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Contributing to South Africa’s growth Sizwe Nxasana CEO, Telkom SA Limited 4 March 2005

Contributing to South Africa’s growth

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Contributing to South Africa’s growth. Sizwe Nxasana CEO, Telkom SA Limited 4 March 2005. The Telkom delegation [PMG note: photographs not included]. Sizwe Nxasana CEO. Nkenke Kekana GE: RAPP. Nombulelo Moholi CSMO. Nkhetheleng Vokwana CEO: Foundation. Charlotte Mokoena GE: CFL. - PowerPoint PPT Presentation

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Page 1: Contributing to South Africa’s growth

Contributing to South Africa’s growth

Sizwe NxasanaCEO, Telkom SA Limited 4 March 2005

Page 2: Contributing to South Africa’s growth

The Telkom delegation[PMG note: photographs not included]

Sizwe NxasanaCEO

Nkenke KekanaGE: RAPP

Nombulelo MoholiCSMO

Nkhetheleng VokwanaCEO: Foundation

Charlotte MokoenaGE: CFL

Lulu LetlapeGE: Corporate Comms

Page 3: Contributing to South Africa’s growth

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

Page 4: Contributing to South Africa’s growth

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

Page 5: Contributing to South Africa’s growth

Our buying power grows black business

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

BEE procurement spend Enterprise development

Building SMME capacity

• Price preference: a competitive edge when tendering

• Short term payment cycles and reserving tenders

• Training 905 BEE suppliers

Ranked South Africa’s Top Empowerment Company

Page 6: Contributing to South Africa’s growth

Growing new businesses

“Not many companies are interested in developing you. Most want you to perform, and that’s that. Telkom is one of the few companies willing to go further. You don’t find that often”

Mpontso Mohapeloa, owner of Electrohaps, a computer consumable company

Page 7: Contributing to South Africa’s growth

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)

Page 8: Contributing to South Africa’s growth

▲ 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

Building a knowledge economy

Voted Community Builder of the Year in 2004

Page 9: Contributing to South Africa’s growth

“At Telkom I am getting skills for free and, because I get an allowance, I am also helping my family.”

Wendy Somzana, learner at Telkom’s 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

Building a knowledge economy

Page 10: Contributing to South Africa’s growth

82 8679

Board ExecutiveCommittee

Topmanagement

An empowered leadership team

7 members: 6 Black people

Including 1 black woman

24 positions: 19 Black people

Including 5 black women

11 members: 9 Black people

Including 3 black women

Black representation (%)

Vision is set by representative leadership

Page 11: Contributing to South Africa’s growth

21

62

1994 2004

A representative, knowledgeable workforce

▲ 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

4

41

1994 2004

Black supervisor representation (%)

Black operational representation (%)

Reflecting society in our workforce

Page 12: Contributing to South Africa’s growth

▲ 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

A new approach to reduce staff numbers

Page 13: Contributing to South Africa’s growth

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

Page 14: Contributing to South Africa’s growth

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

Page 15: Contributing to South Africa’s growth

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

Page 16: Contributing to South Africa’s growth

Thank you