2026 ANNUAL RESULTS From recovery to structural sustainability Our suite of reports are available at www.eskom.co.za/investors/integrated-results/ 31 August 2026 From recovery to structural sustainability ❖ Chairman’s review Governance, strategy and the reform imperative ❖ Chief Executive’s review Operational stability, growth and the energy transition ❖ Chief Financial Officer’s review Financial stability, liquidity and the path to standalone sustainability ❖ Outlook The next phase: from recovery to structural sustainability Operational and financial recovery has become structural, giving Eskom a stable base from which to drive reform and growth. Success depends on sustaining operational gains while resolving structural constraints 2 Chairman’s review Governance, strategy and the reform imperative A reconstituted Board will continue to lead Eskom’s transition from recovery to sustainable transformation The Board was reconstituted in December 2025 to create a fit-for-purpose Board which combines new skills and institutional memory to steer Eskom’s customer-centric strategy within a highly competitive market 15 Directors on the reconstituted Board 8 New non-executive directors appointed, fit to guide the transformation agenda 5 Non-executive directors retained to ensure continuity 4 Eskom has moved from recovery to transformation; from stabilisation to building a financially sustainable, competitive and future-ready Eskom Operational Financial Market reform & Energy transition Governance & trust reliability sustainability competition Sustained energy Deleveraging and Integrity, A just, orderly shift Enabling a availability and an returning to accountability and to cleaner competitive end to standalone financial stakeholder generation electricity market loadshedding 1 strength 2 3 4 confidence 5 • Sustain energy security and operational reliability • Improve financial sustainability beyond tariff increases while addressing affordability Energy • Address sales decline and resolve municipal arrear debt affordability • Deliver a practical and just energy transition through Eskom Green Balancing financial sustainability and • Advance reform to support a competitive, sustainable electricity market socio-economic obligations Stable liquidity gives Eskom the confidence to plan, invest and execute. Sustaining strong operational cash flows is critical as the debt relief programme comes to an end and we deliver our R343 billion capex programme 5 Reshaping Eskom to respond to the challenges and opportunities presented by a competitive and sustainable electricity market • Unbundling remains central to Eskom’s long-term transformation and is sequenced to support market reform while protecting sustainability • Market reform is reshaping the electricity industry and requires a new business model to ensure relevance • The establishment of an independent Transmission System Operator remains a critical reform that must be executed in a way that does not harm Eskom’s financial sustainability • Phase II of the ERTT will prioritise financial sustainability, municipal debt and Eskom’s obligations to lenders Legal and structural Regulatory and market Market participation 1 2 3 separation approvals and growth NTCSA legally established Approved NERSA Market 100+ IPPs connected to as a separate subsidiary Operator licence secured the grid since 2012, and (2024) 60+ wheeling participants on the transmission grid NTCSA Grid Access Unit Participated in the process Eskom contributes to established to ensure fair leading to the approval of emerging market design grid access Grid Capacity Allocation through the Electricity Rules being gazetted Market Advisory Forum 6 Group Chief Executive’s review Operational stability, growth and the energy transition A year of strong performance has laid the foundation for transformation Profit after tax of EAF 65.16% loadshedding-free 799MWnit 5 365 days by 15 May 2026 R30.3 billion (from R14 billion in FY2025) plant availability improved relative to 60.60% in FY2025 Kusile Unit 6 synchronised 270.8km Distribution network additional HV lines stable 610 223 67 578 and 4 000MVA Transmission smart meters new electrification transformers network reliability installed connections installed improved Emissions 0.18 employee LTIR deteriorated 13.1TWh Eskom Green improved, although 0.98kg/MWhSO lost due to launched on we suffered electricity theft Water use improved 9 June 2026 seven fatalities 1.34l/kWhSO The priority now is to convert improved operational and financial performance into long-term structural sustainability, while modernising the electricity system and preparing Eskom to collaborate, compete and lead in a reformed industry 8 Generation recovery continued gains in prior years through improved reliability and disciplined execution • Plant availability has improved in each of the Energy availability factor, % 65.16 last three years, reducing reliance on 60.60 expensive emergency generation 54.56 • The FY2026 step-up was driven by the return of Medupi Unit 4 and Koeberg Unit 1 together with the commissioning of Kusile Unit 6, strengthening system FY2024 FY2025 FY2026 adequacy and reliability Unplanned unavailability, GWh • Improved availability translated into security 15 600 of supply, with more than 460 consecutive 12 500 days without loadshedding by August 2026 10 900 • The refocused Generation Reliability and Sustainability Plan underpins the trend, shifting the emphasis from short-term recovery to long-term reliability FY2024 FY2025 FY2026 The focus has shifted to sustaining the structural recovery, driving further performance improvements, reducing unplanned outages and progressing towards the medium-term EAF target of 70% 9 Unlocking South Africa’s energy future through grid expansion and market enablement 2021 2024 2026 FY2027 Market opening Functional NTCSA subsidiary Licence and grid Ring-fencing Competitive separation established rules secured complete trading at scale Progress delivered Focus on enabling the market • Market Operator licence secured, with grid • Deliver the Transmission Development Plan capacity allocation rules gazetted to unlock the Cape corridors • NTCSA legally separated in 2024 with a • Mobilise private capital via supplier panels dedicated Grid Access Unit in place and Independent Transmission Projects • 100+ IPPs connected and 60+ wheeling • Maximise existing grid capacity while new participants trading on the network infrastructure is built • 270.8km of high-voltage transmission lines • Broaden participation through wheeling, and 4 000MVA transformer capacity added competition and regional trade in FY2026, with reliability improving • Shape market design with NERSA so that the market opening protects both the industry and Eskom's sustainability NTCSA will continue to advance innovative solutions to maximise available grid capacity, while progressing transmission infrastructure delivery 10 The distribution business connects Eskom to end-users through a modernised distribution network 55 553 71 • Load reduction meaningfully reduced, relieving around 1.2 million customers and achieving 3 9 130 load reduction-free status in seven provinces, with full elimination targeted by March 2027 0 5 • Targeted interventions addressed the root causes – illegal connections, meter tampering, 0 electricity theft, network overloading and non-payment, particularly in high-risk areas At inception • Smart metering and network modernisation advanced, strengthening revenue protection, 0 outage visibility, demand management and reduction of electricity theft, despite challenges 0 355 0 • Customer centricity and service performance improved, supported by stronger customer 0 72 0 engagement, improved responsiveness and customer satisfaction levels ahead of target 0 0 • Distribution is preparing for a more competitive electricity market, developing new trading capabilities and customer-focused products and services August 2026 • Focus is shifting from managing demand constraints to improving network performance, 0 protecting revenue, enabling growth and supporting new opportunities such as customer 0 0 0 wheeling, data centres and distributed energy resources 0 0 0 0 Distribution will continue to improve reliability, protect revenue and advance 0 equitable access to electricity while laying the foundation for NEDCSA March 2027 11 Eskom Green has been established and is anchoring a 32GW renewables and storage ambition to deliver a diversified energy future 17 6GW 32GW high-priority projects across carbon-free electricity renewables and storage the coal footprint targeted by FY2030 ambition by FY2040 From FY2027 9 June 2026 July 2026 FY2031 Advancing 2GW Eskom Green PFMA approvals 3GW of new gas renewables and launched secured capacity storage pipeline Ring-fenced funding Coal sites repowered A reliable, cleaner platform and repurposed system Up to R25 billion a year in Komati, Grootvlei, Camden Renewables at 11.7% of green financing and and Hendrina lead six power supplied in FY2026, sustainability-linked priority sites, targeting with storage and gas issuances from FY2028, around 1 000 new jobs and providing the flexible supported by the EU’s reskilling 15 000 employees capacity that keeps the €4.7 billion green energy by FY2031 system firm package Private and concessional capital through project-financed special purpose vehicles will be key to improving bankability to reduce reliance on Eskom Holdings’ balance sheet and Government support 12 A structured, intelligence-led response is strengthening our fight against criminality and misconduct Prevent 1. Proactive prevention of crime, fraud and Outcomes 2 corruption 1 Detect 2. Faster identification of suspicious activity 505 arrests 3. Effective analysis and confirmation of fraudulent / criminal activity 4. Case resolution, prevention of recurrence 13 convictions Oversight Integrity cycle and recoveries 5 3 5. Improving oversight and monitoring of the 15 employees combined assurance model dismissed from Investigate forensic referrals Correct 4 101 suppliers ❖ Raptor Fusion Centre launched on 6 February 2026 restricted from doing to address high-priority incidents through intelligence- business with Eskom driven investigations and rapid response interventions 710 ❖ Reinstated probity checks and proactive assurance on 299 criminal cases Active forensic cases high-value tenders reported to SAPS Cases from 2018 up to 31 March 2026 (279 referred to the DPCI under PRECCA) Interventions underway to address forensic backlog Referral to Raptor Current panel New forensic panel tender Backlog project tender Permanent recruitment PMO report review Fusion Centre In progress In progress (Q3 FY2027) In progress (Q3 FY2027) In progress (Q3 FY2027) In progress In progress (expires Q3 FY2027) 13 Chief Financial Officer’s review Financial stability, liquidity and the path to standalone sustainability Our audit recovery programme has advanced from its initial recovery phase to embedding control improvements PROGRESS THROUGH THE AUDIT RECOVERY PROGRAMME EARLY SIGNS OF STRENGTHENED CONTROLS Sustainable closure of audit findings FY2026 external audit concluded more timeously Audit qualification has narrowed Limited to the completeness of irregular expenditure disclosure No longer extends to accuracy of irregular expenditure or to losses due to criminal conduct Strengthen the Improve audit readiness internal control and execution of the Value of new irregular expenditure was limited environment external audit Of R4.9 billion incurred, only R28 million related to new matters (the balance from existing multi-year contracts) Addressing backlog of PFMA assessments and determinations • Shifted from administrative closure of findings to addressing root No new reportable irregularities raised, with four historic causes and embedding clearer accountability matters closed – only environmental matters remain open • Strengthened audit evidence and documentation disciplines • Enhanced controls in high-risk areas Control environment requires continued focus • Advanced PFMA remediation and reduced backlog of assessments Assessed as adequately designed but requires stronger first-line and determinations assurance and more effective implementation. Combined • Embedded audit readiness as an ongoing discipline assurance maturity assessment planned for FY2027 15 Financial recovery is translating into resilience – profitability improved, reflecting operational gains, cost discipline and favourable market movements Leading factors contributing to improved profitability GROUP INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH Restated R billion R million 2026 2025 % YoY 0.9 9.3 Revenue 354 724 340 895 4▲ 1.7 4.9 Other income 1 283 3 265 61▼ 13.8 0.3 2.2 21.9 Primary energy (151 896) (150 207) 1▲ 39.4 R1 billion Net employee benefit expenses (48 060) (43 160) 11▲ R14.2 billion fuel levy fuel levy refunds Net impairment loss and write-downs (1 117) (7 616) 85▼ refunds Other operating expenses (46 286) (45 165) 2▲ Profit Revenue Primary Employee Repairs and Net Net fair Other Profit EBITDA 108 648 98 012 11▲ before tax energy benefit maintenance finance value before tax (2025) cost cost losses (2026) Depreciation and amortisation expenses (36 335) (31 764) 14▲ Operating profit (EBIT) 72 313 66 248 9▲ Net fair value and foreign exchange gains (1 126) (10 415) 89▼ Key drivers Revenue: 12.74% tariff increase, partly offset by a 6.2% decline in sales Net finance cost (31 886) (34 072) 6▼ Primary energy: increase distorted by fuel levy refunds in FY2025; Share of profit of equity-accounted investees 100 102 2▼ underlying costs fell R11.5 billion when excluding fuel levy impact; enabled Profit before tax 39 401 21 863 80▲ by more reliable, cheaper generation displacing OCGTs Income tax (9 056) (7 822) 16▲ Net fair value losses: largely non-operational; lower embedded derivative Profit for the year 116▲ 30 345 14 041 losses and gains on foreign debt (stronger Rand, favourable rates) ▲ Income/gain increased ▼ Income/gain declined ▼ Expense/loss declined ▲ Expense/loss increased Employee benefit costs: higher headcount-related and incentive costs The restatement of R2 billion for FY2025 relates to: Finance costs: lower debt and favourable interest rates • R980 million payable to National Revenue Fund for fees related to Government guarantees based on Eskom’s improved financial performance • R1 026 million for provision of public liability claims against Eskom. 16 Our four finance strategy pillars are building a strong foundation for long-term resilience and sustainability OUR FINANCE STRATEGY Enablers: Audit recovery programme | Digital transformation ESG integration | Unbundling readiness | Operating model refresh Talent and culture The path to sustainability is dependent on all four pillars being executed simultaneously, within appropriate timeframes 17 Revenue growth requires demand retention and diversification; tariff increases alone cannot secure Eskom’s future Sales and revenue trend GROWING REVENUE BEYOND TARIFF INCREASES R billion +4.1% TWh For the first time in over a decade, improved generation availability has created an 400 -6.2% 220 estimated 2–3GW surplus capacity, positioning Eskom to attract new demand rather 350 210 than ration it 200 300 250 190 Revenue growth initiatives 180 200 • Retention in a liberalising market: concessionary tariffs for larger industrial smelter 170 150 160 customers and customer wheeling optimisation 100 2022 2023 2024 2025 2026 150 • Structural demand growth: targeting additional load through data centres targeted, Sales Revenue flexible load (including a Bitcoin-mining pilot) and demand-side activation • Developing South Africa’s role as a regional electricity hub to grow export sales Electricity sales by customer category • New products and services: renewable PPAs and EV charging through Eskom Green 44% Declining sectors in FY2026 • Introducing wholesale pricing arrangements and enhanced price signalling Industrial ▼ 9.7TWh | ▼ 22.5% mechanisms International ▼ 1.2TWh | ▼ 8.3% Redistributors ▼ 0.7TWh | ▼ 0.9% 7% Agricultural Targeting sales stabilisation at 178TWh over the next five years, with potential ▼ 0.3TWh | ▼ 5.7% 1% 178TWh Commercial ▼ 0.1TWh | ▼ 0.9% growth opportunities beyond that 3% Industrial decline driven by 5% 19% ferrochrome smelter hardship Even where customers self-generate or buy elsewhere, Eskom will 6% 15% retain revenue through network charges, customer wheeling and Redistributors Commercial Agricultural International revised tariff structures which separate energy charges from the Mining Residential Rail recovery of fixed costs 18 Cost discipline has become a strategic capability, embedded in how Eskom plans and operates COST OPTIMISATION AND REVENUE ENHANCEMENT (CORE) CORE contribution • Cost discipline is being institutionalised as a permanent way of R billion operating – targets embedded in divisional performance +37% 22.4 R38.7 billion commitments from Exco to operational teams cumulative CORE contribution 16.3 over the last two years • Cumulative CORE target of R112 billion by FY2030, supporting a sustainable EBITDA margin of around 30% over the next five years R21 billion stretch target for • R5 billion base operating cost reductions built into the budget from FFY2026 exceeded FY2027. Additional targets are being assessed to maintain a sustainable pipeline of CORE initiatives to FY2030 FY2025 FY2026 FY2030 • Focusing on sustainable, repeatable gains rather than once-off R112 billion ambition benefits (FY2026 – FY2030) R22.4 billion = R14.5 billion cost savings + R7.9 billion revenue uplift • Future focus: primary energy, procurement and supply chain, capital supporting EBITDA and operating cash flows, both directly and indirectly productivity, digital transformation and revenue growth Key drivers • Reduced production costs through efficiencies in power generation, including savings on fuel oil, coal, and water consumption • OCGT utilisation more than halved: combined Eskom + IPP OCGT spend reduced by R10.6 billion (approximately 60% reduction) • Increased revenue from international electricity sales versus baseline • Reduced energy losses within the Distribution business, resulting in improved revenue recovery and operational efficiency • Dispatching to the merit order – cheapest available stations first – as improved base-load availability displaced expensive peaking plant 19 Investing in the skills behind our recovery, while rewarding performance and containing future cost growth Movement in gross employee benefit costs MANAGING COSTS REWARDING PERFORMANCE R billion +11% • New recruitment limited to approved • Incentive schemes are self-funded – paid 0.1 0.6 0.4 0.2 0.7 business cases; capacity, role based on performance against targets – 45.4 3.2 duplication, resource deployment and including profitability and positive cash 50.4 employee productivity under review generation • "Build–Buy–Borrow–Bot" – balancing • Production bonuses are a temporary 2025 Salaries Bonus Production Overtime Pension Other 2026 scheme bonus and fringe staff costs internal development, targeted hiring, measure to recover performance benefits flexible contracting and AI/automation • Employee costs rose R5 billion, but this Headcount Total training spend to contain future manpower growth investment restored plant performance and 43 274 R2.2 billion (2025: 42 030) (2025: R1.5 billion) • Overtime – tighter monitoring of unlocked R10.6 billion in OCGT savings work scheduling and key drivers (theft, • Remuneration is anchored to the market Employee bonus obligation Production bonuses vandalism and unplanned losses) to (including pension) median, balancing affordability with R1.6 billion protect critical infrastructure R5.1 billion retention of scarce skills (2025: R1.2 billion) (2025: R4.2 billion) • Group-wide skills audit in progress to • Review of total reward framework is identify future capability requirements underway to keep pay market-informed, Key drivers and critical skills gaps sustainable and equitable and aligned to • 7% remuneration adjustments – last year of three-year collective bargaining agreement performance, productivity and affordability • 3% headcount growth to rebuild critical skills for the future to sustain operational gains Three-year wage agreement covering FY2027 to FY2029 • Higher short-term and production bonuses due to concluded in April 2026 promotes cost predictability and improved results supports operational and labour stability 20 Municipal debt remains the single largest threat to financial sustainability Could escalate to Arrear municipal and metro debt growth > R300bn by • Arrear debt was below our FY2026 financial plan, supported by R billion FY2031 if unabated payment arrangements with key metros and improved municipal 360 capital payment levels of 89.74% (2025: 88.88%) 340 • National Treasury’s municipal debt relief programme has had Municipal debt relief +18% implemented after limited success in stemming the escalating levels of arrear debt 120 FY2023 +27% (cumulative R4.2 billion write-offs processed by 31 March 2026) 100 +27% • In response, Eskom and Government are pursuing several 358.0 80 +31% solutions, including distribution agency agreements (DAAs), prepaid 111.6 60 supply models, PAJA enforcement and withholding payment of 94.6 40 defaulting municipalities’ quarterly equitable share (July 2026 74.4 58.5 44.8 equitable share temporarily withheld from 69 municipalities) 35.3 20 28.0 19.9 13.6 9.4 6.0 5.0 0 • DAAs will support municipalities in ensuring sustainable local 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2031 Financial service delivery while contributing to Eskom’s financial plan sustainability through improved billing and revenue collection The ERTT Phase I report which was endorsed by • Three DAAs have been concluded, with several others in progress. President Ramaphosa emphasised the criticality of resolving Learnings are being used to improve future DAAs municipal debt to ensure the distribution industry’s future • Municipal arrear debt is a structural challenge which will nullify financial sustainability and to support Eskom’s unbundling Government’s debt relief support if not resolved – resolution requires a coordinated national response, not from Eskom alone 21 A materially stronger balance sheet and improved solvency is charting a clear path to a sustainable capital structure Debt securities and borrowings Targeting gross debt GROUP STATEMENT OF FINANCIAL POSITION AT 31 MARCH R billion