The basis of preparing our report

We report according to the six capitals to provide a balanced view of our value creation.

We considered the disclosure guidelines of King IV while preparing our report. We applied and explained the 16 relevant principles and demonstrated how we achieved governance outcomes. A King IV application report, which sets out the principles and summarised application, is available on our website at www.telkom.co.za/ir/Governance/Governance.shtml. King IV principle disclosures are indicated with this icon  throughout the report.

Combined assurance

We follow a combined assurance approach, which integrates our internal audit function, TGIA, other independent assurers and risk management activities across the Group. TGIA assessed the completeness and accuracy of a sample of strategic, non-financial KPIs presented in this report. We are in the process of enhancing our combined assurance framework to be applied across all combined assurance functions.

PwC and SizweNtsalubaGobodo Grant Thornton Inc. are the joint independent external auditors. They provided assurance over our consolidated annual financial statements and expressed an unmodified opinion (refer to the Independent auditors’ report of the consolidated annual financial statements) which is available online at www.telkom.co.za/ir.

IBIS ESG Assurance provided assurance over certain non-financial indicators in the report. Assured non-financial indicators are indicated with this icon . For the FY2021 assurance certificate, please refer to www.telkom.co.za/ir.

This report was reviewed and approved by the Group Exco, Audit Committee, Social and Ethics Committee and the Board, and the Board takes ultimate responsibility. Refer to the Board’s approval statement.

Reporting suite

Our reporting suite as outlined below can be found at www.telkom.co.za/ir.

Report		Framework		Assurance provider
Integrated report, including the notice of AGM		IIRC <IR> Framework King IV Companies Act JSE Listings Requirements		Management Audit Committee Board IBIS ESG Assurance Internal audit Social and Ethics Committee
Consolidated annual financial statements		IFRS Companies Act JSE Listings Requirements		Management Audit Committee Board External auditors
Assurance statement		AA1000AS Standard		IBIS ESG Assurance
King IV application report		King IV		Management Internal audit Audit Committee Board
Annual results presentation		No framework		Management Audit Committee Board
B-BBEE certificate		Amended B-BBEE ICT sector codes		BEE online

Feedback

We recognise that integrated reporting and stakeholder information requirements continue to evolve. We welcome feedback to improve our integrated report. Comments and feedback can be sent to our investor relations team at telkomir@telkom.co.za.

Forward-looking statements

Many of the statements in this document, and verbal statements that may be made by Telkom or by officers, Directors or employees acting on Telkom’s behalf, constitute or are based on forwardlooking statements.

All statements, other than statements of historical facts, including, among others, statements regarding our strategy, future financial position and plans, objectives, capexes, projected costs and anticipated cost savings and financing plans, as well as projected levels of growth in the communications market, are forwardlooking statements. Forward-looking 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”, "forecast", "guidance" or similar phrases. However, the absence of such words does not necessarily mean that a statement is not forward looking. Forward-looking statements involve several 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 the strategic risks section of this report.

 

Telkom cautions readers not to place undue reliance on these forward-looking statements. All written and verbal forwardlooking statements attributable to Telkom, 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 report, so that they conform either to the actual results or to changes in our expectations.

Any forward-looking financial information disclosed in this report has not been reviewed or audited or otherwise reported on by our external joint auditors. The FY2020 comparatives of the results announcement are restated for the adoption of IFRS 15 and change in the presentation of cash flows.

Pro forma information

Certain financial information presented in the results announcement that was released on 24 May 2021 and in the integrated report constitutes pro forma financial information. This is presented for illustrative purposes only. Because of its nature, the pro forma financial information may not fairly present Telkom’s financial position, changes in equity and results of operations or cash flows. The pro forma financial information is the responsibility of Telkom’s Board.

The pro forma financial information contained in the results announcement that was released on 24 May 2021 was reviewed by the Group’s joint independent external auditors and their unmodified limited assurance report prepared in terms of ISAE 3420 relating to the results announcement is available for inspection at https://www.telkom.co.za/ir/financial/financialresults- 2021.shtml.

The financial information presented in the results announcement was prepared excluding the impact of the VSP, VERP and S189 costs, and the pro forma adjustments and constitutes pro forma financial information to the extent that it is not extracted from the segment disclosure included in the audited consolidated financial statements for the years ended 31 March 2020 and 31 March 2021. This pro forma financial information was presented to eliminate the impact of the pro forma adjustments from the consolidated financial results for the years ended 31 March 2020 and 31 March 2021 to achieve a comparable year-on-year analysis and show the underlying performance of the business.

Reported March 2020 and March 2021 refers to the March 2020 and March 2021 financial information, respectively, as included in the audited consolidated financial statements.

The joint independent auditors’ report by PwC and SizweNtsalubaGobodo Grant Thornton Inc. does not report on all of the information contained in the integrated report. Shareholders are therefore advised that, in order to obtain a full understanding of the nature of the joint independent auditors’ engagement, they should obtain a copy of the joint independent auditors’ audit report together with the accompanying financial information from Telkom’s website at: https://www.telkom.co.za/ir/financial/financial-results-2021.shtml.

The Directors of Telkom take full responsibility for the preparation of the integrated report including the pro forma financial information that was correctly extracted from the underlying audited financial statements.