Trading Statement Telkom SA SOC Limited Registration number 1991/005476/30 (Incorporated in the Republic of South Africa) JSE share code: TKG JSE bond code: BITEL ISIN: ZAE000044897 ("Telkom" or “the Group”) Trading Statement Shareholders are advised that Telkom is currently finalising its interim results for the six months ended 30 September 2021 (“H1 2022” or “the half year”), which will be released on the Stock Exchange News Service (“SENS”) of the JSE Limited (“JSE”) on 09 November 2021. 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 increase between 25% - 35% and basic earnings per share (BEPS) is expected to increase between 20% and 30% compared to the prior interim period ended 30 September 2020 (“the prior period”). This was mainly due to a significant decline in finance charges, fair value movements and foreign exchange losses compared to the prior period. Finance charges, fair value movements and foreign exchange losses declined by 35% from R1 012 million reported in the prior year to R659 million attributable to: • Our funding strategy and the ongoing settlement of maturing debt resulted in finance charges reducing by 25% from R723 million reported in the prior period to R541 million. Our conservative funding approach enabled us to strengthen our balance sheet by repaying maturing debt of approximately R1.1 billion in the prior financial year, with R900 million repaid in the first half of the prior financial year. In the first half of the current financial year, we settled a further R100 million maturing debt. Our funding strategy allowed us to balance our cost of debt ratio to 52:48 floating to fixed, this ensures that the risk to changes in interest rates remain balanced; and • Fair value movements and foreign exchange losses reduced significantly by more than 90% from R209 million reported in the prior period to R17 million, due to currency volatility and favourable foreign exchange hedging position. Notwithstanding the strong performance in earnings, the trading environment remains challenging. Telkom expects to sustain its topline revenue compared to the prior year and grow its profitability slightly ahead of revenue. 30 September 2020 30 September 2021 Reported Expected ranges Movement Expected Earnings (cents) (cents) earnings BEPS Reported 217.5 20%-30% higher 43.5 to 65.3 cps higher 261.0 to 282.8 cps HEPS Reported 219.0 25%-35% higher 54.8 to 76.7 cps higher 273.8 to 295.7 cps The difference between BEPS and HEPS recorded in H1 FY2022 is due to the impairment of assets and profit or loss on sale of assets. The above information has not been reviewed or reported on by Telkom’s independent external auditors. The Group's interim results for the six months ended 30 September 2021 will be released on SENS on 09 November 2021 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. A live presentation will be webcast (a link will be available on Group’s website) and a live broadcast on BDTV (Channel 412 on DSTV) at 12 pm. Centurion 29 October 2021 Sponsor Nedbank Corporate and Investment Banking, a division of Nedbank Limited Date: 29-10-2021 07:30:00 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.