Exxaro Resources Limited · JSE:EXX
Exxaro Resources — H1 2026 Earnings Presentation
41 slides from Exxaro Resources's earnings presentation, Aug 20, 2026
Slide 1: Interim financial results
Interim financial results Presentation for the six-month period ended 30 June 2026 20 August 2026
Slide 2: Disclaimer
Disclaimer A range of financial and non-financial measures are used to assess our performance, including certain Alternative Performance Measures (APMs) that are not defined nor specified in International Financial Reporting Standards (IFRS® Accounting Standards) as issued by the International Accou
Slide 3: Agenda
Agenda Group highlights Operational performance Financial performance Conclusion
Slide 4: Today's speakers
Today’s speakers Ben Magara Riaan Koppeschaar Chief Executive Officer Finance Director 4
Slide 5: Group highlights
Group highlights Ben Magara | Chief Executive Officer
Slide 6: Safety | Record safety performance
Safety | Record safety performance Group LTIFR* improvement Four consecutive years without a work-related fatality** (60%) (33%) Group LTIFR improved 60% to 0.02, the lowest 0.1 on record 0.05 0.1 0.0 0.0 0.03 Matla, Belfast, Mafube, Leeuwpan, Cennergi 0.02 operations and Tshipi ended the half with
Slide 7: Key messages | A strong 1H26 performance vs 1H25
Key messages | A strong 1H26 performance vs 1H25 STRATEGY LSP* reached commercial operation in April Manganese acquisition completed and contributing EXECUTION 2026 and is delivering green energy production and earnings since March 2026 Coal Coal Coal export Renewable energy Manganese production sal
Slide 8: Market dynamics: tough macro-economics due to geopolitical uncertainty
Tough macro-economics due to geopolitical uncertainty Market dynamics Rand strengthened 11% Diesel prices Geopolitical API4 coal prices improved 15% YoY to year-on-year (YoY), up 21% tensions driving US$105.78/tonne supported by weaker US renewed Iron ore prices improved 6% YoY to US$106.38/tonne do
Slide 9: Operational performance
Operational performance | ae DCs Fiaivensary exxaro POWERING POSSIBILITY
Slide 10: Coal | Total production up 11% due to operational efficiency
Coal | Total production up 11% due to operational efficiency Total production Grootegeluk Belfast Million tonnes Million tonnes Million tonnes 11% 11% (11%) 5% 2% 6% 19.4 20.5 21.5 15.0 12.3 13.3 13.6 2.0 4.0 1.8 3.7 14.0 2.9 13.0 12.0 1.1 1.4 1.5 1.6 4.2 3.5 3.9 11.0 10.0 9.0 1.4 1.2 8.0 7.0 1.0 1.
Slide 11: Coal | Portfolio optimisation driving strong total sales performance
Coal | Portfolio optimisation driving strong total sales performance Total coal sales up 4% Sales per business unit Eskom sales up 6%, driven by Matla performance Million tonnes 1H25 2H25 1H26 Variance* Total coal sales 19.1 20.5 19.9 4% Other domestic thermal sales down, to enhance higher margin ex
Slide 12: Coal | Strong export performance, despite constrained Waterberg line
Coal | Strong export performance, despite constrained Waterberg line RBCT* coal exports Exxaro coal exports Million tonnes Million tonnes 4% 15% (1%) 5% 29.5 29.2 3.7 3.9 28.2 3.4 4.0 0.8 30.0 0.7 3.5 25.0 3.0 0.7 2.5 20.0 2.0 15.0 10.0 1.5 2.7 3.0 3.1 1.0 5.0 0.5 0.0 0.0 1H25 2H25 1H26 1H25 2H25 1H
Slide 13: Coal | Export sales performance sustained by agile market segmentation
Coal | Export sales performance sustained by agile market segmentation Exxaro export sales destinations % India and Japan remain natural markets for our portfolio 7 6 6 Europe 18 Other Asia, led by Taiwan, contributing significantly to export performance India 29 27 Stronger export performance to Ja
Slide 14: Cennergi | LSP fully operational, enhancing green energy generation
Cennergi | LSP fully operational, enhancing green energy generation Unit 1H25 2H25 1H26 Variance* LSP contributing to higher green energy generation Energy generation GWh 337 366 378 12% Strong plant availability across the portfolio Lower contribution from wind assets due to reduced wind speed Avai
Slide 15: Manganese | Tshipi delivers improved safety, production and pricing
Manganese | Tshipi* delivers improved safety, production and pricing Tshipi manganese production (100% basis) Million tonnes 11% 9% Strong safety performance, LTIFR** improved 52% to 0.12 1.90 1.64 1.67 1.82 Manganese production improved 11% to 1.82Mt 1.70 0.11 0.29 1.50 0.29 Sales declined 5% to 1.
Slide 16: Financial performance
Financial performance Riaan Koppeschaar | Finance Director
Slide 17: Group | Solid operating performance underpins strong cash generation
Group | Solid operating performance underpins strong cash generation Revenue EBITDA Adjusted* equity income R billion R billion R billion 7% 0% (39%) 4% 22% (39%) 2.5 23 6 21 21.2 22.1 5 5.6 5.6 2 2.3 2.3 20.6 19 17 15 4 4.6 1.5 3 13 11 2 1 1.4 9 0.5 1 7 0 5 0 1H25 2H25 1H26 1H25 2H25 1H26 1H25 2H25
Slide 18: Group | Strong Coal and Energy EBITDA contribution despite cost pressures
Group | Strong Coal and Energy EBITDA contribution despite cost pressures Group EBITDA R million 337 (691) 1 459 (396) (552) 104 5 838 (252) 5 577 5 586 1H25 Price Volume Inflation Other cost Forex General* 1H26 excl. Manganese** 1H26 Manganese API4 coal index Coal export Diesel – mine specific Sell
Slide 19: Coal | Focused cost optimisation protecting margins
Coal | Focused cost optimisation protecting margins Revenue and EBITDA per segment R million Revenue EBITDA EBITDA performance improvement of 5% 1H25 2H25 1H26 1H25 2H25 1H26 • Commercial Waterberg 11 753 11 950 13 105 5 364 4 950 5 793 Production growth supporting fixed cost absorption • Commercial
Slide 20: Metals | Manganese acquisition strengthens diversification
Metals | Manganese acquisition strengthens diversification Financial performance* R million 1H25 1H26 Variance Revenue** 145 EBITDA** (252) Income from investments** 26 Adjusted equity-accounted income 2 232 1 405 (37) • SIOC 1 943 1 162 (40) • Black Mountain 289 1 (100) • Tshipi** 242 Dividend rece
Slide 21: Group | Capital allocation – Strong financial position preserved
Group | Capital allocation – Strong financial position preserved Net (debt)/cash Capital allocation framework R million 6 873 (128) (1 422) (3 417) 1 283 (10 570) 10 714 Excess cash Debt service Special dividend Interest Share buyback Capital R12bn to R15bn cash (2 466) 5 buffer removed (864) (414)
Slide 22: Group | Capital expenditure aligned to strategic priorities
Group | Capital expenditure aligned to strategic priorities Sustaining capital Expansion capital R million R million 1 690 1 114 864 1 557 1 423 1 422 818 Karreebosch 704 872 LSP 296 133 160 1H25 2H25 1H26 1H25 2H25 1H26 Total 872 1 423 1 422 Energy 1 114 1 690 864 • LSP 296 133 160 • Coal 866 1 400
Slide 23: Group | 47th consecutive dividend reflecting new enhanced policy
Group | 47th consecutive dividend reflecting new enhanced policy Dividend declared New dividend policy impact Rand per share Interim Final Total Interim Interim Final Interim 1H25 2H25 FY25 1H26 1H25 2H25 1H26 Cover: Previous policy 2.5 2.5 2.5 Dividend cover: 2.5 1.8 1.8 1.8 Adjusted group earnings
Slide 24: Conclusion
Conclusion Ben Magara | Chief Executive Officer
Slide 25: Group | Full year coal guidance reiterated and manganese included
Group | Full year coal guidance reiterated and manganese included MANGANESE COAL PRODUCTION COAL EXPORT COAL SUSTAINING RENEWABLE ENERGY PRODUCTION AND AND SALES SALES CAPITAL EXPENDITURE GENERATION SALES* (Mt) (Mt) (ZAR billion) (GWh) (Mt) 39.4 to 42.8 7.3 to 8.0 4.0 to 4.5 800 to 830 3.2 to 3.4 *
Slide 26: Sustainability | Continuing our impact beyond the surface
Group sustainability | Continuing our impact beyond the surface Sustainability ~R10bn total stakeholder R1.4bn in social impact spend value created towards education, enterprise and supplier development, agriculture, health and local and preferential procurement Employees Level 2 B-BBEE Salaries, wa
Slide 27: Group | Delivering through a defensive and diversified portfolio
Group | Delivering through a defensive and diversified portfolio Best safety Strong Accelerating Strong balance Diversified and Positive social performance on operational disciplined sheet and defensive impact and record delivery strategy disciplined earnings base environmental execution capital sup
Slide 28: Growing energy and future-facing metals to account for >50% of group financial contribution by 2030
Group | Growing energy and future-facing metals to account for >50% of group financial contribution by 2030, reducing group’s carbon intensity 1H26 group financial contribution* 2030 group financial contribution SIOC and SIOC and Manganese** Black c.3% Black Mountain Mountain c.15% c.20% Coal# Energ
Slide 29: Exxaro anchored by three distinct business pillars
Group | Exxaro anchored by three distinct business pillars for long- term value creation and sustainability through the cycle Coal Renewable energy Future-facing metals Long-life, high-quality, well capitalised, A growing, cash generative, stable and Long-life, high-quality, cash generative, cash ge
Slide 30: Thank you
Thank you QQ rinivensary exxaro
Slide 31: Annexure
Annexure Additional information
Slide 32: Powering possibility in Africa and Beyond
…Powering possibility in Africa and Beyond South Africa Global presence 12 1 20 Limpopo 2 Switzerland 3 4 Gauteng 5 North-West Province Mpumalanga 16 10 8 9 18 KwaZulu-Natal 19 Free State 11 7 Singapore Northern Cape 6 Australia 15 Eastern Cape 17 14 713 Western Cape 1 Grootegeluk complex 7 Richards
Slide 33: Targeted group financial contribution by 2030 for Energy and Metals
Building a diversified portfolio for long term value creation and sustainability Our key metrics to anchor the way we operate Coal Metals Energy Mining ROCE > 20% 15% equity IRR on portfolio EBITDA margin > 25% Targeted group financial <50% contribution by 2030 >50% Targeted group financial contribu
Slide 34: Coal | Sensitivities – 1H26
Coal | Sensitivities – 1H26 R million Sensitivity EBITDA impact Environmental rehabilitation discount rate decrease 1% (372) Environmental rehabilitation discount rate increase 1% 332 Royalty cost 1% 195 Domestic sales volumes 1% 146 Production cost 1% 93 Export price per tonne US$1 64 Export sales
Slide 35: Group | Financial overview – IFRS results
Group | Financial overview – IFRS results % change % change R million 1H25 1H25 vs 2H25 2H25 2H25 vs 1H26 1H26 Revenue 20 579 3 21 192 4 22 128 Operating expenses (16 447) (11) (18 177) (18 097) Net operating profit 4 132 (27) 3 015 34 4 031 Net operating profit margin (%) 20 (6) 14 4 18 Post-tax eq
Slide 36: Group | Headline earnings adjustments
Group | Headline earnings adjustments R million 1H25 2H25 1H26 Coal (16) (227) (12) • Loss on disposal of property, plant and equipment (16) (227) (12) Other 32 • Gain on disposal of FerroAlloys 32 Non-core adjustment impact on net operating profit (16) (195) (12) Loss on dilution of investment in R
Slide 37: Group | Financial overview – Adjusted results
Group | Financial overview – Adjusted* results % change % change R million 1H25 1H25 vs 2H25 2H25 2H25 vs 1H26 1H26 Net operating profit 4 148 (23) 3 210 26 4 043 Income from investments 26 Net financing income – Exxaro excluding Energy 538 (10) 482 (63) 178 Net financing cost – Energy (205) 2 (200)
Slide 38: Coal | Total cash cost per tonne
Coal | Total cash cost per tonne Production cost Production volume R million 1H25 2H25 1H26 ‘000 tonnes 1H25 2H25 1H26 Revenue 19 813 20 296 21 333 Total coal production 19 365 20 525 21 453 Less: EBITDA (5 552) (4 699) (5 804) Less: Matla production (2 931) (3 655) (3 968) Cost of sales – Cash cost
Slide 39: Capital funding structure | Exxaro excluding Energy
Capital funding structure | Exxaro excluding Energy R million Facilities available Undrawn/ Drawn Uncommitted committed Term loan and revolving facility 4 300 5 500 3 000** DMTN* programme 5 000# Interest-bearing borrowings 4 300 Interest capitalised 63 Lease liabilities 665 Capitalised transaction
Slide 40: Capital funding structure | Energy
Capital funding structure | Energy R million Facilities available Undrawn/ Drawn committed Project financing 8 346 1 397 Interest-bearing borrowings 8 346 Interest capitalised 29 Lease liabilities 92 Capitalised transaction costs (43) Maturity profile of debt Total interest-bearing debt 8 424 Repaym
Slide 41: Group | Key performance indicators
Group | Key performance indicators Target 1H25 2H25 1H26 Internal key performance indicators • EBITDA interest cover* # (times) >4 • Net debt/(cash): equity* (%) <40 (27) (26) (9) • Net debt: EBITDA* ## (times) <1.5 • Return on total capital employed* (%) >20 26 25 21 • Return on total capital emplo