1. Proposed Revisions: Bursary Policies & Processes National Company Forum 29 May 2012

2. 2 Background In order to remain competitive and maintain the leading edge it is necessary to review our policies and processes to ensure their value-add to the business An external benchmarking exercise was conducted to see what other companies are doing Current bursary policies and processes have been reviewed in line with the outputs of the benchmarking exercise with a view to “sharpening the saw” It was noted that some of our practices are outdated and not business aligned or focused.

3. Current Scenario 3

4. 4 Over the past few years... Budget cuts No external bursary recruiting for the past 3 years Automatic awarding of bursaries to employees children with no link/alignment to business requirements Skills loss Financial loss Increased unemployment Misaligned skills pipeline Inability to place graduates Barrier to EE transformation

5. 5 EE Profile – Current students Count% African12656% Indian3616% Coloured146% White4821% Count% Female8036% Male14464% Race ProfileGender Profile Total number of students: 224

6. 6 Current scenario Award bursaries based on applications from employees children that apply in the 4 pre-identified study fields and meet the minimum criteria No needs analysis/input from business No formal selection process Generic process (ie, 1 size fits all) Bursary awarding not fully supporting transformation strategies (EE/AA, disabled)

7. Future Scenario 7

8. 8 Revised approach: Full time bursaries Business-driven Needs based Core Focus: Young Talent Acquisition Talent based process Building a young talent skills pipeline for the organisation

9. 9 Guiding principles: Full-time bursaries Line to advise annually of their requirement – bursaries will be awarded in line with these needs Selection process with a focus on identifying top talent, with consideration to: - o Academic performance, extracurricular activities, leadership potential and learning potential o Applicants that have already completed their first year of study o Employees children who meet the criteria o Supporting the Company’s Employment Equity plan Bursary process will be more responsive to business needs Award fewer bursaries but have increased impact Line to be involved in the selection, orientation and placement of students - Line to carry the budget

10. 10 Revised approach: Part time bursaries Career development Personal development plan Core Focus: Career and personal development Business operations Increased skills base, engagement and retention

11. 11 Guiding principles: Part-time bursaries Study field does not necessary have to relate to your current job functions Study field: o To be aligned to personal and/or career development plan, and o Telkom business operations Application to be approved by promoter Looking at increasing time period in which to obtain qualification

12. 12 Actions completed and next steps Actions completed: ARIS process mapping completed for part time and full time bursary processes Bursary policies have been reviewed Draft policies have been compiled Inputs of Group HR Finance and HR Business Partners obtained Next steps: Socialise draft policies with National EE/Disability Task Team to ensure no barriers

13. Any questions/input? 13