Contributing to South Africa

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Contributing to South Africas growth
Sizwe Nxasana CEO, Telkom SA Limited 4 March 2005
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The Telkom delegationPMG note photographs not
included
Sizwe Nxasana CEO
Nkenke Kekana GE RAPP
Nombulelo Moholi CSMO
Nkhetheleng Vokwana CEO Foundation
Charlotte Mokoena GE CFL
Lulu Letlape GE Corporate Comms
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Entrenching broad-based share ownership

• ? Today more than 52 000 historically
  disadvantaged persons/groups who became
  shareholders in 2003 will benefit
• Value of investment has grown by almost 400
• Government will make free shares available as
  part of the stipulations of the Khulisa Trust
• Education to them in isiZulu, seSotho, English
  and Afrikaans

Creating a platform for your financial growth
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Message from a Khulisa shareholder
? When the opportunity arrived I thought that I
should just give it a try. I regret why I didn't
buy more shares Being part of Telkom's
shareholder make me think that I am part of the
history in making, and I feel that the growth
that we are experiencing now is just the tip of
an iceberg. Tseliso Job Mohlomi, Khulisa
shareholder
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Our buying power grows black business
BEE procurement spend
Enterprise development

• In 2004
• BEE procurement spend 57.8 of all purchases
• Actual value R4.6 billion of total of R7.9
  billion
• SMME R719 million
• Since 1997
• Total amount spent with BEE suppliers R26 billion

• Building SMME capacity
• Price preference a competitive edge when
  tendering
• Short term payment cycles and reserving tenders
• Training 905 BEE suppliers

Ranked South Africas Top Empowerment Company
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Growing new businesses
Not many companies are interested in developing
you. Most want you to perform, and thats that.
Telkom is one of the few companies willing to go
further. You dont find that often Mpontso
Mohapeloa, owner of Electrohaps, a computer
consumable company
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Growing new businesses
In the three years that we have been supplying
to Telkom, we have achieved zero defect
manufacturing We are a black-controlled
company that cascades empowerment down, a black
company that is empowering others Joe
Madungandaba, Chairman of Malesela Taihan
Electric Cable (M-Tec)
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Building a knowledge economy

• ? R23 million spent on graduate development in
  2004
• For 2005 year 91 black students and 202 females
  targeted
• ? Post graduate research through Centres of
  Excellence
• ? Using our call centres to train learners
• ? R40.5 million spent by Telkom Foundation on
  education training, empowerment and ICT
  infrastructure provisioning projects
• ? Connecting schools to the information society

Voted Community Builder of the Year in 2004
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Building a knowledge economy
At Telkom I am getting skills for free and,
because I get an allowance, I am also helping my
family. Wendy Somzana, learner at Telkoms Port
Elizabeth Call Centre
All the every day worries were taken away by
Telkom, and I could concentrate on my Honours
studies and excel. Zukhanye Kwinano, Fort Hare
Honours graduate, currently enrolled for her
Masters at Rhodes University
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An empowered leadership team
Black representation ()
11 members 9 Black people Including 3 black
women
7 members 6 Black people Including 1 black
woman
24 positions 19 Black people Including 5 black
women
Vision is set by representative leadership
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A representative, knowledgeable workforce
Black supervisor representation ()
? Females represent 26.7 of total
workforce ? Technical development programme
aimed at females and blacks ? Total spend on
training and development in 2004 R390 million
(more than 1 of company revenue) ? 294
persons with disabilities employed
Black operational representation ()
Reflecting society in our workforce
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A new approach to reduce staff numbers
? Offered voluntary further enhanced separation
packages to all managers and bargaining unit
employees ? One-year moratorium on all
retrenchments in bargaining unit ? Implemented in
cooperation with Communication Worker Union and
Alliance of Telkom Unions (Solidarity and
SACU) ? Professional support to employees through
financial and career planning and counceling
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Lowering the cost of doing business in SA

• ? Market liberalisation a positive development
  that will benefit the customer
• 10c reduction in long distance
• International calls reduced on average by 28
• Local calls increased by only 2.1c per minute
• Recent reduction in broadband rates
• ? Can expect further announcements based upon
  growth and demand

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Connecting more South Africans to the Internet

• ? Reduced prices on ADSL
• BusinessDSL 512 From R800 to R699 per month
• HomeDSL 512 From R680 to R599 per month
• ? Introduced entry level ADSL for home users
• ? Free T-zone sessions
• ? More than 50 000 ADSL customers

Reaching further to connect more South Africans
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Benefits of lower costs
? International data circuits via submarine
cable reduced between 10 and 25 ? Special
rates to Call Centre industry ? Introduced
international call cards at reduced prices to
Americas, Europe and Australasia
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Thank you