Consumer opt
Slide 26: Social and relationship capital
Overview of our business Operational data Financial performance 24 Telkom Group Annual Results 2024 Supporting ESD: FutureMakers Social and relationship Telkom strives to create shared value for its business and society Telkom through the FutureMakers programme supported enterprises through procurem
Slide 27: Natural capital
Overview of our business Operational data Financial performance 25 Telkom Group Annual Results 2024 Driving energy efficiency and alternative energy Natural capital Telkom continues to focus on energy efficiency and provision of alternative Telkom has developed an energy strategy to focus on crucial
Slide 28: Operational data
Overview of our business Operational data Financial performance 26 Telkom Group Annual Results 2024 Operational data March March Variance 2024 2023 % Network Fibre to the home 1 217 110 1 040 565 17.0 Fibre homes passed and connected 590 527 492 812 19.8 Enterprise business services 41 951 41 898 0.
Slide 29: Financial performance: Group revenue
Overview of our business Operational data Financial performance 27 Telkom Group Annual Results 2024 Group revenue March March 2024 2023 Variance Rm Rm % Fixed 13 521 14 330 (5.7) Voice and subscriptions 3 067 4 004 (23.4) Usage 1 185 1 624 (27.0) Subscriptions 1 882 2 380 (20.9) Interconnection 247
Slide 30: Mobile and masts and towers statements of profit or loss
Overview of our business Operational data Financial performance 28 Telkom Group Annual Results 2024 Mobile statement Reported Reported Reported of profit or loss March 2024 March 2023 March 2022 Rm Rm Rm Revenue 22 691 21 799 21 415 Payments to other operators (2 633) (2 652) (2 598) Cost of handset
Slide 31: Consolidated statement of profit or loss
Overview of our business Operational data Financial performance 29 Telkom Group Annual Results 2024 Consolidated statement of profit or Pro forma loss for the year ended 31 March 2024 Pro forma1 Restated March 2024 March 2023 Variance Total operations Rm Rm % Notes Revenue2 43 230 42 534 1.6 Other e
Slide 32: Consolidated statement of financial position
Overview of our business Operational data Financial performance 30 Telkom Group Annual Results 2024 Consolidated statement Pro forma1 Reported of financial position March 2024 March 2023 Variance Total operations Rm Rm % Notes Assets Intangible assets increased by 18.8% to R5 339 million, largely du
Slide 33: Consolidated statement of cash flows
Overview of our business Operational data Financial performance 31 Telkom Group Annual Results 2024 Consolidated statement Reported Reported of cash flows for the year ended March 2024 March 2023 Variance 31 March 2024 Rm Rm % Notes Cash flows from operating activities 8 003 5 126 56.1 Cash generate
Slide 34: Return on invested capital and technology view
Overview of our business Operational data Financial performance 32 Telkom Group Annual Results 2024 Return on invested capital1 Technology view2 As a result of headroom between fair value when compared to the carrying value of Swiftnet and BCX, the assets of IT, NGN and Masts and Towers were written
Slide 35: Openserve and Telkom Consumer financial position extracts
Overview of our business Operational data Financial performance 33 Telkom Group Annual Results 2024 Openserve1 Reported Pro forma Impairment Pro forma Reported Extract from the statement March 2024 March 2023 adjustment adjustment March 2023 of financial position Rm Rm Rm Rm Rm Total assets 22 233 2
Slide 36: BCX and Gyro financial position extracts
Overview of our business Operational data Financial performance 34 Telkom Group Annual Results 2024 BCX1 Pro forma Fair value Reported Pro forma Fair value Pro forma Reported Extract from the statement March 2024 adjustment2 March 2024 March 2023 adjustment2 adjustment March 2023 of financial positi
Slide 37: Independent Auditor's Assurance Report on pro forma financial information
Overview of our business Operational data Financial performance 35 Telkom Group Annual Results 2024 Independent Auditor’s Assurance Report on the compilation of pro forma financial We conducted our engagement in accordance with the International Standard on Assurance Engagements information included
Slide 38: Administration
Overview of our business Operational data Financial performance 36 Telkom Group Annual Results 2024 Administration Company registration number Transfer secretaries 1991/005476/30 Computershare Investor Services Proprietary Limited Rosebank Towers Head office 15 Biermann Avenue 61 Oak Avenue Rosebank
Slide 39: Telkom
Telkom Consumer (es) serve BCX (>) Aswiftnet Gyro