www.eskom.co.za INTEGRATED REPORT 31 March 2021

1 BACK TO MENUINTEGRATED REPORT 31 March 2021 INTEGRATED REPORT A NEW ENERGY FUTUREiv | INTEGRATED REPORT | 31 March 2021 BACK TO MENUCOVID-19 lockdown badly affected sales performance, with a reduction of , or less affected, as Eskom is an essential service4 493 COVID-19 infections by 31 March 2021, with 4 219 recoveries and 110 deathsCOVID -19 New functions set up to support business separation and transitioned energy futureGenerating plant availability deteriorated to (2020: ), due to higher planned maintenance under the Generation recovery planPlanned maintenance increased to (2020: ), while unplanned maintenance decreased to (2020: )Loadshedding implemented on 47 days during the yearLost-time injury rate improved significantly to loss after tax of billionGovernment support of R56 billion receivedMunicipal debt escalated by billion to billionGross debt burden reduced by billion to billion74 voluntary separation packages granted in round 2 Support staff relinked to line divisions as part of functional separationNon-critical staff continue to work from home successfullyHeadcount reduced by 2 023 during the year.

2 To 42 749 at 31 March 2021 Two new build units commissioned at KusileTransmission and distribution networks delivered improved and sustained performanceImprovement in particulate emissions performance, but emissions challenges at Kendal not yet resolvedBusiness separation gaining momentum, with functional separation completed in June 2021 BUSINESS SEPARATIONO PE R ATI O N SPEOPLEFINANCELOOKING AHEADG overnment support of billion received in 2022 Ongoing impact of COVID-19 regulations on sales and staffBudgeted net loss after tax of billionTransmission entity to be separated by 31 December 2021 Tariff increase of granted for 2022 financial yearFinal Medupi unit commissioned on 31 July 2021 THE YEAR IN REVIEWTHE YEAR IN REVIEWABOUT THIS REPORTIFCIMPACT OF COVID-192 WHO WE ARE AND HOW WE CREATE VALUE3 Value creation model4 Understanding our business6 Composition of our top leadership10 GOVERNANCE.

3 LEADERSHIP AND ETHICS14 Chairman's statement15 Progress on governance clean-up17 Our governance framework22 King IVTM application23 Feedback on Board activities25 Exco and divisional boards36 OUR STRATEGIC CONTEXT37 Chief Executive's review38 Our strategy and turnaround plan43 Stakeholder engagement49 Material matters51 Risks and opportunities52 FINANCIAL REVIEW58 Chief Financial Officer's report59 condensed annual financial statements62 Our finances65 OPERATING PERFORMANCE78 Chief Operating Officer's commentary79 Our infrastructure81 Our interaction with the environment95 Our people106 Our role in communities114 SUPPLEMENTARY INFORMATION119 Abbreviations and glossary of terms120 Leadership information123 Environmental implications of using electricity127 Statistical tables: technical and non-technical128 Plant and customer information136 Independent sustainability assurance report139 Contact details143 CONTENTSThe following navigation icons are used to depict the six capitals (refer to pages 7 to 8 for definitions):Performance indicatorsThroughout this INTEGRATED REPORT , performance against target is indicated as follows.

4 Actual performance met or exceeded target Actual performance almost met target (within a 5% threshold) Actual performance did not meet targetSC Indicates that a key performance indicator is included in the shareholder compactNavigation iconsOur finances (financial capital)Our infrastructure (manufactured capital)Our interaction with the environment (natural capital)Our people (human capital)Our role in communities (social and relationship capital)Our know-how (intellectual capital)A list of abbreviations and glossary of terms is available on pages 120 to 122 Additional information contained in the INTEGRATED reportSupplementary information provided as a fact sheetInformation available onlineInformation block or case studyFurther contentInformation related to COVID-19We are a proud supporter member of the following bodiesTo complete a short survey on our INTEGRATED REPORT , please click hereGovernance, leadership and ethicsOur strategic contextFinancial reviewOperating performanceSupplementary informationESKOM HOLDINGS SOC LTD | 1 Who we are and how we create valueBACK TO MENUB oard responsibility and approvalThe Board.

5 Assisted by the Audit and Risk Committee and the Social, Ethics and Sustainability Committee, is accountable for the integrity and completeness of the INTEGRATED REPORT and any supplementary information. The Board has considered the preparation and presentation of the INTEGRATED REPORT and concluded that it is presented in accordance with the International <IR> Framework. Reflecting on the reliability of information presented and the completeness of material items discussed, and considering the combined assurance process followed, the Board approved the 2021 INTEGRATED REPORT and supplementary information on 23 August 2021. Prof. Malegapuru Makgoba Dr Pulane Molokwane Dr Banothile MakhubelaInterim Chairman Chairman: Audit and Chairman: Social, Ethics and Risk Committee Sustainability CommitteeOur mandate as South Africa's national electricity utility is to supply stable electricity in an efficient manner, to contribute to lowering the cost of doing business and enable economic growth.

6 We recognise that we have a significant impact on the economy and the lives of South Africans. We serve a diverse range of stakeholders, such as our shareholder, customers, investors, employees, suppliers, civil society, regulators and aim to provide a transparent and balanced account of how we create, preserve or erode value. Our value creation model depicts how the generation, transmission, distribution and sale of electricity create, preserve or erode value by transforming inputs from each of the capitals into electricity supplied to customers, as well as considering the impact of our business on the six value creation model is set out on pages 4 and 5 Approach to presentationOur INTEGRATED REPORT is based on the guiding principles and content elements contained in the International <IR> Framework, published by the International INTEGRATED Reporting Council (IIRC).

7 Furthermore, we have started addressing the recommendations of the revised International <IR> Framework issued by the IIRC in January 2021, even though these disclosures are only required for reporting periods commencing from January content is further guided by legal and regulatory requirements, such as the Companies Act, 2008 and the King IV REPORT on Corporate Governance for South Africa, 2016, as well as global best practice, including recommendations by the Task Force on Climate-related Financial Disclosures (TCFD).This INTEGRATED REPORT reviews our financial, operational, environmental, social and governance performance for the financial year from 1 April 2020 to 31 March 2021, as well as the outlook for the future.

8 Unless otherwise stated, all performance data in this REPORT , both financial and non-financial, relates to the 2021 financial year. Significant events up to the date of approval have been is our primary REPORT to stakeholders, and is aimed predominantly at providers of financial capital. Nevertheless, the REPORT seeks to provide information The REPORT is produced by a dedicated team from the Group Finance Division, who work closely with representatives of all areas of the business to obtain the information presented in the REPORT . The content of the REPORT relies heavily on the information reported to the Department of Public Enterprises in Eskom's quarterly REPORT to the shareholder, as well as our strategic Corporate Plan, both of which are approved by the information is presented in South African Rand, our functional and presentation currency.

9 Figures are taken from Eskom's group annual financial statements, which are prepared in accordance with International Financial Reporting Standards (IFRS). Non-financial data is reported regularly to Exco and Board, and included in the quarterly shareholder REPORT content is guided by the material matters determined as part of our preparation process. All content is reviewed by subject matter experts from the business, as well as Exco, the Audit and Risk Committee and the Social, Ethics and Sustainability Committee, as well as the Board, which assumes ultimate accountability for the content, completeness and reliability of the approach to improve credibilityThe Audit and Risk Committee and the Board depend on combined assurance to assess the adequacy of internal controls and risk management Assurance and Forensic Department (A&F) provided reasonable assurance on certain quantitative information, and to a lesser degree, some qualitative aspects of the REPORT .

10 The group's external auditors provided external assurance on the sustainability key performance indicators (KPIs) contained in the shareholder compact; all but three of the KPIs scoped in for reasonable assurance received an unqualified independent sustainability assurance repor t is included from page 139 The consolidated annual financial statements have been audited by the group's independent auditors, SNG Grant Thornton Inc, who issued a qualified opinion relating to the completeness of irregular expenditure disclosed in terms of the Public Finance Management Act, 1999 (PFMA). Except for this qualification, the consolidated annual financial statements are fairly presented in terms of IFRS.