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TKG TL24 TL25 TL28 TL20 TL26 TL22 TL23 TL30 TL31 TLC09 TLC08 TL27 TL29
Trading statement

Telkom SA SOC Limited
Registration number 1991/005476/30)
JSE Share Code: TKG
JSE Bond Code: BITEL
ISIN: ZAE000044897

("Telkom" or the company)

Trading Statement

Shareholders are advised that Telkom is currently finalising its interim results for the six months ended 30
September 2019.

In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE, shareholders are advised that
reported headline earnings per share (HEPS) and the reported basic earnings per share (BEPS) are expected to
decrease by 30% to 40% compared to the corresponding period in the prior year.

This is due to a significant increase in net finance charges and fair value movement of between 120% to 130%
from R443 million reported in the prior year impacted by the International Financial Reporting Standards (IFRS16)
on finance charges. Excluding the impact of IFRS16, net finance charges and fair value movement increased
between 80% to 90% from R443 million reported in the prior year attributable to;

   the increase in the finance charges largely relates to increased borrowing in support of the investment in our
    mobile business;
   cost of hedging increase as a result of the increase in the Forward Exchange Contracts (FEC) order book;
    and
   exchange and fair value movements as a result of foreign exchange adjustments due to market conditions
    and the conversion of floating rate debt to fixed rate debt using interest rate swaps in line with our guideline.
    Overall in the period under review, this net movement represents a loss versus a reported gain in the
    corresponding period of the prior year.

The impact of IFRS16 on profit after tax was immaterial between R50 million to R60 million.

The following table includes normalised earnings which exclude the voluntary severance packages and voluntary
early retirement packages (VSP/VERP) incurred in the prior period of R282 million and the related tax impact of
R80 million and are on a pro-forma basis. The normalised earnings are the responsibility of the directors and have
been presented for illustrative purposes only. Because of their nature, normalised earnings may not fairly present
Telkoms earnings.
                                      30 September 2018         Expected range         30 September 2019
                                      As previously             of decrease            Expected results
                                      reported                                         (cents)
                                      (cents)
Basic earnings per share
    Reported                          276.0                     30%-40% or              193.2 to 165.6 cps
                                                                82.8 to 110.4 cps

    Normalised                        316.6                     40%-50% or              190 to 158.3 cps
                                                                126.6 to 158.3 cps
Headline earnings per share
   Reported                           288.0                     30%-40% or              201.6 to 172.8 cps
                                                                86.4 to 115.2 cps
  
   Normalised                         328.6                     40%-50% or              197.2 to 164.3 cps
                                                                131.4 to 164.3 cps

The above information has not been reviewed nor reported on by Telkoms independent external auditors. The
Group's results for the six months ended 30 September 2019 will be released on SENS on 12 November 2019
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
5 November 2019


Sponsor
Nedbank Corporate and Investment Banking

Date: 05/11/2019 02:03:00
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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.

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