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Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting
Contents
SUMMARISED GROUP ANNUAL FINANCIAL STATEMENTS
- Audited group statement of comprehensive income
- Audited group statement of financial position
- Audited group statement of changes in equity
- Audited group statement of cash flows
- Notes to the summarised group annual financial statements
ANNUAL GENERAL MEETING NOTICE AND PROXY
- Brief curricula vitae of directors standing for election or re-election
- Annual general meeting notice
- Form of proxy
- Notes to the form of proxy
66 CORPORATE INFORMATION
- SHAREHOLDERS' DIARY
- ANNEXURE: GLOSSARY
This publication only includes statutory information. All other reports are available on the website at www.exxaro.com.
The following reports, which should be read with this report, as well as the audited group and company annual financial statements for the year ended 31 December 2023, will be available on our website on 23 April 2024
Integrated report Supplementary report
Mineral Resources and Mineral Reserves statement Tax report
CONTACT
Ongoing feedback from stakeholders helps us contextualise certain issues needed for more informed understanding by readers. We welcome your suggestions, which should be directed to:
Malusi Buthelezi
Manager: Integrated Reporting and ESG
Tel: +27 12 307 3174
Mobile: +27 83 460 3723
Email: malusi.buthelezi@exxaro.com
Highlights
GROUP FINANCIAL PERFORMANCE
R38.7 billion | R10.10 per share |
Revenue, down 17% | Final dividend |
R13.4 billion | R5.72 per share |
EBITDA, down 29% | Special dividend |
R46.66 per share | R46.81 per share |
Attributable earnings, down 18% | Headline earnings, down 22% |
SUSTAINABLE OPERATIONS
LTIFR of 0.07
OPERATIONAL PERFORMANCESIOC
42.5 Mt | R6.2 billion |
Coal product volumes | Adjusted1 equity-accounted income |
40.5 Mt | R2.1 billion |
Coal sales volumes | Exxaro's share of final dividend declared |
727 GWh
Renewable energy generation
1 Adjusted for headline earnings adjustments.
VALUE DISTRIBUTION (Rm)
90 | 99 | 181 | 121 | |||||||||||||
1 855 | 2 275 | 4 310 | ||||||||||||||
4 707 | ||||||||||||||||
2023 | 2022 | |||||||||||||||
5 | 505 | 1 607 | ||||||||||||||
1 652 | 6 686 | |||||||||||||||
1 100 | 5 039 | 982 | 7 250 | |||||||||||||
● Salaries, wages and benefits | ● Cash dividend paid | |||||||||||||||
● Employees' tax | ● Dividend paid to NCI | |||||||||||||||
● Payments to government: taxation contribution | ● Community investments and volunteerism | |||||||||||||||
● Cost of financing | ● GreenShare employee scheme | |||||||||||||||
Summarised group annual financial statements for the year ended 31 December 2023 | 1 |
and notice of the annual general meeting |
Condensed group statement of comprehensive income
For the year ended 31 December
2023 | 2022 | |||
Reviewed | Audited | |||
Rm | Rm | |||
Revenue (note 7) | 38 698 | 46 369 | ||
Operating expenses (note 8) | (28 071) | (30 148) | ||
Operating profit | 10 627 | 16 221 | ||
Loss on disposal of subsidiary | (1) | |||
Net operating profit | 10 627 | 16 220 | ||
Finance income (note 10) | 1 570 | 694 | ||
Finance costs (note 10) | (1 252) | (1 052) | ||
Income from financial assets | 2 | 6 | ||
Share of income of equity-accounted investments (note 11) | 6 987 | 6 477 | ||
Impairment charges of equity-accounted investments | (53) | |||
Profit before tax | 17 934 | 22 292 | ||
Income tax expense | (3 231) | (4 287) | ||
Profit for the year | 14 703 | 18 005 | ||
Other comprehensive income/(loss), net of tax | 200 | 384 | ||
Items that will not be reclassified to profit or loss: | (29) | 14 | ||
- Remeasurement of retirement employee obligations | 3 | |||
- Changes in fair value of equity investments at FVOCI | (31) | 10 | ||
- Share of OCI of equity-accounted investments | 2 | 1 | ||
Items that may subsequently be reclassified to profit or loss: | 244 | 300 | ||
- Unrealised exchange differences on translation of foreign operations | 88 | 34 | ||
- Changes in fair value on cash flow hedges | (44) | 113 | ||
- Changes in fair value on costs of hedging | (9) | |||
- Share of OCI of equity-accounted investments | 209 | 153 | ||
Items that have subsequently been reclassified to profit or loss: | (15) | 70 | ||
- Recycling of changes in fair value on cash flow hedges | (15) | 70 | ||
Total comprehensive income for the year | 14 903 | 18 389 | ||
Profit attributable to: | ||||
Owners of the parent | 11 292 | 13 826 | ||
Non-controlling interests | 3 411 | 4 179 | ||
Profit for the year | 14 703 | 18 005 | ||
Total comprehensive income attributable to: | ||||
Owners of the parent | 11 448 | 14 113 | ||
Non-controlling interests | 3 455 | 4 276 | ||
Total comprehensive income for the year | 14 903 | 18 389 |
cents | cents | |
Attributable earnings per share | ||
- Basic | 4 666 | 5 713 |
- Diluted | 4 666 | 5 713 |
2 Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting
Condensed group statement of financial position
At 31 December
2023 | 2022 | ||||
Reviewed | Audited | ||||
Rm | Rm | ||||
ASSETS | |||||
Non-current assets | 66 153 | 63 357 | |||
Property, plant and equipment | 37 226 | 37 446 | |||
Intangible assets | 2 790 | 2 760 | |||
Right-of-use assets | 308 | 352 | |||
Inventories | 176 | ||||
Equity-accounted investments (note 13) | 20 278 | 18 060 | |||
Financial assets (note 20) | 4 616 | 3 539 | |||
Deferred tax | 206 | 254 | |||
Other assets (note 14) | 729 | 770 | |||
Current assets | 26 701 | 21 788 | |||
Inventories | 2 270 | 1 728 | |||
Financial assets (note 20) | 210 | 376 | |||
Trade and other receivables (note 20) | 3 877 | 4 199 | |||
Cash and cash equivalents (note 20) | 19 859 | 14 812 | |||
Current tax receivables | 3 | 101 | |||
Other assets (note 14) | 482 | 572 | |||
Total assets | 92 854 | 85 145 | |||
EQUITY AND LIABILITIES | |||||
Capital and other components of equity | |||||
Share capital | 983 | 983 | |||
Other components of equity | 1 341 | 1 700 | |||
Retained earnings | 49 923 | 44 136 | |||
Equity attributable to owners of the parent | 52 247 | 46 819 | |||
Non-controlling interests | 14 160 | 12 560 | |||
Total equity | 66 407 | 59 379 | |||
Non-current liabilities | 20 226 | 20 574 | |||
Interest-bearing borrowings (note 15; 20) | 7 480 | 8 378 | |||
Lease liabilities (note 16) | 400 | 438 | |||
Other payables (note 20) | 42 | 25 | |||
Provisions (note 18) | 2 963 | 2 762 | |||
Retirement employee obligations | 176 | 165 | |||
Financial liabilities (note 20) | 127 | 112 | |||
Deferred tax | 9 003 | 8 668 | |||
Other liabilities (note 19) | 35 | 26 | |||
Current liabilities | 6 221 | 5 192 | |||
Interest-bearing borrowings (note 15; 20) | 1 443 | 715 | |||
Lease liabilities (note 16) | 51 | 40 | |||
Trade and other payables (note 20) | 3 356 | 3 340 | |||
Provisions (note 18) | 222 | 179 | |||
Financial liabilities (note 20) | 14 | 5 | |||
Current tax payables | 348 | 143 | |||
Other liabilities (note 19) | 787 | 770 | |||
Total liabilities | 26 447 | 25 766 | |||
Total equity and liabilities | 92 854 | 85 145 | |||
Summarised group annual financial statements for the year | ended 31 December | 2023 | 3 | ||
and notice of the annual general meeting |
Condensed group statement of changes in equity
Other components of equity | ||||||
Share | Foreign | Cash flow | Cost of | Equity- | ||
currency | ||||||
capital | translation | hedges1 | hedging | settled | ||
Rm | Rm | Rm | Rm | Rm | ||
At 31 December 2021 (Audited) | 983 | 987 | (117) | 596 | ||
Total comprehensive income | 139 | 136 | 1 | |||
- Profit for the year | ||||||
- Other comprehensive income for the year | 139 | 136 | 1 | |||
Transactions with owners | (147) | |||||
Contributions and distributions | (147) | |||||
- Dividends paid (note 5) | ||||||
- Distributions to NCI share option holders | ||||||
- Share-based payments movement | (147) | |||||
Changes in ownership interest | ||||||
- Recognition of NCI | ||||||
At 31 December 2022 (Audited)
Total comprehensive income/(loss)
- Profit for the year
-
Other comprehensive income/(loss) for the year Transfer to property, plant and equipment (net of tax)2 Transactions with owners
Contributions and distributions - Dividends paid (note 5)
- Share-basedpayments movement3
983 | 1 126 | 19 | 450 |
232 | (47) | (7) | |
232 | (47) | (7) |
1
(516)
(516)
(516)
At 31 December 2023 (Reviewed) | 983 | 1 358 | (27) | (7) | (66) |
- Previously named Financial instruments revaluation.
- Hedging gains and losses and costs of hedging transferred to the cost of property, plant and equipment during the year.
-
Relates to the net amount of the share-based payment expense of R212 million as well as the deferred tax movement of
R83 million and the value of shares acquired in the market to settle vested share-based payment transactions of R645 million.
Foreign currency translation
Arises from the translation of financial statements of foreign operations within the group as well as the share of equity-accounted investments' foreign currency translation reserves.
Cash flow hedges
Comprises the group's cash flow hedge reserves relating to interest rate swaps and the spot rate component of FECs as well as the share of equity-accounted investments' hedging reserves.
Cost of hedging
Comprises the group's cost of hedging reserves which reflects gains or losses on the portion excluded from the designated hedging instrument that relates to the forward element of FECs. It is initially recognised in OCI and accounted for similarly to gains or losses in the hedge reserve.
Equity-settled
Represents the fair value, net of tax, of services received from employees and settled by equity instruments granted.
Retirement employee obligations
Comprises remeasurements, net of tax, on the retirement employee obligations as well as the share of equity-accounted investments' retirement employee obligations reserves.
Financial asset FVOCI revaluation
Comprises the fair value adjustments, net of tax, on the financial assets classified at FVOCI as well as the share of equity-accounted investments' financial asset FVOCI revaluation reserves.
4 Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting
Retirement | Financial | Attributable | ||||
asset | to owners | Non- | ||||
employee | FVOCI | Retained | of the | controlling | Total | |
obligations | revaluation | Other | earnings | parent | interests | equity |
Rm | Rm | Rm | Rm | Rm | Rm | Rm |
35 | 55 | 4 | 37 007 |
3 | 8 | 13 826 | |
13 826 | |||
3 | 8 |
(6 697) (6 686) (6 686)
(11)
(11)
39 550 | 10 548 | ||
14 113 | 4 276 | ||
13 826 | 4 179 | ||
287 | 97 | ||
(6 844) | (2 264) | ||
(6 833) | (2 275) | ||
(6 686) | (2 274) | ||
(1) | |||
(147) |
- 11
- 11
- 098
- 389
-
005
384 (9 108) (9 108) (8 960)
(1)
(147)
38 | 63 | 4 | 44 136 |
2 | (24) | 11 292 | |
11 292 | |||
2 | (24) | ||
(5 505) |
(5 505) (5 505)
46 819 | 12 560 |
11 448 | 3 455 |
11 292 | 3 411 |
- 44
(6 021) | (1 855) | ||
(6 021) | (1 855) | ||
(5 505) | (1 855) | ||
(516) | |||
- 379
- 903
-
703
200
1 (7 876) (7 876) (7 360)
(516)
40 | 39 | 4 | 49 923 | 52 247 | 14 160 | 66 407 |
Summarised group annual financial statements for the year ended 31 December 2023 | 5 |
and notice of the annual general meeting |
Condensed group statement of cash flows
For the year ended 31 December
2023 | 2022 | |
Reviewed | Audited | |
Rm | Rm | |
Cash flows from operating activities | 11 129 | 14 410 |
Cash generated by operations (note 9) | 13 307 | 18 863 |
Interest paid | (1 100) | (982) |
Interest received | 1 525 | 650 |
Tax paid | (2 603) | (4 121) |
Cash flows from investing activities | 2 045 | 3 990 |
Property, plant and equipment acquired (note 12) | (2 699) | (1 652) |
Proceeds from disposal of property, plant and equipment | 5 | 4 |
Cash received from other financial assets at amortised cost | 196 | 90 |
ESD loans granted | (171) | (112) |
ESD loans settled | 108 | 50 |
Settlement of deferred consideration | 56 | 94 |
Portfolio investments acquired | (400) | |
Deposit facilities acquired | (360) | |
Lease receivables settled | 16 | 15 |
Increase in environmental rehabilitation funds | (19) | (8) |
Dividends received from equity-accounted investments | 4 911 | 5 903 |
Dividends received from financial assets | 2 | 6 |
Cash flows from financing activities | (8 228) | (10 617) |
Interest-bearing borrowings raised (note 15;17) | 489 | |
Interest-bearing borrowings repaid (note 15;17) | (658) | (1 181) |
Transaction costs paid on interest-bearing borrowings raised | (13) | |
Lease liabilities paid (note 16) | (41) | (34) |
Dividends paid to owners of the parent (note 5) | (5 505) | (6 686) |
Dividends paid to NCI BEE Parties | (1 831) | (2 237) |
Dividends paid to NCI of Tsitsikamma SPV | (24) | (37) |
Distributions to NCI share option holders | (1) | |
Shares acquired in the market to settle share-based payments | (645) | (441) |
Net increase in cash and cash equivalents | 4 946 | 7 783 |
Cash and cash equivalents at beginning of the year | 14 812 | 7 041 |
Translation difference on movement in cash and cash equivalents | 101 | (12) |
Cash and cash equivalents at end of the year | 19 859 | 14 812 |
6 Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting
Notes to the reviewed condensed group financial statements
-
CORPORATE BACKGROUND
Exxaro, a public company incorporated in South Africa, is a diversified resources group with interests in the coal (controlled and non-controlled), energy (controlled) and ferrous (controlled and non-controlled) markets. These reviewed condensed group financial statements as at and for the year ended
31 December 2023 (condensed financial statements) comprise the company and its subsidiaries (together referred to as the group) and the group's interest in associates and joint ventures. - BASIS OF PREPARATION
-
Statement of compliance
The condensed financial statements have been prepared in accordance with and contain the information required by the JSE Listings Requirements for condensed financial statements and the requirements of the Companies Act of South Africa. The JSE Listings Requirements require condensed financial statements to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS® Accounting Standards) (as issued by the International Accounting Standards Board (IASB®)), IAS 34 Interim Financial Reporting, Financial Pronouncements (as issued by the Financial Reporting Standards Council), and the SAICA Financial Reporting Guides (as issued by the Accounting Practices Committee).
The condensed financial statements have been prepared under the supervision of Mr PA Koppeschaar CA(SA), SAICA registration number: 00038621.
The condensed financial statements should be read in conjunction with the group annual financial statements as at and for the year ended 31 December 2022, which have been prepared in accordance with IFRS Accounting Standards. The condensed financial statements have been prepared on the historical cost basis, except for financial instruments, share-based payments and biological assets, which are measured at fair value.
The condensed financial statements of the Exxaro group were authorised for issue by the board of directors on 12 March 2024. - Judgements and estimates
Management made judgements and applied estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements and the key source of estimation uncertainty were similar to those applied to the group annual financial statements as at and for the year ended
31 December 2022.
3. ACCOUNTING POLICIES AND OTHER COMPLIANCE MATTERS
The accounting policies applied are in terms of IFRS Accounting Standards and are consistent with those of the previous financial year. A number of new or amended IFRS Accounting Standards became effective for the current year. The group did not have to make any significant changes to its accounting policies nor make retrospective adjustments as a result of adopting these standards.
3.1 Impact of new, amended or revised standards issued but not yet effective
New IFRS Accounting Standards, amendments to accounting standards and interpretations issued, that are relevant to the group, but not yet effective on 31 December 2023, have not been early adopted, except for the amendment to IAS 1 Presentation of Financial Statements relating to classification of liabilities as current or non-current as well as non-current liabilities with covenants. The early adoption of these amendments did not have any impact on the group. The group continuously evaluates the impact of these standards and amendments.
Summarised group annual financial statements for the year ended 31 December 2023 | 7 |
and notice of the annual general meeting |
Notes to the reviewed condensed group financial statements
continued
4. | RECONCILIATION OF GROUP HEADLINE EARNINGS | |||||
Gross | Tax | NCI | Net | |||
Rm | Rm | Rm | Rm | |||
For the year ended 31 December 2023 (Reviewed) | ||||||
Profit attributable to owners of the parent | 11 292 | |||||
Adjusted for: | 61 | (15) | (11) | 35 | ||
- IAS 16 Net losses on disposal of property, plant and | ||||||
equipment | 57 | (15) | (10) | 32 | ||
- IAS 28 Share of equity-accounted investments' separately | ||||||
identifiable remeasurements | 4 | (1) | 3 | |||
Headline earnings | 11 327 | |||||
For the year ended 31 December 2022 (Audited) | ||||||
Profit attributable to owners of the parent | 13 826 | |||||
Adjusted for: | 1 285 | (333) | (220) | 732 | ||
- IFRS 10 Loss on disposal of subsidiary | 1 | 1 | ||||
- IAS 16 Net losses on disposal of property, plant and | ||||||
equipment | 97 | (27) | (17) | 53 | ||
- IAS 28 Loss on dilution of investment in associate | 2 | 2 | ||||
- IAS 28 Share of equity-accounted investments' separately | 1 132 | (306) | (191) | 635 | ||
identifiable remeasurements1 | ||||||
- IAS 36 Impairment charges of non-current assets2 | 53 | (12) | 41 | |||
Headline earnings | 14 558 |
- Includes Exxaro's share of SIOC's impairment charge recognised on mining assets, amounting to R626 million (net of tax and NCI). The impairment charge on mining assets was due to the production volumes being revised down in line with anticipated logistics performance.
- On 31 December 2022, the investment in LightApp was impaired to nil.
2023 | 2022 | |
Reviewed | Audited | |
cents | cents | |
Headline earnings per share | ||
- Basic | 4 681 | 6 016 |
- Diluted | 4 681 | 6 016 |
Refer note 5 for details regarding the number of shares.
8 Summarised group annual financial statements for the year ended 31 December 2023 and notice of the annual general meeting
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Exxaro Resources Ltd. published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 12:36:05 UTC.