Trading Statement Telkom SA SOC Limited Registration number 1991/005476/30) JSE share code: TKG ISIN: ZAE000044897 ("Telkom" or “the company”) Trading Statement Shareholders are advised that Telkom is currently finalising its results for the twelve months ended 31 March 2016, which will be released on the Stock Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on or about 06 June 2016. In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE, shareholders are advised that reported headline earnings per share (HEPS) is expected to decrease by 40% to 50% when compared to the prior corresponding period. The reported basic earnings per share (BEPS) are expected to decrease by 20% to 30%. The 31 March 2016 results to be reported on includes the impact of the company’s voluntary early retirement (VERP) and voluntary severance packages (VSP) offered to employees over the twelve month period of approximately R2.2 billion with a related tax impact of approximately R500 million that are not considered results from normal business operations. During the period, approximately 4200 employees accepted VERPs or VSPs. On a normalised basis, i.e. excluding the impact of voluntary early retirement and voluntary severance packages and the related tax benefit, HEPS is expected to increase by 10% to 20% and BEPS is expected to increase by 30% to 40%. The main difference between BEPS and HEPS is increased profit from the sale of property recorded during the twelve months to 31 March 2016. 31 March 2015 As Expected 31 March 2016 previously reported (cents) Basic earnings per share 20%-30% 122 to 183 cps Reported 607.7 lower lower Normalised 584.1 30%-40% 175 to 233 cps higher higher Headline earnings per share 31 March 2015 As Expected 31 March 2016 previously reported (cents) Reported 597.9 40%-50% 239 to 299 cps lower lower Normalised 574.3 10%-20% 58 to 115 cps higher higher The above earnings guidance includes the performance of Business Connexion (BCX), which has been incorporated for seven months. The above information has not been reviewed nor reported on by Telkom’s independent external auditors. The Group's results for the twelve months ended 31 March 2016 will be released on SENS on or about 06 June 2016 with a presentation in Johannesburg on the same day. The presentation will be available for all stakeholders on the Group's website, www.telkom.co.za/ir. Centurion 09 May 2016 Sponsor The Standard Bank of South Africa Limited Date: 09/05/2016 03:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.