10 Aug - 4 min read

Exxaro - Trading Statement for the six-month period ended 30 June 2021

Exxaro - Trading Statement for the six-month period ended 30 June 2021

EXXARO RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
JSE share code: EXX
ISIN: ZAE000084992
ADR code: EXXAY
(Exxaro or the Company)

TRADING STATEMENT FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2021

Shareholders are advised that Exxaro and its directors have a reasonable degree of certainty relating
to the expected financial results of Exxaro for the six-month period ended 30 June 2021.

Headline earnings per share (HEPS) for the six-month period ended 30 June 2021 is expected to
increase between 99% and 111% compared to the six-month period ended 30 June 2020. This was
mainly due to the increase in our equity-accounted income from Sishen Iron Ore Company
Proprietary Limited. In addition, HEPS are based on a lower weighted average number of shares
(WANOS) of 250 million following our share repurchase program. WANOS for the six-month period
ended 30 June 2020 was 251 million.

Attributable earnings per share (AEPS) for the six-month period ended 30 June 2021 is expected to
increase between 84% and 96% compared to the six-month period ended 30 June 2020. In addition
to the increase in equity-accounted income in the current period, the financial results in both periods
were influenced by various once-off items, such as the gain on the disposal of our Tronox investments
in the current period, as well as a gain on the deemed disposal of the previously held 50% equity
interest in the Cennergi joint venture in the comparative period. AEPS are based on WANOS of 250
million for the six-month period ended 30 June 2021.

EBITDA(1) for the six-month period ended 30 June 2021 is expected to increase between 5% and 17%
compared to the six-month period ended 30 June 2020, mainly due to the inclusion of Cennergi
results for the full six-month period. Whilst coal production and sales volumes were impacted by the
COVID-19 pandemic and Transnet Freight Rail (TFR) challenges, a healthy increase in the average
benchmark API4 export price contributed positively to the coal financial performance.

There were no non-core adjustments(2) for the six-month period ended 30 June 2021.

The expected ranges are summarised below: -

                                    Unit          30 June 2020         30 June 2021        30 June 2021
                                                  Reported             Expected            Expected range
                                                  earnings             earnings
 HEPS                               cents         1 321                2 632 – 2 792       99% - 111% increase
 AEPS                               cents         1 727                3 184 – 3 388       84% - 96% increase
 EBITDA(1)                          R million     3 884                4 080 – 4 548       5% - 17% increase
 Core HEPS(3)                       cents         1 339                2 626 – 2 790       96% - 108% increase
 Core EBITDA(3)                     R million     3 929                4 054 – 4 526       3% - 15% increase

Shareholders are advised that Exxaro will release its reviewed financial results for the six-month
period ended 30 June 2021 on 12 August 2021. Further details are available on our website,
www.exxaro.com.

The forecast financial information on which this trading statement is based has not been reviewed,
audited nor reported on by Exxaro’s external auditors.

This statement is issued in compliance with the JSE Listings Requirements.

(1)EBITDA is calculated by adjusting net operating profit before tax with depreciation, amortisation, impairment
charges/reversals and net losses or gains on disposal of assets and investments (including translation differences recycled
to profit or loss).

(2)Non-core items are defined as any major non-recurring transactions identified by management at each reporting period.

(3)Core HEPS and core EBITDA for the six-month period ended 30 June 2020 are reported after including the following non-
core adjustments: -

    30 June 2020                                     Insurance          Losses on share of cash flow
                                                     claim recovery     hedge recycled on deemed
                                                                        disposal of Cennergi JV
                                         HEPS                                                           Core HEPS
    Cents                                1 321              (6)                          24             1 339
                                         EBITDA                                                         Core EBITDA
    R million                            3 884              (14)                         59             3 929

These are not defined terms under International Financial Reporting Standards (IFRS) and may not be comparable with
similarly titled measures reported by other companies. The afore-mentioned adjustments are the responsibility of the
directors of Exxaro. The adjustments have been prepared for illustrative purposes only and due to their nature, may not
fairly present Exxaro´s financial position, changes in equity, results of operations or cash flows.

Editor’s note:
Exxaro is one of the largest South African based diversified resources companies, with interests in coal, iron ore and energy.
www.exxaro.com

Enquiries:
Mzila Mthenjane, Executive head: Stakeholder Affairs
Tel: + 27 12 307 7393
Mobile: +27 83 417 6375
Email: Mzila.mthenjane@exxaro.com

Pretoria
10 August 2021

Lead Equity Sponsor and Debt Sponsor:
Absa Bank Limited (acting through its corporate and investment banking division).

Joint Equity Sponsor
Tamela Holdings Proprietary Limited

Date: 10-08-2021 01:25:00
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