Financial overview 2026 INTEGRATED REPORT Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Our value creation journey LEVERAGING GOVERNANCE FINANCIAL OUR REPORTING SUITE AND APPROACH 2 4 FOR TRANSFORMATION 6 OVERVIEW Governing and leading ethically 43 Condensed annual financial statements Strengthening our leadership 46 and commentary 87 TRANSFORMING ENERGY 1 TO CREATE VALUE Driving value creation through good Enhancing financial sustainability 91 governance 51 Who we are and what we do 4 Ensuring fair remuneration 55 Reinforcing controls and assurance 58 SUPPLEMENTARY How we deliver value 10 Upholding good governance 62 7 INFORMATION THOUGHTS FROM OUR Abbreviations 97 2 LEADERSHIP PERFORMANCE Glossary of terms 99 5 OVERVIEW Sustainability indicators subject to reasonable Chairman’s message 13 assurance 101 Chief Executive’s review 15 Growing our people 65 Independent sustainability assurance report by Deloitte & Touche 105 Chief Financial Officer’s commentary 18 Strengthening our infrastructure 70 Corporate information 107 Interacting with the environment 75 Sustaining communities 82 REPOSITIONING ESKOM IN A 3 TRANSFORMING INDUSTRY Reflecting on our operating context 21 Evolving our strategy 27 PERFORMANCE INDICATORS Throughout this integrated report, performance against target is indicated as follows: Mitigating risk and maintaining resilience 31 Connecting with stakeholders 36 Met or exceeded target Identifying key topics 40 Almost met target (within a 5% threshold) Did not meet target SC ii The key performance indicator is included in our ESKOM annual compact withSOC HOLDINGS the shareholder LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Welcome to Eskom’s FY2026 reporting suite REPORTING PERIOD FIVE REPORTS, ONE STORY 1 April 2025 to 31 March 2026 AVAILABLE AT We present a cohesive view of our performance, prospects and stewardship www.eskom.co.za/investors/integrated-results ONE STORY THROUGH FIVE DIFFERENT LENSES Each report focuses on a distinct dimension of our performance. Together, these five reports give a balanced, credible account of Eskom’s performance across strategic, financial, operational, governance and sustainability dimensions INTEGRATED ANNUAL FINANCIAL SUSTAINABILITY GOVERNANCE AND PERFORMANCE REPORT STATEMENTS REPORT REMUNERATION REPORT [NEW] REPORT [NEW] Our strategy and value creation story Our audited financial position, performance Our environmental, social and governance How we are governed and how we reward A detailed view of operational and and outlook and cash flows (ESG) impacts our people financial performance WHO IT’S FOR: The people of South WHO IT’S FOR: Shareholder, investors, WHO IT’S FOR: Stakeholders with a WHO IT’S FOR: Shareholder, providers of WHO IT’S FOR: Shareholder, analysts, Africa, providers of financial capital and our creditors, regulators, analysts, employees specific interest in our ESG performance financial capital, regulators and employees regulators and operationally focused broader stakeholder base and the public stakeholders GUIDED BY: Global Reporting Initiative, GUIDED BY: Companies Act, King IV and GUIDED BY: Integrated Reporting GUIDED BY: IFRS Accounting Standards, United Nations Sustainable Development PFMA, with pay-gap disclosures aligned GUIDED BY: PFMA and National Treasury Framework, Companies Act, PFMA, King IV; the Companies Act and PFMA Goals (SDGs), IFRS S2 and Eskom’s internal to the Companies Amendment Act’s regulations, the shareholder compact and with ISSB standards IFRS S1 and S2 under ESG framework requirements internal KPI measurement specifications assessment MATERIALITY LENS: Financial materiality: information that could influence MATERIALITY LENS: Impact materiality: MATERIALITY LENS: Matters material to MATERIALITY LENS: Operational and MATERIALITY LENS: Double materiality: users’ decisions our most significant effects on the economy, leadership effectiveness, ethical conduct, fair financial materiality - matters significant to financial and impact environment and people remuneration and long-term value creation delivering on our mandate ASSURANCE: Audited by Deloitte & ASSURANCE: Internal Audit verified the Touche on behalf of the Auditor-General of ASSURANCE: Internal Audit verified the ASSURANCE: Internal Audit verified the ASSURANCE: Internal Audit verified the disclosures; Deloitte & Touche provided South Africa disclosures; Deloitte & Touche provided disclosures; Deloitte & Touche reviewed disclosures; Deloitte & Touche provided reasonable assurance on selected KPIs and reasonable assurance on selected KPIs and consistency across the reporting suite reasonable assurance on selected KPIs and reviewed consistency across the reporting reviewed consistency across the reporting reviewed consistency across the reporting suite suite suite IF YOU ONLY READ ONE THING ... STRATEGY, VALUE CREATION AND GOVERNANCE, ETHICS AND SUSTAINABILITY AND ESG ASSURANCE AND REPORTING OUTLOOK LEADERSHIP Sustainability report QUALITY Start with our integrated report Integrated report Governance and remuneration report Environmental performance, including Integrated report In one place, it sets out our strategy, the Our strategy, business model and material Board composition, committees and emissions and water Board responsibility and signoff matters most material to Eskom, how we have matters effectiveness Social impact, community investment and Independent assurance report on selected KPIs performed against them and where we are Our operating context, risks and opportunities Ethics, compliance and combined assurance just energy transition Annual financial statements heading. It points you to the rest of the suite The C-suite’s perspectives King IV application and governance outcomes Condensed annual financial statements and Climate-related disclosures aligned with Independent auditor’s report when you want to go deeper commentary REMUNERATION AND BENEFITS IFRS S2 Contribution to the UN Sustainable OPERATIONAL AND FINANCIAL WHERE TO FIND WHAT Annual financial statements Governance and remuneration report Development Goals PERFORMANCE A quick guide to Eskom’s FY2026 reporting Our financial position, performance and cash Remuneration philosophy and policy Performance report suite, organised by the topics that matter most flows Executive and non-executive director Integrated report Performance overview to our stakeholders. remuneration Carbon footprint Financial overview Pay-gap disclosure under the Companies Statistical information Amendment Act Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Our reporting suite and approach GOVERNANCE AND APPROVAL BY THE BOARD OUR REPORTING SUITE The Board is responsible for ensuring the integrity of Eskom’s integrated report and broader reporting suite. Eskom’s reporting suite for the year ended 31 March 2026 aims to provide a balanced, transparent and credible In approving the reports, the Board considered whether they provide a balanced, transparent and credible account of our performance, position, outlook and impact. It is designed to help stakeholders understand how we account of Eskom’s performance, material matters, risks, opportunities and outlook, and whether they are create and preserve value, where value has been eroded and how the Board and management are responding to aligned with the applicable reporting frameworks, regulatory requirements and the principles of integrated the material matters affecting the group. reporting. Together, the reports in Eskom’s 2026 reporting suite are intended to give stakeholders a clear, connected and The approval of the integrated report and reporting suite was based on the recommendation of the Audit accessible view of the group’s performance, impact and outlook across multiple dimensions: Committee, with input from the relevant Board committees on matters within their mandates, including governance, human capital and remuneration, sustainability, performance, risk and assurance. The Board approved the 2026 integrated report and reporting suite on 30 August 2026. The integrated The annual The sustainability The governance and The performance Mteto Nyati Dan Marokane Calib Cassim report provides an financial statements report provides remuneration report report provides overview of our provide the deeper insight details Eskom’s detailed Chairman Group Chief Executive Group Chief Financial Officer strategic context, audited financial into Eskom’s governance information material matters, results and related environmental, practices and on people, value creation disclosures, as well social and ethical culture, operational, story, performance as the report of governance Board and environmental, outcomes and the independent (ESG) impacts, committee community Bajabulile Tshabalala Dr Andrew Barendse Dr Kgaugelo Chiloane outlook external auditors commitments and oversight, and financial Lead Independent Director Independent non-executive Independent non-executive performance assurance and performance remuneration outcomes (NEW in FY2026) (NEW in FY2026) Lwazi Goqwana Sharmila Govind Clive le Roux Independent non-executive Independent non-executive Independent non-executive This layered approach allows the integrated report to remain strategic and concise, while providing additional detail in dedicated reports for stakeholders who require deeper information on governance practices, remuneration outcomes, sustainability impacts, financial position and operational delivery. This supports transparency without obscuring the matters that are most material to Eskom’s long-term sustainability, and reflects our commitment to balanced reporting, responsible governance and meaningful accountability to the Dr Dimakatso Matshoga Dr Tsakani Mthombeni Tshokolo (TP) Nchocho people of South Africa, our shareholder, providers of financial capital and the broader stakeholder community. Independent non-executive Independent non-executive Independent non-executive Our reporting is guided by integrated thinking. This means that we consider Eskom’s performance across financial, operational, environmental, social and governance dimensions, and explain the trade-offs, dependencies and risks that influence our ability to deliver on our mandate over the short, medium and long term. Prof. Vuyo Peach Dr Busisiwe Vilakazi Thandeka Zondi-Mthembu Independent non-executive Independent non-executive Independent non-executive 2 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Our reporting suite and approach continued REPORTING PERIOD AND BOUNDARY Assurance is obtained through a combined assurance approach, which includes management review. Internal The suite covers Eskom Holdings SOC Ltd and its major subsidiaries, with financial information presented in South Audit performed an audit review of quantitative non-financial data disclosed in the report. Deloitte & Touche, our African Rand, our functional and reporting currency. Performance information relates to the financial year from independent external auditors, provided reasonable assurance on a selection of KPIs disclosed in the reports. All 1 April 2025 to 31 March 2026 (shortened in this report to FY2026), unless otherwise stated. Significant events after but three of the 39 KPIs scoped for reasonable assurance received an unqualified opinion. Deloitte & Touche also year end up to the date on which the Board approved the reports have also been considered. considered whether information in the reporting suite is consistent with the annual financial statements – which is subject to audit in terms of International Standards on Auditing – or other reports in the suite, as appropriate. The integrated report contains a set of condensed financial statements, although it should be read in conjunction with the comprehensive financial statements for a complete overview of financial performance. IR T  he full list of KPIs selected for reasonable assurance, with their definitions, is disclosed from page 101. Deloitte's independent assurance report is included from page 105 and includes the basis of conclusion on the qualified KPIs In this report, short term means within one year after year end, medium term within one to five years, and long term more than five years. When reporting on KPIs in this report, we have included the short- and medium-term targets. Where applicable, we disclosed the targets agreed in the annual compact with the Department of Electricity and Energy (DEE), indicated where applicable with SC . DEE acts as representative of our one direct shareholder, the South African Government, which acts on behalf of the people of South Africa. MATERIALITY We apply materiality in a way that reflects the purpose of each report. In the integrated report, we focus on matters that are material to Eskom’s ability to create or preserve value, or to limit the erosion of value. This includes both financial materiality and impact materiality, taking account of our strategic objectives, risks and opportunities, stakeholder concerns, Board focus areas and the six capitals. PREPARATION PROCESS The reporting process is led by the Group Finance Division under the supervision of the Group Chief Financial Officer, Calib Cassim CA(SA). It draws on inputs from across the business and is informed by Eskom’s Corporate Plan, shareholder compact, quarterly reports to the shareholder submitted in compliance with National Treasury regulations and the conditions of the Eskom Debt Relief Act, 2023 as amended, and audited annual financial statements. Financial figures are sourced from the audited group annual financial statements, which are prepared in accordance with IFRS Accounting Standards. Key performance indicators (KPIs) reported herein are based on internal measurement specifications. The reports are reviewed by subject matter experts, business unit management, the Executive Committee (Exco), relevant Board committees – most prominently the Audit Committee and the Social, Ethics and Sustainability Committee – and the Board. 3 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Who we are and what we do OUR MANDATE, VISION AND PURPOSE Eskom has a dual commercial and social mandate to drive both economic growth and socio-economic development. This mandate is meant to position Eskom as a reliable and financially sustainable electricity provider, while contributing to South Africa's economy and enabling a responsible transition to a lower-carbon future. The mandate is set out in our memorandum of incorporation (MOI), which is prepared by the Board and accepted by our shareholder. WHO WE ARE Eskom Holdings SOC Ltd is South Africa’s national electricity utility, supplying power by generating, transmitting and distributing electricity, also purchasing power from independent producers (IPPs) and trading regionally. Our commercial mandate underpins national energy security and supports economic growth, with our country-wide operations touching the daily lives of most South Africans. We are also pursuing a transition to a lower carbon future within a more competitive, unbundled electricity market. Our social mandate makes us a key contributor to national development, including direct and indirect job creation, workforce transformation, skills development, broad-based black economic empowerment (B-BBEE) and rural electrification. Having connected over six million homes since 1991, we continue to work towards achieving universal access to electricity, unlocking economic opportunity 1 and improving living standards of all South Africans. Our work also supports several United Nations Sustainable Development Goals (SDGs). SR Our sustainability report, available online at www. eskom.co.za/investors/integrated-results/ explains how we affect the SDGs 4 Who we are and what we do 10 How we deliver value 4 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Who we are and what we do continued Our vision and purpose flow from this mandate. Four strategic objectives, aligned to the shareholder's five strategic priorities, guide how we deliver on it. The reverse is equally true: when we cannot fulfil our mandate, the impact on the economy and on consumers is significant. We have Lower the cost of doing business in South Africa; enabling inclusive economic growth and providing security and stability of seen in the recent past how an Eskom that is not financially sustainable Eskom’s mandate weighs heavily on the national budget, the sovereign credit rating and electricity supply and provide electricity in an efficient and financially sustainable manner. borrowing costs, ultimately reducing resources available for other priorities. Encouragingly, our first credit rating upgrade in over a decade, from B to B+ by S&P Global in FY2026, was cited by ratings agencies as Our a factor in South Africa's own sovereign upgrade by contributing to a mandate stronger economic outlook. Early in FY2027, Fitch also upgraded both the sovereign and Eskom’s credit ratings. Our vision Our purpose Sustainable power for a better future Powering growth sustainably Our finance strategy prioritises pursuing an adequate tariff path that balances affordability with our financial sustainability, optimising Shareholder's priorities costs, deleveraging the balance sheet with Government support, and collaborating on an enduring solution to address the arrear municipal Achieving universal access, Qualitatively transform energy Attain sovereign and regional Drive industrialisation and Assert SA, continental and debt challenge. Debt relief support alone will not resolve the underlying availability, affordability demographical; elevate role of and quality energy security lead innovation women and youth global energy leadership structural issues – cash from operations must be sufficient to meet debt service obligations and fund the investment needed to sustain and expand Eskom strategic objectives infrastructure, with a standalone investment-grade credit rating being targeted in the medium term. Pursue financial and Position Eskom as energy Modernise our Drive a just and inclusive operational sustainability sector leader power ecosystem energy transition (Fix the current business) (Prepare for competitiveness) (Leverage technology) (Transition responsibly) IR Our business model, detailed from page 10, shows how we convert inputs into electricity to meet customer demand, and how we impact the six • Recover and sustain EAF to • Unbundle Eskom divisions in line • Accelerate TDP execution • Accelerate new capacity capitals 70% in the long term with the revised unbundling strategy including alternative funding models projects (i.e., Gas, RE, Nuclear, • Drive interventions to achieve • Foster a competitive and open • Build a future-ready and resilient Pumped Storage) In delivering our mandate, we engage a broad set of stakeholders: environmental compliance electricity market distribution network including • Intensify repowering and the Department of Electricity and Energy (DEE) as our shareholder • Implement innovative solutions • Launch enhanced business smart meters and microgrids rollout repurposing of stations representative, other government departments and regulators, lenders to reduce municipal arrear models and embed customer- • Increase flexibility of generation (e.g., Komati, Hendrina, Arnot) and investors, employees and organised labour, customers, suppliers and debt and energy losses centricity to stimulate sales plant • Explore clean coal civil society. The general public is, indirectly, our ultimate shareholder. • Intensify cost optimisation and secure market share • Upskill and reskill workforce for technologies and solutions and enhance revenue • Advance unbundled and dynamic digital and clean energy future • Stimulate electrification to • Address fraud, corruption tariffs for enhanced market increase access and IR See "External governance and oversight" on page 7 for the departments and criminality positioning drive decarbonisation with oversight over our operations (DERs, eMobility) Embed digitalisation and AI integration across Entrench a high-performance and ethical culture Enhance Eskom’s brand and reputation the value chain Customer Zero Harm Integrity Innovation Sinobuntu Excellence satisfaction KEY STAKEHOLDERS SIX CAPITALS Business and suppliers Employees Financial capital Manufactured capital General public and customers Investors Natural capital Human capital Media Regulators Parliamentary Committees Government Social and relationship capital Intellectual capital 5 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Who we are and what we do continued OVERVIEW OF THE GROUP ESKOM HOLDINGS SOC LTD Board of Directors Exco and Committees REGULATORS Audit Capital NERSA Business Operations Performance Information and Technology SUBSIDIARIES National Nuclear Regulator Governance and Strategy Nuclear Management National Transmission Company South Africa SOC Ltd Human Capital and Remuneration Operating Eskom Enterprises SOC Ltd Investment and Finance Regulation, Policy and Economics Divisional Eskom Rotek Industries SOC Ltd Risk Risk and Sustainability boards Social, Ethics and Sustainability Tender Escap SOC Ltd SHAREHOLDER AND POLICY Turnaround Eskom Finance Company SOC Ltd MINISTRY Eskom Development Foundation NPC Department of Electricity and Energy Line divisions National Electricity Distribution Company Generation Distribution of South Africa SOC Ltd (not trading) OVERSIGHT MINISTRIES Strategic functions FUTURE SUBSIDIARIES Strategy & Planning Risk and Sustainability RT&D Internal Audit Generation Company National Treasury Group Investigations & Security Company Secretariat Eskom Green (renewables company) Department of Forestry, Fisheries and the Environment Department of Water and Sanitation Support functions Finance Human Resources Legal, Compliance & Regulation Strategic Delivery Group Technology & Information Renewables Group Capital Corporate Services Eskom Holdings SOC Ltd is the parent company Our key subsidiaries are: • Eskom Finance Company SOC Ltd (EFC) – provides Each subsidiary has its own board, with the Eskom of the group, headquartered in Johannesburg with • National Transmission Company South Africa SOC Ltd housing and other loans to employees. The sale of Board acting as shareholder representative. In administrative and technical offices in most major (NTCSA) – trading since 1 July 2024 and currently the loan book to African Bank has been abandoned response to a request by the Board, the Minister of centres. Most of the electricity business still resides in functioning as the interim Transmission System as the conditions precedent to the sale agreement DEE appointed independent non-executive directors the holding company, which also holds investments in Operator (TSO) while the options are being concluded in FY2025 were not fulfilled to the boards of EE, ERI, Escap and Esdef during the several subsidiaries, some of which provide strategic considered to establish an independent TSO • Eskom Development Foundation NPC (Esdef ) – past year, to diversify the skills mix of those boards by services to the group and its employees. The holding outside Eskom a non-profit company delivering our corporate complementing the technical and business expertise company remains the primary contributor to group social investment (CSI) programmes provided by employee directors, thereby enhancing • Eskom Enterprises SOC Ltd (EE) – an investment performance. oversight of the subsidiaries. holding company whose main subsidiary, Eskom • National Distribution Company of South Africa SOC Rotek Industries SOC Ltd (ERI), provides technical Ltd (NEDCSA) – set up to house the Distribution AFS N  ote 7 of the consolidated annual financial support and plant maintenance to the electricity business once separated; not yet operational AFS F ull details of Eskom's equity-accounted statements provides segment disclosure of Eskom’s business investees and subsidiaries at 31 March 2026 are in generation, transmission, distribution and corporate • Escap SOC Ltd – a wholly owned insurer that notes 11 and 12 of the consolidated annual financial activities manages and insures business risks across the group statements 6 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Who we are and what we do continued INTERNAL GOVERNANCE STRUCTURES Our governance framework rests on a clear division EXTERNAL GOVERNANCE AND OVERSIGHT The electricity supply industry is regulated by the Eskom is committed to strong corporate governance of roles between the shareholder, the Board and Eskom Holdings is wholly owned by the South African National Energy Regulator of South Africa (NERSA) across the group and conducts an annual assessment management, defined in the MOI and supported by Government, with the Department of Electricity and under the National Energy Regulator Act, 2004 and of our application of the principles and practices of our delegation of authority (DOA) and significance Energy, led by Dr Kgosientsho Ramokgopa, acting as the Electricity Regulation Act, 2006, as amended by the King Code on Corporate Governance. We aim to and materiality framework (SMF) which is aligned to shareholder representative. the Electricity Regulation Amendment Act (ERAA) of apply the principles and practices of the King V Report the Public Finance Management Act, 1999 (PFMA). 2024. NERSA issues industry licences and sets revenue on Corporate GovernanceTM for South Africa, 20251 These tools set out when matters must be escalated Under the PFMA, we submit a five-year Corporate allowances in line with the Electricity Pricing Policy. (King V) from FY2027. for Board or shareholder approval. Plan annually to our shareholder and National Koeberg, our only nuclear facility, is regulated by the Treasury. The FY2027 Corporate Plan, approved National Nuclear Regulator (NNR). Our generation Wholly owned subsidiaries are governed by a by the Board in February 2026, covers the five- licences set limits on emissions and water use. IR Refer to “Governing and leading ethically – Applying subsidiary governance framework, which has been year period to FY2031. We also conclude an annual the King Code on Corporate Governance” from updated to account for the impact of the legal shareholder compact setting, which sets targets We operate under a wide range of laws and page 43 for further information separation process. Under an active performance for key performance indicators (KPIs) aligned with regulations covering tariffs, environment, procurement management approach, Eskom Holdings sets the the shareholder's Strategic Intent Statement. Our and labour. The Board, supported by its committees, is the strategic direction and provides funding support, progress against the shareholder compact is reported focal point of governance and accounts to the while subsidiaries operate independently against to the shareholder and National Treasury quarterly, ADAPTING TO A CHANGING ELECTRICITY shareholder on the group's performance. It sets the performance compacts set by Eskom as their after being approved by the Board. The report also SUPPLY INDUSTRY organisation’s strategic direction and safeguards long- shareholder, on which they report regularly to Eskom. covers compliance with the debt relief conditions The South African electricity supply industry is term sustainability. The Executive Committee (Exco) associated with the Eskom Debt Relief Act, 2023 as being fundamentally reshaped. Policy reform, the manages day-to-day operations and implements The boards of NTCSA and Escap are chaired by, amended, which determine the conversion to equity accelerating shift to cleaner energy, technological Board-approved strategy. and consist mostly of, independent non-executive of the various tranches of the debt relief support change and greater customer choice are opening the directors. Once the legal separation is complete, of R230 billion in total to be provided to Eskom by market to new participants and new business models. Following approval by Cabinet in October 2025, the the boards of the new subsidiaries – NEDCSA to National Treasury. Eskom, until recently one of the few remaining Minister of DEE appointed eight new members and house the Distribution business, Eskom Green as the vertically integrated utilities globally, is repositioning four returning members to the Board with effect from vehicle for the renewables business, and GxCo which itself to compete and lead in this new environment. 1 December 2025. Six board members stepped down is intended to house the Generation business – will AFS P  erformance against the 2026 shareholder compact similarly be majority-independent, and all will have the is detailed in the directors’ report in the financial Our transformation rests on three linked shifts: on 30 November 2025 at the conclusion of their statements three-year term. Bajabulile Tshabalala has assumed Eskom Board as shareholder representative. • Unbundling: separating our generation, transmission the role of Lead Independent Director, taking over and distribution businesses into focused, from Leslie Mkhabela after the conclusion of his term. Divisional boards for Generation and Distribution accountable subsidiaries Mteto Nyati will continue to serve as Chairman until continue to serve as transitional structures during the PR In this report, KPIs from the compact that are shown in tables are marked SC and are included in • Modernising: strengthening the grid, adding October 2026 when his three-year term comes to legal separation process. They promote accountability the statistical section contained in the performance flexibility and rolling out digital tools such as smart an end. within each division and report to Exco. They are report meters operational in nature and do not constitute formal boards of directors under the Companies Act, 2008. • Diversifying: expanding the energy mix to include IR Detail of the composition of the Board and Exco is renewables, gas, nuclear and storage alongside a We are also subject to oversight by National Treasury, provided from page 46 responsibly managed coal fleet the Department of Forestry, Fisheries and the Environment (DFFE), the Department of Water and In December 2025, Minister Ramokgopa approved Sanitation (DWS) and the Department of Planning, our revised unbundling strategy. It introduced a new Monitoring and Evaluation (DPME), and we report holding company (NewCo) with four wholly owned regularly to various parliamentary committees. subsidiaries: NTCSA (already operational), NEDCSA (not yet operational), a generation company (GxCo) and Eskom Green (housing the renewables business). 1. Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved. 7 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Who we are and what we do continued In line with the Electricity Regulation Amendment The System Operator, housed in NTCSA, balances Act, an independent state-owned Transmission supply and demand in real time to keep the system GENERATE TRANSMIT System Operator (TSO) will be established outside frequency at 50Hz. We are part of the Southern of Eskom to operate the wholesale electricity African Power Pool (SAPP), which relies on strong Power stations 30 Transmission lines 33 691km market. During the State of the Nation Address in transmission networks across member countries to February 2026, President Cyril Ramaphosa announced support regional grid stability. Nominal capacity 47 378MW Transformer capacity 161 423MVA the establishment of the Eskom Restructuring Task Team (ERTT) to accelerate the establishment of the Eskom owns and operates most of South Africa's base-load and peaking generation capacity. Coal-fired stations 39 692MW independent state-owned TSO. DISTRIBUTE We have 30 power stations with a nominal capacity of Nuclear power 1 880MW 47 378MW, that utilise coal, nuclear fuel, water, wind, Overhead lines 369 068km IR Refer to “Reflecting on our operating context – diesel and small volumes of solar power. The group Pumped storage 2 724MW Adapting our business model through unbundling” also manages a transmission and distribution network Underground cables 8 496km from page 24 for more information on the Hydro 602MW of more than 411 000km of power lines. recommendations of the ERTT Transformer capacity 148 241MVA IPPs, which sell to the group through NTCSA, OCGTs 2 380MW WHAT WE DO had installed capacity of just around 8 500MW We create value by generating, transmitting, at year end, mainly wind and solar photovoltaic Renewables – Wind 100MW distributing and selling electricity to a wide range (PV). Renewable generation is variable and non- of customers. We serve primarily South African dispatchable when no battery storage is attached, which can place strain on our coal fleet: coal units When renewable output is high, the System Operator Under NTCSA's Transmission Development Plan, customers, along with a few international customers, may need to curtail generation by renewable IPPs – at we aim to connect around 56GW of new generation using energy we generate as well as power purchased typically idle at around 60% capacity to remain stable. a financial cost – to protect grid frequency. Increasing capacity by 2034, to be delivered mostly by IPPs, with from independent power producers (IPPs) and the flexibility of our fleet and adding storage are investment focused on the Western Cape, Eastern imported from neighbouring countries. Mozambique therefore central to our modernisation agenda. Cape, Northern Cape and Mpumalanga. To accelerate remains our most significant trading partner for both delivery, five transformer suppliers and 19 overhead imports and exports. transmission line contractors have been appointed to PR Details on our power stations, power lines and substations are available in the performance report long-term panels. The Government-led Independent PR Customer numbers, sales volumes and revenue by Transmission Projects (ITP) programme aims to draw segment are shown in the supplementary information in private sector funders and developers to further in the performance report expedite delivery. Overall nominal capacity provided by Eskom Total energy supplied by Eskom and IPPs, by Energy breakdown by supplier Energy breakdown by destination and IPPs, by source source (excluding wheeling and net of pumping) 3.4% 0.4% 0.5% 2% 5.8% 5.7% 3.3% 10% 12% 6.0% 2.6% 5.7% 7% 6.1% 7.4% 55 943MW 202 890GWh 202 890GWh 201 953GWh 71.0% 81.5% 88% 81% Coal Wind Diesel Hydro Coal Wind Hydro net Nuclear Eskom IPPs Imports Local sales International saes Solar Nuclear Other renewables Solar Diesel Other renewables Technical and other losses The difference between the total supply and demand is due to own use and timing differences. 8 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Who we are and what we do continued The supply and demand of electricity is shown below. Source, GWh 2026 2025 2024 Coal-fired stations 165 431 179 426 166 606 Nuclear power 11 618 8 409 8 172 Pumped storage stations 4 406 4 649 4 386 Open-cycle gas turbines (OCGTs) 811 2 176 3 634 Hydro stations 2 416 710 1 448 Wind 284 332 329 Eskom generation 184 966 195 702 184 576 Pumping by pumped storage stations (5 762) (6 064) (5 710) Net sent out by Eskom 179 204 189 638 178 866 Independent power producers (IPPs) 19 596 19 365 20 183 Imports 4 090 7 570 9 150 Wheeling1 3 103 2 028 2 449 Energy available for distribution 205 993 218 601 210 648 Technical and other losses2 (23 921) (25 339) (23 502) Internal use (349) (349) (329) Wheeling1 (3 103) (2 028) (2 449) Unaccounted3 (588) (1 162) (1 057) Local and international sales 178 032 189 723 183 311 Additional information Estimated loadshedding and load curtailment4 36 354 13 215 Percentage of demand not met4 0.02% 0.16% 5.92% 1. Wheeling refers to the movement of electricity between international customers through Eskom’s network, without the power being available to customers on the South African grid. 2. Technical losses occur during the transmission and distribution of energy. Non-technical losses primarily relate to electricity theft through illegal connections, meter tampering and the use of illegal electricity tokens on prepaid meters. Meter reading and billing errors are also included. 3. The unaccounted value is a balancing figure due to different cut-off dates for recording sales and production volumes. 4. This is an estimate by the System Operator based on forecast versus actual demand at a given time. It does not account for load shifting in response to loadshedding. 9 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information How we deliver value The availability and quality of our six capital inputs empowers us to deliver on our strategic objectives. This enables us to deliver essential electricity services and outcomes that drive long-term value for our stakeholders and enable the growth and sustainability of South Africa. OUR SIX CAPITALS OUR INPUTS TO THE CAPITALS We aim to align our value creation FINANCIAL CAPITAL R1.4 billion Funding raised (2025: R8.7 billion) with a selection of UN SDGs Financial capital includes retained earnings, equity from National R80 billion Government support received (2025: R64 billion) Treasury and Government-guaranteed debt funding. Lenders earn R20.1 billion Conversion of China Development Bank (CDB) facility from USD to CNY interest on financial capital.​ MANUFACTURED CAPITAL 47 378MW Nominal power station capacity (2025: 46 866MW) Manufactured capital consists of power stations as well as 8 565MW IPP capacity (2025: 7 495MW) transmission and distribution networks, supplemented by IPPs and 411 255km Power lines and cables (2025: 411 181km) imports. It is enhanced by commissioning new units, extending power lines, and maintaining existing plant.​ NATURAL CAPITAL 96.5Mt Coal burnt (2025: 106.2Mt) Natural capital includes non-renewable energy sources like coal, 241 562Mℓ Net raw water used (2025: 268 638Mℓ) water, and nuclear fuel, consumed to generate electricity. Waste is produced, impacting the environment. We aim to transition Non-renewable energy sources Renewable energy sources to renewable energy and mitigate impacts on bird life from 165 431GWh Coal (2025: 179 426GWh) 11 019GWh Hydro (2025: 12 999GWh) transmission networks. 11 618GWh Nuclear power (2025: 8 409GWh) 11 624GWh Wind (2025: 10 983GWh) 1 079GWh Eskom and IPP OCGTs (2025: 2 838GWh) 6 781GWh Solar (2025: 6 492GWh) SR Read more about our impact on Nil Other (2025: 425GWh) 1 100GWh Other (2025: 1 065GWh) the SDGs in the sustainability report HUMAN CAPITAL 42 030 Employees at the start of the year (31 March 2025) Human capital involves employees’ competencies, focusing on R2.2 billion Training spend (2025: R1.5 billion) racial, gender and disability equity. Despite financial constraints, we 1 244 Headcount increase (2025: 1 405 increase) enhance skills through training, balancing headcount changes with preserving our knowledge base. Loss of competent staff impacts 3 713 Technical and non-technical learners (2025: 2 609) this base. 931 Youth Employment Services learners at year end (2025: 612) SOCIAL AND RELATIONSHIP CAPITAL R153.25 million CSI committed spend (2025: R146.2 million) Social and relationship capital involves interactions with R226.2 billion B-BBEE attributable procurement spend (2025: R205.4 billion) stakeholders, supporting economic growth, job creation, B-BBEE R2 billion Electrification spend funded by Government (2025: R2.4 billion) and socio-economic development. We acknowledge the negative health impacts of our operations and are working on projects to reduce emissions. INTELLECTUAL CAPITAL R151.5 million Research, testing and development spend (2025: R145.8 million) Intellectual capital encompasses technology, organisational Information technology, telecommunications and operational technology knowledge, systems, policies and innovation. Our System Operator Organisational knowledge, intellectual property, systems, policies and procedures manages the supply-demand balance, maintaining the frequency at 50Hz, and is crucial for future technological advancements and operational improvements. 10 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming Who we are and Transforming energy how energy wecreate to value Thoughts createvalue from Leadership Thoughts from ourreports Repositioning leadership OurEskom Our inandand strategic strategic risk risk LeveragingLeveraging landscape landscape governance Governance and governance forethics Performance Performance transformation Financial review Performance overview Supplementary Supplementary Supplementaryinformation information ABC to create value our leadership a transforming industry for transformation overview overview information Delivering value through How we deliver our business model continued value continued Eskom generates, Eskom generates, transmits, transmits, and and distributes distributes electricity electricity to to industrial, industrial, mining, mining, commercial, commercial,agricultural agriculturaland andresidential residentialcustomers, customers,asaswell wellasasredistributors, redistributors,including includingmunicipalities municipalitiesand andmetros. metros. GENERATION TRANSMISSION NTCSA DISTRIBUTION OUTPUTS PRODUCTS WASTE AND BY-PRODUCTS Power stations produce electricity from coal, nuclear and renewable High-voltage electricity is transmitted via Medium- and low-voltage resources, using primary energy inputs such as coal, water, the national grid using transformers and electricity is distributed to 183 311GWh 189 032GWh 178 723GWh 29.27Mt 30.24Mt 28Mt limestone, fuel oil, diesel and nuclear fuel transmission lines customers and redistributors Electricity sales to Ash produced using substations and distributors and to distributors, (2024:30.20Mt) (2025: (2023: 29.27Mt) 30.24Mt) Coal and gas: We generate electricity from coal and gas, These transformers lower the voltage of the reticulation lines and cables industrial, commercial, optimising asset performance and utilising Eskom and IPP stations for electricity international, residential 145.30kt 122.94kt 176.32kt peaking capacity and other customers Particulate emissions SYSTEM OPERATOR (2023: (2024:129.32kt) (2025: 145.30kt) 122.94kt) (2023: (2024:188 (2025: 183401GWh) 189 311GWh 723GWh) ) Nuclear: We operate Koeberg, Africa’s only nuclear power station We maintain the frequency of the power system at 50Hz to balance electricity supply 190.4Mt 204.6Mt 184Mt Renewables: Renewable energy (hydro, wind and solar) is CO CO22 emitted emitted supplied from Eskom, IPPs and imports and demand in real time (2023: (2024: 187.5Mt) (2025: 190.4Mt) 204.6Mt) 1 Power stations generate electricity. We also purchase 4 Electricity is distributed to customers and externally generated energy from IPPs and import partners redistributed by municipalities and metros Distribution substation Hydro Industrial Nuclear High-voltage transmission line 3 Transformers lower the voltage Wind High-voltage transformer Poles 2 High-voltage electricity is transmitted via the Commercial Solar national transmission grid Coal-fired and OCGTs Residential 11 13 11 ESKOM ESKOMHOLDINGS HOLDINGSSOC LTD Integrated SOCLTD Integratedreport report2024 2025 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information How we deliver value continued OUR CAPITAL OUTCOMES Value eroded Value preserved OUR MATERIAL MATTERS Value created FINANCIAL CAPITAL R  46.7 billion Debt and interest repaid, excluding CDB conversion (2025: R79.8 billion) R108.6 billion EBITDA (2025: R98 billion, restated) M1 S ustaining ethical leadership R354.7 billion Revenue (2025: R340.9 billion) R111.6 billion Arrear municipal debt (2025: R94.6 billion) M2 E nhancing financial R7.1 billion Eskom and IPP OCGT spend (2025: R17.7 billion) sustainability and liquidity MANUFACTURED CAPITAL M3 R  eversing the decline in sales and diversifying 270.8km Transmission lines installed (2025: 292.6km) 65.16% Energy availability factor (2025: 60.60%) revenue 4 000MVA Transmission transformer capacity installed (2025: 2 620MVA) 799MW from the commercial operation of Kusile Unit 6 M4 A  chieving operational  oth units at Koeberg Power Station uprated to 940MW, following B excellence 6 10 223 Smart meters installed and commissioned (2025: 321 496) steam generator replacements M5 Improving customer R45.0 billion Capital expenditure (2025: R41.1 billion) centricity NATURAL CAPITAL M6 E nhancing environmental 67 Environmental legal contraventions (2025: 65) 1.34ℓ/kWhSO Specific water consumption (2025: 1.40ℓ/kWhSO) stewardship 0.98kg/MWhSO Relative particulate emissions (2025: 0.64kg/MWhSO) M7 Building a skilled workforce HUMAN CAPITAL M8 H  arnessing digitalisation 43 274 Employees at year end R50.4 billion Gross employee benefit expense (2025: R45.4 billion) and AI 0.18 Lost-time injury rate (2025: 0.23) 1 013 Employees enrolled for further studies (2025: 930) M9 F urthering national developmental goals 7 Employee and contractor fatalities (2025: 3) 2 268 Appointments through internal hires and promotions (2025: 3 106) M10 Executing the unbundling SOCIAL AND RELATIONSHIP CAPITAL M11 C  reating the Eskom of 90.5% Key customer delight (2025: 86.8%) 6 7 578 Electrification connections (2025: 83 031), including the future 2 119 off-grid connections 1 510 540 CSI beneficiaries (2025: 1 203 566) M12 A  dvancing climate action 4 days Loadshedding (2025: 13) and a just energy transition R  49 billion Total taxes, duties and levies withheld and paid to SARS (2025: R43.5 billion) M13 U  pholding governance, compliance and ethics INTELLECTUAL CAPITAL M14 F ighting criminality and Eskom Academy of Learning delivered training programmes covering renewable energy, battery energy storage and smart grid technologies misconduct Grootvlei climate-smart horticulture facility commissioned, with training provided to surrounding communities Control environment strengthened through the audit recovery programme IR R  efer to the material matters on Cyber-security posture enhanced, with no Priority 1 cyber-security incidents recorded page 40 Raptor Fusion Centre launched to drive intelligence-driven forensic investigations and rapid response security interventions 12 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Message from the Chairman More than three years on, the organisation I have The Board’s role has been to hold management But support does not mean silence on the things that the privilege to chair is almost unrecognisable. This rigorously to account for execution against this matter. The establishment of an independent TSO past year has been a defining one – the year in which strategy, while ensuring it remains aligned to the is a material event for Eskom’s lenders, and it must Eskom’s turnaround moved decisively from recovery shareholder’s Strategic Intent Statement and to the be implemented in a manner that addresses lender and stabilisation towards transformation. long-term interests of the country we serve. requirements, avoids defaults on loans and ensures that Eskom is not placed in a worse financial position, A DEFINING YEAR IN ESKOM’S RECOVERY TRANSFORMING ESKOM FOR A COMPETITIVE while appropriately considering shareholder rights The evidence of that shift is tangible. South Africa FUTURE and interests. The Board shares the President’s vision recorded more than 300 consecutive days without Repositioning Eskom for a liberalised, decarbonising of an independent TSO that will own the transmission loadshedding by the end of FY2026, reaching a market has been central to the Board’s agenda. assets at the appropriate point in the future. Equally, full 365 days on 15 May 2026 – a milestone that In December 2025, the Minister of Electricity and we hold a clear fiduciary responsibility to ensure that would have seemed unimaginable when we began. Energy approved a refined end-state and unbundling Eskom remains financially sustainable so that energy Generation plant availability improved to 65.16%, and strategy, introducing a new holding company with security can continue to power South Africa’s growth. in recent months our generation fleet has reached four subsidiaries – a generation company, the It is precisely for these reasons that we support a daily availability levels above 82%, the highest since National Transmission Company South Africa, the pragmatic, carefully sequenced approach with clear 2017. Eskom delivered a second successive year of National Electricity Distribution Company of South stage gates. I am therefore encouraged that Phase II strong profitability and, notably, secured its first Africa and Eskom Green – alongside an independent of the reform process focuses squarely on financial credit-rating upgrade in over a decade, which in turn Transmission System Operator (TSO). The launch of sustainability, municipal debt and our obligations contributed to South Africa’s own sovereign upgrade. Eskom Green on 9 June 2026 as a dedicated, utility- to lenders. “Courage is the most important of all the scale renewable energy business was a landmark for WHEN ESKOM SUCCEEDS, SO DOES SOUTH the group. It gives Eskom a ring-fenced, investable Successful reform and a financially sustainable virtues, because without courage you can’t AFRICA. platform to attract private and concessional capital, Eskom are not competing objectives – they are practice any other virtue consistently.” These are not isolated achievements; they are the to compete meaningfully in the renewables market, complementary, and both are essential to a stable, product of a deliberate strategy, disciplined execution and to advance a just energy transition focused investment-ready electricity sector. and, above all, the dedication of tens of thousands on repowering and repurposing our coal-station These words by Maya Angelou have stayed with of Eskom Guardians who kept the lights on. Yet the communities rather than leaving them behind. CONFRONTING THE THREATS TO FINANCIAL me throughout my time as Chairman. In the life of Board is mindful that stabilising operations was always SUSTAINABILITY a board – especially the board of an enterprise that Throughout, our approach is grounded in three The single greatest threat to Eskom’s financial going to be the beginning of the journey, not the end. quite literally powers a nation – fiduciary duty is principles: safeguarding financial sustainability, sustainability, and to the reform of the industry, Our task now is to convert hard-won operational not an abstract legal concept. It is the daily practice protecting energy security and grid stability, and remains the escalation of municipal arrear debt, which recovery into durable financial and structural of acting in the best interests of the organisation enabling a transition that is genuinely just and has reached R119.9 billion by June 2026. This is clearly sustainability, and to reposition Eskom to compete with care, skill and diligence, even when the path inclusive. unsustainable. and lead in a transforming electricity supply industry. is unpopular, politically sensitive or operationally uncomfortable. Underpinning this progress is a strategy that the GUIDING INDUSTRY REFORM WITH COURAGE Municipalities are our largest customer segment, and Board has refined to reflect Eskom’s shift from AND CARE persistent non-payment directly erodes the revenue, As I reflect on the journey since the previous cash flows and liquidity on which the entire electricity recovery towards transformation. Anchored in No issue this year has tested the Board’s fiduciary Board first took office in October 2022 at a time supply industry depends, whether unbundled or four strategic objectives – pursuing financial and resolve more than the reform of the electricity supply of profound national crisis, I am reminded that not. It also constrains the legal separation of our operational sustainability, positioning Eskom as industry. The establishment of an independent, everything of consequence we have achieved began distribution business, as that is premised on a an energy-sector leader, modernising the power state-owned TSO outside Eskom, as required by the with the courage to do what Eskom and South Africa financially sustainable Distribution business. We have ecosystem and driving a just and inclusive energy Electricity Regulation Amendment Act and reaffirmed required, consistently, even when it was difficult. pursued every lever within our control – distribution transition – it charts Eskom’s evolution from a by President Ramaphosa, is a defining moment for the When we assumed office, Eskom was grappling with vertically integrated monopoly into a resilient, future- electricity supply industry. We welcome the Phase I agency agreements, payment arrangements with key extreme levels of loadshedding, an unreliable coal- ready utility able to compete, collaborate and lead. work of the Presidency’s Eskom Restructuring Task metros and enforcing processes at our disposal under fired generation fleet, a transmission grid unable to Team (ERTT) and fully support the delivery of this the Promotion of Administrative Justice Act. But this accommodate new capacity at the pace required, and policy objective. is a systemic challenge that Eskom cannot solve alone; a balance sheet buckling under unsustainable levels of it requires decisive, coordinated intervention across debt. Employee morale was low, trust in leadership all spheres of Government. had eroded, and the legacy of state capture lingered. 13 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Message from the Chairman continued There are encouraging signs. The City of Fiduciary duty is not about popularity; it is about Our social licence to operate rests on the strength CONCLUDING REMARKS Johannesburg has fully settled its arrear debt in doing what the organisation and the country require of our relationships – with our shareholder and I extend my heartfelt gratitude to Minister August 2026, as agreed in the payment arrangement; and doing so consistently. Government, with lenders and investors, with Kgosientsho Ramokgopa for his steadfast support National Treasury has begun temporarily withholding customers and organised labour, and with the and visionary leadership, and to our Group Chief the equitable share from persistently non-compliant That same resolve underpins our zero-tolerance communities in which we operate. This year we Executive, Dan Marokane, and his Executive municipalities; and the ERTT has proposed a stance towards criminality and misconduct. The Board deepened engagement across all of these, guided Committee, whose leadership has driven Eskom’s dedicated workstream in Phase II to develop will continue to insist on stronger prevention, earlier by the King principles of inclusivity, materiality, recovery with purpose and determination. To my structural solutions. We welcome these steps and will detection, faster investigation, effective correction and responsiveness and transparency. Multi-stakeholder fellow Board members, past and present, I am deeply continue to support them with urgency. On tariffs, improved governance oversight. Recent convictions feedback confirmed growing recognition of our grateful for your wisdom, resilience and unwavering the resolution of the MYPD 6 determination brought in high-profile matters reflect a decisive shift from improved stability, even as stakeholders rightly expect dedication through a period that has demanded more welcome certainty, but we remain acutely conscious reactive response towards proactive, structural more – stronger communication, better coordination of a board than most will ever face. of affordability. prevention. Although most of Eskom’s roughly 43 000 and sustained delivery on our commitments. employees are honest and dedicated, the minority When I first accepted this role, I did so because We have heard the cries of South Africans that who are not must be identified and dealt with firmly. The Board takes these expectations seriously because the work spoke directly to my purpose – to serve double-digit increases are unaffordable, and we are We must eradicate unethical behaviour wherever it trust, once rebuilt, must be continually earned. something bigger than myself, in service of the country committed to containing increases to single digits occurs, while also addressing the control failures that I love. When your work is meaningful, the peace of by relentlessly driving efficiencies through our Cost allow it to take root. RENEWING THE BOARD AND SUSTAINING mind that comes with that alignment is worth far Optimisation and Revenue Enhancement programme. LEADERSHIP more than any title or comfort. Eskom’s turnaround We will continue to support the work by the Our commitment to King IV and our transition A board, like the enterprise it governs, must plan for demonstrates that it is within our power to fix what Department of Electricity and Energy on the review towards King V in the coming year anchors a continuity beyond any individual. This year brought is broken and to build the country of our dreams, in of the Electricity Pricing Policy, which was recently governance environment that has improved markedly, meaningful renewal to the Board itself. Following which future generations are better off than those published for public comment. even as we acknowledge that the journey is not yet Cabinet approval, eight new members and four before them. But to achieve this, we must pay careful complete. returning non-executive directors were appointed attention to the kind of leaders we entrust with our RESTORING INTEGRITY THROUGH with effect from December 2025, combining fresh institutions. COURAGEOUS GOVERNANCE The Board has also intensified its oversight of skills and diversity with institutional knowledge and Restoring governance and integrity has been a Eskom’s control environment and its combined stability. At the same time, Bajabulile Tshabalala Leadership matters. cornerstone of the previous Board’s term, and it assurance model. Rebuilding the credibility of our assumed the role of Lead Independent Director, is where courage has mattered most. Some of our financial reporting is not a compliance exercise; it is a role the previous Board introduced to align with To every Eskom Guardian who has worked tirelessly earliest and most difficult decisions – flattening the fundamental to restoring stakeholder confidence and best practice. I have had the privilege of leading the to keep the lights on: thank you. The journey is far organisational structure to create direct lines of to the integrity on which access to capital ultimately transition to this reconstituted Board, which is now from over, but I am more confident than ever that, accountability, restoring employee increases and depends. We have made sustained progress under the fully constituted and well positioned to guide Eskom together, we will continue to power South Africa’s reintroducing performance incentives after years audit recovery programme, closing the vast majority through the next phase of its journey. growth. Let us keep betting on South Africa. of constraint, and supporting a multi-year wage of prior year audit findings, and we are resolute that agreement to underpin industrial stability – attracted Eskom must move from partial control effectiveness The foundations we have laid – in leadership and criticism at the time. Yet each was taken in the long- towards genuine control maturity, grounded in governance, operational discipline and a clear reform term interest of the enterprise because a sustainable disciplined execution, first-line ownership and pathway – are designed to endure well beyond the turnaround would have been impossible without the consistent consequence management. An unqualified tenure of any single board or chairman. At the end of levers that drive accountability and reward excellence. audit and the timely publication of results remain firm the day, that is the measure of good stewardship: to Mteto Nyati A turnaround embedded in capability, accountability objectives on this path. leave an institution stronger, more capable and more Chairman and culture is far more enduring. trusted than one found it. Rebuilding trust is inseparable from restoring performance. 14 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Chief Executive’s review If my time in this role has taught me anything, it is that This is what a positive spiral looks like: better Calib elaborates in the Chief Financial Officer’s the solutions to Eskom’s problems lie within Eskom performing operations reduce costs, strengthen cash commentary, but the essential point bears repeating: itself – in the expertise, dedication and resilience flows and create the headroom to plan properly, operations and finances are inseparable. When the of our people, and in the discipline to execute which in turn enables operations to improve even generation fleet performs, when the production mix relentlessly against a clear plan. The energy crisis further. is optimised and when we rely less on diesel, the tested our collective resolve, but it also revealed financial benefit is immediate. The challenge now is our capacity to adapt, recover and transform. Those The recovery extends well beyond generation to convert recovery into resilience – to sustain these lessons now inform how we approach the road activities. Through the National Transmission gains under pressure and to reduce our reliance on ahead: with humility about the scale of the task, but Company South Africa (NTCSA), we continued the fiscus by earning our sustainability through reliable with confidence born of what we have already proven delivering against the Transmission Development Plan operations, disciplined and efficient cost management, we can do. (TDP), which will require around 14 500 kilometres and stronger revenue. of new transmission lines by 2034 to connect new FROM CRISIS MANAGEMENT TO A capacity and enable market reform. In Distribution, OUR PEOPLE: THE HEART OF THE STRUCTURAL RECOVERY we continued to modernise the network, expanded TURNAROUND The scale of the turnaround is best understood the rollout of smart metering and made real progress There is no question in my mind that our progress is against how deep in crisis we were as an organisation in eradicating load reduction – the controlled cuts rooted in the expertise, commitment and resilience and as a country. The Council for Scientific and we apply to protect overloaded networks and of our people. The skills of our employees across Industrial Research estimated that loadshedding cost ensure the safety of people in areas affected by illegal engineering, operations and maintenance have been the economy up to R2.8 trillion in 2023. In the year connections and theft. To date, seven provinces are decisive in structurally reducing loadshedding. It When I joined Eskom two and a half years ago, the under review, the country experienced only four free of load reduction, and more than 1.2 million is precisely because of their performance that we organisation was in the throes of the most severe days of loadshedding, with none at all in the second customers have been relieved of scheduled power secured labour stability through a three-year wage energy crisis in our country’s history. My early months half of the year, culminating in 365 consecutive days cuts; we are on course to eliminate load reduction agreement which is effective from 1 July 2026, were consumed almost entirely by crisis management without loadshedding on 15 May 2026. Behind that nationally by March 2027, with Gauteng as the most providing certainty at a critical time for the sector. – stabilising a fragile power system, building an headline lies disciplined execution: the refocused significant contributor being our key focus area. Generation Reliability and Sustainability Plan, targeted With the support of the Board and shareholder, we appropriate leadership team to tackle the challenges maintenance investment and the return of critical These are not abstract metrics; for the families and continued the self-funded short-term performance at hand and the future ahead of us, and restoring a generation capacity have driven a structural – not businesses affected, they are the difference between incentive scheme, because I firmly believe that a measure of confidence among stakeholders who had merely temporary – improvement in performance. darkness and dignity. turnaround of this magnitude must be recognised and every reason to doubt us. rewarded. Generation plant availability improved to 65.16% A FINANCIAL TURNAROUND TAKING ROOT Two and a half years on, I am able to speak to you for the year, from 60.60% previously, and has since Our operational recovery has been matched by Yet I cannot celebrate our people’s achievements from a vastly different vantage point. The crisis has climbed higher still – in recent weeks, the generation a financial turnaround. Eskom delivered a second without acknowledging a profound sadness. During given way to recovery, recovery has matured into fleet reached a daily energy availability factor above successive year of strong profitability, with a healthier the year, four employees and three contractors lost stability, and stability is now enabling us to turn our 82%, the strongest performance since 2017, with balance sheet, materially improved liquidity and their lives in the course of their work. Each loss is attention to transformation – to the threats and unplanned outages at their lowest daily levels in eight positive credit-rating actions from S&P Global, a tragedy, and any loss of life in Eskom’s service is opportunities that will define Eskom’s journey in a years. The final unit at Kusile achieved commercial Fitch and Moody’s – including our first credit-rating unacceptable. We are strengthening safety leadership, rapidly changing electricity industry. operation in September 2025, and the return of upgrade in over a decade, which contributed towards critical-risk controls and contractor management, That progression – from crisis to recovery to Medupi Unit 4 in July 2025 and Koeberg Unit 1 in South Africa’s own sovereign upgrade. because every person who works for Eskom must stabilisation and now to transformation – captures October 2025 restored significant capacity; both return home safely. Zero Harm is not a slogan; it is Government’s debt relief support has been a a non-negotiable value, which we reinforced in an the essence of the year under review. It has been a Koeberg units secured 20-year life extensions and critical enabler, freeing up cash from operations hour-long organisation-wide safety stand-down on year of tangible achievement, but also one of honest were uprated, securing dispatchable low-carbon to be reinvested in the business rather than being 18 August 2026, necessitated by the unacceptable reckoning with the structural challenges that remain. capacity for decades to come. Reliance on expensive consumed by debt servicing. We have continued number of fatalities that we suffered since year end. This review celebrates how far we have come, open-cycle gas turbines (OCGTs) more than halved, to comply with the conditions of the debt relief while being candid about the work still required to cutting fuel costs by around R10.6 billion and programme, with all the financial support received to secure South Africa’s energy future in a liberalised, improving both our finances and our environmental date successfully approved for conversion to equity. competitive marketplace. footprint. 15 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Chief Executive’s review continued Beyond safety, we continued to invest in our people But let me be plain: we cannot carry this burden Our developmental mandate also continued to technology – including flue gas desulphurisation, and our culture. A second consecutive Top Employer indefinitely without placing Eskom’s broader translate into tangible community impact: we fabric filter plants and low–nitrogen oxide burners certification affirmed the strength of our employee sustainability at risk. The level of non-payment by connected more than 67 500 households to the – alongside water-efficiency and ash-beneficiation value proposition, while our culture programme – municipalities is now a sovereign risk. The scale of the grid, reached remote areas through microgrids and projects, while engaging Government on the design anchored in accountability, operational excellence, challenge demands an intergovernmental solution, distributed energy sources, and launched a flagship of carbon-budget regulations to ensure that they are financial prudence, customer centricity and our values and we will continue to press for one with urgency. solar-powered smart village in Limpopo that serves practical, legally sound and financially sustainable. – is steadily reshaping how we work. This is not about clinging onto a monopoly, as we’re more than 700 households and is being positioned as constantly accused of, it is about advocating for the a national blueprint for rural electrification. Our decarbonisation efforts are pragmatic and We advanced transformation across most sustainability of the entire industry. phased: we will continue to operate our coal fleet occupational levels, deepened our leadership pipeline Through preferential procurement and supplier responsibly to protect energy security for the country, and expanded our learner intake. Looking ahead, Reversing the decline in sales development initiatives, we broadened inclusive while accelerating cleaner capacity. Base-load power our focus is on reskilling 15 000 employees by 2031 For the first time in more than a decade, sustained economic participation and retained our level 3 remains at the very heart of a credible transition – as through initiatives such as our Renewables Academy improvements in generation, combined with a broad-based black economic empowerment status, more renewables come online, we need dispatchable and Nuclear School, ensuring that our workforce is structural decline in demand, have given rise to on a path to level 2 in the next few years. generation to offset their variability and maintain a ready for a competitive, decarbonising industry. surplus capacity of around 2–3GW. Sales volumes stable power system, with gas the most economical declined by 6.2% during FY2026 to 178TWh, Tariffs, affordability and cost discipline near-term option alongside storage. Leadership sits at the heart of this: we can only driven by weak industrial demand and the effects We have heard South Africans clearly: double-digit deliver the best for our customers when we have of embedded self-generation. The closure of the electricity price increases are unaffordable. The The transition must also be just. Our approach, empowered, capable leaders who lead by example. Mozal aluminium smelter when it entered care and resolution of the MYPD 6 determination brought decoupled from the coal-station shutdown schedule, maintenance in March 2026 removed a large, stable welcome certainty, translating into single-digit ensures that repowering and repurposing proceed TURNING TO THE THREATS AND increases for the years ahead, and we are committed in parallel with the gradual retirement of our coal base-load customer from our planning assumptions, OPPORTUNITIES AHEAD to keeping increases within single digits by relentlessly assets, so that affected workers and communities are adding to these constraints. With operations now more stable, my focus has pursuing efficiencies. Our Cost Optimisation and supported rather than left behind. Flagship projects at deliberately shifted. The urgent question is no longer This is a serious signal. We have had to move Revenue Enhancement programme is central to this, Komati, Grootvlei, Camden and Hendrina – spanning how we end the crisis, but how we secure Eskom’s decisively from passively managing sales erosion to embedding cost discipline as a permanent way of microgrids, agriculture and skills centres – are creating long-term sustainability against the structural threats actively growing and diversifying revenue – retaining operating. new economic opportunity in the very communities we face – and how we seize the opportunities strategic industrial customers through negotiated that have powered this country for a century. presented by a transforming industry. Several pricing agreements, pursuing new demand from data We are equally committed to protecting vulnerable challenges demand our sustained attention. centres, optimising customer wheeling and cross- households, and we continue to engage Government A transition that sacrifices these communities would border sales, and developing electric-vehicle charging on broadening the reach of free basic electricity, not be a transition worth having; ours is deliberately Municipal debt and financial sustainability and renewable offerings through Eskom Green. which currently benefits far fewer eligible households designed to be human, not only technological. Municipal arrear debt, which has escalated to than it should. While almost half of our cost increases R119.9 billion by June 2026, remains the single Turning surplus capacity from a risk into an opportunity are not linked to inflation, we are preparing the Modernising the grid and embracing technology greatest threat to our financial sustainability and is now one of our foremost commercial priorities. business for increases in the vicinity of inflation to A competitive, decarbonising industry depends on a the biggest obstacle to the legal separation of our ensure the financial sustainability of the organisation. modern, flexible and digitally enabled power system. Distribution business. Serving our customers and communities We are accelerating the TDP, continuing to expand As the market liberalises, customer centricity is at Environmental compliance and a just transition and strengthen the distribution network, deploying As Mteto indicates in the Chairman’s statement, as the core of our strategy. Retaining relevance means Operational sustainability requires ongoing synchronous condensers to maintain grid stability Eskom’s largest customer segment, persistent non- improving service reliability, resolving complaints investment in environmental compliance, which as renewable penetration rises, and rolling out payment by municipalities directly erodes the revenue, faster, communicating openly about outages and remains a genuine risk to supply. smart meters at scale under our advanced metering cash flows and liquidity which power the electricity tariffs, and meeting customers where they are infrastructure strategy. Our own research, testing supply industry. We are pursuing distribution agency through digital channels. Customer satisfaction based We reduced our absolute greenhouse gas emissions and development capability continues to explore the agreements, enforcing our rights through Promotion on internal measurements remained ahead of target during the year and improved our water efficiency, technologies – from clean-coal solutions to storage of Administrative Justice Act processes and supporting during the year, but I am not complacent – reliability but our relative particulate emissions deteriorated – that will enable Eskom to remain efficient and National Treasury’s interventions, including the recent for our large industrial customers and the quality of at several older stations; focused recovery plans competitive as the industry evolves. temporary withholding of the equitable share from our service remain areas of intense focus. In response are already delivering improvement, with emissions non-compliant municipalities. Encouragingly, the City to the qualification by the external auditors of one performing within target in the latter half of the of Johannesburg has recently settled its arrears in of our customer service measures, we have already year. We continue to invest in emission-abatement full, and the Eskom Restructuring Task Team (ERTT) made changes to improve the reliability of customer- has proposed a dedicated workstream to develop related performance indicators. structural solutions to this challenge. 16 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Chief Executive’s review continued Digitalisation and artificial intelligence have moved ESTABLISHING ESKOM GREEN The audit recovery programme, designed for a I want to thank our stakeholders – Government, to the centre of our agenda – from predictive A defining highlight since my previous review – three-year period and currently halfway through, our shareholder, regulators, lenders, customers, maintenance and fraud detection to smarter grid indeed, one of the most significant milestones of continues to strengthen our control environment as communities and organised labour – for walking this operations and an enhanced customer experience my tenure – was the launch of Eskom Green on we work towards an unqualified audit and the timely road with us to this point, as Eskom stands at the – underpinned by a strengthened cyber-security 9 June 2026 as a dedicated, wholly owned renewable publication of our annual results. Calib elaborates on threshold of a new era. posture. We recorded no critical cyber-security energy business, with the requisite approvals secured this in his report. incidents during the year; we continue to modernise shortly thereafter. We have demonstrated that, even in the face the legacy systems that remain our greatest area of Eskom’s recovery cannot be measured only in of adversity, we can adapt, innovate and deliver. exposure. This is a pivotal step in our transformation. For years, megawatts, revenue or profit, it must also be The delivery of our strategy shows that Eskom Eskom was a spectator in South Africa’s renewables measured in trust. We rebuild trust when we is sustainable and investable. But we are keenly These capabilities are no longer optional; they are the market; Eskom Green changes that decisively. It gives strengthen controls, act transparently, deal decisively aware that the country depends on us to deliver foundation of the modern, market-ready utility that us the agility, funding flexibility and partnership- with wrongdoing and show that public resources are with a sense of urgency, and we cannot let our Eskom is becoming, and a key enabler of the flexibility based delivery model that renewable development being managed responsibly. collective focus slip. We will keep recovering our evolving generation mix demands. demands, and – crucially – a ring-fenced platform to generation performance, strengthening governance attract private and concessional capital while limiting REBUILDING TRUST WITH OUR and combatting criminality and misconduct, while Market reform and the Eskom of the future recourse to Eskom’s balance sheet. Its initial pipeline STAKEHOLDERS future-proofing the organisation for energy security, The transformation of the electricity supply industry of 17 high-priority projects across our existing power- Eskom’s reputation, damaged by years of poor affordability, growth and long-term sustainability – for is well underway. As Mteto highlights, we support the station footprint is expected to make around 6GW performance, is being restored through transparent South Africa and the wider region. establishment of an independent Transmission System of carbon-free electricity available by 2030, with an communication, proactive engagement and the Operator (TSO) in a way that also protects Eskom’s ambition of up to 32GW by 2040 as part of delivering delivery of tangible results. Media sentiment has I am grateful to the Board, both past and present, financial sustainability and our lenders. We are against the country’s Integrated Resource Plan. remained predominantly positive over the past year, and to our Chairman, Mteto Nyati, for their steadfast working constructively with the ERTT to determine supported by the sustained absence of loadshedding, guidance; to Minister Ramokgopa, NECOM and the the most appropriate and orderly implementation By repowering and repurposing our coal-station visible operational recovery and reported progress whole of Government for their partnership; and, approach to achieve these complementary goals. sites, Eskom Green also anchors a just transition for against criminality and misconduct. above all, to every Eskom Guardian whose dedication the communities that have powered this country for has powered our turnaround. The competitive wholesale electricity market took generations – ensuring that the shift to cleaner energy We recognise that stakeholder trust is both important steps forward, with the deferral of the creates opportunity rather than hardship. It positions a privilege and a responsibility. This year, our The journey ahead will demand continued focus, full external launch of the trading platform to the Eskom, at last, as an active and credible leader in engagement priorities shifted – from the immediate agility and support from all our stakeholders. Our latter half of FY2027 reflecting a disciplined decision South Africa’s renewable future. concern of keeping the lights on towards the harder strategy is ambitious but grounded in reality, and as to build on a credible foundation rather than a questions of affordability, financial sustainability we have shown this past year, it is achievable. When loss of momentum. We continue to advocate for STRENGTHENING GOVERNANCE AND and reform delivery. We are listening, and we are we work together, we will continue to power South a rules-based transition, with clear market codes, FIGHTING CRIMINALITY AND MISCONDUCT responding, because our social licence to operate Africa’s growth and, in so doing, create a legacy of grid-access rules and pricing, because an unregulated None of our progress is sustainable without integrity. depends on it. reliability, sustainability and excellence. market would serve no one; more than that, it would We have strengthened governance, internal controls ultimately harm the most vulnerable customers. and consequence management, and intensified the Restoring trust is a privilege and a responsibility, and Because if it is to be, it is up to us! fight against criminality and misconduct, including we remain committed to transparent communication Eskom is, at its core, a skills-based engineering through the launch of the Raptor Fusion Centre in and visible action. organisation, and what drives us is delivering certainty February 2026 and recent convictions in high-profile – certainty of supply for our customers, and certainty CREATING A FUTURE-READY ESKOM matters such as the Kusile corruption case. We also of rules for the industry. Many of the reforms we are Improved performance must become structural in continue reducing forensic investigation backlogs Dan Marokane pursuing require policy and regulatory change, which support of the transformation, not only of Eskom, by strengthening internal and external forensic Group Chief Executive is why we cannot do this alone. but also of the electricity supply industry. We cannot resources. We have blacklisted 101 suppliers for afford to treat the easing of loadshedding as the end wrongdoing through our supplier review process and We are deeply grateful for the collaboration with the of the journey. The real test is whether Eskom can dismissed 15 employees following the outcomes of Minister of Electricity and Energy, NECOM and the sustain plant performance, strengthen transmission forensic investigations. whole of Government, whose partnership has been and distribution networks, continue improving indispensable. Consequence management requires more consistent customer service and, ultimately, deliver consistent, and timely execution – governance, integrity and reliable and cost-effective electricity in accordance Reform, done well, is not a threat to Eskom; it is the with our mandate. transparency remain fundamental to everything we opportunity to secure our long-term relevance. are trying to achieve. 17 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Chief Financial Officer’s commentary The group delivered a profit before tax of None of these will yield to a single intervention. Each simultaneously. Operations sit at the centre of all four, R39.4 billion (2025: R21.9 billion, restated) – demands disciplined execution, sustained over years because a financially sustainable Eskom must also be our second successive year of strong profitability rather than months. an operationally reliable one. – underpinned by a firmer EBITDA margin of 30.63% (2025: 28.75%, restated). A 12.74% standard DELIVERING ON OUR FINANCIAL STRATEGY The objective may be straightforward but demanding tariff increase supported revenue growth, while Our financial strategy rests on four interdependent to deliver: improve the quality of earnings, strengthen an improved operating environment enabled real priorities: securing and enhancing revenue, driving operating cash flows and liquidity, and build a capital efficiencies and decisive cost discipline. As Dan structural cost efficiencies, optimising the balance structure that can support long-term investment sets out in the Chief Executive’s review, these are sheet and funding, and resolving municipal arrear debt. without leaning further on the sovereign balance meaningful results – but they are best understood as Success is dependent on all four pillars being executed sheet. evidence of momentum in our shift from recovery to stability on the road towards resilience, not as the end of the turnaround. The financial results for the year are set out under REVENUE SECURITY AND BALANCE SHEET Improve income statement “Condensed annual financial statements” from Strengthen balance sheet page 87. ENHANCEMENT OPTIMISATION Eskom is financially stronger than it was. However, it is not yet structurally sustainable. Operations Our ambition is clear: to achieve standalone investment-grade status without reliance on The most important lesson of the past two years is that operational and financial performance are two Government guarantees or financial support, sides of the same coin. When the generation fleet COST EFFICIENCIES MUNICIPAL DEBT REDUCTION creating enduring value for our shareholder, performs, when the production mix is optimised for our customers and for South Africa. and when we lean far less heavily on expensive open-cycle gas turbines (OCGTs), the financial CONVERTING RECOVERY INTO FINANCIAL benefit is immediate. Better operations reduce costs, Securing and enhancing revenue interventions for energy-intensive customers, flexible RESILIENCE strengthen cash flows and create the headroom Revenue remains a central focus. On the back of the load activation initiatives, emerging data centre When I look back on FY2026, I do so with a measure to plan properly – which, in turn, drives further approved tariff increase revenue grew during the year, opportunities, regional electricity trade, customer of pride, but also with a clear sense of the work that operational improvement. but sales volumes declined by 6.2% to 178TWh – a wheeling optimisation and Eskom Green offerings are still lies ahead. serious signal in the context of a longer-term decline all part of this strategy – because each helps us use This is the positive spiral we must protect. of roughly 2% per year. Demand from energy-intensive available capacity more productively, to recover our This was an important year in Eskom’s financial At the same time, the year highlighted the structural industrial smelter customers weakened materially costs and, over time, ease pressure on the tariff. recovery. The results show that improved operational constraints that will define the next chapter of under economic pressure, while embedded self- performance is translating into stronger financial South Africa’s revised Electricity Pricing Policy (EPP) Eskom’s financial journey: sales volumes are under generation continues to reshape how and when our outcomes and a more credible path towards financial may prove to be one of the most consequential pressure; the future tariff path remains uncertain; our customers draw power. The Mozal aluminium smelter sustainability – that is genuinely encouraging. But policy developments in recent years for the electricity debt servicing obligations remain significant; municipal entering care and maintenance in March 2026 removed I have learned, over more than two decades in sector. We will actively participate in the Department arrear debt continues to escalate; and the control a large, stable base-load customer from our planning this organisation, that Eskom’s recovery cannot be of Electricity and Energy’s consultation process environment and PFMA compliance need further assumptions, sharpening the urgency of the task. sustained through Government support alone. It must on its revised EPP and Electricity Sector Market strengthening. be earned – through reliable operations, improved We recognise that tariff increases alone cannot secure Transformation Position Paper, which were published revenue collection, disciplined cost management and Eskom's future. in August 2026, as the outcome will have profound stronger cash generation. implications for the long-term revenue model of We must retain strategic customers, recover load the electricity supply industry, affecting the financial where it makes commercial sense, develop new sustainability of the sector as a whole. sources of demand and grow revenue streams that are not dependent on the regulated tariff. Targeted The ultimate goal is to deliver consistent, reliable and cost-effective electricity for South Africa. 18 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Chief Financial Officer’s commentary continued Preparing for MYPD 7 – to determine Eskom’s Optimising the balance sheet and funding We must keep investing in the infrastructure needed Encouragingly, the improvement in Eskom’s allowable revenue from FY2029 – within the context Government’s debt relief support has been a critical to sustain operational performance and support the performance was cited by rating agencies as a of the revised EPP will be one of the most important enabler of Eskom’s improved financial position over future electricity market, while remaining disciplined contributing factor to South Africa’s sovereign finance priorities in the year ahead. NERSA’s revenue the past few years. about affordability, execution capacity and funding. credit rating upgrade – a reminder that when Eskom determination must be robust, evidence-based Our annual capital expenditure programme is set to strengthens, so does the country. and aligned to Eskom’s future operating model, our The R80 billion received in March 2026 strengthened grow from R45 billion in FY2026 to over R70 billion unbundling and the evolving market framework. liquidity and helped us meet significant debt from FY2029, with total capital investment targeted at This return of confidence – alongside the carefully It must also support a tariff path that is more obligations. It was recognised as a shareholder loan an upper limit of R343 billion over the next five years. sequenced reforms that Dan describes in the Chief predictable and cost-reflective, while recognising the at year end and approved for conversion to equity Executive’s review – is central to our eventual return very real affordability constraints facing households, by the Minister of Finance in August 2026, further Every rand invested must support system reliability, to the capital markets. But our ratings remain below businesses and industry. strengthening the group’s capital structure. future revenue, network resilience, environmental investment grade. The next phase must demonstrate compliance, renewable energy development or long- that Eskom can sustain performance, reduce credit The MYPD 6 determination and the reviews that Eskom’s debt balance, excluding shareholder loans, term strategic growth opportunities. risk and progressively strengthen its financial followed demonstrated just how much regulatory reduced by 4.4% to R356.2 billion by year end; it is independence without relying indefinitely on the certainty matters – not only for Eskom, but for on track to reach a more sustainable level of around Our FY2027 Corporate Plan provides for a funding sovereign balance sheet. customers, investors and the entire electricity R300 billion over the next five years. programme of around R88 billion over the next five supply industry. years, including drawdowns from existing facilities The most immediate threat to that objective remains The debt relief package gave Eskom time to recover, and planned new debt from FY2028, subject to the escalating municipal arrear debt. Moving towards transparent and unbundled tariffs is and we have used that breathing room wisely – to affordability and market conditions. The initial necessary for unbundling, for market reform and for stabilise operations and finances. As the debt relief R25 billion tranche of new debt targeted for FY2028 Resolving municipal arrear debt better investment decisions. It is foundational to the programme draws to a close, the next chapter will be is being pursued through active engagement with Escalating municipal arrear debt threatens to undo future structure of the industry – far more than just a defined by sustaining the recent gains in operational lenders. We are also developing an ESG funding our hard-won progress and, if not resolved, to pricing matter. performance, generating stronger operating cash framework to support green and sustainability- nullify the benefits of Government’s debt relief flows, allocating capital carefully and raising cost- linked financing; we are exploring alternative funding package. Municipal arrear debt increased by 17.9% Driving structural cost efficiencies effective funding on a standalone basis without structures and private sector partnerships that can to R111.6 billion at year end, escalating further to Cost discipline is the second part of the equation. Government guarantees. mobilise capital without placing undue strain on the R119.9 billion by June 2026. balance sheet. Containing our cost base and diversifying revenue We are engaging National Treasury on the post-debt This is clearly unsustainable. We cannot be a bank to are both essential to limiting upward pressure on relief period to support effective financial planning This is a delicate balance. Eskom must return to the municipalities. electricity prices and supporting a more affordable, and Eskom’s eventual return to the capital markets. capital markets to fund critical infrastructure, but it predictable tariff path. The Cost Optimisation Municipalities are our single largest customer must do so at a pace and cost the balance sheet can and Revenue Enhancement (CORE) programme Cash and cash equivalents rose to R124.9 billion at segment, and persistent non-payment directly erodes support. The objective is to secure appropriately continued to build a more disciplined approach to year end. This must not be interpreted as surplus the revenue, cash flows and liquidity on which the structured funding for investments that strengthen cost savings and revenue, reinforced by operational cash: a significant portion was earmarked for the whole electricity supply industry depends. We have system resilience, generate sustainable value and gains. During FY2026, the CORE programme settlement of the ES26 bond shortly after year end pursued every lever within our control – payment support our long-term financial sustainability. delivered R22.4 billion in savings and revenue and other debt servicing obligations, as well as for arrangements, enforcement of our legal rights and contributions, exceeding its R21 billion stretch target. decommissioning activities and clean energy projects. The improvement in our operational and financial processes under the Promotion of Administrative CORE is now identifying further opportunities to position has been recognised by credit rating Justice Act to limit or terminate supply – while More pertinent is that FY2026 was the second supporting municipalities through National Treasury’s support a sustainable EBITDA margin of around 30% agencies. S&P upgraded Eskom’s foreign and local consecutive year in which operating cash flows municipal debt relief programme and distribution over the next five years. currency ratings to B+ with a stable outlook; Fitch were sufficient to fully fund our capital expenditure agency agreements (DAAs). upgraded our local currency rating to B+ with a Our firm intention is that we institutionalise programme. Sustaining this position is critical – stable stable outlook; and Moody’s affirmed our ratings at cost discipline as a permanent way of operating, liquidity gives Eskom the ability to plan, invest and B2 with a stable outlook. These actions reflect the embedding these efficiencies in how Eskom plans, execute with far greater confidence. stronger operational performance and a stabilising procures, operates and measures performance. financial position, based on the support provided through Government’s debt relief package. 19 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Chief Financial Officer’s commentary continued The DAA model matters because it addresses The quality of Eskom’s financial recovery also The FY2026 audit required particular focus on asset The shareholder has approved the Board’s preferred the root causes of non-payment: improving depends on the quality of its controls, compliance and impairment and going concern. These assessments candidate for Group Chief Financial Officer, with revenue management, reducing energy losses reporting. were stress-tested against tariff uncertainties, contract negotiations underway. My responsibility and strengthening municipal electricity service industrial customer pressure, municipal arrear debt now is to support a smooth handover and to ensure delivery. But, as Mteto emphasises in the Chairman’s The independent auditors issued a qualified opinion challenges and the broader operating environment, that the finance function remains steady, disciplined statement, this is a systemic challenge that Eskom relating to the completeness of irregular expenditure requiring management and the Board to weigh not and firmly focused on the work ahead. cannot resolve alone. It requires stronger municipal reported in line with the PFMA. While I remain only current performance but also the long-term accountability, continued support from National disappointed that the long-standing qualification sales outlook, tariff assumptions, expected future Financial sustainability is not achieved in a single Treasury and coordinated action across Government. has not yet been resolved, I am encouraged by the cash flows, capital requirements and Eskom’s role in a year; it demands continuity, resilience and consistent In an important step, National Treasury invoked progress made during the year, with the qualification changing market. execution over time. section 216(2) of the Constitution in July 2026 to no longer extending to the accuracy of irregular expenditure reported or to losses due to criminal We remain confident that emerging demand I am proud of what we have achieved – Eskom has temporarily withhold quarterly equitable share conduct. The remaining qualification will continue to opportunities and broader economic development made tremendous strides in its recovery – but the transfers from 69 non-compliant municipalities to receive the focused attention it deserves through the initiatives support the recoverable value of our assets. next phase will demand just as much focus, because strengthen payment discipline. audit recovery programme. it asks us to convert recovery into transformation. The cost of inaction extends well beyond revenue The going concern assessment considered potential We must prepare a credible MYPD 7 application, and cash flow: unresolved municipal arrear debt Except for this qualification, the financial statements future obligations and downside scenarios, including a support tariff reform, grow sales, strengthen PFMA undermines Eskom’s financial sustainability and are considered to be fairly presented in terms of IFRS prudent scenario relating to the World Bank-funded compliance and audit outcomes, resolve municipal directly constrains the legal separation of the Accounting Standards. Medupi flue gas desulphurisation project, which arrear debt at a structural level, fund critical Distribution business, placing the broader reform of is scheduled for completion after the deadline infrastructure, manage debt maturities with care and The audit recovery programme is strengthening contemplated in the loan arrangements. We continue rebuild Eskom’s standalone investment case. the industry at risk. In July 2026, President Ramaphosa audit readiness, documentation, control execution to engage constructively with the World Bank, which endorsed the Phase 1 report of the Eskom and PFMA compliance. This is not a finance-only has indicated that it will undertake a mission review These results show that Eskom can improve. The Restructuring Task Team, chaired by the endeavour. Sound financial reporting depends on by the third quarter of FY2027 to assess progress, challenge now is to prove that Eskom can sustain that Director-General of National Treasury, which disciplined processes across the whole of Eskom – mitigation measures and potential next steps. improvement under pressure. identified municipal arrear debt as a threat to Eskom every area that originates transactions, approves and to the broader electricity sector. That is how we reduce our reliance on the fiscus. procurement, manages contracts, maintains records Even under a worst-case scenario, assuming early or implements controls contributes to reporting repayment of the relevant facility, the going concern That is how we rebuild investor confidence. That is We will continue to support Government’s integrity. position remained supportable. how we create the financial capacity to invest in the consolidated action plan to address municipal infrastructure South Africa needs. And that is how non-payment through stronger credit-control Improving our audit outcomes is therefore about FINAL THOUGHTS Eskom becomes a stronger, more resilient and more enforcement, the rollout of DAAs and smart meters, strengthening how Eskom operates every day, not As I prepare to step down as CFO in October 2026, accountable organisation for the future. together with stricter licence enforcement and merely how it prepares for the audit at the end of I do so with deep gratitude. I have served Eskom for much-needed municipal reform. the year. 24 years, including a year as acting GCE during one Strengthening finance, controls and audit of the most demanding periods in this organisation’s outcomes IR R  efer to “Reinforcing controls and assurance” history. Eskom has been central to my professional life, and it has been a profound privilege to serve an Calib Cassim Looking inward, our finance function itself must from page 58 for further detail on our audit Group Chief Financial Officer evolve – to support faster insight, better decisions, recovery efforts institution that matters so deeply to South Africa stronger governance and more disciplined execution. and to its future. I extend my heartfelt thanks to Work is underway to strengthen our finance my finance team for their commitment and support operating model, invest in new finance skills, advance during my tenure, as well as to the Board, Exco and digital transformation and finalise our integrated all Eskom employees for their unwavering dedication financial strategy. Together, these will improve agility, which continues to sustain this organisation. capability, efficiency, long-term planning and financial governance across the group. 20 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reflecting on our operating context The past year marked a defining period for Eskom, as Despite this progress, we continue to face structural we moved from stabilisation towards transformation. challenges. Tariffs, although improved through the Globally, the energy sector continued its transition resolution of MYPD 6 (the sixth multi-year price along the four D’s – decarbonisation, digitalisation, determination by NERSA), remain below the level decentralisation and democratisation – even as required to fully fund the business; electricity sales geopolitical volatility tested global fuel supply and are under pressure from wide-scale embedded prices. The military conflict between the United generation and hardship experienced by industrial States and Iran early in 2026 disrupted key oil customers; and municipal arrear debt has continued and gas transport routes before easing and then to escalate. We are responding through a range of resuming, a reminder of how easily external shocks initiatives – among them the launch of a dedicated can affect global supply chains. At the same time, the renewable energy subsidiary, Eskom Green; tailored accelerating electrification of economies and the rapid pricing to retain large industrial demand; a disciplined growth of artificial intelligence (AI) and data centres Cost Optimisation and Revenue Enhancement are reshaping electricity demand worldwide, creating (CORE) programme; and the continued restructuring fresh opportunities for utilities willing to adapt. of the industry coupled with market reform. Domestically, the continuity of South Africa’s The evolution of the industry is a priority focus for the Government of National Unity (GNU) sustained Board – it is critical that the evolution is carried out a stable policy environment and a shared focus on in a manner that is not detrimental to Eskom’s future energy security, reform and economic recovery. sustainability or that of the South African electricity South Africa is now navigating two distinct but deeply value chain. The most significant recent development interconnected transitions: the liberalisation of the is the work of the Presidency’s Eskom Restructuring electricity supply industry from a vertically integrated Task Team (ERTT), which is shaping the establishment single-buyer model towards an unbundled, multi- of an independent Transmission System Operator market structure, as well as the green transition from (TSO) and a focused programme of work on financial a fossil-fuel-dominated, centralised generation base sustainability, municipal debt and our obligations to towards a lower-carbon, more decentralised energy lenders. mix. These parallel journeys shape Eskom's strategic context and demand a coherent, dual response that safeguards security of supply, protects affordability and unlocks a competitive future for the organisation. Against this backdrop, Eskom entrenched its operational recovery: generating plant availability improved to 65.16% for FY2026 (2025: 60.60%) and the country reached 365 consecutive days without loadshedding in May 2026. The Board-approved 3 Corporate Plan for FY2027, submitted to the shareholder and National Treasury in February 2026, captured this shift from short-term recovery to long- term transformation. It is anchored in four strategic objectives – pursuing financial and operational 21 Reflecting on our operating context sustainability, positioning Eskom as an energy-sector 27 Evolving our strategy leader, modernising the power ecosystem and driving a just and inclusive energy transition. 31 Mitigating risk and maintaining resilience 36 Connecting with stakeholders 40 Identifying key topics 21 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reflecting on our operating context continued GLOBAL AND REGIONAL CONSIDERATIONS Decentralisation is reshaping generation, network on critical minerals – including copper, manganese and THE FOUR D’S planning and customer behaviour. Energy systems are lithium – also carry cost and delivery risk for our grid- The global energy landscape continues to be shaped by the four D’s, which are redefining how utilities operate, becoming more distributed, with localised generation expansion, storage and renewable programmes. invest and engage with customers. These forces are increasingly influenced by a more volatile and complex – such as rooftop solar and microgrids – gaining geopolitical environment, which affects both the pace of the transition and the security of the supply chains on ground as customers seek energy independence AFRICAN ENERGY OUTLOOK which it depends. and resilience. In South Africa, installed behind-the- Africa’s energy landscape is undergoing a profound meter solar PV capacity is now estimated at around transformation, driven by the twin imperatives of 9.1GW, a structural shift that both reduces demand expanding access to electricity and transitioning to D1 D2 D3 D4 cleaner sources. The continent is emerging as a future on our network and requires us to modernise the grid for bidirectional flows. Decentralisation is also renewables powerhouse: renewable generation Decarbonisation Digitalisation Decentralisation Democratisation reached an estimated 221TWh, or around 24% of expanding generation beyond traditional hubs such as Cleaner mix; country- AI, data centres and Distributed, near- Prosumers, IPPs and Mpumalanga to the Eastern Cape, Western Cape and total generation, in 2024, and is forecast to grow to specific transition smart grids reshape consumption customer choice Northern Cape. some 301TWh, or 28%, by 2027. Interest in nuclear pathways demand generation grows expand energy is also rising, with generating capacity on Democratisation is empowering communities and the continent expected to increase by close to 60% consumers to participate in energy generation by 2030 compared to 2022 levels and expected to and choice. The rise of wheeling, corporate power expand tenfold by 2050. Gas remains an important purchase agreements and community-based transitional fuel supported by regional partnerships Decarbonisation remains the dominant force reshaping Notwithstanding these headwinds, low-emission generation is creating a more competitive and such as that with Sasol. the sector. The shift towards carbon-efficient energy sources are forecast to account for around 47% customer-driven marketplace. For Eskom, this requires diversifying revenue streams, developing Africa nonetheless remains the region with the sources is advancing, supported by technological of global electricity generation by 2027, with solar dynamic pricing and expanding our products and lowest electricity consumption per person, and innovation, the declining cost of renewables and photovoltaic (PV) and wind making up roughly services – including renewable energy, wheeling demand is projected to more than double by 2050 increasingly stringent environmental regulation. two-thirds of new generation projects planned to and self-generation solutions – to retain and grow on the back of population growth, urbanisation and Successive climate conferences – COP28, COP29 2030. For Eskom, this global direction is mirrored our customer base in a liberalising market. Tariff economic development. Realising this potential will and, most recently, COP30 – have reaffirmed the domestically in the Integrated Resource Plan 2025 restructuring will also be required to ensure all role require large-scale investment in generation and grid goals of the Paris Agreement and kept the 1.5°C (IRP), against which we are aligning our long-term players pay their fair share of system costs. infrastructure, stronger regional trade mechanisms target in view, while emphasising climate finance, grid generation outlook while pursuing a transition and enabling regulatory frameworks. investment and energy storage. In practice, however, pathway suited to South Africa’s context. A MORE VOLATILE GEOPOLITICAL progress remains behind stated commitments, and For Eskom, these developments present both Digitalisation is accelerating: technologies such as AI BACKDROP the pace and shape of the transition are diverging opportunity and responsibility. Our position as one and predictive analytics are enabling smarter grid Global energy security was tested sharply during the across countries. The outcomes of South Africa’s 2025 of the continent's largest utilities, responsible for management, operational efficiencies and improved year. The conflict between the United States and Iran, G20 Presidency reinforced this reality: there was no approximately 20% of the electricity generated in forecasting, with the global digital-transformation which began in late February 2026, disrupted key consensus on a common energy-transition pathway, Africa, allows us to participate meaningfully in shaping market expected to grow at close to 25% annually to maritime routes, with volumes through the Strait of with members instead advocating approaches suited the continental energy landscape while benefiting 2030. The most striking demand-side development Hormuz – a critical passage for global oil and liquefied to their own national circumstances, development from the growth in regional interconnection and is the rapid expansion of data centres driven by natural gas – collapsing by more than 95% and driving priorities and energy endowments. trade. As a leading participant in the Southern cloud adoption and AI workloads; global data- extreme volatility in Brent crude prices. For a power system that relies on liquid fuels to start up units African Power Pool (SAPP), we are strengthening Geopolitical shifts have added to the uncertainty. centre electricity demand is expected to more than after outages and to power open-cycle gas turbines cross-border trade – reflected in strong international The withdrawal of the United States from key climate double by 2030. This represents both a challenge for (OCGTs) during periods of system constraints, sales during the year – and are developing a regional commitments has disrupted global climate-finance system planning and a genuine new-market revenue this reinforced Eskom’s exposure to fuel-price and transmission interconnectors masterplan to position flows, although continued support from the European opportunity for Eskom, which is developing a pipeline logistics risk. A subsequent preliminary understanding South Africa as a regional energy hub, while managing Union and development partners has helped to of data-centre connections. These same technologies between the parties eased immediate concerns, but the payment and hydrology risks inherent in cross- offset this. The European Union's €4.7 billion green also heighten cyber-security and data-privacy risks, implementation remains at risk given a resumption in border supply. Given the challenges with local demand energy investment package to South Africa continues which we continue to manage as a strategic priority. hostilities. In response, we have maintained prudent and surplus generation capacity, the international to provide meaningful support, but the balance of fuel-stock levels, reviewed our diesel hedging, and market presents a significant opportunity to improve climate finance is shifting toward blended and private diversified the sourcing of critical spares and long-lead Eskom’s financial prospects while supporting capital, requiring utilities such as Eskom to rethink equipment away from Gulf routes. Related pressures economic growth for the region. how just-transition investment is mobilised. 22 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reflecting on our operating context continued THE SOUTH AFRICAN PERSPECTIVE The country reached 365 consecutive days without SOUTH AFRICA’S POLITICAL AND Economic conditions, while still constrained by COUNTRY-SPECIFIC PATHWAYS AND SOUTH loadshedding on 15 May 2026. Improved plant ECONOMIC LANDSCAPE modest growth and an unemployment rate of around AFRICA'S G20 PRESIDENCY availability, together with lower demand, has created The continuity of the GNU has sustained a more 32%, are showing signs of gradual improvement, A defining insight from South Africa's 2025 G20 an estimated surplus of around 2–3GW in the year stable policy environment, with energy security and supported by more positive sentiment from ratings Presidency – reinforced in engagements across G20 ahead – a risk to revenue and asset utilisation that reform remaining central to Government’s agenda. agencies. During the year Eskom received a credit- members – is that the energy transition must be requires careful management, but also an opportunity Nevertheless, the coalition nature of the GNU rating upgrade from S&P Global – from B to B+, our shaped by country-specific context. G20 economies to activate new demand. Sustained investment in continues to require proactive and transparent first upgrade in over a decade – together with a rating are following distinctly different pathways: China, generation and network infrastructure remains engagement across a broader range of political upgrade from Fitch and an affirmation from Moody’s, Spain, Australia, the United States and India are essential to entrench this recovery. actors and stakeholders. We have responded by all with stable outlooks. These actions reflect prioritising rapid renewables deployment with deepening our engagement with our shareholder, the improved operating performance and a stabilising On affordability, tariffs remain a critical concern Department of Electricity and Energy (DEE), as well financial position and, notably, coincided with South varying reliance on coal extension, gas exploration given rising unemployment, poverty and pressure as National Treasury, NERSA and Parliament, and by Africa’s first sovereign credit-rating upgrade in nearly and clean-coal technologies; France, Russia, the on the cost of doing business. Following the High ensuring that our strategic direction is aligned with two decades. Government’s continued support United Arab Emirates and South Africa are anchoring Court’s decision in December 2025 to decline the the shareholder's updated Strategic Intent Statement. remains important to this trajectory: Eskom received their transitions in nuclear base-load alongside R54 billion MYPD 6 settlement between Eskom and With municipal elections coming up in November R80 billion in March 2026 under the amended debt accelerating renewables; and countries such as Brazil NERSA as an order of court, and the subsequent 2026 and national elections in 2029, sustained policy relief package, taking total support received to R220 are leveraging existing hydro dominance to enable public consultation, NERSA subsequently approved continuity and cross-departmental coordination will billion, with a significant portion being applied to high renewable shares. an additional R54.7 billion in allowable revenue, to be critical to the successful execution of the country's settling debt maturing early in April 2026 as part of a For South Africa, this affirms an approach that be recovered through the tariff over several years. energy reform agenda. disciplined deleveraging strategy. combines accelerated renewables deployment with This translates into standard increases of 8.76% for dispatchable nuclear, gas, hydro and storage capacity FY2027 and 8.83% for FY2028 – outcomes materially to safeguard security of supply and grid stability. It lower than in prior years. While welcoming the also reinforces that decisions on technology mix, improved certainty, we remain acutely conscious pace of coal-fired station shutdowns and transition of affordability and have introduced tailored pricing financing must reflect our unique socio-economic arrangements to retain large industrial customers context – marked by unemployment above 32%, a such as ferrochrome smelters which otherwise faced Gini coefficient of 0.63 and more than 40% of the closure due to economic hardship, which would leave population living below the upper poverty line – Eskom with underutilised assets and facing penalties rather than being imported wholesale from advanced on take-or-pay coal supply agreements. A subsequent economies with materially different starting points. application by AfriForum to review the R54.7 billion determination was struck off the roll in July 2026 after South Africa’s energy landscape continues to be NERSA issued its reasons; there was no retrospective defined by the challenge of balancing the energy effect on tariffs already in place. trilemma – ensuring energy security, affordability and environmental sustainability – within a constrained On sustainability, South Africa remains committed to economy. While the country has made real progress reducing greenhouse gas emissions to between 350 in stabilising supply and advancing reform, structural to 420MtCO2e by 2030, in line with a net-zero target constraints and socio-economic pressures persist. by 2050. The electricity sector, which contributes more than 40% of national emissions, is central to THE ENERGY TRILEMMA achieving these targets. The Climate Change Act, On security of supply, the sustained implementation 2024 introduced mandatory carbon budgets and of our generation recovery efforts delivered a marked progressive emissions targets, and we are engaging improvement in plant performance – with the Government on the draft carbon budget regulations energy availability factor (EAF) rising to 65.16% for to ensure that their design is practical, legally sound FY2026 (2025: 60.60%) – and the return of significant and financially sustainable for Eskom while supporting capacity from extended outages at Medupi, Kusile the national ambition. and Koeberg, with both units at Koeberg securing a 20-year life extension. 23 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reflecting on our operating context continued THE TWO PARALLEL TRANSITIONS A cornerstone of the reform is the establishment of ADAPTING OUR BUSINESS MODEL AND NTCSA has traded as a wholly owned subsidiary The transformation of the electricity supply industry an independent, state-owned TSO outside Eskom, RESPONDING TO MARKET REFORM of Eskom since July 2024, and the implementation advanced meaningfully during the year, driven by as required by the ERAA and reaffirmed by the As the industry evolves, we must transform our due diligence for the NTCSA and TSO structure the implementation of the Electricity Regulation President. The TSO will own the transmission assets business model to remain competitive and sustainable. has been completed. The next phase focuses Amendment Act, 2024 (ERAA), the publication at the appropriate point in the future and will report Our unbundling remains central to this journey, and in on operationalising the TSO before its legal of the Integrated Resource Plan (IRP 2025), the directly to the DEE. Its purpose is to enable equitable December 2025 the Minister of Electricity and Energy incorporation and separation, when it will report to operationalisation of the Market Operator and the access to the grid, strengthen market confidence and approved a refined end-state and unbundling strategy DEE. The functional separation of the distribution accelerating penetration of distributed and utility-scale attract investment, thereby supporting a reliable, that sets out the pathway to complete legal separation business is underway, together with the establishment renewable generation. cost-effective and competitive electricity system. of the remaining businesses. of a trading capability, ahead of the commercialisation Eskom is aligned to the direction set out by the of NEDCSA. The legal separation of Distribution, LIBERALISATION OF THE INDUSTRY President to strengthen the independence of the TSO The strategy introduces a new Eskom holding however, cannot proceed until a sustainable solution The South African electricity supply industry is based on the ERTT Phase I report, but it is critical company (NewCo) with four subsidiaries – a to municipal arrear debt is achieved, as this is undergoing fundamental change, moving from a that the implementation recommendations around generation company (GxCo), NTCSA, NEDCSA necessary for the business to satisfy the required vertically integrated, single-buyer model towards restructuring are legally sound, financially viable and Eskom Green – alongside the independent liquidity and solvency tests to obtain lender consent a competitive, market-based system. This and feasible, while mitigating risk to Eskom and the TSO. Throughout, the design is grounded in three for the separation. The establishment of NewCo and transformation is driven by structural reform, policy broader electricity sector. We continue to engage principles: safeguarding Eskom’s financial sustainability, the legal separation of the Generation business are innovation and the need to ensure long-term energy with the ERTT and NECOM to determine the most protecting energy security and grid stability, and both dependent on enabling legislation, on which we security and sustainability. We are both participating appropriate and orderly implementation approach. enabling a just and inclusive transition. continue to engage the shareholder. in and enabling this transition, which is reshaping the roles of generators, network operators, traders and The establishment of an independent TSO is consumers. The reformed electricity supply industry – target end state a material event for Eskom’s lenders and must be implemented in a manner that protects the In his State of the Nation Address on organisation’s financial sustainability. It is against this 13 February 2026, President Cyril Ramaphosa Independent TSO New Eskom holding company (NewCo) background that Eskom welcomes the Phase I work reaffirmed Government’s commitment to the Reports to the Department of Electricity of the Presidency’s ERTT and supports the delivery Reports to the Department Energy Action Plan and, importantly for Eskom, to and Energy of Government policy to establish an independent, of Electricity and Energy establishing an independent TSO – marking a decisive Asset ownership state-owned TSO. Importantly, the ERTT’s Phase I shift from design to execution. The National Energy and lender interests report emphasises that the TSO should be established Crisis Committee (NECOM) continues to coordinate safeguarded NTCSA in a way that addresses lender requirements, avoids GxCo implementation of Government’s Energy Action Plan, Transmission assets, defaults and ensures that Eskom is not placed in while the ERAA has moved decisively from legislation Coal, nuclear, system and market a worse financial position, while appropriately into execution. peaking, flexibility operator considering shareholder rights and interests. These Eskom Restructuring considerations are essential to maintaining Eskom’s In support of these objectives, Eskom has made financial sustainability and to supporting a stable and considerable progress on Government’s Roadmap Task Team (ERTT) NEDCSA Eskom Green orderly transition. to restructure the industry and the objectives of the Reports to the ERAA. Key achievements and contributions include Distribution and Renewables, storage, Department of Electricity functional separation of Generation, Transmission trading (TraderCo) repowering and Energy and Distribution operations in 2021, establishing the National Transmission Company South Africa (NTCSA) as a separate subsidiary of Eskom in 2024, and obtaining NERSA's approval for the grid capacity allocation rules and Electricity Market Advisory Forum. Moreover, reforms have been supported by improvements in generation performance, which have led to a consistent reduction in loadshedding. 24 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reflecting on our operating context continued As our Chairman Mteto Nyati has noted, the Board Eskom continues to advocate for a rules-based THE GREEN TRANSITION These developments are reinforced by an evolving shares the President’s vision of an independent transition that provides for legacy-cost recovery, The gazetting of the IRP 2025 in November 2025 legislative landscape, including the Climate Change TSO that will own the transmission assets at the hedging arrangements, pricing transparency, non- was a significant milestone, providing much-needed Act, 2024 which introduced mandatory carbon appropriate point in the future, while retaining a clear bypassable charges, a retail market code and a retailer- certainty for the industry’s planning landscape. The budgets; the Public Procurement Act, 2024 which fiduciary responsibility to ensure that Eskom remains of-last-resort framework. These rules are essential to plan sets out a dual-horizon approach – addressing promotes localisation and transformation; and the financially sustainable so that energy security can avoid distorted price signals, settlement disputes and capacity constraints to 2030 and building a resilient, Expropriation Act, 2024 which enables accelerated continue to power South Africa’s growth. For this undue financial exposure as the market opens. lower-carbon sector to 2050 – and signals more than servitude acquisition for transmission infrastructure. reason, we support a pragmatic, carefully sequenced 114GW of new capacity by 2042. Of the 32GW of Together, these signal a decisive shift towards a approach with clear stage gates. Phase II of the EXPANDING AND MODERNISING THE GRID new capacity that the IRP envisages by 2030, around liberalised, investment-friendly and sustainable reform process focuses on financial sustainability, A competitive market and higher levels of renewable 22GW comprises wind and solar PV, complemented electricity sector, in which Eskom’s ability to adapt will municipal debt and our obligations to lenders, with energy both depend on a stronger transmission by 6GW of gas and 4GW of storage. This improved determine its continued relevance. a dedicated workstream to develop solutions to network. The 2024 Transmission Development Plan predictability enables us to accelerate our own municipal arrear debt, which has reached R119.9 billion (TDP) highlighted the need for around 14 500km of capacity development across renewables, gas, nuclear ESTABLISHING ESKOM GREEN by June 2026 and remains critical to our long-term new transmission lines by 2034, requiring the build and storage. A defining milestone of our response to the green financial sustainability and our ability to meet existing rate to accelerate from an average of about 300km a transition was the launch of Eskom Green on obligations. year to close to 1 450km a year. NTCSA is responding Over the longer term, the IRP 2025 envisages more 9 June 2026 as a dedicated, utility-scale renewable through innovative solutions – including “first ready, than 114GW of new capacity by 2042, anchored energy business. The required approvals under Successful reform and a financially sustainable first served” grid-allocation rules, curtailment in a diversified mix designed to balance the energy section 54(2) of the Public Finance Management Eskom are complementary objectives, and the frameworks to unlock capacity and the accreditation trilemma: Act, 1999 (PFMA) were secured in July 2026, implementation pathway for a fully independent TSO of international suppliers – and has established • Approximately 80GW of variable renewables by enabling implementation of Eskom Green as a will require careful engagement with lenders as it is long-term panels comprising 19 transmission-line 2042, comprising 43GW wind, 28GW solar PV and wholly owned subsidiary. The company will be developed. contractors and five transformer suppliers, for up to 9GW rooftop PV structured to provide the agility, funding flexibility 101 large transformers. Private-sector participation • Approximately 10GW of storage by 2042 to and partnership-based delivery model needed for The competitive wholesale electricity market took is being introduced through the Independent renewable development. Crucially, it offers a ring- decisive steps forward during the year. NERSA support the variability of renewables Transmission Projects (ITP) programme, with a first fenced platform to attract private and concessional awarded the market operator licence to NTCSA in • Approximately 18.3GW of gas-to-power to anchor phase of around 1 164km progressing to market and capital through project-financed special-purpose November 2025, and NTCSA's Market Operator energy security and support industrialisation a regional transmission interconnectors masterplan vehicles – improving bankability, limiting recourse to submitted the draft market code to NERSA in under development. • Approximately 5.2GW of nuclear by 2039, with Eskom Holdings’ balance sheet and reducing reliance February 2026 following two rounds of stakeholder the potential to expand to 10GW subject to a on Government support. consultation, with a final regulatory determination Execution against the TDP continues to unlock supporting Nuclear Industrialisation Plan anticipated during FY2027. The launch of the South capacity in constrained areas. Delivery pressures • Sustained generation plant availability of at Eskom Green’s initial pipeline comprises 17 high- African Wholesale Electricity Market (SAWEM) was persist, with 270.8km of transmission lines installed least 60%, rising to 70% by 2030, reflecting the priority projects across our existing coal-fired power- deferred from 1 April 2026 as originally envisaged to against a target of 423km for the year; management continued centrality of the coal fleet during the station footprint, leveraging established infrastructure the latter part of FY2027 to ensure that all regulatory, interventions are focused on strengthening transition to support faster deployment and grid resilience. operational and market-design elements – the procurement, contractor performance and project • A clean-coal demonstration pilot by 2030 to enable These projects are expected to make around 6GW of market code, vesting contracts, wholesale tariff and execution discipline. the continued use of coal with lower emissions carbon-free electricity available by FY2030 – including unbundled retail tariffs – are in place and aligned at least 2GW of renewable energy and pumped- to international best practice. We regard this as a The IRP 2025 embeds the expansion of rooftop PV storage projects advancing from FY2027 – with disciplined sequencing decision rather than a loss of and larger-scale private sector projects to support an ambition of up to 32GW of cost-competitive momentum: the day-ahead energy market, reserves decentralisation and electrification, and it recognises renewable energy and storage by FY2040. market and balancing mechanism were implemented the importance of delivering key repowering, reskilling for internal participation by Generation, Distribution and local economic development initiatives to ensure and NTCSA’s Central Purchasing Agency from that the energy transition is just. We have aligned 1 April 2026, providing a controlled environment for our long-term planning outlook with the IRP 2025 testing and refinement ahead of the full market launch. and are calibrating our clean energy pipeline, gas strategy, nuclear ambitions and grid expansion plans accordingly. 25 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reflecting on our operating context continued Eskom Green’s foundation phase focuses on large DRIVING IMPROVED PERFORMANCE We further strengthened governance and the fight the core interventions in place, but the matters with industrial customers in sectors such as mining During the year we entered a phase of stabilisation against criminality and misconduct, including through the greatest bearing on long-term sustainability – and manufacturing, offering renewable solutions and progress, marked by operational improvement the launch of the Raptor Fusion Centre, and secured resolving municipal arrear debt, advancing tariff and through bilateral power purchase agreements, with and strategic reform across the value chain. In labour stability through a three-year wage agreement pricing reform, securing timely legislative enablement pricing structured transparently so that customers Generation, the refocused Generation Reliability effective from 1 July 2026. On leadership, an orderly for unbundling, establishing a credible market- can distinguish clearly between the cost of energy and Sustainability Plan improved plant performance succession for the Group Chief Financial Officer is transition framework and ensuring proportionate and the cost of using the network. By repowering through better maintenance and the return of capacity underway ahead of Calib Cassim’s retirement at the climate regulation – are systemic and require and repurposing coal-station sites, Eskom Green from key stations, although performance remains end of October 2026, with the shareholder having coordinated support. also supports our just energy transition and the below the shareholder’s expectations and must still approved the Board’s preferred candidate; contract communities in which we operate. be entrenched. NTCSA continued infrastructure negotiations are underway and an announcement will Delivering on these, while positioning the reform of delivery under the TDP, while Distribution continued be made in due course. the industry with the care its significance demands, MANAGING THE EMERGENCE OF to modernise its network, expand smart metering and will determine whether the gains achieved to date STRUCTURAL OVERCAPACITY make progress in eradicating load reduction, targeting The central challenge for the period ahead is to translate into a stronger, more competitive Eskom and The combination of sustained improvements in elimination by March 2027. convert our hard-won operational recovery into a more stable electricity sector for South Africa. generation performance and the structural decline durable financial and structural recovery. We have in sales volumes has, for the first time in more than Financially, Eskom delivered a materially stronger a decade, given rise to estimated surplus capacity result, with FY2026 EBITDA of R108.6 billion and of between 2–3GW over the next year. While this profit before tax of R39.4 billion, underpinned by represents a marked reversal of the constrained improved generating plant availability, cost discipline system margins of recent years, it also introduces and lower reliance on OCGTs. Liquidity strengthened new risks to revenue and asset utilisation. Eskom's considerably, with cash and cash equivalents of sales volumes have declined by around 2% annually R124.9 billion at 31 March 2026, while the Cost over the past decade, driven by depressed economic Optimisation and Revenue Enhancement (CORE) conditions, embedded self-generation, energy programme delivered R22.4 billion in savings efficiency gains, wheeling and reduced demand from and revenue contributions, exceeding its target. energy-intensive industries. In FY2026, local sales Nonetheless, declining sales and escalating municipal dropped by around 10.5TWh, largely because of arrear debt continue to constrain revenue and remain curtailments by smelter customers, the closure of the central risks to our financial sustainability. Mozal aluminium smelter in March 2026 and slower- We responded through a comprehensive review than-anticipated demand recovery. of our strategy, culminating in the Board-approved We are responding decisively. Distribution is FY2027 Corporate Plan, and by advancing the executing a diversified sales-retention and demand- establishment of a wholly owned renewable energy activation plan, including negotiated pricing company, Eskom Green and the refined end-state for agreements to support ferroalloy and other smelter our unbundling programme. Our sustainability agenda customers, structural growth into data centres, focused on strengthening environmental compliance electric vehicle charging, wheeling optimisation, and advancing the just energy transition, with Eskom renewable power purchase agreements and flexible Green marking a pivotal step towards our net-zero load activation (including a Bitcoin mining pilot). These commitment. initiatives are targeted to stabilise sales at around 178TWh over the medium term, with the potential to grow beyond that as new products, services and customer segments come on stream. 26 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Evolving our strategy The previous section set out the external REPOSITIONING OUR STRATEGY At its heart, the strategy repositions Eskom from ALIGNMENT WITH THE SHAREHOLDER’S environment shaping Eskom. Here we explain how In response to this dynamic environment, we a traditional, vertically integrated monopoly into a STRATEGIC PRIORITIES we are responding – our strategic direction, our four undertook a comprehensive review of our strategy, resilient, future-ready utility able to confront these Our strategy is fully aligned with the priorities set strategic objectives and how we will measure success. culminating in the Board-approved FY2027 Corporate challenges, unlock new opportunities and secure out in the shareholder’s updated Strategic Intent Plan, submitted to the shareholder and National its long-term relevance by competing, collaborating Statement, namely: STRATEGIC CONTEXT Treasury in February 2026. The review reaffirmed and leading as a central participant in a restructured • Achieving universal access, together with the Our strategic direction is shaped by the convergence our strategic direction but sharpened our execution industry. availability, affordability and quality of electricity of global energy trends, national policy and industry – consolidating operational recovery, intensifying the This ambition is expressed through four strategic • Attaining sovereign and regional energy security reform, domestic energy-security imperatives and drive for financial sustainability and accelerating the our own transformation journey. As set out in our objectives, supported by a set of strategic enablers • Asserting South Africa’s leadership in the shift towards a competitive, low-carbon, customer- operating context, South Africa is navigating two and anchored in the shareholder’s Strategic Intent continental and global energy landscape centric future. It marks Eskom’s transition from short- distinct but deeply interconnected transitions: the term stabilisation towards long-term transformation. Statement, as illustrated below. • Driving industrialisation and leading sectoral liberalisation of the electricity supply industry (ESI) innovation from a vertically integrated single-buyer model • Transforming energy demographics by elevating the towards an unbundled, multi-market structure; and role of women and youth Our vision the green transition from a fossil-fuel-dominated, centralised generation base towards a lower-carbon, A resilient, future-ready utility that competes, collaborates and leads in a These priorities are embedded in our shareholder more decentralised energy mix. Together, these transformed electricity supply industry compact and guide the execution of the initiatives that demand a coherent, dual response that safeguards give effect to our strategic objectives. security of supply, protects affordability and unlocks a competitive future for the organisation. 1 2 3 4 OUR STRATEGIC OBJECTIVES Our strategy is designed to deliver measurable The past year presented a complex but pivotal outcomes over the medium term – improved moment in that journey. We made measurable Pursue financial and Position Eskom as an Modernise the power Drive a just and energy availability, expanded clean-energy capacity, progress in stabilising operations, strengthening operational energy-sector leader ecosystem inclusive energy reduced emissions and enhanced customer service our financial position and rebuilding stakeholder sustainability (Prepare for (Leverage technology) transition – underpinned by strong governance, effective confidence – reflected in a return to sustained plant (Fix the current business) competitiveness) (Transition responsibly) stakeholder engagement and ethical leadership. availability, our first credit rating upgrade in over a Building on the direction set in the prior year, we decade and materially stronger financial results. Yet • Generation • Complete • Expand and • A diversified, refined our four strategic objectives to reflect Eskom’s significant structural challenges endure, including reliability and unbundling and legal strengthen the grid balanced clean shift from recovery towards transformation. tariffs that remain below cost-reflective levels, security of supply separation • Smart metering and energy mix • Municipal debt and • Competitive digitalisation • A just transition The underlying intent is unchanged, but the emphasis is declining sales volumes, escalating municipal arrear revenue recovery Generation and • A flexible, future- for workers and sharper, and each objective now speaks more directly to debt and the imperative to decarbonise in line with • Cost discipline and Distribution models ready fleet communities the competitive, modernising industry we are entering: national and global commitments. Our strategy is deliberately designed to confront these realities while an investment-grade • New products, • Re-industrialisation Pursue financial and operational sustainability: stabilise positioning Eskom to compete, collaborate and lead in profile tariffs and markets and localisation operations, restore financial sustainability and embed the reformed industry. a high-performance, ethical culture Our commitment to sustainability is underpinned Strategic enablers Governance and leadership • People, culture and capabilities • Digital transformation and technology Position Eskom as an energy-sector leader: complete the by an environmental, social and governance (ESG) legal separation, transform our business model and Stakeholder engagement • Strategic delivery framework that is integrated into our Corporate Plan, ready the organisation for a competitive market operational priorities and performance metrics. This Aligned to the shareholder's strategic intent statement and Eskom's mandate supports our dual mandate of powering economic Modernise the power ecosystem: expand, digitise growth and delivering on our developmental role. and strengthen the grid to support decentralised ESG matters are addressed throughout our reporting resources and modern technologies suite, particularly in the sections dealing with governance, our interaction with the environment, Drive a just and inclusive energy transition: balance energy our people and the communities we serve. security, affordability and sustainability while ensuring no one is left behind 27 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Evolving our strategy continued These objectives are interdependent: they address immediate operational challenges, prepare Eskom for • Sustaining cost optimisation and revenue Alongside the structural reform, we are transforming structural reform and, ultimately, position the organisation for long-term sustainability in a transformed industry. enhancement under the CORE programme, and our business model to compete effectively. Each objective is being operationalised through the strategic repositioning of our core businesses – Generation, improving procurement efficiency Generation is evolving from a traditional base- NTCSA and Distribution – which will in time operate as distinct entities within a new Eskom holding company, • Achieving an investment-grade credit profile over load provider into a diversified energy player, alongside the independent Transmission System Operator (TSO). the medium term with a growing pipeline of flexible, clean-energy • Strengthening safety practices in pursuit of Zero solutions and the establishment of Eskom Green to Harm spearhead investment and innovation in renewables. Independent TSO Distribution, in preparation for NEDCSA, is building New Eskom holding company (NewCo) state-owned, outside • Embedding a high-performance, ethical culture a trading capability and customer-centric product set Eskom while supporting leadership stability, employee that will support decentralised energy, wheeling and development and reskilling for the evolving energy new services such as green-energy attributes and landscape demand-side management. We will apply to NERSA • Intensifying leadership accountability, internal for the restructuring of retail tariffs on cost-reflective controls and consequence management to combat principles to enable fair competition and lower the criminality and misconduct cost to serve, including for the industrial sector. GxCo NTCSA NEDCSA Eskom Green POSITION ESKOM AS AN ENERGY-SECTOR Our initiatives to prepare for competition include: Stabilise, diversify and Expand the grid and Customer-centric, Scale competitive, LEADER  PREPARE FOR COMPETITIVENESS • Completing the legal separation of the remaining decarbonise the fleet enable the competitive digitally enabled and utility-scale renewables As the industry liberalises, we are positioning Eskom businesses, subject to enabling legislation and a market financially sustainable to compete and lead in an increasingly open electricity sustainable resolution of municipal arrear debt to market. Our unbundling remains central to this satisfy the liquidity and solvency tests required for transformation. In December 2025, the Minister of Each business unit executes a tailored strategy within NewCo, alongside the Independent Transmission lender consent Electricity and Energy approved a refined end- System Operator • Scaling a competitive clean-energy pipeline through state and unbundling strategy, which introduces a Eskom Green, using public-private partnerships, new Eskom holding company with four subsidiaries private sector participation and project-financed – GxCo, NTCSA, NEDCSA and Eskom Green – PURSUE FINANCIAL AND OPERATIONAL Our immediate initiatives include: structures that limit recourse to Eskom’s balance alongside the independent, state-owned TSO. SUSTAINABILITY  FIX THE CURRENT • Sustaining generating plant availability towards the sheet BUSINESS 70% shareholder target over the medium term This strategy will be further refined to incorporate the • Advancing cost-reflective, unbundled and dynamic Our immediate priority remains to stabilise operations through the refocused Generation Reliability and outcomes of the Presidency’s Eskom Restructuring tariffs that improve pricing signals, strengthen and restore financial sustainability, laying a durable Sustainability Plan, by driving reduced unit trips and Task Team (ERTT), whose work is grounded in market positioning and enhance customer centricity foundation for long-term viability. This objective is improved outage execution safeguarding Eskom’s financial sustainability, protecting • Pursuing new revenue streams by developing anchored in disciplined execution of the Generation • Meeting environmental compliance obligations, energy security and grid stability, and enabling a just new products, services and customer segments, Reliability and Sustainability Plan, sustained cost including the Minimum Emission Standards, transition. including wheeling, renewable power purchase optimisation and revenue enhancement, and the while seeking exemptions where warranted and agreements and data-centre connections entrenchment of a high-performance, ethical culture advancing clean-coal research • Advocating a rules-based market transition – IR S ee also “Reflecting on our operating context – across the organisation. • Prioritising customer centricity and revenue including the market code, vesting contracts, Adapting our business model through unbundling” recovery by accelerating smart-meter deployment, from page 24 for a fuller account of the unbundling non-bypassable charges and a retailer-of-last-resort Despite the tangible progress over the past year improving payment levels across all customer end-state, the independent TSO and the work of the framework – to avoid distorted price signals and (discussed at the conclusion of the previous section), categories, reducing electricity theft and ERTT, including how the reform is being sequenced to undue financial exposure as the market opens systemic risks nonetheless persist. Municipal arrear progressively eliminating load reduction, targeted protect lenders and financial sustainability debt has continued to escalate, reaching around These reforms will enable Eskom to secure a for March 2027 R119 billion by June 2026, while inadequate tariffs, meaningful share of future capacity growth while declining sales volumes and the residual impact of • Stabilising and reducing municipal arrear debt by accelerating the rollout of distribution agency continuing to fulfil our mandate to provide reliable, criminality and misconduct continue to weigh on affordable and sustainable electricity. financial sustainability. We are addressing these agreements to defaulting municipalities and through the measures set out below, and through pursuing further solutions with National Treasury strengthened governance and consequence management, including the capabilities of the Raptor Fusion Centre. 28 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Evolving our strategy continued MODERNISE THE POWER ECOSYSTEM  Underpinning these efforts is our digitalisation Our priorities include: controls, advanced security technologies and rigorous LEVERAGE TECHNOLOGY strategy, which is deploying hybrid multi-cloud, • Accelerating a diversified clean-energy pipeline – consequence management are central to protecting The rapid growth of renewable and distributed the internet of things, advanced analytics and renewables, battery and hydro storage, as well as our assets, reducing financial leakage and reinforcing generation, together with changing patterns of strengthened cyber security across five priority areas: gas and nuclear – to deliver the capacity identified our social licence to operate. demand, is fundamentally reshaping how the power customer centricity, asset performance optimisation, in the IRP 2025 and secure our share of the future system must operate. Modernising the power smarter grid operations, integrated supply chain market PEOPLE, CULTURE AND CAPABILITIES ecosystem – across infrastructure, operations and management and an enhanced employee experience. Our transformation ultimately depends on our • Advancing repowering and repurposing projects at capabilities – is therefore essential to connect new people. The Eskom People Plan sets out a five-year Komati, Grootvlei, Camden and Hendrina, including Together, these initiatives will not only modernise our roadmap built on four priorities: embedding a high- generation, support decentralised participation and microgrid assembly, agriculture and training centres infrastructure but also position Eskom to lead in a performance, ethical culture; building critical and keep the system reliable as the industry evolves. that reskill workers and support local economic decentralised, digital and decarbonised energy future. future-ready skills; shaping a future-fit, productive Accordingly, we are accelerating investment in development network infrastructure, digitalisation and smart organisation; and positioning Eskom as an employer DRIVE A JUST AND INCLUSIVE ENERGY • Testing and developing clean-coal technologies to of choice. Our culture programme aligns employees technologies across the value chain. enable the lower-emission use of coal assets during TRANSITION  TRANSITION RESPONSIBLY around the cornerstones of accountability, people We are committed to supporting South Africa’s the transition prioritisation, operational excellence, financial The Transmission Development Plan (TDP) is being accelerated to alleviate grid constraints and enable transition to a low-carbon economy, in line with the • Expanding electrification and eMobility, including prudence, a values-driven culture and customer higher levels of renewable integration, complemented country’s commitments under the Paris Agreement distributed energy resources and charging centricity, reinforced by the ethics strategy. by the expansion and strengthening of the distribution and the Climate Change Act, 2024, as well as infrastructure, to widen access and reduce network. The transmission grid will be modernised our own ambition of net-zero emissions by 2050. emissions Key priorities include: through the deployment of synchronous condensers Consistent with the insight from South Africa’s 2025 • Strengthening industrialisation and localisation, • Leadership development and succession planning to to maintain stability as renewable penetration G20 Presidency that transitions must reflect national with government and industry partners, to mitigate ensure stability and continuity, including an orderly rises, while at distribution level our Advanced circumstances, our pathway is deliberately country- the socio-economic impacts of the transition and transition of the Group Chief Financial Officer role Metering Infrastructure (AMI) strategy will roll responsive – balancing energy security, affordability stimulate inclusive growth • Reskilling and upskilling employees for the Eskom of out smart meters at scale, supported by a Smart and decarbonisation, and prioritising the responsible the future, spanning both digital transformation and use of coal while enabling a sustainable shift to This approach directly addresses the key risks of the just energy transition Meter Operations Centre to manage metering data, cleaner energy. stranded assets, regulatory non-compliance and social monitor performance and speed up fault detection • Strengthening reward and retention strategies to disruption, while positioning Eskom as a leader in and restoration. In parallel, we are improving the attract and retain critical skills Guided by the Integrated Resource Plan (IRP) 2025, South Africa’s energy transition. flexibility of the generation fleet to respond to greater • Advancing diversity, equity and inclusion, with a we are pursuing a diversified and balanced transition. variability in supply and demand. focus on elevating the role of women, youth and Renewable energy and storage are being accelerated STRATEGIC ENABLERS to reduce emissions, while gas provides flexible, Our enabling functions provide the agile, integrated persons with disabilities in the energy sector Our modernisation initiatives include: dispatchable capacity to support grid stability as support that the core businesses need to deliver • Expanding and reinforcing transmission and DIGITAL TRANSFORMATION AND variable generation increases, complemented by against our strategic objectives. These functions are distribution infrastructure to unlock grid capacity TECHNOLOGY nuclear, hydro and clean-coal technologies. Eskom being repositioned to accelerate execution and build and integrate renewable and distributed energy We are elevating digitalisation as a strategic Green anchors our renewable ambition, with a organisational resilience. at scale imperative to improve performance, enhance the pipeline expected to make around 6GW of carbon- • Deploying synchronous condensers and other free electricity available by FY2030, with an aspiration GOVERNANCE AND LEADERSHIP customer experience and strengthen controls. Our technologies to maintain system stability and quality of up to 32GW of cost-competitive renewables and We remain committed to restoring public trust digitalisation strategy targets five transformation areas of supply storage by FY2040. through organisational integrity, strengthened – customer centricity, asset performance optimisation, • Rolling out smart meters and enabling bidirectional governance and ethical leadership. Building on the smarter grid operations, integrated supply chain energy flows as a core component of a future- In parallel, our Just Energy Transition strategy – that establishment of dedicated investigative and security management and an enhanced employee experience ready distribution network has been decoupled from the coal-station shutdown capabilities, the launch of the Raptor Fusion Centre – enabled by hybrid multi-cloud, the internet of things, • Increasing generation-fleet flexibility to schedule – ensures that repowering and repurposing has enhanced our ability to detect, investigate and act advanced analytics and robust cyber security. Priority complement variable renewable output proceeds alongside the gradual retirement of coal on infrastructure crime, fraud and corruption, working initiatives include advanced analytics for predictive • Reskilling and redeploying our workforce, including assets, so that affected workers and communities are in concert with the Ethics Office, Internal Audit and maintenance and fraud detection, a coal automation through a Renewables Academy and a Nuclear supported rather than left behind. law enforcement partners. Strengthened internal system to strengthen quality control in the coal supply School, with the goal of reskilling 15 000 employees chain, and continued investment in cyber security to by FY2031 safeguard our digital and operational infrastructure. 29 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Evolving our strategy continued FINANCE, FUNDING AND STRATEGIC • Regulatory certainty and market reform, including PARTNERSHIPS the timely finalisation of the market code, To deliver our objectives without placing undue wholesale and unbundled retail tariffs, and the pressure on the balance sheet, we are pursuing broader rules of the competitive market alternative funding models, including public-private Energy availability Financial strength Legal separation Municipal debt • Cost-reflective tariffs that adequately reflect partnerships, private sector participation and finance the cost of supplying electricity while balancing mechanisms that blend commercial and concessional 70% EAF over the Gross debt below NewCo, GxCo, Arrest and reverse the affordability with Eskom’s financial sustainability capital. These models are critical to accelerating the medium term R300bn; investment NEDCSA and TSO arrear debt growth • Timely legislative enablement for the establishment rollout of clean energy, transmission expansion and grade of the new holding company and the legal digital transformation, and to enabling the just energy separation of the Generation and Distribution transition. Beyond unlocking capital and reducing businesses on-balance-sheet borrowing, they bring technical • Continued support from National Treasury and expertise, innovation and risk-sharing that are essential the Department of Electricity and Energy, including to our long-term sustainability, while supporting our enforcement of payment discipline in municipalities path to an investment-grade credit profile. Grid expansion Digitalisation Clean energy Just transition and a sustainable resolution of municipal arrear debt STAKEHOLDER ENGAGEMENT AND 14 500km of new lines Accelerated smart 6GW by FY2030; up to Net-zero by 2050; • Careful, well-sequenced engagement with lenders STRATEGIC DELIVERY by 2034 meter and AMI rollout 32GW by FY2040 reskill 15 000 by on the establishment of the independent TSO, so Our success depends on collaboration. We are FY2031 that reform strengthens rather than undermines deepening engagement with the shareholder, National Eskom’s financial sustainability Treasury, NERSA, Parliament, municipalities, industry • Access to concessional and blended finance to fund partners and communities to enable policy reform, clean energy projects, grid expansion and digital In broad terms, delivering on our strategy means: 7. Completing the legal separation, with the secure investment and build trust through transparent transformation 1. Ensuring energy security and system reliability by unbundling of the Distribution and Generation communication. Coordinating execution across the businesses and the establishment of the • Implementation of carbon tax stabilising generating plant availability at 70% over group, the Strategic Delivery Unit governs delivery of independent TSO • Effective engagement with organised labour, the medium term and resolving primary energy our most important initiatives – including the CORE communities and civil society to ensure a just and challenges 8. Commissioning clean-energy capacity through programme, the unbundling programme and the inclusive transition 2. Achieving compliance with environmental and Eskom Green and strategic partnerships, building clean energy pipeline – and manages the performance • Development of multi-governmental levers for emissions regulations for stations operating towards around 6GW of carbon-free capacity by relationship between Eskom Holdings and its industrial customers experiencing economic beyond FY2030 FY2030 subsidiaries, so that strategic intent is translated into hardship disciplined operational delivery. 3. Expanding and strengthening the transmission and 9. Investing in our people through skills development, distribution networks to relieve grid constraints reskilling and succession planning We will continue to monitor these dependencies and HOW WE WILL MEASURE SUCCESS and support regional energy integration 10. Supporting economic transformation and adapt our approach to remain resilient and agile in The shareholder’s updated Strategic Intent Statement localisation through procurement and social a rapidly evolving landscape. The complexity of the 4. Accelerating smart-meter and microgrid sets out Government’s expectations for Eskom over investment, and enabling a just energy transition transition, the scale of investment required and the deployment to modernise the distribution the medium term, which we have embedded in our that is socially inclusive and environmentally interdependencies across regulatory, financial and network shareholder compact and FY2027 Corporate Plan. responsible operational dimensions all introduce uncertainty. To Our principal measures of success are summarised 5. Restoring financial sustainability – maintaining navigate this effectively, we have embedded a robust below. a sustainable EBITDA margin through revenue MANAGING DEPENDENCIES AND RISKS risk management framework that identifies, monitors enhancement and cost optimisation, reducing Our strategy is ambitious but grounded in the realities and mitigates strategic risks across the organisation. In gross debt below R300 billion and achieving an of a transforming energy sector. We have made the section that follows, we outline the key risks facing investment-grade credit profile measurable progress in stabilising operations and Eskom and the measures in place to manage them. 6. Arresting and reversing the growth in municipal strengthening our finances, but the path to long-term arrear debt, and improving payment levels sustainability will require continued focus, agility through distribution agency agreements and other and support from key stakeholders. Its successful mechanisms execution depends on several critical dependencies: 30 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Mitigating risk and maintaining resilience Effective risk management and resilience are essential Management is the first line of defence when it comes to Eskom’s long-term sustainability – all the more so to risk management. Day-to-day management of given our vital role in the South African economy, risk and resilience is delegated to Exco, supported our impact on society and the environment, and the by Exco’s Risk and Sustainability Committee, which far-reaching transition of the energy sector described implements the Enterprise Risk and Resilience in “Reflecting on our operating context”. As Eskom Management Plan and monitors risk performance moves from recovery and stabilisation towards and emerging risks quarterly, within the Board- transformation, the nature of the risks we face is approved appetite and tolerance levels. During the changing – alongside the operational risks of running year we refreshed our risk appetite and tolerance a large, ageing generating fleet, we must now manage statements – sharpening their wording, broadening the strategic risks of competing in a liberalising market. tolerance coverage and, for the first time, introducing This year we strengthened our approach accordingly, quantitative tolerance levels to improve tracking including the introduction of a dedicated view of our and measurement. The assessment of our risk strategic risks. landscape and appetite is embedded in our strategy development and execution, as illustrated below. We aim to create a more resilient organisation and society by embedding risk-intelligence and resilience into all decision-making, enabling our people to take Strategic risk the right level of the right risks, and supporting the appetite and Shaping our future through achievement of our strategic objectives. risk of strategy options strategy OUR RISK LANDSCAPE HOW WE GOVERN AND MANAGE RISK development As part of strategy development and execution, we regularly scan our environment to identify shifts in our Scanning our We manage risk and resilience across the group Risk of operating context and risk landscape. The most significant developments over the past year – and their potential environment through an integrated approach aligned to recognised strategy impact on our risks – are summarised below; these were explored more fully in “Reflecting on our operating misalignment standards. Our Integrated Risk Management and critical context”. Standard conforms to ISO 31000, the King IV Report INTEGRATED AND assumptions PROACTIVE STRATEGY on Corporate GovernanceTM for South Africa, Emerging risk DEVELOPMENT AND Developments in our environment Potential impact on our risks 2016 (King IV), Government’s Risk and Integrity and strategic EXECUTION Geopolitical volatility and fuel security risk profile Management Framework for state-owned companies, Planning the Disaster Management Act, 2002 and the strategy The US–Iran conflict disrupted key oil and gas routes and drove Financial and operational sustainability risks may requirements of our annual shareholder compact. execution fuel-price volatility, while regional fuel-supply constraints persist. be affected by higher fuel costs and supply-chain Monitoring This heightens our exposure to diesel and OCGT costs, and to disruption; mitigated by prudent fuel stocks, and adjusting In line with King IV, the Board is responsible for the our direction Risk of logistics and critical minerals supply for our build programme diversified sourcing and hedging execution oversight and governance of risk. It approves the Electricity-market reform and the independent TSO Enterprise Risk and Resilience Management Policy and Plan, together with the group’s risk appetite The Electricity Regulation Amendment Act, 2024, the establishment Business-model and regulatory risks may increase; of the Market Operator and the work of the Eskom Restructuring mitigated by preparing for competition, careful and tolerance levels, which define the level of risk This integrated cycle ensures that we can formulate Task Team are reshaping the industry and Eskom’s structure sequencing of reform while protecting financial we are willing to assume in pursuit of our strategic sustainability and lender interests and execute our strategy, operate with minimal objectives. Following the separation of the Audit disruption, respond to and recover from disruptions Improved yet fragile financial position and Risk Committee in February 2025, a dedicated should they materialise, and proactively pursue Risk Committee now oversees the overall risk Credit-rating upgrades from S&P Global and Fitch and continued Financial sustainability risk remains elevated; mitigated emerging opportunities. Our risk landscape is management system on behalf of the Board, ensuring Government support improved confidence, but municipal arrear by the CORE programme, distribution agency monitored continuously so that risks affecting that material risks and opportunities are identified, debt of around R119 billion by June 2026 and declining sales persist agreements and revenue-diversification initiatives our strategic objectives are identified early and evaluated, managed and reported, while other Board consistently managed, with appropriate structures and Climate, environmental and regulatory change committees remain responsible for the risks within plans in place to treat them. Extreme-weather events, the Climate Change Act, 2024 carbon- Environmental, climate and compliance risks may their remit. budget regime and emissions obligations continue to intensify be affected; mitigated by emissions-reduction initiatives, the just energy transition and engagement on proportionate regulation 31 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Mitigating risk and maintaining resilience continued BUILDING RESILIENCE: OUR NATIONAL DISASTER PRIORITIES This year we enhanced our disclosure by introducing a dedicated view of our strategic risks – those risks that may Our resilience efforts strengthen the organisation’s capability to respond to and recover from adverse events and affect the sustainability of our business model and the achievement of our strategic ambitions. Unlike operational to adapt to disruptive environments. In compliance with the Disaster Management Act, we manage major threats, risks, which sit within individual divisions, strategic risks cut across the entire value chain and affect all divisions and disruptions and disasters through dedicated resilience command centres. We are formalising an Eskom National subsidiaries. Identified through interviews with Exco and Board members as well as industry research and expert Disaster Management Forum to coordinate planning across the group. input, they are dynamic by nature and are reviewed routinely by Exco and the Board. We manage eight national disaster priorities – risks that are inherent to our operations, with a low likelihood of We have identified eight strategic risks, grouped into three categories – business-model failure, operational occurring but potentially disastrous consequences if they do. Each is sponsored by an individual Exco member failure and financial-performance decline – and mapped against the horizon over which they are most likely to accountable for its monitoring and contingency planning, supported by disaster management working groups. have an impact. Short term (next 12 months) Medium term (2–5 years) Long term (5 years +) Inability to compete in a Adverse regulatory impact Failure to build future skills, Climate change related Cyber attack or systems failure National blackout National industrial 1 liberalised market 5 7 culture and people disasters action Inability to fund the Rigidity of the supply and Failure to embrace the just 2 business independently of 6 value chain 8 energy transition (net-zero) government Nuclear Pandemic Severe supply and Social and geopolitical incident demand constraint instability Unsustainable financial 3 position Simulation exercises are conducted regularly to test our ability to continue operating and to recover quickly. During the year, six provincial grid exercises were held in line with Grid Code requirements, while a national blackout exercise, GridZero, was conducted on 20 March 2026 across divisional, subsidiary and provincial emergency- A business model failure response structures. Involving 53 response teams and some 850 participants, GridZero tested our black-start and Significant business system-restoration plans and our coordination with government structures; participants rated the overall experience 4 continuity disruption Operational failure 4.45 out of 5, and the findings are informing further improvements to our contingency plans. Financial performance decline Our resilience was also tested in practice: severe weather and floods in Limpopo, Mpumalanga and KwaZulu-Natal early in 2026 – classified as a national disaster – affected tens of thousands of customers and required a coordinated, multi-province emergency response. OUR STRATEGIC AND OPERATIONAL RISKS We assess operational risks across each part of the business according to the likelihood of occurrence and the magnitude of the consequence. These are aggregated into risk categories spanning finance; our licensed activities of generation, transmission and distribution; environment and climate change; people, culture and safety; information and operational technology; legal and compliance; fraud and ethics; and stakeholder engagement. Each category is aligned to the Board’s risk appetite and tolerance levels, has an accountable owner, and is monitored through key risk indicators that act as leading signals of the direction and pace at which risks are moving. 32 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Mitigating risk and maintaining resilience continued OUR STRATEGIC RISKS IN DETAIL Appetite status (assessed against Board-approved appetite and tolerance levels) Each strategic risk has an assigned executive sponsor Within risk appetite limit Approaching risk appetite limit Breached risk appetite limit and is linked to the strategic objectives it threatens as well as to the underlying operational risks Strategic risk and Appetite Material through which it may materialise. The table below executive sponsor What could cause it Consequences and our response status matters sets out these risks, the consequences should they materialise, our key responses, their status against A Business-model failure our risk appetite, and the related material matters. Each risk is assessed as being within appetite, 1 Inability to compete • Failure or delay of unbundling If it materialises: M5, M10, approaching appetite or having breached appetite; in a liberalised due to a lack of leadership • Eskom would be unprepared for a competitive market and cannot Approaching M11 all have treatment plans in place, although, given their market alignment on the “how” and compete with private-sector players set up to win and retain customers, risk appetite medium- to long-term nature, these may take time Sponsor: Group “when”, or financial and legal undermining long-term value limit to move a risk back within appetite. Executive: Strategic complexity • Inability to develop future-fit, Our response: Delivery Material matters are referenced by number below: customer-centric business • Advancing the unbundling roadmap and refined end-state (see “Evolving models our strategy”) M1 Sustaining ethical leadership • Transforming Generation and Distribution business models and building • Legacy performance measures M2 Enhancing financial sustainability and liquidity that do not drive an outcome- a trading capability M3 Reversing the decline in sales and diversifying based culture • Developing new products, adequate tariffs and a customer-centric revenue culture M4 Achieving operational excellence 5 Adverse regulatory • Fundamental changes to If it materialises: M2, M11, M5 Improving customer centricity impact NERSA regulation, such as • Inability to recover costs and revenue shortfalls, reduced price Approaching M13 tariff unbundling, affecting our competitiveness and loss of customers, and less accurate long-term risk appetite M6 Enhancing environmental stewardship Sponsors: Group Chief ability to operate in the new Financial Officer; Group planning limit M7 Building a skilled workforce Executive: Legal, market • Inability to comply with other Our response: M8 Harnessing digitalisation and AI Compliance and regulatory or legislative change • Active engagement in NERSA processes and the market code M9 Furthering national developmental goals Regulation – carbon tax, procurement, AI, • Advocating a rules-based market transition with legacy-cost recovery M10 Executing the unbundling competition and the PFMA • Strengthening regulatory and compliance monitoring M11 Creating the Eskom of the future 8 Failure to embrace • Inability to secure the social If it materialises: M6, M9, M12 Advancing climate action and a just energy the just energy licence to transition, given the • Loss of operating licence, legal action and reputational harm from non- M12 Approaching transition transition socio-economic impact on compliance, and community unrest risk appetite M13 Upholding governance, compliance and ethics Sponsor: Group communities limit • Absence of a clear, funded just Our response: Fighting criminality and misconduct Executive: Renewables M14 transition strategy and difficulty • Delivering the just energy transition and repowering and repurposing structuring Eskom Green to coal-station sites compete • Structuring Eskom Green for competitive, bankable renewable delivery • Uncertain decarbonisation • Engaging communities, labour and funders on an inclusive transition pathway and the unaffordability of nuclear 33 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Mitigating risk and maintaining resilience continued Strategic risk and Appetite Material executive sponsor What could cause it Consequences and our response status matters B Operational failure 4 Significant business- • Targeted vandalism and theft, If it materialises: M4, M8, continuity disruption and ageing transmission, • System and network blackouts causing financial loss and service delivery Approaching M14 Sponsor: Chief generation and distribution failure, and electricity supply insufficient to meet demand risk appetite Technology and infrastructure that is not limit maintained or upgraded Our response: Information Officer • Legacy systems and outdated • Accelerating the Transmission Development Plan and grid modernisation cyber security tools increasing • Strengthening cyber security, access controls and technology upgrades exposure to advanced cyber • Diversifying sourcing of critical spares and long-lead equipment threats and data leakage • Execution risk on the grid expansion needed for the future market, and supply-chain disruption to critical materials and spares 6 Rigidity of the supply • Legacy infrastructure and If it materialises: M8, M13, and value chain systems limiting agility in • Inability to respond to a national crisis, slow transition to the new market, Approaching M14 Sponsor: Group responding to disasters and to diluted competitiveness and costly, persistent audit findings risk appetite Executive: Corporate a changing market limit • Slow, stringent procurement Our response: Services processes delaying • Digitalising procurement and supply chain management transformation • Strengthening document management and automation • Difficulty securing PFMA • Engaging on PFMA exemptions and streamlined processes exemptions to compete on an equal footing with future competitors 7 Failure to build the • Difficulty reaching agreement If it materialises: M1, M7 skills, culture and with organised labour amid a • Operational disruption, capabilities unsuited to the unbundled business, Approaching people for the future highly unionised workforce and decline in operational excellence risk appetite Sponsor: Chief People • Board and executive leadership limit changes causing disruption and Our response: Officer uncertainty • Reskilling and upskilling through the People Plan, a Renewables Academy and a Nuclear School • Inability to develop and retain the technical, digital, • Leadership development and succession planning for stability and commercial and stakeholder continuity skills the future business needs • Preserving labour stability through the three-year wage agreement 34 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Mitigating risk and maintaining resilience continued MANAGING OUR OPERATIONAL RISK Strategic risk and Appetite Material executive sponsor What could cause it Consequences and our response status matters CATEGORIES Our strategic risks are underpinned by operational C Financial-performance decline risks that are managed within each risk category, against the Board’s appetite and tolerance levels. Each 2 Inability to fund the • Inability to secure affordable If it materialises: M2, M3, category carries treatment plans, accountable owners business unbundling and growth funding • Eskom wouldn’t be able to fund the transition to the new market structure, Approaching M11 and key risk indicators. Our appetite ranges from independently of • Limited experience with private slowing infrastructure expansion and straining financial stability risk appetite a high appetite to return to sustained profitability Government funding models and instruments limit and to provide reliable electricity, to no appetite for Our response: Sponsor: Group Chief • Constraints on raising unethical conduct, criminality and misconduct, or for • Pursuing alternative funding – public-private partnerships, private sector Financial Officer capital from non-traditional non-compliance with our compliance obligations. participation and blended finance institutions, limiting generation, transmission and distribution • Ring-fencing Eskom Green to attract private and concessional capital In finance, we continue to address the revenue and investment • Deleveraging and progressing towards an investment-grade credit profile liquidity pressures arising from the tariff path and municipal arrear debt; in our licensed operations, 3 Unsustainable • Continued municipal debt If it materialises: M2, M3, to entrench the recovery in generation availability financial position crisis accelerating the revenue • Credit downgrades that limit funding and raise debt service costs, Breached M13, M14 while strengthening the transmission and distribution decline reputational damage, and declining revenue that threatens the going risk appetite Sponsor: Group networks; in environment and climate change, to • Persistent theft, fraud and non- concern limit Executive: Distribution reduce emissions and navigate the carbon-budget technical losses Our response: regime; in people, culture and safety, to uphold our • Inability to secure new revenue value of Zero Harm; in information and operational • Executing the municipal and metro debt strategy, including distribution sources, sustainable funding or agency agreements technology, to protect against cyber threats and cost optimisation • Driving the CORE programme, which includes revenue enhancement system failure; in legal and compliance, to drive initiatives towards improved compliance and an unqualified • Strengthening controls and consequence management against theft and audit through the audit recovery programme; in fraud fraud and ethics, to sustain our zero-tolerance approach through the Raptor Fusion Centre and stronger consequence management; and in stakeholder engagement, to rebuild trust and reputation. All strategic and operational risks have treatment plans in place. Given their medium- to long-term nature, these plans may not immediately mitigate the risks or reverse performance but successfully treating them is paramount to Eskom’s future. We also monitor a set of emerging risks – including higher diesel costs, regional fuel supply constraints and broader inflationary pressure on our operations – and consider our posture against low-probability, high- impact “black swan” events, so that we remain alert to threats before they crystallise. 35 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Connecting with stakeholders Stakeholder engagement sits at the heart of how we OUR ENGAGEMENT FRAMEWORK create value – not only for Eskom, but for the broader Governance and oversight Our engagement framework Our engagement framework rests on four mutually society in which we operate. Our relationships with reinforcing pillars – relationship management, those who authorise, enable, influence and partner Board proactive strategic engagement, transparent with us shape our strategy, safeguard our social Relationship management communication and collaborative partnerships. Each licence to operate and determine the pace at which Accountable to stakeholders for is essential to building trust, supporting our strategic we can deliver Eskom’s turnaround. As discussed in performance and sustainability objectives and managing organisational risk. We earlier sections, this was a year in which stakeholder treat the management of stakeholder concerns as a priorities shifted decisively – from the immediate Proactive strategic engagement distinct risk category with defined treatment plans, concern of keeping the lights on reliably towards the SES Committee recognising that our social licence to operate is harder questions of affordability, financial sustainability Oversees stakeholder relationships inseparable from the strength of our relationships and and reform delivery. and the engagement plan our reputation. Transparent communications Recognising our exposure to reputational risk and varying levels of stakeholder support, we engage proactively and transparently to meet stakeholder Executive Committee expectations while carefully managing the impact of Custodian of relationships via a Collaborative partnerships our operations. Through continuous evaluation and stakeholder matrix benchmarking, we work to strengthen trust, deepen relationships and deliver positive outcomes for all stakeholders. OUR APPROACH TO STAKEHOLDER ENGAGEMENT GOVERNANCE AND RESPONSIBILITY In line with the King IV principles of inclusivity, materiality, responsiveness, impact and transparency, Stakeholder management Public campaigns Brand campaigns Reputation management Media management we apply a stakeholder-inclusive governance model • Mobilise government, • Raise awareness about key • Communicate Eskom's • Deliver operational • Provide transparent that holds the Board accountable for the organisation’s regulators, labour, topics such as public safety, corporate strategy and reliability and integrity communication about performance and long-term sustainability. The Board’s investors and communities electricity theft, municipal energy mix transformation across Eskom to rebuild Eskom's performance and Social, Ethics and Sustainability Committee (SES) to unlock policy, tariff and debt and non-payment • Promote Just Energy stakeholder and customer strategic milestones oversees stakeholder relationships and the execution project decisions culture and infrastructure Transition (JET), trust over time • Push positive stories of our stakeholder engagement plan, supported by • Align stakeholders behind vandalism renewable and nuclear • Communicate Eskom's through executive profiling other committees – including the Business Operations Eskom's strategy, energy • Educate consumers about education tangible improvements to and thought leadership Performance Committee and the Governance and transition and service scams, fraud and illegal reinforce trust • Showcase innovation, new • Host regular media Strategy Committee – within their terms of reference. improvements activities products and corporate • Monitor key reputational briefings, editors' forums As delegated by SES, Exco serves as custodian of • Risk-based engagement at social responsibility risk indicators and and system updates our key relationships, with executives assigned to priority sites initiatives implement mitigation specific stakeholders through a stakeholder matrix. strategies Engagement performance is monitored through weekly briefings and quarterly reports; non-technical risks are tracked and resolved through a weekly issues forum; and the impact of short-, medium- and long- term engagements is evaluated, with corrective plans where improvement is required. 36 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Connecting with stakeholders continued A YEAR OF ENGAGEMENT INVESTORS, LENDERS AND PARTNERS Over the past year our engagement intensified across We deepened engagement with local and more than 45 strategic platforms and milestone international investors, lenders and ratings agencies events, even as the agenda and conversation evolved. as we prepare for a return to the capital markets in Sustained operational performance – including more coming years. Credit-rating upgrades from S&P Global than 365 days without loadshedding – maintained and Fitch have affirmed our improved performance, confidence across Government, regulators, investors reinforcing confidence in Eskom’s recovery. We and industry. But as stability was restored, attention also secured infrastructure-funding partnerships turned to the structural reforms, infrastructure through memoranda of understanding with the delivery and pricing decisions that will determine Industrial Development Corporation (IDC) and Eskom’s longer-term sustainability. the Development Bank of Southern Africa (DBSA). We showcased our recovery and growth story at REFORM, REGULATION AND GOVERNMENT high-profile platforms including the World Economic We engaged extensively with our shareholder, the Forum in Davos, the Africa Energy Forum and Enlit Department of Electricity and Energy (DEE), National Africa. Treasury, NERSA and Parliament on the reforms reshaping the industry. We participated in NERSA’s CUSTOMERS, COMMUNITIES AND further public consultation on MYPD 6 following the AFFORDABILITY court decision and, following their determination, in Affordability remains the dominant customer engagements towards an affordable long-term tariff concern. We introduced tailored, flexible pricing to path through participation in the DEE’s processes retain large industrial and smelter customers facing on the revision of the Electricity Pricing Policy. economic hardship and expanded our products and We advanced market reform through the South services as demand shifted towards self-generation. African Wholesale Electricity Market (SAWEM) In communities affected by load reduction, we Market School and NECOM’s intergovernmental expanded local leadership forums and “Act Now” workstreams and supported the work of the campaigns, combined with smart-meter awareness, Presidency’s Eskom Restructuring Task Team to address electricity theft and illegal connections (ERTT) on the independent Transmission System while protecting vulnerable networks. We continued Operator (TSO) and financial sustainability, municipal to strengthen outage communication and complaint ENERGY TRANSITION AND COMMUNITY MEDIA AND PUBLIC TRUST debt and our obligations to lenders. Strengthened resolution. LICENCE Our Media Desk continued to monitor sentiment parliamentary oversight reinforced transparency and The launch of Eskom Green and the Lethabo solar and public discourse across traditional and social compliance. EMPLOYEES AND ORGANISED LABOUR PV project marked a milestone in our just energy platforms, generating insights that inform engagement We secured labour stability through a three-year transition. We engaged renewable developers, and reinforce transparency. Media sentiment remained TACKLING MUNICIPAL ARREAR DEBT wage agreement effective 1 July 2026, and continued Municipal arrear debt – which reached around environmental groups and communities on wheeling, predominantly positive, supported by the sustained to engage organised labour on unbundling, where R119 billion by June 2026 – remained our most pressing grid access and the repurposing of coal-station suspension of loadshedding, visible operational concerns persist. Workforce development and financial risk. We worked through intergovernmental sites and continued to manage IPPs’ concerns recovery, enhanced leadership visibility and reported reskilling programmes – central to operating a structures to advance the distribution agency over curtailment and grid access through technical progress against criminality and misconduct. modernised, lower-carbon system – advanced agreement (DAA) model and enforcement under the through structured labour engagement. engagement with the IPP Office, NERSA and industry Promotion of Administrative Justice Act, 2000 (PAJA), associations. with parliamentary support, while managing litigation from South African Local Government Association (SALGA) on the DAA model. 37 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Connecting with stakeholders continued LISTENING TO OUR STAKEHOLDERS Building confidence We measure the quality of our relationships through a multi-stakeholder perception • Sustained operational stability (365+ days without loadshedding) survey aligned to the King principles, assessing inclusivity, materiality, responsiveness, impact management, transparency and reputation. For the second half of the year, • Visible operational recovery and stronger leadership visibility Eskom achieved an overall sentiment score of 70 out of 100 – a “positive” rating • Progress against crime, fraud and corruption that reflects growing recognition of our improved operational stability and stronger • Credit-rating upgrades and improved investor confidence engagement. 70 0 100 Where stakeholders expect more Stakeholders nonetheless expect more: strengthened communication, better • Electricity affordability and tariff increases coordination, enhanced transparency and sustained delivery against our out of 100 • Municipal arrear debt and revenue recovery commitments. These insights are fed directly back into our engagement plans. Positive rating • Transmission delivery, grid access and market reform • Stronger communication, coordination and transparency Government and Industry and energy Financial Environmental and International and Parliament and Municipal Contractors and public sector sector institutions civil society diplomatic regulators stakeholders suppliers 70% 60% 75% 60% 75% 65% 60% 65% Stronger strategic Appreciate improved Confidence in reforms Concerns over coal Supportive of JET Acknowledged Challenges with debt, Improved communication, alignment and engagement; concerns progress requires dependency, emissions partnerships and improved engagement; illegal connections and concerns around improved recognition remain on tariffs, grid continued financial and pace of Just regional energy continue to prioritise service delivery payment terms and of role in energy access and execution discipline and Energy Transition leadership; expect governance and coordination procurement turnaround security and reform pace transparency implementation consistent delivery accountability times Key insights: Stakeholder confidence is Engagement quality improved, but Execution pace, grid capacity Transparency, timely Delivery against commitments is Focused collaboration on reforms improving with better operational frequency and accessibility can be and affordability remain key communication critical across all essential to building long-term and JET will strengthen stakeholder stability and leadership visibility strengthened concerns stakeholder groups trust confidence Negative Neutral Moderately positive Positive Very positive Overall score -40 40–59 60–69 70–79 80–100 70 38 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Connecting with stakeholders continued OUR STAKEHOLDER LANDSCAPE Our stakeholders represent a diverse range of interests and expectations, from investors focused on returns and predictability to communities concerned with the social and environmental impact of our operations. The table below sets out our principal stakeholder groups, their key concerns and our responses, and links these to the material matters we’ve identified. Material matters are referenced by number below: Material Stakeholder Value creation impact Key concerns Our response matters M1 Sustaining ethical leadership M2 Enhancing financial sustainability and liquidity Government, Provide policy direction, Energy security, financial and operational Active collaboration on policy and market reform, M2, M4, shareholder and regulatory oversight and sustainability, tariff affordability, unbundling, market debt-relief implementation, DAA rollout, and M10, M11, M3 Reversing the decline in sales and diversifying policymakers financial support reform, climate commitments, adherence to debt progress on unbundling and the independent TSO M12, M13 revenue relief conditions M4 Achieving operational excellence Regulators Ensure compliance and Tariff methodology, market code and licensing, Participation in NERSA processes and the market M2, M4, M5 Improving customer centricity protect consumers while environmental compliance, grid access code, SAWEM readiness, and adherence to M6, M11, M6 Enhancing environmental stewardship enabling a competitive market environmental and licensing requirements M12 M7 Building a skilled workforce Parliamentary Provide oversight of Financial and operational sustainability, governance, Transparent reporting on performance and M2, M4, M8 Harnessing digitalisation and AI committees governance, finances and unbundling, municipal arrear debt, combatting governance, with regular engagement on M10, M13, M9 Furthering national developmental goals performance corruption separation and the audit recovery programme M14 M10 Executing the unbundling Investors, lenders Provide funding that supports Financial performance, returns, tariff and revenue Transparent reporting, credit-rating engagement, M2, M3, M11 Creating the Eskom of the future and ratings our asset base and financial certainty, municipal arrear debt, unbundling, good audit recovery programme, partnerships with M10, M11, agencies sustainability corporate governance and positive audit development financing institutions, investor M13 M12 Advancing climate action and a just energy outcomes, climate change commitments platforms transition M13 Upholding governance, compliance and ethics Customers Directly influence revenue, Reliability, affordability, tariff clarity, load reduction, Flexible pricing to retain industrial demand, M3, M4, service standards and public service and outage communication, responsiveness customer-centric products, improved M5, M11, M14 Fighting criminality and misconduct trust communication and complaint resolution M12 LOOKING AHEAD Employees and Drive operational Job security, salaries and benefits, wellbeing, Three-year wage agreement, wellbeing and M1, M7, The year ahead will test whether we are successfully organised labour performance, culture and reskilling, the impact of unbundling and the energy skills-development programmes, and structured M10, M13 converting operational credibility into lasting trust. long-term sustainability transition engagement on the transition Our engagement priorities are clear: resolving Business, suppliers Support operations and Grid access and curtailment, procurement and Transparent procurement, faster payment, M2, M3, municipal arrear debt, delivering transmission and IPPs business continuity through payment turnaround, self-generation, ethical grid-allocation and congestion engagement via the M4, M8, line expansion, implementing electricity-market the supply chain and practices IPP Office and NERSA M13, M14 reform and maintaining transparent, consistent electricity generation communication. Considering the President’s pronouncement of the Phase 1 report of the Eskom Communities and Advocate for social justice Environmental impact, load reduction, socio- Local leadership forums, “Act Now” campaigns, M5, M6, Restructuring Task Team, heightened attention civil society and environmental economic effects, community development smart-meter awareness, and repowering and M9, M12, will be given to collaboration with all the relevant stewardship, shaping our repurposing initiatives M14 stakeholders to develop and implement sustainable social licence to operate electricity-market reforms. By listening actively and Influence public perception Transparency and accuracy of information, reform Timely, accurate information, proactive media responding visibly, we will continue to strengthen the Media M1, M13, and hold Eskom accountable progress engagement and consistent messaging M14 relationships on which Eskom’s sustainability – and South Africa’s energy security – depend. International and Offer investment, knowledge Regional energy security and trade, climate SAPP cross-border trade, JET partnerships and M6, M9, regional partners exchange and alignment with commitments, JET financing, best practice participation in regional and global energy forums M11, M12 global goals 39 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Identifying key topics Our integrated reporting suite is prepared based on double materiality, by considering both financial The material matters have been linked to the following Board priorities: materiality – external factors that may affect our • Sustaining leadership stability and strengthening the leadership pipeline, investing in human capital, financial performance – and impact materiality – embedding a high-performance, ethical culture and reinforcing transformation across the group internal factors through which we impact the broader • Driving operational improvements and long-term system reliability to support the transition from environment and society. We also assess both crisis response to sustainable operational excellence, with oversight of generation and energy security, qualitative and quantitative matters that are material network performance and non-technical energy losses, environmental compliance and digitalisation, and to our strategic objectives, organisational risks and monitoring the strategic execution of major capital projects opportunities, the Board’s focus areas, our operations and the six capitals. • Enhancing customer centricity and eliminating load reduction to affected communities • Advancing environmental sustainability and technology pathways, including existing emissions-reduction By prioritising material matters, we align our initiatives, research and development into technologies to reduce coal-fired emissions, and the efforts with the most critical environmental, social responsible transition of Eskom’s asset base and governance (ESG) priorities – those that, if • Securing Eskom’s financial sustainability – reducing municipal arrear debt, supporting tariff reform and not effectively managed, could significantly affect an affordable long-term tariff path, addressing the declining sales trend through load retention and new the organisation’s long-term sustainability and revenue streams, overseeing the Cost Optimisation and Revenue Enhancement (CORE) programme, value creation. and optimising the group’s capital structure and long-term funding • Advancing the unbundling and positioning Eskom within the evolving electricity supply industry, given market reform, regulatory developments and the establishment of the South African Wholesale Electricity Market (SAWEM) and an independent Transmission System Operator (TSO) Material matters are high-likelihood, high- impact factors that significantly influence • Enabling private sector participation and investment in transmission network expansion and Eskom the creation, preservation or erosion of Green initiatives, and considering related ownership and corporate structuring options enterprise value across short-, medium- and • Strengthening governance, ethics and supplier integrity, and improving the effectiveness of the internal long-term horizons. These may be either control environment, the combined assurance model and the audit recovery programme positive or negative in nature. • Fighting criminality and misconduct through enhanced prevention, detection, investigation, correction and governance oversight • Enhancing stakeholder relationships to support Eskom’s sustainability and long-term value creation We follow a structured process to identify material matters, by considering: • Continuity or evolution of prior-year material matters • Significant changes in the operating environment • Stakeholder concerns and expectations • Strategic risks and opportunities • Key issues deliberated by the Board • Likelihood and potential consequences of the matters The Audit Committee considered the matters identified and set out in the table below for inclusion in the integrated report. 40 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Identifying key topics continued Item Material matter Description Board priorities M1 Sustaining ethical Sustaining stable, capable and ethical leadership to set clear strategic direction, enable sound decision-making and embed organisational stability. Strong leadership Leadership leadership remains essential to sustain the turnaround, rebuild trust and entrench a high-performance, ethical culture aligned to Eskom’s values Stakeholder responsiveness With the executive team now largely settled, the focus has shifted to deepening the leadership pipeline, managing planned transitions and reinforcing accountability M2 Enhancing financial Consolidating the financial recovery by strengthening revenue, maintaining disciplined cost management and securing an adequate tariff path that balances affordability Financial sustainability sustainability and liquidity with financial sustainability. Achieving standalone investment-grade credit ratings over the medium term will require these structural pressures to be resolved Stakeholder responsiveness This includes preserving sufficient liquidity to meet obligations, fund the capital programme and sustain operations as a going concern, while optimising the group’s capital structure and long-term funding requirements. Continued progress has benefitted from Government’s debt relief support but still depends on the effective resolution of municipal arrear debt – which rose to R111.6 billion at year end – and sustaining the gains of the CORE programme M3 Reversing the decline in Arresting the structural decline in electricity sales, which reduced by 6.2% to 178TWh during FY2026, and monetising surplus capacity in a market shaped by weak Financial sustainability sales and diversifying demand, embedded self-generation and rising competition. Stabilising sales volumes is critical to protect asset utilisation, revenue and financial sustainability of the Customer centricity revenue broader value chain Stakeholder responsiveness This includes retaining large industrial and smelter customers through tailored pricing structures, activating new demand from data centres and other growth segments, pursuing new revenue streams, and optimising wheeling and cross-border sales M4 Achieving operational Sustaining the reliability and resilience of generation and network operations to secure a consistent electricity supply. Consistently avoiding loadshedding underpins Operational reliability excellence to sustain economic activity and supports revenue through higher sales Stakeholder responsiveness security of supply Building on generation plant availability (EAF) of 65.16% and more than a year without loadshedding, the focus is on embedding the structural recovery through improved plant performance, disciplined maintenance, expanded and modernised grid and network infrastructure, lower technical and non-technical energy losses, and secure primary energy and water resources M5 Improving customer Placing customers at the centre of Eskom’s business as it prepares for a competitive market. A stronger customer orientation is essential to retain demand, protect Operational reliability centricity revenue and rebuild confidence in Eskom as a service provider Customer centricity Stakeholder responsiveness This means improving service reliability and responsiveness, eradicating load reduction in affected communities, resolving complaints within committed timeframes, and strengthening outage and tariff communication M6 Enhancing environmental Strengthening compliance with environmental regulations while reducing our environmental footprint through emissions-reduction initiatives, dust management and Operational reliability stewardship sustainable operating practices. Proactive stewardship supports long-term operational viability and strengthens stakeholder trust Environmental stewardship Stakeholder responsiveness This includes advancing technology pathways – including research and development into technologies to reduce emissions from coal-fired power stations – and the responsible transition of Eskom’s asset base towards cleaner energy alternatives. Navigating the carbon budget and mitigation-plan regulations and advocating for a proportionate approach aligned to the Integrated Resource Plan remain priorities given the potential operational and financial consequences M7 Building a skilled workforce Developing and retaining a capable, future-ready workforce while investing in human capital and embedding a high-performance, ethical culture with clear accountability Leadership within a high-performance, Stakeholder responsiveness ethical culture Reskilling employees for a transforming, more competitive industry and preserving labour stability, underpinned by the three-year wage agreement is essential to drive operational excellence, foster agility and innovation, and secure long-term organisational resilience M8 Harnessing digitalisation Modernising the business through digital technologies, data and artificial intelligence to improve operational performance, strengthen controls and enhance decision- Operational reliability and artificial intelligence making. Digital maturity is a key enabler of efficiency, transparency and the modern, market-ready utility Eskom is becoming Governance and ethics Criminality and misconduct This includes digitalising core processes such as procurement, deploying smart metering at scale, and applying advanced analytics to detect criminality and misconduct, Stakeholder responsiveness manage assets and optimise the power system 41 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Identifying key topics continued Item Material matter Description Board priorities M9 Furthering national Supporting national development priorities through workforce transformation, Government-funded electrification, inclusive procurement and localisation, and corporate Leadership developmental goals social investment Stakeholder responsiveness Alongside efforts to reindustrialise and support economic growth, these contributions reinforce transformation across the group and Eskom’s role as a strategic enabler of South Africa’s developmental agenda and socio-economic upliftment M10 Executing the unbundling Advancing the unbundling of Eskom’s core businesses in line with Government’s Roadmap. The separation is a critical enabler of industry transformation and long-term Financial sustainability of the generation, sustainability Unbundling transmission and Private sector participation distribution businesses Following the establishment of NTCSA and Eskom Green, the focus turns to legally separating the Distribution and Generation entities. Progress on the end-state of the Stakeholder responsiveness transmission business depends on legislative developments and the work of the Eskom Restructuring Task Team, while separation of the Distribution business remains contingent on resolving its financial sustainability, principally municipal arrear debt M11 Creating the Eskom of the Repositioning Eskom from a vertically integrated monopoly to a competitive participant in a transforming electricity supply industry. Success will secure a meaningful Financial sustainability future amid market share of future capacity growth and safeguard Eskom’s long-term relevance Unbundling reforms toward a Private sector participation competitive electricity Shaped by the Electricity Regulation Amendment Act, 2024 and the phased introduction of SAWEM, this requires expanded grid capacity and access, customer-focused Stakeholder responsiveness market products, cost-reflective tariffs and market codes, and clean-energy business models M12 Advancing climate action Reducing carbon emissions and diversifying towards cleaner energy through Eskom Green, while balancing energy security, affordability and decarbonisation in a practical Environmental stewardship and a just energy transition and just way Private sector participation Stakeholder responsiveness This includes progressing the clean energy strategy across renewables, gas and storage, and delivering the Just Energy Transition to ensure a fair, inclusive shift that protects affected workers and communities, aligned to the Paris Agreement and South Africa’s Nationally Determined Contribution M13 Upholding governance, Reinforcing robust governance frameworks and ensuring full compliance with applicable laws, regulations and standards, while promoting transparency, accountability, Governance and ethics compliance and ethics ethical conduct and supplier integrity at all levels Criminality and misconduct Stakeholder responsiveness Strengthening the internal control environment and combined assurance model, sustaining progress under the audit recovery programme and achieving an unqualified audit within regulated timelines are central to restoring confidence in Eskom’s governance and financial reporting, and to supporting long-term sustainability M14 Fighting criminality and Sustained progress is essential to protect infrastructure and revenue, restore organisational integrity and rebuild the stakeholder confidence on which Eskom’s long-term Governance and ethics misconduct sustainability depends Criminality and misconduct Stakeholder responsiveness Proactively preventing and addressing criminality and misconduct through enhanced prevention, detection, intelligence-driven investigation, correction and governance oversight, supported by capabilities such as the Raptor Fusion Centre 42 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Governing and leading ethically OUR GOVERNANCE FRAMEWORK The Board sets the strategic direction of the Our approach to governance is founded on ethical organisation by integrating strategy, risk, performance leadership, effective oversight, informed decision- and sustainability as interdependent pillars of value making and accountability. This is supported by creation. It also provides oversight of management’s a significance and materiality framework and a performance and execution of the strategy to ensure delegation of authority policy which clearly define the accountability and integrity of organisational reporting. roles and responsibilities between the shareholder, The Board approves key strategies, policies and the Board and management. The group’s subsidiary plans that enable the effective execution of Eskom’s governance framework further reinforces the mandate. Furthermore, it oversees the identification consistent application of good governance practices and management of compliance obligations and across Eskom’s wholly owned subsidiaries – it enterprise risks, supported by internal controls and a promotes shared values, strategic alignment and risk-based combined assurance model. effective oversight across the group, while respecting the legal autonomy of each subsidiary. APPLYING THE KING CODE ON CORPORATE GOVERNANCE The Board recognises that upholding good governance The Board remains committed to ethical and effective is essential to restoring trust and ensuring that Eskom leadership, responsible corporate citizenship and fulfils its mandate in a manner that preserves long-term sustainable value creation. To give effect thereto, it sustainability and responsible stewardship of public ensured the application of the principles and practices resources. The Board, supported by its committees, of King IV during FY2026. fulfils its fiduciary duties in accordance with the Companies Act, 2008, the Public Finance Management Embedded in the Board charter is the requirement Act, 1999 (PFMA) and the principles of the King Code to conduct an annual assessment of our application on Corporate Governance for South Africa. of the King Code to consider how the principles and practices are applied across the group and identify areas where further strengthening is required. Management conducted a self-assessment for the year, which was independently assessed. The outcome reflects a governance environment that has improved but remains in transition. The latest application register is available at www.eskom.co.za/about-eskom/leadership 4 43 Governing and leading ethically 46 Strengthening our leadership 51 Driving value creation through good governance 55 Ensuring fair remuneration 58 Reinforcing controls and assurance 62 Upholding good governance 43 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Governing and leading ethically continued FOSTERING AN ETHICAL CULTURE FY2026 King IV assessment at a glance FY2026 ethics performance at a glance 14 principles substantially applied 2 principles partially applied Declaration Assessment of Ethics training Supplier integrity of interest whistle-blower policy approved by Over 39 000 completion rate reports the Board Areas for improvement Governance focus employees attended • Technology and information Mature cyber-security, artificial intelligence, digitalisation and Employees 99%1 95.45% reports ethics training by Driving ethical oversight of information and operational technology Board and Exco assessed within 31 March 2026 conduct and 100% 30 days accountability across • Compliance Strengthen PFMA, regulatory and proactive compliance monitoring (2025: 93.40%) our supply chain • Assurance Improve combined assurance and audit outcomes • Risk governance Strengthen forward-looking risk oversight and mitigation 1. In some cases, employees may be unavailable to complete a declaration because of suspension or approved periods of extended • Reporting Improve reporting quality and stakeholder-informed disclosures absence, such as ill health and maternity leave. Employees who fail to submit a declaration without a valid reason are subject to investigation and disciplinary processes. • Stakeholder inclusivity Move towards more outcome-focused stakeholder engagement The Board, through its Social, Ethics and Sustainability The areas assessed as partially applied as well as those identified for improvement reflect the governance Committee, oversees the governance of ethics in Zero Harm challenges that remain most material to Eskom, including the need to enhance technology and cyber governance; Eskom aligned to the King Code. protecting the Eskom way strengthen risk and compliance maturity; improve combined assurance, address persistent weaknesses in the Ethical leadership is central to strengthening control environment, achieve clean audit outcomes and enhance reporting quality; and reinforce stakeholder Integrity governance practices throughout Eskom. The engagement. The Board and its committees continue to advance governance improvements across these areas. Board remains fully committed to fostering a high- acting the Eskom way performance, ethical culture that reflects Eskom’s values and reinforces its commitment to operating as Innovation ADOPTING THE KING V CODE a responsible corporate citizen – ethically, socially and In line with the guidelines of the Institute of Directors in South Africa, the group has initiated a transition thinking the Eskom way environmentally. framework to fully adopt and report under King V for the financial year commencing 1 April 2026. This transition includes assessing existing governance practices against King V, updating governance disclosures where required, and aligning future reporting to the King V Disclosure Framework. In Eskom, we believe that integrity strengthens Sinobuntu trust, and trust creates value. Consequently, caring the Eskom way The transition from King IV to King V is an opportunity to further mature Eskom’s governance landscape, we uphold a zero-tolerance stance to unethical with stronger emphasis on a high-performance, ethical culture and value creation, compliance and prudent conduct. Customer Satisfaction control, legitimacy, integrated thinking and transparent disclosure. This will further support Eskom’s broader serving the Eskom way governance journey, which is moving from remediation towards a more mature, disciplined and outcomes- focused approach to governance. Our Code of Ethics, known as “The Way”, serves as the foundation of Eskom’s values-driven culture. “The Excellence Way” is underpinned by six core values, collectively working the Eskom way referred to as ZIISCE, which guide behaviour and decision-making at all levels of the organisation. 44 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Governing and leading ethically continued Adherence to “The Way” is not optional; it is the way we do business in Eskom, guiding the way in which we interact with one another as well as with all our stakeholders. Independent whistle-blowing hotline The Board’s ethics manifesto supports Eskom’s values-driven approach by setting clear expectations for visible, ethical leadership, and reaffirms the Board’s collective duty to abide by and act in accordance with the following commitments: 0800 11 27 22 eskom@whistleblowing.co.za Government anti-corruption hotlines 0800 701 701 www.gov.za/anti-corruption/hotlines To establish To visibly To ensure To ensure that To ensure To ensure that To ensure To demonstrate a grounded support ethics that executive employees are that Eskom’s Eskom cultivates our suppliers a bias for action Our commitment to ethics is central to delivering and mature in Eskom by management aware of the reputation a speak-up and business in fulfilling the sustainable performance and fulfilling Eskom’s understanding setting the tone takes ethical values is restored, culture where partners actively Board's ethics mandate. In the coming year, our ethics focus will be: of ethics in for a high- accountability of Eskom and and that the people feel participate manifesto in Eskom that goes performance, in making ethics are empowered organisation safe to raise in rooting everything we beyond anti- ethical culture, a priority and to apply these becomes ethical concerns out unethical do and say Enhancing ethics awareness corruption and and lead by actively drives values in the attractive to and report practices and compliance example ethics initiatives workplace prospective behaviour that cultivate an Expand ethics communication through in Eskom employees does not comply ethical culture campaigns and initiatives to embed ethical and business with Eskom's behaviour and continuous improvement in partners Code of Ethics day‑to‑day operations Reviewing our culture programme Together, these commitments support Eskom’s broader governance priorities of strengthening accountability, improving controls, encouraging responsible decision-making and embedding a culture where unethical conduct is identified, corrected and prevented from recurring. Conduct an independent review of our culture programme to ensure it remains fit for purpose in a competitive and GR Further detail on Eskom’s integrated ethics approach, conflict of interest declaration processes and whistle-blowing mechanisms is provided in the governance and remuneration report, under “Fostering an ethical culture” liberalised electricity market Deepening collaboration Eskom’s ethical standards apply to all individuals acting on its behalf, including suppliers. During the year, the Board approved a supplier integrity policy to strengthen ethical conduct, accountability and consequence management across the supplier base, aligned with the PFMA and other regulatory requirements. Supplier misconduct is addressed Continue to work with regulators, law through a clear, fair and time-bound process, with possible sanctions including removal from Eskom’s supplier database, referral to National Treasury for restriction on its enforcement, industry partners and Central Supplier Database or temporary purchasing blocks on Eskom’s procurement system. communities to promote integrity and We encourage all stakeholders to report suspected incidents of unlawful or unethical conduct involving directors, employees or suppliers. Reports can be made through prevent, detect, investigate and correct Eskom’s independent whistle-blowing hotline or Government’s anti-corruption channels. These mechanisms are designed to ensure confidentiality, protect whistle-blowers misconduct and uphold the integrity of the reporting process. Upholding zero tolerance Reinforce ethical leadership, accountability, consequence management and transparency throughout the group 45 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Strengthening our leadership APPOINTMENT OF A NEW BOARD In terms of Eskom’s memorandum of incorporation, the Board may consist of no more than 15 directors. The majority of the Board must be independent non-executive directors and there must be at least two executive directors. At the start of the year, the Board comprised 13 directors, with 11 independent non-executive directors and two executive directors. The three-year term of the non-executive directors was due to end on 30 September 2025 but was extended by the shareholder to 30 November 2025 to allow sufficient time for the appointment of new Board members. After receiving Cabinet approval in October 2025, the following changes were made to the composition of the Board with effect from 1 December 2025: Term ended on 30 November 2025 New appointments Reappointments Fathima Gany Dr Andrew Barendse Lwazi Goqwana Ayanda Mafuleka Dr Kgaugelo Chiloane Clive le Roux Leslie Mkhabela Sharmila Govind Dr Tsakani Mthombeni Bheki Ntshalintshali Dr Dimakatso Matshoga Dr Busisiwe Vilakazi Tryphosa Ramano Tshokolo Nchocho Dr Claudelle von Eck Prof. Vuyo Peach Bajabulile Tshabalala (Lead Independent Director) Thandeka Zondi-Mthembu All appointments were effective from 1 December 2025, except for Thandeka Zondi-Mthembu who was appointed from 5 December 2025. These changes were implemented to support both continuity and renewal in the Board’s oversight. The reappointments preserved institutional knowledge and stability in governance, while new appointments strengthened the Board’s collective skills, experience and diversity to enhance the maturity and sustainability of Eskom’s governance. Following these appointments, the Board is fully constituted and is appropriately positioned to execute its responsibilities, supported by its committees. Continuity in Board leadership has also been maintained with Mteto Nyati having remained as Chairman of the Board, providing stability in the Board’s strategic direction and having led a smooth transition to the reconstituted Board throughout the handover period. IR Refer to “Driving value creation through good governance” from page 51 for the Board’s structure, activities and decisions for the year, evaluation of its performance as well as its future focus areas 46 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Board of Directors at 31 March 2026 MTETO DAN CALIB BAJABULILE DR ANDREW DR KGAUGELO LWAZI SHARMILA NYATI (61) MAROKANE (54) CASSIM (54) TSHABALALA (60) BARENDSE (59) CHILOANE (50) GOQWANA (50) GOVIND (51) Chairman Group Chief Executive Group Chief Financial Officer Lead Independent Independent Independent Independent Independent Director (LID) non-executive director non-executive director non-executive director non-executive director Appointed to the Board in Appointed to the Board in Appointed to the Board in October 2022; appointed as March 2024 July 2017 Appointed to the Board in Appointed to the Board in Appointed to the Board in Appointed to the Board in Appointed to the Board in Chairman in October 2023 December 2025 December 2025 December 2025 October 2022 December 2025 G R R B G I A B R H R S B H I A G H S Ages and committee memberships reflected at 31 March 2026. GR F ull details of directors’ qualifications and directorships are included in the governance and remuneration report Membership of Board committees A Audit Committee B  usiness Operations Performance B Committee G  overnance and Strategy G Committee H  uman Capital and Remuneration H Committee CLIVE DR DIMAKATSO DR TSAKANI TSHOKOLO PROF. VUYO DR BUSISIWE THANDEKA I Investment and Finance Committee LE ROUX (74) MATSHOGA (48) MTHOMBENI (46) NCHOCHO (58) PEACH (62) VILAKAZI (42) ZONDI-MTHEMBU (44) Independent Independent Independent Independent Independent R Risk Committee Independent Independent non-executive director non-executive director non-executive director non-executive director non-executive director non-executive director non-executive director S S ocial, Ethics and Sustainability Appointed to the Board in Appointed to the Board in Appointed to the Board in Appointed to the Board in Appointed to the Board in Committee Appointed to the Board in Appointed to the Board in October 2022 December 2025 October 2022 December 2025 December 2025 October 2022 December 2025 Denotes chair of a committee B G I S B H I G I R A G H S A H S A B S A G I R 47 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Board of Directors at 31 March 2026 continued Demographics Age diversity 8 6 1 4 (60+) 4 (40–49) ACI ACI White males females male ACI refers to African, Coloured and Indian population groups. Skills and experience 7 (50–59) Extensive coverage • Governance and ethics Board meetings 14 95% • Strategy and risk management Board meetings held | attendance Strong coverage Total number of Board and Board committee meetings held • • • Engineering, science and technology Financial reporting, audit and controls Funding and capital allocation 78 (2025: 78) • Information and operational technology • People management, health and safety Board training and other engagements • Stakeholder relations and change management During the year, directors participated in targeted training and engagements to deepen their understanding of Eskom’s strategic, Good coverage regulatory and operating environment. Focus areas included a Board strategy workshop, AI transformation in the power and • Climate change and environment utilities sector, the JSE’s Debt and Specialist Securities Listings • Infrastructure and project management Requirements, as well as site visits to Eskom’s Research, Testing • Legal and compliance and Development facilities and NTCSA's National Control Centre. • Operations and maintenance Following the Board transition, structured induction sessions were held for the incoming directors, together with a briefing with the Minister of Electricity and Energy. These engagements Specialist expertise supported informed Board oversight of Eskom’s strategic direction, operations, digitalisation plans, transition pathways as well as environmental, social and governance (ESG) sustainability matters, • Economics and regulation while reinforcing alignment with the shareholder’s strategic intent. 10–15 directors 7–9 directors 4–6 directors 1–3 directors Demographic information reflected at 31 March 2026. Meeting and attendance statistics refer to the full year and include both the outgoing Board and the reconstituted Board. 48 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Executive Management Committee at 31 March 2026 DAN CALIB ROMAN LEONARD NONTOKOZO DR CANDICE MAROKANE (54) CASSIM (54) CROOKES (53) DE VILLIERS (69) HADEBE (48) HARTLEY (45) Group Chief Executive Group Chief Financial Officer Group Executive: Group Capital Chief Technology and Group Executive: Strategy and Chief People Officer Appointed to Exco in March 2024 Appointed to Exco in July 2017 Appointed to Exco in November 2024 Information Officer Sustainability Appointed to Exco in March 2025 7 years in Eskom 24 years in Eskom 17 years in Eskom Appointed to Exco in November 2024 Appointed to Exco in November 2024 1 year in Eskom (including 2010 to 2015) (including 1999 to 2016) 1 year in Eskom 1 year in Eskom Ages and years of service reflected at 31 March 2026. GR F ull details of Exco members’ qualifications and directorships are included in the governance and remuneration report AGNES PORTIA RIVONINGO BHEKI ALFRED MLAMBO (55) MNGOMEZULU (50) MNISI (44) NXUMALO (57) SEEMA (53) Acting Group Executive: Group Executive: Corporate Group Executive: Renewables Group Executive: Generation Group Executive: Strategic Distribution Services Appointed to Exco in February 2025 Appointed to Exco in June 2023 Delivery Appointed to Exco in August 2025 Appointed to Exco in November 2024 1 year in Eskom 29 years in Eskom Appointed to Exco in December 2024 18 years in Eskom 1 year in Eskom 1 year in Eskom 49 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Executive Management Committee at 31 March 2026 continued Demographics Age diversity Changes in executive management 1 The Executive Management Committee (Exco) is established by the Group 5 4 2 (60+) Chief Executive (GCE) and is accountable for executing Eskom’s strategy and 3 managing day-to-day operations. (40–49) ACI ACI White IR E xco is supported by several subcommittees, which are shown under “Who we are males females males and what we do – Overview of the group” on page 6 of the integrated report ACI refers to African, Coloured and Indian population groups. The following Exco changes took place during FY2026 and after year end: • The NTCSA board approved the secondment of Monde Bala, previously Skills and experience 7 Group Executive: Distribution, to the role of interim CEO of NTCSA from (50–59) 1 August 2025. He was subsequently appointed as CEO of NTCSA from Extensive coverage 1 October 2025 and no longer serves as a member of Exco Years of service • Agnes Mlambo served as acting Group Executive: Distribution from • People management, health and safety 1 August 2025 to 31 May 2026 • Stakeholder relations and change management 0–9 years 7 • Junaid Munshi was appointed as Group Executive: Distribution from • Strategy and risk management 1 June 2026 following an executive recruitment process 10–19 years 2 • Jerome Mthembu, Head of Legal and Compliance, assumed the role of Strong coverage 20–29 years 2 Group Executive: Legal, Compliance and Regulation from 1 June 2026 to ensure continuity and strengthen coordination across these interdependent • Engineering, science and technology functions; he became a member of Exco from that date (previously served as • Funding and capital allocation a permanent invitee to Exco) • Governance and ethics Exco meetings Exco is supported by the following permanent invitees: Tembela Kulu, General • Infrastructure and project management 82% • Operations and maintenance Manager: Investigations and Security; Ureka Rangasamy, Chief Audit Executive; attendance and Mlawuli Manjingolo, Group Company Secretary. The group executives Good coverage for Generation and Distribution serving on Exco also serve as the divisional managing directors of their respective divisional operational boards within the Number of Exco meetings held Eskom company until the separate subsidiaries commence trading. 21 • Climate change and environment • Financial reporting, audit and controls (2025: 14) Going forward, our Exco structure will be expanded to include a Chief Risk • Information and operational technology Officer (CRO) to strengthen governance and oversight of risk across the group. The CRO will be accountable for the consolidated enterprise risk profile Specialist expertise and forward-looking risk intelligence to inform strategy, capital allocation, Demographic information reflected at 31 March 2026. Meeting and attendance statistics refer to the full year. funding decisions and performance management for Exco, the Board and the shareholder. • Economics and regulation • Legal and compliance After serving Eskom for 24 years, including one year acting as GCE, Calib Cassim will be retiring from his role as Group Chief Financial Officer (GCFO) in FY2027. The Board is managing the recruitment process for the incoming GCFO with a clear schedule and timelines, with the aim of having the successful 9–11 members 7–8 members candidate take office before the end of the 2026 calendar year. To facilitate a 4–6 members 1–3 members smooth transition, the Board is targeting a handover of up to three months between Calib and the incoming GCFO. 50 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Driving value creation through good governance OVERVIEW OF THE BOARD’S STRUCTURE The Board committees and their oversight focus are summarised below. The Board is supported by seven committees, established to assist it in discharging its oversight responsibilities. The Board delegates authority to its committees through approved terms of reference, Audit Business Operations Governance and Strategy which define each committee’s composition, mandate, Committee Performance Committee Committee roles and responsibilities; however, the Board retains overall accountability for the exercise of its powers Chair: Chair: Chair: and for Eskom’s strategic direction, governance and Thandeka Zondi-Mthembu Clive le Roux Mteto Nyati performance. The terms of reference are reviewed annually to ensure continued alignment with Eskom’s 6 members 11 meetings 6 members 8 meetings 7 members 9 meetings governance framework, strategic priorities and 100% independent 99% attendance 100% independent 84% attendance 100% independent 91% attendance applicable legislative and regulatory requirements. Oversight focus Oversight focus Oversight focus Committees report to the Board on key decisions and Financial and non-financial reporting, internal Operational and technical performance, Governance frameworks, long-term strategy, activities, enabling the Board to consider the views of its individual committees when making decisions. Where controls, audit outcomes, combined assurance, reliability of electricity supply, production group restructuring and subsidiary governance, required by the delegation of authority, the Board forensic oversight and compliance management targets, security of primary energy resources stakeholder interventions and Board approves recommendations from its committees. and operational risks effectiveness Value creation Following the reconstitution of the Board in Strengthens confidence in Eskom’s reporting Value creation Value creation December 2025, the composition of the Board’s integrity, control environment and responsible Supports improved operational reliability, Guides Eskom’s strategic direction, governance committees was reorganised to enable enhanced stewardship of public resources generation and network sustainability, and maturity and institutional transformation to governance oversight and to support the effective delivery against Eskom’s Corporate Plan and support long-term sustainability functioning of each committee, with an appropriate shareholder compact commitments balance of skills, experience and diversity. Human Capital and Investment and Finance Risk Social, Ethics and Remuneration Committee Committee Committee Sustainability Committee Chair: Chair: Chair: Chair: Sharmila Govind Bajabulile Tshabalala Dr Tsakani Mthombeni Tshokolo Nchocho 6 members 12 meetings 6 members 13 meetings 6 members 5 meetings 6 members 6 meetings 100% independent 97% attendance 100% independent 95% attendance 66% independent 89% attendance 100% independent 96% attendance includes 2 executive directors Oversight focus Oversight focus Oversight focus Human capital strategy, organisational Financial performance, financial planning, Oversight focus Ethics, corporate citizenship, social structure, succession planning, performance capital programmes, borrowing requirements, Eskom’s overall risk profile, risk appetite, responsibility, health and safety, environmental management, culture and remuneration liquidity, procurement strategies, investment enterprise resilience and oversight of risk and climate accountability, stakeholder policies decisions and major commercial transactions management across all strategic, operational, engagement and oversight of group financial and compliance risks Value creation sustainability-related matters Value creation Supports leadership continuity and Supports the group’s financial sustainability, Value creation Value creation optimal capital structures, disciplined capital Enhances resilience by ensuring that material performance, workforce skills and capability, Promotes ethical leadership, responsible allocation, funding resilience, and effective risks and opportunities are identified and ethical culture, organisational effectiveness, business conduct, sustainability performance oversight of procurement strategies and major effectively managed in support of Eskom’s and fair and responsible remuneration investment decisions and stakeholder trust strategic priorities Committee chairs and membership are reflected at 31 March 2026. Meeting and attendance statistics refer to the full year and 51 ESKOM HOLDINGS SOC LTD Integrated report 2026 include both the outgoing Board and the reconstituted Board. Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Driving value creation through good governance continued All Board committees are chaired by independent BOARD ACTIVITIES AND FOCUS AREAS The Board also reflected on the broader enablers of non-executive directors. When required, the GCE, During the year, the Board focused on matters essential to Eskom’s operational and financial sustainability, operational performance, being our people, plant, GCFO and other members of executive management governance maturity and long-term strategic positioning within the evolving electricity supply industry. Many of processes and systems. It considered performance attend committee meetings as officials. The GCE the matters considered by the Board were reviewed in detail by its committees before being recommended to management, infrastructure investment, network and GCFO are members of the Risk Committee the Board for noting or approval, enabling focused oversight while preserving collective Board accountability. modernisation, digitalisation and information to support integrated oversight of enterprise risks; technology projects, customer centricity, as well as however, the committee maintains oversight by a Board focus Value created or preserved during the year initiatives to improve service delivery and operational majority of independent non-executive directors. efficiency. These included measures taken to reduce Strengthened leadership continuity, Board effectiveness and organisational non-technical energy losses, strengthen revenue Leadership continuity capability to support Eskom’s transition protection, improve network reliability as well as GR Refer to the reports by the Board and its limit load reduction experienced by customers in committees, covering the composition, purpose, Sustained the recovery momentum and maintained focus on electricity supply areas affected by infrastructure overloading, illegal activities and future focus areas of each committee Operational reliability reliability and infrastructure resilience to support energy security connections, electricity theft and meter tampering. Supported improved financial results and cost discipline while maintaining focus on Looking ahead, the reconstituted Board will continue Financial sustainability financial sustainability risks, including the regulated tariff path, declining sales, to focus on the capabilities required to move Eskom arrear municipal debt and the group’s capital structure from mere operational stability to operational Supported investment pathways for network expansion, energy storage, private excellence. The objective will be to build on the Energy transition gains achieved to date and to sustain generation sector participation and new generating capacity opportunities performance improvements, turn around network Guided legal separation and market reform to adequately position Eskom in the performance and accelerate infrastructure investment, Market reform evolving electricity industry digitalisation and customer centricity. Maintaining leadership stability, building a capable, transition- Reinforced audit recovery, PFMA compliance and the control environment, ready workforce and continuing to foster a high- Governance remediation and maintained focus on efforts to address criminality and misconduct performance, ethical culture are essential to sustaining Enhanced transparency with stakeholders as well as alignment with shareholder improved performance. Together, these support Stakeholder alignment disciplined execution, strengthen accountability and expectations, Government priorities and national energy reform ensure Eskom has the leadership and workforce capability required to deliver on its mandate. In line with the Board’s priorities communicated in our 2025 integrated report, together with external developments in the operating context during the year under review, the Board’s key focus areas centred on the SECURING LONG-TERM FINANCIAL AND following five areas of value creation. STRUCTURAL SUSTAINABILITY The Board’s financial oversight during FY2026 was DRIVING OPERATIONAL RELIABILITY AND FINANCIAL PERFORMANCE THROUGH shaped by the need to improve Eskom’s short-term GOVERNANCE-LED EXECUTION, WITH SHAREHOLDER SUPPORT financial position while addressing deeper structural During FY2026, the Board continued to oversee the stabilisation of Eskom’s operational performance and the pressures. Government’s debt relief has supported positive financial outcomes linked to that recovery. The improvement in generation performance created a liquidity and operational gains which, in turn, more stable operating environment, and the Board expects that this progress must become structural rather than have contributed to improved financial outcomes; temporary. however, the debt relief package is approaching Therefore, the Board remained actively engaged on the credibility and robustness of management’s recovery conclusion, and Eskom remains exposed to significant plans, ensuring that operational targets and initiatives were aligned with shareholder expectations. Through its challenges that threaten its standalone long-term committees, the Board considered operational performance across Generation, NTCSA and Distribution, including financial sustainability. The Board maintained regular system adequacy, generation reliability, network performance, operational risks and the root causes of loadshedding oversight of the group’s financial results, capital incidents recorded in April and May 2025. These deliberations ensured that the operational recovery is supported structure, investments needed to maintain and by appropriate governance, performance monitoring and clear accountability to sustain progress. expand infrastructure, as well as liquidity and funding plans. Furthermore, the Board considered financial assumptions and the outlook to assess Eskom’s ability to continue operating as a going concern. 52 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Driving value creation through good governance continued The Board engaged regularly on matters related to The Board’s oversight included Eskom’s Just Energy The Board’s oversight extended to future growth The action plans to address reportable irregularities Eskom’s financial sustainability, including NERSA’s Transition (JET) and ESG plan, climate change and investment opportunities, including the raised in previous years remained a focus area. Four revenue determinations and related court processes, strategy, environmental performance, compliance establishment of Eskom Green SOC Ltd, private sector reportable irregularities reported from 2022 to 2025 the tariff path and tariff structures, the impact of with Minimum Emission Standards, the responsible participation models, the funding of new generating were closed due to improvements in the related declining sales and proposals for load retention transition of Eskom’s coal-fired power stations, as well and storage capacity, as well as transmission network control environments. These relate to (i) failure pricing arrangements, compliance with the debt as liabilities relating to mine closure, environmental expansion. The Board also continued to participate in to fulfil certain duties relating to investigations, relief conditions, as well as initiatives driven through rehabilitation and nuclear decommissioning. These Government-led market reform initiatives, including (ii) incomplete or inaccurate financial records the Cost Optimisation and Revenue Enhancement sustainability matters are embedded in decisions the work of the Presidency’s Eskom Restructuring Task as required by the PFMA and Companies Act, (CORE) programme. Municipal arrear debt remains about the performance of the existing asset base, Team, which was formed in March 2026 to evaluate (iii) investigations and consequence management one of the most critical risks to Eskom’s financial capital allocation, funding and long-term system options for the establishment of an independent which were not conducted timeously in line with sustainability – the Board considered performance of planning. Transmission System Operator. While supporting the PFMA and related regulations, as well as the municipal debt relief programme, implementation the objectives of industry reform, the Board has (iv) submission of incomplete or inaccurate draft of distribution agency agreements and related Eskom will continue to operate and improve the emphasised the need for any future market model financial statements for audit. It is acknowledged that processes, as well as Eskom’s enhanced credit control performance of its existing asset base while investing to be legally robust, financially sustainable and the outstanding reportable irregularities will remain measures, which include the application of processes in new technologies, delivering projects and pursuing operationally practical to support the long-term open until all related aspects are concluded as it takes under the Promotion of Administrative Justice Act, partnerships that support a more sustainable stability of both Eskom and the broader electricity time to resolve environmental compliance matters. 2000 (PAJA) to limit or terminate supply to defaulting electricity system over time. The Board’s focus will supply industry. These matters were considered in the municipalities. The Board also engaged with National include emissions-reduction initiatives, ensuring a context of a future electricity market that will be more just transition for Eskom’s assets, and development AFS F urther details on reportable irregularities, including Treasury and the shareholder on these matters. competitive, more diversified and more dependent on actions taken and the status of each matter, are of renewable energy, gas, storage and nuclear partnerships – one that must ultimately deliver reliable discussed in note 53 in the financial statements For the reconstituted Board, the focus on financial capacity opportunities consistent with South Africa’s and affordable electricity for customers. sustainability will remain inseparable from structural Integrated Resource Plan 2025. reform. The Board recognises that tariff increases For the reconstituted Board, redefining Eskom’s During the year, the Board approved the supplier alone are not sustainable or affordable for customers; TRANSITIONING THE BUSINESS MODEL business model, group structure and market role integrity policy, thereby strengthening the governance therefore, enhancing revenue outcomes will depend AND ADAPTING THE ORGANISATIONAL within the evolving electricity supply industry remains framework for supplier conduct, accountability on diversifying revenue streams in a reformed STRUCTURE AMID MARKET REFORM a strategic priority. The Board will ensure that this and consequence management. Through its electricity market, retaining and growing sales while During FY2026, the Board continued to guide Eskom’s transition is implemented in a way that supports committees, the Board considered feedback on strengthening collection efforts, and improving positioning within a changing electricity industry. transparency, financial sustainability, operational the group’s combined assurance model, internal tariff structures. The Board will continue to oversee Eskom’s legal separation, the establishment of the continuity and the public interest. Key to this will be control environment, forensic investigations, supplier progress of the CORE programme to optimise Transmission System Operator, readiness for the diversifying revenue streams in preparation for market disciplinary processes, crime-related matters, as well Eskom’s cost base and deliver efficiencies in a South African Wholesale Electricity Market (SAWEM) reform and responding to regulatory developments, as physical and cyber-security risks and performance. sustainable manner, together with initiatives to further and the broader reform of the electricity supply including supporting an appropriate long-term strengthen the balance sheet towards a sustainable industry are reshaping Eskom’s future role. electricity pricing framework for South Africa that Eskom’s ability to sustain its turnaround depends on long-term capital structure. The Board will be focused balances Eskom’s financial sustainability with customer stronger control execution, transparent reporting, on interventions to resolve municipal arrear debt on The Board’s oversight was aimed at maintaining affordability. effective consequence management and the a structural basis through continued engagement with strategic alignment across the group while enabling prevention of recurring ethical and compliance government departments and key stakeholders. Eskom to adapt to a more competitive and diversified REBUILDING TRUST, INTEGRITY AND failures. The reconstituted Board will assess the market. The Board considered progress, options TRANSPARENCY maturity of combined assurance processes and will DRIVING PUBLIC VALUE, ENVIRONMENTAL and pathways for Eskom’s legal separation, to The Board recognises that Eskom’s recovery cannot focus on audit remediation, further strengthening STEWARDSHIP AND A JUST TRANSITION ensure that it remains aligned with national policy. be measured through operational and financial the internal control environment, enhancing Eskom’s long-term relevance depends on its It also considered regulatory developments, the indicators alone, but also through our relationships procurement governance and improving compliance. ability to balance energy security, affordability and implementation of trading agreements, restructuring with stakeholders. Rebuilding trust in Eskom is The Board will continue to oversee management’s decarbonisation in a practical and responsible way. of tariffs to better reflect the underlying component dependent on visible progress in governance, controls, efforts in addressing crime, fraud and corruption During FY2026, the Board considered future energy costs of electricity, implementation of distribution accountability and ethical conduct. through stronger prevention, earlier detection, pathways, environmental obligations, environmental agency agreements, and legal and regulatory faster investigation and more effective consequence and operational sustainability, and the role Eskom developments relating to distribution licences issued The Board monitored progress of the audit recovery management. must play in supporting South Africa’s energy by NERSA to private entities. programme, the status of reportable irregularities transition without compromising security of supply. raised by the external auditors and improvements in PFMA compliance. 53 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Driving value creation through good governance continued Furthermore, Eskom’s long-term value creation depends on sustained engagement with the shareholder, The FY2025 evaluation was conducted in the context While the evaluation confirmed that the Board was Government, regulators, customers, funders, employees, trade unions and other key stakeholders. The Board will of Eskom’s complex operating environment as a functioning effectively overall, it also identified areas continue to play a critical role in ensuring that Eskom’s strategy, performance and transition remain aligned with state-owned company with a dual commercial and requiring continued attention. The lowest-rated the shareholder’s strategic intent, as well as national energy policy and the expectations of our stakeholders. social mandate, significant regulatory obligations and theme was Board processes and procedures (scored major strategic priorities, including stabilisation of the at 3.1), reflecting the need to improve the flow of ENABLING THE TRANSITION TO A NEW BOARD business, legal separation and the energy transition. information and quality of submissions to the Board, The reconstituted Board assumed its responsibilities at an important time in Eskom’s journey. The outgoing Board FluidRock noted that these contextual factors should as well as review committee mandates, workplans handed over an organisation that is significantly more stable than it was at the start of the Board’s term, with be considered when interpreting the findings and and delegations of authority. Board composition and improved operational performance, strengthened governance structures, a clearer pathway to reform and a more recommendations. skills – particularly the need to address vacancies and mature understanding of the capabilities required to sustain progress. strengthen expertise in areas such as technology, FY2025 Board evaluation at a glance cyber security and corporate finance – was a FY2023 to FY2025 FY2026 FY2027 and beyond particular concern of the outgoing Board given that Key strengths identified it was not fully constituted with 15 directors at the Recovery and stabilisation Embedding discipline toward Long-term sustainability and • Strong commitment to ethical leadership and time. Furthermore, the evaluation identified the reliability and preparing for transformation accountability need to enhance coordination between committees; transition • Constructive Board culture and unity Urgently addressed the energy crisis Sustained operational Continue to lead the transition from • Diverse skills, experience and perspectives strengthen stakeholder engagement and develop and restored operational stability, improvements, strengthened operational stability to operational • Improved relationship between Board and a plan to improve relationships and trust with key rebuilt governance foundations, financial position, stabilised excellence, drive long-term financial management stakeholders; as well as further strengthen the progressed legal separation and leadership, guided transitional sustainability, support infrastructure • Formal governance structures and committee subsidiary governance framework. strengthened leadership pathways, and reinforced investment and reshape Eskom for support compliance, accountability and long-term value creation amid market GR F or further detail on the results and audit recovery reform and the evolving electricity Areas requiring continued improvement • Board and committee composition and skills recommendations of the independent board supply industry evaluation, refer to the governance and • Committee coordination and mandate clarity • Information flow and quality of submissions to remuneration report The Board recognises that Eskom remains in During the year, the outgoing Board commissioned the Board transition. Our task is therefore to move Eskom an independent evaluation relating to its performance • Stakeholder engagement Given the transition to the new Board during the from recovery to resilience by embedding the gains over FY2025, with the aim of reflecting on governance • Subsidiary governance latter part of FY2026, no Board evaluation will be achieved, addressing the structural challenges that practices, identifying areas for improvement as well • Tracking of Board improvement actions conducted relating to FY2026. The focus for the remain and positioning Eskom for a more competitive, as strengthening leadership and oversight for the coming year will be on monitoring and tracking the diversified and sustainable electricity market. This reconstituted Board. The independent evaluation implementation of recommendations arising from the next phase will require disciplined execution and was conducted by FluidRock Governance Group The results of the evaluation indicated a high level of Board effectiveness, with the Board achieving an FY2025 independent evaluation through an approved sustained focus on long-term financial, operational (Pty) Ltd, and the report was submitted to the Board Improvement Programme. Progress will be and structural sustainability, which cannot be achieved Board in November 2025, prior to the induction overall score of 3.3 out of 4, highlighting a positive governance culture, supported by trust, respect and reported through existing governance structures to without continued stakeholder support. of the incoming Board members. This independent support sustained improvement, strengthen Board evaluation followed the Board’s self-assessment for unity within the boardroom; a strong commitment to Eskom, ethical leadership and public service; and committee effectiveness and maintain alignment EVALUATING THE BOARD’S FY2024 facilitated by the Office of the Company with the Board and shareholder’s expectations. PERFORMANCE Secretary. diversity of skills and experience; and a constructive The Board is committed to sound governance relationship between the Board and management. The Board remains committed to enhancing internal practices, adopting the principles of the King Code The evaluation considered the Board’s overall The strongest-rated theme was the role of the Board structures and processes to support its strategic on Corporate Governance for South Africa and the effectiveness across key governance dimensions as (scored at 3.7), reflecting confidence in the Board’s oversight role. The Board Improvement Programme Protocol on Corporate Governance in the Public well as performance of the Board and the Chairman; ability to fulfil its mandate, provide strategic direction will focus on strengthening the effectiveness of the Sector, 2002. Accordingly, Eskom conducts formal Board committees and their chairs; the Group and uphold ethical leadership. Board and its committees, improving information evaluations of the Board, its committees and individual Company Secretary, GCE and GCFO; and included flow and decision-making processes, enhancing directors to support continued improvement in board director peer review processes. The evaluation was “The Board demonstrated diversity in committee coordination, supporting alignment performance. The results of board evaluations are conducted through questionnaires and interviews, professional backgrounds, race and gender, between management and the Board, and ensuring submitted to the shareholder for its consideration. with individual responses treated confidentially. contributing to a balanced and inclusive that governance structures remain fit for purpose as boardroom.” Eskom continues its transition. 54 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Ensuring fair remuneration OUR APPROACH TO REMUNERATION To ensure that NED remuneration remains fair, Eskom remunerates executives based on the size The Board, through the Human Capital and Remuneration is governed as a strategic enabler market‑aligned and consistent with shareholder and complexity of their role and on performance Remuneration Committee (HCR), oversees Eskom’s of Eskom’s turnaround, with the Board and Exco guidelines, independent benchmarking is conducted outcomes. To ensure fairness, remuneration packages human capital policies, including those relating balancing affordability and public accountability against a diverse set of comparators – including are independently benchmarked annually against to remuneration, and ensures that remuneration against the need to sustain leadership stability, other large SOCs, regulated utilities, energy and peers of similar revenue, market capitalisation and practices encourage value creation, support retain and attract scarce and critical skills, and infrastructure‑intensive businesses, as well as other operating complexity, to balance competitiveness achievement of our strategic objectives and advance reinforce a high-performance, ethical culture. relevant scarce‑skills labour markets. with fiscal responsibility. Remuneration packages are long-term sustainability by: positioned at the 50th percentile of the market. The Board and its committees held a total of • Applying the King Code, which requires that NED REMUNERATION 78 meetings during the year (2025: 78), exceeding Executive remuneration comprises both a guaranteed remuneration practices are fair, responsible, HCR makes recommendations on NED remuneration the 50 meetings approved by the shareholder for and variable component, designed to demonstrate transparent and promote sustainable value creation to the Board, for consideration and approval by the remuneration. The significant number of ad hoc a clear relationship between performance and • Implementing Government’s guidelines for the shareholder in line with Government's remuneration meetings attended without remuneration continues remuneration: remuneration and incentives of executives, guidelines for SOCs. With effect from 1 April 2024, to reflect the Board's commitment to responding prescribed officers and non-executive directors the shareholder approved a hybrid remuneration to heightened governance demands and to guiding Guaranteed component (NEDs) of state-owned companies (SOCs) model to better reflect prevailing market practice. Eskom’s recovery. Remuneration and benefits • Complying with the remuneration-related NED remuneration comprises: Ensures that talented individuals are attracted, condition of the Eskom Debt Relief Act, 2023 Total remuneration for NEDs as amended, which requires that remuneration retained and receive support to perform their adjustments do not negatively affect Eskom’s overall Fixed monthly retainer R’000 2026 2025 roles efficiently with consistency and equity financial position and sustainability Based on a directors’ membership and/or NEDs of Eskom Holdings SOC Ltd 26 082 22 396 across the organisation • Ensuring alignment of individual performance chairmanship of Board committees Eskom NEDs serving on Variable component to organisational targets and appropriately subsidiary boards 3 948 2 495 incentivising and recognising performance based Short-term Long-term incentives Quarterly meeting fees Total remuneration 30 030 24 891 on Eskom’s environmental, social and governance incentives Ensures the long- (ESG) metrics and targets outlined in the Based on Board and committee meetings Manages and term sustainability of Corporate Plan and shareholder compact attended, capped based on the number of The year-on-year increase reflects that the Board has been fully constituted from December 2025, with the facilitates the organisation • Applying the enhanced disclosure requirements of meetings approved by the shareholder performance through retention number of NEDs increasing to 13 (2025: 11). the Companies Amendment Act, 2024, including through a results- and long-term disclosure of remuneration policies, implementation Incidental expenses EXECUTIVE REMUNERATION driven approach performance reports and pay‑gap ratios Reimbursement of expenses incurred by HCR is responsible for determining executive that is collaborative, conditions and directors in fulfilling their duties towards Eskom remuneration in line with Government’s transparent and fair targets Separate remuneration policies are in place to reflect remuneration guidelines for SOCs. Executives are not the distinct practices applicable to non-executive involved in the approval process, and HCR retains the directors, executives, managerial employees and Guaranteed remuneration is fixed and includes right to adjust, withhold or veto any remuneration bargaining unit employees. GR The latest retainer and meeting fee structure, compulsory benefits such as medical aid, pension, adjustments. The shareholder is required to approve implemented in line with the shareholder’s remuneration group life and death benefits, as well as allowances for guidelines, is disclosed in the governance and remuneration adjustments for the GCE and GCFO. motor vehicle expenses and personal security. remuneration report WHERE TO FIND MORE AFS A nnual financial statements GR G overnance and remuneration report  Employee benefits expense: note 35  “Ensuring fair remuneration”  Remuneration of directors and executives: note 50 55 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Ensuring fair remuneration continued The GCE and Chief Technology and Information TOTAL REMUNERATION FOR EXECUTIVES Officer are appointed on fixed‑term contracts, while Only members of Exco are regarded as prescribed officers of the company. The remuneration disclosed below Negotiations for the three-year wage cycle from the GCFO and other executive management are covers only the period during which an individual served as a member of Exco. FY2027 commenced earlier than usual, with permanent employees subject to Eskom’s standard Eskom initially offering a 3.5%–5.75% increase conditions of service. 2026 2025 and unions requesting 15%–20%. After four Category, R’0001 Salary STI2 LTI Other3 Total Salary STI Other Total rounds of negotiation, Eskom tabled a final Variable remuneration is linked to the achievement of offer of an annual increase of 7% for three individual and organisational performance objectives, Dan Marokane (GCE) 4 9 542 2 499 – 142 12 183 9 000 765 1 963 11 728 years, plus a once-off R10 000 payment (before subject to defined gatekeepers. Short-term incentives Calib Cassim (GCFO)5 6 360 2 005 – 5 150 13 515 6 000 446 638 7 084 tax) in FY2027 and FY2028, aligned to recent (STIs) relate to a single financial year, whereas long- Other Exco members 38 788 15 590 1 246 1 493 57 117 15 091 2 584 401 18 076 agreements at other public entities. term incentives (LTIs) cover a three-year period. The Former Exco members 1 910 352 – 51 2 313 20 366 4 698 7 374 32 438 reintroduction of variable remuneration since FY2025 During the final round of negotiations, NUMSA Total remuneration 56 600 20 446 1 246 6 836 85 128 50 457 8 493 10 376 69 326 has been critical to Eskom’s executive retention demanded an 8% raise with a R10 000 after- strategy, recognising that competitive incentive 1. No fees were paid to executives for serving on subsidiary boards. tax payment in the first year; they have since structures are essential to retaining the specialised 2. STI amounts disclosed in the current year include employer pension contributions relating to the FY2025 STI scheme for Calib Cassim, declared a deadlock. While acknowledging leadership talent required to drive performance Bheki Nxumalo and Monde Bala. Refer to footnotes 4 and 5 for further information on the STIs and LTIs for Dan Marokane and the concerns raised, Eskom’s proposal remains improvements. Calib Cassim. balanced between the organisation’s financial 3. Other payments include accumulated leave paid out, long-service awards as well as allowances and insurance cover. Where applicable, sustainability and employee needs. sign-on bonuses, separation payments and ad hoc payments to the pension fund are also disclosed as other payments. The executive STI scheme is subject to 4. Only the interim FY2025 STI payout was disclosed under the previous year. The final payout for the FY2025 STI scheme of R2.5 million On 17 April 2026, Eskom, NUM and Solidarity qualification criteria and performance against was not disclosed in FY2025 as it was still subject to shareholder approval. It was approved for payment in the third quarter of signed a three-year collective wage agreement organisational ESG metrics and targets, subject FY2026 and is disclosed in the current year. A payout of R3.7 million for the FY2026 STI scheme is not disclosed above as it is awaiting taking effect in July 2026, which is binding on to gatekeeper conditions. Payouts are contingent shareholder approval. Other payments for FY2025 include the GCE’s sign-on bonus. all bargaining unit staff, including those affiliated on audited full‑year results. For the GCE and 5. Only the interim FY2025 STI payout was disclosed under the previous year. The final payout for the FY2025 STI scheme of R1.7 million with NUMSA. The agreement promotes cost GCFO, payouts are further dependent on was not disclosed in FY2025 as it was still subject to shareholder approval. It was approved for payment in the third quarter of FY2026 and is disclosed in the current year, along with the related employer pension contribution of R291k. A payout of R2.3 million for the predictability, supports operational stability and shareholder approval. FY2026 STI scheme is not disclosed above as it is awaiting shareholder approval. Furthermore, an LTI payout of R2.2 million relating secures the labour stability to deliver on our to the vesting of grant 13 is not disclosed above as it is also awaiting shareholder approval. Other payments for FY2026 include mandate and build the skills pipeline needed for The executive LTI scheme, approved for the R4.8 million paid to the Eskom Pension and Provident Fund (EPPF) to augment the retirement benefit for pensionable service lost the energy transition. period 1 April 2023 to 31 March 2026, grants during his fixed‑term employment from 2018 to 2023, resulting in approximately three years and two months of pensionable service annual performance awards which vest after being added in accordance with the EPPF’s fund rules. This was approved by HCR. three years based on performance against organisational ESG metrics and targets, subject Managerial employees receive a guaranteed EMPLOYEE REMUNERATION cost‑to‑company package that includes medical aid, to gatekeeper conditions. Awards vest only to Our employee remuneration philosophy is designed to attract, retain and motivate a skilled and high‑performing the extent that the prescribed performance pension, dread disease cover and group life benefits. workforce, underpinned by the principles of fairness and transparency. Eskom is strategically positioned as a measures have been achieved, and the Board In October 2025, an average increase of 7% was preferred employer through the provision of market-related remuneration structures, conditions of service and retains full discretion on the amounts payable at implemented, comprising a guaranteed cost‑of‑living other employee benefits. Employees are paid according to their contribution and the median market value of their the end of each three-year vesting period. adjustment of 3% and a discretionary element to roles, with additional premiums considered for jobs requiring specialised skills or challenging work environments, reward and retain top performers and to address such as nuclear work or shift‑based roles. Performance awards with a carrying value of income disparities. R45.4 million were outstanding at year end For bargaining unit employees – who make up around 81% of our workforce – guaranteed remuneration includes (2025: R28.1 million). Performance awards The employee STI scheme was continued in FY2026. a basic salary, a thirteenth cheque (disclosed in the financial statements as an annual bonus) and a comprehensive for the grant awarded on 1 April 2023 vested It is designed to drive operational excellence, retain suite of benefits, including pension, medical aid, death cover and allowances for housing, transport and on 31 March 2026. The related payment was critical skills and reinforce a high‑performance, communication. Under the three‑year collective bargaining agreement covering FY2024 to FY2026, bargaining approved by the Board on 28 August 2026. ethical culture, subject to strict qualification criteria. unit employees received a cost‑of‑living adjustment of 7% in July 2025. Employees in Generation, NTCSA and Distribution are also eligible for monthly production bonuses, based on achieving operational performance targets GR F urther detail on executive STI and LTI qualification to improve efficiency and operational productivity. criteria, targets and amounts paid is available in the Both schemes are self-funded and reward employees governance and remuneration report from financial and operational efficiencies. 56 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Ensuring fair remuneration continued In compliance with the conditions attached to the The employee with the highest remuneration, both Rand amount Guaranteed1 Variable2 Total Eskom Debt Relief Act, 2023 as amended, decisions guaranteed and variable, is the GCE, Dan Marokane. around remuneration and benefits consider our Total remuneration in respect of the employee with the The lowest remuneration relates to the stipend 9 540 000 2 499 300 12 039 300 financial sustainability and are based on a holistic view highest total remuneration payable to 947 learners under Government’s Youth of financial and operational performance, not just Total remuneration in respect of the employee with the Employment Service (YES) programme. 62 892 – 62 892 employee costs. lowest total remuneration If the YES learners were excluded, the remuneration Average total remuneration of all employees 872 486 69 447 941 933 in respect of the lowest-paid employee would be Median remuneration of all employees 808 300 51 928 858 580 Gross employee benefit expense R126 611, while the average of the 5% lowest-paid Average remuneration of the 5% highest-paid employees 1 933 770 252 268 2 186 038 employees would be R231 163, resulting in a pay gap R50.4 billion Average remuneration of the 5% lowest-paid employees 157 681 4 355 162 036 of 8.4 (compared to 12.3 including YES learners). (2025: R45.4 billion) Remuneration gap, ratio3 12.3 – 13.5 Eskom's pay distribution remains relatively contained 1. Based on cost-to-company. at the centre, with average remuneration only 10% Employee STI scheme obligation1 2. Variable remuneration includes LTI and STI amounts, where applicable. higher than the median. The wider dispersion across 3. Defined as the ratio between the total remuneration of the 5% highest paid employees and the total remuneration of the 5% lowest the organisation is driven by the need to attract R5.1 billion paid employees. and retain talent at the higher-paid executive and (2025: R4.2 billion) specialised levels of the organisation. This reflects Eskom's principle of positioning guaranteed pay aligned to at least the market median while reserving Production bonuses incentive-based rewards for performance based R1.6 billion organisational outcomes. (2025: R1.2 billion) LOOKING AHEAD The Board reaffirms its commitment to fair, responsible and transparent remuneration Direct training and development cost frameworks that remain fit for purpose and support R221 million Eskom’s operational improvement initiatives and (2025: R180 million) long‑term sustainability. Priorities for FY2027 and beyond include aligning subsidiary NED fees to the group strategy and managing elevated levels of Overtime costs employee benefit costs. R3.5 billion Eskom will continue to optimise its cost base by (2025: R3.3 billion) driving higher productivity across the workforce to deliver improved organisational performance, while aligning rewards with operational and financial 1. Includes a mandatory 13.5% employer pension contribution. outcomes. These actions will ensure that Eskom's remuneration framework remains competitive, ENSURING PAY EQUITY affordable and aligned to both shareholder Pay equity means equal pay for work of equal value, expectations and market realities as Eskom transitions regardless of gender, ethnicity or other characteristics. to a future‑fit utility in a liberalised energy market. Eskom ensures pay equity by benchmarking salary scales to the external market; aligning internal pay scales to job grade; strictly applying remuneration policies and job‑matching principles; and using annual increases to address unjustifiable disparities where possible. 57 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reinforcing controls and assurance The Board regards a credible control environment INTERNAL AUDIT ASSESSMENT OF THE CONTROL ENVIRONMENT Key improvements during the year and mature combined assurance model as • Audit recovery programme progressed from fundamental to Eskom’s governance. A strengthened initial recovery towards stronger control control environment is essential not only for improved enhancement and audit readiness decision-making and responsible stewardship of • Audit evidence, record management and public resources, but also for positive audit outcomes Governance Internal controls Risk management Financial controls documentation disciplines improved and rebuilding stakeholder confidence in Eskom’s Partially effective Partially effective Partially effective Partially effective • Control effectiveness improved in selected reporting. high-risk areas During the year, the Board intensified its oversight of • Stronger frameworks • Control design remains • Risk processes are well • Control design is • Audit readiness increasingly embedded as an Eskom’s control environment, PFMA compliance, audit and oversight generally adequate documented generally adequate ongoing management discipline recovery programme and the combined assurance structures • Weaknesses persist in • Enhanced risk • Completeness • Governance oversight of audit findings and model. The focus moved beyond enhancing structures • Accountability document and record ownership supported of PFMA-related remediation interventions strengthened towards improving control execution, strengthening and consequence management risk-based decision- disclosures require • PFMA remediation initiatives and backlog accountability, and embedding more disciplined management remain • Delays in digitalisation making ongoing attention reduction processes advanced assurance and remediation practices across the inconsistent and process • Weaknesses in • Weaknesses in group. The Board continues to provide direction and • Weaknesses in improvements accountability and document management Key challenges to be addressed challenge management where required to ensure that compliance with key constrain effectiveness compliance monitoring and inadequate • External audit qualification repeated, limited remediation efforts are focused on correcting the legislation, particularly require further oversight of financial to completeness of irregular expenditure underlying root causes and that improvements are the PFMA, require maturity reporting processes focused attention at component level disclosures sustainable. • Exco is being expanded to appoint a Chief Risk require improvement • Historical PFMA and control deficiencies Officer require sustained remediation ASSESSING THE CONTROL ENVIRONMENT The Internal Audit Department, which reports • Control environment remains only partially functionally to the Audit Committee, assesses the effective PRIMARY DRIVERS OF CONTROL DEFICIENCIES • Document and record management status of governance and compliance, together with the adequacy and effectiveness of preventative and weaknesses persist in some areas corrective controls on a quarterly basis. • First-line assurance and management monitoring require strengthening Based on key observations from audit work • Consequence management is not yet applied performed during the year, Internal Audit concluded Inadequate adherence Deliberate Insufficient Inadequate consistently that Eskom’s overall system of internal control across to policies and circumvention of management oversight consequence the group is adequate but only partially effective. procedures controls and accountability management FY2027 priorities This indicates that, while the design of controls and • Combined assurance maturity assessment, key governance frameworks is generally adequate, including the structure, operating model and key challenges remain around consistent execution, The Board recognises that Eskom’s challenge is less about a lack of policies, frameworks or control capacity of the internal audit function accountability and monitoring of controls. structures, and more about strengthening execution discipline, ownership by management, first-line • Development of an integrated governance, risk assurance and accountability for control failures. and control (iGRC) platform • Stronger control environment, first-line assurance and consequence management • Addressing the backlog of investigations and consequence management • Enhanced PFMA compliance and remediation WHERE TO FIND MORE • Continuous audit readiness AFS A nnual financial statements GR G overnance and remuneration report  Report of the Audit Committee  “Reinforcing controls and assurance”  Independent auditor’s report to Parliament 58 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reinforcing controls and assurance continued Despite focused management intervention driving Oversight of the programme has been strengthened through structured governance forums at business unit measurable progress during the year, the Board level, with regular reporting to Exco’s External Audit Oversight Committee, which is chaired by the GCE. The Status of external audit findings remains conscious that the control environment has programme has enhanced coordination between business units, Internal Audit and other internal assurance at 31 March 2026 not yet improved to the point where risk exposure functions, enabling greater alignment between remediation activities to address audit findings, control has been materially reduced. Persistent weaknesses enhancement initiatives and ongoing assurance reviews.  9 6% of FY2021 to FY2024 findings closed in document and record management, PFMA  69% of FY2025 findings closed compliance, procurement and contract management, During the year, the programme progressed from initial recovery towards disciplined control improvement, enhanced audit readiness and sustainable remediation of findings through clearer management accountability. * Subject to audit verification first-line assurance and consequence management continue to require increased attention. The emphasis shifted from establishing governance structures and the administrative closure of audit findings to identifying root causes and management actions aimed at ensuring that underlying control weaknesses are While the closure rates reported reflect addressed and prevented from recurring, while improving the quality and traceability of audit evidence. This shift Sustainable improvement will depend on management’s assessment, the effectiveness and is important because lasting improvement in audit outcomes will only be achieved by embedding better practices business units taking stronger ownership of sustainability of the remediation of these findings in day-to-day business processes. controls before these matters reach internal or will be independently verified by Internal Audit. The external assurance providers. AUDIT RECOVERY PROGRAMME JOURNEY outcomes of the FY2026 external audit will provide further insight into the quality and effectiveness of corrective actions based on the extent of repeat DRIVING PROGRESS THROUGH THE findings. AUDIT RECOVERY PROGRAMME Controls were enhanced in several high-risk areas, A significant area of Board oversight has been the including procurement and supply chain management, implementation of Eskom’s audit recovery programme contract management, PFMA compliance and to address the internal control challenges. The FY2025 FY2026 FY2027 reporting, revenue-related processes, asset programme was established in FY2025 to strengthen Recovery Stabilisation and control Control maturity and verification and reconciliations. These improvements governance, restore audit discipline and address systemic improvement included clearer ownership of controls, more frequent sustainability control weaknesses that have contributed to recurring management reviews, improved supporting schedules, audit findings and qualified audit opinions in recent years. Establishment of governance Strengthened remediation of Enhance controls, strengthen enhanced reconciliation processes and stronger The programme is anchored on three pillars: structures, with root cause findings and audit readiness first-line assurance and drive alignment between operational teams, finance teams analysis accountability and internal assurance providers. Sustainable closure of audit findings However, the pace of remediation remains uneven 1 across the group, and sustained effort is required to ensure that identified weaknesses are addressed Through these structures, prior-year findings Weaknesses in supporting documentation and comprehensively and that control improvements are were subjected to more disciplined oversight, with recordkeeping have historically contributed to audit embedded in day-to-day operations. The next phase management actions assessed against the underlying limitations and PFMA-related findings. During the year, is therefore about institutionalising control maturity, root causes, the adequacy of control improvements stronger emphasis was placed on evidence quality, not merely improving the audit outcome. Audit and the risk of recurrence. This improved the group’s review processes, audit trails and the availability of recovery ability to identify systemic weaknesses, prioritise high- reliable information to support financial reporting and programme risk matters and hold the responsible executives and compliance disclosures. Audit readiness is increasingly 2 management teams accountable, so that audit findings being embedded as an ongoing management discipline 3 are closed in a manner that contributes to sustainable rather than as a year-end event. These disciplines are Improved improvements in the control environment. central to improving reporting integrity and rebuilding Strengthening execution of the stakeholder confidence. of Eskom’s external audit internal control process environment 59 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reinforcing controls and assurance continued EVALUATING EXTERNAL AUDIT STRENGTHENING PFMA COMPLIANCE findings. The programme is being managed through OUTCOMES Irregular expenditure incurred during the year prioritised workstreams, defined review criteria, PFMA compliance remains one of the most visible totalled R4.9 billion, with only R28 million escalation protocols and quality assurance processes. indicators of the work still required to improve relating to new matters. The remainder related By addressing the backlog, management will be better EXTERNAL AUDIT OPINION Eskom’s control environment. Management has The independent auditors, Deloitte & Touche, to existing multi-year contracts that will continue positioned to focus on real-time identification and continued to implement targeted interventions to issued a qualified opinion relating to the to attract irregular expenditure until condoned remediation of PFMA non-compliance. The balance strengthen PFMA compliance and related controls, quantification and disclosure of information or removed. Approximately 70% of the irregular for the comparative period was restated because of address historical backlogs as well as improve the relating to irregular expenditure required in expenditure incurred in FY2026 relates to two expenditure in previous years that was only confirmed completeness, accuracy and timeliness of PFMA terms of the PFMA, as the associated financial incidents covering procurement of fuel and as irregular in the current year after conclusion of the reporting. Given the breadth of PFMA and related records were not complete. The auditors have construction equipment. assessment and determination processes. legislative requirements, this remains a systemic raised material findings in respect of the lack group-wide challenge that requires a coordinated, of completeness of Eskom’s reported irregular multi-year response supported by clear ownership, GR For further detail on the restatement and backlog, refer expenditure, both relating to the current stronger controls, enhanced oversight and effective GR PFMA information required by National Treasury to “Disclosure of information under the PFMA” in the year and cumulative balances. Notably, the consequence management. regulations is disclosed in the governance and governance and remuneration report qualification no longer extends to the accuracy remuneration report of irregular expenditure reported or to losses Interventions are progressively shifting from simply due to criminal conduct, reflecting the progress remediating historical matters to preventing further The programme has also supported a more made through the audit recovery programme non-compliance through enhanced governance disciplined approach to consequence management. AFS D  isclosure of current year PFMA information is and associated PFMA remediation initiatives. discipline and stronger integration between Historically, one of the key weaknesses in PFMA provided in note 52 in the financial statements. While this represents meaningful progress, operations, procurement, contract management, The disclosure includes details of disciplinary action reporting has been the disconnect between the addressing the remaining qualification continues finance, legal, Internal Audit and PFMA functions. Key and criminal sanctions identification of non-compliance, the determination of to be a priority for management and the Board. improvements include quality review processes, early- financial misconduct, and consequence management, warning mechanisms, enhanced monitoring of matters recovery and closure. Matters are now being tracked Except for the above qualification, the financial A dedicated programme has been instituted to through the full lifecycle to reinforce accountability – requiring consequence management or further statements are considered to be fairly presented address the backlog of PFMA assessments and consistent with the Board’s expectation that PFMA investigation, as well as continuous sample testing to in terms of IFRS Accounting Standards. determinations for irregular as well as fruitless and remediation must be accompanied by appropriate identify potential control weaknesses and compliance wasteful expenditure, as these are a key contributor to corrective action and consequence management. The auditors’ report also includes a material risks before they result in reportable incidents. historical PFMA reporting challenges and external audit uncertainty relating to Eskom’s ability to continue as a going concern, driven by factors Addressing the underlying causes of the external including dependence on Government support; audit qualification remains a priority, supported uncertainties related to the achievement of by improved monitoring of the end-to-end PFMA operational assumptions; the determination reporting process and ongoing oversight through the of regulated revenue by NERSA; financial risks PFMA Loss Control Function and PFMA reporting associated with World Bank funding of the function. Enhancing the capacity and throughput of Medupi flue gas desulphurisation, declining sales, these functions remains a focus area to support the municipal arrear debt and energy losses; as well timely identification, assessment, determination and as the impact of unbundling and market reform. reporting of PFMA matters. Training and awareness However, these matters do not affect their initiatives are also being intensified to improve opinion. understanding of PFMA requirements and promote more consistent compliance across the group. This is intended to reinforce accountability at the point AFS R  efer to the independent auditor’s report in the where risks originate, rather than only at the point financial statements for further information of reporting. 60 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Reinforcing controls and assurance continued The Board recognises that this cannot be treated The Board has acknowledged management’s progress as a standalone compliance exercise. PFMA findings in reinforcing controls, while noting that significant are not merely reporting matters; they arise from deficiencies remain. Continued reliance on external weaknesses in the underlying control environment. assurance providers in certain areas, persistent PFMA For this reason, the Board’s oversight has focused not compliance challenges and inconsistent consequence only on improving the completeness and accuracy management all indicate that further maturity is of PFMA reporting, but also on strengthening required. The Board will therefore continue to closely Eskom’s broader control environment and combined monitor remediation progress, with particular focus assurance model. on the sustainability of improvements, the quality of management oversight and the consistent application Over time, these interventions are intended to embed of accountability where controls fail. a more mature PFMA compliance environment in Looking ahead, the Board’s direction is clear: Eskom which non-compliance is identified earlier, assessed must move its control environment from partial consistently, reported accurately and remediated effectiveness towards sustainable control maturity. effectively – reinforcing responsible stewardship of The focus will be on embedding the gains achieved public resources and strengthening confidence in the through the audit recovery programme, strengthening group’s financial reporting. first-line ownership of controls, maturing the combined assurance model, advancing disciplined Encouragingly, the external audit qualification has PFMA remediation and applying consequence narrowed relative to the prior year and the value management more consistently. The measure of of new irregular expenditure arising during the year success will not only be an improved audit outcome, was limited – an early indication that strengthened but also clear evidence that control discipline has been controls are beginning to take effect. embedded in how Eskom plans, operates, reports and holds itself accountable. OVERSEEING THE COMBINED ASSURANCE MODEL The combined assurance model provides a structured framework for integrating assurance activities across line management, specialist functions as well as internal audit and external assurance providers, culminating in oversight by the Audit Committee and the Board. However, its effectiveness remains dependent on strengthening first-line monitoring and management assurance. The Board has requested a maturity assessment of the combined assurance model to be initiated in the coming year, including assessment of the structure, operating model and capacity of the internal audit function and the assurance architecture required to support the future group structure. In addition, we are implementing an iGRC platform to improve visibility across these activities. 61 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Upholding good governance MAINTAINING INTEGRITY AND STRENGTHENING GOVERNANCE Key improvements during the year The Board recognises that Eskom’s sustainability depends not only on improved operational and financial performance, but also on visible progress • Eskom’s response to criminality and other misconduct matured in strengthening integrity and rebuilding trust. The Board continues to set the tone and challenge progress, while ensuring that management’s actions through coordinated prevention, detection, investigation, address the underlying weaknesses that enable any form of misconduct to occur. correction and oversight Our approach is built around five mutually reinforcing pillars: • Crime-related incidents and losses reduced • Raptor Fusion Centre launched to prioritise high-impact security and forensic matters • Security technology, incident reporting and monitoring capabilities strengthened • No Priority 1 cyber security incidents reported Prevention Detection Investigation Correction Oversight and • Procurement controls, probity reviews and supplier integrity governance measures enhanced Strengthening ethics, Enhancing whistle-blowing Conducting intelligence-led Translating lessons learned Strengthening governance • Supplier integrity policy approved and the Supplier Review governance, controls, mechanisms, cyber security investigations through into control improvements, structures, assurance Committee re-established process and systems to limit capabilities, monitoring and specialist forensic and while driving accountability activities and accountability • Forensic assessment responsiveness remained strong, with opportunities for criminal data analytics to identify security capabilities in through control mechanisms to improve risk continued focus on whistle-blower reports and reported incidents activity and unethical emerging risks sooner collaboration with law remediation, disciplinary management, controls and behaviour enforcement agencies action, supplier sanctions compliance Key challenges to be addressed and criminal referrals • Infrastructure crime and electricity theft remain material threats to operational reliability, energy security and revenue protection • Historical forensic investigation backlogs continue to affect This integrated approach recognises that governance failures cannot be addressed only after incidents occur. They must be prevented through stronger investigation and disciplinary turnaround times controls, detected earlier through better data and monitoring, investigated efficiently, corrected through effective consequence management, and • Procurement and contract management remain high-risk areas overseen through robust governance structures. This is central to protecting Eskom’s assets, safeguarding revenue, supporting operational recovery and rebuilding stakeholder confidence. • Cyber risk continues to evolve, exacerbated by legacy systems and the convergence of operational and information technology • Recurring forensic findings point to underlying weaknesses in The Board recognises that Eskom’s governance recovery depends on moving from reactive responses to proactive prevention, disciplined control execution, first-line assurance and management oversight, investigation and consistent consequence management. policy adherence and conflict of interests • Consequence management requires more consistent and timely execution FY2027 priorities WHERE TO FIND MORE • Further strengthen preventative controls and early detection GR G overnance and remuneration report SR Sustainability report mechanisms  "Upholding good governance”  “Our ESG approach” • Continue reducing forensic investigation backlogs by strengthening internal and external forensic resources • Expand intelligence-led investigations and data analytics capabilities • Strengthen cyber security resilience and modernise legacy technology platforms • Continue implementing procurement digitisation and system-based controls • Improve coordination between investigations, control remediation, disciplinary action and criminal referrals • Strengthen Board and Exco oversight of consequence management and the response to crime, fraud and corruption 62 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Upholding good governance continued PROTECTING CRITICAL INFRASTRUCTURE Coal security remained an important focus area, given STRENGTHENING CYBER SECURITY AND Further initiatives include the implementation of a THROUGH PHYSICAL SECURITY its link to primary energy security and generation DIGITAL RESILIENCE zero-trust network architecture, next-generation Crime-related risks such as the theft of electrical performance. Targeted crime-prevention initiatives Cyber security and digital resilience have become firewalls, strengthened endpoint protection and the cable, coal, diesel and fuel oil, as well as illegal and disruptive operations across the coal supply chain increasingly important to Eskom’s risk landscape as development of an artificial intelligence (AI) security connections, meter tampering, ghost vending, supported the detection of potential theft, fraud information technology and operational technology standard to support the safe adoption of emerging infrastructure vandalism and sabotage, and other and adulteration risks. Together with strengthened become more interconnected. Cyber security risks technologies. Cyber security awareness and phishing offences continue to threaten primary energy security, supplier oversight and coal quality verification have implications for critical infrastructure, the reliable simulation exercises were conducted during the year operational performance, revenue protection and processes, these interventions contributed to supply of electricity and revenue protection. to strengthen employee vigilance. financial sustainability. improved confidence in the integrity of coal deliveries. We have strengthened our cyber security posture The Board’s oversight of cyber security increasingly The Board continued to consider the security risks through several initiatives across people, processes extends beyond defensive controls. Eskom’s affecting the group together with management’s LAUNCH OF THE RAPTOR FUSION and technology. Although we remain exposed digitalisation and AI strategy is in the process of response through Eskom’s dedicated Group CENTRE to cyber security risks associated with certain being finalised and will integrate digital technology, Investigations and Security Department (GIS), We officially launched the Raptor Fusion unsupported legacy systems, no Priority 1 cyber data, cyber security, operational technology and AI which has enabled a more coordinated approach Centre at Megawatt Park on 6 February 2026. security incidents were reported during the year, initiatives into a single enterprise-wide roadmap. to managing these risks, implementing preventative This dedicated unit within GIS is focused on indicating that cyber security controls and monitoring measures and investigating incidents. Fewer crime- addressing high-priority incidents involving measures are contributing positively to the mitigation IMPROVING PROCUREMENT AND SUPPLY related incidents and lower associated losses were organised crime, infrastructure sabotage of cyber risks. However, the Board recognises CHAIN INTEGRITY recorded compared to the prior year, while arrests and significant economic offences through that cyber threats continue to evolve; the ongoing Procurement and supply chain management (P&SCM) and recoveries improved. intelligence-driven investigations and rapid modernisation of technology platforms is a key also remains a high-risk area due to the scale of response interventions. focus area. expenditure involved and the historic link between procurement weaknesses, irregular expenditure, supplier misconduct, fraud and corruption. The Physical security Eskom has continued to modernise its security Cyber security and digitalisation Board recognises that a strong ethical culture and environment, including the rollout of a Security effective governance are fundamental to procurement Crime-related incidents Incident Management Application with real-time monitoring and enhanced analytical capabilities. Zero integrity and ensuring that procurement activities are conducted in a manner that is fair, equitable, Priority 1 cyber security incidents 2 345 13% We are also evaluating and deploying advanced security technologies such as integrated surveillance, transparent, competitive and cost effective as required by the Preferential Procurement Policy OVS migrated to a more secure environment, Estimated losses intelligent analytics and drone-based monitoring. with system replacement underway Framework Act, 2000. These initiatives are intended to improve hotspot identification, proactive deployment of security Zero-trust architecture and enhanced cyber During the year, Eskom undertook several initiatives R191 million 18% resources, incident visibility and response controls in progress aimed at improving procurement integrity. These included the use of National Treasury’s Central coordination. Digitalisation and AI strategy being developed Arrests Supplier Database for informal tendering requests These outcomes demonstrate progress, but the Microsoft Copilot and data analytics capabilities for quotation, enhanced monitoring of low-value Board remains conscious that infrastructure crime being rolled out procurement mechanisms, the continued streamlining 505 18% is a significant risk to energy security that must be of supply chain management policies and procedures, addressed. The Board will continue to oversee and the reinstatement of proactive assurance and full- Recoveries management’s efforts to strengthen preventative scope probity reviews for high-value tenders. The migration of the online vending system (OVS) security measures, foster better collaboration with infrastructure to a more secure environment was a R34 million 38% law enforcement and national security structures, and ensure that security-related control weaknesses are significant control improvement, particularly given the historic vulnerabilities that contributed to the Convictions addressed. generation of illicit prepaid electricity tokens and associated revenue and energy losses. Eskom is also 13 (2025: 13) accelerating implementation of a new secure vending platform to replace the current system. 63 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Upholding good governance continued The Board also approved a supplier integrity ADVANCING FORENSIC INVESTIGATIONS AND REINFORCING CONSEQUENCE During the year, fraud and corruption risk reporting policy to strengthen expectations for supplier MANAGEMENT was consolidated into a single enterprise-wide conduct, including confidentiality, fair tendering, Forensic investigations remain central to Eskom’s ability to prevent, detect and respond to criminality and Priority 1 operational risk, strengthening executive avoidance of conflicts of interest, reporting of unethical behaviour. The results of these investigations strengthen accountability, inform control improvements oversight and enabling a more coordinated response misconduct and consequence management when and reduce the risk of recurrence. to what remains one of the group’s most significant suppliers breach Eskom’s ethical, procurement or governance risks. contractual requirements. This was complemented During the year, Eskom continued to prioritise the timeous assessment of reported incidents through by the re-establishment of the Supplier Review whistle-blowing channels to identify potential misconduct at an early stage. Performance in assessing reported The Board is particularly focused on ensuring that Committee to support more responsive and incidents remained strong, but the timely commencement and conclusion of follow-up investigations continue to investigations lead to appropriate outcomes and consistent sanctions of suppliers for wrongdoing, be affected by the significant volume of historical forensic cases requiring attention. At year end, the majority of that consequence management is implemented including removal from Eskom’s supplier database, active forensic matters related to prior years, highlighting the scale of legacy matters still requiring resolution. effectively, in a consistent and timely manner. Exco referral to National Treasury for restriction, or and the Board continue to strengthen oversight of implementing temporary purchasing blocks on consequence management processes throughout the Whistle-blowing, forensic investigations and consequence management Eskom’s procurement systems. group. However, delays in concluding investigative and disciplinary matters remain a challenge, particularly Procurement has continued to be modernised by 10 594 235 69 299 where cases are complex or relate to historical digitising workflows and strengthening automated New incidents reported matters. A key focus is the strengthening of the New forensic Employees recommended Criminal cases registered controls, including the implementation of enhanced through whistle-blowing integration between forensic investigations, control investigations initiated by Forensics for sanction with SAPS at year end inventory, warehouse and price-verification systems channels remediation, employee disciplinary processes, to improve stock visibility and procurement accuracy. supplier sanctions and criminal referrals. We continue Price benchmarking and contract renegotiations, 96 92 to collaborate closely with law enforcement by supported by market pricing tools, are also being 10 604 45 Employee disciplinary supporting external investigations as well as criminal implemented to ensure that Eskom receives enhanced Criminal cases completed and civil cases, to advance investigations, arrests, Investigations completed action relating to forensic value for money. Preliminary assessments by year end prosecution outcomes and recoveries. matters concluded completed and matters Going forward, the digitalisation and optimisation of referred to the most Looking ahead, Eskom’s governance and integrity procurement processes, including the implementation appropriate resolution 710 64 24 agenda will continue to focus on reinforcing ethical of a full-scale eProcurement solution, aim to reinforce channels Forensic cases Disciplinary cases Criminal cases at trial conduct, embedding stronger preventative controls, controls, improve master data quality, enhance fraud outstanding at year end outstanding at year end stage by year end improving detection and monitoring, accelerating detection and support real-time analytics to support investigations and strengthening consequence informed decision-making. The next phase will also management. For the Board, the measure of progress require procurement integrity to be embedded in Completed investigations continued to identify recurring themes, including procurement and recruitment will not only be fewer incidents or more investigations day-to-day operations, supported by a stronger irregularities, undeclared conflicts of interest, non-adherence to policies, circumvention of controls, incidents of completed, but also whether governance failures are control environment and more mature combined fraud and corruption, and insufficient first-line assurance and management oversight. These findings reinforce the being prevented, accountability is being enforced and assurance model. importance of management accountability, consistent control execution and a high-performance, ethical culture. trust is being rebuilt through visible, sustained action. Management is implementing several interventions to improve investigative throughput, quality and responsiveness. These include the establishment of a dedicated project management office to support resolution of long-outstanding forensic investigations and disciplinary matters. Furthermore, we have initiated a process to appoint a panel of specialised external forensic service providers to supplement internal resources and provide access to specialist capabilities – including digital forensics, advanced data analytics and other forensic disciplines – to accelerate the resolution of legacy matters, while strengthening the quality and consistency of investigative outcomes. 64 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Growing our people HUMAN CAPITAL PERFORMANCE FOR FY2026 AT A GLANCE Our people – their skills, knowledge, experience, Group Attrition wellbeing, health and safety – together with the headcount rate culture, leadership and values that shape how we work and how we deliver on our mandate 3% to 43 274 5.35% (2025: 42 030) (2025: 5.58%) Our workforce sits at the centre of Eskom’s operational recovery and the modernisation of the electricity sector. Building a skilled, representative and accountable workforce, anchored by a high- Employee Employee and performance, ethical culture, remains central to how we deliver on lost-time injury rateSC contractor fatalities our mandate and create long-term value for our shareholder, lenders, employees and the country we serve. 0.18 7 (2025: 0.23) (2025: 3) During FY2026, our focus was on stabilising the workforce, strengthening safety and wellbeing, embedding a high-performance, ethical culture and equipping our people with the technical, digital and leadership capabilities required for a modernising market. We saw Female Disability meaningful progress, including the conclusion of a multi-year wage representation representation agreement that provides labour certainty into the medium term, renewed external recognition of our people practices, sustained 38% 3.36% investment in learning and development, and continued advancement of (2025: 37%) (2025: 3.11%) transformation across the workforce. Alongside these gains, we recognise the areas that require sustained focus. Safety remains our foremost responsibility – employee, contractor Learner YES and public fatalities are unacceptable and a reminder that our value of pipeline learners Zero Harm must be a daily discipline. Each fatality incident is thoroughly investigated to identify root causes and implement corrective actions, 42% to 3 713 931 and the lessons are embedded in the controls, behaviours and leadership (2025: 2 609) (2025: 612) accountability that keep our people, contractors and communities safe. In parallel, exposure to loss of knowledge through retirement, critical skills gaps, contractor safety and the workforce transition linked to unbundling / Favourable movement / Unfavourable movement and the Just Energy Transition (JET) remain material people risks that we SC KPI included in the shareholder compact for FY2026. actively manage. 5 WHERE TO FIND MORE 65 Growing our people GR G overnance and remuneration report PR Performance report 70 Strengthening our  “ Report by the Human Capital and Remuneration  “Growing our people” infrastructure Committee”  “Non-technical statistics” 75 Interacting with the  “Ensuring fair remuneration” SR S ustainability report environment  “Our social footprint” 82 Sustaining communities 65 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Growing our people continued OUR PEOPLE STRATEGY Change in group headcount Employee complement by occupational level, number Our People Plan is anchored on four priorities and sets the strategic direction for how we attract, develop, 43 274 engage and retain the skills required to deliver on our mandate. It is guided by six culture cornerstones – people 42 030 Top 40 421 39 601 40 625 management 14 prioritisation, operational excellence, financial prudency, accountability, customer centricity and being values Senior driven – that shape how we work, how we lead and how we hold each other to account. management 385 Middle management Together, they strengthen workforce capability, foster a safe and inclusive environment, and reinforce the and professionals 7 751 accountability and ethical culture required to deliver sustained performance. The wellbeing, health and safety of Skilled 23 941 our employees, contractors and the communities we serve is fundamental to how we create sustainable value. Semi-skilled 10 874 Our commitment to Zero Harm remains the core value that shapes our decisions, behaviours and leadership across the organisation. 2022 2023 2024 2025 2026 Unskilled 309 Fostering a Creating a future-fit Employee lost-time injury rate Fatalities by category Being an employer high-performance, Building critical and productive of choice ethical culture capabilities workforce 0.29 Attracting, retaining and Building a culture Developing the technical, Building an agile, digitally engaging the skills Eskom anchored in accountability, digital and leadership enabled and productive needs through a integrity and consistent capabilities required to organisation, structured to 0.23 compelling employee value ethical behaviour, guided sustain operational deliver on the unbundling 20 proposition, competitive by our six culture performance today and roadmap and the Just 11 rewards, meaningful career cornerstones, as the modernise the electricity Energy Transition 15 opportunities and an foundation for trust, sector for the future inclusive workplace delivery and long-term 0.18 3 3 performance 2 4 2 1 2024 2025 2026 2024 2025 2026 Our employee value proposition (EVP) integrates meaningful work, development opportunities, competitive Employees Contractors Public rewards, recognition and an inclusive employee experience. Together with our refined total rewards framework, 1 319 it supports the attraction, retention and engagement of the critical skills needed to deliver Eskom's strategy. 2 953 (3%) Underpinning these priorities, our talent acquisition strategy applies a structured sourcing framework that (7%) aligns workforce planning to our strategic imperatives. This is reinforced by a revised team-based performance 3 431 (8%) management model that creates a clear line of sight from the shareholder compact and Corporate Plan through 16 484 to team and individual accountabilities, strengthening fairness, consequence management and our high- (38%) performance, ethical culture. 43 274 43 274 Together, our four People Plan priorities and six culture cornerstones transform Eskom’s employees into the collective capability required for sustained operational recovery, transformation and long-term sustainability. As 35 571 26 790 (82%) (62%) the business modernises, our people modernise with it, supported by targeted investment in transformation, rewards, safety and wellbeing, learning and labour relations. African White Coloured Indian Male Female Eskom’s recovery is powered by 43 274 Guardians. As the business modernises, our people modernise with it and every investment in their capability, safety and wellbeing is an investment in the electricity system South Africa needs. – Dan Marokane, Group Chief Executive 66 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Growing our people continued HOW HUMAN CAPITAL ENABLES OUR STRATEGY WORKFORCE COMPOSITION AND TALENT Our people are the primary enabler of Eskom's four strategic objectives, translating strategic intent into operational delivery, sector leadership and long-term sustainability. ACQUISITION Our people remain central to how we create long- Pursue financial and operational Position Eskom as energy sector term value. During the year, workforce growth, sustainability leader Modernise the power ecosystem Drive a just and inclusive transition lower attrition together with sustained investment in learning and development strengthened organisational Fix the current business Prepare for competitiveness Leverage technology Transition responsibly capability and operational resilience. We advanced Delivering the operational and financial Building the leadership pipeline and Equipping our workforce with the Reskilling coal-fleet employees through transformation, meeting employment equity targets turnaround through our people's skill, future-fit skills for a liberalising, digital, data and cyber capabilities that the Clean Energy Training Centre, across most occupational levels, exceeding the dedication and disciplined execution decarbonising industry underpin grid modernisation Nuclear School and Just Energy JET national disability target and maintaining our level 3 repowering initiatives B-BBEE rating mainly due to our participation in the Youth Employment Service (YES) programme. We advanced gender inclusion through our Women in Power initiative, which extends the Eskom Women “To lead is to serve. Even when it's difficult, keep serving.” – Advancement Programme through leadership Dr Candice Hartley, Chief People Officer development, mentoring and career progression opportunities. OUR PEOPLE VALUE STORY These gains were supported by our Build-Buy- HOW WE IMPACTED VALUE IN FY2026 Borrow-Bot talent acquisition approach, which Our People Plan outcomes translated into measurable gains in delivery, capability and labour certainty, offset by erosion caused by safety incidents, workforce fatigue and combines internal talent development, targeted skills exposure. external recruitment, flexible resourcing and technology-enabled solutions to address current and VALUE CREATED VALUE PRESERVED VALUE ERODED future capability requirements. During the year, we also adopted a team-based performance management • Provided labour stability through a three-year • Retained institutional knowledge through lower • Fatalities among employees, contractors and model that improves visibility of strategic priorities, wage agreement which supports sustained attrition and focused succession planning members of the public impacted our safety encourages collective ownership of results and creates operational focus • Secured future technical capability through performance and social licence to operate a clearer link between performance, recognition and • Advanced workforce representation and investment in the Eskom Academy of Learning • Retirement exposure and sector transition career development. strengthened the talent pipeline and our (EAL) Smart Campus and succession pipelines continue to exert pressure on critical skills developmental impact through the enrolment of availability REWARDS AND RECOGNITION • Reinforced employer attractiveness through a 1 293 new learners Several milestones reinforced this progress. We second consecutive Top Employer South Africa • Increasing wellbeing and mental health opened wage negotiations with our trade unions in • Invested R2.2 billion in workforce capability certification challenges require ongoing support through November 2025, significantly earlier than in previous through technical, leadership and future-energy • Maintained labour stability through ongoing targeted interventions cycles, with the aim of concluding an agreement skills structured engagements with organised labour • Divergent positions during wage negotiations before the 2026 winter period. Following four rounds • Strengthened workforce readiness for a • Invested R50.4 billion in our people through reflected the ongoing complexity of labour of negotiations, we concluded a three-year collective changing energy landscape through JET reskilling gross employee benefits relations wage agreement with bargaining unit employees in and redeployment initiatives • Sustained compacting and assessment • Consequence management requires more April 2026, which was signed by the National Union of • Supported 1 013 employees through further completion rates above 95%, preserving a consistent and timely execution Mineworkers (NUM) and Solidarity. The agreement study programmes and awarded around 200 consistent performance and accountability • Grievance turnaround times remained worse supports cost predictability and labour certainty in the bursaries to young South Africans studying in culture across the group than target, requiring continued focus on medium term, while enabling continued operational critical fields aligned with South Africa’s skills procedural consistency focus at a critical time for the electricity sector. development agenda Although the National Union of Metalworkers of • Enhanced accountability, collective ownership South Africa (NUMSA) did not sign the agreement, it and alignment between strategic priorities and is binding on all bargaining unit employees. organisational delivery through team-based performance management 67 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Growing our people continued NUMSA subsequently referred a dispute to the KEY RISKS TO HUMAN CAPITAL AND HOW WE MANAGE THEM Commission for Conciliation, Mediation and Human capital risks have direct implications for how we deliver, transform and create sustainable value. Proactively managing them is central to preserving critical capability Arbitration (CCMA), and we are confident in and sustaining a resilient, high-performing organisation. defending this matter with support from NUM and Solidarity. Key risks How we manage these risks We progressed the review of our total rewards Safety and Zero Harm Reinforcing safety leadership accountability, critical risk controls and life-saving rules, supported by structured fatality investigations that inform framework to ensure that it remains competitive, organisation-wide learning equitable and aligned to our long-term workforce Strengthening contractor safety through tighter pre-qualification measures, on-site supervision and integrated performance reviews requirements. Improved organisational performance enabled us to continue the short-term incentive (STI) Supporting public safety through a quarterly Public Safety Forum, community engagements and collaboration with other state-owned companies scheme, strengthening the link between organisational performance and employee rewards. The STI scheme Workforce fatigue, Approving an integrated mental health framework during the year, focused on prevention, early intervention and sustained support rewards delivery against clear operational and financial mental health and wellbeing Extending our fatigue management programme to more than 22 000 employees and contractors, complemented by expanded employee assistance, gatekeepers and is self-funded from improved wellbeing and disability inclusion initiatives performance. A second consecutive Top Employer South Africa certification affirmed our employee Skills scarcity and Reskilling and redeploying employees by FY2031, supported by the Clean Energy Training Centre, Nuclear School and critical skills progression value proposition, supporting our ability to attract and specialist attrition framework retain critical skills. Ageing workforce and Refining the total rewards framework to remain competitive within our affordability parameters SAFETY AND WELLBEING knowledge loss Notwithstanding these achievements, safety outcomes remain a critical concern. While our employee lost- Labour relations Transferring knowledge from employees over the age of 55 to the next generation through the Skills and Advanced Generational Expertise (SAGE) time injury rate continued to improve, the increase in programme, together with an expanded learner pipeline employee and contractor fatalities indicates that we Workforce transition Capturing critical expertise systematically through the SAGE knowledge-transfer programme, supported by accelerated succession planning, structured must do more to embed safe behaviours consistently linked to unbundling mentorship and targeted development of women in technical roles through the Women in Power initiative across the organisation. We are strengthening our safety culture by reinforcing leadership accountability, Culture, ethics and Advancing culture transformation anchored in the six culture cornerstones, supported by mandatory ethics training, conflict of interest declarations and improving risk management and embedding critical consequence confidential whistle-blowing mechanisms risk controls across our operations. management Driving investigations and disciplinary outcomes through Group Investigations and Security, in partnership with the SIU, NPA and SAPS The implementation of effective consequence management, increasing wellbeing and mental health Strengthening management oversight, monitoring close-out of long-outstanding disciplinary actions and securing external support from accredited labour dispute bodies to expedite disciplinary hearings pressures, as well as the complexity of ongoing labour engagement due to the restructuring of the group, Digital and cyber Rolling out group-wide Copilot artificial intelligence (AI) adoption with role-specific training, expanded digital and data literacy, analytics and cyber also require ongoing attention. capability readiness security programmes through the EAL, supported by strategic partnerships with Microsoft and academic institutions Integrating digital and cyber capabilities into the critical skills progression framework as core future-fit skills Looking ahead, we are focused on building critical skills, strengthening leadership, advancing transformation and embedding a high-performance, ethical culture that sustains value over time. 68 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Growing our people continued OUTLOOK TRADE-OFFS AND INTERCONNECTIONS WITH SHORT TERM: FY2027 MEDIUM TERM: FY2027 TO FY2031 LONG TERM: BEYOND FY2031 OTHER CAPITALS Investment in our people during FY2026 required a • Strengthen safety performance in line • Maintain employee LTIR below 0.25, • Complete the workforce transition based measured use of financial capital, while strengthening the with Zero Harm reduce workplace injuries and ill‑health, on the refined unbundled end state, with manufactured, intellectual, natural as well as social and and entrench Zero Harm discipline separate Generation, Distribution and relationship capitals that underpin Eskom's long-term • Sustain leadership stability through Transmission companies, together with • Achieve 90% successor pipeline coverage sustainability. a fully capacitated Exco and enhance Eskom Green and an independent state- across critical leadership positions succession planning for critical technical owned TSO Manufactured capital: Improved operational and leadership roles • Elevate female representation in senior performance, delivery on generation capacity expansion management and technical roles • Sustain a high-performance, ethical and the Transmission Development Plan, as well as • Appoint a new Group Chief Financial • Reskill and redeploy 15 000 employees culture as the defining source of Eskom's ongoing maintenance delivery all depend on a skilled and Officer, following the early retirement and manage workforce planning within an competitive advantage engaged workforce, reinforcing workforce capability as a of Calib Cassim, and expand the Exco upper headcount limit of around 43 300 • Improve productivity and build a lean, critical enabler of operational reliability structure to include a Chief Risk Officer employees agile and resilient organisation • Continue to embed a high-performance • Deliver the critical skills progression • Maintain a workforce equipped for a Intellectual capital: Investment in training, digital decarbonised, digitalised, competitive and ethical culture across the framework capability, AI adoption, leadership development and electricity supply industry organisation • Scale the SAGE knowledge-transfer critical skills programmes strengthened knowledge programme and succession planning transfer and the expertise required to modernise the • Implement the three-year wage electricity system, supported by the EAL, Clean Energy • Develop a cumulative 2 409 YES learners agreement and conclude the CCMA Training Centre and Nuclear School and fund tertiary education in critical dispute with NUMSA scarce skills through 750 bursaries Natural capital: The transition to a lower-carbon energy • Roll out the integrated mental health future depends on people as much as technology. framework across the group Reskilling, redeployment and future-skill development initiatives are helping to prepare employees for • Scale the Copilot AI training programme emerging energy technologies and new ways of working, • Continue development of an EAL Smart supporting a just and orderly energy transition and the Campus, the Clean Energy Training growth of Eskom Green while maintaining operational Centre and Nuclear School partnerships continuity Social and relationship capital: Employment equity progress, bursaries, learnerships, youth employment initiatives and constructive engagement with organised labour contributed to stronger stakeholder relationships and a more inclusive workforce, while the safety of employees, contractors and members of the public remains integral to our social licence to operate Financial capital: The three-year wage agreement and investments in learning and development, the STI scheme and workforce capability increase employee benefit costs but support labour stability, critical skills retention, the link between performance and reward, and the future capabilities required to sustain operational performance and productivity 69 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Strengthening our infrastructure Despite these achievements, our ageing infrastructure faces ongoing MANUFACTURED CAPITAL challenges. High utilisation rates have accelerated wear and tear, requiring PERFORMANCE FOR FY2026 AT A GLANCE sustained investment in refurbishments and predictive maintenance. The physical infrastructure, plant and equipment we own Technical and non-technical energy losses remain elevated, driven by Energy availability factor OCGT production and maintain – from generation plant to transmission equipment theft, illegal connections and network inefficiencies. Human (EAF) SC (Eskom and IPPs) and distribution networks – that enable us to generate, factors, including fatigue and skills shortages in certain areas, have also deliver and sell electricity reliably to South Africa and impacted operational performance. 65.16% 62% to 1.1TWh (2025: 60.60%) (2025: 2.8TWh) neighbouring countries, support economic growth and Building on the success of our recovery efforts, we are now focusing on facilitate South Africa's energy transition sustainably improving plant performance and restoring plant reliability. With the gains realised to date, we are entrenching the principles of reliability SAIFI SC SAIDI SC and sustainability and driving continuous operational excellence across the Eskom’s infrastructure continues to play a central role in powering South Africa’s business. 11.72 events 35.09 hours economy and supporting the country’s transition to a more sustainable energy (2025: 11.70 events) (2025: 34.91 hours) future. Our focus remains on strengthening the performance of our generation The Transmission Development Plan (TDP) sets out an ambitious strategy fleet, modernising our transmission and distribution networks, and accelerating to deliver more than 4 300km of new transmission lines and around the integration of renewable energy sources. While challenges persist, we 35 000MVA of transmission transformer capacity over the next three years, Distribution are committed to delivering stable, reliable and affordable electricity, driving unlocking grid capacity for new IPP generation. Distribution will continue the rollout of 5.4 million smart meters over the next three years to support Loadshedding energy losses SC innovation and building partnerships that enable long-term growth and energy security for the country. demand flexibility, reduce energy losses and enable customer-centric products and services. 4 days 10.54% The final unit at Kusile, Unit 6, achieved commercial operation on (2025: 13 days) (2025: 10.42%) 29 September 2025, adding installed capacity of 799MW to the grid, We are also investing in battery energy storage systems and research-driven representing an important milestone in restoring base-load reliability. Strong innovation, and we aim to add at least 6GW of clean energy capacity to the improvements in generation and network performance contributed to grid by FY2030 through our newly established renewables business, Eskom System minutes lost Generation capacity significantly reduced loadshedding and improved security of supply, with Green, in support of South Africa’s Integrated Resource Plan (IRP) 2025, <1 minute SC installed the return to service of key generation units supporting a more reliable while maintaining system reliability and affordability. electricity system. 3.10 minutes 799MW By strengthening our core assets, embracing new technologies and fostering (2025: 4.37 minutes) (2025: 799MW) Through the National Transmission Company South Africa (NTCSA), we partnerships, we are building a power system that can meet South Africa’s also commissioned new high-voltage transmission lines and transformer current and future needs of a stable, reliable and affordable supply of capacity to support grid stability and enable the connection of independent electricity. Our progress this year demonstrates our resilience and capacity Transmission lines Transmission capacity power producers (IPPs) and cross-border electricity trade. The continued for transformation, charting the course for energy security and sustainable installed SC installed SC rollout of smart meters to customers and the data purification of customer growth in the years ahead. records have enhanced customer service, contributed to the reduction of 270.8km 4 000MVA non-technical losses and helped to improve revenue collection. (2025: 292.6km) (2025: 2 620MVA) / Favourable movement / Unfavourable movement SC KPI included in the shareholder compact for FY2026. WHERE TO FIND MORE  eloitte has qualified the FY2026 values reported for SAIDI and IR D SAIFI on the basis that the process to determine the values does GR G  overnance and remuneration report PR Performance report SR Sustainability report not align to the method set out in Eskom’s approved internal  “Report by the Business Operations  “Strengthening our infrastructure”  “Our ESG approach” measurement specification documents. For more information, Performance Committee”  “Technical statistics” refer to the discussion under “Sustainability indicators selected  “ Report by the Investment and Finance for reasonable assurance” on page 103 of the report, as well  “Plant information” Committee” as “Independent sustainability assurance report by Deloitte & Touche” from page 105 of the report 70 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Strengthening our infrastructure continued Generation performance Network performance STRATEGIC ENABLERS EAF % PCLF, UCLF % Events/hours Minutes • Enable predictive maintenance, real-time diagnostics and smarter grid operations across the value chain 100 40 through digital transformation 40 5 35 • Develop partnerships with original equipment manufacturers (OEMs) and utilities to transfer specialist skills 80 30 30 4 back to the business 60 25 • Advance market and regulatory reforms required for grid access, including readiness for the South African 3 20 20 Electricity Market (SAWEM) 40 15 2 • Mobilise blended finance and public-private partnerships to fund infrastructure investment and enable large- 10 20 10 scale projects 1 0 5 • Strengthen execution capability by reskilling 15 000 employees to create a future fit workforce by FY2031 0 2022 2023 2024 2025 2026 0 0 2022 2023 2024 2025 2026 EAF PCLF UCLF SAIFI SAIDI OUR INFRASTRUCTURE VALUE STORY System minutes lost for events <1 minute We remain committed to reducing non-technical losses, driving innovation, reducing emissions and developing a OUR INFRASTRUCTURE STRATEGY diversified generation and energy storage portfolio. These initiatives will support the transition to a lower-carbon Our infrastructure strategy is to maintain, modernise and expand our assets as required – supported by a set of electricity system, aligned with the objectives of the IRP 2025, while enhancing energy security and creating strategic enablers that convert capital deployment into sustained reliability and future readiness. sustainable value for the country. HOW WE IMPACTED VALUE IN FY2026 Distribution Generation reliability Transmission expansion modernisation and Future energy and sustainability and grid resilience loss reduction and innovation VALUE CREATED VALUE PRESERVED VALUE ERODED Sustaining plant Expanding and Modernising customer Investing in battery • Invested R41.2 billion in • Invested R30.5 billion in • Non-technical losses estimated performance and modernising grid capacity interfaces, improving storage, gas projects and generation, transmission and repairs and maintenance at 13.1TWh driven by energy extending asset life to enable capacity growth service reliability and clean energy technologies, distribution assets theft and illegal connections • Sustained strong through disciplined and the integration of reducing non-technical supported by research- • Improved EAF to 65.16%, outage execution and • Ageing plant and network assets maintenance and renewable energy losses driven innovation the highest level since maintenance compliance require substantial investment to refurbishment FY2020 • Installed 610 223 smart maintain performance • Reduced OCGT usage by meters during the year, • Demand decline driven by Sustaining reliability while building the electricity system of the future demands disciplined execution across 62%, with a reduction of although the rollout smelter closures, with increasing three connected fronts – recovering the existing fleet, modernising the grid and building the diversified R10.6 billion in primary remains behind target embedded generation reducing portfolio needed for a competitive, decarbonising industry. energy costs • Limited loadshedding sales volumes • Commissioned 4 000MVA to only four days during • Surplus generation capacity of transmission transformer April and May 2026 resulting in underutilised assets HOW MANUFACTURED CAPITAL ENABLES OUR STRATEGY capacity • Extended operating and triggering take-or-pay • Returned Medupi Unit 4 and licences for both Koeberg obligations Pursue financial and Position Eskom as Modernise Drive a just Koeberg Unit 1 to service, units by 20 years • Delays in installation of operational energy sector leader the power and inclusive restoring 1 650MW capacity transmission lines due to sustainability Prepare for ecosystem transition to the grid contractor, servitude and Fix the current business competitiveness Leverage technology Transition responsibly procurement challenges Restoring and Ring-fencing Expanding and Enabling renewable maintaining a reliable infrastructure across the modernising transmission energy integration and asset base that delivers value chain to complete and distribution capacity, the development of From recovery to reliability to renewal – our infrastructure strategy is now affordable electricity and unbundling, and driving using smart storage solutions and about entrenching what we have restored, modernising the grid at pace protects our financial innovation, partnerships infrastructure and digital low-carbon energy recovery and capacity expansion solutions to improve technologies to change and building the diversified portfolio South Africa needs for a competitive, to enable market reform performance and the energy mix and low-carbon future.” – Dan Marokane, Group Chief Executive efficiency reduce emissions 71 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Strengthening our infrastructure continued RESTORING AND SUSTAINING FLEET MODERNISING AND EXPANDING THE GRID BUILDING THE FUTURE GENERATION AND RELIABILITY NTCSA continued to accelerate the implementation STORAGE PORTFOLIO Manufactured capital enables Eskom to deliver of the TDP, which is the cornerstone of future grid The IRP 2025 provides the long-term signal for the reliable electricity and creates value for customers, expansion, targeting approximately 14 500km of new country's future generation mix, envisaging around communities, industry and the broader economy. transmission lines and 132 650MVA of transformer 80GW of variable renewables, 18.3GW of gas-to- During FY2026, our infrastructure strategy continued capacity by 2034 to unlock new generation investment power, 5.2GW of nuclear and 10GW of storage by to deliver sustained plant performance gains, which, and facilitate renewable energy integration, in 2042, anchored by a sustained EAF of at least 70% at together with the recovery of critical base-load collaboration with private sector partnerships. our coal-fired stations. capacity, enabled us to materially reduce reliance on emergency generation. Grid access prioritises projects that have The launch of Eskom Green, our wholly owned demonstrated sufficient technical, environmental, renewable energy subsidiary, will accelerate our The generation energy availability factor (EAF) financial and permitting readiness, thereby improving participation in renewables, with an initial pipeline increased to 65.16%, reflecting disciplined outage connection efficiency and reducing speculative of 2GW of renewable energy and pumped storage execution and sustained progress under the reservation of scarce transmission capacity. capacity advancing from FY2027. We are aiming Generation Reliability and Sustainability Plan. The Curtailment frameworks allow controlled reductions to commission 6GW of carbon-free electricity by plan was significantly refocused and expanded in in generation output from renewable IPPs under FY2030 and up to 32GW by FY2040. Clean coal FY2026 to transition from short-term recovery defined conditions, which facilitates the integration technologies – such as high-efficiency low-emission of plant availability to long-term reliability and of additional renewable energy resources while plant, carbon capture utilisation and storage, direct sustainability as well as operational excellence. The maintaining system security and reliability. sorbent injection and long-duration storage – are next phase is to consolidate these gains by delivering being demonstrated through our Research, Testing reliable and sustainable electricity supply and Distribution continued to modernise the network & Development Department to enable coal to play a strengthening partnerships that enable accelerating through investments in smart metering, network responsible role in the energy transition. grid modernisation. strengthening and loss reduction initiatives. We are targeting the rollout of 5.4 million smart meters Despite these achievements, significant challenges The commercial operation of Kusile Unit 6 in supported by advanced metering infrastructure remain. Eskom's ageing generation fleet requires September 2025 added 799MW of installed capacity by FY2028 as part of a broader programme that sustained investment in refurbishment, predictive to the national grid, while the recovery of Medupi supports revenue protection, customer service maintenance and plant life extension. Unit 4 and Koeberg Unit 1 from extended outages improvement, demand management and the returned 1 650MW to the grid. Both units at Koeberg reduction of non-technical losses. The rollout of received approval to operate for a further 20 years smart meters fell short of the shareholder’s target and each unit was uprated to 940MW nominal for FY2026, largely because of community stoppages capacity after completion of the long-term operation and the impact of adverse weather, and we have The focus has shifted from restoring activities, securing dispatchable low-carbon capacity rephased the programme into FY2027 to recover the performance to sustaining reliability, for decades to come. shortfall. Smart technologies will become increasingly strengthening resilience and building a modern important as customer behaviour evolves. The effect of the above is that loadshedding was power system required to support South Africa's limited to only four days in the year during April and Theft of network infrastructure, network overloading future growth and energy transition. May 2026, compared to 13 days in FY2025, while the and non-technical losses through illegal connections combined production from Eskom and IPP-owned and ghost vending continue to erode revenue and – Dan Marokane, Group Chief Executive OCGTs declined by 62%. impact operational performance. In certain areas plagued by electricity theft and illegal connections which cause overloading of the system leading to localised network failures, Distribution continues to implement load reduction in these areas to mitigate against this challenge. We aim to eradicate load reduction nationally by March 2027, with much of our remaining focus being concentrated in Gauteng and KwaZulu-Natal, where illegal connections, meter tampering and non-payment continue to present the greatest challenge. 72 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Strengthening our infrastructure continued KEY RISKS TO MANUFACTURED CAPITAL AND HOW WE MANAGE THEM Our financial capital risks are actively managed through a robust risk and resilience framework. TRADE-OFFS AND INTERCONNECTIONS WITH OTHER CAPITALS Key risks How we manage these risks Investing in and operating our infrastructure Business continuity disruption Disciplined outage planning and execution as well as coal quality management creates trade-offs with the other capitals that Extended unplanned outages, systemic plant shape how we prioritise and sequence our Enterprise resilience framework supporting Eskom's ability to anticipate, withstand, respond to and recover from major investment decisions. failures or a national or regional blackout infrastructure disruptions would jeopardise supply security and reverse Human capital: The operational turnaround the recovery has been achieved through the skill and Grid delivery and capacity constraints Accelerated execution of the TDP, including public-private partnerships, procurement reforms and strengthened contractor dedication of our workforce. The reskilling of management 15 000 employees by FY2031, together with Delays in transmission build projects and constrained grid access threaten renewables a dedicated Clean Energy Training Centre Grid access is prioritised for renewable projects that have demonstrated readiness and Nuclear School, is critical to the future integration and unbundling timelines infrastructure agenda Non-technical losses and infrastructure Rollout of smart meters, advanced metering infrastructure and smart operations centre Environmental capital: Continued reliance crime on ageing coal-fired plant continues to emit Strengthened Group Investigations and Security capability harmful atmospheric emissions and delays Theft, illegal connections and vandalism erode sales volumes and revenue Partnerships with law enforcement decarbonisation. Renewable IPPs and the Eskom Green pipeline of renewables and storage Technology-enabled loss detection projects as well as clean coal technologies are closing this gap over time Improved controls over online vending of prepaid electricity tokens Targeted emission-reduction investments, including flue gas desulphurisation (FGD) at Kusile and Medupi (to be retrofitted) Social and relationship capital: Reliable Environmental compliance infrastructure strengthens customer trust, Minimum Emission Standards compliance and Installation of fabric filter plant and nitrogen oxide burners supports economic activity and improves the licence to operate, together with the transition when retiring coal-fired power quality of life, while electricity theft and illegal Repowering, repurposing and reskilling projects at Komati, Hendrina, Arnot and other sites using renewable and clean coal stations technologies connections place pressure on network sustainability and service delivery, which has Supply chain rigidity and geopolitical Diversified sourcing of long-lead items away from concentrated routes coupled with strategic OEM partnerships led to the implementation of load reduction for exposure affected communities Conservative OCGT utilisation and management of diesel stock levels Reliance on long-lead imported equipment and oil-linked liquid fuels exposes the Financial capital: Repairs and maintenance organisation to geopolitical shocks (e.g. the expenditure and significant multi-year capital US-Iran conflict of 2026) expenditure are required to sustain and expand our asset base, together with the cost of Skills, execution and cyber security risk Reskilling of employees for the evolving industry ensuring sufficient resources and skills to reliably Skills shortages, fatigue and elevated cyber operate our infrastructure Strengthening project execution discipline threat levels could compromise the pace of turnaround, delivery of the TDP and the Enhancing digital infrastructure and cyber resilience clean energy pipeline 73 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Strengthening our infrastructure continued OUTLOOK SHORT TERM: FY2027 MEDIUM TERM: FY2027 TO FY2031 LONG TERM: BEYOND FY2031 • Achieve EAF of 68% and continue • Stabilise EAF at 70% and continue • Deliver 14 500km transmission lines and reducing levels of unplanned losses generation refurbishment programmes 132 650MVA transformer capacity by 2034 • Advance battery storage projects and the • Deliver 4 300km transmission lines • Operate in a transformed and initial pipeline of Eskom Green projects and around 35 000MVA transmission competitive market through SAWEM • Accelerate smart meter deployment transformer capacity by 2029 • Develop South Africa’s role as a regional backed by advanced metering • Embed market transformation through electricity hub infrastructure SAWEM • Optimise asset management, network • Reduce non-technical losses and • Deliver 6GW of renewable and storage planning and system efficiency under strengthen network performance capacity through Eskom Green and 3GW a refined group structure, including • Launch SAWEM and prepare for market of new gas capacity separate Generation, Distribution and transformation • Support the pipeline of emerging data Transmission companies as well as Eskom • Eliminate load reduction nationally by centre and flexible-load customer capacity Green and an independent state-owned March 2027 projects for revenue growth TSO • Develop a plan for nuclear new build • Develop regional transmission • Entrench a modern, digitalised and interconnections to unlock new customer-centric grid • Support Government’s independent transmission project (ITP) programme international sales opportunities • Commission new nuclear capacity by 2039 in line with IRP 2025 • Transition to a lower-carbon generation portfolio 74 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Interacting with the environment There was a significant improvement in specific water consumption NATURAL CAPITAL compared to last year due to limited use of older, wet-cooled stations PERFORMANCE FOR FY2026 AT A GLANCE in favour of newer dry-cooled stations – Matimba, Kendal, Medupi and The natural resources and environmental systems we Kusile. In addition, the return to service of Medupi Unit 4 in July 2025 and Particulate Relative particulate depend on – and impact – through our operations, the commercial operation of Kusile Unit 6 in September 2025 has added emissions emissions SC including air, water, coal, land, biodiversity and additional dry-cooled units to the energy mix, while the return to service ecosystems, as well as the waste streams and emissions that of Koeberg Unit 1 in October 2025 also made a positive and fresh-water- 43% to 176.32kt 0.98kg/MWhSO efficient contribution to energy sent out. (2025: 122.94kt) (2025: 0.64kg/MWhSO) must be responsibly managed Our ongoing commitment to compliance with atmospheric emission licences, water use regulations and other operational requirements, As an electricity utility dependent on resource-intensive processes, Net raw water Specific water our operations both influence and are influenced by the environment. together with our ash beneficiation initiatives, underscores our Zero Harm value and dedication to responsible environmental stewardship. We are consumption consumption SC The electricity generation value chain relies primarily on non-renewable resources – coal, water, diesel and nuclear fuel – which contribute to emissions dedicated to embedding the environmental aspect of our environmental, 10% to 241 562Mℓ 1.34ℓ/kWhSO and impact biodiversity and land and also create ash and other waste streams social and governance (ESG) plan into our operations. However, coal (2025: 268 638Mℓ) (2025: 1.40ℓ/kWhSO) requiring responsible management. Koeberg Nuclear Power Station uses sea quality, particulate emissions, polluted water discharges and elevated levels water for cooling, and nuclear is considered a low-carbon technology. We of environmental legal contraventions remain key focus areas requiring remain committed to reducing our environmental footprint through focused sustained operational discipline and targeted recovery plans. interventions in air quality as well as air quality offset projects, together with Coal burnt Coal stock days responsible water use and waste management, as well as biodiversity offsets. Climate change remains a central concern. In alignment with the Climate Change Act, 2024 which came into effect in March 2025, we implemented 96.54Mt 94 We achieved a significant reduction in CO2 emissions of around 16% divisional and subsidiary climate adaptation plans and strengthened our (2025: 106.18Mt) (2025: 79) compared to 2019 levels due to reduced coal burn driven by less energy risk management systems and reporting on GHG emissions. Our GHG sent out, which in turn is a function of lower demand. Our contribution emissions for FY2026 were limited to 184.5MtCO2e, well below the to national greenhouse gas (GHG) emissions is declining and now stands baseline of 214MtCO2e expressed in our second Pollution Prevention at about 41% of the national total. Our particulate emissions performance Carbon dioxide Environmental legal Plan. These efforts support our Just Energy Transition and our long-term equivalent emissions contraventions worsened compared to last year, due to poor electrostatic precipitator, goal of achieving net-zero emissions by 2050. We are actively reducing SO3 plant, dust-handling and ash-handling performance at five of our older stations – Kendal, Lethabo, Matimba, Matla and Kriel. As focused our environmental footprint while supporting global and national climate 184.5MtCO2e 67 maintenance of the generation plant took effect, particulate emission commitments. (2025: 205.1MtCO2e) (2025: 65) performance improved in the latter half of the year. Supply from renewable Environmental Environmental performance trend sources provisions WHERE TO FIND MORE kg/MWh sent out ℓ/kWh sent out GR G overnance and remuneration report SR Sustainability report 11.7% R55.2 billion 1.0 1.5 (2025: 11.3%) (2025: R47.9 billion)  “Report by the Risk Committee”  “Our ESG approach” 0.8  “ Report by the Social, Ethics and  “Environmental management” 1.4 Sustainability Committee”  “Responding to climate change” / Favourable movement / Unfavourable movement 0.6 PR Performance report SC KPI included in the shareholder compact for FY2026. 0.4  “Interacting with the environment” 1.3  “Technical statistics” 0.2 “ Environmental implications of using   0.0 1.2 or saving electricity” 2022 2023 2024 2025 2026 Relative particulate emissions Specific water consumption 75 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Interacting with the environment continued OUR ENVIRONMENTAL STRATEGY OUR ENVIRONMENTAL VALUE STORY Our strategy is to secure critical primary energy resources, comply with environmental legislation and reduce, Natural capital is central to Eskom’s ability to generate electricity. Our operations remain dependent on resource- conserve and transition responsibly – supported by governance, technology and partnerships that integrate intensive activities, particularly coal and water use, which create material impacts on air quality, GHG emissions, environmental stewardship into the way we operate and invest. land, biodiversity and waste. Our approach continues to balance security, affordability, sustainability and social impact, while safeguarding supply of electricity while progressively lowering our environmental footprint. Decarbonising responsibly On World Environment Day on 5 June 2026, we launched our “Save today, sustain tomorrow” campaign Reducing our through a Just Energy Building climate resilience to embed environmental stewardship into daily operations and decision-making. We remain committed to environmental footprint Transition and adaptation reducing our environmental footprint through focused interventions in air quality, water use, waste management, Improve relative particulate Drive renewables through Eskom Align to the Climate Change Act biodiversity stewardship, coal quality management, ash beneficiation and climate adaptation. These initiatives emissions, specific water Green aligned with South Africa’s through carbon budgeting and support our value of Zero Harm and our longer-term transition pathway. At the same time, the deterioration in consumption and waste IRP 2025, through gas-to-power, adaptation planning, together with particulate emissions, coal quality variability at some stations and continued environmental legal contraventions beneficiation storage and clean coal enterprise resilience demonstrate the need for sustained focus on compliance recovery and operational discipline. technologies HOW WE IMPACTED VALUE IN FY2026 The year's environmental outcomes reflect meaningful gains in GHG emissions, water use and biodiversity, offset by continued erosion from relative particulate emissions performance, reliance on coal and regulatory uncertainty. HOW NATURAL CAPITAL ENABLES OUR STRATEGY Pursue financial and Modernise Drive a just VALUE CREATED VALUE PRESERVED VALUE ERODED operational Position Eskom as energy the power and inclusive sustainability sector leader ecosystem transition • Reduced GHG emissions to • Minimum Emission Standards • Particulate emissions Fix the current business Prepare for competitiveness Leverage technology Transition responsibly 184.5MtCO2e due to lower (MES) suspensions and performance continued quantities of coal burnt exemptions provided to deteriorate, requiring Secure cost-effective Move towards a lower- Deploy emission- Accelerate Eskom Green operating headroom while focused intervention at • Improved specific water primary energy and carbon portfolio through reduction technology and retire coal stations we implement compliance several coal-fired power consumption to strengthen the launch of Eskom Green, and clean coal responsibly by plans, although legal stations 1.34ℓ/kWhSO environmental together with increased innovation while repurposing and processes are underway • Increased dispatched • Medupi FGD retrofit compliance through renewables penetration and enabling renewables repowering to deliver renewable IPP energy to • Fully reinstated the Kusile remains complex at a cost of emission reduction, the use of cleaner integration through a socio-economic benefit 18.4TWh FGD stack, while the Medupi R41.7 billion and subject to water management and technologies, enabling us to flexible, modernised to affected workers and • Launched Eskom Green FGD retrofit programme regulatory processes waste interventions compete in a liberalised grid communities on 9 June 2026 to deliver moved to the tendering • Environmental legal electricity market on Eskom’s renewable phase contraventions increased ambitions • Reduced red data bird to 67 The focus is shifting from STRATEGIC ENABLERS • Reduced SO2 emissions to mortalities to 182 • Polluted water discharges • Digitalisation of environmental monitoring and 1 420kt and NOx to 685kt • Conserved biodiversity with continued at some stations managing environmental impacts GHG emissions reporting nature reserves at Koeberg, • Draft regulations under the as a compliance obligation to • ESG funding framework to support sustainability- Ingula and Majuba Climate Change Act relating embedding environmental linked and green financing • Set aside ring-fenced funds to carbon budgeting and stewardship, primary energy • Ring-fenced investments for environmental for environmental provisions climate change mitigation provision funding and renewable energy projects and renewable energy could materially impact assurance and resource efficiency projects operations if not altered • International climate financing and private-sector into operational discipline, partnerships • Progressed ash beneficiation prior to promulgation investment decisions and the • Environmental stewardship embedded throughout projects to reduce waste transition to a cleaner, more the value chain disposal and support circular • Renewable energy offerings to customers delivered economy applications resilient electricity system. through Eskom Green – Dan Marokane, Group • Modernised tariff structures, including Chief Executive implementation of green tariffs 76 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Interacting with the environment continued REDUCING OUR ENVIRONMENTAL their review, with the updated report targeted for GOVERNANCE AND STRATEGY The launch of Eskom Green anchors our renewable FOOTPRINT completion by February 2027. Any changes in the Climate change considerations are integrated into our ambition, providing a ring‑fenced, utility‑scale Eskom’s GHG emissions represent 41% of the national approach to FGD will be discussed with all relevant governance, enterprise risk management, investment platform to accelerate renewable energy and storage figure. Our absolute GHG emissions for FY2026 stakeholders. planning and operations. Oversight is exercised development. We plan to make around 6GW of reduced to 184.5MtCO2e, 10% lower than FY2025 through established Board and executive structures, carbon‑free electricity available by FY2030, with and well below the 214MtCO2e baseline in our latest There were 67 environmental legal contraventions most prominently the Social, Ethics and Sustainability an aspiration of up to 32GW of cost‑competitive Pollution Prevention Plan. The improvement is due recorded during the year, with three incidents Committee, supported by access to specialist climate renewables and storage by FY2040. Projects to less coal being burnt which was the result of classified as significant failures of business systems. expertise. This enables us to balance our mandate advancing towards execution include the Lethabo lower demand for electricity and a favourable power The focus on environmental governance continued to provide secure and affordable electricity with the and Komati solar PV plants and a 600MWh battery station mix, with 52% of energy generated by our with detailed operational plans targeting particulate imperative to support South Africa's transition to a energy storage system. Recognising the continued more efficient dry-cooled power stations as well as emissions, water use and polluted water discharges. lower‑carbon, climate‑resilient economy. centrality of our coal fleet during the transition, we our nuclear and peaking portfolios. Specific water are advancing clean coal technologies – including ADVANCING CIRCULARITY, LAND Our response is guided by our climate change strategy consumption improved to 1.34ℓ/kWhSO, reflecting high-efficiency low-emission plant, carbon capture STEWARDSHIP AND BIODIVERSITY and aligned with the National Development Plan, utilisation and storage, direct sorbent injection lower use of our older wet-cooled stations. Sulphur dioxide, nitrogen oxide and other regulated emissions PROTECTION the IRP 2025, South Africa's Nationally Determined and long-duration storage – to reduce the impact Ash beneficiation remains a key circular economy Contribution under the Paris Agreement and the of our base-load coal-fired power stations on all improved year-on-year, also driven by the lower lever, with initiatives that use ash in road Climate Change Act. It is anchored in five strategic the environment. We have begun operational coal burn. construction, mine backfilling, geopolymer poles and priorities: decarbonisation, including the introduction of electric However, relative particulate emissions deteriorated soil amelioration. These initiatives reduce landfill • Grid enablement vehicles into our fleet. to 0.98kg/MWhSO for the year, driven by poor dependency and help manage legacy ash risks. • A lower‑carbon transition through repowering and electrostatic precipitator, SO3 plant, dust-handling repurposing of coal-fired power stations, together MANAGING CLIMATE RISKS We have also continued biodiversity stewardship We assess both transition and physical climate and ash-handling performance at some of our older with renewable integration through environmental impact assessments, risks. Transition risks – evolving regulation, carbon stations. Targeted recovery initiatives are already • Financial resilience against carbon pricing and habitat restoration, bird mortality mitigation and pricing, mandatory disclosure and shifting investor producing a measurable improvement. Investments in funding implications conservation partnerships. Red data bird mortalities expectations – may increase compliance obligations fabric filter plant and low-NOx burners continue. for the year reduced to 182, while declared nature • Climate resilience that embeds physical risk into and both operating and funding costs. We respond We filed a court application in September 2025 to reserves at Koeberg, Ingula and Majuba continued to planning through a balanced, diversified generation pathway review the March 2025 MES exemption decision. conserve biodiversity and support responsible land • A just energy transition that balances and the acceleration of grid enablement under the The review is based on multiple issues, including management. decarbonisation with security of supply, affordability Transmission Development Plan. the limited period covered by the exemption (only and inclusivity five years to March 2030 for six of the stations); the BUILDING CLIMATE RESILIENCE IN Physical risks, including more frequent storms, floods, approach taken for Medupi FGD; the strict monthly RESPONSE TO CLIMATE CHANGE MITIGATION AND DECARBONISATION wildfires, extreme temperatures and water stress, particulate limits for Tutuka; and the broad nature of As one of South Africa's largest single‑source GHG We remain committed to South Africa's aspiration are managed through integrated risk, resilience, the conditions. Progress on this matter is expected emitters – responsible for around 41% of national of net‑zero emissions by 2050, despite coal being adaptation and disaster‑management processes, only in the latter half of FY2027. emissions – we recognise that climate change is a the primary fuel in Eskom’s generation portfolio, supported by water‑security initiatives such as the defining strategic risk and a central consideration representing about 85% of installed capacity. In Integrated Vaal River System. Our climate scenario The installation of wet FGD will enable Eskom to in how we create and preserve long‑term value. FY2026, our absolute GHG emissions reduced to analysis, drawing on IPCC and CMIP6 pathways, reduce SO2 emissions in line with our atmospheric We frame our climate response within the practical 184.5MtCO2e, 10% lower than the prior year and informs adaptation planning and investment decisions, emission licences. Kusile Power Station was realities of energy security, affordability and a just well below the 214MtCO2e baseline in our latest while historical data points to a rising trend in the commissioned with FGD technology already installed, transition, by advancing a progressive, holistic Pollution Prevention Plan – driven by lower coal burn frequency and severity of weather‑related insurance while Medupi is permitted to retrofit FGD technology decarbonisation pathway that balances climate in response to lower demand and a more efficient claims and associated financial exposure. within six years of each unit’s commissioning. In action with operational resilience, socio‑economic generation mix. We remain on track to reduce CO2 compliance with the station’s MES exemption development and the long‑term sustainability of the emissions by approximately 16% by 2030 relative to granted by the Department of Forestry, Fisheries and electricity system. 2019 levels, working towards around 172MtCO2e the Environment (DFFE), Eskom has submitted an by 2030. updated cost benefit analysis to DFFE, indicating the high financial cost of FGD (estimated at R41.7 billion) compared to the relatively limited health benefits. DFFE has requested further modelling to support 77 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Interacting with the environment continued Key climate value chain aspects E S G Physical resilience Transition readiness Value creation Extreme weather and infrastructure Carbon tax, financing and disclosure Cleaner energy resilience planning disruption pressure and skills NEGATIVE IMPACTS RISKS OPPORTUNITIES Physical disruption Supplier and logistics disruption Cleaner energy technologies Adaptation planning 1 1 1 2 Climate events may disrupt supplier Cleaner technologies and Integrating climate strategy, risk and Acute and chronic climate risks, operations, transport networks and transmission infrastructure support disaster management into adaptation including floods, storms, heatwaves logistics systems, increasing restoration emissions reduction and sustainable plans strengthens resilience and and droughts, may disrupt generation, times, delays and recovery costs. economic development. adaptive capacity. transmission and distribution infrastructure, affecting security of Short-Medium term Upstream Short-Long term Own Ops & Downstream Short-Long term Own Operations supply and operational performance. Regulatory and transition pressure Sector transformation Research and innovation Short-Medium term Own Ops & Downstream 2 3 4 Carbon tax, CBAM, disclosure Electricity-sector transformation Low-carbon technologies, CCUS requirements and decarbonisation through supply-side diversification and grid-modernisation initiatives policies may increase compliance supports South Africa’s long-term can reduce emissions and support GHG emissions profile obligations and financing pressures. GHG trajectory. net-zero ambition. 2 Generation contributes materially to Mid-Long term Upstream & Own Ops Mid term Own Operations Medium-Long term Own Operations South Africa’s GHG emissions profile through scope 1 and 2 emissions associated with electricity generation Reputation and resilience expectations Skills and capacity Just transition benefits and operations. 3 5 6 Just transition objectives create Stakeholders expect credible Climate-related training and capacity decarbonisation and climate resilience opportunities for resilience, building improve awareness, technical socio-economic development, responses, with reputational risks where capability and preparedness. infrastructure investment and progress is insufficient. sustainable energy transition. Short-Long term Own Operations Medium term Own Ops & Downstream Medium-Long term Own Operations Medium-Long term Own Ops & Downstream VALUE-CHAIN RESPONSE AND RESILIENCE LEVERS Adaptation plans Disaster management Transmission development Cleaner energy GHG reduction Climate skills JET objectives Research and innovation 78 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Interacting with the environment continued REGULATORY ENGAGEMENT Our carbon footprint report using the revised methodology for 2025 is shown below. South Africa's climate regulatory framework continues to evolve through the Climate Change Act and the draft National GHG Carbon Budget and Mitigation Plan Regulations, which propose mandatory carbon budgets, 2025 2024 2023 mitigation plans and compliance obligations for significant emitters. We support national climate ambition and calendar calendar calendar have submitted comments to DFFE, advocating a practical approach that reflects the complexity of the electricity GHG emissions by source, tCO2e1 year year year sector, to maintain system reliability and allow Eskom to remain financially sustainable, while enabling a phased, Scope 1 188 335 030 191 808 802 184 134 349 orderly and just transition. Stationary combustion2 188 121 575 191 585 395 183 904 930 In alignment with the Climate Change Act, we implemented divisional and subsidiary climate adaptation plans. Eskom fleet vehicles 82 991 95 457 129 543 Our Pollution Prevention Plan is transitioning to a mitigation plan, and we continue to engage with DFFE on the Fugitive emissions 89 972 84 718 85 762 design of carbon budget and mitigation plans. Waste disposal 24 507 19 969 3 189 Non-combustion product use 15 985 23 263 10 925 TRANSPARENCY AND DISCLOSURE Scope 2 50 877 55 554 131 899 We have quantified our carbon footprint since 2019 and, from 2025, adopted the Tier 3 methodology for more accurate emissions reporting. Our disclosures are aligned with the requirements of the Global Reporting Initiative Network losses related to electricity and heat purchased from IPPs 3 50 877 55 554 131 899 (GRI) and Task Force on Climate-related Financial Disclosures (TCFD), with a clear trajectory towards alignment Scope 3 2 372 803 3 075 553 4 505 188 with the requirements of IFRS S2 Climate-related Disclosures and King V. Electricity purchased from IPPs 295 246 322 390 765 429 Coal delivery to site – road and rail 2 021 712 2 716 425 3 717 648 Waste treated by third parties 32 123 1 764 2 371 Business travel – use of employee vehicles 12 816 11 730 8 122 Business travel – air travel 7 423 17 023 11 129 Business travel – vehicle rental 3 483 6 221 489 Total4 190 758 710 194 939 909 188 771 436 1. Years refer to calendar years, and not financial years as indicated elsewhere in the report. 2. For coal, an Eskom-specific annual weighted average net calorific value of 0.01901TJ/ton fuel was used based on the actual measured value for 2025. 3. As electricity generation is Eskom’s main activity, scope 2 emissions are in principle accounted for as scope 1 direct emissions under the Scope 1 emissions (tCO2e) Scope 2 emissions (tCO2e) Scope 3 emissions (tCO2e) GHG Protocol. However, since 2022 we have included estimated energy losses on the transmission and distribution networks relating to electricity purchased from IPPs as scope 2. Scope 1 4. Due to different scopes and input assumptions, the results are not directly comparable with our CO2 emissions reported in the 2023 184 134 349 2023 131 899 2023 4 505 188 statistical table in the performance report. During the period, our CDP climate score improved from D to C, and we maintained a C for water, reflecting 2024 191 808 802 2024 55 554 2024 3 075 553 strengthened climate governance and risk management. Efforts continue to enhance climate scenario analysis, transition metrics and the quantification of climate‑related financial impacts. 2025 188 335 030 2025 50 877 2025 2 372 803 79 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Interacting with the environment continued OUTLOOK Our focus is shifting from climate preparedness towards measurable resilience and implementation – delivering the just energy transition, strengthening climate TRADE-OFFS AND INTERCONNECTIONS WITH governance and disclosure, prioritising asset‑level adaptation and improving the quantification of climate‑related financial impacts. In doing so, we aim to support OTHER CAPITALS South Africa's climate commitments while continuing to safeguard security of supply, affordability and Eskom's long‑term financial sustainability. Our environmental decisions create trade-offs across the other capitals: SR F or more extensive discussion of our response to climate change, refer to “Responding to climate change” in the sustainability report Human capital: Environmental stewardship depends on operational discipline, specialist skills and environmental capability. The “Save today, sustain tomorrow” campaign KEY RISKS TO NATURAL CAPITAL AND HOW WE MANAGE THEM supports employee awareness and embeds environmental Our natural capital risks are actively managed through a robust risk and resilience framework. responsibility into daily operations, while the just energy Key risks How we manage these risks transition depends on our people. The planned reskilling of 15 000 employees by FY2031, together with a dedicated Particulate emissions and MES compliance Targeted electrostatic precipitator recovery and refurbishment Clean Energy Training Centre and Nuclear School, converts MES compliance remains a material risk with poor electrostatic environmental ambition into workforce capability MES exemptions obtained for stations closing by FY2030 precipitator and ash handling performance at older stations causing poor particulate emissions performance Kusile FGD fully reinstated Manufactured capital: Ageing coal-fired plant continues to emit harmful emissions and ash, which impacts water Longer-term FGD retrofit at Medupi and land and delays decarbonisation efforts. Renewable Introduction of clean coal technologies, gas-to-power, battery storage and other renewable IPPs and the Eskom Green pipeline of renewables and technologies to attain a lower carbon footprint, aligned to IRP 2025 storage, as well as clean coal technologies are closing this gap over time Water security and drought exposure Site-specific water efficiency plans at priority stations targeting specific water use of 1.33ℓ/kWhSO Rising demand for water, with drought and infrastructure sensitivity by FY2031 Intellectual capital: Clean coal research, ash beneficiation, threatening water availability at coal-fired stations digital water monitoring, climate modelling and coal Prioritise operation of dry-cooled stations to lower overall water use quality technologies support improved environmental Deliver the Mokolo-Crocodile Water Augmentation Project Phase 2A project for additional water performance and help inform investment decisions in a for the Medupi FGD, with delivery targeted by January 2030 changing energy system Climate adaptation planning Social and relationship capital: Poor air quality, water discharges, land impacts and biodiversity risks affect the Rehabilitation of ash dumps To reduce the volume of ash dumped, ash is reused through ash beneficiation partnerships aimed communities around our infrastructure. Air quality offsets, Ash produced from coal-fired generation creates long-term at brick manufacturing, cement blending, mine backfill, geopolymer poles and soil amelioration community health support, stakeholder engagement liabilities and impacts land use. Rehabilitation of ash dumps and JET initiatives are critical to maintaining trust, while Ring-fenced decommissioning provisions constitutes a significant portion of the environmental restoration ash beneficiation partnerships create local economic provision related to coal-fired power stations opportunities and address legacy waste. Repowering Climate Change Act and regulatory uncertainty Formal submission of Eskom’s concerns and active engagement with DFFE, with support from DEE and repurposing of ageing power stations aims to deliver around a thousand targeted new jobs Draft carbon budget and mitigation plan regulations could materially Approved pollution prevention plan transitioning to a mitigation plan impact Eskom's operations and finance Financial capital: Environmental compliance and securing Scenario-based mitigation planning primary energy resources require significant capital and Climate finance and geopolitical risk Diversifying funding sources, including the €4.7 billion green energy funding envelope operating expenditure. Non-compliance with environmental regulations may expose Eskom to severe financial Recalibrated global climate finance flows following the US Finalisation of an ESG funding framework consequences, including the shutdown of plant which would withdrawal from the Paris Agreement and JET funding, while geopolitical shocks are reshaping funding availability lead to loss of revenue. Conversely, strong environmental Pursuing blended financing opportunities and public-private partnerships stewardship, JET initiatives and responsible management of Physical climate risk to infrastructure Climate adaptation plans (informed by CSIR projections) under our enterprise resilience natural resources can enhance financial capital Extreme weather events (drought, floods, veld fires and storms) framework increasingly expose infrastructure and supply reliability National simulation exercises to strengthen grid resilience 80 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Interacting with the environment continued OUTLOOK SHORT TERM: FY2027 MEDIUM TERM: FY2027 TO FY2031 LONG TERM: BEYOND FY2031 • Recover particulate emissions to 0.35kg/ • Reduce absolute carbon emissions • Deliver 32GW of renewable and storage MWhSO through recovery of Kendal, towards 172MtCO2e by 2030 capacity by FY2040 in line with IRP 2025 Lethabo, Matimba, Kriel and Matla • Achieve relative particulate emissions of • Transition to a lower-carbon generation • Submit final Pollution Prevention Plan 0.30kg/MWhSO and water consumption portfolio progress report to DFFE of 1.33ℓ/kWhSO by FY2031 • Achieve net-zero emissions by 2050 • Continue engagement with DFFE on • Deliver on ash beneficiation and JET carbon budget and mitigation plan repowering and repurposing projects regulations • Deliver on Eskom Green renewable • Start delivery of Eskom Green’s pipeline energy pipeline of 6GW by FY2030 and of renewable projects expand green offerings to customers • Finalise approach to Medupi FGD in • Deliver 3GW of new gas-to-power consultation with the World Bank capacity • Ensure continued MES compliance in line with exemption requirements 81 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Sustaining communities SOCIAL AND RELATIONSHIP CAPITAL PERFORMANCE FOR FY2026 AT A GLANCE WHERE TO FIND MORE Our relationships with customers, GR G  overnance and remuneration report Total customers Key Customer Delight suppliers, communities and the broader  “ Fostering an ethical culture” society we serve, together with the trust, 4.7% to 6.8 million 90.5%  “ Report by the Social, Ethics and Sustainability Committee” reputation and social licence to operate (2025: 7.1 million) (2025: 86.8%) that these relationships create PR Performance report  “Sustaining communities” Electrification connections SC CSI committed spend SC  “Non-technical statistics” The strength of our communities is inseparable from 19% to 67 578 5% to R153.25 million the strength of our business. As South Africa navigates  “Customer information” (2025: 83 031) (2025: R146.20 million) a demanding economic environment and a transforming SR S ustainability report electricity sector, our developmental mandate has never mattered more, particularly in expanding  “Our ESG approach” CSI beneficiaries Preferential procurement SC access to electricity, supporting inclusive growth and  “Our social footprint” protecting the public from the hazards associated with 25% to 1.5 million 94.58% our operations. Our initiatives turn our procurement spend, capital investment and operational decisions into (2025: 1.2 million) (2025: 93.21%) measurable outcomes for communities. The past year reflected steady, measured progress, Public fatalities from expanding access in remote communities and giving young suppliers their first meaningful contracts, to 11 supporting workers and communities most exposed to (2025: 15) the energy transition. / Favourable movement / Unfavourable movement SC KPI included in the shareholder compact for FY2026. OUR SOCIAL AND RELATIONSHIP APPROACH AND STRATEGIC ENABLERS Our developmental mandate is delivered through our socio-economic transformation plan, a coordinated framework of initiatives across five focus areas: universal energy access, skills development, corporate social responsibility, the Just Energy Transition (JET), and supplier development, localisation and industrialisation. Developing human Expanding universal Advancing supplier development, Supporting a just energy transition for Driving corporate capital and skills energy access localisation and industrialisation coal-dependent communities social responsibility Building a future-ready skills pipeline for Extending reliable and affordable electricity Using procurement spend, enterprise and Ensuring the move to a lower-carbon Translating our developmental mandate the evolving energy sector, focusing on through grid extension and distributed supplier development (ESD) initiatives and energy system creates opportunity for into tangible community impact through youth, women and communities affected energy solutions, supporting South Africa’s local content requirements to broaden local communities through repowering and corporate social investment (CSI) and by structural shifts in the energy system 2030 access goal participation and strengthen local repurposing initiatives, skills and economic community engagement, while protecting manufacturing development the public from the hazards of our operations in line with our Zero Harm value 82 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Sustaining communities continued Furthermore, customer centricity remains fundamental to how we retain relevance, grow value and fulfil our OUR COMMUNITY VALUE STORY developmental mandate. We are transforming our business model, refreshing how we serve our customers and As customer needs evolve, electricity markets liberalise and new technologies reshape energy consumption, improving the reliability and quality of supply. This means repositioning ourselves in a rapidly evolving electricity maintaining our social licence to operate increasingly depends on our ability to remain relevant, accessible and market to retain strategic demand, diversify revenue streams, respond to the evolving needs of our customers responsive while supporting inclusive economic growth. and improve the customer experience. HOW WE IMPACTED VALUE IN FY2026 Several strategic enablers translate our transformation plan into practical outcomes which, together, strengthen During the year, we delivered measurable gains in electricity access, customer satisfaction and inclusive customer relevance, extend inclusive access, deepen socio-economic contribution and support a credible energy participation, although offset by structural demand decline, project delivery delays, public safety incidents and transition. affordability pressures. STRATEGIC ENABLERS • Eskom Development Foundation NPC as the CSI delivery vehicle VALUE CREATED VALUE PRESERVED VALUE ERODED • Integrated National Electrification Programme (INEP) • Strengthened customer • Safeguarded strategic • Structural demand erosion • Digital customer channels satisfaction across large industrial demand through and decline in customers • Partnerships with the dtic, IDC and lenders industrial and broader NERSA-approved NPAs, continued, reinforcing the • ESD walk-in centres, supplier development programmes and supplier forums customer segments protecting revenue, jobs and need to diversify revenue • Multi-stakeholder Public Safety Forum • Opened new revenue export value chains streams pathways through emerging • Sustained transformation • Loss of life among members HOW SOCIAL AND RELATIONSHIP CAPITAL ENABLES OUR STRATEGY sales opportunities and progress, with continued of the public reinforced Our customers, suppliers and communities are central to how Eskom delivers on its four strategic objectives. demand stimulation progression towards level 2 the human cost of unsafe • Advanced universal access B-BBEE status by FY2029 electricity use and through electrification, • Extended access to reliable infrastructure risks Pursue financial and Position Eskom as Modernise Drive a just operational energy sector leader the power and inclusive microgrids and distributed electricity in remote areas • Infrastructure crime, illegal sustainability ecosystem transition energy solutions through smart village vending and non-payment Prepare for • Broadened inclusive microgrids and Light Up SA impacted service quality and Fix the current business competitiveness Leverage technology Transition responsibly participation through initiatives revenue Maintaining relationships Growing and diversifying Extending electricity Repowering and preferential procurement, • Reinforced JET credibility • Affordability pressures and to protect revenue, customer demand in a access, products and repurposing coal- ESD and localisation through blended financing delays in the Komati copper secure resources and liberalising, more services through smart dependent communities, • Built JET momentum and international recycling plant tempered maintain a social licence competitive market and metering, microgrids, and mobilising equitable through repowering and partnerships community and transition to operate, while supporting local supply distributed energy procurement spend, CSI repurposing at six coal-fleet • Reinforced Zero Harm gains promoting Zero Harm chains solutions, digital channels contributions and Just sites, along with the launch safety culture through public • Delivery fell short on the and modern technologies Energy Transition of Eskom Green awareness, contractor rollout of smart meters, investment safety and multi-stakeholder requiring enhanced • Contributed to education, health, environmental engagements community engagement responsibility, enterprise • Advanced the eradication • Procurement equity across development, food security of load reduction, although certain designated groups The sustainability of the communities we serve is inseparable from the and rural development further work is required in requires focused attention, sustainability of Eskom itself. As electricity markets liberalise and customer through CSI initiatives FY2027 dependent on finalisation needs evolve, our ability to remain relevant, reliable and inclusive is central of regulations to the Public Procurement Act, 2024 to how we power South Africa's future. – Mteto Nyati, Chairman 83 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Sustaining communities continued When the lights stay on in a rural village, when a small supplier lands their Preferential procurement and ESD initiatives officially launched the Grootvlei Climate Smart broadened inclusive economic participation. Horticulture facility. The launch of Eskom Green after first meaningful contract, or when a coal-community worker transitions to We invested R10.5 million in enterprise development year end also marked an important step in anchoring a green job – that is the community-scale impact of Eskom's mandate. and focused on building capability among small utility-scale renewable energy within the group. – Dan Marokane, Group Chief Executive suppliers through business skills training as well as support with tender processes and registration The progress was not without setbacks: the Komati on National Treasury's central supplier database. copper recycling plant reached 52.5% completion CUSTOMER CENTRICITY Customer satisfaction remained ahead of target, A further R7.7 billion was directed to supplier of project milestones set by the shareholder, with From a customer perspective, FY2026 was supported by our digital customer care channels and development, largely through subcontracting and construction not yet started at year end; we have shaped by three defining priorities: arresting the community-based mobile hubs, though reliability localisation-linked procurement. We retained our paused to recalibrate the business case so that it structural decline in electricity sales, eradicating of supply for large industrial customers and service level 3 B-BBEE status and remain on track to achieve delivers sustainable value. load reduction while improving quality of supply, work items outside target times remain areas of level 2 by FY2029, in line with the shareholder’s The progress achieved during the year reinforces the and modernising customer service. Electricity sales focus. Preparations for participation in the South expectations. importance of a deliberate community strategy that declined by 6.2% during the year, continuing a African Wholesale Electricity Market (SAWEM) and Our JET strategy is built on the five E’s, namely connects customer relevance, inclusive economic longer-term structural trend driven by economic phasing in of the latest retail tariff plan continued. employment, environment, economy, equity participation and a credible transition to the long-term pressure on energy-intensive industries, large The external launch of SAWEM has been deferred and energy, which together shape how we weigh sustainability of Eskom's business. Alongside these gains, customer curtailments, growing behind-the-meter to the latter part of FY2027 to allow the enabling trade-offs and sequence decisions around coal- sales erosion, affordability pressures, infrastructure self-generation and, most recently, our largest frameworks to be finalised. dependent communities. Repowering and repurposing crime, the pace of market reform, procurement equity cross-border smelter customer entering care and MAXIMISING OUR SOCIO-ECONOMIC progressed across our priority coal-fleet sites, with and public safety remain material risks that we actively maintenance in March 2026. In response, we moved CONTRIBUTION the extended Climate Investment Fund blended manage. The 11 public fatalities recorded are a sober decisively from passively managing sales erosion to Our developmental mandate continued to translate financing envelope reinforcing international credibility reminder that Zero Harm is a responsibility we share actively growing and diversifying revenue, introducing CSI initiatives, electrification and procurement into for our transition pathway. In January 2026, we with the communities we serve. NERSA-approved negotiated pricing agreements (NPAs) to retain strategic load, alongside pursuing tangible community outcomes. More than 67 500 structural demand growth through an emerging previously underserved households were connected pipeline of data centre and flexible-load capacity to the grid. Remote areas were reached through customer initiatives, customer wheeling optimisation, microgrids and distributed energy solutions, facilitated To sustain our communities is to sustain the mandate that Eskom exists to serve – powering South Africa's Eskom Green renewable energy offerings and electric by 2 119 off-grid connections, well ahead of target. people, industry and future. vehicle (EV) charging. Electrification connections, while ahead of target, were lower than the prior year given grant funding Load reduction has an adverse impact on the and site-readiness constraints. Our expanding communities we serve. Progress in eradicating load eMobility footprint and electric vehicle tariffs are reduction was tangible, with seven provinces free of advancing decarbonisation alongside access. load reduction at the date of publishing this report, and more than 1.2 million customers relieved of load In December 2025, the Minister of Electricity and reduction. The remaining exposure is concentrated Energy launched our flagship smart village microgrid in Gauteng and KwaZulu-Natal, where illegal in the Vhembe District of Limpopo, an Eskom- connections, meter tampering and non-payment funded, solar-powered microgrid delivering reliable persist. We aim to eradicate load reduction nationally clean electricity to more than 700 households and by March 2027. Smart metering strengthened revenue essential facilities. The project has been positioned as protection and customer outage visibility, although a national blueprint for rural electrification, with plans installations fell around 24% short of the shareholder to replicate the model across around 50 villages over compact target owing to community stoppages and the next four years. the impact of adverse weather; the programme has been rephased into FY2027. SR Refer to “Social Initiatives in Repowering and Repurposing (R&R)” in our sustainability report, which highlights a selection of our flagship CSI projects 84 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Sustaining communities continued KEY RISKS TO SOCIAL AND RELATIONSHIP CAPITAL AND HOW WE MANAGE THEM These reflect the most material threats to customer relevance, social licence and inclusive community outcomes during FY2026, and the strategic responses through which TRADE-OFFS AND INTERCONNECTIONS we are managing them. WITH OTHER CAPITALS Sustaining our communities calls for deliberate Key risks How we manage these risks trade-offs between short-term financial capital Public safety is treated as a strategic priority, Formal investigation of every fatality and the long-term value we build across not a compliance obligation our manufactured, intellectual, human and Nationwide awareness campaigns, the quarterly Public Safety Forum with Sasol, Transnet, PRASA, the Railway Safety Regulator and natural capitals. SANRAL, and multi-stakeholder engagements on servitude encroachment Human capital: Bursaries, YES programme Coal haulage safety programmes reinforce accountability participation, SMME support and JET reskilling Structural decline in electricity demand Strengthening customer retention through a focus on customer centricity connect our workforce investment directly to community benefit. Local employment in Enhancing the customer experience coal-transition areas is a defining feature of our people and community strategies Concluding NPAs with large customers Diversifying into new products and services Manufactured capital: Smart metering, microgrids, distributed energy solutions and Growing electricity sales through several short-, medium- and long-term initiatives digital service channels extend access and modernise service, while illegal connections and Market liberalisation and competitive Transforming our business model to be responsive to a competitive, wholesale market, supported by refreshed customer infrastructure theft erode both infrastructure positioning segmentation, digital and AI-enabled service platforms and social value Dynamic pricing readiness and expanded value-added services such as customer wheeling optimisation, EV charging as well as green tariffs and power purchase agreements Intellectual capital: Digital and AI-enabled platforms, smart-grid technologies as well Customer affordability and free basic Continued engagement with the Department of Electricity and Energy on the free basic electricity (FBE) framework as the partnership with the dtic, IDC and electricity pressures lenders strengthen the innovation and Expanded prepaid and self-service options localisation capabilities needed to compete Targeted revenue-protection and CSI-supported affordability initiatives in a modernising market JET impact on coal-dependent communities Repowering and repurposing at six coal-fleet sites is decoupled from decommissioning, supported by blended financing and private Natural capital: Repowering and repurposing, is anchored in the principle that the sector partnerships, targeting around a thousand new jobs clean-coal technology demonstrations, EV tariff transition must be human, not only design and community-scale renewables connect technological environmental performance to community outcomes and a just transition Supplier concentration and localisation Continued investment in ESD, localisation and industrialisation Finalisation of our industrialisation strategy with key stakeholders Financial capital: Our customer, supplier, electrification, CSI, JET and public safety Supplier forums, our SME Indaba and ESD walk-in centres broaden supplier capability programmes require financial investment but are critical to retaining demand, serving communities Infrastructure crime and community unrest: Combining investigative capability, technology and community engagement we operate in, preserving dependent value cable theft and illegal connections Stronger capability in Group Investigations and Security supported prevention and arrests during the year chains and reinforcing our social licence to operate Complemented by accelerated smart meter and advanced metering infrastructure (AMI) rollout together with enhanced controls relating to online vending 85 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Sustaining communities continued OUTLOOK SHORT TERM: FY2027 MEDIUM TERM: FY2027 TO FY2031 LONG TERM: BEYOND FY2031 • Sustain customer satisfaction gains and • Expand access to free basic electricity for • Position Eskom as a competitive, complete the AI-enabled customer indigent households community-anchored utility in a liberalised relationship management system rollout • Replicate the smart village microgrid electricity market • Eradicate load reduction nationally model across around 50 villages • Embed a Just Energy Transition that through rollout of smart meters • Support South Africa's goal of universal preserves livelihoods and creates green supported by advanced metering electricity access by 2030 industrial capability infrastructure, together with targeted • Stabilise sales at around 178TWh while • Sustain a socio-economic contribution network interventions and enforcement continuing to pursue growth initiatives reflecting Eskom's role as the national utility action • Invest further in ESD, localisation and • Scale the smart village microgrid industrialisation to create jobs, develop blueprint and deliver the FY2027 skills, reduce import dependency and electrification target strengthen supply chain resilience • Embed NERSA-approved NPAs and • Enhance procurement equity in line with extend the framework to other energy- Public Procurement Act regulations once intensive customers on a timebound, promulgated case-by-case basis • Achieve level 2 B-BBEE status by FY2029 • Advance the emerging customer project • Scale repowering and repurposing across pipeline and retail tariff reform as well all six priority sites, targeting a thousand as renewable energy offerings through new jobs in coal-dependent communities Eskom Green • Achieve the cumulative CSI committed • Prepare for SAWEM participation spend target of R600 million by FY2029 • Finalise the industrialisation strategy with the dtic, IDC and other stakeholders 86 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Condensed annual financial statements The financial results set out in the condensed financial statements that follow have been extracted from the annual financial statements of the Eskom Holdings SOC Ltd group for the year ended 31 March 2026. The financial statements have been prepared in accordance with IFRS Accounting Standards and in the manner required by the Companies Act, 2008 and the PFMA, 1999. The financial statements have been prepared under the supervision of the Group Chief Financial Officer, Calib Cassim CA(SA), and were approved by the Board of Directors on 30 August 2026. The financial statements have been audited by the group’s independent auditors, Deloitte & Touche, in accordance with International Standards on Auditing. The independent auditors issued a qualified opinion relating to the completeness of irregular expenditure disclosed in terms of the PFMA. Except for this qualification, the financial statements are considered to be fairly presented in terms of IFRS Accounting Standards and the requirements of the Companies Act and the PFMA. AFS T  he financial statements, which detail the financial performance of the group and company, and accompanying notes are available at www.eskom.co.za/investors/integrated-results/ 6 RESTATEMENT OF COMPARATIVES The income statement and statement of financial position for FY2025 have been restated. Guarantee fees payable to the National Revenue Fund were not recognised despite covenant ratios for FY2025 exceeding the thresholds outlined in the Guarantee Framework Agreement (GFA). The fee is calculated on the accumulated amounts utilised under the guarantee facility and is payable by June 87 Condensed annual financial statements following the end of the financial year. The omission resulted in the understatement of finance costs and and commentary current liabilities by R980 million. 91 Enhancing financial sustainability In addition, no provision was recognised for public liability claims against Eskom, with the omission resulting in the understatement of other operating expenses and the related insurance provision by R1 026 million. These restatements had no impact on the statement of cash flows other than the note disclosure relating to cash generated from operations, with no overall impact on net cash from operating activities. All financial information presented in this report reflects the restated results where applicable. AFS Refer to note 49 in the financial statements for more information on the prior period restatement The group’s independent auditors have not reviewed or reported on the future performance plans or strategies referred to in the integrated report. 87 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Condensed annual financial statements continued CONDENSED GROUP INCOME STATEMENT The non-payment of municipal, metro and residential Other operating expenses increased in part due for the year ended 31 March 2026 accounts continued to constrain our financial to inflationary pressures and moderate growth in performance, with a net amount of R15.8 billion (around repairs and maintenance expenditure. Also included Restated 4.5% of revenue) not recognised as revenue due to the in other operating expenses is a net loss of R1 billion 2026 2025 elevated risk of non-collectability (2025: R11.9 billion). associated with municipal payment arrangements Rm Rm % that were implemented in FY2026 – this loss was Revenue 354 724 340 895 4 Despite lower sales volumes and revenue collection raised upon derecognition of the associated trade Other income 1 283 3 265 61 challenges, the containment of primary energy costs receivables and recognition of the related loans Primary energy (151 896) (150 207) 1 supported the group’s profitability. Primary energy receivable. Employee benefit expense (48 060) (43 160) 11 costs increased marginally year-on-year; however, when Net impairment loss and write-downs (1 117) (7 616) 85 2 excluding the impact of fuel levy refunds, costs in fact The significant reduction in net impairment losses was Other expenses (46 286) (45 165) declined by 7%. Improved coal fleet performance and a result of these payment arrangements, which led Profit before depreciation and amortisation expense and net fair value and the return to service of both Koeberg units – which to improved arrear debt positions for key metros by 108 648 98 012 11 foreign exchange loss (EBITDA) have the lowest primary energy unit cost – reduced year end, including the City of Johannesburg and the Depreciation and amortisation expense (36 335) (31 764) 14 reliance on more expensive sources of generation. Most City of Tshwane. However, the City of Johannesburg Operating profit 72 313 66 248 9 notably, utilisation of open-cycle gas turbines (OCGTs) breached the conditions of its payment arrangement Net fair value and foreign exchange loss (1 126) (10 415) 89 more than halved year-on-year, resulting in a combined in April 2026; a revised payment arrangement Profit before net finance cost 71 187 55 833 27 R10.6 billion reduction in spend on Eskom-owned was concluded in July 2026. City of Johannesburg Net finance cost (31 886) (34 072) 6 OCGT fuel and storage costs as well as IPP OCGT costs. honoured the revised arrangement, fully settling its Finance income 8 447 6 840 23 arrear debt by 21 August 2026. Finance cost (40 333) (40 912) 1 The reduction in costs was partially offset by higher 2 employee benefit costs, driven mainly by average Share of profit of equity-accounted investees after tax 100 102 PR Refer to “Enhancing financial sustainability – Managing remuneration increases of 7% granted to employees Profit before tax 39 401 21 863 80 coupled with a 3% growth in headcount, as well as municipal debt” in the performance report for further Income tax (9 056) (7 822) 16 detail on the arrear debt owed by these metros higher production bonuses and a provision under Profit for the year 30 345 14 041 116 the short-term incentive (STI) scheme to reward employees for improved organisational performance. Depreciation and amortisation expense increased Income/gain increased Cost/loss decreased Income/gain decreased Cost/loss increased A total STI obligation of R5.1 billion (including a 13.5% following the commissioning of additional generating employer pension contribution) was recognised at capacity through the new build programme, with the The financial results for FY2026 reflected improved – particularly among ferrochrome smelter customers year end (2025: R4.2 billion). These incentive schemes final Kusile unit achieving commercial operation. EBITDA and profitability, underscoring the group’s that curtailed production due to sustained economic are structured to reward employees for delivering sustained progress in delivering structural operational pressures. The continued impact of embedded self- Finance costs reduced due to a decline in debt improved performance, and remain self-funded from and financial improvements. Performance was generation added to the decline in sales, with installed securities and borrowings together with favourable the performance gains and operational cash flows they underpinned by a higher tariff, improved operational behind-the-meter rooftop solar capacity in South interest rate movements during the year. This was generate. Strict gatekeepers and qualification criteria performance and disciplined cost management. This Africa estimated at 7.7GW at year end. partially offset by lower capitalisation of borrowing are in place to ensure that payouts are only triggered was further aided by Government’s debt relief, which costs, with the commissioning of new build units In March 2026, Mozal smelter operations went where performance thresholds are met, protecting the continues to support the deleveraging of the balance reducing assets under construction. Finance income into care and maintenance, resulting in a significant group’s financial sustainability. The increase in incentives sheet over time. grew due to our strengthened cash and investment reduction in electricity demand from FY2027. The loss is directly linked to the measurable performance gains achieved during the year. balances. Refer to the condensed statement of financial Notably, performance in the prior year benefited of these export sales negatively affects the near-term position on the following page for further detail on from favourable once-off adjustments relating to the sales and revenue outlook. We are engaging with Looking ahead, we will continue to optimise our debt securities and borrowings as well as liquidity. resolution of a dispute with SARS regarding fuel levy Mozal and the Industrial Development Corporation cost base by driving higher productivity across the refunds. Excluding the impact of the fuel levy refunds, of South Africa to find a viable solution to this latest Given our improved financial results, R1 billion has workforce and delivering improved organisational EBITDA increased by 28.4% and profit before tax challenge. Several interventions are underway to been recognised in fees payable to the National performance, while aligning rewards with operational more than quadrupled year-on-year. support energy-intensive customers as well as to Revenue Fund, based on meeting financial covenant and financial outcomes. address the structural declining sales trend. thresholds outlined in the GFA (2025: R1 billion, Revenue growth of 4.1% was driven by a regulatory restated). standard tariff increase of 12.74% from 1 April 2025, GR Refer to “Ensuring fair remuneration – Remuneration partially offset by a 6.2% decline in sales volumes to PR Refer to “Financial review – Financial performance” practices for employees” in the governance and 178TWh (2025: 189.7TWh). The decline in demand in the performance report for further information on remuneration report for further information on the sales volumes was most pronounced in the industrial sector – STI scheme which reduced by 9.7TWh or 22.5% year-on-year 88 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Condensed annual financial statements continued CONDENSED GROUP STATEMENT OF FINANCIAL POSITION The group’s financial position strengthened further in FY2026, activities as directed by the National Nuclear Regulator, while at 31 March 2026 supported by improved operating performance and profitability, discussions on a permanent solution continue. Restated as well as the continued benefit of Government debt relief, which has accelerated the deleveraging of the balance sheet Maintaining sufficient liquidity remains critical for executing our 2026 2025 Rm Rm % and bolstered liquidity. future capital expenditure programme and delivering sustained Assets operational improvements. Refer to the condensed group Non-current assets 773 424 744 546 4 Government support of R80 billion was received in March 2026, statement of cash flows on the following page for further detail Property, plant and equipment and intangible assets 706 754 689 556 2 based on the phasing of the amended debt relief package, and on operating, investing and financing cash flows for the year. Future fuel supplies 10 333 7 639 35 was recognised as a shareholder loan at year end, together Investment in equity-accounted investees with accrued interest (2025: R64 billion support received, of Capital expenditure increased by 9.4% to R45 billion 302 346 13 and subsidiaries which R56 billion was recognised as a liability at year end). The (2025: R41.1 billion), with improved liquidity allowing for an Inventories 16 278 15 373 6 increased allocation to the project pipeline and the earlier Loans receivable 10 235 1 583 547 shareholder loan balance at 31 March 2025 was approved for conversion to equity by the Minister of Finance in June 2025 due release of funds for the execution of capital projects. Continued Deferred tax 21 7 200 Embedded derivatives 1 246 3 847 68 to Eskom’s continued compliance with the debt relief conditions, investment in sustaining generation performance, strengthening Derivatives held for risk management 7 700 13 320 42 after which the related share capital issued. Similarly, the balance network infrastructure and completing the new build programme Treasury investments 2 930 2 638 11 at 31 March 2026 was approved for conversion to equity in contributed to growth in our asset base, with property, Insurance investments 6 960 3 393 105 plant and equipment increasing by 2.5% to R702.9 billion Other non-current assets 10 665 6 844 56 August 2026, further strengthening the group’s capital structure. Interest is charged and paid on all debt relief received until (2025: R686 billion). Current assets 248 432 159 474 56 converted to equity. Inventories 37 268 31 084 20 Additions to future fuel supplies and growth in inventories reflect Loans receivable 1 235 309 300 Debt securities and borrowings (excluding the shareholder loan) our investment in securing the availability of coal and nuclear fuel Embedded derivatives 278 125 122 resources, alongside increased working capital requirements, Derivatives held for risk management 2 064 2 025 2 decreased to R356.2 billion (2025: R372.7 billion), reflecting Trade and other receivables 41 923 ongoing efforts to reduce external debt with Government particularly for coal and liquid fuel, as well as maintenance spares 40 886 2 Treasury investments 19 178 – – support, also aided by favourable exchange rate movements and consumables, to support execution of the Generation Insurance investments 21 313 18 925 13 on foreign-denominated borrowings. Debt repayments of Reliability and Sustainability Plan. Other current assets 1 308 1 322 1 R16.8 billion exceeded debt raised of R1.4 billion during the year. Cash and cash equivalents 124 902 63 761 96 In the prior year, the Board approved the disposal of the loan In addition, an existing China Development Bank (CDB) facility of Assets held-for-sale – 7 811 – book of Eskom Finance Company SOC Ltd (EFC) and its interest R20.1 billion was converted from USD to CNY, which converted Total assets 1 021 856 911 831 12 in Nqaba Finance 1 (RF) Ltd to African Bank Limited, resulting the debt from a floating interest rate to a lower fixed interest rate. Equity in the related assets and liabilities being classified as held- Capital and reserves 360 916 276 339 31 Cash and cash equivalents increased to R124.9 billion for-sale in terms of IFRS Accounting Standards. The disposal Liabilities agreements, concluded in FY2025, were subject to the fulfilment Non-current liabilities 437 545 478 759 9 (2025: R63.8 billion) at year end, supported by stronger operating cash flows linked to strong EBITDA growth, along of certain conditions precedent. These conditions were not Debt securities and borrowings 296 294 351 226 16 Derivatives held for risk management 836 with the R80 billion in debt relief from Government received fulfilled by 31 March 2026 and the disposal agreements lapsed. 3 288 293 Deferred tax 11 577 11 389 2 in March 2026. Of this, R38 billion was earmarked for the Consequently, the related assets and liabilities no longer meet Contract liabilities and deferred income 35 463 34 041 4 settlement of the domestic ES26 bond, which matured on the criteria for classification as held-for-sale, and home loans and Employee benefit obligations 22 533 19 672 15 other loans by EFC have once again been recognised as loans 2 April 2026, further reducing our debt balance after year end. Provisions 55 491 48 197 15 receivable in the group’s financial statements. Lease liabilities 5 697 6 598 14 By honouring this significant commitment, we are delivering Other non-current liabilities 7 202 6 800 6 on our financial strategy by deleveraging the balance sheet and Current liabilities 223 395 156 127 43 reducing our market risk premium and future finance costs. AFS Refer to note 23 in the financial statements for further information Debt securities and borrowings 59 901 21 429 180 Loan from shareholder 80 076 56 132 43 Furthermore, R21.3 billion of cash and cash equivalents has Derivatives held for risk management 1 565 811 93 been earmarked for decommissioning activities and clean energy In May 2026, the Board approved the disposal of the group’s Payments received in advance 4 219 3 636 16 projects, comprising R4.3 billion for nuclear decommissioning, investment in Pebble Bed Modular Reactor SOC Ltd (PBMR) and Employee benefit obligations 9 726 7 584 28 R7.2 billion for coal decommissioning and R9.8 billion for clean its subsidiaries to the South African Nuclear Energy Corporation Provisions 5 031 6 105 18 SOC Ltd (Necsa), subject to PFMA and other regulatory energy initiatives. Trade and other payables 56 272 55 020 2 Other current liabilities 5 410 approvals. The investment will only be classified as held-for- 6 605 22 In addition, the group has recognised R22.1 billion as treasury sale once the disposal process is sufficiently advanced and the Liabilities held-for-sale – 606 – investments (2025: R2.6 billion), which includes R3 billion relevant criteria are met in terms of IFRS Accounting Standards. Total liabilities 660 940 635 492 4 (including interest) set aside for future nuclear decommissioning Total equity and liabilities 1 021 856 911 831 12 Asset/equity increased Asset/equity decreased Liability decreased Liability increased 89 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Condensed annual financial statements continued CONDENSED GROUP STATEMENT OF CASH FLOWS Net operating cash flows increased by 12.4% to allocations to treasury investments earmarked for for the year ended 31 March 2026 R96.6 billion (2025: R85.9 billion), driven by improved future capital requirements. Before these allocations, EBITDA performance. Given the restrictions on new free cash flows amounted to R43.1 billion, which was Restated 2026 2025 borrowings imposed by the Eskom Debt Relief Act, sufficient to fully fund the group’s capital investment Rm Rm % 2023 as amended, generating sufficient operating cash programme from operational cash generation flows remains critical to fund our investing activities. – an important indicator of our strengthening Cash flows from operating activities financial position. Funds from operations (FFO) as a Profit before tax 39 401 21 863 80 Net cash flows used in investing activities increased by percentage of gross debt also improved to 23.79% Adjustment for non-cash items 87 419 91 631 5 64.1% to R72.8 billion (2025: R44.4 billion), driven by (2025: 21.82%, restated), reflecting the group’s Changes in working capital (22 407) (20 128) 11 higher allocations to treasury investments, together improved credit strength. Cash generated from operations 104 413 93 366 12 with growth in capital expenditure. Investing activities Net cash used in derivatives held for risk management (1 177) (1 436) 18 remained focused on executing the new build While debt servicing requirements of R46.7 billion Finance income received 390 441 12 programme, generation outages and technical plan exceeded free cash flows, the shortfall has narrowed Finance cost paid (7) (26) 73 requirements, expanding transmission and distribution significantly. Going forward, this is being addressed Income taxes paid (7 035) (6 400) 10 infrastructure, as well as setting aside sufficient through a balanced funding strategy that combines funding for long-term decommissioning provisions and Government’s remaining debt relief support of Net cash from operating activities 96 584 85 945 12 the development of future renewable energy projects. R10 billion due in FY2029 with targeted debt raising Cash flows used in investing activities from FY2028 for future capital investments. This Proceeds from disposal of property, plant and equipment and intangibles 664 292 127 The debt relief conditions allow Eskom to continue positions Eskom to reduce reliance on Government Acquisitions of property, plant and equipment and intangibles (48 418) (39 989) 21 to draw down on existing facilities that were in place support as operational performance and cost Acquisitions of future fuel supplies (2 959) (3 388) 13 at the time, with any additional financing beyond optimisation initiatives continue to strengthen Acquisitions of treasury investments (19 324) (1 397) 1 283 that being subject to approval from the Minister of cash generation over time. Net acquisitions of insurance investments (5 547) (3 242) 71 Finance. Cash flows from financing activities included Finance income received 2 884 2 321 24 debt raised from existing facilities of R1.4 billion, Strengthening our liquidity position and holding Other investing activities (130) 1 030 113 excluding the conversion of the CDB facility the necessary reserves are essential for providing referred to earlier (2025: R8.7 billion). Total cash the financial headroom for improved planning and Net cash used in investing activities (72 830) (44 373) 64 outflows relating to debt repayment and interest, execution. This enables sustained investment in Cash flows from/(used in) financing activities also excluding the CDB conversion, amounted to infrastructure maintenance and expansion, as well Debt securities and borrowings raised – DFI funding 1 361 8 683 84 R46.7 billion (2025: R79.8 billion). The R80 billion as grid reliability and emission reduction, which are Debt securities and borrowings raised – conversion of CDB facility 20 137 – – debt relief support received in March 2026 aided us critical to supporting operational performance and Loan from shareholder raised 80 000 64 000 25 in meeting these obligations and also facilitated the security of supply, and enabling the energy transition. Debt securities and borrowings repaid (16 768) (46 424) 64 settlement of the ES26 bond in April 2026. Sufficient liquidity is also needed to meet regulatory Debt securities and borrowings repaid – conversion of CDB facility (19 990) – – requirements for funding long-term decommissioning Net cash (used in)/from derivatives held for risk management (667) 4 555 115 Overall, our liquidity strengthened significantly during obligations. Finance income received 4 556 2 217 106 the year, supported by improved operating cash Finance cost paid (29 963) (33 364) 10 flows, debt relief support and reduced debt servicing To improve cash flows on a standalone basis, without Other financing activities (1 135) (974) 17 obligations. The cash interest cover and debt service reliance on further Government support, will require Net cash from/(used in) financing activities 37 531 (1 307) 2 972 cover ratios improved to 3.80 and 1.55 respectively sustained improvements in operational performance (2025: 2.76 and 1.11). Excluding the CDB conversion, and continued cost discipline, as well as effectively Net increase in cash and cash equivalents 61 285 40 265 52 the debt service cover ratio amounted to 2.29. addressing structural constraints impacting revenue, Cash and cash equivalents at the beginning of the year 63 761 23 585 170 including defaulting municipalities, the declining sales Foreign currency translation (2) – – Free cash flows, measured as operating less trend and the lack of a long-term tariff path. Effect of movements in exchange rates on cash held (168) (63) 167 investing cash flows, declined to R23.8 billion Assets and liabilities held-for-sale 26 (26) 200 (2025: R41.6 billion), primarily due to increased Cash and cash equivalents at the end of the year 124 902 63 761 96 Inflow increased Inflow decreased Outflow decreased Outflow increased 90 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Enhancing financial sustainability FINANCIAL CAPITAL WHERE TO FIND MORE The pool of funds – generated through our operations, sourced AFS A  nnual financial statements from lenders and investors, or provided by our shareholder – that  Financial statements and related notes we deploy to sustain our business, invest in our infrastructure  Independent auditor’s report and deliver on our mandate GR G  overnance and remuneration report Financial capital is managed through an integrated approach that links operations,  “Report by the Audit Committee” investment priorities and financing decisions – within Eskom’s risk appetite and  “Report by the Investment and Finance Committee” tolerance framework – to support sustainable value creation. Strong operational  “Reinforcing controls and assurance” performance drives improved financial outcomes, while a stable financial  “Disclosure of information under the PFMA” position provides the liquidity to execute our strategy and sustain operational improvements. PR P  erformance report  “Enhancing financial sustainability” We have sustained the gains first seen in FY2025, with further improvements in  “Non-technical statistics” plant performance and system reliability. A higher tariff supported revenue growth, while an improved operating environment enabled efficiencies and continued  “Customer information” cost discipline. Together, these delivered our second successive year of strong profitability and enhanced liquidity, while laying a solid foundation from which to advance our strategic priorities. PERFORMANCE FOR FY2026 AT A GLANCE Standard tariff increase Sales volumes EBITDASC Net profit after tax Debt service coverSC, 1 Municipal arrear debt 12.74% 6.2% to 178TWh 10.9% to R108.6 billion 2.2x to R30.3 billion 1.55 17.9% to R111.6 billion (2025: 12.74%) (2025: 189.7TWh) (2025: R98 billion) (2025: R14 billion) (2025: 1.11) (2025: R94.6 billion) / Favourable movement / Unfavourable movement SC KPI included in the shareholder compact for FY2026. 1. The calculation for FY2026 includes the once-off conversion of a R20.1 billion China Development Bank (CDB) facility from USD to CNY. The debt service cover ratio excluding the CDB conversion amounted to 2.29. R billion % R billion TWh R billion Ratio R billion Ratio 120 40 400 210 500 15 100 4 100 350 200 80 30 400 80 300 3 250 190 60 10 300 60 200 180 40 20 2 150 20 200 40 170 5 100 0 10 1 160 100 20 50 -20 0 150 -40 0 0 0 0 0 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Revenue Sales volumes Net profit/(loss) before tax EBITDA Debt securities and borrowings Cash from operations Gross debt/EBITDA Debt/equity ratio Cash interest cover ratio Debt service cover ratio 91 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Enhancing financial sustainability continued OUR FINANCIAL STRATEGY Profitability Financial sustainability cannot be Revenue Cost Balance sheet Municipal debt delivered through any single intervention. security efficiencies optimisation reduction Improve income statement It requires a coordinated response Strengthen balance sheet Securing revenue Driving structural cost Deleveraging the Shifting to structural to the structural pressures affecting Revenue security Balance sheet independent of tariff optimisation through balance sheet and revenue protection and revenue, costs, liquidity and the balance and enhancement optimisation increases by growing the Cost Optimisation strengthening liquidity reform under sheet, while readying the group for a demand, diversifying and Revenue to build financial Government’s municipal transforming and increasingly competitive OPS revenue streams and Enhancement (CORE) resilience and progress debt relief programme, electricity market. Our financial modernising tariff programme supported towards standalone to stabilise cash flows Municipal debt strategy places operations at the centre, Cost efficiencies reduction structures by operational investment-grade status supported by four interdependent excellence pillars and a set of strategic enablers that together drive execution. Liquidity Leverage OUR FINANCE VALUE STORY STRATEGIC ENABLERS TO SUPPORT MORE EFFECTIVE FINANCIAL MANAGEMENT IN A COMPLEX FY2026 delivered measurable structural progress against each of the four pillars of our financial strategy, continuing to move the group's financial trajectory from recovery towards a stable foundation for long- AND EVOLVING ENVIRONMENT term sustainability. Audit Digital ESG Enable Operating Talent and recovery transformation integration unbundling model refresh culture IR Financial results for the year are set out under “Condensed annual financial statements” from page 87 Strengthening Improving Embedding Supporting Enabling agility, Investing in skills the control efficiency of ESG in unbundling accountability and capabilities to environment finance and finance and readiness in and cost support a Our ambition is clear: to achieve standalone investment-grade status and audit procurement unlocking capital and discipline high-performance, without reliance on Government guarantees or financial support, creating outcomes activities, data new funding reporting ethical culture integrity and structures enduring value for our shareholder, for our customers and for South Africa. decision-making – Calib Cassim, Group Chief Financial Officer HOW FINANCIAL CAPITAL ENABLES OUR STRATEGY Pursue financial REVENUE SECURITY although it may yet proceed on a non-urgent and operational Position Eskom as Drive a just and Modernise the power The defining regulatory development was the basis. The case has no retrospective effect on the sustainability energy sector leader inclusive transition ecosystem resolution of the MYPD 6 dispute. Following validity of the tariffs for FY2026 and FY2027. the High Court's decision in December 2025 Fix the Prepare for Transition Leverage Separately, a R40.2 billion NERSA settlement in to set aside the settlement between NERSA current business competitiveness responsibly technology May 2025 finalised the RCA review applications and Eskom, NERSA approved additional Strengthening cash Building a stronger Mobilising capital for Investing in new allowable revenue of R54.7 billion after further for FY2015 to FY2021; this was endorsed by generation to fund balance sheet and environmental technologies, public consultation. Of this, R35 billion will court order and will be recovered beyond maintenance and diversified revenue base, compliance, renewable infrastructure and digital be recovered through revised tariff increases MYPD 6. We have proposed the recovery of operational needs, while attracting the and clean coal solutions to enable a of 8.76% for FY2027 and 8.83% for FY2028 this amount in a phased manner to minimise restore plant and investment and skills to technology, and modern, customer- (compared to 5.36% and 6.19% in the original the impact to customers; this will be considered network reliability, compete in a liberalising decommissioning, while centric power system decision), with R19.7 billion deferred to a future during the public consultation process for the achieve operational market supporting our determination beyond MYPD 6. In June 2026, FY2025 RCA. We submitted our FY2025 RCA excellence and unlock communities through AfriForum launched an urgent application application to NERSA in March 2026, amounting new growth the transition challenging NERSA’s latest decision; NERSA to R8.9 billion in favour of customers. This was issued its reasons for decision in July 2026, and due to underspend on IPPs and international the matter was struck off the urgent court roll purchases in that year, given the improvements in our generation performance. 92 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Enhancing financial sustainability continued In parallel, the revised retail tariff plan continues to be The programme delivered R22.4 billion in FY2026 HOW WE IMPACTED VALUE IN FY2026 phased in over three years, improving cost reflectivity against a R21 billion stretch target, driven by higher with the introduction of generation capacity charges international sales and lower-than-planned energy VALUE CREATED VALUE PRESERVED VALUE ERODED and a rebalancing between fixed and variable charges losses, combined with savings from lower coal, OCGT – this constitutes a structural reform that outlives any and IPP usage, which was enabled by improved • Delivered a second • Strengthened the balance • Municipal arrear debt single price determination. generation availability and lower demand. successive year of strong sheet, with net debt reduced continued to escalate, profitability, sustaining our to R313.3 billion, though remaining the single The Department of Electricity and Energy (DEE) has At its inception, CORE set out to deliver cumulative financial turnaround further deleveraging is largest threat to financial revised South Africa’s Electricity Pricing Policy (EPP), savings and revenue contributions of R112 billion from required sustainability • Strengthened EBITDA aimed at improving affordability, transparency and FY2026 to FY2030. To support this, base reductions margin, with operating • Improved solvency, with • Structural overcapacity of predictability in tariff setting. We will actively participate in operating expenditure of R5 billion per year were cash flows sufficient to fully debt/equity and gross debt/ 2–3GW emerged for the in the consultation process on the EPP and the Electricity embedded in the FY2027 to FY2031 budgets to fund the capital investment EBITDA ratios advancing to first time in more than a Sector Market Transformation Position Paper, which drive immediate cost discipline. Beyond this, the programme long-term target levels decade, threatening asset were published for comment in August 2026, as the programme is identifying further cost optimisation • Embedded structural cost • Safeguarded liquidity through utilisation and cost recovery outcome will have significant implications for the long- and revenue opportunities to support the group in term tariff path and transformation of the sector. achieving a sustainable EBITDA margin over the next discipline through the CORE Government debt relief • Structural sales decline five years, in line with investment-grade expectations. programme as a permanent support, enabling scheduled exacerbated by constraints Given the sharp reduction in demand from industrial The phasing of these targets is being assessed to way of operating bond redemptions affecting energy-intensive smelters in FY2026, interim concessionary negotiated maintain a sustainable pipeline of interventions • Secured additional allowable • Lessened the fiscal burden customers, further eroding pricing agreements (NPAs) were approved by over the next five years, with a focus on primary revenue through the through a reduced debt the revenue base NERSA for two ferrochrome smelter customers energy cost optimisation, procurement and supply resolution of the MYPD 6 relief package • Net amount of R15.8 billion from 1 June 2026, retaining approximately 13TWh chain efficiencies, operational improvements, digital court review and regulatory • Advanced solutions to retain billed revenue not of strategic annual industrial demand that would transformation, capital productivity and revenue clearing account (RCA) strategic industrial demand, recognised owing to non- otherwise have been lost, to protect jobs and broader growth opportunities. settlements protecting revenue, jobs and collectability from municipal economic stability. • Received positive export value chains and residential customers BALANCE SHEET OPTIMISATION credit rating actions, • Recognised early signs of • Agreement to dispose of Sustained operational improvements combined with Solvency ratios improved significantly in FY2026, demonstrating strengthened improved municipal payment EFC’s loan book lapsed, structurally lower demand have given rise to surplus supported by improved EBITDA and operating creditworthiness discipline through payment further deferring the capacity of 2–3GW, threatening asset utilisation and cash flows, and a reduction in external debt. The arrangements and National realisation of value cost recovery, while creating an opportunity to meet Eskom Debt Relief Amendment Act, 2025 revised emerging demand in new markets and grow revenue Treasury enforcement Government’s debt relief package from R250 billion against non-compliant independent of tariff increases. We are pursuing to R230 billion due to our improved financial position. a pipeline of energy-intensive and flexible-load municipalities The R70 billion support originally planned for FY2027 customer projects, customer wheeling optimisation, was withdrawn, while FY2026 support was increased NPAs on a case-by-case basis, as well as renewable from R40 billion to R80 billion to support the ES26 agreements and electric vehicle charging through FY2025. This positions gross debt on a trajectory incremental funding of around R25 billion per year bond redemption on 2 April 2026 and other debt Eskom Green. We are also strengthening South to reduce to around R300 billion by FY2031, with a from FY2028 to support transmission network servicing obligations. The R80 billion received in Africa’s role in the Southern African Power Pool, corresponding debt/equity ratio of around 0.5. expansion, emission reduction projects and renewable March 2026 was recognised as a shareholder loan at supported by cross-border power supply agreements generation capacity. An ESG funding framework is year end and subsequently approved for conversion Over the next five years, we are targeting drawdowns and new regional transmission interconnections to being developed to support green and sustainability- to equity by the Minister of Finance in August 2026. of R13.1 billion from committed facilities with unlock export opportunities. linked financing; private sector partnership models are Since inception of the debt relief programme, Eskom development finance institutions and export credit also being explored. has received R220 billion from National Treasury, agencies. This will be supplemented by aspirational COST EFFICIENCIES with the final R10 billion being planned for FY2029 to Through the CORE programme, we are support the EL28 bond redemption in May 2028. institutionalising cost discipline as a permanent way We recognise that tariff increases alone are not sustainable. Enhancing revenue will of operating, with targets integrated into divisional Gross debt (excluding shareholder loans) decreased performance commitments to ensure accountability, to R356.2 billion (2025: R372.7 billion), while equity depend on diversifying revenue streams, modernising tariff structures for a reformed from executive leadership down to the operational strengthened due to the conversion to equity of market, strengthening collection, and retaining and growing sales. teams responsible for delivery. the R56 billion shareholder loan outstanding from – Dan Marokane, Group Chief Executive 93 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Enhancing financial sustainability continued The audit recovery programme continued to Standalone ratings nevertheless remain several In February 2026, National Treasury issued strengthen the control environment, addressing prior notches below investment grade – the pathway to termination letters to 13 municipalities that have TRADE-OFFS AND INTERCONNECTIONS year audit findings as we work towards ultimately investment grade depends on sustaining operational failed to comply with the conditions of the municipal WITH OTHER CAPITALS securing an unqualified audit opinion. This is central performance, resolving municipal arrear debt and debt relief programme. We issued a notice of intent Our financial performance cannot be separated to rebuilding the earnings quality and reporting continuing financial discipline. to terminate or limit supply to these municipalities from performance across the other capitals. credibility on which access to capital ultimately through the Promotion of Administrative Justice Investing in our people, infrastructure, depends. Divestment of non-core assets remains part of our Act, 2000 (PAJA) process. After year end, National strategy, with net proceeds earmarked for debt environment and communities required Treasury issued a second round of termination letters deliberate trade-offs in which we prioritised settlement in terms of the conditions of the debt to a further 14 municipalities. IR R  efer to “Reinforcing controls and assurance” from relief package. The agreement to dispose of the loan long-term sustainability over short-term financial page 58 for further information on the audit recovery book of Eskom Finance Company SOC Ltd (EFC) to Our approach has shifted from merely collecting returns. programme African Bank lapsed after conditions precedent were revenue to structural revenue protection. Distribution Human capital: Investment in skills, incentive not fulfilled by 31 March 2026. We are assessing the agency agreements (DAAs) were in place with schemes, safety and employee wellbeing We have received several positive credit rating most suitable way forward in consultation with the three municipalities at year end – Emfuleni, Maluti- sustained the workforce’s contribution to actions, reflecting rating agencies’ view that our shareholder. A-Phofung and Merafong. In response to our PAJA the operational turnaround and supported creditworthiness has strengthened, which was actions, several more municipalities have obtained retention, but increased employee benefit costs underpinned by improved operating performance and In May 2026, the Board approved the disposal council resolutions to conclude DAAs; they are a stabilising financial position, as well as Government of Pebble Bed Modular Reactor SOC Ltd and its proceeding with the section 78 process under the Manufactured and intellectual capital: support and broader sovereign strength. subsidiaries to the South African Nuclear Energy Municipal Systems Act, 2000 required by National Directing liquidity towards maintenance Corporation SOC Ltd (Necsa), subject to regulatory Treasury for them to conclude DAAs. programmes and capital investment approvals. strengthened plant reliability and unlocked S&P In July 2026, National Treasury invoked section new capacity, while investment in systems, November 2025 RESOLVING MUNICIPAL DEBT 216(2) of the Constitution and temporarily digitalisation and modernisation enhanced the Municipalities account for approximately 44% of withheld quarterly equitable share transfers to Upgraded foreign and local ratings asset base, driving future performance our sales, and payment discipline in this segment 69 non-compliant municipalities – of which 36 are from B to B+ remains a systemic risk to the electricity industry participating in the municipal debt relief programme – Natural capital: Procuring reliable primary Stable outlook and, beyond that, to the sovereign. Arrear municipal pending compliance with specific conditions, including energy resources sustained generation debt increased to R111.6 billion at year end (2025: conclusion of payment agreements with key creditors performance and enhanced energy security, R94.6 billion), though the balance was below the level such as Eskom, where applicable. This is a significant while investment in emission-abatement Moody’s assumed in our FY2026 financial plan, supported step by Government towards strengthening municipal technology and funding set aside for May 2026 by improved municipal capital payment levels and payment discipline. decommissioning and renewable energy payment arrangements with key metros. Municipal advanced regulatory compliance and our net- Affirmed foreign and local ratings arrear debt has continued to escalate after year end, Without decisive intervention, arrear debt is at B2 zero commitment, although it represents a reaching R119.9 billion by June 2026. projected to escalate to around R358 billion growing requirement for future financial capital Stable outlook by FY2031, jeopardising the legal separation of Progress on National Treasury’s municipal debt relief Distribution and prolonging Eskom’s reliance on Social and relationship capital: Tariff relief for programme remained disappointing, with 60 of 71 Government support. In July 2026, President struggling industries together with support for Fitch participating municipalities still failing to settle their Ramaphosa endorsed the Phase I report of the Eskom defaulting municipalities and debt relief measures June 2026 current accounts consistently by year end. National Restructuring Task Team, which identified municipal protected jobs, industrial capability and service Treasury had requested R4.2 billion in cumulative arrear debt as a threat to Eskom and the broader continuity, while corporate social investment, Upgraded local ratings write-offs by 31 March 2026 for 24 municipalities with electricity sector. We will continue to support electrification efforts and the Just Energy from B to B+ varying levels of compliance, of which R547 million Government’s efforts to implement a consolidated Transition supported inclusive development, Stable outlook was accounted for in FY2025 and R3.6 billion in action plan to address municipal non-payment. albeit at the expense of short-term cash flows FY2026. Between May and June 2026, Eskom was requested to write off a further R4 billion for 21 municipalities; governance processes are underway for these write-offs to be processed in FY2027. 94 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Enhancing financial sustainability continued KEY RISKS TO FINANCIAL CAPITAL AND HOW WE MANAGE THEM Key risks How we manage these risks Policy and regulatory Applying scenario planning and disciplined capital allocation aligned to our strategy uncertainty Sustaining legal engagement to defend revenue recovery on RCA and MYPD outcomes Engaging actively with policy setters on the design of the wholesale electricity market and related tariff structures and pricing Inadequate long-term Engaging actively in NERSA processes and related court cases tariff path Advocating for regulatory reform and modernised tariff structures Driving cost efficiencies as a permanent way of operating Supporting the finalisation of the revised Electricity Pricing Policy Structural overcapacity Retaining and growing sales through short-, medium- and long-term initiatives, including NPAs, energy-intensive and and declining sales flexible-load customer projects, combined with renewable sales through Eskom Green as well as new products and services volumes Managing exposure to contractual take-or-pay obligations Escalating municipal Strengthening payment enforcement by exercising our legal rights arrear debt Pursuing action under PAJA processes to limit or terminate supply to defaulting municipalities Concluding DAAs and payment arrangements Supporting national and provincial treasury processes Geopolitical and Diversifying the sourcing of long-lead items to reduce supply chain and currency exposure macroeconomic risk Managing fuel cost risks through conservative OCGT utilisation and adequate diesel stock levels Broadening access to international capital through an ESG funding framework and public-private partnerships Access to and Sustaining operational and financial performance to achieve standalone investment-grade status affordability of capital Strengthening liquidity buffers and diversifying funding sources Ensuring continued compliance with debt relief conditions for the remainder of Government’s debt relief package Maintaining a sustainable path to reduce gross debt to lower interest costs Commodity and market Hedging exposure to commodity price and exchange rate movements volatility Managing primary energy stock levels to buffer supply and price shocks Optimising the production mix to manage commodity risks Climate adaptation and Managing exposure to carbon budget regulations through coordinated stakeholder engagement carbon cost Accessing climate-linked finance to fund the Just Energy Transition, emission-abatement investments and projects required for MES compliance Integrating climate risk into capital allocation and investment decisions Internal control and audit Executing the audit recovery programme to address prior year qualified audit opinions and weaknesses in the control outcomes environment Enhancing first-line assurance to strengthen accountability for the control environment Strengthening PFMA compliance across the group through awareness training and improved assessment and determination as well as reporting Maturing our combined assurance model and related activities Market restructuring and Advancing the unbundling programme across Generation, Transmission and Distribution unbundling execution Strengthening finance readiness and capital allocation for the new operating model Positioning Eskom competitively for a liberalised market Diversifying funding to reduce reliance on Government support 95 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Enhancing financial sustainability continued OUTLOOK SHORT TERM: FY2027 MEDIUM TERM: FY2027 TO FY2031 LONG TERM: BEYOND FY2031 • Support energy-intensive customers through • Stabilise sales at around 178TWh, with the • Migrate towards a sustainable and affordable NPAs for load retention, and engage the IDC potential for growth through new products, long-term tariff path and Mozal on a viable business case to resume services and customer segments • Deliver a sustainable EBITDA margin of operations • Adopt the 8.83% tariff increase for FY2028 around 30% • Implement the 8.76% tariff increase for FY2027 • Modernise tariff structures and finalise the • Achieve standalone investment-grade status • Participate in the consultation process around MYPD 7 application for FY2029 onwards without reliance on Government guarantees DEE’s revised Electricity Pricing Policy • Finalise the recovery of outstanding RCAs or support • Embed R5 billion annual savings in the cost through NERSA’s processes • Resolve municipal debt challenges and support base and conclude additional CORE targets • Exceed the cumulative R112 billion CORE reform of the distribution industry from FY2027 target by FY2030 • Achieve financial maturity of the refined group • Settle the R38 billion ES26 bond in April 2026 • Generate sufficient cash flows to support structure, including Eskom Green and separate • Advance the ESG funding framework and R54.5 billion capital expenditure in FY2027, generation, distribution and transmission Eskom’s return to capital markets increasing to over R70 billion by FY2031 companies as well as an independent state- • Progress DAAs through the section 78 process • Reduce gross debt below R300 billion and owned TSO to stabilise municipal payment levels and achieve a debt/equity ratio of 0.5 support Government’s consolidated action • Execute up to R25 billion in annual green plan to address municipal non-payment financing and sustainability-linked issuances • Drive the audit recovery programme to from FY2028 enhance the control environment and • Finalise divestment of non-core subsidiaries strengthen PFMA compliance • Conclude the municipal debt relief programme and related arrear debt write-offs • Mature the combined assurance model and secure unqualified audit opinions 96 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Abbreviations AC Audit Committee (a Board committee) FGD Flue gas desulphurisation ACI African, Coloured and Indian GCE Group Chief Executive AEL Atmospheric emissions licence GCFO Group Chief Financial Officer B-BBEE Broad-based black economic empowerment GDP Gross domestic product BESS Battery energy storage system GIS Group Investigations and Security Department BOPC Business Operations Performance Committee GSC Governance and Strategy Committee (a Board committee) (a Board committee) CAIDI Customer average interruption duration index GW Gigawatt = 1 000 megawatts (see glossary) GWh Gigawatt-hour = 1 000MWh CCMA Council for Conciliation, Mediation and HCR Human Capital and Remuneration Committee Arbitration (a Board committee) CORE Cost Optimisation and Revenue Enhancement IASB International Accounting Standards Board CSA Coal supply agreement (part of the IFRS Foundation) CSI Corporate social investment IDC Industrial Development Corporation of South Africa Ltd DAA Distribution agency agreement IFC Investment and Finance Committee DEE Department of Electricity and Energy (a Board committee) DFFE Department of Forestry, Fisheries and the IFRS ® International Financial Reporting Standards Environment INPO Institute of Nuclear Power Operations DFI Development finance institution IPP Independent power producer (see glossary) DMPR Department of Mineral and Petroleum Resources IRP Integrated Resource Plan DoA Delegation of authority ISSB International Sustainability Standards Board (part of the IFRS Foundation) DWS Department of Water and Sanitation King IV King IV Report on Corporate GovernanceTM EAF Energy availability factor (see glossary) for South Africa, 2016 EBITDA Earnings before interest, taxation, King V King V Report on Corporate GovernanceTM for depreciation and amortisation, and fair value South Africa, 2025 adjustments kℓ Kilolitre = 1 000 litres ECA Export credit agency 7 KPI Key performance indicator ERI Eskom Rotek Industries SOC Ltd kt Kiloton = 1 000 tons ERTT Eskom Restructuring Task Team (established by the Presidency) kV Kilovolt = 1 000 volts 97 Abbreviations 99 Glossary of terms ESG Environmental, social and governance kWh Kilowatt-hour = 1 000 watt-hours (see glossary) Sustainability indicators selected for ESP Electrostatic precipitator kWhSO Kilowatt-hour sent out 101 reasonable assurance EUF Energy utilisation factor (see glossary) LTIR Lost-time injury rate (see glossary) Independent sustainability assurance report Exco Executive Management Committee MES Minimum Emission Standards 105 by Deloitte & Touche FFP Fabric filter plant Mℓ Megalitre = 1 million litres 107 Corporate information 97 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Abbreviations continued MOI Memorandum of incorporation SADC Southern African Development Community mSv Millisievert SAIDI System average interruption duration index (see glossary) Mt Million tons SAIFI System average interruption frequency index MVA Megavolt-ampere = 1 million volts (see glossary) MW Megawatt = 1 million watts SALGA South African Local Government Association MWh Megawatt-hour = 1 000kWh SAPP Southern African Power Pool MWhSO Megawatt-hour sent out SARS South African Revenue Service MYPD Multi-year price determination SES Social, Ethics and Sustainability Committee NECOM National Energy Crisis Committee (a Board committee) NEDCSA National Electricity Distribution Company SIU Special Investigating Unit of South Africa SOC Ltd SOC State-owned company NEMA National Environmental Management Act, 1998 SSEG Small-scale embedded generation NEMAQA National Environmental Management: Air TMPS Total measured procurement spend Quality Act, 2004 TWh Terawatt-hour = 1 000GWh NERSA National Energy Regulator of South Africa UAGS Unplanned automatic grid separations NNR National Nuclear Regulator UCLF Unplanned capability loss factor (see glossary) NPA Negotiated pricing agreement WANO World Association of Nuclear Operators NTCSA National Transmission Company South Africa SOC Ltd OCGT Open-cycle gas turbine (see glossary) OCLF Other capability loss factor (see glossary) OEM Original equipment manufacturer PCLF Planned capability loss factor (see glossary) PFMA Public Finance Management Act, 1999 PPA Power purchase agreement PRFI Public recordable fatality incident (see glossary) PV (Solar) photovoltaic RC Risk Committee (a Board committee) RCA Regulatory clearing account RE-IPP Renewable energy independent power producer RMIPPPP Risk Management Independent Power Producer Procurement Programme 98 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Glossary of terms Arrear debt as percentage of revenue Gross arrear debt written off (relating to electricity receivables only) divided by gross electricity revenue multiplied by 100 Base-load plant Largely coal-fired and nuclear power stations, designed to operate continuously Cash interest cover (ratio) Provides a view of the company’s ability to satisfy the interest burden on its borrowings by utilising cash generated from operating activities. It is calculated as net cash from operating activities divided by net interest paid (interest paid on financing activities less interest received from financing activities) Current ratio (The current portion of inventory, payments made in advance, trade and other receivables and taxation assets) divided by (the current portion of trade and other payables, payments received in advance, provisions, employee benefit obligations and taxation liabilities) Customer average interruption duration The average time it takes to restore service to a customer during an outage, measured in hours. Calculated by dividing the total duration of all customer interruptions by the total number of customer index (CAIDI) interruptions, or alternatively, SAIDI divided by SAIFI. The approved exclusion criteria (as defined in NRS 047) are not applied in the measurement Daily peak Maximum amount of energy demanded by consumers in one day Debt/equity including long-term provisions Net financial assets and liabilities plus non-current retirement benefit obligations and non-current provisions divided by total equity Debt service cover (ratio) Cash generated from operations divided by (net interest paid from financing activities plus debt securities and borrowings repaid) Decommission To remove a facility (e.g. a reactor, a unit or an entire power station) from service and either store it safely or dismantle it Demand-side management Planning, implementing and monitoring activities to encourage consumers to use electricity more efficiently, including both the timing and level of demand EBITDA margin EBITDA as a percentage of revenue (excluding revenue not recognised due to uncollectability) Electricity operating costs per kWh Electricity-related costs (primary energy costs, employee benefit costs plus net impairment loss and other operating expenses, less other income) divided by total kWh sales multiplied by 100 Electricity revenue per kWh Electricity revenue (including electricity revenue not recognised due to uncollectability) divided by total kWh sales multiplied by 100 Embedded derivative Financial instrument that causes cash flows that would otherwise be required by modifying a contract according to a specified variable such as currency Energy availability factor (EAF) Measures power station availability, taking account of both planned and unplanned energy losses under the control of plant management, as well as other non-controllable energy losses, measured as a percentage of total operational capacity Energy efficiency Programmes to reduce energy used by specific end-use devices and systems, typically without affecting services provided Energy utilisation factor (EUF) Ratio of actual electrical energy produced during a period of time divided by the total available energy capacity. It is a measure of the degree to which the available energy capacity of an electricity supply network is utilised. Available energy capacity refers to the capacity after all unavailable energy (planned and unplanned energy losses) has been taken into account, and represents the net energy capacity made available to the System Operator or national grid Fatality An incident in which or in consequence of which, any person (an employee, contractor or member of the public) dies. To be classified as a fatality it must occur at work, or arise out of or in connection with the activities of persons at work, or in connection with the use of plant or machinery. It is reported based on the date on which the incident occurred, regardless of the time intervening between the injury and/or exposure to the cause and the resulting loss of life Forced outage Shutdown of a generating unit, transmission line or other facility for emergency reasons or a condition in which generating equipment is unavailable for load due to unanticipated breakdown Free basic electricity Amount of electricity deemed sufficient to provide basic electricity services to a poor household (50kWh per month) Free funds from operations Cash generated from operations adjusted for working capital Gross debt Debt securities and borrowings plus finance lease liabilities plus the after-tax effect of provisions and employee benefit obligations Gross debt/EBITDA ratio Gross debt divided by earnings before interest, taxation, depreciation, amortisation and fair value adjustments Independent non-executive director A director who (a) is not a full-time salaried employee of the company or its subsidiary nor a shareholder representative; (b) has not been employed by the company in any executive capacity in any of the past three financial years; (c) is not a professional advisor, significant supplier or customer of the company; and (d) is not receiving remuneration contingent on the performance of the company Independent power producer (IPP) Any entity, other than Eskom, that owns or operates, in whole or in part, one or more independent power generation facilities Kilowatt-hour (kWh) Basic unit of electric energy equal to one kilowatt of power supplied to or taken from an electric circuit steadily for one hour Lead Independent Director (LID) Acts as a sounding board for the Chairman and can lead or chair Board meetings in the Chairman’s absence or when he has a conflict of interest (effectively a deputy chairperson). The LID can assist with amplifying the voice of other board members and resolving problematic board dynamics. The LID will also lead the Chairman’s performance appraisal Load Amount of electric power delivered or required on a system at any specific point Load curtailment Typically, larger industrial customers reduce their demand by a specified percentage for the duration of a power system emergency. Due to the nature of their business, these customers require two hours’ notification before they can reduce demand Load management Activities to influence the level and shape of demand for electricity so that demand conforms to the present supply situation, long-term objectives and constraints 99 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Glossary of terms continued Loadshedding Scheduled and controlled power cuts that rotate available capacity between all customers when demand is greater than supply in order to avoid blackouts. Distribution or municipal control rooms open breakers and interrupt load according to predefined schedules. Use of the term loadshedding typically includes the concept of load curtailment Lost-time injury (LTI) A work injury which arises out of and in the course of employment and which renders the injured employee or contractor unable to perform their regular/normal work on one or more full calendar days or shifts, other than the day or shift on which the injury occurred. It includes occupational diseases and fatalities Lost-time injury rate (LTIR) Proportional representation of the occurrence of lost-time injuries over 12 months per 200 000 working hours Major incident An interruption on the transmission network with a severity ≥1 system minute Maximum demand Highest demand of load within a specified period Non-technical losses Energy losses due to electricity theft through illegal connections, tampering and bypassing of electricity meters, as well as the purchase of electricity tokens from unregistered or illegal vendors. It includes meter reading and billing errors Occupational disease/illness Any confirmed disease/illness arising out of, and in the course of, an employee’s employment, that is listed in Schedule 3 of the Compensation for Occupational Injuries and Diseases (COID) Act, 1993, or any other condition as determined by an occupational health practitioner Off-peak Period of relatively low system demand Open-cycle gas turbine (OCGT) Liquid fuel turbine power station that forms part of peak-load plant and runs on kerosene or diesel. Designed to operate in periods of peak demand Other capability loss factor (OCLF) Energy losses outside of a station’s control as well as internal non-engineering constraints, measured as a percentage of total operational capacity Outage Period in which a generating unit, transmission line, or other facility is out of service Peak demand Maximum power used in a given period, traditionally between 7:00 and 10:00 as well as 18:00 to 20:00 in summer; and 6:00 to 9:00 as well as 17:00 to 19:00 in winter Peaking capacity Generating equipment normally operated only during hours of highest daily, weekly or seasonal loads Peak-load plant Gas turbines, hydroelectric or a pumped storage scheme used during periods of peak demand Planned capability loss factor (PCLF) Energy losses due to planned maintenance on power station units, whether due to full shutdowns or partial load reduction, measured as a percentage of total operational capacity Primary energy Energy from natural resources, e.g. coal, diesel, uranium, sunlight, wind and water Public recordable fatality incident (PRFI) An incident resulting in the electrocution of a member of the public by coming into contact with Eskom apparatus within the point of supply, as well as any work-related incident where an Eskom employee or contractor is responsible for the death of a member of the public. It excludes electrocution resulting from criminal activities or incidents where a member of the public is solely at fault. The electrocution of a minor as a result of criminal activity will, however, be regarded as a PRFI Pumped storage scheme A lower and an upper reservoir with a power station/pumping plant between the two. During off-peak periods the reversible pumps/turbines use electricity to pump water from the lower to the upper reservoir. During periods of peak demand, water runs back into the lower reservoir through the turbines, generating electricity Reserve margin Difference between net system capability and the system’s maximum load requirements (peak load or peak demand) Return on assets EBIT divided by the regulated asset base, which is the sum of property, plant and equipment, trade and other receivables, inventory and future fuel, less trade and other payables and deferred income Sustainability Refers to practices that can be maintained without harming the environment, society or the economy, and considers future generations. It involves finding a balance between the needs of the present and the ability of future generations to meet their own needs System average interruption duration The average duration of interruptions on the distribution network experienced by customers during a year, measured in hours. It excludes events where the approved exclusion criteria (as defined in index (SAIDI) NRS 047) have been applied System average interruption frequency The average frequency of interruptions on the distribution network experienced by customers during a year, measured in number of events. It excludes events where the approved exclusion criteria index (SAIFI) (as defined in NRS 047) have been applied System minute Global benchmark for measuring the severity of transmission network interruptions to customers. One system minute is equivalent to the loss of the entire system for one minute at annual peak. A major incident is an interruption with a severity ≥1 system minute Technical losses Naturally occurring losses that depend on the power systems used Unit capability factor (UCF) Measure of availability of a generating unit, indicating how well it is operated and maintained Unplanned capability loss factor (UCLF) Energy losses due to outages are considered unplanned when a power station unit has to be taken out of service and it is not scheduled at least four weeks in advance, measured as a percentage of total operational capacity Used nuclear fuel Nuclear fuel irradiated in and permanently removed from a nuclear reactor. Used nuclear fuel is stored on site in used fuel pools or storage casks Watt The watt is the International System of Units’ (SI) standard unit of power. It specifies the rate at which electrical energy is dissipated (energy per unit of time) Wheeling Refers to the movement of electricity between international customers through Eskom’s network, without the power being available to customers on the South African grid 100 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Sustainability indicators selected for reasonable assurance Deloitte & Touche has been engaged to provide reasonable assurance on selected sustainability key performance indicators (KPIs) for the year ended 31 March 2026. These KPIs are reported based on internally developed measure specification documents (MSD) which set out the reporting criteria. These criteria are summarised in the measurement description for each KPI in the table below. All but three of the 39 KPIs scoped for reasonable assurance received an unqualified opinion. IR Refer to the independent sustainability assurance report from page 105 for further information The selected KPIs and corresponding performance for the year ended 31 March 2026 are as follows: Unit of Actual Key performance indicator measure Measurement description Boundary 2026 Achieve universal access, availability, affordability and quality Lost-time injury rate (employees only)SC Rate Proportional representation of lost-time injuries over 12 months per 200 000 working hours. The measure includes occupational diseases Group 0.18RA but excludes third party at fault incidents and all passengers in commuting incidents Energy availability factor (EAF)SC % Measures power station availability of official generating units based on nominal capacity. It considers planned and unplanned energy losses Group 65.16RA under the control of plant management, as well as other non-controllable losses Planned capability loss factor (PCLF) % Energy losses due to planned maintenance on power station units, whether due to full shutdowns or partial load reduction Group 11.55RA Unplanned capability loss factor (UCLF) % Unplanned losses, whether due to full breakdowns or partial unavailability of plant Group 22.88RA Other capability loss factor (OCLF) % Energy losses outside of a station’s control as well as internal non-engineering constraints Group 0.41RA Particulate emissions kt The mass of particulates emitted from Eskom’s coal-fired power stations Group 176.32RA Relative particulate emissionsSC kg/MWh sent out The mass of particulates emitted from Eskom’s coal-fired power stations per unit of energy sent out Group 0.98RA Carbon dioxide emissions (from fossil fuel generation) Mt CO2 Tonnage of CO2 emitted through fossil fuel generation Group 184.00RA Specific water consumption SC ℓ/kWh sent out The amount of raw water used for power generation per unit of energy sent out Group 1.34RA System minutes lost <1 SC Minutes Measures the sum of system minutes lost for interruptions on the transmission network. It excludes major incidents with a severity of one Group 3.10RA minute or more System average interruption duration index (SAIDI)SC Hours The average duration of interruptions on the distribution network experienced by customers during a year Group 35.09Q Note 1 System average interruption frequency index (SAIFI)SC Events The average frequency of interruptions on the distribution network experienced by customers during a year Group 11.72Q Note 1 Total electrification connectionsSC Number New connections of households and farm dweller houses in Eskom’s licensed areas of supply, funded from Government’s electrification Group 67 578RA programme or directly by Eskom Off-grid electrification connectionsSC Number New connections through off-grid distributed energy resources, such as microgrids, rooftop solar installed by Eskom, and other solutions. Group 2 119RA It includes the connection of customers and backup supplies Distribution total energy lossesSC % Losses incurred on the distribution network in the process of receiving energy from the transmission network and supplying energy to Group 10.54RA Eskom’s end customers. Losses may arise from technical and non-technical reasons. The latter includes losses due to electricity theft through illegal connections, tampering and bypassing of electricity meters, as well as the purchase of electricity tokens from unregistered or illegal vendors. Meter reading and billing errors are included Payment levels (excluding municipalities and metros)SC % Total payments received as a percentage of amounts invoiced to customers (excluding municipalities and metros) for electricity Group 100.19RA consumption, including interest Capital payment levels (municipalities and metros)SC % Total payments received as a percentage of amounts invoiced to municipalities and metros for electricity consumption, excluding interest Group 89.74RA Customer DelightSC Index Composite customer satisfaction measure covering customer surveys from key customers as well as selected small power users who have Group 3.77Q contacted the Customer Contact Centre, had their cases closed and where then contacted by Eskom to get their feedback. It also measures Note 2 performance of customer care channels, resolution of customer issues and queries, and execution of distribution planned outages EBITDASC R million Earnings before interest, tax, depreciation and amortisation, and fair value adjustments Group 108 648RA 101 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Sustainability indicators selected for reasonable assurance continued Unit of Actual Key performance indicator measure Measurement description Boundary 2026 Cash interest cover ratioSC Ratio Operating cash flows available to service net interest on borrowings Group 3.80RA Debt service cover ratio SC Ratio Operating cash flows available to service net interest and capital repayments on borrowings 1 Group 1.55RA Assessment of whistle-blower reports completed within % The completion rate of assessments on whistle-blower reports within 30 calendar days of being registered on the case management Group 95.45RA 30 calendar days of being registeredSC system Investigations that commenced within 60 calendar days of % The commencement rate of forensic investigations within 60 calendar days of preliminary assessment reports being completed. Measured Group 11.61RA the preliminary assessment report being completedSC only on cases where the preliminary assessment recommended a full-scope forensic investigation Cases where recommendations emanating from forensic % The implementation rate of disciplinary recommendations within 90 calendar days of forensic investigations being completed. Measured Group 50.82RA investigations have been fully implementedSC based on the percentage of disciplinary referrals that have been tabled with the presiding officer of the disciplinary hearing Attain sovereign and regional energy security Transmission lines installedSC km New high-voltage transmission lines installed on the transmission network Group 270.8RA Transmission transformer capacity installed and MVA New transformer capacity installed and commissioned at transmission substations Group 4 000RA commissioned SC Progress against the Eskom legal separation processSC Milestones Completion of the group’s operating model design in the third quarter and submission of NTCSA’s market operator licence to NERSA in Group Yes – 100% achieved the fourth quarter achievement of quarterly targetsRA Drive industrialisation and lead innovation Smart meters installed and commissionedSC Number New smart meters installed and commissioned, and registered on the CC&B (Customer Care and Billing) system Group 610 223RA Local content SC % Procurement of locally manufactured and/or produced goods and services as a percentage of total contracts awarded at Eskom company level Eskom 83.93RA company Digitalisation of the procurement processSC % Measures progress against the multi-year project milestones of digitalising Eskom’s procurement management processes Group 45RA Note 3 Establishment of the Komati copper recycling plantSC % Measures progress against the project milestones of establishing the copper recycling plant at Komati Power Station Group 52.5RA Note 4 Qualitatively transform energy demographics, and elevate the role of women and youth New learner enrolmentSC Number Total number of new learners, including artisans, engineers, technicians, plant operators and sector-specific learners Group 1 293RA Preferential procurementSC % Procurement of goods and services from B-BBEE compliant suppliers. Calculated as a percentage of total measurable procurement spend Group 94.58RA B-BBEE scoreSC Level Eskom’s B-BBEE contributor level measured against the B-BBEE Codes of Good Practice, and certified by an accredited verification agency Eskom Level 3RA company CSI committed spendSC R million Total amount committed or paid towards corporate social investment Group 153.25RA Assert local, continental and global energy leadership Generation capacity recovered SC MW The capacity recovered from units in extended outage that were successfully resynchronised to the grid. Limited to Medupi Unit 4 and Group 868RA Ankerlig Unit 12 in FY2026 New generation capacity added (renewables)SC MW New renewable capacity installed on the Eskom network. Includes both generation and storage capacity Group – RA Note 5 Research and developmentSC % Composite measure, equally weighted based on the percentage spend of NERSA-allocated research and development funding as well as Group 92.51RA the delivery of flagship research projects against the baseline schedule International sales (excluding negotiated pricing agreements)SC GWh Sales volumes to cross-border customers, excluding sales through negotiated pricing agreements Group 5 486 RA 1. The calculation of the debt service cover ratio includes the once-off conversion of a R20.1 billion China Development Bank (CDB) facility from USD to CNY. Excluding the CDB conversion, the debt service cover ratio amounted to 2.29. SC Indicates that a KPI was included in the shareholder compact for FY2026. RA Reasonable assurance provided by the independent assurance provider. Q Qualified by the independent assurance provider. Refer to the independent sustainability assurance report from page 105 for further information. 102 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Sustainability indicators selected for reasonable assurance continued Note 1: SAIDI and SAIFI Note 2: Customer Delight Management has initiated targeted remedial actions, Note 3: Digitalisation of the procurement Distribution implemented a new operational The Customer Delight index (CDI) is a composite including enhancements to survey design and process tracking system during August 2025, resulting in data measure based on a weighted average of 10 sub-KPIs. respondent validation, formalisation of the CDI The FY2024 and FY2025 shareholder compact limitations during the transition from the previous It covers customer surveys from key customers as well calculation methodology and improved capture of measured the blockchain adoption rate, with Eskom system. The old and new systems were run in parallel as selected small power users who have contacted the customer interaction records. These changes have achieving 20% progress by FY2025. The FY2026 for a short period, until it became clear that the Customer Contact Centre, had their cases closed and already been incorporated into the design of the KPI shareholder compact amended the measure to practice was creating safety risks for technical field were then contacted by Eskom to get their feedback. for the new financial year to strengthen auditability track the rate of digitalising Eskom’s procurement employees. Alternative options to report on these It also measures operational performance indicators, and consistency of future reporting. management processes, therefore not limited to KPIs were investigated and presented to internal including responsiveness of customer care channels, A downward adjustment of 0.19 was made to the CDI blockchain technology only. The programme has a governance structures for approval. resolution of customer issues and queries, and value initially reported to the shareholder, to align to cumulative multi-year target, which required 20% execution of distribution planned outages. Eskom’s approved MSD as it relates to the starting completion by FY2024, 40% by FY2025 and 60% by While system constraints were being addressed, FY2026, followed by 70% completion for FY2027 and three-year historical averages based on actual results During the external audit, limitations were identified time of a customer outage. Under the approved MSD, an outage was classified as “not starting on time” if 100% for FY2028. up to 31 March 2025 were used to determine relating to the verifiability of certain CDI inputs. the values reported for SAIDI and SAIFI at These included (i) the absence of unique identifiers a planned customer-affected outage started either The amended KPI was affected by governance and 31 March 2026. As such, the reported result may not for key customer survey responses, which limits the more than five minutes earlier than the notified start definition changes, coupled with delays in finalising be a true representation of the achievement against ability of the external auditors to confirm respondent time or more than 15 minutes later than the notified the revised KPI design and implementation approach. the approved target, which was based on actual authenticity; (ii) the absence of sufficient and start time. The NRS 047 standard was amended Therefore, the relevant processes associated with the values. The shareholder was made aware of this appropriate audit evidence to survey responses for late in FY2026 to define an outage as “not starting amended KPI were not fully operationalised for the practice and, after year end, confirmed in writing their small power users who have contacted the Customer on time” only when it starts more than five minutes reporting period. acceptance of Eskom’s reporting on that basis until the Contact Centre, had their cases closed and were then earlier than the notified start time (i.e. the element data limitations have been resolved. contacted by Eskom for feedback; and (iii) the level of relating to a late start was removed). Eskom had Delays in acquiring a digital procurement solution formalisation of the calculation methodology. initially updated the calculation to align to the new have been experienced for several years, affecting Since April 2026, reporting based on actual values standard covering only the one element, but per the cumulative performance of the KPI. The following resumed and consequently, the figure to be reported Deloitte was unable to obtain sufficient and agreement with Deloitte, the value reported initially key deliverables have been completed based on the at 31 March 2027 will be based entirely on actual appropriate audit evidence for aspects which was reduced to align to the approved MSD which revised implementation approach: values, as indicated in the Eskom’s internal measure collectively contribute 2.04 to the overall index contains both elements. The revised methodology will • Research into the adoption of blockchain and specification document. due to the limitations set out above, and they were be implemented in FY2027 after aligning the MSD to analysis of use-case recommendations for Eskom unable to do so by alternative means. Deloitte was the revised NRS 047 standard. • Establishment of governance and other support Given these limitations, Deloitte was unable to further unable to determine whether any adjustment structures, including change management practices determine whether any adjustment would be would be required to the reported value of 3.77, required to the SAIDI and SAIFI reported value of • Approval of programme funding for a digital resulting from the matters described above along 35.09 and 11.72, resulting from the matters described procurement platform as well as procurement with any other matters that may have arisen on above. They were also unable to do so by alternative scope, strategy and related documentation indices not subjected to further testing due to the means and, as a result, they were unable to provide scope limitations identified and, as a result, they were • Issuance of the request for proposal for a digital reasonable assurance on the value reported for unable to provide reasonable assurance on the value procurement platform to the market, as well SAIDI and SAIFI performance. This does not affect reported for CDI performance. This does not affect as completion of technical evaluations, supplier the overall financial audit opinion but is disclosed in the overall financial audit opinion but is disclosed in due diligence and evaluation of associated the external audit report relating to performance the external audit report relating to performance documentation information. information. • Successful go-live of the first two of three phases of AI-enabled commodity market pricing IR R  efer to the qualified independent sustainability assurance opinion on page 105 for further information AFS R  efer to “Report on the audit of the annual performance report” in the independent auditor’s report in the financial statements 103 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Sustainability indicators selected for reasonable assurance continued The target of 60% for FY2026 was not met, with Eskom achieved 52.5% progress against the overall tender evaluation, approval and contract award as project milestones for the year, amounting to well as onboarding of the implementation partner not achievement of the targets for the first two quarters, having been completed. apart from contract award (contributing 2.5% overall). Progress during the year included completion of Remedial actions have been implemented, including a business case, securing of investment approval finalisation of the KPI definition, alignment with and identification of a technically suitable supplier the broader digital strategy and execution of an through a competitive procurement process. agreed implementation plan. Despite a delayed However, uncertainty regarding the availability of start to the programme, an expedited delivery recoverable copper from Komati resulted in a pause plan is being implemented to acquire a solution and in implementation to avoid premature commercial implementation partner in FY2027, with the aim of commitments. Consequently, construction had not concluding the programme in FY2028, aligned to the commenced by year end, and the business case is shareholder’s expectations. being revised to consider alternate copper sources and feedstock options to strengthen the long-term Note 4: Establishment of the Komati copper viability of the project. recycling plant Progress towards the establishment of a copper Note 5: New generation capacity added recycling plant at Komati Power Station is measured (renewables) based on several project milestones, including Eskom targeted the commissioning of 94.5MW approval of the business case in the first quarter storage capacity by 31 March 2026 at the Skaapvlei (contributing 25%, related to four activities); (80MW), Paleisheuwel (9.5MW) and Graafwater conclusion of the procurement process in the second (5MW) sites under phase 1 of the battery energy quarter (contributing 30%, related to six activities); storage systems (BESS) project. Performance of the construction at 50% complete in the third quarter BESS project was negatively affected by contractor (contributing 30%, related to site establishment); and underperformance and contractual challenges during 100% completion in the fourth quarter (contributing the year, resulting in no new renewable capacity being 15%, related to plant delivery). installed in FY2026. Initial project delays arose due to a ministerial The contractor for these projects failed to complete directive requiring an independent assessment of the work within the deadline due to its internal the suitability of Komati Power Station for alternative challenges, resulting in claims against the contractor combustion technology. Despite this, the project and the cessation of all site activities from December progressed through key development phases during 2025. Despite remedial interventions, recovery efforts the year. Further delays were experienced due to the to date have not been successful. Several strategic late appointment of an owner’s engineer, which was interventions are underway to ensure that work necessary to validate the project scope and confirm resumes. Contingency options are being assessed in recoverable copper volumes. parallel, including contract termination and appointing replacement contractors. 104 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Independent sustainability assurance report by Deloitte & Touche INDEPENDENT ASSURANCE PRACTITIONER’S REASONABLE ASSURANCE REPORT ON SELECTED KEY PERFORMANCE INDICATORS TO THE DIRECTORS OF Key performance indicator and unit of measure Boundary ESKOM HOLDINGS SOC LTD Assessment of whistle-blower reports completed within 30 calendar days of being We have undertaken a reasonable assurance engagement on selected key performance indicators (KPIs), as registered, %1 Group described below, and presented in the integrated report of Eskom Holdings SOC Ltd (Eskom) for the year ended Investigations that commenced within 60 calendar days of the preliminary 31 March 2026. This engagement was conducted by a multidisciplinary team including environmental, safety, assessment report being completed, %1 Group social and assurance specialists with relevant experience in sustainability reporting. Cases where recommendations emanating from forensic investigations have been SUBJECT MATTER fully implemented, %1 Group We have been engaged to provide a reasonable assurance opinion in our report on the following selected KPIs, Attain sovereign and regional energy security marked with RA in the integrated report. The selected KPIs described below have been prepared in accordance with Eskom’s internal reporting guidelines (reporting criteria) and the associated reporting boundary, which are Transmission lines installed, km Group set out on pages 101 to 102. Transmission transformer capacity installed and commissioned, MVA Group Progress against the Eskom legal separation process, milestones achieved1 Group Key performance indicator and unit of measure Boundary Drive industrialisation and lead innovation Achieve universal access, availability, affordability and quality Smart meters installed and commissioned, number1 Group Lost-time injury rate (employees only), rate Group Local content, % Eskom company Energy availability factor (EAF), % Group Digitalisation of the procurement process, %1 Group Planned capability loss factor (PCLF), % Group Establishment of the Komati copper recycling plant, % 1 Group Unplanned capability loss factor (UCLF), % Group Qualitatively transform energy demographics, and elevate the role of women and youth Other capability loss factor (OCLF), % Group New learner enrolment, number Group Particulate emissions, kt Group Preferential procurement, % Group Relative particulate emissions, kg/MWh sent out Group B-BBEE score, level1 Eskom company Carbon dioxide emissions (from fossil fuel generation), Mt CO2 Group CSI committed spend, R million Group Specific water consumption, ℓ/kWh sent out Group Assert local, continental and global energy leadership System minutes lost <1, minutes Group Generation capacity recovered, MW1 Group System average interruption duration index (SAIDI), hours Group New generation capacity added (renewables), MW1 Group System average interruption frequency index (SAIFI), events1 Group Research and development, % 1 Group Total electrification connections, number Group International sales (excluding negotiated pricing agreements), GWh1 Group Off-grid electrification connections, number1 Group 1. We were not required to provide assurance on these KPIs in the prior year. Distribution total energy losses, % Group Payment levels (excluding municipalities and metros), %1 Group Capital payment levels (municipalities), % 1 Group Customer Delight, index1 Group EBITDA, R million Group Cash interest cover ratio Group Debt service cover ratio Group 105 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Independent sustainability assurance report by Deloitte & Touche continued DIRECTORS’ RESPONSIBILITY (Revised), Assurance Engagements Other than Audits Consequently, we were unable to determine whether RESTRICTION OF LIABILITY The directors are responsible for the selection, or Reviews of Historical Financial Information, issued by any adjustment would be required to the SAIDI and Our work has been undertaken to enable us to preparation and presentation of the selected the International Auditing and Assurance Standards SAIFI reported values of 35.09 and 11.72, resulting express a reasonable assurance opinion on the KPIs in accordance with reporting criteria. This Board. This standard requires that we plan and from the matters described above, and we were selected KPIs to the directors of Eskom in accordance responsibility includes the identification of perform our engagement to obtain reasonable unable to substantiate these values by alternative with the terms of our engagement, and for no other stakeholders and stakeholder requirements, material assurance about whether the selected KPIs are free means. purpose. We do not accept or assume liability to any issues, commitments with respect to sustainability from material misstatement. party other than Eskom, for our work, for this report, performance and design, implementation and CUSTOMER DELIGHT or for the conclusion we have reached. maintenance of internal controls relevant to the A reasonable assurance engagement undertaken Included in the Customer Delight KPI reported value preparation of the integrated report that is free from in accordance with ISAE 3000 (Revised) involves of 3.77 are indices with a value of 2.04 relating to REPORT ON OTHER LEGAL AND material misstatement, whether due to fraud or error. performing procedures to obtain evidence about ‘’Key Customer Delight Index”, “Customer Care” REGULATORY REQUIREMENTS The directors are also responsible for determining the the measurement of the selected KPIs and related and customer queries created via customer walk-ins In accordance with our responsibilities in terms of appropriateness of the measurement and reporting disclosures in the integrated report. The nature, at the contact centre hubs related to “First contact sections 44(2) and 44(3) of the Auditing Profession criteria in view of the intended users of the selected timing and extent of procedures selected depend on resolution”, “Work items completed within KPI” and Act, 2005, we report that we have identified a KPIs and for ensuring that those criteria are publicly the auditor’s professional judgement, including the “One contact resolution”. We were unable to obtain reportable irregularity in terms of the Auditing available to users. assessment of the risks of material misstatement of sufficient and appropriate audit evidence for the Profession Act. We have reported this matter to the selected KPIs, whether due to fraud or error. actual value reported and were unable to do so by the Independent Regulatory Board for Auditors. OUR INDEPENDENCE AND QUALITY alternative means. The matter pertaining to the reportable irregularity In making those risk assessments we have considered MANAGEMENT has been described in item 1 of note 53 of Eskom’s internal controls relevant to Eskom’s preparation Consequently, we were unable to determine whether We have complied with the independence and other annual financial statements for the year ended of the selected KPIs. A reasonable assurance any adjustment would be required to the Customer ethical requirements of the Code of Professional Conduct 31 March 2026. engagement also includes: Delight KPI reported value of 3.77, resulting from the for Registered Auditors issued by the Independent Regulatory Board for Auditors (IRBA Code), which • Evaluating the appropriateness of quantification matters described above along with any other matters is founded on fundamental principles of integrity, methods, reporting policies and internal guidelines that may have arisen on indices not subjected to objectivity, professional competence and due care, used and the reasonableness of estimates made further testing due to the scope limitation identified. confidentiality and professional behaviour. The IRBA by Eskom QUALIFIED REASONABLE ASSURANCE Code is consistent with the corresponding sections • Assessing the suitability in the circumstances of Eskom’s use of the applicable reporting criteria as a OPINION Deloitte & Touche of the International Ethics Standards Board for basis for preparing the selected information In our opinion, except for the possible effects of the Registered Auditors Accountants’ International Code of Ethics for Professional matters referred to in the “Basis for qualified opinion” Accountants (including International Independence • Evaluating the overall presentation of the selected Per Jyoti Vallabh paragraph above, the selected KPIs as set out in the Standards). sustainability performance information Chartered Accountant (SA) “Subject matter” paragraph above for the year ended 31 March 2026 are prepared, in all material respects, Registered Auditor Deloitte & Touche applies the International Standard We believe that the evidence we have obtained is Partner on Quality Management 1, which requires the sufficient and appropriate to provide a basis for our in accordance with the reporting criteria. firm to design, implement and operate a system of qualified opinion. 30 August 2026 OTHER MATTERS quality management, including policies or procedures BASIS FOR QUALIFIED OPINION Our report includes the provision of reasonable 5 Magwa Crescent regarding compliance with ethical requirements, assurance on selected KPIs, as indicated in the Waterfall City, Waterfall professional standards and applicable legal and SAIDI AND SAIFI The SAIDI and SAIFI reported values of 35.09 and “Subject matter” paragraph above, on which we Private Bag X6, Gallo Manor, 2052 regulatory requirements. 11.72 do not represent the actual average duration were previously not required to provide assurance. South Africa ASSURANCE PRACTITIONER’S and frequency for the current year as established The maintenance and integrity of Eskom’s website RESPONSIBILITY in the reporting criteria. The values disclosed were is the responsibility of Eskom’s management. Our Our responsibility is to express a reasonable based on historical averages of the prior three years’ procedures did not involve consideration of these assurance opinion on the selected KPIs based on the reported values as adequate processes were not matters and, accordingly, we accept no responsibility procedures we have performed and the evidence established to consistently measure and reliably for any changes to either the information in the we have obtained. We conducted our assurance report on these KPIs in accordance with the reporting integrated report or our independent reasonable engagement in accordance with the International criteria in the current year. assurance report that may have occurred since the Standard on Assurance Engagements (ISAE) 3000 initial date of its presentation on Eskom’s website. 106 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information Corporate information ESKOM HOLDINGS SOC LTD Incorporated in the Republic of South Africa Registration number 2002/015527/30 REGISTERED OFFICE Eskom Megawatt Park 2 Maxwell Drive Sunninghill Sandton 2157 PO Box 1091 Johannesburg 2000 Switchboard +27 11 800 8111 Customer call centre 08600 ESKOM or 08600 37566 DEBT SPONSOR Nedbank Corporate and Investment Banking, a division of Nedbank Limited JSE alpha code BIESKM FOR MORE INFORMATION INVESTOR RELATIONS Lerato Mufuma-Mashinini InvestorRelations@eskom.co.za MEDIA ENQUIRIES Daphne Mokwena MediaDesk@eskom.co.za GROUP CHIEF EXECUTIVE Dan Marokane CEcorrespondence@eskom.co.za GROUP CHIEF FINANCIAL OFFICER Calib Cassim OfficeoftheCFO@eskom.co.za QUERIES OR FEEDBACK ON OUR REPORTS IntegratedReporting@eskom.co.za Our suite of reports covering our integrated results for 2026 is available at https://www.eskom.co.za/investors/integrated-results/ FORWARD-LOOKING STATEMENTS Certain statements in this report regarding Eskom’s business operations may constitute forward-looking statements. These include all statements other than statements of historical fact, including those regarding the financial position, business strategy, management plans and objectives for future operations. Forward-looking statements constitute current expectations based on reasonable assumptions, data or methods that may be imprecise and/or incorrect and that may be incapable of being realised. As such, they are not intended to be a guarantee of future results. Actual results could differ materially from those projected in any forward-looking statements due to various events, risks, uncertainties and other factors. Eskom neither intends nor assumes any obligation to update or revise any forward-looking statements contained in this report, whether as a result of new information, future events or otherwise. Future performance plans and/or strategies referred to in the integrated report have not been reviewed or reported on by the group’s independent auditors. 107 ESKOM HOLDINGS SOC LTD Integrated report 2026 Transforming energy Thoughts from Repositioning Eskom in Leveraging governance Performance Financial Supplementary ABC to create value our leadership a transforming industry for transformation overview overview information www.eskom.co.za ESKOM HOLDINGS SOC LTD Integrated report 2026