TELKOM SA SOC LIMITED - Trading statement

Trading statement

Telkom SA SOC Limited
Registration number 1991/005476/30)
JSE share code: TKG
ISIN: ZAE000044897
("Telkom" or “the company”)

Trading Statement

In terms of paragraph 3.4(b) of the JSE Limited (“JSE”) Listing Requirements, companies are
required to publish a trading statement as soon as they have reasonable certainty that the
financial results for the next period to be reported upon will differ by at least 20% from those
of the previous corresponding period.

Telkom is currently finalising its annual results for the twelve months ended 31 March 2017,
which will be released on the Stock Exchange News Service (“SENS”) of the JSE on 5 June
2017.

The prior year’s reported earnings were impacted by voluntary severance packages (VSPs)
and voluntarily early retirement packages (VERPs) of R2 193 million with a related tax benefit
of R 517 million while the current year impact is significantly lower at R66 million with a related
tax benefit of R13 million.

As a result, the reported headline earnings per share (HEPS) is expected to increase between
110% and 130% when compared to the prior year. The reported basic earnings per share
(BEPS) is expected to increase between 60% and 80%.

Excluding the impact of VSPs and VERPs and the related tax benefit, HEPS is expected to
increase between 0% and 20% and BEPS is expected to be between 10% lower and 10%
higher than the prior year.

                                  31 March 2016                                    31 March 2017
                                Reported earnings        Expected growth          Expected growth
                                      (cents)                   (%)                    (cents)

Basic earnings per share
                                                                                 264 cps to 352 cps
Reported                            439.4 cents          60% – 80% higher
                                                                                      higher


Excluding VSP and VERP              767.2 cents       10% lower – 10% higher 77 cps lower to 76 cps
                                                                                     higher


Headline earnings per share


Reported                            330.0 cents        110% – 130% higher        363 cps to 429 cps
                                                                                       higher
Excluding VSP and VERP              657.9 cents        0% – 20% higher             0 cps – 131 cps
                                                                                       higher

The above earnings include the performance of BCX, which has been incorporated for twelve
months compared to seven months in the prior year.

The above information has not been reviewed nor reported on by Telkom’s independent
external auditors. The Group's annual results for the twelve months ended 31 March 2017 will
be released on SENS on 5 June 2017 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
11 May 2017


Sponsor
The Standard Bank of South Africa Limited

Date: 11/05/2017 04:55:00 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.