Notes to the financial statements continued for the year ended 31 March 2023 FOR THE YEAR ENDED 31 MARCH 2023 ANNUAL FINANCIAL STATEMENTS CONDENSED GROUP INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023 ESKOM HOLDINGS SOC LTD Condensed Group Interim Financial Statements 2023 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 8 4 Critical accounting estimates and judgements 8 5 Segment information 9 6 Issuances, repurchases and repayments of debt securities and borrowings and share capital 10 7 Dividend paid 10 8 Significant events and transactions 10 9 Seasonality of interim results 11 10 Revenue 11 11 Primary energy 11 12 Employee benefit expense 11 13 Finance cost 12 14 Income tax 12 15 Accounting classification and fair value 12 16 Material events subsequent to 30 September 2023 17 17 Exchange rates 17 18 Reportable irregularities 17 19 New standards and interpretations 18 The condensed group interim financial statements for the six months ended 30 September 2023 have been prepared under the supervision of the acting chief financial officer (CFO), JM Buys CA(SA) and were published on 13 December 2023. The condensed group interim financial statements for the six months ended 30 September 2023 and 30 September 2022 have not been audited, reviewed or reported on by the external auditors of the group. The financial information for the year ended 31 March 2023 is as reflected in the audited financial statements. ESKOM HOLDINGS SOC LTD 1 Condensed Group Interim Financial Statements 2023 Approval of the condensed group interim financial Condensed group statement of financial position statements at 30 September 2023 Unaudited Audited Unaudited Basis of preparation 30 September 31 March 30 September The unaudited condensed group interim financial statements from page 3 to page 19 for the six months ended 30 September 2023 have 2023 2023 2022 been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS), the Rm Rm Rm presentation and disclosure requirements of International Accounting Standards (IAS) 34 Interim financial reporting and in the manner required Assets by the Companies Act. Non-current 750 541 743 235 723 303 Going concern Property, plant and equipment and intangible assets 672 946 672 768 670 312 The board made an assessment of the ability of the group to continue as a going concern in the foreseeable future. The considerations, challenges Future fuel supplies 6 415 7 167 5 934 and risks assessed by the board are detailed in note 2.1. Investment in equity-accounted investees 312 350 390 Inventories 12 574 12 209 12 086 The board considered that there are uncertainties and dependencies that exist both from a timing of intervention perspective as well as whether Deferred tax 16 719 17 190 8 043 the plans will materialise as anticipated. Derivatives held for risk management and embedded derivatives 25 329 18 405 19 912 Payments made in advance 2 166 1 986 1 961 The board has a reasonable expectation that the risks will be satisfactorily addressed with the mitigation strategies in place. The board continues Trade, finance lease, loan and other receivables 12 559 12 142 4 665 to manage these strategies as a priority as it is important that they materialise as envisaged. The board assessed the current cash flow projections Insurance investments 1 521 1 018 – considering that future capital costs 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 Current 99 957 84 652 102 338 expectation that the group has access to adequate resources and facilities to be able to continue its operations and fund the capital programme for Inventories 27 769 24 014 23 271 the foreseeable future as a going concern. The condensed group interim financial statements have therefore been prepared on a going-concern basis. Taxation 73 37 42 Derivatives held for risk management and embedded derivatives 2 085 9 410 12 575 Approval Payments made in advance 1 629 1 066 2 029 The board is of the opinion, based on the information available to date, that the condensed group interim financial statements fairly present the Trade, finance lease, loan and other receivables 35 668 26 980 29 716 financial position of the group at 30 September 2023 and the results of the operations and cash flow information for the six months then ended. Insurance investments 16 378 15 629 18 038 The condensed group interim financial statements have been approved by the board and signed on its behalf on 12 December 2023 by: Cash and cash equivalents 16 355 7 516 16 667 Assets held-for-sale – – 8 173 Total assets 850 498 827 887 833 814 Dr M Nyati C Cassim JM Buys Equity Chairman Acting group chief executive Acting chief financial officer Capital and reserves 238 242 236 087 246 920 Liabilities Non-current 491 045 473 282 453 438 Debt securities and borrowings 386 931 367 993 350 448 Derivatives held for risk management 60 241 324 Deferred tax – – 788 Employee benefit obligations 16 420 16 902 16 018 Provisions 49 157 50 143 49 258 Trade and other payables and lease liabilities 7 245 7 939 8 376 Payments received in advance, contract liabilities and deferred income 31 232 30 064 28 226 Current 121 211 118 518 132 467 Debt securities and borrowings 55 792 55 936 73 190 Derivatives held for risk management 1 599 1 788 1 084 Employee benefit obligations 4 468 3 584 4 334 Provisions 6 247 5 914 4 042 Trade and other payables and lease liabilities 47 150 44 975 43 043 Payments received in advance, contract liabilities and deferred income 5 955 6 045 6 411 Taxation – 276 363 Liabilities held-for-sale – – 989 Total liabilities 612 256 591 800 586 894 Total equity and liabilities 850 498 827 887 833 814 ESKOM HOLDINGS SOC LTD 2 3 Condensed Group Interim Financial Statements 2023 Condensed group income statement Condensed group statement of changes in equity for the six months ended 30 September 2023 for the six months ended 30 September 2023 Unaudited Unaudited Audited Share Cash flow Unrealised Foreign Accumulated Total six months ended six months ended year ended capital hedge fair value currency profit equity 30 September 30 September 31 March reserve reserve translation 2023 2022 2023 reserve Note Rm Rm Rm Rm Rm Rm Rm Rm Rm Balance at 31 March 2022 219 693 (858) (9 671) 14 27 879 237 057 Revenue 10 158 627 144 841 259 543 Profit for the period – – – – 3 839 3 839 Other income 681 2 053 2 742 Other comprehensive income, net of tax – 1 172 – 61 791 2 024 Primary energy 11 (85 089) (77 261) (154 942) Share capital issued 4 000 – – – – 4 000 Employee benefit expense 12 (17 352) (16 241) (32 321) Transfer between reserves – – 728 – (728) – Impairment and writedown of assets (1 873) (414) (2 182) Balance at 30 September 2022 223 693 314 (8 943) 75 31 781 246 920 Other expenses (17 252) (15 021) (34 795) Loss for the period – – – – (27 778) (27 778) Profit before depreciation and amortisation expense and net fair Other comprehensive loss, net of tax – (649) – (28) (235) (912) value and foreign exchange gains/(losses) (EBITDA)1 37 742 37 957 38 045 Share capital issued 17 857 – – – – 17 857 Depreciation and amortisation expense (16 837) (15 801) (32 485) Transfer between reserves – – (3 814) – 3 814 – Net fair value and foreign exchange gains/(losses) 974 582 (285) Balance at 31 March 2023 241 550 (335) (12 757) 47 7 582 236 087 Profit before net finance cost 21 879 22 738 5 275 Profit for the period – – – – 1 618 1 618 Net finance cost (19 700) (17 476) (37 015) Other comprehensive (loss)/income, net of tax – (332) – 25 844 537 Transfer between reserves – – 9 245 – (9 245) – Finance income 2 283 1 471 3 365 Finance cost 13 (21 983) (18 947) (40 380) Balance at 30 September 2023 241 550 (667) (3 512) 72 799 238 242 Share of profit of equity-accounted investees, net of tax 71 50 93 Profit/(loss) before tax 2 250 5 312 (31 647) Income tax 14 (632) (1 473) 7 708 Profit/(loss) for the period2 1 618 3 839 (23 939) Condensed group statement of comprehensive income for the six months ended 30 September 2023 Unaudited Unaudited Audited six months ended six months ended year ended 30 September 30 September 31 March 2023 2022 2023 Rm Rm Rm Profit/(loss) for the period2 1 618 3 839 (23 939) Other comprehensive income 537 2 024 1 112 Items that may be reclassified subsequently to profit or loss (307) 1 233 556 Cash flow hedges (455) 1 606 717 Foreign currency translation differences on foreign operations 25 61 33 Income tax thereon 123 (434) (194) Items that may not be reclassified subsequently to profit or loss 844 791 556 Re-measurement of benefits 1 156 1 083 761 Income tax thereon (312) (292) (205) Total comprehensive income/(loss) for the period2 2 155 5 863 (22 827) 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. ESKOM HOLDINGS SOC LTD 4 5 Condensed Group Interim Financial Statements 2023 Condensed group statement of cash flows Notes to the condensed group interim financial statements for the six months ended 30 September 2023 for the six months ended 30 September 2023 Unaudited Unaudited Audited 1. Structure and activities six months ended six months ended year ended Eskom Holdings SOC Ltd (Eskom), a state-owned company and holding company of the group, is incorporated and domiciled in the 30 September 30 September 31 March Republic of South Africa. Eskom is a vertically integrated operation that generates, transmits and distributes electricity to local industrial, 2023 2022 2023 mining, commercial, agricultural, redistributor (metropolitan and other municipalities) and residential customers, and to international Rm Rm Rm customers in southern Africa. Eskom also purchases electricity from Independent Power Producers (IPPs) and international suppliers in southern Africa. These represent the significant activities of the group. The business focus of the subsidiaries is primarily to support the Cash flows from operating activities electricity business. Profit/(loss) before tax 2 250 5 312 (31 647) Adjustment for non-cash items 37 608 34 683 75 936 Depreciation and amortisation expense 16 837 15 801 32 485 2. Basis of preparation The condensed group interim financial statements of Eskom as at and for the six months ended 30 September 2023 comprise the Finance cost 21 983 18 947 40 380 company, its subsidiaries, joint ventures, associates and structured entities (together, the group). The condensed group interim financial Other (1 212) (65) 3 071 statements do not include all of the information required for full financial statements and should be read in conjunction with the Changes in working capital (13 316) (7 332) (2 320) Eskom Holdings SOC Ltd 31 March 2023 group annual financial statements. The annual financial statements of the group as at and for the year ended 31 March 2023 are available for inspection at the company’s registered office and on the Eskom website at www.eskom.co.za. Cash generated from operations 26 542 32 663 41 969 Net cash generated from/(used in) derivatives held for risk management 600 (154) 97 The condensed group interim financial statements are prepared in accordance with the recognition and measurement requirements of Finance income received 202 298 462 IFRS, the presentation and disclosure requirements of IAS 34 Interim financial reporting, and in the manner required by the Companies Act. Finance cost paid (12) (88) (109) Income taxes paid (661) (369) (892) The condensed group interim financial statements are prepared on the historical-cost basis except for the following items which are measured at fair value: 26 671 32 350 41 527 • derivatives held for risk management Cash flows used in investing activities • embedded derivatives Disposals of property, plant and equipment and intangible assets 285 274 746 • certain investments and financial trading instruments Acquisitions of property, plant and equipment and intangible assets (15 018) (13 332) (31 865) Acquisitions of future fuel supplies (754) (1 411) (3 137) 2.1 Going concern Disposals of insurance investments 12 381 15 499 36 850 The board made an assessment of the ability of the group to continue as a going concern in the foreseeable future. The board: Acquisitions of insurance investments (13 576) (16 543) (36 203) • Reviewed the performance of the group for the period ended 30 September 2023 including the net profit after tax of R1 618 million and Payments made in advance (118) – (442) the net current liabilities of R21 254 million. Cash used in provisions (121) (1 309) (1 900) • Noted the deterioration of some of the group’s financial indicators compared to 31 March 2023. Net cash (used in)/generated from derivatives held for risk management (193) 33 (18) • Noted the increase in the cash and cash equivalents balance of R16 355 million from R7 516 million at 31 March 2023. Finance income received 1 070 791 1 792 • Considered the impact of the cash flow forecast for the 18 months ending 31 March 2025 (that provided for higher use of the open cycle Other cash from investing activities 156 176 363 gas turbines (OCGTs) and increased capital expenditure) and the projected net loss before tax for 2024, estimated at R29 153 million. (15 888) (15 822) (33 814) • Considered that Eskom is in a constrained liquidity situation that resulted from low tariffs, continued contracted sales volumes, above inflation cost increases, constrained generating plant performance, increased non-payment by municipalities and the capital programme Cash flows used in financing activities to increase and replace generating and transmitting capacity. Debt securities and borrowings raised 35 670 837 29 603 • Noted the debt relief arrangement from government of R254 billion, as set out in the Eskom Debt Relief Act, 7 of 2023, that provides Payments made in advance (312) (139) (369) liquidity support of R78 billion in 2024, R66 billion in 2025 and R40 billion in 2026 to address Eskom’s debt and interest payments as they Debt securities and borrowings repaid (30 850) (5 990) (39 110) fall due, together with the takeover of R70 billion of Eskom debt (principal and future interest) in 2026, thereby allowing Eskom to better Share capital issued – 4 000 21 857 manage its liquidity position. Noted and considered the future implications of the proposed amendment to the Eskom Debt Relief Act Net cash from derivatives held for risk management 11 399 1 150 4 894 (refer to note 16) that provides for the payment of interest on the amounts advanced as a loan and power to the Minister of Finance to Cash used in lease liabilities (360) (403) (687) reduce the amounts to be advanced to Eskom in the event of non-compliance with the set conditions. Eskom received R16 billion of debt Net cash used in financial trading instruments – (2) (2) relief in August 2023 and R20 billion in October 2023. The support was advanced to Eskom as a loan that will be settled in Eskom ordinary Finance income received 594 333 789 shares subject to Eskom complying with the conditions as set out in the Act. Finance cost paid (18 063) (15 473) (33 069) • Noted and considered the potential impact of further delays in the sale of Eskom Finance Company (EFC) on the amount and timing of Taxes paid (36) (29) (58) debt relief as this matter is a long outstanding cabinet decision arising from previous government support. • Noted that no new borrowings (except for drawdowns from existing facilities) were allowed from 1 April 2023 until the end of the (1 958) (15 716) (16 152) debt relief period, unless approved by the Minister of Finance, and that existing government guarantees issued on borrowings before Net increase/(decrease) in cash and cash equivalents 8 825 812 (8 439) 31 March 2023 in terms of the government guarantee facility of R350 billion remain in place until settlement of the guaranteed debt. All Cash and cash equivalents at beginning of the period 7 516 15 885 15 885 other operational and relevant capital expenditure spending are financed through operational cash flows and drawdowns from existing Foreign currency translation 25 61 33 project related loan agreements. Effect of movements in exchange rates on cash held (11) 39 37 • Considered the impact on projected future cash flows of annual deposits which will be required for a ring-fenced financial nuclear Assets and liabilities held-for-sale – (130) – decommissioning fund as directed by the National Nuclear Regulator. • Considered the impact of the current economic climate, including that rating agencies expressed an improved outlook on Eskom after the Cash and cash equivalents at end of the period 16 355 16 667 7 516 enactment of the Eskom Debt Relief Act. • Considered the impact of the continuous deteriorating generation plant performance and increased reliance on more expensive sources (IPPs and OCGTs) and load curtailment to manage supply. A further worsening of generating plant performance could negatively impact cash flow due to lost revenue and an increase in costs, in particular the level of spend required on OCGTs. The generation capacity could also be impacted if the extension of the licence for Koeberg power station, which expires in June 2024, is delayed beyond the original operating life. • Considered the impact of the continuous increase in overdue electricity receivables (including the impact of non-recoverability of long outstanding electricity receivables) and the municipal debt relief arrangement that is intended to assist with the overdue electricity receivable challenge. • Acknowledged that an acceptable price increase and improved plant performance are critical factors in the going-concern assessment. • Recognised that Eskom continues to face various challenges that resulted from mismanagement and corruption that could have an influence on stakeholder sentiment. Progress has been made in cleaning-up irregularities, improving processes and strengthening controls, but it is taking time to identify all issues and take appropriate corrective action and implement consequence management. • Considered the possible impact if key risks materialise and acknowledged that improved plant performance, the management of operating (particularly generating expenditure) and capital costs, as well as addressing the escalating overdue electricity receivables are critical factors in the going-concern assessment. ESKOM HOLDINGS SOC LTD 6 7 Condensed Group Interim Financial Statements 2023 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2023 2. Basis of preparation continued 5. Segment information 2.1 Going concern continued Management has determined the reportable segments based on the reports regularly provided, reviewed and used by Executive The challenges that the group is facing are being addressed by the following mitigation strategies and actions: Committee (Exco) to make strategic decisions and assess performance of the segments. Exco assesses the performance of the operating • Continuous engagement is taking place with the shareholder and National Treasury to ensure that the challenges that impact the segments based on a measure of profit or loss consistent with that of the financial statements. The amounts provided to Exco with respect group’s going-concern status are addressed satisfactorily within a reasonable timeframe. Government believes that it is critical that a to total assets and liabilities are measured in terms of IFRS. These assets and liabilities are allocated based on the operation of the segment credible, comprehensive and long-term strategy (which incorporates addressing municipal receivables, providing greater clarity and and the physical location of the assets. transparency in tariff pricing and addressing operational efficiencies) is developed to fully optimise Eskom’s balance sheet. The Eskom The operations in each of the group’s reportable segments are as follows: debt relief arrangement and the municipal debt relief programme will assist in putting Eskom on a path to long-term financial stability. • Eskom is working with National Treasury and Department of Public Enterprises (DPE) regarding Eskom’s compliance with the Segment Operations conditions of the debt relief arrangement to enable the conversion of the loan to equity. Generation Consists of the following components: • The sale of EFC is being prioritised and managed as a condition of the debt relief from government and, if not disposed of, would impact • primary energy procurement the amount available for drawdown in 2024 and 2025. • electricity generation • Eskom is working with the National Nuclear Regulator to finalise the details of a ring-fenced nuclear decommissioning fund to ensure • planning, development, execution and monitoring of generation-related capital projects sufficient financial resources will be available to fund decommissioning costs. Continuous engagement with the National Nuclear Regulator is taking place to ensure both parties are aligned, with the strategic intent of finalising the licence conditions in the expected Transmission Consists of the following components: timeframe. • transmission grids and the integrated demand management area. These functions operate and maintain the • The group’s generation capacity is managed as a critical focus area to ensure appropriate steps are being taken to manage the transmission network for transmitting electricity and also sell bulk electricity to international customers performance challenges, including ongoing interaction with the National Nuclear Regulator as part of the licence extension activities. • the southern African energy and energy planning and market development areas. Their activities include systems • Eskom is working with the Minister of Electricity, leveraging the National Energy Crisis Committee structures, to ensure that the operations, purchase or sale of electricity from or to southern African countries, purchase of electricity from IPPs Electricity Action Plan is implemented expeditiously in collaboration with all key stakeholders. and wholesale energy for the purposes of energy trading • The Eskom roadmap released by the DPE on 20 October 2019 provides a degree of clarity on the role that Eskom will play in the Distribution Consists of five operating clusters who provide, operate and maintain the distribution network for distributing unfolding future of the country’s electricity supply industry. electricity as well as a retail function that sells electricity to local large and small power users • Progress has been made to prepare the business for the legal separation. Obtaining the required lender consent is the only remaining All other segments Relates to operating segments which are below the quantitative thresholds for determining a reportable segment condition to give effect to the suspensive sale agreement of National Transmission Company South Africa SOC Ltd (NTCSA). in terms of IFRS 8 Operating segments which includes the group’s subsidiaries as well as all service and strategic Discussions are ongoing with lenders from whom consent is required and requests for consent have been made. Government is in functions which do not qualify as a reportable segment in terms of IFRS 8 the process of revising the Electricity Regulation Act to allow other players to enter the electricity market. It is expected that NTCSA will be operationalised in the 2025 financial year with the National Electricity Distribution Company of South Africa SOC Ltd in the The revenue earned by subsidiaries is presented in the segment note in line with what is reported in the respective subsidiary financial year thereafter. statements. Inter-segment transfer pricing for the flow of electricity from generator to consumer is allocated between the generation, • The cost structures and capital programme of the group are continuously reviewed to extract cost savings and improve cash flows. transmission and distribution segments based on cost recovery plus a return on assets informed by the regulatory determination. The • The group is aware of the impact of large capital projects on its statement of financial position and will only engage in such projects in transmission revenue increased during the year as a result of increased IPP costs in the regulatory determination that is a pass through compliance with the conditions attached to the Eskom Debt Relief Act and with full disclosure and approval by the Minister of Finance cost to the consumer. All direct corporate overhead costs are allocated to the relevant segments and a cost driver apportionment is used and the shareholder. to split the remaining overhead costs on an equal basis between segments. Net finance costs, net fair value and foreign exchange gains/ • There is continued focus on implementing various strategies in an effort to recover overdue trade receivables. The successful outcome (losses) are allocated to segments based on divisional funding requirements. of these strategies remains uncertain. Eskom is working with National Treasury on the implementation of the municipal debt relief arrangement. The board considered that there are uncertainties and dependencies that exist both from a timing of intervention perspective as well as whether the plans will materialise as anticipated. The life extension of the nuclear plant is also dependent on several key challenges which, individually or collectively, may have a further material impact on the current operational challenges. The events, conditions and assumptions described above inherently include material uncertainties that may cast significant doubt on the going concern. 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 will be funded from cash from operations. The board concluded after carefully considering the progress of the initiatives above and the continued financial support from the government through the debt relief arrangement that there is a reasonable expectation that the group has 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. 3. Significant changes in accounting policies The accounting policies are consistent with those applied in the audited financial statements as at 31 March 2023. 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 2023. ESKOM HOLDINGS SOC LTD 8 9 Condensed Group Interim Financial Statements 2023 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2023 5. Segment information continued 8.2 Inventories The segment information provided to Exco for the reportable segments is as follows: Inventories increased because of higher coal stock levels as envisioned in the coal stock recovery plan and increased spares and consumables for planned outages. Generation Transmission Distribution All other Reallocation and Group segments inter-segment 8.3 Trade and other receivables and net impairment loss transactions Trade and other receivables increased because of the seasonality impact (refer to note 9) and declining municipal payment levels which Rm Rm Rm Rm Rm Rm resulted in an increase in net impairment loss. 30 September 2023 External revenue – 5 057 153 570 843 (843) 158 627 9. Seasonality of interim results Inter-segment revenue/recoveries 95 782 42 368 (138 113) 6 624 (6 661) – The results of the group are impacted by the following seasonal fluctuations: Total revenue 95 782 47 425 15 457 7 467 (7 504) 158 627 • Revenue from electricity sales and consequently electricity receivables and the related VAT impact are normally higher during the (Loss)/profit before tax (10 853) 13 561 (947) 818 (329) 2 250 first six months of the financial year (winter months) as compared to the summer months because of the high demand season tariff Income tax – – – (692) 60 (632) increases. Sales volumes continue to be impacted negatively by the ongoing loadshedding and load curtailment. (Loss)/profit after tax (10 853) 13 561 (947) 126 (269) 1 618 • 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. Plant performance issues and delays Segment assets 555 418 82 045 130 778 115 414 (33 157) 850 498 in the IPP programme negatively impacted on cost as higher utilisation of Eskom and IPP OCGTs were required. The higher than Segment liabilities 84 807 21 990 54 809 484 764 (34 114) 612 256 anticipated utilisation of OCGTs were compensated by savings on other expenditure. 30 September 2022 • Less routine maintenance work (and consequently lower costs) is normally undertaken during the winter months which coincides with External revenue – 5 224 139 617 609 (609) 144 841 the first six months of the financial year. Extensive planned maintenance was performed on Koeberg unit 1 aligned to the generation Inter-segment revenue/recoveries 89 168 29 139 (118 272) 7 171 (7 206) – recovery plan. Total revenue 89 168 34 363 21 345 7 780 (7 815) 144 841 (Loss)/profit before tax (5 276) 6 913 6 988 1 386 (4 699) 5 312 Unaudited Unaudited Audited Income tax – – – (2 741) 1 268 (1 473) six months ended six months ended year ended (Loss)/profit after tax (5 276) 6 913 6 988 (1 355) (3 431) 3 839 30 September 30 September 31 March 2023 2022 2023 Segment assets 550 682 81 032 124 901 109 381 (32 182) 833 814 Rm Rm Rm Segment liabilities 81 544 20 683 52 414 463 552 (31 299) 586 894 31 March 2023 10. Revenue External revenue – 10 276 249 267 1 537 (1 537) 259 543 Redistributors 64 465 60 806 103 475 Inter-segment revenue/recoveries 168 015 48 761 (216 717) 14 280 (14 339) – Invoiced to customers 70 691 66 002 111 414 Total revenue 168 015 59 037 32 550 15 817 (15 876) 259 543 Amounts not meeting revenue recognition criteria (10 580) (8 931) (15 421) Recognised on a cash received basis 4 354 3 735 7 482 (Loss)/profit before tax (34 526) (1 036) 3 554 2 382 (2 021) (31 647) Income tax – – – 7 199 509 7 708 Residential 3 994 3 829 7 016 (Loss)/profit after tax (34 526) (1 036) 3 554 9 581 (1 512) (23 939) Invoiced to customers 4 027 4 008 7 288 Segment assets 551 992 81 373 121 620 101 892 (28 990) 827 887 Amounts not meeting revenue recognition criteria (83) (216) (353) Segment liabilities 85 639 21 306 52 747 462 216 (30 108) 591 800 Recognised on a cash received basis 50 37 81 Industrial 31 891 28 513 53 269 Mining 26 816 22 065 39 958 6. Issuances, repurchases and repayments of debt securities and borrowings and share capital Commercial 11 178 9 879 17 622 6.1 Debt securities and borrowings Agricultural 6 592 5 965 11 660 Drawdowns were made on existing development financing institutions facilities in place at 31 March 2023. The debt relief received was International 5 267 5 435 10 699 used to repay loans and interest. The debt raised and repaid by the group is disclosed in the statement of cash flows. Other customers 2 240 2 025 3 653 Post-paid electricity sales 152 443 138 517 247 352 6.2 Share capital Prepaid electricity sales 5 460 5 537 10 485 Unaudited Audited Unaudited Total electricity sales 157 903 144 054 257 837 six months ended year ended six months ended Other 724 787 1 706 30 September 2023 31 March 2023 30 September 2022 Shares Shares Shares 158 627 144 841 259 543 Authorised ordinary shares 300 000 000 000 300 000 000 000 300 000 000 000 Sales of electricity to local customers are included in the distribution operating segment. International sales are included in the transmission Issued ordinary shares segment. Other revenue consists of reconnection fees and ad hoc sundry Balance at beginning of the period 241 550 276 001 219 692 945 001 219 692 945 001 revenue. Connections occur mainly within the transmission and Share capital issued – 21 857 331 000 4 000 000 000 distribution operating segments. Balance at end of the period 241 550 276 001 241 550 276 001 223 692 945 001 11. Primary energy Own generation costs 58 161 54 557 106 706 International electricity purchases 3 981 2 856 6 471 7. Dividend paid Independent power producers 22 947 19 848 41 765 No dividend was paid to the shareholder during the six months ended 30 September 2023 nor in the comparative periods presented. 85 089 77 261 154 942 8. Significant events and transactions The following significant movements occurred in the six months ended 30 September 2023: 12. Employee benefit expense 8.1 Movements in debt securities and borrowings 17 206 34 286 Gross employee benefit expense 18 327 Debt securities and borrowings increased mainly due to debt raised, inclusive of the debt relief support from government of R16 billion Capitalised to property, plant and equipment (975) (965) (1 965) received in August 2023 which is accounted for as a subordinated loan that is expected to be settled in Eskom ordinary shares upon complying with the set conditions. 17 352 16 241 32 321 ESKOM HOLDINGS SOC LTD 10 11 Condensed Group Interim Financial Statements 2023 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2023 Unaudited Unaudited Audited 31 March 2023 (audited) six months ended six months ended year ended Fair value through Amortised Other assets Total 30 September 30 September 31 March profit or loss cost and liabilities1 2023 2022 2023 Rm Rm Rm Rm Rm Rm Rm Financial assets 13. Finance cost Derivatives held for risk management and Gross finance cost 25 544 22 813 47 839 embedded derivatives 4 713 – 23 102 27 815 Capitalised to property, plant and equipment (3 561) (3 866) (7 459) Foreign exchange contracts 943 – 145 1 088 21 983 18 947 40 380 Cross-currency swaps 2 661 – 22 957 25 618 Commodity forwards 1 – – 1 Credit default swaps 5 – – 5 14. Income tax Inflation-linked swaps 280 – – 280 Income tax for the interim period is recognised based on management’s best estimate of the weighted average annual income tax rate Embedded derivatives 823 – – 823 expected for the full financial year which is applied to the pre-tax income of the interim period. Trade, finance lease, loan and other receivables – 34 926 249 35 175 Loans receivable – 8 070 – 8 070 15. Accounting classification and fair value Finance lease receivables – – 249 249 15.1 Accounting classification Trade and other receivables – 26 856 – 26 856 30 September 2023 (unaudited) Insurance investments 1 514 15 133 – 16 647 Fair value through Amortised Other assets Total profit or loss cost and liabilities1 Negotiable certificates of deposit – 14 115 – 14 115 Rm Rm Rm Rm Floating rate notes – 1 018 – 1 018 Listed shares 1 514 – – 1 514 Financial assets Derivatives held for risk management and Cash and cash equivalents – 7 516 – 7 516 embedded derivatives 4 125 – 23 289 27 414 Bank balances – 7 514 – 7 514 Foreign exchange contracts 378 – 27 405 Fixed deposits – 2 – 2 Cross-currency swaps 2 538 – 23 262 25 800 Commodity forwards 259 – – 259 6 227 57 575 23 351 87 153 Inflation-linked swaps 295 – – 295 Embedded derivatives 655 – – 655 Financial liabilities Debt securities and borrowings – 423 929 – 423 929 Trade, finance lease, loan and other receivables – 43 642 236 43 878 Eskom bonds – 160 218 – 160 218 Loans receivable – 8 063 – 8 063 Commercial paper – 896 – 896 Finance lease receivables – – 236 236 Trade and other receivables – 35 579 – 35 579 Eurorand zero coupon bonds – 7 128 – 7 128 Foreign bonds – 75 411 – 75 411 Insurance investments 1 467 16 432 – 17 899 Development financing institutions – 137 352 – 137 352 Negotiable certificates of deposit – 14 911 – 14 911 Export credit facilities – 15 956 – 15 956 Floating rate notes – 1 021 – 1 021 Other loans – 26 968 – 26 968 Inflation-linked bonds – 500 – 500 Listed shares 1 467 – – 1 467 Derivatives held for risk management 1 219 – 810 2 029 Cash and cash equivalents – 16 355 – 16 355 Foreign exchange contracts 842 – 28 870 Cross-currency swaps 52 – 782 834 Bank balances – 9 226 – 9 226 Fixed deposits – 7 129 – 7 129 Commodity forwards 232 – – 232 Credit default swaps 92 – – 92 5 592 76 429 23 525 105 546 Inflation-linked swaps 1 – – 1 Financial liabilities Trade and other payables and lease liabilities – 42 817 8 126 50 943 Debt securities and borrowings – 442 723 – 442 723 Lease liabilities – – 8 126 8 126 Eskom bonds – 162 881 – 162 881 Trade and other payables – 42 817 – 42 817 Commercial paper – 827 – 827 Eurorand zero coupon bonds – 7 572 – 7 572 1 219 466 746 8 936 476 901 Foreign bonds – 63 965 – 63 965 Development financing institutions – 139 702 – 139 702 Export credit facilities – 27 863 – 27 863 Subordinated loan from shareholder – 16 000 – 16 000 Other loans – 23 913 – 23 913 Derivatives held for risk management 890 – 769 1 659 Foreign exchange contracts 821 – 69 890 Cross-currency swaps 11 – 700 711 Credit default swaps 56 – – 56 Inflation-linked swaps 2 – – 2 Trade and other payables and lease liabilities – 43 663 7 769 51 432 Lease liabilities – – 7 769 7 769 Trade and other payables – 43 663 – 43 663 890 486 386 8 538 495 814 1. Other assets and liabilities include derivatives held for risk management designated as hedges measured at fair value through other comprehensive income and 1. Other assets and liabilities include derivatives held for risk management designated as hedges measured at fair value through other comprehensive income and finance leases measured at amortised cost. The total assets measured at amortised cost amounts to R76 665 million and the total liabilities measured at amortised finance leases measured at amortised cost. The total assets measured at amortised cost amounts to R57 824 million and the total liabilities measured at amortised cost amounts to R494 155 million. cost amounts to R474 872 million. ESKOM HOLDINGS SOC LTD 12 13 Condensed Group Interim Financial Statements 2023 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2023 5. Accounting classification and fair value continued 15.2 Fair value 15.1 Accounting classification continued Valuation processes and principal markets The group has a control framework in place for the measurement of fair values. It includes a valuation team that ultimately reports to the 30 September 2022 (unaudited) acting CFO and has overall responsibility for all significant fair value measurements. Fair value through Amortised Other assets Total profit or loss cost and liabilities1 The valuation team regularly reviews significant unobservable inputs and valuation adjustments. Where third-party information, such as Rm Rm Rm Rm broker quotes or pricing services, is used to measure fair value, this information is assessed as to whether it provides adequate support Financial assets for the accounting treatment applied including the level of the fair value hierarchy assigned to it. Derivatives held for risk management and The group is involved in various principal markets because of the unique funding activities undertaken where the fair value is determined embedded derivatives 19 892 – 12 595 32 487 by each participant in the different principal markets. The principal markets include capital and money markets, development financing Foreign exchange contracts 3 824 – 224 4 048 institutions and export credit agencies. Cross-currency swaps 14 951 – 12 371 27 322 Commodity forwards 11 – – 11 Valuation techniques and levels Credit default swaps 5 – – 5 Financial instrument Valuation technique Inflation-linked swaps 287 – – 287 Embedded derivatives 814 – – 814 Level 1: Quoted prices (unadjusted) in active markets Trade, finance lease, loan and other receivables – 34 104 273 34 377 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 Loans receivable – 24 – 24 frequency and volume to provide pricing information on an ongoing basis. Finance lease receivables – – 273 273 Trade and other receivables – 34 080 – 34 080 Level 2: Observable inputs other than quoted prices included within level 1 Insurance investments 1 900 16 138 – 18 038 Loans receivable (excluding home loans), insurance Valuation determined with reference to broker quotes as well as use of discounted investments (excluding listed shares) and debt cash flow and option pricing models. Broker quotes are tested for reasonableness Negotiable certificates of deposit – 16 138 – 16 138 securities and borrowings by discounting expected future cash flows using a market interest rate for a similar Listed shares 1 900 – – 1 900 instrument at the measurement date. Cash and cash equivalents – 16 667 – 16 667 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 Bank balances – 7 843 – 7 843 by discounting expected future cash flows using a market interest rate for a similar Fixed deposits – 8 824 – 8 824 instrument at the measurement date. 21 792 66 909 12 868 101 569 Valuations of cross-currency swaps include the credit risk of Eskom (known as debit value adjustment) and counterparties (known as credit value adjustment) where Financial liabilities appropriate. A stochastic modelling approach is followed where the expected Debt securities and borrowings – 423 638 – 423 638 future exposure to credit risk for Eskom and its counterparties (considering default Eskom bonds – 164 294 – 164 294 probabilities and recovery rates derived from market data) is modelled. Eurorand zero coupon bonds – 6 712 – 6 712 Trade and other payables and cash and cash Fair values have not been disclosed for financial instruments where the carrying Foreign bonds – 76 415 – 76 415 equivalents amounts are a reasonable approximation of fair value. Development financing institutions – 135 276 – 135 276 Export credit facilities – 17 698 – 17 698 Level 3: Unobservable inputs Other loans – 23 243 – 23 243 Embedded derivatives Fair value determined using unobservable inputs. Derivatives held for risk management 692 – 716 1 408 Loans receivable (home loans) The fair value of home loans is based on discounted cash flows using market-related Foreign exchange contracts 76 – 118 194 interest rates. The expected future cash flows and discount rates rely on unobservable inputs to determine fair value. Cross-currency swaps 216 – 598 814 Commodity forwards 188 – – 188 Trade and other receivables Fair value determined using unobservable inputs. Due to the expected short-term Credit default swaps 212 – – 212 maturity of the trade receivables, the carrying value is equal to the fair value. The fair value for long-term receivables is based on discounted cash flows using the Trade and other payables and lease liabilities – 39 594 8 202 47 796 effective interest rate method. The carrying value approximates the fair value as Lease liabilities – – 8 202 8 202 the interest rates are market related and no additional disclosure is required. Trade and other payables – 39 594 – 39 594 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 692 463 232 8 918 472 842 months ended 30 September 2023 nor in the comparative periods presented except for loans receivable (home loans) that transferred from level 2 to level 3 due to a change in fair value methodology at 31 March 2023. 1. Other assets and liabilities include derivatives held for risk management designated as hedges measured at fair value through other comprehensive income and finance leases measured at amortised cost. The total assets measured at amortised cost amounts to R67 182 million and the total liabilities measured at amortised cost amounts to R471 434 million. ESKOM HOLDINGS SOC LTD 14 15 Condensed Group Interim Financial Statements 2023 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2023 15. Accounting classification and fair value continued 16. Material events subsequent to 30 September 2023 15.2 Fair value continued The following significant events occurred after 30 September 2023: Fair value hierarchy The disclosure of the fair value hierarchy of financial instruments has been enhanced in the current period and is as follows: Changes in board and Exco The group chairman Mr PM Makwana resigned from the Eskom board effective from 30 October 2023. Dr M Nyati was appointed as the 30 September 2023 31 March 2023 30 September 2022 chairman of the board effective from 31 October 2023. (unaudited) (audited) (unaudited) Mr D Marokane was appointed as the group chief executive officer effective no later than 31 March 2024. 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 Debt relief Financial assets Eskom received R12 billion on 26 October 2023, R8 billion on 30 October 2023 and R5 billion on 12 December 2023 as part of the Eskom Loans receivable – 178 7 460 – 196 7 503 – 25 – debt relief arrangement from government. Home loans – – 7 460 – – 7 503 – – – The Eskom Debt Relief Amendment Bill, B38 – 2023 was tabled by the Minister of Finance with the 2023 Medium Term Budget Policy Other loans – 178 – – 196 – – 25 – Statement on 1 November 2023. The amendment provides for the payment of interest by Eskom on amounts advanced as a loan and Derivatives held for risk management power to the Minister of Finance to reduce the amounts for the requirements for Eskom in the event of non-compliance with conditions. and embedded derivatives – 26 759 655 – 26 992 823 – 31 673 814 Plant performance Foreign exchange contracts – 405 – – 1 088 – – 4 048 – Koeberg unit 1 returned to service on 18 November 2023 after being taken offline on 10 December 2022 for a planned long duration Cross-currency swaps – 25 800 – – 25 618 – – 27 322 – refuelling outage that included the replacement of the three steam generators. The original three steam generators were successfully Commodity forwards – 259 – – 1 – – 11 – replaced by three new steam generators. Koeberg Unit 2 went off on outage on 11 December 2023 to undergo a similar refuelling and Credit default swaps – – – – 5 – – 5 – maintenance outage to replace the three steam generators. Inflation-linked swaps – 295 – – 280 – – 287 – Embedded derivatives – – 655 – – 823 – – 814 Kusile units 1 and 2 returned to service on 16 October 2023 and 28 November 2023 respectively after completing the repairs to the Insurance investments 1 467 16 492 – 1 514 15 192 – 1 900 16 158 – temporary stack structures. Negotiable certificates of deposit – 14 950 – – 14 126 – – 16 158 – Power purchase agreements Floating rate notes – 1 064 – – 1 066 – – – – There is an ongoing process to obtain approval to enter into power purchase agreements (PPAs) with IPPs, as part of the various bid Inflation-linked bonds – 478 – – – – – – – windows that are being coordinated by Department of Mineral Resources and Energy, that are in various stages of achieving legal, financial Listed shares 1 467 – – 1 514 – – 1 900 – – and commercial finalisation. This includes the Karpowership SA PPAs that was approved by the board on 12 December 2023, subject to Financial liabilities the required approvals, including environmental, being in place. Debt securities and borrowings – 397 929 – – 404 706 – – 409 476 – Eskom bonds – 139 508 – – 148 395 – – 147 881 – 17. Exchange rates Commercial paper – 826 – – 887 – – – – Eurorand zero coupon bonds – 5 749 – – 5 486 – – 4 861 – Unaudited Audited Unaudited Foreign bonds – 61 178 – – 73 408 – – 67 912 – 30 September 31 March 30 September Development financing institutions – 136 230 – – 134 921 – – 145 567 – 2023 2023 2022 Export credit facilities – 30 070 – – 14 396 – – 19 255 – Euro 19.92 19.30 17.55 Other loans – 24 368 – – 27 213 – – 24 000 – United States dollar 18.83 17.72 17.97 Derivatives held for risk management – 1 659 – – 2 029 – – 1 408 – Pound sterling 23.00 21.95 19.96 Japanese yen 0.13 0.13 0.12 Foreign exchange contracts – 890 – – 870 – – 194 – Cross-currency swaps – 711 – – 834 – – 814 – Commodity forwards – – – – 232 – – 188 – Credit default swaps – 56 – – 92 – – 212 – 18. Reportable irregularities Inflation-linked swaps – 2 – – 1 – – – – There have been no significant changes to reportable irregularities as disclosed in the annual financial statements for the year ended 31 March 2023. 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-currency Inflation-linked Total swaps swaps Rm Rm Rm Loss at 31 March 2022 (1 589) (16) (1 605) Amortised to profit or loss 123 1 124 Loss at 30 September 2022 (1 466) (15) (1 481) Day-one loss recognised (154) – (154) Amortised to profit or loss 123 2 125 Loss at 31 March 2023 (1 497) (13) (1 510) Amortised to profit or loss 127 1 128 Loss at 30 September 2023 (1 370) (12) (1 382) ESKOM HOLDINGS SOC LTD 16 17 Condensed Group Interim Financial Statements 2023 Notes to the condensed group interim financial statements continued for the six months ended 30 September 2023 19. New standards and interpretations 19.2 Standards, interpretations and amendments to published standards that are effective and applicable to the group 19.1 Standards, interpretations and amendments to published standards that are not yet effective Topic Summary of requirements Impact The following new standards, interpretations and amendments to existing standards have been published that are applicable for future IFRS 17 Insurance contracts and IFRS 17 introduced one accounting model for all insurance The standard mainly impacted accounting periods that have not been adopted early by the group. These standards and interpretations will be applied in the first year amendments to IFRS 17 contracts in all jurisdictions that apply IFRS. the individual financial statements that they are applicable to the group which is the financial period beginning on or after the effective date. (1 January 2023) of Escap. There is no material IFRS 17 requires an entity to measure insurance contracts using impact on the group as the Topic Summary of requirements Impact updated estimates and assumptions that reflect the timing of insurance activities undertaken Amendments to IAS 7 Statement The amendments introduce additional disclosure requirements for No impact as there are cash flows and take into account any uncertainty relating to by Escap are mainly for the of cash flows and IFRS 7 companies that enter into supplier finance arrangements. currently no supplier insurance contracts. The financial statements of an entity reflect benefit of the group and the key Financial instruments: Disclosures finance arrangements. the time value of money of estimated payments required to account balances affected by the titled Supplier finance The amendment to IAS 7 describes the characteristics of a supplier settle incurred claims. Insurance contracts are measured only on finance arrangement and requires entities to provide qualitative and new standard do not impact the arrangements the obligations created by the contracts. An entity is required results of the group. (1 January 2024) quantitative information about its supplier finance arrangements. to recognise profits as an insurance service is delivered, rather The amendment to IFRS 7 added supplier finance arrangements as than on receipt of premiums. an example within the requirements to disclose information about Disclosure of accounting The amendments aim to help entities provide accounting policy No material impact. The group an entity’s exposure to concentration of liquidity risk. policies – amendments to disclosures that are more useful by replacing the requirement discloses significant accounting IAS 1 and IFRS Practice for entities to disclose their significant accounting policies with a policies for transactions that These amendments have to be applied retrospectively. statement 2 Making materiality requirement to disclose their material accounting policies. have a material impact and will Lease liability in a sale and The amendments to IFRS 16 impact how a seller-lessee accounts for No impact as there are judgements (1 January 2023) continue to consider materiality leaseback – amendment variable lease payments that arise in a sale and leaseback transaction. currently no sale and The practice statement provides guidance and examples on how in its disclosure. to IFRS 16 Leases leaseback transactions. entities apply the concept of materiality in making decisions (1 January 2024) The amendments require the seller-lessee to determine lease about accounting policy disclosures. payments or revised lease payments such that the seller-lessee does Definition of accounting The amendments to IAS 8 introduced a definition of accounting No material impact as the group not recognise a gain or loss that relates to the right of use retained estimate – amendments to estimates. applies the definitions where by the seller-lessee, after the commencement date. IAS 8 Accounting policies, applicable. The amendments clarify the distinction between changes in an These amendments have to be applied retrospectively. changes in accounting estimates and errors (1 January 2023) accounting estimate, changes in accounting policies and the Classification of liabilities as IAS 1 has been amended to clarify the requirements of determining No material impact as there correction of errors. The use of measurement techniques and current or non-current – if a liability is current or non-current. are currently no financial inputs to develop accounting estimates are also clarified. amendments to IAS 1 liabilities with a right to The amendments clarify: Deferred tax related to assets Targeted amendments were made to IAS 12 to clarify how No material impact on the Presentation of financial defer settlement. • what is meant by a right to defer settlement and liabilities arising from a companies should account for deferred tax on cer tain group as the group already statements (1 January 2024) single transaction – transactions eg leases and decommissioning provisions. complies with these • that a right to defer must exist at the end of the reporting period amendments to IAS 12 Income requirements. The group • that classification is unaffected by the likelihood that an entity will taxes (1 January 2023) The amendments narrow the scope of the initial recognition recognises a deferred tax asset exercise its deferral right exemption so that it does not apply to transactions that give rise and a deferred tax liability for • that only if an embedded derivative in a convertible liability is itself to equal and offsetting temporary differences. As a result, a temporary differences arising on an equity instrument would the terms of a liability not impact its deferred tax asset and a deferred tax liability will have to be initial recognition of leases and classification recognised for temporary differences arising on the initial decommissioning provisions. recognition of a lease and a decommissioning provision. These amendments have to be applied retrospectively. The amendments apply retrospectively. Sale or contribution of assets These amendments address the conflict between the guidance on No impact as the group is between an investor and its consolidation and equity accounting when a parent loses control of currently not disposing of associate or joint venture – a subsidiary in a transaction with an associate or joint venture. The any investments in amendments to IFRS 10 and parent recognises the full gain on the loss of control under the associates or joint ventures. IAS 28 (optional adoption, consolidation standard, but under the standard on associates and effective date deferred joint ventures, the parent recognises the gain only to the extent of indefinitely) unrelated investors’ interests in the associate or joint venture. The amendments require the full gain to be recognised when the assets transferred meet the definition of a business under IFRS 3 Business combinations. Lack of exchangeability – IAS 21 has been amended to specify how to assess whether a No impact on the group as amendments to IAS 21 The currency is exchangeable and how to determine the exchange rate all foreign currency effects of changes in foreign when it is not. transactions are exchange rates (1 January 2025) exchangeable. The amendments clarify: • 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 These amendments have to be applied prospectively. ESKOM HOLDINGS SOC LTD 18 19 Condensed Group Interim Financial Statements 2023 Contact details Telephone numbers Websites and email addresses Eskom head office +27 11 800 8111 Eskom website www.eskom.co.za Contact@eskom.co.za Eskom Media Desk +27 11 800 3343 Eskom Media Desk MediaDesk@eskom.co.za +27 11 800 3378 +27 11 800 6103 Investor Relations +27 11 800 2775 Investor Relations InvestorRelations@eskom.co.za Eskom whistle-blowing hotline 0800 112 722 Forensic investigations Investigate@eskom.co.za DPE whistle-blowing hotline 0800 111 628 DPE whistle-blowing website www.thehotlineapp.co.za DPE@thehotline.co.za Eskom Development Foundation +27 11 800 8111 Eskom Development www.eskom.co.za/csi Foundation CSI@eskom.co.za National call centre 08600 ESKOM or Promotion of Access to PAIA@eskom.co.za 08600 37566 Information Act requests Customer SMS line 35328 Customer Service CustomerServices@eskom.co.za Facebook EskomSouthAfrica YouTube EskomOfficialSite Twitter Eskom_SA MyEskom Customer app Physical address Postal address Eskom Megawatt Park PO Box 1091 2 Maxwell Drive Johannesburg Sunninghill 2000 Sandton 2157 Group Company Secretary Company registration number Office of the Company Secretary Eskom Holdings SOC Ltd PO Box 1091 2002/015527/30 Johannesburg 2000 ESKOM HOLDINGS SOC LTD 20 21 Condensed Group Interim Financial Statements 2023