This report covers the financial year 1 April 2022 to 31 March 2023 and includes significant subsequent events up to the report’s approval date.
We prepared this report for our providers of
financial capital and other stakeholders and used
the
The report complies with the JSE Listings Requirements, specifically the corporate governance requirements in paragraph 3.84 of the JSE Listings Requirements. The report also communicates Telkom’s progress towards achieving the United Nations Global Compact regarding human rights, labour, the environment, and our anti-corruption efforts. Also refer to ESG Strategy, where we provide a summary of the ESG considerations for this report.
Our report focuses on material themes that substantively impact our ability to create value for our stakeholders over time. Refer to Material aspects of our value creation for our materiality determination process and material themes. This report shows the connection between our material themes, strategy, governance, performance and prospects. It addresses our divisions and our subsidiaries (business units), unless otherwise stated.
We considered the disclosure guidelines of King IV while preparing the 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.
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.
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 online.
IBIS ESG Assurance provided assurance over certain non-financial indicators in the report. Assured nonfinancial indicators are indicated with this icon. Please refer to the FY2023 Independent Assurance Report available online.
The Group Exco, Audit Committee, Social and Ethics Committee and the Board reviewed and approved this report. The Board takes ultimate responsibility for the report. Refer to the Board’s approval statement on Report boundary and approval.
Our reporting suite as outlined below can be found at online.
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Integrated report, including the notice of AGM |
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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.
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 forward-looking statements.
All statements, other than statements of historical facts, including, among others, statements regarding our strategy, future financial position and plans, objectives, Capital Expenditure (capex), projected costs and anticipated cost savings and financing plans and projected levels of growth in the communications market, are forward-looking statements. Forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “expect”, “envisage”, “intend”, “plan”, “project”, “estimate”, “anticipate”, “believe”, “hope”, “can”, “is designed to” or similar phrases. However, the absence of such words does not necessarily mean 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 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 risk section of this report, refer to Enterprise risk management and compliance.
Telkom cautions readers not to place undue reliance on these forward-looking statements. All written and verbal forward-looking statements attributable to Telkom, or persons acting on Telkom’s behalf, are qualified in their entirety by these cautionary statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this document, so that they conform either to the actual results or to changes in our expectations.
Any forward-looking financial information disclosed in this report for the year ended 31 March 2023 has not been reviewed or audited or otherwise reported on by our joint independent external auditors.
Certain financial information presented in the results announcement released on 13 June 2023 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 released on 13 June 2023 was reported on by the Group’s joint independent external auditors. Their unmodified reasonable assurance report was prepared in terms of ISAE 3420 and is available for inspection online.
The pro forma financial information has been prepared excluding the impact of voluntary severance package (VSP), voluntary early retirement package (VERP) and S189 costs, the impairment of assets charge in the current year and the related tax impact on results and the write-up of invested capital of BCX and Gyro to fair value (the “pro forma adjustments”).
This constitutes pro forma financial information to the extent that it is not extracted from the segment disclosure included in the audited consolidated abridged financial statements for the year ended 31 March 2023. This pro forma financial information was presented to eliminate the impact of the pro forma adjustments from the audited consolidated abridged financial statements for the year ended 31 March 2023 to achieve a comparable year-on-year analysis and show the underlying performance of the business. The pro forma adjustments were determined in terms of the Group accounting policies disclosed in the audited consolidated abridged financial statements for the year ended 31 March 2023.
The joint independent external auditors’ audit report by PricewaterhouseCoopers Inc. and SizweNtsalubaGobodo Grant Thornton Inc. does not report on all the information contained in this integrated report. Shareholders are therefore advised that to obtain a full understanding of the nature of the joint independent external auditors’ engagement, they should obtain a copy of the joint independent auditors’ audit report together with the accompanying financial information from Telkom’s website.
The Board of Directors takes full responsibility for the preparation of this integrated report, including pro forma financial information that has been correctly extracted from the underlying audited consolidated abridged financial statements. The information contained in this document is also available on Telkom’s investor relations website.