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Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting

Contents

SUMMARISED GROUP ANNUAL FINANCIAL STATEMENTS

  1. Audited group statement of comprehensive income
  2. Audited group statement of financial position
  3. Audited group statement of changes in equity
  1. Audited group statement of cash flows
  2. Notes to the summarised group annual financial statements

ANNUAL GENERAL MEETING NOTICE AND PROXY

  1. Brief curricula vitae of directors standing for election or re-election
  1. Annual general meeting notice
  1. Form of proxy
  1. Notes to the form of proxy

66 CORPORATE INFORMATION

  1. SHAREHOLDERS' DIARY
  2. ANNEXURE: GLOSSARY

This publication only includes statutory information. All other reports are available on the website at www.exxaro.com.

The following reports, which should be read with this report, as well as the audited group and company annual financial statements for the year ended 31 December 2023, will be available on our website on 23 April 2024

Integrated report Supplementary report

Mineral Resources and Mineral Reserves statement Tax report

CONTACT

Ongoing feedback from stakeholders helps us contextualise certain issues needed for more informed understanding by readers. We welcome your suggestions, which should be directed to:

Malusi Buthelezi

Manager: Integrated Reporting and ESG

Tel: +27 12 307 3174

Mobile: +27 83 460 3723

Email: malusi.buthelezi@exxaro.com

Highlights

GROUP FINANCIAL PERFORMANCE

R38.7 billion

R10.10 per share

Revenue, down 17%

Final dividend

R13.4 billion

R5.72 per share

EBITDA, down 29%

Special dividend

R46.66 per share

R46.81 per share

Attributable earnings, down 18%

Headline earnings, down 22%

SUSTAINABLE OPERATIONS

LTIFR of 0.07

OPERATIONAL PERFORMANCESIOC

42.5 Mt

R6.2 billion

Coal product volumes

Adjusted1 equity-accounted income

40.5 Mt

R2.1 billion

Coal sales volumes

Exxaro's share of final dividend declared

727 GWh

Renewable energy generation

1 Adjusted for headline earnings adjustments.

VALUE DISTRIBUTION (Rm)

90

99

181

121

1 855

2 275

4 310

4 707

2023

2022

5

505

1 607

1 652

6 686

1 100

5 039

982

7 250

● Salaries, wages and benefits

● Cash dividend paid

● Employees' tax

● Dividend paid to NCI

● Payments to government: taxation contribution

● Community investments and volunteerism

● Cost of financing

● GreenShare employee scheme

Summarised group annual financial statements for the year ended 31 December 2023

1

and notice of the annual general meeting

Condensed group statement of comprehensive income

For the year ended 31 December

2023

2022

Reviewed

Audited

Rm

Rm

Revenue (note 7)

38 698

46 369

Operating expenses (note 8)

(28 071)

(30 148)

Operating profit

10 627

16 221

Loss on disposal of subsidiary

(1)

Net operating profit

10 627

16 220

Finance income (note 10)

1 570

694

Finance costs (note 10)

(1 252)

(1 052)

Income from financial assets

2

6

Share of income of equity-accounted investments (note 11)

6 987

6 477

Impairment charges of equity-accounted investments

(53)

Profit before tax

17 934

22 292

Income tax expense

(3 231)

(4 287)

Profit for the year

14 703

18 005

Other comprehensive income/(loss), net of tax

200

384

Items that will not be reclassified to profit or loss:

(29)

14

- Remeasurement of retirement employee obligations

3

- Changes in fair value of equity investments at FVOCI

(31)

10

- Share of OCI of equity-accounted investments

2

1

Items that may subsequently be reclassified to profit or loss:

244

300

- Unrealised exchange differences on translation of foreign operations

88

34

- Changes in fair value on cash flow hedges

(44)

113

- Changes in fair value on costs of hedging

(9)

- Share of OCI of equity-accounted investments

209

153

Items that have subsequently been reclassified to profit or loss:

(15)

70

- Recycling of changes in fair value on cash flow hedges

(15)

70

Total comprehensive income for the year

14 903

18 389

Profit attributable to:

Owners of the parent

11 292

13 826

Non-controlling interests

3 411

4 179

Profit for the year

14 703

18 005

Total comprehensive income attributable to:

Owners of the parent

11 448

14 113

Non-controlling interests

3 455

4 276

Total comprehensive income for the year

14 903

18 389

cents

cents

Attributable earnings per share

- Basic

4 666

5 713

- Diluted

4 666

5 713

2 Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting

Condensed group statement of financial position

At 31 December

2023

2022

Reviewed

Audited

Rm

Rm

ASSETS

Non-current assets

66 153

63 357

Property, plant and equipment

37 226

37 446

Intangible assets

2 790

2 760

Right-of-use assets

308

352

Inventories

176

Equity-accounted investments (note 13)

20 278

18 060

Financial assets (note 20)

4 616

3 539

Deferred tax

206

254

Other assets (note 14)

729

770

Current assets

26 701

21 788

Inventories

2 270

1 728

Financial assets (note 20)

210

376

Trade and other receivables (note 20)

3 877

4 199

Cash and cash equivalents (note 20)

19 859

14 812

Current tax receivables

3

101

Other assets (note 14)

482

572

Total assets

92 854

85 145

EQUITY AND LIABILITIES

Capital and other components of equity

Share capital

983

983

Other components of equity

1 341

1 700

Retained earnings

49 923

44 136

Equity attributable to owners of the parent

52 247

46 819

Non-controlling interests

14 160

12 560

Total equity

66 407

59 379

Non-current liabilities

20 226

20 574

Interest-bearing borrowings (note 15; 20)

7 480

8 378

Lease liabilities (note 16)

400

438

Other payables (note 20)

42

25

Provisions (note 18)

2 963

2 762

Retirement employee obligations

176

165

Financial liabilities (note 20)

127

112

Deferred tax

9 003

8 668

Other liabilities (note 19)

35

26

Current liabilities

6 221

5 192

Interest-bearing borrowings (note 15; 20)

1 443

715

Lease liabilities (note 16)

51

40

Trade and other payables (note 20)

3 356

3 340

Provisions (note 18)

222

179

Financial liabilities (note 20)

14

5

Current tax payables

348

143

Other liabilities (note 19)

787

770

Total liabilities

26 447

25 766

Total equity and liabilities

92 854

85 145

Summarised group annual financial statements for the year

ended 31 December

2023

3

and notice of the annual general meeting

Condensed group statement of changes in equity

Other components of equity

Share

Foreign

Cash flow

Cost of

Equity-

currency

capital

translation

hedges1

hedging

settled

Rm

Rm

Rm

Rm

Rm

At 31 December 2021 (Audited)

983

987

(117)

596

Total comprehensive income

139

136

1

- Profit for the year

- Other comprehensive income for the year

139

136

1

Transactions with owners

(147)

Contributions and distributions

(147)

- Dividends paid (note 5)

- Distributions to NCI share option holders

- Share-based payments movement

(147)

Changes in ownership interest

- Recognition of NCI

At 31 December 2022 (Audited)

Total comprehensive income/(loss)

  • Profit for the year
  • Other comprehensive income/(loss) for the year Transfer to property, plant and equipment (net of tax)2 Transactions with owners
    Contributions and distributions
  • Dividends paid (note 5)
  • Share-basedpayments movement3

983

1 126

19

450

232

(47)

(7)

232

(47)

(7)

1

(516)

(516)

(516)

At 31 December 2023 (Reviewed)

983

1 358

(27)

(7)

(66)

  1. Previously named Financial instruments revaluation.
  2. Hedging gains and losses and costs of hedging transferred to the cost of property, plant and equipment during the year.
  3. Relates to the net amount of the share-based payment expense of R212 million as well as the deferred tax movement of
    R83 million and the value of shares acquired in the market to settle vested share-based payment transactions of R645 million.

Foreign currency translation

Arises from the translation of financial statements of foreign operations within the group as well as the share of equity-accounted investments' foreign currency translation reserves.

Cash flow hedges

Comprises the group's cash flow hedge reserves relating to interest rate swaps and the spot rate component of FECs as well as the share of equity-accounted investments' hedging reserves.

Cost of hedging

Comprises the group's cost of hedging reserves which reflects gains or losses on the portion excluded from the designated hedging instrument that relates to the forward element of FECs. It is initially recognised in OCI and accounted for similarly to gains or losses in the hedge reserve.

Equity-settled

Represents the fair value, net of tax, of services received from employees and settled by equity instruments granted.

Retirement employee obligations

Comprises remeasurements, net of tax, on the retirement employee obligations as well as the share of equity-accounted investments' retirement employee obligations reserves.

Financial asset FVOCI revaluation

Comprises the fair value adjustments, net of tax, on the financial assets classified at FVOCI as well as the share of equity-accounted investments' financial asset FVOCI revaluation reserves.

4 Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting

Retirement

Financial

Attributable

asset

to owners

Non-

employee

FVOCI

Retained

of the

controlling

Total

obligations

revaluation

Other

earnings

parent

interests

equity

Rm

Rm

Rm

Rm

Rm

Rm

Rm

35

55

4

37 007

3

8

13 826

13 826

3

8

(6 697) (6 686) (6 686)

(11)

(11)

39 550

10 548

14 113

4 276

13 826

4 179

287

97

(6 844)

(2 264)

(6 833)

(2 275)

(6 686)

(2 274)

(1)

(147)

  1. 11
  1. 11
  1. 098
  1. 389
  1. 005
    384 (9 108) (9 108) (8 960)
    (1)
    (147)

38

63

4

44 136

2

(24)

11 292

11 292

2

(24)

(5 505)

(5 505) (5 505)

46 819

12 560

11 448

3 455

11 292

3 411

  1. 44

(6 021)

(1 855)

(6 021)

(1 855)

(5 505)

(1 855)

(516)

  1. 379
  1. 903
  1. 703
    200
    1 (7 876) (7 876) (7 360)
    (516)

40

39

4

49 923

52 247

14 160

66 407

Summarised group annual financial statements for the year ended 31 December 2023

5

and notice of the annual general meeting

Condensed group statement of cash flows

For the year ended 31 December

2023

2022

Reviewed

Audited

Rm

Rm

Cash flows from operating activities

11 129

14 410

Cash generated by operations (note 9)

13 307

18 863

Interest paid

(1 100)

(982)

Interest received

1 525

650

Tax paid

(2 603)

(4 121)

Cash flows from investing activities

2 045

3 990

Property, plant and equipment acquired (note 12)

(2 699)

(1 652)

Proceeds from disposal of property, plant and equipment

5

4

Cash received from other financial assets at amortised cost

196

90

ESD loans granted

(171)

(112)

ESD loans settled

108

50

Settlement of deferred consideration

56

94

Portfolio investments acquired

(400)

Deposit facilities acquired

(360)

Lease receivables settled

16

15

Increase in environmental rehabilitation funds

(19)

(8)

Dividends received from equity-accounted investments

4 911

5 903

Dividends received from financial assets

2

6

Cash flows from financing activities

(8 228)

(10 617)

Interest-bearing borrowings raised (note 15;17)

489

Interest-bearing borrowings repaid (note 15;17)

(658)

(1 181)

Transaction costs paid on interest-bearing borrowings raised

(13)

Lease liabilities paid (note 16)

(41)

(34)

Dividends paid to owners of the parent (note 5)

(5 505)

(6 686)

Dividends paid to NCI BEE Parties

(1 831)

(2 237)

Dividends paid to NCI of Tsitsikamma SPV

(24)

(37)

Distributions to NCI share option holders

(1)

Shares acquired in the market to settle share-based payments

(645)

(441)

Net increase in cash and cash equivalents

4 946

7 783

Cash and cash equivalents at beginning of the year

14 812

7 041

Translation difference on movement in cash and cash equivalents

101

(12)

Cash and cash equivalents at end of the year

19 859

14 812

6 Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting

Notes to the reviewed condensed group financial statements

  1. CORPORATE BACKGROUND
    Exxaro, a public company incorporated in South Africa, is a diversified resources group with interests in the coal (controlled and non-controlled), energy (controlled) and ferrous (controlled and non-controlled) markets. These reviewed condensed group financial statements as at and for the year ended
    31 December 2023 (condensed financial statements) comprise the company and its subsidiaries (together referred to as the group) and the group's interest in associates and joint ventures.
  2. BASIS OF PREPARATION
  1. Statement of compliance
    The condensed financial statements have been prepared in accordance with and contain the information required by the JSE Listings Requirements for condensed financial statements and the requirements of the Companies Act of South Africa. The JSE Listings Requirements require condensed financial statements to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS® Accounting Standards) (as issued by the International Accounting Standards Board (IASB®)), IAS 34 Interim Financial Reporting, Financial Pronouncements (as issued by the Financial Reporting Standards Council), and the SAICA Financial Reporting Guides (as issued by the Accounting Practices Committee).
    The condensed financial statements have been prepared under the supervision of Mr PA Koppeschaar CA(SA), SAICA registration number: 00038621.
    The condensed financial statements should be read in conjunction with the group annual financial statements as at and for the year ended 31 December 2022, which have been prepared in accordance with IFRS Accounting Standards. The condensed financial statements have been prepared on the historical cost basis, except for financial instruments, share-based payments and biological assets, which are measured at fair value.
    The condensed financial statements of the Exxaro group were authorised for issue by the board of directors on 12 March 2024.
  2. Judgements and estimates
    Management made judgements and applied estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements and the key source of estimation uncertainty were similar to those applied to the group annual financial statements as at and for the year ended
    31 December 2022.

3. ACCOUNTING POLICIES AND OTHER COMPLIANCE MATTERS

The accounting policies applied are in terms of IFRS Accounting Standards and are consistent with those of the previous financial year. A number of new or amended IFRS Accounting Standards became effective for the current year. The group did not have to make any significant changes to its accounting policies nor make retrospective adjustments as a result of adopting these standards.

3.1 Impact of new, amended or revised standards issued but not yet effective

New IFRS Accounting Standards, amendments to accounting standards and interpretations issued, that are relevant to the group, but not yet effective on 31 December 2023, have not been early adopted, except for the amendment to IAS 1 Presentation of Financial Statements relating to classification of liabilities as current or non-current as well as non-current liabilities with covenants. The early adoption of these amendments did not have any impact on the group. The group continuously evaluates the impact of these standards and amendments.

Summarised group annual financial statements for the year ended 31 December 2023

7

and notice of the annual general meeting

Notes to the reviewed condensed group financial statements

continued

4.

RECONCILIATION OF GROUP HEADLINE EARNINGS

Gross

Tax

NCI

Net

Rm

Rm

Rm

Rm

For the year ended 31 December 2023 (Reviewed)

Profit attributable to owners of the parent

11 292

Adjusted for:

61

(15)

(11)

35

- IAS 16 Net losses on disposal of property, plant and

equipment

57

(15)

(10)

32

- IAS 28 Share of equity-accounted investments' separately

identifiable remeasurements

4

(1)

3

Headline earnings

11 327

For the year ended 31 December 2022 (Audited)

Profit attributable to owners of the parent

13 826

Adjusted for:

1 285

(333)

(220)

732

- IFRS 10 Loss on disposal of subsidiary

1

1

- IAS 16 Net losses on disposal of property, plant and

equipment

97

(27)

(17)

53

- IAS 28 Loss on dilution of investment in associate

2

2

- IAS 28 Share of equity-accounted investments' separately

1 132

(306)

(191)

635

identifiable remeasurements1

- IAS 36 Impairment charges of non-current assets2

53

(12)

41

Headline earnings

14 558

  1. Includes Exxaro's share of SIOC's impairment charge recognised on mining assets, amounting to R626 million (net of tax and NCI). The impairment charge on mining assets was due to the production volumes being revised down in line with anticipated logistics performance.
  2. On 31 December 2022, the investment in LightApp was impaired to nil.

2023

2022

Reviewed

Audited

cents

cents

Headline earnings per share

- Basic

4 681

6 016

- Diluted

4 681

6 016

Refer note 5 for details regarding the number of shares.

8 Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting

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Exxaro Resources Ltd. published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 12:36:05 UTC.