Agenda

1. Agenda • Introduction and opening - Mr. Chose Choeu remarks • Performance Review - Mr. Motlatsi Nzeku • Financial Highlights - Mr. Kaushik Patel • Telkom Foundation - Ms. Nkhetheleng Vokwana • Legislation & Regulations - Mr. Victor Moche • Concluding Remarks - Mr. Victor Moche Question and Answer Session

2. Performance Review Motlatsi Nzeku

3. Segment Business line Legal entity Wireline Fixed-line (Voice & Data) Telkom Telkom Directory Services Directories Wireless Vodacom Mobile Swiftnet Wireless data Group operational structure

4. Six line roll-out targets Cumulative licence targets achieved for 5 years ended 7 May 2002

5. Ten service quality targets Licence targets achieved at 7 May 2002

6. 3 Minute local call Source: Tariffica

7. 3 Minute long distance call ZAR 8.00 8.65 7.00 7.81 6.00 6.34 6.10 5.83 5.00 5.57 5.10 4.19 4.63 4.00 4.14 3.00 3.18 3.18 2.32 2.00 2.03 1.00 0.00 Poland Turkey Greece Portugal Hungary (Argentina) Telefonica DOT (India) South Africa Entel (Chile) Telesp (Brazil) Czech Republic Telefonica (Peru) Emerging Average CANTV (Venezuela)

8. Residential connection Source: Tariffica July 2002, Telkom current rates, exchange rate 18/2/02

9. Payphones increasing accessibility 10% growth in payphones in 2002 Five year CAGR of 16% in payphones

10. LAN services Myring Hosting Ringback Security PD Connect VIPLink Cellsaver VIPDial CyberTrade Xchange Launch of new products Fixed Voice Enhanced Voice Wireless Data Transport Enhanced Data IT Services Postpaid Talkplus Contract Leased lines Managed networks Internet access Prepaid Vodago ISDN VSAT Coin payphone IP Multi-media Community phones Card payphone 4U Packet Community containers Developing solutions to meet customer demands

11. Satisfied Customers Top 3 Box Scores Percentage of satisfied customers

12. Highlights in 2002 • Completed licence obligations on 7 May 2002 • Substantially completed tariff rebalancing • Renegotiated interconnection agreements • Group operating cash flow grew by 16% to R11.3bn • Group revenues grew by 8% to R34.0bn • Group capex decreased by 7% • EPS grew by 17% to 343.8 cents

13. Achievements • World class network • Launch of Afrolinque (SAT-3/WASC/SAFE) • Vodacom acquired 51% interest in a company holding a GSM licence in Democratic Republic of Congo • Vodacom acquired a licence in Mozambique and established a new company with 98% shareholding • Switched hubbing and transit traffic growth of 70% • ISDN channels growth of 25% • Prepaid subscriber growth of 47% • Payphone unit growth of 10% • Launched ADSL in August 2002 • Advanced preparations of IPO

15. Kaushik Patel Financial Highlights

16. Revenue 33 970 31 457 8 EBITDA 10 493 9 862 6 Depreciation and amortisation (5 243) (4 987) 5 EBIT 5250 4875 8 Investment income 580 617 (6) Finance charges (3 066) (3 041) 1 Minority interests Net income for year Taxation (792) 57 1 915 (742) 1 641 68 7 17 (16) PAT 1972 1709 15 Group income statement 31 March(Rm) 2002 2001 % change

17. Group revenue – 31 March 2002 Group Revenue growth 8% Group revenue growth 2002 fiscal year is as a result of: • Increased pre-paid and payphone services • Increased data connectivity • Increased mobile subscribers and revenue 31 March 2002 SA GAAP, audited After inter-company eliminations

18. Wireline segment revenue growth 4% SA GAAP, audited After inter-company eliminations Wireline segment revenue

19. Segment contribution Operating profit 31 March 2002 Revenues 31 March 2002 SA GAAP, audited After inter-company eliminations SA GAAP, audited After inter-company eliminations

20. Non-current assets 43 689 39 832 10 Current assets 11 325 12 716 (11) Total assets 55 014 52 548 5 Capital and reserves 17 398 14 797 18 Interest-bearing debt 23 818 24 960 (5) Provisions and deferred taxation 3 031 2 939 3 Current liabilities 10 431 9 734 7 Equity and liabilities¹ 55 014 52 548 5 Group balance sheet 31 March(Rm) 2002 2001 % change 1. Minority interest included

21. Telkom Foundation Nkhetheleng Vokwana

22. Background Telkom SA is deeply committed to the South African democracy and good corporate citizenship. Core to the company’s philosophy is a desire to improve the quality of life of all South Africans. In 1998, with a budget of R 100 million over five years, the company launched The Telkom Foundation, which enables Telkom to play a more active role in the socio-economic development of South Africa. Its principal objective is to contribute to the transformation of disadvantaged communities through sustainable development programmes. These programmes help address the disparities between the rich and the poor and between urban and rural communities.

23. Telkom Foundation - Mission The Telkom Foundation’s Mission is to identify, develop and implement community development initiatives geared towards sustainable development and a culture of Empowerment

24. Telkom Foundation – Objectives 1/ • To promote Maths, Science and Technology at the different levels of our educational system in order to help grow South Africa’s skills base • To provide funding and other resources for effective education and training to: • 100 supercentre schools • 45 institutions for people with disabilities which include community centres • 102 dedicated (Maths and Science) schools (Dinaledi) • 200 Thintana Schools and 18 MSTP Hubs • To provide financial and other resources to groups with disabilities

25. Telkom Foundation – Objectives 2/ • To develop a culture of empowerment and sustainable economic growth • To provide financial and other resources to disadvantaged communities in order to ensure sustainable development • To nurture and develop the youth of our rural and poor communities • To assist in disaster relief efforts

26. Telkom Foundation – Focus Areas Maths, Science and Technology Education and Training Empowerment of Women, children and people with disabilities Telkom Exporatorium

27. Maths, Science and Technology • 102 Dedicated Schools (Dinaledi) • Telkom Department of Communications World Internet Laboratories (DOCWILS) • Telkom Super Centre Computer Labs • Think Quest • University of the North (disabled person project)

28. Education and Training • Education Africa Forum • I-Africa Entsha • Maths, Science Teacher of the Year • Rally to Read • Sunday Times ReadRight • Most improved Schools Awards • Telkom Careers and Training 2002 Expo • Sediba • Ikaleng

29. Empowerment Projects • People with disabilities/Special Schools Projects • Enterprise • Gateway • National Plan of Action (NPA) • Telkom Family Helpline • Ucingo

30. General Projects • Ad hoc/New Projects • Adopt A Project • Exploratorium • Disaster Relief

31. Going Forward • For 2002/2003 the Telkom Foundation will focus on: • 102 Dedicated Schools • People with disabilities/ Community Centre

32. Telkom Foundation – Budget Distribution Education 11% Science and Technology 42% General 15% Empowerment 32% Telkom Foundation planned spending ratio for 2003 financial year

33. Economic Empowerment

34. Legislation &Regulations Victor Moche

35. Key Legislation impacting Telkom • Telecommunications Amendment Act of 2001 • Regulation of Interception of Communications and Provision of Communication related Information Bill • Promotion of Access to Information Act • SITA Amendment Bill • Electronic and Communications Transactions Act • Electronic Communications Security (Pty) Ltd Bill

36. Telecoms Amendment Act 2001 • Managed liberalisation • Facility-based competition • Licencing of new operators • A second network operator (SNO) • An international “carrier of carriers” licence (Sentech) • A multimedia licence (Sentech) • Under serviced area licences (SMME) • Edu-net Discount Rate

37. Competitive Environment SENTECH SNO SMME’s Telkom Competitors PTN’s Cellular 2005? VANS

38. Regulations: Carrier Pre-Selection • Carrier pre-selection to be phased in by no later than 31 December 2003? • Assumed that most per operator and per subscriber set-up costs (including maintenance costs) and all system set-up costs are recovered. • Costs may not be fully recovered. • Significant additional CAPEX required • Premature introduction will discourage infrastructure build-out

39. Interconnection with SMMEs • Draft Regulations and corrections have been published • Asymmetrical termination charges with a minimum differential of 30% in favour of USAL for national long distance services • Symmetrical termination charges for telecoms services within licensed area • Symmetrical termination charges to mobile cellular operators

40. Regulation of Interception of Communications and Provision of Communications Related Information Bill Synopsis of Bill To regulate authorised interception and monitoring of communications for national security and law enforcement and to prohibit telecommunications that cannot be monitored. Impact on Telkom • Period and storage of information • Costs and Cost Recovery • Prescription of Tariffs & Technology • Collection of Consumer Details

41. Promotion of Access to Information Act Synopsis of the Act To give effect to constitutional right of access to any information held by the State and any other person that is required for the exercise and protection of any rights. Impact on Telkom • Compile information manuals (as public & private) • Appointment of information officers • Telephone directory entries • Information to the Human Rights Commission

42. SITA Amendment Bill Synopsis of Bill To improve service delivery to the public and to promote the efficiency of departments and organs of state through the use of IT Impact on Telkom • SITA Exclusivity on authentication • SITA Monopoly on Govt PTNs • Cost effective and efficient service?

43. Electronic Communications and Transactions Act • Synopsis of Act To facilitate and regulate electronic communications and transactions. To entrench the legitimacy, trust, security and integrity of electronic communications and transactions whilst at the same time safeguarding the interests of consumers against commercial malpractice and exploitation • Impact on Telkom • Delayed provisioning of services – cooling off period • Effects of the Interception and Monitoring Act – ID verification • Increased administration of critical databases • Cost of compliance with regulations – infrastructural and procedural rules

44. Electronic Comms Security (Pty) Ltd Synopsis of the Bill To ensure the protection and security of government electronic communications. Impact on Telkom • Encroachment on PSTS domain • Licensing and tariffs at variance with Telecommunications Act • Equity in other companies – industrial bias • Application of the Bill to private sector – critical communications infrastructure • Verification and approval of electronic communication products and services by Comsec

45. Major Costs-Implication Legislation and Regulation • E-Rate • Free Calls • Number Portability • Carrier Pre-selection • Frequency Spectrum • Universal Service Fund Contribution • Rate Regime/Price Control • COA/CAM Compliance • USAL Interconnection • Regulation of Interception of Communications and Provision of CRI – Storage & Hardware

46. Concluding Remarks Victor Moche

47. Strategic goals and objectives • Our two primary strategic goals continue to focus overall priorities within the group • Increase shareholder value • Position the group for increased competition • Key strategic objectives support long-term goals • Expand integrated service offerings • Grow and successfully compete in core markets • Achieve greater customer satisfaction • Improve corporate performance • Continue to invest in employees

48. Positioned for the future • Telkom is ready to operate in a more competitive environment • We have a world-class network • We are creating a competitive culture • We have strong international partners • We are constantly improving the customer experience • We have what it takes to be the communications provider of choice • We continue to reduce costs and achieve greater efficiencies to derive higher returns for shareholders