Telkom Sa Soc Ltd. · JSE:TKG
Telkom Sa Soc — FY2026 Earnings Presentation
46 slides from Telkom Sa Soc's earnings presentation, Mar 31, 2026
Slide 1: Group Annual Results
Telkom SA SOC Ltd Group Annual Results For the year ended Seamlessly connecting 31 March 2026 our customers to a better life
Slide 2: Disclaimer
Disclaimer Many statements in this All statements, other than statements of historical facts, including, among others, statements regarding document and verbal statements our strategy, future financial position and plans, objectives, capital expenditure, projected costs and that may be made by Telkom
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
Slide 5: Focused execution. Stronger outcomes
Strategic Highlights Business Review Financial Review Outlook & Priorities Focused execution. Stronger outcomes Performance Resilient platform Competitive engine priorities ahead Quality earnings Data-led strategy Revenue and cash generation delivering growth Market-leading mobile BCX execution and
Slide 6: Quality earnings driving enhanced shareholder returns
Strategic Highlights Business Review Financial Review Outlook & Priorities Quality earnings driving enhanced shareholder returns Group highlights Data EBITDA EBITDA Revenue revenue margin R44.5bn R26.6bn1 28.1% R12.5bn 1.4% 7.6% 1.2 ppts2 5.8%2 Free cash Headline Cost-to- Ordinary flow earnings inco
Slide 7: Sustainability: Building better, for longer
Strategic Highlights Business Review Financial Review Outlook & Priorities Sustainability: Building better, for longer Focus Achievements Prosperity Digital inclusion 74 114 jobs created through SMME Expanding access and job creation development Net zero by 2040 50.8% reduction in Scope 1 & 2 Planet
Slide 8: Business Review
Strategic Highlights Business Review Financial Review Outlook & Priorities Business Review Annual Results Presentation FY2026 8
Slide 9: Data growth mitigates legacy pressures
Strategic Highlights Business Review Financial Review Outlook & Priorities Data growth mitigates legacy pressures Top-line performance by stream Rm 1.4% 2 172 44 477 43 880 (1 186) (389) 1 FY25 Traditional fixed Other Data-led FY26 6.8% 2.3% 7.6% Mobile service revenue growth continues Topline reven
Slide 10: Benchmark of mobile growth
Strategic Highlights Business Review Financial Review Outlook & Priorities Benchmark of mobile growth Annual Results Presentation FY2026 10
Slide 11: Consistent market-leading service revenue growth
Strategic Highlights Business Review Financial Review Outlook & Priorities Consistent market-leading service revenue growth Mobile service Mobile data Mobile EBITDA/ revenue revenue EBITDA margin Mobile subscribers 6.8% 10.5% 14.0% EBITDA +25 million EBITDA margin + 10.8 % 29.0% 22 388 17 752 Data t
Slide 12: Unparalleled pre-paid growth. Regional strategy yielding results
Strategic Highlights Business Review Financial Review Outlook & Priorities Unparalleled pre-paid growth. Regional strategy yielding results Mobile Mobile Mobile pre-paid pre-paid service pre-paid data subscribers 11.9% revenue 10.3% revenue 14.9% Market-leading value 22 601 bundles 15 387 11 983 Reg
Slide 13: Beacon of competitiveness
Strategic Highlights Business Review Financial Review Outlook & Priorities Beacon of competitiveness Annual Results Presentation FY2026 13
Slide 14: Revenue trajectory turns positive
Strategic Highlights Business Review Financial Review Outlook & Priorities Revenue trajectory turns positive Revenue Fibre-related EBITDA/ data revenue EBITDA margin 2.3% 8.2% 5.6% External revenue Enterprise EBITDA Broadband Carrier EBITDA margin +10.7% 10 113 3 650 1 525 9 350 12 632 33.5% 12 349
Slide 15: Industry leading connectivity and service competitiveness
Strategic Highlights Business Review Financial Review Outlook & Priorities Industry leading connectivity and service competitiveness Fibre homes Fibre homes NPS passed connected Net Promoter Fibre connectivity rate 11.6% 17.7% Score 9.3% 53.1% +2.7 ppts 1 539 209 79.0 817 540 72.3 1 378 930 694 630
Slide 16: Sharpening execution and customer outcomes
Strategic Highlights Business Review Financial Review Outlook & Priorities Sharpening execution and customer outcomes Annual Results Presentation FY2026 16
Slide 17: Focused actions to improve execution and portfolio quality
Strategic Highlights Business Review Financial Review Outlook & Priorities Focused actions to improve execution and portfolio quality Stronger execution Improved Greater consistency in Our objectives discipline portfolio mix revenue performance Four focus areas 1 Strengthen core IT growth engines Po
Slide 18: IT business stable, margin resilient on cost discipline
Strategic Highlights Business Review Financial Review Outlook & Priorities IT business stable, margin resilient on cost discipline Revenue IT business EBITDA/ revenue EBITDA margin 7.6% 0.7% 21.8% Cybersecurity revenue Converged Comms IT hardware EBITDA IT Business and software IT services EBITDA ma
Slide 19: Financial Review
Strategic Highlights Business Review Financial Review Outlook & Priorities Financial Review Nonkululeko Dlamini Group CFO Annual Results Presentation FY2026 19
Slide 20: Resilient platform: consistent and disciplined strategy execution
Strategic Highlights Business Review Financial Review Outlook & Priorities Resilient platform | Consistent and disciplined strategy execution gaining traction Quality Smart capex Strong Resilient free Earnings deployment balance sheet cash flow Data-led execution income Prudent utilisation Cash gene
Slide 21: Financial highlights: strong progress across key financial metrics
Strategic Highlights Business Review Financial Review Outlook & Priorities Financial highlights | Strong progress across key financial metrics Growth and Smart capex Prudent financial Shareholder value profitability deployment management delivery Data-led 9.1% Capex 10.4% Net 14.7% FCF 10.4% revenue
Slide 22: Group performance: underlying performance reflects operational momentum
Strategic Highlights Business Review Financial Review Outlook & Priorities Group performance | Underlying performance reflects operational momentum Continuing operations Reported Reported Variance Adjusted1 Variance Rm FY26 FY25 % FY25 % Revenue 44 477 43 880 1.4 Other income2 1 262 1 552 (18.7) Tot
Slide 23: Revenue by stream
Strategic Highlights Business Review Financial Review Outlook & Priorities Revenue by stream | Continued shift towards data-led revenue streams is driving sustainable growth Group revenue Rbn Data-led revenue streams Other revenue streams FY25 Sustained data-led R26.0bn 9.1% R18.5bn 7.9% FY26 growth
Slide 24: Expenses: structural cost optimisation drives margin expansion
Strategic Highlights Business Review Financial Review Outlook & Priorities Expenses | Structural cost optimisation drives margin expansion Total expenses Cost-to-income Rm Group Operating expenses % Total expenses down (0.9%) 2.1% 2.1 ppts 1.1% 78.4% 75.1% 73.0% (96) (453) 298 328 304 33 640 33 259
Slide 25: Profitability: efficiencies continue to support operational growth
Strategic Highlights Business Review Financial Review Outlook & Priorities Profitability | Efficiencies continue to support operational growth EBITDA EBITDA margin Rm % +2.2 ppts Total expenses 26.9% 25.4% 27.6% 28.1% 5.8% 1.1% +10.3% (290) (96) 477 12 480 12 480 194 597 11 792 12 286 11 792 (654) 1
Slide 26: Earnings: underlying earnings momentum sustained
Strategic Highlights Business Review Financial Review Outlook & Priorities Earnings | Underlying earnings momentum sustained Earnings per share cents BEPS HEPS Reported Reported Adjusted +5.5% +21.5% Cents per share FY26 FY25 FY25 BEPS 719.5 566.0 681.7 719.5 708.5 681.7 Property, plant and equipmen
Slide 27: Strong financial position: supporting strategic flexibility
Strategic Highlights Business Review Financial Review Outlook & Priorities Strong financial position | Supporting strategic flexibility Net debt Debt maturity profile Rm Rm Export credit FY26 FY25 % 2 500 agency (ECA) Cash balances 7 723 11 054 (30.1) 2 000 loans Term loans Interest bearing debt 6 5
Slide 28: Capital expenditure: continued investment in data-led growth areas
Strategic Highlights Business Review Financial Review Outlook & Priorities Capital expenditure | Continued investment in high-demand data-led growth areas Capex spend and intensity Rm Capex intensity (%) Capex allocation % Focus on ROIC prioritises 6 434 5 827 FY26 FY25 high-return opportunities 5%
Slide 29: FCF comparison: resilient cash flow performance
Strategic Highlights Business Review Financial Review Outlook & Priorities FCF comparison | Resilient cash flow performance underpins value creation Free cash flow Reported Reported Variance Rm FY26 FY25 % Cost optimisation and Cash receipts from customers 45 389 44 484 2.0 structural efficiencies C
Slide 30: Cash generation: enabling enhanced shareholder returns
Strategic Highlights Business Review Financial Review Outlook & Priorities Cash generation | Enabling enhanced shareholder returns Free cash flow Rm 896 12 480 872 1 910 45% returned to 6 295 shareholders 1 381 4 299 934 297 3 068 EBITDA Other 1 Working Lease Capex Operating Net finance cost Tax pai
Slide 31: Dividend declared: policy revised supporting an ordinary dividend increase
Strategic Highlights Business Review Financial Review Outlook & Priorities Dividend declared | Policy revised supporting an ordinary dividend increase Dividend per share declared Dividend policy revised cents Ordinary Ordinary dividend Special increased 261 65.7% 270 98 Dividend 40% - 60% 163 of FCF
Slide 32: Medium term guidance: on track to deliver in evolving markets
Strategic Highlights Business Review Financial Review Outlook & Priorities Medium term guidance | On track to deliver in evolving markets Metrics Medium term guidance FY26 Group revenue Mid-single digit 1.4% EBITDA margin 25% - 27% 28.1% Capex 12% - 15% 14.5% intensity Net debt 0.5x – 1.5x 0.5x to E
Slide 33: Capital allocation priorities: returns-led and disciplined
Strategic Highlights Business Review Financial Review Outlook & Priorities Capital allocation priorities | Returns-led and disciplined EBITDA margin enhancement and increased profitability Smart capex deployment driving value creation • Deliver disciplined, data-led growth execution • Maintain disci
Slide 34: Outlook & Priorities
Strategic Highlights Business Review Financial Review Outlook & Priorities Outlook & Priorities Serame Taukobong Group CEO Annual Results Presentation FY2026 34
Slide 35: Executing with discipline. Building momentum
Strategic Highlights Business Review Financial Review Outlook & Priorities Executing with discipline. Building momentum To ensure we meet our medium-term commitments Sustain Build on Improve BCX Balance growth Allocate capital Mobile Openserve’s execution and and cost to data-led growth performance
Slide 36: Resilient Telkom ecosystem in complex geopolitical environment
Strategic Highlights Business Review Financial Review Outlook & Priorities Resilient Telkom ecosystem in complex geopolitical environment • Complex and unpredictable • Increased cost pressure: geopolitical environment War related inflation and • Plays out in political energy economy • Customers and
Slide 37: OneTelkom: One platform for data-led quality growth
Strategic Highlights Business Review Financial Review Outlook & Priorities OneTelkom: One platform for data-led quality growth Unrivalled Backbone of Continued Committed Focused infrastructure SA’s digital future, execution of to sustainability relentlessly drives results serving our data-led strate
Slide 38: Q&A
Strategic Highlights Financial Review Business Review Outlook & Priorities Q&A Annual Results Presentation FY2026 ‹#›
Slide 39: Thank you
Strategic Highlights Business Review Financial Review Outlook & Priorities Thank you Annual Results Presentation FY2026 39
Slide 40: Appendix
Strategic Highlights Business Review Financial Review Outlook & Priorities Appendix Annual Results Presentation FY2026 40
Slide 41: Benchmark of mobile growth
Strategic Highlights Business Review Financial Review Outlook & Priorities Benchmark of mobile growth Annual Results Presentation FY2026 41
Slide 42: Continued Consumer revenue growth, with profitability momentum
Strategic Highlights Business Review Financial Review Outlook & Priorities Continued Consumer revenue growth, with profitability momentum Consumer ARPU Consumer EBITDA/ revenue EBITDA margin 3.9% 2.2% 20.8% Mobile Pre-paid EBITDA 23.3% Fixed Post-paid EBITDA margin Other1 441 Blended ARPU 452 25 798
Slide 43: Network expansion supports growth
Strategic Highlights Business Review Financial Review Outlook & Priorities Network expansion supports growth Mobile data Mobile data Mobile sites subscriber growth traffic integrated 31.1% 18.5% 6.5% 8 420 19 962 7 907 2 084 1 759 15 226 ‘000 petabytes FY25 FY26 FY25 FY26 FY25 FY26 Annual Results Pr
Slide 44: Beacon of competitiveness
Strategic Highlights Business Review Financial Review Outlook & Priorities Beacon of competitiveness Annual Results Presentation FY2026 44
Slide 45: Ongoing migration to fibre drives broadband growth
Strategic Highlights Business Review Financial Review Outlook & Priorities Ongoing migration to fibre drives broadband growth Fixed Carrier Enterprise Broadband services business services 16.4% 4.0% services 2.9% 21 987 943 44 663 21 149 43 346 810 ‘000 Circuits Circuits FY25 FY26 FY25 FY26 FY25 FY2
Slide 46: Abbreviations and definitions
Strategic Highlights Business Review Financial Review Outlook & Priorities Abbreviations and definitions AI Artificial intelligence Free cash flow is cash generated from operations before ARPU Average revenue per user FCF dividend paid, less cash paid for capital expenditure and repayment of princip