• Poverty and underdevelopment in South Africa
• Telkom's contribution in addressing poverty alleviation and underdevelopment in South Africa
• Question and answer session

• Chief Executive Officer: Mr. Sizwe Nxasana
• Chief Operating Officer: Mr. Shawn McKenzie
• Group Executive: Regulatory and Public Policy: Mr. Nkenke Kekana
• CEO: Telkom Foundation: Ms. Nkhetheleng Vokwana
• Group Executive: Centre for Learning: Ms Charlotte Mokoena

• Role of ICT in addressing poverty alleviation underdevelopment
• ICT Physical Infrastructure
• ICT Industries
• Utilisation of ICT in productive sectors of the society
• Training and People Development
• What has been Telkom's role as a major player in the ICT sector , in job creation and economic development as means of addressing poverty alleviation and under-development in South Africa
• Telkom's contribution

• Since April 1997, R24bn spent on suppliers with BEE ownership and management credentials. - R8bn of this spent on black-owned SMME
• Rigorous checks of credentials of BEE suppliers incl. Training programmes; social responsibility projects and working conditions of their employees.
• Wide range of support services in place:

• First to initiate a capacity-building drive targeted specifically at SMMEs in the ICT industry

• R 4.6 billion spent on BEE initiatives in the 2003/2004financial year.

• Government's BEE scorecard met and exceeded

• 1999 - Approximately R 1.5 million
• 2000 - Approximately R 3 million
• 2001 - Approximately R 3.9 million
• 2002 - Approximately R 4.8 million
• 2003 - Approximately R 5 million

Creating a culture of wealth in the South African economy

• Government - 37%
• Thintana - 15%
• Khulisa - 1%
• Retail - 1%
• Institutinal - 46%

When Telkom listed in 4 March 2003,

• Khulisa shares were sold - R22.40 per share
• Khulisa stokvels shares were sold - R26.40 per share
• General shares were sold - R28.00 per share

Since the Company listed, shareholders have benefited from the company's profit through dividend payments:

• To the Khulisa Trust
• General shareholders
• Telkom value its shareholders and is committed to continuously communicate and share important information to empower shareholders around shareholding issues.

People Development

• Supports our country's National Skills Development Strategy
• Supports Nepad Initiatives
• Invests annually on ongoing training and development
• Over 11 000 employees trained in first quarter this year
• 1072 managers and employees participated in leadership development programmes
• Infrastructure investment
• E-Learning and Skytrain
• Accelerating the development of technical and business skills among women & blacks

• In partnership with the lSETT SETA

• Post-graduate ICT research and development programme
• School of Accounting

• Telkom invested over R11m in bursaries, benefiting 787 participants. (including study loans for employee dependents)
• A total of 40 Graduates were placed in Telkom in the 2003/04 financial year
• The Technology Conversion Programme targets non-engineering/IT universities to identify and attract black and female students, and provide them with information support to convert to ICT studies

• 1994: Black (African, Coloured & Indian) - 47%
• 1994: White - 53%
• 2004: Black (African, Coloured & Indian) - 56%
• 2004: White - 44%

• To build a pool of talented performers with sound technological skills, business acumen and people skills.
• Over 150 females trained since 2002
• Female promotions went from 46% to 51%

• By Level
• Management 31
• Supervisory 46
• Operational 191
• Support 1
• Total 296
• By Gender
• Male 211
• Female 83
• By Region
• Corporate 66
• North - Eastern 36
• Gauteng 65
• Western 62
• Southern 20
• Eastern 46
• Central 10
• Total 296

• Need to sustain and improve performance
• Need to drive inefficiencies out of the system
• Right people in the right place doing the right things
• Align investment and disinvestment strategies (growth areas vs areas of decline)
• It is a proactive, structured and responsible way of avoiding and minimising job losses
• It is focused on employee development to ensure that we have the right people in the right place at the right time
• Provides an early warning system - Employees will know in advance of future changes in job requirements1.
• Gives employees a chance to own their career development trough training and entrepreneurial skills development

• Vehicle for Telkom's Alternative strategy to avoid/minimise job losses
• Only one of its kind in South Africa
• Employees receive full pay & benefits whilst in the Agency
• Afford employees 12 months to structure and develop their careers and work on projects whilst in the Agency
• Supported by Government

• Involuntary reductions - 4.3%
• Natural Attrition - 54.4%
• Voluntary Early Retirement - 8.0%
• Voluntary severance- -33.3%

• HIV/AIDS is a business threat that every company in South Africa has deal with as a business priority.
• Telkom started the Awareness Campaign internally in the Company from 1996.
• This has given us an opportunity to develop the programme called IV/AIDS Response Programme
• Acknowledged by industry to be one of the most practical and best- structured programmes in corporate S.A. today.

• Telkom has developed an Integrated Health Profile as the baseline for all Health strategies which serves to positions and prioritise employee well-being programs
• The Telkom Health profile consist of integrated categories of Physical (including HIV/AIDS), Psychological and Socio economic health.
• The HIV/AIDS strategy has four integrated components which aligns the company value system, namely:
• Prevention
• Awareness
• Education
• Support and Care
• Telkom has focused on HIV/AIDS support and Care through the provision of a Voluntary Counselling Testing and Treatment (VCT) program
• AllocatedR8 million for the provision of a VCT programme
• Enhanced HIV/AIDS Education through the establishment of Peer Education forums
• Enhanced awareness through advanced software application of HIV/AIDS E-earning programmes
• Sustained Prevention through provision of 1.2 million condoms per condoms per annum
• Focused on Integrated Health applications which will ensure employee ownership and company support to deployed initiatives

• Pilot VCT Programme within the Telkom Network Service management and Consumer Markets programme - October 2004
• Full rollout of VCT during November 2004
• Peer Educators programme to be deployed simultaneously with VCT programme during November 2004
• Integrated findings being monitored in sustainment of the Telkorn Health Profile across spectrum of Physical, Psychological and Socio-economical health

• Is to contribute to the positive transformation of disadvantaged communities.
• To contribute to the alleviate of poverty through programmes that will add value to the communities that we serve

• Education and training
• This area is aimed at providing knowledge, skills and behavioural changes respect to Mathematics, science and technology
• ICT planning
• This focus area refers to the planning and provisioning of network computer laboratories with Internet connectivity. It includes assistive devices at special schools and computer peripherals such s printers and scanners.
• Empowerment
• Empowerment of women, children and people with disabilities
• Developing capacity of women, children and people with disabilities
• Economic empowerment of people with disabilities
• Disaster Relief

With an annual spending of R40.5m the Foundation, through their projects run each year, contributes to the economic empowerment and alleviation of poverty in the country.

• Sports - Olympics, Swimming, Soccer, Golf
• Financial investment
• IPO, Broad Black Economic Empowerment
• Foreign investment- injection of capital into the country

Telkom looks forward to continue working with Parliament towards building an inclusive Information Society through our common efforts to use ICTs for a better life for all our people