ESKOM HOLDINGS SOC LIMITED - Release of profit estimate

Release of profit estimate

Eskom Holdings SOC Limited
(Registration No. 2002/015527/06)
JSE alpha code: BIESKM
(“Eskom” or “the group”)

RELEASE OF PROFIT ESTIMATE

Further to the release of Eskom’s annual financial statements for the year ended 31 March 2020 on 30
October 2020 (“2020 financial results”), debt holders are advised that the presentation by Eskom of its
2020 financial results included various estimates of key measures for the 2021 and 2023 financial years.
Details of such estimates are as follows:

Financial outlook                                  Actual                  Budget                 Budget
                                            31 March 2020           31 March 2021          31 March 2023
Revenue (Rm)                                      199 468                 201 536                268 708
EBITDA (Rm)                                        36 998                  23 522                 73 380
Operating profit (EBIT) (Rm)                        9 219                  (5 322)                40 933
Net (loss)/profit after tax (Rm)                  (20 502)                (26 205)                 2 514
EBITDA margin (%)                                   18.55                   11.67                  27.31
Cash interest cover ratio                            0.94                    0.31                   2.54
Debt service cover ratio                             0.52                    0.11                   1.11

In addition, the following additional commentary was presented:

1.    the financial results for the year ended 31 March 2021 are expected to be worse that the 2020
      financial results, primarily due to the anticipated impact of Covid-19 on operations, particularly on
      sales;
2.    cash from operations remains insufficient to service debt without Government support;
3.    Government support of R56 billion is required and has been committed for 2021 to manage liquidity
      and debt servicing requirements;
4.    most ratios maintain a negative trend into 2021, however a return to profitability from 2023 is
      expected; and
5.    the corporate plan assumes a cost-reflective tariff path.

The information contained in this announcement has not been reviewed or reported on by Eskom’s
auditors.

Johannesburg
4 November 2020

Debt Sponsor
Nedbank Corporate and Investment Banking

Date: 04-11-2020 04:36:00
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