CONDENSED GROUP INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 ABC ABC Contents Approval of the condensed group interim financial statements 2 Condensed group statement of financial position 3 Condensed group income statement 4 Condensed group statement of comprehensive income 4 Condensed group statement of changes in equity 5 Condensed group statement of cash flows 6 Notes to the condensed group interim financial statements 7 1 Structure and activities 7 2 Basis of preparation 7 3 Significant changes in accounting policies 9 4 Critical accounting estimates and judgements 9 5 Segment information 9 6 Issuances, repurchases and repayments of debt securities and borrowings and share capital 10 7 Dividend paid 11 8 Significant events and transactions 11 9 Seasonality of interim results 11 10 Revenue 12 11 Primary energy 12 12 Employee benefit expense 12 13 Finance cost 12 14 Income tax 12 15 Accounting classification and fair value 13 16 Material events subsequent to 30 September 2025 18 17 Exchange rates 18 18 Reportable irregularities 18 19 New standards and interpretations 19 Appendix – abbreviations, acronyms and definitions 21 The condensed group interim financial statements for the six months ended 30 September 2025 have been prepared under the supervision of the chief financial officer, C Cassim CA(SA) and were published on 28 November 2025. The condensed group interim financial statements for the six months ended 30 September 2025 and 30 September 2024 have not been audited, reviewed or reported on by the external auditors of the group. The financial information for the year ended 31 March 2025 is as reflected in the audited financial statements. ABC 1 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Approval of the condensed group interim financial statements Basis of preparation The unaudited condensed group interim financial statements from page 3 to page 20 for the six months ended 30 September 2025 have been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS®) Accounting Standards, the presentation and disclosure requirements of International Accounting Standards (IAS®) 34 Interim Financial Reporting and in the manner required by the Companies Act of South Africa, 71 of 2008 (Companies Act). Going concern The board made an assessment of the ability of the group to continue as a going concern in the foreseeable future. The considerations, challenges and risks assessed by the board are detailed in note 2.1. The board considered that there are uncertainties and dependencies that exist both from the perspective of timing of interventions as well as whether the plans will materialise as anticipated. The board has a reasonable expectation that the risks will be satisfactorily addressed with the mitigation strategies in place. The board continues to manage these strategies as a priority as it is important that they materialise as envisaged. The board assessed the current cash flow projections considering that future capital costs during the debt relief period will be funded from cash from operations. The board concluded after carefully considering the progress of the initiatives included in note 2.1 and the continued financial support from the government through the debt relief arrangement that there is a reasonable expectation that the group and company have access to adequate resources and facilities to be able to continue its operations and fund the capital programme for the foreseeable future as a going concern. The consolidated and separate financial statements have therefore been prepared on a going-concern basis. Approval The board is of the opinion, based on the information available to date, that the condensed group interim financial statements fairly present the financial position of the group at 30 September 2025 and the results of the operations and cash flow information for the six months then ended. The condensed group interim financial statements have been approved by the board and signed on its behalf on 28 November 2025 by: M Nyati DL Marokane C Cassim Chairman Group chief executive Group chief financial officer ABC 2 Condensed group statement of financial position at 30 September 2025 Unaudited Audited Unaudited 30 September 31 March 30 September 2025 2025 2024 Rm Rm Rm Assets Non-current 748 743 744 546 740 133 Property, plant and equipment and intangible assets 695 826 689 556 680 444 Future fuel supplies 8 141 7 639 6 661 Investment in equity-accounted investees 305 346 304 Inventories 15 597 15 373 14 525 Deferred tax 4 7 281 Derivatives held for risk management and embedded derivatives 10 664 17 167 18 228 Payments made in advance 1 881 1 729 1 746 Trade, finance lease, loan and other receivables 9 120 6 698 12 540 Investments 7 205 6 031 5 404 Current 175 298 159 474 137 468 Inventories 33 685 31 084 28 211 Taxation 7 177 37 Derivatives held for risk management and embedded derivatives 1 360 2 150 6 178 Payments made in advance 2 022 1 109 1 939 Trade, finance lease, loan and other receivables 50 817 42 268 47 452 Investments 23 534 18 925 20 640 Cash and cash equivalents 63 873 63 761 33 011 Assets held-for-sale 7 748 7 811 – Total assets 931 789 911 831 877 601 Equity Capital and reserves 357 611 278 345 270 988 Liabilities Non-current 444 040 478 009 477 253 Debt securities and borrowings 307 044 351 226 349 311 Derivatives held for risk management 3 189 836 2 023 Deferred tax 15 761 11 389 13 955 Employee benefit obligations 21 421 19 672 19 595 Provisions 50 130 47 447 45 889 Trade and other payables and lease liabilities 6 379 6 869 6 431 Payments received in advance, contract liabilities and deferred income 40 116 40 570 40 049 Current 129 603 154 871 129 360 Debt securities and borrowings 55 683 21 429 46 037 Loan from shareholder – 56 132 8 057 Derivatives held for risk management 1 952 811 3 841 Employee benefit obligations 5 685 7 584 5 606 Provisions 4 972 5 829 9 362 Trade and other payables and lease liabilities 52 820 55 152 48 963 Payments received in advance, contract liabilities and deferred income 8 303 7 460 7 494 Taxation 188 474 – Liabilities held-for-sale 535 606 – Total liabilities 574 178 633 486 606 613 Total equity and liabilities 931 789 911 831 877 601 ABC 3 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Condensed group income statement for the six months ended 30 September 2025 Unaudited Unaudited Audited six months six months year ended ended ended 30 September 30 September 31 March 2025 2024 2025 Note Rm Rm Rm Revenue 10 191 295 183 711 340 895 Other income 819 694 3 265 Primary energy 11 (78 406) (79 288) (150 207) Employee benefit expense 12 (21 603) (20 436) (43 160) Net impairment and write down of assets (568) (3 736) (7 616) Other expenses (22 992) (19 289) (44 139) Profit before depreciation and amortisation expense and net fair value and foreign exchange losses (EBITDA)1 68 545 61 656 99 038 Depreciation and amortisation expense (17 166) (15 394) (31 764) Net fair value and foreign exchange losses (3 632) (5 542) (10 415) Profit before net finance cost 47 747 40 720 56 859 Net finance cost (15 292) (17 751) (33 092) Finance income 4 243 3 276 6 840 Finance cost 13 (19 535) (21 027) (39 932) Share of profit of equity-accounted investees, net of tax 58 60 102 Profit before tax 32 513 23 029 23 869 Income tax 14 (8 233) (5 197) (7 822) Profit for the period2 24 280 17 832 16 047 Condensed group statement of comprehensive income for the six months ended 30 September 2025 Unaudited Unaudited Audited six months six months year ended ended ended 30 September 30 September 31 March 2025 2024 2025 Rm Rm Rm Profit for the period2 24 280 17 832 16 047 Other comprehensive loss (1 014) (1 702) (560) Items that may be reclassified subsequently to profit or loss (462) (478) 226 Cash flow hedges (633) (478) 310 Income tax thereon 171 – (84) Items that may not be reclassified subsequently to profit or loss (552) (1 224) (786) Re-measurement of benefits (756) (1 246) (1 077) Income tax thereon 204 22 291 Total comprehensive income for the period2 23 266 16 130 15 487 1. Non-generally accepted accounting principles income statement measure. 2. A nominal amount is attributable to the non-controlling interest in the group. The remainder is attributable to the owner of the group. ABC 4 Condensed group statement of changes in equity for the six months ended 30 September 2025 Share Other Cash flow Unrealised Foreign Accumulated Total capital capital hedge fair value currency (loss)/profit equity reserve reserve translation reserve Rm Rm Rm Rm Rm Rm Rm Balance at 31 March 2024 241 550 44 000 (868) (10 313) 53 (51 564) 222 858 Profit for the period – – – – – 17 832 17 832 Other comprehensive loss, net of tax – – (478) – – (1 224) (1 702) Share capital issued 76 000 (44 000) – – – – 32 000 Transfer between reserves – – – (921) – 921 – Balance at 30 September 2024 317 550 – (1 346) (11 234) 53 (34 035) 270 988 Loss for the period – – – – – (1 785) (1 785) Other comprehensive income, net of tax – – 704 – – 438 1 142 Conversion of loan from shareholder – 8 000 – – – – 8 000 Transfer between reserves – – – 3 548 – (3 548) – Balance at 31 March 2025 317 550 8 000 (642) (7 686) 53 (38 930) 278 345 Profit for the period – – – – – 24 280 24 280 Other comprehensive loss, net of tax – – (462) – – (552) (1 014) Share capital issued 64 000 (8 000) – – – – 56 000 Transfer between reserves – – – (1 856) – 1 856 – Balance at 30 September 2025 381 550 – (1 104) (9 542) 53 (13 346) 357 611 ABC 5 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Condensed group statement of cash flows for the six months ended 30 September 2025 Unaudited Unaudited Audited six months six months year ended ended ended 30 September 30 September 31 March 2025 2024 2025 Rm Rm Rm Cash flows from operating activities Profit before tax 32 513 23 029 23 869 Adjustment for non-cash items 39 820 45 167 89 625 Depreciation and amortisation expense 17 166 15 394 31 764 Finance cost 19 535 21 027 39 932 Other 3 119 8 746 17 929 Changes in working capital (22 617) (19 631) (20 128) Cash generated from operations 49 716 48 565 93 366 Net cash used in derivatives held for risk management (209) (610) (1 436) Finance income received 7 258 441 Finance cost paid (3) – (26) Income taxes paid (3 596) (1 991) (6 400) 45 915 46 222 85 945 Cash flows used in investing activities Disposals of property, plant and equipment and intangible assets 222 163 292 Acquisitions of property, plant and equipment and intangible assets (20 401) (15 493) (39 989) Acquisitions of future fuel supplies (761) (1 266) (3 388) Acquisitions of treasury investments – (1 398) (1 397) Disposals of insurance investments 15 640 14 480 26 133 Acquisitions of insurance investments (20 780) (19 296) (29 375) Payments made in advance (90) (15) (18) Cash used in provisions (45) (185) (216) Net cash (used in)/generated from derivatives held for risk management (42) 8 35 Finance income received 1 290 1 308 2 321 Other cash from investing activities 238 175 1 229 (24 729) (21 519) (44 373) Cash flows used in financing activities Debt securities and borrowings raised 260 5 485 8 683 Loan from shareholder raised – 8 000 64 000 Payments made in advance (47) (80) (131) Debt securities and borrowings repaid (7 188) (10 554) (46 424) Net cash generated from/(used in) derivatives held for risk management 77 (1 698) 4 555 Cash used in lease liabilities (501) (492) (783) Finance income received 2 122 893 2 217 Finance cost paid (15 619) (16 719) (33 364) Taxes paid (21) (32) (60) (20 917) (15 197) (1 307) Net increase in cash and cash equivalents 269 9 506 40 265 Cash and cash equivalents at beginning of the period 63 761 23 585 23 585 Effect of movements in exchange rates on cash held (165) (80) (63) Assets and liabilities held-for-sale 8 – (26) Cash and cash equivalents at end of the period 63 873 33 011 63 761 ABC 6 Notes to the condensed group interim financial statements for the six months ended 30 September 2025 1. Structure and activities Eskom Holdings SOC Ltd (Eskom), a state-owned company and holding company of the group, is incorporated and domiciled in the Republic of South Africa. The group is wholly owned by the government with the Minister of Electricity and Energy as the shareholder representative. The principal activity of the group is the vertically integrated regulated electricity business (Eskom and National Transmission Company South Africa SOC Ltd (NTCSA)) that generates, transmits and distributes electricity to local industrial, mining, commercial, agricultural, redistributor (metropolitan and other municipalities) and residential customers and to international customers in southern Africa. The group also purchases electricity from Independent Power Producers (IPPs) and international suppliers in southern Africa. The primary business focus of the other subsidiaries is to support the electricity business. 2. Basis of preparation The condensed group interim financial statements of Eskom as at and for the six months ended 30 September 2025 comprise the Eskom company, its subsidiaries, joint ventures, associates and structured entities (together the group). The condensed group interim financial statements do not include all of the information required for full financial statements and should be read in conjunction with the Eskom Holdings SOC Ltd 31 March 2025 group annual financial statements. The annual financial statements of the group as at and for the year ended 31 March 2025 are available for inspection at the company's registered office and on the Eskom website at www.eskom.co.za. The condensed group interim financial statements are prepared in accordance with the recognition and measurement requirements of IFRS Accounting Standards, the presentation and disclosure requirements of IAS 34 and in the manner required by the Companies Act. The condensed group interim financial statements are prepared on the historical-cost basis except for the following items which are measured at fair value: • derivatives held for risk management • embedded derivatives • certain other investments 2.1 Going concern The board assessed the ability of the group to continue as a going concern in the foreseeable future. The board: • Reviewed the performance of the group for the period ended 30 September 2025 including the net profit after tax of R24 280 million and the net current liabilities of R45 695 million. • Considered the impact of the cash flow forecast for the 18 months ending 31 March 2027. • Noted the improvement in the financial indicators of the group, including EBITDA and EBITDA margin when compared to 30 September 2024. • Noted the cash and cash equivalents balance of R63 873 million at 30 September 2025 (March 2025: R63 761 million). • Noted that the liquidity in the longer term after the debt relief period remains at risk because of financial sustainability challenges arising from an inadequate tariff path and structure, high debt service costs, escalating municipal arrear debt, operational inefficiencies, above inflationary cost increases, the impact of crime, fraud and corruption (including loss of revenue because of illegal electricity connections and illicit prepaid electricity tokens), continued focus on addressing plant performance and the funding requirement to expand the transmission infrastructure for new generation sources. • Noted that the total initial debt relief arrangement from government of R254 billion (introduced in the Eskom Debt Relief Act, 7 of 2023) reduced to R230 billion. – The Eskom Debt Relief Amendment Act, 5 of 2025, reduced the debt relief to Eskom by R20 billion and replaced the initial takeover of Eskom debt (principal and future interest) of R70 billion with R50 billion (R40 billion in 2026 and R10 billion in 2029) debt relief support from government for conversion to equity upon complying with the conditions. – The debt relief support was permanently reduced with R4 billion (R2 billion in 2025 and R2 billion in 2024) because of the delay in the disposal of Eskom Finance Company SOC Ltd (EFC). The sale of the EFC disposal group (EFC loan book and interest in Nqaba) continued to be prioritised and is expected to be concluded before 31 March 2026, subject to final approval from the South African Reserve Bank Prudential Authority. • Noted the debt relief support from government of R80.2 billion to be received by March 2026 (including the conditions that the group needs to comply with to allow for the conversion of debt relief to equity) to address Eskom’s debt and interest payments as they fall due thereby allowing Eskom to better manage its liquidity position. Any loan amount after the debt relief period that fails to qualify for the conversion of debt to equity because of non-compliance with the conditions will become due and payable from 1 April 2026. • Noted that interest of R952 million (March 2025: R250 million) was paid on the debt relief support received during the period. The Eskom Debt Relief Amendment Act, 5 of 2024, provided for the monthly payment of interest on amounts advanced as a loan at the 91-day Treasury Bill rate and power to the Minister of Finance to reduce the support to Eskom in the event of non-compliance with the conditions. • Noted that no new borrowings (except for drawdowns from existing facilities) were allowed from 1 April 2023 until the end of the debt relief period unless approved by the Minister of Finance. All other operational and relevant capital expenditure is financed through operational cash flows and drawdowns from existing project-related loan agreements. • Noted that the remaining R329 billion of government guarantees issued on borrowings before 31 March 2023 in terms of the government guarantee facility (initially R350 billion) will remain in place until the settlement of the guaranteed debt. • Considered the impact of the continuous increase in overdue electricity receivables, mainly due to growing municipal arrear debt (including the impact of non-recoverability of long outstanding electricity receivables) and the municipal debt relief arrangement that is yielding minimal results with most of the municipalities failing to comply with the conditions. This represents a material risk and places a significant financial strain on the going-concern assessment. Instructions for write-offs totalling R3.6 billion (March 2025: R0.5 billion) were received from National Treasury relating to municipalities that were compliant with the debt relief conditions in the period. The municipal arrear debt is a key matter that should be resolved before the legal separation of the distribution business as it impacts the liquidity and solvency as well as the financial sustainability of the business. • Considered the impact of continued improved generating plant performance as well as the ongoing positive and incremental impact of the Generation Recovery Plan, even though certain challenges remain. A worsening of the aged generating plant performance could negatively impact cash flow due to lost revenue and an increase in costs, including the level of spend required on open cycle gas turbines. The generation capacity of the group continues to be managed as a critical focus area to ensure appropriate steps are being taken to manage performance. • Considered the impact of the current economic climate, including that some rating agencies upgraded credit ratings and expressed a positive outlook on the group. ABC 7 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2025 2. Basis of preparation (continued) 2.1 Going concern (continued) • Acknowledged that an acceptable price increase, uncertainty of the impact of separate licensed electricity revenue determinations, application of the pricing methodology, continued improved plant performance, addressing payment by municipalities and the uncertainty and timing of a fully operational transmission system operator are critical factors in the going-concern assessment. • Noted the impact of non-technical energy losses because of illegal connections and the selling of illegal tokens which increase the current and future costs incurred by Eskom to produce energy with no corresponding revenue received. • Considered the impact on future cash flows of ongoing funds set aside for the funding of future nuclear decommissioning activities as directed by the National Nuclear Regulator (cumulative R2.8 billion including interest in treasury investments) whilst discussions regarding a permanent solution are underway. • Considered the impact of the licence extension on 6 November 2025 by the National Nuclear Regulator for the continued operation of Koeberg unit 2 to 9 November 2045 which will decrease the nuclear decommissioning provision because of later than expected cash outflows and funds to be set aside for the funding thereof. • Noted that R16.4 billion of the cash and cash equivalents balance was earmarked for the funding of future decommissioning activities and clean energy projects, consisting of an additional R4.3 billion set aside to fund future nuclear decommissioning activities as well as R3.0 billion for long-term coal decommissioning activities and R9.1 billion for clean energy projects. • Noted that the corporatisation and operationalisation of the National Electricity Distribution Company of South Africa (NEDCSA) is deferred due to external dependencies, inter-ministerial alignment and escalating municipal arrear debt. The legal separation of generation is reliant on the establishment and operationalisation of a new holding company that is dependent on the promulgation of new legislation and government policy. • Noted that mechanisms of support to NTCSA include, amongst others, approval of a short-term credit facility with Eskom Treasury as well as immediate settlement of intercompany energy purchases and sales. • Recognised that the group continues to face various challenges that resulted from mismanagement and corruption which could have an influence on stakeholder sentiment. Management is focusing on addressing irregularities, improving processes and strengthening controls as well as enhancing a culture of work ethics and adherence. • Noted the decisions received from National Energy Regulator of South Africa (NERSA) for the settlement of R40.2 billion relating to past Regulatory Clearing Account (RCA) cases (2015 to 2021) and R54 billion relating to Eskom’s court review application for the Multi-Year Price Determination (MYPD) 6 revenue determination (2026 to 2028). The MYPD 6 settlement resulted in additional revenue recovery of R12 billion for 2027 and R23 billion for 2028. The remaining recovery will be determined by NERSA following their governance processes. Acknowledged that a court order has been granted against NERSA regarding the R54 billion settlement which may impact revenue recovery. • Considered the possible impact if key risks materialise and acknowledged that improved generation plant performance (resulting in improved Energy Availability Factor), the management of operating and capital costs, limiting future investment in coal rehabilitation and clean energy projects as well as addressing the escalating overdue electricity receivables are critical factors in the going-concern assessment. The challenges that the group is facing are being addressed by the following mitigation strategies and actions: • Continuous engagement is taking place with the shareholder and National Treasury to ensure that the challenges that impact the going-concern status of the group are addressed satisfactorily within a reasonable timeframe. Government believes that it is critical that a credible, comprehensive and long-term strategy (which incorporates addressing municipal receivables, providing greater clarity and transparency in tariff design and addressing operational efficiencies) is developed to fully optimise the group and company’s financial position. The Eskom debt relief arrangement is assisting in setting the group on a path to long-term financial stability. Compliance by the municipalities with the requirements of the municipal debt relief programme as set out by National Treasury remains a key focus area as the programme did not yield the expected results. • There is continued focus on implementing various strategies to recover overdue electricity receivables. The successful outcome of these strategies remains uncertain. Eskom continually advised National Treasury of the municipalities not compliant with the municipal debt relief arrangement conditions. • Eskom continues to work with the Minister of Electricity and Energy leveraging the National Energy Crisis Committee structures to ensure that the Electricity Action Plan is implemented expeditiously in collaboration with all key stakeholders to resolve the electricity crisis. • The Electricity Regulation Amendment Act, 38 of 2024, provides for NERSA to consider the application and issue of licences, new generation capacity and electricity infrastructure. It also caters for the establishment of the transmission system operator in the future (fulfilled by NTCSA in the interim) on an open market platform that will allow for competitive electricity trading with entity specific revenue determinations by NERSA in line with the approved licences. The market operator licence was awarded to NTCSA on 27 November 2025. The transition period (uncertainty relating to detail and timing) is a time-consuming process involving various stakeholder consultations and approval by NERSA. The process for the development, approval and implementation of the market code, rules and trading platform (system) as well as the qualifying criteria for participants are underway. • The cost structures and capital programme of the group are continuously reviewed to extract cost savings as well as improve liquidity and ultimately financial sustainability. • The group is aware of outstanding RCA decisions and the impact of large capital projects on its statement of financial position and will only engage in such projects in compliance with the conditions attached to the Eskom Debt Relief Act, 7 of 2023, and with full disclosure and approval by the Minister of Finance and the shareholder. • The board considered that there are uncertainties and dependencies that exist both from the perspective of timing of interventions as well as whether the plans will materialise as anticipated. The events, conditions and assumptions described above inherently include material uncertainties that may cast significant doubt on the going concern of the group and company. The board has a reasonable expectation that the risks will be satisfactorily addressed with the mitigation strategies in place. The board continues to manage these strategies as a priority as it is important that they materialise as envisaged. The board assessed the current cash flow projections considering that future capital costs during the debt relief period will be funded from cash from operations. The board carefully considered the progress of the initiatives referred to in this note and the continued financial support from government through the debt relief arrangement. The board concluded that there is a reasonable expectation that the group have access to adequate resources and facilities to be able to continue its operations and fund the capital programme for the foreseeable future as a going concern. The condensed group interim financial statements have therefore been prepared on a going-concern basis. ABC 8 3. Significant changes in accounting policies The accounting policies are consistent with those applied in the audited financial statements as at 31 March 2025. 4. Critical accounting estimates and judgements The significant estimates and judgements made by management in applying the accounting policies and the key sources of estimation uncertainty were substantially the same as those applied to the financial statements as at and for the year ended 31 March 2025. 5. Segment information The operations of the group consist mainly of generation, distribution and transmission activities through Eskom and NTCSA. Operating segments Management identified the reportable segments based on the reports regularly provided, reviewed and used by the executive committee (Exco) who serves as the Chief Operating Decision Maker. Exco makes strategic decisions and assessed the performance of the operating segments based on a measure of profit or loss, significant assets and liabilities as well as key financial ratios and operational performance indicators. The amounts provided to Exco with respect to total assets and liabilities were measured in terms of IFRS Accounting Standards. These assets and liabilities were allocated based on the operation of the segment. The operations of the reportable segments are as follows: Segment Operations Generation Consists of generation, primary energy and group capital functions that respectively: • procures primary energy • manages capacity and generates electricity for sale to transmission • plan, develop, execute and monitor generation-related capital projects Transmission (NTCSA) Consists of transmission network, international customers and electricity trading functions that respectively: • operates and maintains the transmission network for transmitting electricity through the transmission network and manages real time supply and demand by the system operator • purchase and sale of bulk electricity with international customers through the international trader • operates the electricity trading system through the transmission central purchasing agent including purchase of electricity from generation and IPPs and sale of electricity to distribution across six transmission grids Distribution Consists of five operating clusters across nine provinces who provides, operates and maintains the distribution network for distributing electricity and the sale of electricity to local large (including municipalities) and small power users (including prepaid residential customers). All other segments Relates to operating segments which are below the quantitative thresholds for determining a reportable segment in terms of IFRS 8 Operating Segments which includes the group's subsidiaries as well as all service and strategic functions (corporate entities) which do not qualify as a reportable segment in terms of IFRS 8. Electricity is sold by distribution to external customers in terms of contractual agreements based on the NERSA approved regulated tariffs and accounted for as external revenue in terms of the principal revenue generating activities. Electricity is also sold to international customers through the international trader and accounted for as external revenue in terms of the principal revenue generating activities of the group. Inter-segment transactions Inter-segment transactions are based on contractual agreements between segments, including between the generation, transmission and distribution segments for the sale and purchase of electricity. Inter-segment energy related revenue and recoveries (achieved through transfer pricing) for the flow of electricity from generator to consumer are derived from the revenue in the approved corporate plan which is based on cost recovery plus a return on assets informed by the regulatory methodology principles and revenue determinations and adjusted in line with regulatory record of decisions, RCA and court decisions. Transfer pricing between the segments is adjusted in future periods as a recovery or reduction to account for differences between actual and estimated information. All direct corporate service costs were charged to the relevant segments based on service consumption. An appropriate cost driver apportionment was used to split the remaining overhead costs on a fair basis between segments. Net finance costs, net fair value and foreign exchange gains/(losses) were allocated to segments based on segment funding requirements. ABC 9 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2025 5. Segment information (continued) The segment information provided to Exco for the reportable segments is as follows: Generation Transmission Distribution All other Reallocation and Group segments inter-segment transactions Rm Rm Rm Rm Rm Rm 30 September 2025 External revenue – 9 068 182 228 516 (517) 191 295 Inter-segment revenue/recoveries 125 453 44 362 (169 742) 9 788 (9 861) – Total revenue 125 453 53 430 12 486 10 304 (10 378) 191 295 Profit/(loss) before tax 8 907 26 110 (6 023) 4 102 (583) 32 513 Income tax – (7 061) – (1 344) 172 (8 233) Profit/(loss) after tax 8 907 19 049 (6 023) 2 758 (411) 24 280 Segment assets 592 243 165 708 152 042 204 119 (182 323) 931 789 Segment liabilities 88 634 99 268 92 969 455 695 (162 388) 574 178 30 September 2024 External revenue – 8 619 175 092 450 (450) 183 711 Inter-segment revenue/recoveries 106 477 48 834 (155 283) 8 391 (8 419) – Total revenue 106 477 57 453 19 809 8 841 (8 869) 183 711 (Loss)/profit before tax (4 308) 26 170 (857) 955 1 069 23 029 Income tax – (4 636) – (242) (319) (5 197) (Loss)/profit after tax (4 308) 21 534 (857) 713 750 17 832 Segment assets 576 307 127 584 153 013 171 412 (150 715) 877 601 Segment liabilities 87 144 87 148 88 151 470 656 (126 486) 606 613 31 March 2025 External revenue – 21 202 319 701 1 408 (1 416) 340 895 Inter-segment revenue/recoveries 207 117 73 687 (280 788) 16 860 (16 876) – Total revenue 207 117 94 889 38 913 18 268 (18 292) 340 895 (Loss)/profit before tax (4 628) 32 972 (5 271) 505 291 23 869 Income tax – (5 761) – (1 363) (698) (7 822) (Loss)/profit after tax (4 628) 27 211 (5 271) (858) (407) 16 047 Segment assets 583 251 137 871 143 596 196 268 (149 155) 911 831 Segment liabilities 90 195 94 617 89 135 493 242 (133 703) 633 486 6. Issuances, repurchases and repayments of debt securities and borrowings and share capital 6.1 Debt securities and borrowings Debt securities and borrowings decreased mainly due to net repayments and exchange rate fluctuations caused by the strengthening of the rand against major currencies. Debt relief support from government of R56 billion was converted to equity. The debt raised and repaid by the group is disclosed in the statement of cash flows. 6.2 Share capital Unaudited Audited Unaudited six months ended year ended six months ended 30 September 31 March 30 September 2025 2025 2024 Shares Shares Shares Authorised ordinary shares 500 000 000 000 500 000 000 000 500 000 000 000 Issued ordinary shares Balance at beginning of the period 317 550 276 001 241 550 276 001 241 550 276 001 Share capital issued 64 000 000 000 76 000 000 000 76 000 000 000 Balance at end of the period 381 550 276 001 317 550 276 001 317 550 276 001 Shares to the value of R64 billion were issued on 6 August 2025 relating to R8 billion and R56 billion of debt relief support approved for conversion on 21 October 2024 and 11 June 2025 respectively. ABC 10 7. Dividend paid No dividend was paid to the shareholder during the six months ended 30 September 2025 nor in the comparative periods presented. 8. Significant events and transactions The following significant movements occurred in the six months ended 30 September 2025: 8.1 Derivatives held for risk management The net asset position relating to derivatives held for risk management (which hedges foreign debt and borrowings) decreased because of exchange rate fluctuations caused by the strengthening of the rand against major currencies. 8.2 Trade, finance lease, loan and other receivables Trade and other receivables increased because of the tariff increase and the impact of seasonality (refer to note 9) that resulted in higher revenue as well as a continued decline in municipal payment levels. A four-year payment arrangement with the City of Johannesburg was entered into for the settlement of overdue debt. This contract modification resulted in the derecognition of the trade receivable and recognition of a loan receivable. 8.3 Embedded derivatives Embedded derivatives decreased because of the continued ferrochrome market downturn resulting in lower estimated consumption and the strengthening of the rand against the dollar that resulted in a lower upside threshold linked to the ferrochrome and aluminium price. There was a marginal increase in the embedded derivative balance because of a negotiated pricing agreement with Transalloys (Pty) Ltd effective from 1 April 2025. 8.4 Inventories Inventories increased because of higher coal stock levels in line with the coal stock recovery plan. 8.5 Investments Insurance investments increased as insurance premiums received in advance by Escap SOC Ltd (Escap) were invested in money market instruments. 9. Seasonality of interim results The results of the group were impacted by the following seasonal fluctuations: • Revenue from electricity sales and consequently electricity receivables and the related value-added tax impact are normally higher during the first six months of the financial year (winter months) as compared to the summer months because of the high demand season tariff increases. • Primary energy costs associated with renewable IPP purchases are lower in the winter months (first six months of the financial year) due to a lower proportion of power being produced from renewable sources during this time. • Extensive planned and unplanned maintenance was undertaken in line with the generation recovery plan during the period to address plant performance challenges even though less routine maintenance work is normally undertaken during the winter months which coincides with the first six months of the financial year. ABC 11 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2025 Unaudited Unaudited Audited six months ended six months ended year ended 30 September 30 September 31 March 2025 2024 2025 Rm Rm Rm 10. Revenue Redistributors (metropolitan and municipal customers) 81 015 75 929 133 301 Invoiced to customers 90 508 83 860 145 299 Amounts not meeting collectability criteria (15 324) (12 981) (23 742) Recognised on a cash received basis 5 831 5 050 11 744 Residential 4 535 4 526 8 597 Invoiced to customers 4 523 4 501 8 532 Amounts not meeting collectability criteria (55) (33) (55) Recognised on a cash received basis 67 58 120 Industrial 29 917 33 420 63 509 Mining 32 509 29 548 52 761 Commercial 14 307 13 557 24 869 Agricultural 8 506 8 073 16 291 International 9 324 8 893 21 611 Other customers 2 608 2 504 4 687 Post-paid electricity sales 182 721 176 450 325 626 Prepaid electricity sales 7 878 6 498 13 275 Total electricity sales 190 599 182 948 338 901 Other 696 763 1 994 191 295 183 711 340 895 11. Primary energy Own generation costs 56 363 54 495 98 011 International electricity purchases 1 533 4 025 6 554 Independent power producers 20 510 20 768 45 642 78 406 79 288 150 207 12. Employee benefit expense Gross employee benefit expense 22 701 21 439 45 358 Capitalised to property, plant and equipment (1 098) (1 003) (2 198) 21 603 20 436 43 160 13. Finance cost Gross finance cost 22 478 24 705 46 079 Capitalised to property, plant and equipment (2 943) (3 678) (6 147) 19 535 21 027 39 932 14. Income tax Income tax for the interim period is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year which is applied to the pre-tax income of the interim period. ABC 12 15. Accounting classification and fair value 15.1 Accounting classification 30 September 2025 (unaudited) Fair value through Amortised Other1 Total profit or loss cost Rm Rm Rm Rm Financial assets Derivatives held for risk management and embedded derivatives 4 104 – 7 920 12 024 Foreign exchange contracts 108 – 28 136 Cross-currency swaps 244 – 7 892 8 136 Commodity forwards 45 – – 45 Commodity options 14 – – 14 Inflation-linked swaps 957 – – 957 Embedded derivatives 2 736 – – 2 736 Trade, finance lease, loan and other receivables – 47 102 157 47 259 Loans receivable – 3 493 – 3 493 Finance lease receivables – – 157 157 Trade and other receivables – 43 609 – 43 609 Investments 2 330 28 409 – 30 739 Treasury investments – 2 772 – 2 772 Negotiable certificates of deposit – 21 204 – 21 204 Floating rate notes – 2 883 – 2 883 Inflation-linked bonds – 1 550 – 1 550 Listed shares 2 330 – – 2 330 Cash and cash equivalents – 63 873 – 63 873 Bank balances – 25 562 – 25 562 Fixed deposits – 38 311 – 38 311 6 434 139 384 8 077 153 895 Financial liabilities Debt securities and borrowings – 362 727 – 362 727 Eskom bonds – 172 942 – 172 942 Eurorand zero coupon bonds – 9 643 – 9 643 Foreign bonds – 37 388 – 37 388 Development financing institutions – 124 701 – 124 701 Export credit facilities – 17 511 – 17 511 Other loans – 542 – 542 Derivatives held for risk management 4 412 – 729 5 141 Foreign exchange contracts 906 – 243 1 149 Cross-currency swaps 3 415 – 486 3 901 Commodity forwards 2 – – 2 Commodity options 12 – – 12 Credit default swaps 16 – – 16 Inflation-linked swaps 61 – – 61 Trade and other payables and lease liabilities – 47 520 7 225 54 745 Lease liabilities – – 7 225 7 225 Trade and other payables – 47 520 – 47 520 4 412 410 247 7 954 422 613 1. Other includes derivatives held for risk management designated as cash flow hedges measured at fair value through other comprehensive income and finance leases in terms of IFRS 16 Leases measured at amortised cost. The total assets measured at amortised cost amounts to R139 541 million and the total liabilities measured at amortised cost amounts to R417 472 million. ABC 13 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2025 15. Accounting classification and fair value (continued) 15.1 Accounting classification (continued) 31 March 2025 (audited) Fair value Amortised Others1 Total through profit cost or loss Rm Rm Rm Rm Financial assets Derivatives held for risk management and embedded derivatives 7 757 – 11 560 19 317 Foreign exchange contracts 264 – 34 298 Cross-currency swaps 2 872 – 11 526 14 398 Commodity forwards 3 – – 3 Commodity options 23 – – 23 Inflation-linked swaps 623 – – 623 Embedded derivatives 3 972 – – 3 972 Trade, finance lease, loan and other receivables – 39 081 174 39 255 Loans receivable – 1 892 – 1 892 Finance lease receivables – – 174 174 Trade and other receivables – 37 189 – 37 189 Investments 1 869 23 087 – 24 956 Treasury investments – 2 638 – 2 638 Negotiable certificates of deposit – 17 056 – 17 056 Floating rate notes – 2 886 – 2 886 Inflation-linked bonds – 507 – 507 Listed shares 1 869 – – 1 869 Cash and cash equivalents – 63 761 – 63 761 Bank balances – 31 684 – 31 684 Fixed deposits – 32 077 – 32 077 9 626 125 929 11 734 147 289 Financial liabilities Debt securities and borrowings – 372 655 – 372 655 Eskom bonds – 169 992 – 169 992 Eurorand zero coupon bonds – 9 077 – 9 077 Foreign bonds – 39 419 – 39 419 Development financing institutions – 133 562 – 133 562 Export credit facilities – 20 063 – 20 063 Other loans – 542 – 542 Derivatives held for risk management 1 252 – 395 1 647 Foreign exchange contracts 347 – 77 424 Cross-currency swaps 802 – 318 1 120 Commodity forwards 80 – – 80 Commodity options 6 – – 6 Credit default swaps 17 – – 17 Trade and other payables and lease liabilities – 51 734 7 710 59 444 Lease liabilities – – 7 710 7 710 Trade and other payables – 51 734 – 51 734 1 252 424 389 8 105 433 746 1. Other includes derivatives held for risk management designated as cash flow hedges measured at fair value through other comprehensive income and finance leases in terms of IFRS 16 measured at amortised cost. The total assets measured at amortised cost amounts to R126 103 million and the total liabilities measured at amortised cost amounts to R432 099 million. ABC 14 30 September 2024 (unaudited) Fair value through Amortised Other1 Total profit or loss cost Rm Rm Rm Rm Financial assets Derivatives held for risk management and embedded derivatives 11 984 – 12 422 24 406 Foreign exchange contracts 11 – 3 14 Cross-currency swaps 2 128 – 12 419 14 547 Commodity forwards 1 – – 1 Commodity options 6 – – 6 Inflation-linked swaps 418 – – 418 Embedded derivatives 9 420 – – 9 420 Trade, finance lease, loan and other receivables – 53 898 196 54 094 Loans receivable – 7 757 – 7 757 Finance lease receivables – – 196 196 Trade and other receivables – 46 141 – 46 141 Investments 1 841 24 203 – 26 044 Treasury investments – 2 509 – 2 509 Negotiable certificates of deposit – 17 726 – 17 726 Floating rate notes – 2 895 – 2 895 Inflation-linked bonds – 1 073 – 1 073 Listed shares 1 841 – – 1 841 Cash and cash equivalents – 33 011 – 33 011 Bank balances – 13 561 – 13 561 Fixed deposits – 19 450 – 19 450 13 825 111 112 12 618 137 555 Financial liabilities Debt securities and borrowings – 395 348 – 395 348 Eskom bonds – 168 621 – 168 621 Commercial paper – 681 – 681 Eurorand zero coupon bonds – 8 546 – 8 546 Foreign bonds – 59 092 – 59 092 Development financing institutions – 131 846 – 131 846 Export credit facilities – 21 120 – 21 120 Other loans – 5 442 – 5 442 Derivatives held for risk management 4 766 – 1 098 5 864 Foreign exchange contracts 2 472 – 558 3 030 Cross-currency swaps 1 848 – 540 2 388 Commodity forwards 370 – – 370 Commodity options 6 – – 6 Credit default swaps 23 – – 23 Inflation-linked swaps 47 – – 47 Trade and other payables and lease liabilities – 44 186 6 967 51 153 Lease liabilities – – 6 967 6 967 Trade and other payables – 44 186 – 44 186 4 766 439 534 8 065 452 365 1. Other includes derivatives held for risk management designated as cash flow hedges measured at fair value through other comprehensive income and finance leases in terms of IFRS 16 measured at amortised cost. The total assets measured at amortised cost amounts to R111 308 million and the total liabilities measured at amortised cost amounts to R446 501 million. ABC 15 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2025 15. Accounting classification and fair value (continued) 15.2 Fair value Valuation processes and principal markets The group has a control framework in place for the measurement of fair values. It includes a valuation team (supported by external specialists) that ultimately reports to the Chief Financial Officer and has overall responsibility for all significant fair value measurements. The valuation team regularly reviews significant unobservable inputs and valuation adjustments. Where third-party information, such as broker quotes or pricing services, is used to measure fair value, this information is assessed as to whether it provides adequate support for the accounting treatment applied including the level of the fair value hierarchy assigned to it. The group is involved in various principal markets because of the unique funding activities undertaken where the fair value is determined by each participant in the different principal markets. The principal markets include capital and money markets, development financing institutions and export credit agencies. Valuation techniques and levels Financial instrument Valuation technique Level 1: Quoted prices (unadjusted) in active markets Insurance investments (listed shares) Quoted bid price in active markets. A market is regarded as active when it is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Inputs other than quoted prices included within level 1 that are observable Loans receivable (excluding EFC), treasury A discounted cash flow technique is used which uses expected cash flows and a market-related investments, insurance investments (excluding discount rate. listed shares) and debt securities and borrowings Derivatives held for risk management Valuation determined with reference to broker quotes as well as use of discounted cash flow and option pricing models. Broker quotes are tested for reasonableness by discounting expected future cash flows using a market interest rate for a similar instrument at the measurement date. Valuations of cross-currency swaps include the credit risk of Eskom (known as debit value adjustment) and counterparties (known as credit value adjustment) where appropriate. A stochastic modelling approach is followed where the expected future exposure to credit risk for Eskom and its counterparties (considering default probabilities and recovery rates derived from market data) is modelled. Trade and other payables and cash and cash Fair values have not been disclosed for financial instruments where the carrying amounts are equivalents a reasonable approximation of fair value. Level 3: Unobservable inputs Embedded derivatives Fair value determined using unobservable inputs. Loans receivable (EFC home and other loans) The fair value of EFC loans are based on discounted cash flows using market-related interest rates. Trade and other receivables Fair value determined using unobservable inputs. The carrying value is equal to the fair value due to the expected short-term maturity of the trade receivables. The fair value for long-term receivables is based on discounted cash flows using the effective interest rate method. The carrying value approximates the fair value as the interest rates are market related and no additional disclosure is required. There were no changes in the valuation techniques applied nor transfers between level 1, 2 or 3 of the fair value hierarchy during the six months ended 30 September 2025 nor in the comparative periods. ABC 16 Fair value hierarchy The fair value hierarchy of financial instruments is as follows: 30 September 2025 31 March 2025 30 September 2024 (unaudited) (audited) (unaudited) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Rm Rm Rm Rm Rm Rm Rm Rm Rm Financial assets Loans receivable – 3 612 – – 1 893 – – 470 6 838 Home loans – – – – – – – – 6 838 Municipal payment arrangement – 3 586 – – 1 864 – – – – Other loans – 26 – – 29 – – 470 – Derivatives held for risk management and embedded derivatives – 9 288 2 736 – 15 345 3 972 – 14 986 9 420 Foreign exchange contracts – 136 – – 298 – – 14 – Cross-currency swaps – 8 136 – – 14 398 – – 14 547 – Commodity forwards – 45 – – 3 – – 1 – Commodity options – 14 – – 23 – – 6 – Inflation-linked swaps – 957 – – 623 – – 418 – Embedded derivatives – – 2 736 – – 3 972 – – 9 420 Investments 2 330 28 676 – 1 869 23 213 – 1 841 24 376 – Treasury investments – 2 850 – – 2 646 – – 2 529 – Negotiable certificates of deposit – 21 342 – – 17 153 – – 17 853 – Floating rate notes – 2 915 – – 2 901 – – 2 906 – Inflation-linked bonds – 1 569 – – 513 – – 1 088 – Listed shares 2 330 – – 1 869 – – 1 841 – – Assets held-for-sale – – 6 992 – – 7 233 – – – Home loans – – 6 436 – – 6 725 – – – Other loans – – 556 – – 508 – – – Financial liabilities Debt securities and borrowings – 356 792 – – 358 836 – – 387 341 – Eskom bonds – 163 325 – – 154 673 – – 156 284 – Commercial paper – – – – – – – 680 – Eurorand zero coupon bonds – 8 926 – – 7 788 – – 7 145 – Foreign bonds – 38 616 – – 42 751 – – 60 861 – Development financing institutions – 126 340 – – 131 570 – – 133 460 – Export credit facilities – 19 017 – – 21 477 – – 23 363 – Other loans – 568 – – 577 – – 5 548 – Derivatives held for risk management – 5 141 – – 1 647 – – 5 864 – Foreign exchange contracts – 1 149 – – 424 – – 3 030 – Cross-currency swaps – 3 901 – – 1 120 – – 2 388 – Commodity forwards – 2 – – 80 – – 370 – Commodity options – 12 – – 6 – – 6 – Credit default swaps – 16 – – 17 – – 23 – Inflation-linked swaps – 61 – – – – – 47 – 15.3 Day-one gain/loss The group recognises a day-one gain/loss on the initial recognition of cross-currency and inflation-linked swaps held as hedging instruments where applicable. Cross- Inflation- Total currency linked swaps swaps Rm Rm Rm Loss at 31 March 2024 (1 403) (10) (1 413) Day-one (loss)/gain recognised (86) 48 (38) Amortised to profit or loss 142 (2) 140 (Loss)/gain at 30 September 2024 (1 347) 36 (1 311) Day-one gain/(loss) recognised 214 (127) 87 Amortised to profit or loss 88 18 106 Loss at 31 March 2025 (1 045) (73) (1 118) Day-one gain recognised 691 – 691 Amortised to profit or loss 53 14 67 Loss at 30 September 2025 (301) (59) (360) ABC 17 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2025 16. Material events subsequent to 30 September 2025 The following significant events occurred after 30 September 2025: Changes to Eskom board of directors and Exco Mr LL Goqwana, Dr TL Mthombeni, Mr CR le Roux and Dr B Vilakazi were re-appointed as non-executive directors on the Eskom board effective from 1 October 2025. Ms BS Tshabalala (Lead Independent Director), Dr AJ Barendse, Dr EK Chiloane, Ms SN Govind, Dr DC Matshoga, Mr TP Nchocho and Dr JV Peach were appointed as non-executive directors on the Eskom board effective from 1 December 2025. The tenure of Mr L Mkabela (Lead Independent Director), Ms FBB Gany, Ms APZ Mafuleka, Dr C Von Eck, Ms T Ramano and Mr B Ntshalintshali as non-executive directors on the Eskom board concludes on 30 November 2025. Mr ML Bala was appointed as chief executive officer of NTCSA effective from 1 October 2025. Plant performance Koeberg power station unit 1 was reconnected to the national grid on 29 October 2025 after a planned refuelling outage from 17 February 2025 returning 930MW of electricity supply. Koeberg licence extension The National Nuclear Regulator approved a 20-year licence extension for Koeberg power station unit 2 on 6 November 2025 which allows for the continued operation of unit 2 from 9 November 2025, the current licence expiry date, until 9 November 2045. Credit ratings Standard & Poor’s Global Ratings upgraded the foreign and local currency long-term credit ratings of Eskom from B to B+ on 24 November 2025. Market operator licence NERSA awarded the market operator licence to NTCSA on 27 November 2025. 17. Exchange rates Unaudited Audited Unaudited 30 September 31 March 30 September 2025 2025 2024 Euro 20.26 19.81 19.24 United States dollar 17.27 18.31 17.28 Pound sterling 23.21 23.66 23.11 Japanese yen 0.12 0.12 1.70 18. Reportable irregularities There have been no significant changes to reportable irregularities as disclosed in the annual financial statements for the year ended 31 March 2025. ABC 18 19. New standards and interpretations 19.1 Standards, interpretations and amendments to published standards that are not yet effective The following new standards, interpretations and amendments to existing standards have been published that are applicable for future accounting periods that have not been adopted early by the group. These standards and interpretations will be applied in the first year that they are applicable to the group which is the financial period beginning on or after the effective date. Topic Summary of requirements Impact Classification and measurement of The amendments specify: No impact on the group as financial instruments – amendments • when a financial liability settled through an electronic payment financial liabilities are to IFRS 9 Financial Instruments and system can be deemed to be discharged before the settlement date derecognised on settlement IFRS 7 Financial Instruments: Disclosures • how to assess the contractual cash flow characteristics of date and there are no equity (1 January 2026) financial assets with contingent features when the nature of the instruments designated at fair contingent event does not relate directly to changes in basic value through other lending risks and costs comprehensive income or • new or amended disclosure requirements relating to investments financial assets with contingent in equity instruments designated at fair value through other features. comprehensive income and financial instruments with contingent features that do not relate directly to basic lending risks and costs These amendments have to be applied prospectively. Contracts referencing nature- The amendments provide guidance on: The amendments are not dependent electricity – amendments • the own-use exemption for purchasers of electricity under such expected to have a material to IFRS 9 and IFRS 7 power purchase agreements impact on the group as (1 January 2026) • hedge accounting requirements for companies that hedge existing power purchase their purchases or sales of electricity using power purchase agreements are for own use agreements and not designated for hedge • new disclosure requirements relating to contracts for nature- accounting. The relevant dependent electricity with specified characteristics disclosure will be updated as required. These amendments have to be applied prospectively. Annual improvements volume 11 – The amendments include the following: The amendments are not amendments to IFRS 1 First-time • IFRS 1: clarifies hedge accounting wording inconsistencies with expected to have a material Adoption of International Financial IFRS 9 impact on the group and will Reporting Standards, IFRS 7, IFRS 9, • IFRS 7: aligns the terminology and concepts with IFRS 13 Fair be adopted as required if IFRS 10 Consolidated Financial Value Measurement and updates the implementation guidance to applicable. Statements and IAS 7 Statement of simplify aspects of the requirements that are not illustrated Cash Flows • IFRS 9: updates cross-references for derecognition of lease (1 January 2026) liabilities and aligns terminology with IFRS 15 Revenue from Contracts with Customers • IFRS 10: clarifies inconsistencies relating to judgement when determining whether a par ty is acting as a de facto agent • IAS 7: replaces 'cost method' with 'at cost' for consistency with IFRS Accounting Standards These amendments have to be applied retrospectively. IFRS 18 Presentation and Disclosure in IFRS 18 will replace IAS 1 Presentation of Financial Statements while The group is assessing the Financial Statements carrying forward many of the requirements in IAS 1 and introduces presentation requirements for (1 January 2027) new requirements relating to: implementation. • presentation of specified categories and defined subtotals in the statement of profit or loss • disclosures on management-defined performance measures in the notes to the financial statements • improved aggregation and disaggregation Some of the requirements in IAS 1 moved to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and IFRS 7. Sale or contribution of assets between The amendments address the conflict between the guidance on No impact as the group is an investor and its associate or joint consolidation and equity accounting when a parent loses control of a currently not disposing of any venture – amendments to IFRS 10 and subsidiary in a transaction with an associate or joint venture. The investments in associates or IAS 28 Investments in Associates and amendments require that the full gain be recognised when the assets joint ventures. Joint Ventures (optional adoption, transferred meet the definition of a business under IFRS 3 Business effective date deferred indefinitely) Combinations. ABC 19 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2025 19. New standards and interpretations (continued) 19.2 Standards, interpretations and amendments to published standards that are effective and applicable to the group Topic Summary of requirements Impact Lack of exchangeability – amendments The amendments specify how to assess whether a currency is No impact on the group as all to IAS 21 The Effects of Changes in exchangeable and how to determine the exchange rate when it is foreign currency transactions Foreign Exchange Rates not. The amendments clarify: are exchangeable. (1 January 2025) • when a currency is exchangeable into another currency • how a company estimates a spot rate when a currency lacks exchangeability • the disclosure requirements for users to understand the impact of the currency not being exchangeable The amendments apply retrospectively. ABC 20 ESKOM HOLDINGS SOC LTD Interim Financial Statements 2025 Appendix – abbreviations, acronyms and definitions Accounting, audit and other financial terms EBITDA Profit before depreciation and amortisation expense and net fair value and foreign exchange (loss)/gain IAS® International Accounting Standard/(s) IFRS® Accounting Standards International Financial Reporting Standards as issued by the International Accounting Standards Board R Rand Rm Rand millions Accounting standards and interpretations IAS 1 Presentation of Financial Statements IAS 7 Statement of Cash Flows IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 21 The Effects of Changes in Foreign Exchange Rates IAS 28 Investments in Associates and Joint Ventures IAS 34 Interim Financial Reporting IFRS 1 First-time Adoption of International Financial Reporting Standards IFRS 3 Business Combinations IFRS 7 Financial Instruments: Disclosures IFRS 8 Operating Segments IFRS 9 Financial Instruments IFRS 10 Consolidated Financial Statements IFRS 13 Fair Value Measurement IFRS 15 Revenue from Contracts with Customers IFRS 16 Leases IFRS 18 Presentation and Disclosure in Financial Statements Entities EFC Eskom Finance Company SOC Ltd Escap Escap SOC Ltd Eskom Eskom Holdings SOC Ltd Group Eskom Holdings SOC Ltd and its subsidiaries NEDCSA National Electricity Distribution Company of South Africa SOC Ltd NTCSA National Transmission Company South Africa SOC Ltd Legislation Companies Act Companies Act, 71 of 2008 Eskom Debt Relief Act Eskom Debt Relief Act, 7 of 2023 Other Board Eskom board of directors CA(SA) Chartered Accountant of South Africa CFO Chief Financial Officer Exco Executive Committee IPP Independent Power Producer NERSA National Energy Regulator of South Africa MYPD Multi-Year Price Determination RCA Regulatory Clearing Account ABC 21 www.eskom.co.za ABC