ANNUAL FINANCIAL RESULTS. PRESENTATION for the year ended 31 December 2016

Transcription

1 ANNUAL FINANCIAL RESULTS PRESENTATION for the year ended 31 December 2016

2 Disclaimer 2 The operational and financial information on which any outlook or forecast statements are based has not been reiewed nor reported on by the external auditors. These forward-looking statements are based on management s current beliefs and expectations and are subject to uncertainty and changes in circumstances. The forward-looking statements inole risks that may affect the group s operational and financial information. Exxaro undertakes no obligation to update or reerse any forward-looking statements, whether as a result of new information or future deelopments. Where releant, comments exclude transactions which make the results not comparable. These exclusions are the responsibility of the group's board of directors and hae been presented to illustrate the impact of these transactions on the core operations performance and hence may not fairly present the group s financial position, changes in equity, results of operations or cash flows. These exclusions hae not been reiewed nor reported on by the group s external auditors.

3 Presentation format 3 1 Strategic context Mxolisi Mgojo, Chief Executie Officer 2 Operational performance and markets Nombasa Tsengwa, Executie Head - Coal Operations 3 Financial results Riaan Koppeschaar, Finance Director 4 Update on corporate actiity Riaan Koppeschaar, Finance Director 5 Market outlook Mxolisi Mgojo

4 1 Strategic context Mxolisi Mgojo

5 FY16 market recoery but uncertainty remains 5 Seaborne coal and iron price recoery supporting restructuring efforts Share price recoered to a high of R89/share as at 31 Dec 2016 from a low of R39/share in mid- Dec 2015 Significant changes in global political & economic landscape BREXIT referendum, US interest rates & European elections Index: 1 January 2016 = 100 RSA real GDP growth for FY16 at 0.4% from 1.26% in FY15 Continuing uncertainty of policy enironment on black economic empowerment

6 FY16 all round robust performance for the year 6 FY16 FY15 Second year of zero fatalities Fatalities = zero LTIFR = 0.09 Fatalities = zero 47% Strategy deliering improed operational performance production and cost Improed market conditions eidenced in equity portfolio Export olumes at 7,9Mt Core NOP at R4,9bn Income contribution from equity-accounted inestments of R2,4bn 27% 46% >100% Returning cash to shareholders HEPS of cps Final diidend of 410 cps 185% 382%

7 FY16 deliering on priorities to ensure a resilient business 7 Structure for resilience Portfolio improement Capital allocation Efficiency improements through Operational Excellence Cost saing from Exxaro Improement Project Drie innoation through digitised platform Coal product placement through Market Excellence BEE unwind & replacement in process Disposed Mayoko iron ore project Ealuating Tronox and SIOC shareholding Robust coal portfolio ealuating possible noncore assets Black Mountain, Moranbah and Chifeng initiated disposal process IRR and NPV differentiated Prioritise capex for growth - Secure coal olume growth - Cleaner energy opportunities Prudent debt management Refinanced R8bn debt facilities Maintained diidend distribution policy Minimise costs, maximise operational output and optimise portfolio

8 Exxaro s strategy of sustainable empowerment 8 Compliant with mining regulations in respect of BB-BEE Structure is compliant with current proposed amendments to BEE equity requirements in mining sector Fully compliant with contractual obligations to Eskom in respect of its BB-BEE 1 BB- Compliance in a regulated sector Maintaining commercial sustainability of the business Being black controlled is a competitie adantage and strategic leer in South Africa Clear, neat and non-burdensome black equity control creates strategic options beyond metals and mining 2 Essential that Exxaro maintains alue of inestments: - SIOC - SA Mineral Sands - Cennergi Protecting and deliering alue on inestments Equipping Exxaro for growth 3 4 Utilise strategic partnership with BEE inestors to drie growth in: - Coal opportunities - Cennergi - Other energy opportunities Ongoing empowerment critical to presering and creating shareholder alue Refer to: slide 51 for detail on BBBEE composition of consortium

9 2 Operational performance and markets Nombasa Tsengwa

10 SHEC established a foundation for sustainable deelopment 10 Safety and health No fatalities LTIFR* improed by 47% to 0.09 against FY15 Routine assessment of occupational and chronic diseases to actiely manage Key enironmental risks Climate change - Alignment to COP21 agreement continues Water stewardship - Water intensity improed by 13% - Matla and NBC water treatment plants ramped up Community 99.2% of the approed R48,6m for SLP LED** projects and corporate commitments spent Highest spend in Focus areas: - Education: 43% - Skills Deelopment: 18% - Sports & Recreation: 12% Reportable fatalities Target FY12 FY13 FY14 FY15 FY16 LTIFR % Target FY12 FY13 FY14 FY15 FY16 * Lost time injury frequency rate ** Local economic deelopment Refer to: slide 35 for detailed community deelopment expenditure

11 Continuing growth in coal production and sales olumes 11 Tonnages moement (Mt) Total coal production (Mt) Production FY16 s FY15 Sales -2% Reduction due to closure (2,4) (2,6) Arnot (1,4) (1,4) Inyanda (1,0) (1,2) Increase due to addition ECC (FY16 s 4 months FY15) 2,5 2,5 2,5 2,5 FY12 FY13 FY14 FY15 FY16 FY17* FY18* Commercial Tied Buy-ins Total coal sales (Mt) +1% FY12 FY13 FY14 FY15 FY16 FY17* FY18* Domestic Tied Export *Based on latest internal forecast Refer to slides 36,37,38 and 39 for detailed statistics

12 Coal export olumes 12 Export tonnage moements (Mt) FY16 s FY15 Reduction due to closure (1,1) Inyanda (1,1) Increased steam exports due to addition 1,7 ECC (FY16 s 4 months FY15) 1,7 Other power station exports 1,1 Mafube 0,5 Leeuwpan 0,3 ECC 0,3 Export product mix (%) FY14 FY15 FY16 FY21* RB1 RB3 Power station coal Other Export sales destinations (%) Aerage realised prices (US$) FY12 FY13 FY14 FY15 FY16 FY21* Aerage R/US$ rate Aerage API FY14 FY15 FY16 Europe India Other Asia Africa Other Exxaro aerage export price * Based on latest internal forecast Refer to slides 36 and 39 for detailed statistics

13 Operational excellence (OE) 13 Coal cash cost (Rm indexed) All BU s (except GG) showed significant cost saings, below inflation Y-o-Y GG: 8% increase (slightly aboe PPI): (1.3) (1.8) (10.5) lower off-take Eskom - lower Addendum 9 tonnages FY15 Inflation Variable olume Variable cost Fixed cost Arnot/ Inyanda FY16 FY15 s. FY16 unit cash cost moement (%) Grootegeluk cash cost (Rm indexed) (23%) Inflation PPI at 6,7% 1% ECC NBC (1.8) (0.4) (0.1) (1%) Matla 8% GG (14%) Mafube 50% (6%) -25% -20% -15% -10% -5% 0% 5% 10% LPN FY15 Inflation Variable olume Variable cost Fixed cost FY16

14 Coal projects will drie growth* 14 GG6 phase 2 Capex: R4,8bn Product: 2,7Mtpa of semi soft coking coal 1 st production: FY20 Belfast Capex: R3,2bn Product: 2,7Mtpa of thermal coal 1st production: 4Q19 Thabametsi phase 1 Capex: R2,8bn Product: 3,9Mtpa of thermal coal 1 st production: FY20 Thabametsi IPP notice to proceed granted Matla Mine 1 Relocation Capex: R1,7bn 1 st production: 3Q19 Rapid load out station Capex: R1,3bn Load capacity: 12Mtpa 1 st production: 2Q19 Grootegeluk Discard Inpit Phase 2 Capex: R0,6bn * Based on latest internal forecast Refer to slide 41 for detailed project schedule

15 and growth capex adequately proided 15 Expansion capital profile (Rm) Sustaining capital profile (Rm) 4,000 3,000 4,000 3,000 2,000 2,000 1,000 0 FY16 FY17* FY18* FY19* FY20* FY21* 1,000 0 FY16 FY17* FY18* FY19* FY20* FY21* Waterberg ,363 2,747 1,782 - Other , Total 367 1,227 3,487 3,260 2, Preious guidance 496 2,094 3,537 2, ,940 2,652 2,030 1,620 1,460 2, ,380 3,583 2,573 2,131 1,922 2,624 2,232 2,381 2,038 1, *Based on latest internal forecast Refer to slide 42 for additional detail

16 3 Financial results Riaan Koppeschaar

17 Financial oeriew: group IFRS 17 R million FY16 FY15 % change Reenue Operating expenses (15 597) (13 408) (16) Impairment charges (100) (1 749) 94 Net operating profit Net operating profit margin (%) Post-tax equity-accounted income/(loss) (1 137) Attributable earnings: owners of parent Headline earnings* EBITDA* ** (2) Cash generated from operations Capital expenditure Net debt* (56) Attributable earnings per share (cents) # Headline earnings per share (cents) # Aerage R/US$ rate Realised Spot * Non-IFRS number ** Earnings before interest, tax, depreciation and amortization # Based on weighted aerage number of share of 355 million for both periods

18 Financial oeriew: non-core adjustments 18 R million FY16 FY15 Coal 248 (1 722) Sale of core assets 303 Impairment charges (1 749) (Loss)/gain on disposal of other non-core assets and VSPs (55) 27 Ferrous Mayoko iron ore project Impairment charges (100) Gain on disposal of other non-core assets and VSPs 9 83 Other (568) ECC contingent consideration adjustment (445) Foreign exchange gains: TCSA acquisition price and liquidation of foreign entities Loss on disposal of other non-core assets, VSPs and other (123) (348) Non-core adjustment impact on net operating profit 259 (217) Tax on items with impact on net operating profit Post-tax equity-accounted income/(loss) 207 (1 025) SIOC 192 (863) RBCT 35 Mafube (15) Tronox (5) (162) Total non-core adjustment impact on attributable earnings 506 (1 214)

19 Financial oeriew: group core* 19 R million FY16 FY15 % change Reenue Operating expenses (15 956) (14 940) (7) Net operating profit Net operating profit margin (%) Post-tax equity-accounted income/(loss) (112) Headline earnings Headline earnings per share (cents) EBITDA Capital expenditure Net debt (56) Aerage API4 export price (US$/tonne) Aerage export price realised - US$/tonne R/tonne * Non-IFRS Supporting slides 43 to 50 for financial results section

20 ZAR price positie impact on group reenue FY15 s FY16 20 R million 21, ,897 20,500 20,000 Volume = +R0,5bn Price = +R1,2bn 1, ,500 19,000 1,071 (19) ,500 18,330 (494) 18, ,500 17,000 16,500 16,000 FY15 Tied olume Commercial olume Export olume Other olume Tied price Commercial price Export price Other price Forex FY16

21 translating into group net operating profit: core FY15 s FY16 21 R million (302) (64) (384) 332 (379) Outside management control Inside management control IFRS FY15 Non-core items Core FY15 Inflation Forex Rehab Price Volume Cost ECC Inyanda Core FY16 Non-core items IFRS FY16 Coal (342) 13 (375) 931 (70) (302) Ferrous (306) (94) (400) (7) (1) 357 (13) Other 905 (1 411) (506) (35) 295 (5) (568) (532) (384) 332 (379) 943 (64) (302)

22 Attributable earnings: core 22 R million FY16 FY15 % change Net operating profit Net financing cost (628) (668) 6 Income from other inestments 1 Post-tax equity-accounted income/(loss) (112) SIOC Tronox (379) (1 341) 72 Mafube Cennergi 3 (53) 106 Black Mountain RBCT (35) (4) SDCT 2 Tax (1 294) (1 130) (15) Non-controlling interests (12) 29 (141) Attributable earnings: owners of parent Attributable earnings per share (cents) Supporting slides 43 to 50 for financial results section

23 Prudent net debt position strong cash generation 23 R million (5 549) (748) 30 1,322 Dec Inesting actiities Diidends receied Other Dec Capex Cash generated 459 Net financing costs Tax Diidends paid

24 supporting diidend distribution to shareholders 24 Total diidend 31 Dec 2016 Final diidend 31 Dec 2016 Interim diidend 30 Jun 2016 Attributable earnings per share* (cents) Diidend declared per share (cents) Diidend coer* (times) 3,2 2,9 3,5 Diidend declared (Rm) BEE Holdco Anglo Public Employee empowerment (Mpower 2012) * Adjusted for non-cash non-core items Supporting slides 43 to 50 for financial results section

25 4 Update on corporate actiity Riaan Koppeschaar

26 Tronox acquisition of Cristal a consolidation play 26 Merits of transaction Creates the world s largest & most integrated TiO 2 pigment producer Pre-tax run-rate synergies of more than US$200m in year three EPS accretion expected Rapid deleeraging with no new debt expected Expands global footprint - increases participation in faster growing emerging markets Disposal of Alkali business Impact on Exxaro Exxaro intends to ote in faour of transaction Dilutie to equity interest (44% to 33%) Facilitates strategic options Monetise shareholding in efficient manner (focus on core operations and exercise prudent capital allocation decisions);

27 Replacement BEE Transaction sustainable black ownership 27 Where we are now: Implementation agreement signed Anglo American and MS333 market placement Agreement of Replacement BEE Transaction and unwind 21 No No Dec Jan Mar Apr Jul 2017 Initial terms announcement made MS333 specific repurchase Implementation of Replacement BEE Transaction and unwind

28 Replacement BEE Transaction...sustainable black ownership (cont d) 28 Significant portion of oerhang dealt: Main Street 333 Original Exxaro minority shareholders New Exxaro minority shareholders Before 50.2% 40.1% 9.7% After placement 45.3% 40.1% 14.6% After repurchase 37.7% 45.7% 16.6% 14% shareholding accretion to (original) minority shareholders due to repurchase Substantial increase in free-float (40.1% 62.3%) As part of the unwind, Exxaro is considering arious liquidity mechanisms to manage the oerhang of the unwind which may include: - Further Main Street 333 placements - An additional Exxaro specific repurchase if the replacement BEE transaction is implemented

29 Replacement BEE Transaction sustainable black ownership (cont d) 29 Empowerment at listed leel strongly preferred: Strategic BEE partner retains significant influence in Exxaro Allows existing shareholders to reinest in a liquid instrument Enables third party funding of transaction on share coer Transparent aluation Empowerment at subsidiary leel is not efficient: Will require group restructure Will impair group s borrowing ability Administratie and goernance burden Cost likely to be higher: - reduced third party funding; - reduced BEE equity (if any); and - transaction to occur at coal fair alue

30 Managing dilution effect of Replacement BEE Transaction 30 Dilution impact of Replacement BEE Transaction on oting interests (i.e. number of shares) Dilution impact of Replacement BEE Transaction on economic alue (i.e. alue per share) Before 10.0% (5.1%) Replacement BEE transaction without any repurchase 8.5%* (1.5%) 9.4% (1.3%) 3.0% Replacement BEE Transaction with initial repurchase Replacement BEE Transaction with initial repurchase and further proposed repurchase 9.7% 10.6% (0.3%) 0.6% Replacement BEE Transaction without any repurchase Accretie impact of initial repurchase at R80.20 per share Accretie impact of further proposed repurchase Replacement BEE Transaction with initial repurchase and further proposed repurchase * Assumption that further proposed repurchase occurs at 8% discount to R100/share. Replacement BEE Transaction assumed to be implemented at R100/share, R2,5bn equity reinestment

31 5 Outlook Mxolisi Mgojo

32 Market Outlook for Supportie market conditions in coal expected Expected improement in the coal business Volatile Rand exchange rate against the US dollar expected Inestment portfolio (SIOC and Tronox) expected to be positiely influenced by a faourable price outlook

33 Thank you 33

34 Additional information

35 Contributing to community deelopment Exxaro Contribution (Rm) Education Infrastructure Agriculture 0.50 Enterprise & Supplier De Skills Deelopment Health and Welfare Enironment Goernance Sports & Recreation

36 Thermal coal olumes 36 '000 tonnes FY14 FY15 FY16 FY17 FY18 Production Grootegeluk Matla ECC* Leeuwpan NBC Mafube** Arnot Inyanda Buy-ins** Total thermal production (including buy-ins) Sales to Eskom Grootegeluk Matla NBC Leeuwpan Arnot Other domestic sales Exports Total thermal coal sales * Included for four months in FY15 ** Reclassified Mafube production which was preiously reported under buy-ins to Exxaro production

37 Metallurgical coal olumes 37 '000 tonnes FY14 FY15 FY16 FY17 FY18 Production Grootegeluk Tshikondeni 154 Sales Domestic

38 Domestic market sales olumes per mine 38 Million tonnes FY12 FY13 FY14 FY15 FY16 FY17* FY18* Grootegeluk Matla Arnot Leeuwpan NBC Other** * FY17 and FY18 based on latest internal forecast ** Other consisted of Tshikondeni, Inyanda, NCC, ECC, Mafube and Reductants

39 Export market sales olumes per mine 39 Million tonnes FY12 FY13 FY14 FY15 FY16 FY17* FY18* Leeuwpan Grootegeluk ECC NCC Inyanda Mafube Other** * FY17 and FY18 based on latest internal forecast ** Buy-ins and inentory

40 Grootegeluk 7/8 production and sales profile - Addendum 9 settlement 40 Matimba (Mt) Medupi (Mt) Total (Mt) Take-or-pay (Mt) Premium (Rm) Shortfall (Rm) FY13 14,5 14, FY14 12, ,3 3, FY15 11,0 8,5 19,5 2,3 646 FY16 12, ,5 6, FY17 12,7 9,4 22,1 3,0 940 FY18 FY19 onwards 12,7 12,5 25,2 12,7 12,5 25,2

41 Coal mega projects* 41 1H17 2H17 FY18 FY19 GG6 phase 2 inestment decision expected 1Q17 Belfast rezoning appeal outcome expected 2Q17 Thabametsi mine phase 1 construction expected to commence 2Q17 Matla Mine 1 Relocation awaiting Eskom funding approal GG rapid load out station construction continues Grootegeluk Discard Inpit Project Phase 2 construction continues GG6 phase 2 construction expected to commence 3Q17 Belfast construction expected to commence 3Q17 Thabametsi mine phase 1 construction continues. Notice to proceed for full construction expected 4Q17 by Department of Energy GG rapid load out station construction continues Grootegeluk Discard Inpit phase 2 project completion expected 4Q17 GG6 phase 2 construction continues Belfast construction continues Thabametsi mine phase 1 construction continues GG rapid load out station construction continues GG6 phase 2 construction continues Belfast first production 4Q19 Thabametsi mine phase 1 construction continues Matla Mine 1 Relocation 1 st production 3Q19 GG rapid loud out station commissioning 2Q19 GG6 phase 2 Capex: R4,8bn Product: 2,7Mtpa of semi soft coking coal 1 st production: FY20 Belfast Capex: R3,2bn Product: 2,7Mtpa of thermal coal 1st production: 4Q19 Thabametsi phase 1 Capex: R2,8bn Product: 3,9Mtpa of thermal coal 1 st production: FY20 Matla Mine 1 Relocation Capex: R1,7bn 1 st production: 3Q19 Rapid load out station Capex: R1,3bn Load capacity: 12Mtpa 1 st production: 2Q19 GG Discard Inpit Phase 2 Capex: R0,6bn * Based on latest internal forecast

42 Capital expenditure: coal 42 R million Actual Forecast* FY15 FY16 FY17 FY18 FY19 FY20 FY21 Sustaining 1,597 2,380 3,583 2,573 2,131 1,922 2,624 GG load out station GG trucks, shoels and stacker , reclaimers GG backfill phase GG other , ,328 Leeuwpan OI resere ECC Other operations Expansion ,227 3,487 3,260 2, GMEP 226 GG6 phase ,805 1, Other GG Thabametsi phase , Belfast , Other 22 Total coal capital expenditure 2,313 2,747 4,810 6,060 5,391 4,578 2,642 Waterberg 1,966 2,252 3,390 4,393 4,367 3,242 2,145 Other ,420 1,667 1,024 1, Preious guidance 2,728 4,475 5,575 3,628 1,873

43 Cash generated before working capital moements s EBITDA 43 R million FY16 FY15 EBITDA (core) Fair alue adjustment of contingent consideration (445) Voluntary seerance packages and termination costs (98) (408) Foreign exchange gains: TCSA acquisition price and liquidation of foreign entities Partial reersal of preious write-off of financial assets at Mayoko 11 Other (90) EBITDA Unrealised foreign exchange and other fair alue moements 17 (1 479) Fair alue contingent consideration 445 Proisions raised 898 (69) Impairment or write-down of receiable Indemnification asset moement (56) Share-based payment expense Transaction cost amortised 5 5 Other unrealised foreign exchange moements (36) 411 Cost recoery of tied mines not yet receied and other (895) (353) Cash generated before working capital moements

44 Group depreciation, amortisation and EBITDA: core 44 R million FY16 FY15 % change Depreciation and amortisation Coal Tied operations (50) Commercial operations Ferrous 7 11 (36) FerroAlloys 7 7 Other 4 Other Total depreciation and amortisation EBITDA Coal Tied operations (11) Commercial operations Ferrous (6) (389) 98 Iron ore (66) (391) 83 FerroAlloys Other 28 (18) Other 143 (439) 133 Total EBITDA

45 Group net operating profit: core - 1H16 s 2H16 45 R million (298) (134) (181) (79) Outside management control Within management control IFRS 1H16 Noncore items Core 1H16 Inflation Forex Price Volume Cost Rehab Coal (188) (162) (1) (408) Ferrous (52) (1) (53) (3) (3) (33) Other (21) (16) (75) (17) (513) (511) Core 2H16 Noncore items (134) (181) (79) (298) IFRS 2H16

46 HEPS contribution to group* 46 FY16 % FY15 % (Decrease)/ increase % contribution JSE HEPS Coal (101) Ferrous TiO 2 (109) (8) (418) (91) 83 Other (114) (9) (62) (14) 5 Core HEPS Coal (128) Ferrous TiO 2 (107) (7) (378) (89) 82 Other 36 2 (172) (41) 43 * Based on group aerage number of shares of 355 million for both years

47 Debt and key performance indicators 47 Target FY16 FY15 Bank coenants* Net debt: equity (%) < EBITDA interest coer (times) > Net debt: EDITDA (times) <3 1 1 Internal key performance indicators EBITDA interest coer (times) >4 9 9 Return on equity: headline earnings (%) 13 6 Return on capital employed (%) > Net debt: equity (%) < Net debt: EBITDA (times) <2 0,2 0,5 * Including contingent liabilities except DMR guarantees, as well as diidends receied from associates

48 Capital funding structure 48 R million Drawn Facilities aailable Undrawn/ committed Term loan and reoling facility* Undrawn/ unissued DMTN** programme Interest bearing borrowings Finance lease liabilities 49 Capitalised transaction costs (44) Total interest bearing borrowings current 503 non-current Net cash and cash equialents (5 183) Net debt Maturity profile of debt Repayment year FY FY18 5 FY FY20 (9) FY21 onward * Excludes additional R2bn accordion option ** Domestic medium-term note

49 ECC contingent consideration 49 API4 coal price range (US$/tonne) Deferred payments (US$m) Expected coal price (US$/tonne)* Discount factor of 3% Fair alue adjustment (US$m) Net present alue of the fair alue adjustment (US$m) Year Minimum Maximum FY ,38 1,00 5,48 5,48 FY ,00 0,97 18,75 18,13 FY ,12 0,93 4,27 3,99 FY ,45 0,90 8,69 7,85 Total ,45 Total ZAR** 483 Payable January Payable beyond * Based on latest internal forecast ** Assuming closing US$ exchange rate of R13.63 at 31 December 2016

50 Tronox: US GAAP reconciliation to IFRS 50 FY16 FY15 US$m Rm US$m Rm US GAAP loss after tax as reported by Tronox (58) (307) IFRS adjustments Reersal of amortisation on intangible asset PPA step-up adjustments 4 (107) Translation differences and other adjustments (4) 32 Tax adjustments (9) 79 IFRS loss after tax (46) (280) Non-core adjustments* 1 24 Core loss after tax (45) (256) Remainder of Tronox (46) (303) SA operations 1 47 Exxaro's share of core loss after tax (20) (379) (105) (1 341) Remainder of Tronox (21) (394) (133) (1 706) SA operations * As defined by Exxaro

51 Replacement BEE Transaction broad-based reinestment (indicatie) 51 Eyabantu Bakamoso Barona Trust 5.0% Eyesizwe Mining deelopment Trust 5.0% National Moement in Rural Women 10.0% Youth Inestment Network Eyesizwe Holdings 37.5% Nehawu Inestment Company 7.5% 20.0% Eyesizwe Mining Transform Trust 7.5% SA association of Youth Clubs 5.0% K (Pty) Ltd 2.5% Shareholder Shareholding Broad-based Eyabantu Capital 46.6% Eyabantu Deelopment Trust 13.0% Mkhonto Trust 8.0% Northern Cape Deelopment Trust 7.5% Zandile Inestment Trust 7.0% Xiphemu Inestment (Pty) Ltd 5.0% SA Women in Mining Association 3.8% SA Women in Mining Inestments 5.1% PKV Ncetezo 4.0% Total 100.0% Eyesizwe Mining Ang Basadi 9.2% 79.6% 11.2% Shareholder Shareholding Broad-based SA Women in Mining Association 20.0% Xiphemu Inestment 0.30% Malibongwe Women Deelopment 20.00% Tiso Eyabantu Eyesizwe Basadi Ba Kopane Nozala Inestment 17.00% 9.7% 9.7% 54.1% 11.2% 15.3% Rural Women Moement 4.70% National Moement of Rural Women 21.00% Reinesting Broad based MS333 SA Women in Mining Inestments 17.00% Total 100% 51

52 List of acronyms 52 API4 - RBCT benchmark price reference for coal export COP-21- Conference of Parties 21 (Paris) Cps - Cents per share DMR - Department of mineral resources EBIT - Earnings before interest and tax ECC - Exxaro Coal Central Proprietary Limited EIA - Enironmental impact assessment ESG - Enironmental, social and goernance FOB - Free on board GDP - Gross domestic product GG - Grootegeluk GMEP - Grootegeluk Medupi expansion project HEPS - Headline earnings per share IFRS - International financial reporting standards IPP - Independent power producer IRR - Internal rate of return IWUL - Integrated water-use licence JSE - JSE Limited LBMA - London bullion market association LME - London metal exchange MS Main Street 333 Proprietary Limited Mt - Million tonnes NCC - New Clydesdale colliery NOP - Net operating profit OE - Operational excellence PPI - Purchasing price index Rb - Rand billion RB1 - Richards Bay 1 RB3 - Richards Bay 2 RBCT - Richards Bay coal terminal Rm - Rand million SDCT - South Dunes coal terminal SIOC - Sishen iron ore company TCSA - Total Coal South Africa Proprietary Limited TFR - Transnet Freight Rail TiO 2 - Titanium dioxide TIPP1 - Thabametsi independent power producer 1 UHDMS - Ultra high dense medium separator US$ - United States dollars VSP - Voluntary seerance package WACC - Weighted aerage cost of capital ZAR - South African Rand