TELKOM SA SOC LIMITED - Trading Statement

Trading Statement

Telkom SA SOC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1991/005476/30)
JSE share code: TKG
ISIN: ZAE000044897
("Telkom" or “the Company” or “the Group)


Trading Statement


In terms of paragraph 3.4(b) of the JSE Limited (“JSE”) Listings 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 2018, which will be
released on the Stock Exchange News Service (“SENS”) of the JSE on 28 May 2018.

Shareholders are advised that Telkom’s annual results performance for the year ended 31 March 2018 is in
line with the revised guidance that was communicated on 10 November 2017. The reported headline
earnings per share (HEPS) and basic earnings per share (BEPS) are expected to decrease between 15%
and 25% when compared to the prior year. This is due to a significant increase in our effective tax rate from
the 15.2% in the prior year to slightly below the South African corporate tax rate and higher labour costs
driven by both inflationary and market related adjustments.

The prior year’s reported earnings were impacted by voluntary severance packages (VSPs) and voluntarily
early retirement packages (VERPs) of R66 million with a related tax benefit of R13 million.

                                 31 March 2017                                          31 March 2018
                                 Reported earnings         Expected change              Expected earnings

Basic earnings per share

Reported                         738.8 cents               15% – 25% lower, or          628.0 – 554.1 cents
                                                           111 - 185 cents lower

Excluding VSP and VERP           749.1 cents               15% – 25% lower, or          636.7 – 561.8 cents
                                                           112 - 187 cents lower              

Headline earnings per share

Reported                         721.1 cents               15% – 25% lower, or          611.1 – 541.1 cents
                                                           110 - 180 cents lower              

Excluding VSP and VERP           731.4 cents               15% – 25% lower, or          621.7 – 548.6 cents
                                                           110 - 183 cents lower              

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 2018 will be released on SENS on 28
May 2018 with a presentation in Centurion on the same day. The presentation will be available for all
stakeholders on the Group's website, www.telkom.co.za/ir.


Centurion
18 May 2018

Sponsor
The Standard Bank of South Africa Limited

Date: 18/05/2018 02:24:00 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.