1. Company Forum 29 May 2012

2. FROM SERVICE TO RETAIL 5 TDS evolved from primary service to primary sales orientation Dynamic’s of retail environment – flexibility, change, adapt TDS to adapt to specific challenges in Mobile and SMBS TDS to be aligned with NGNEC opportunities Staffing in stores to be aligned with opportunities and market forces in and around stores Knowledge base, skills levels, customer requirements, Business Unit requirements and churn are among important drivers Multi functional operations within the retail stores and the width and depth of products and services on offer (Mobile/Business/Consumer). Need arose to transfer TDS employees between stores, within Areas, Regionally and Nationally

3. ALIGNMENT REQUIRED -SELECTION CRITERIA 3 The alignment of the selection criteria with standard practise and business needs are essential to ensure consistency in application throughout the TDS operations. Combination of relevant criteria:  LIFO/FIFO  Skills mix requirements (sales/service)  Functions that have to be performed – 8.Ta.SMBS, TBM.  Matching of staff profile with prospected targeted customer profile  Customer base/profile and market demand preference  Technology deployment in area - NGNEC  Agent performance

4. IMPLEMENTATION 4 Principles as per Telkom/Organised Labour 3 rd Party Retail Outlet discussions. DION WIRED implementation Telkom Transfer Policy to apply Benefits as per current Transfer Policy Transfers between stores, within Area, within Region, National requirements.