6.1.1 DIVIDEND DISTRIBUTION

Dividends are recognised in the period in which the dividends are declared. These dividends are recorded and disclosed as dividends paid in the statement of changes in equity. Dividends proposed or declared subsequent to the year end are not recognised at the financial year end, but are disclosed in the notes to the annual financial statements as an event after reporting period.

All unclaimed dividends are held in a trust until claimed by the relevant shareholder or the relevant shareholder’s claim to such dividends prescribes. 75% of the unclaimed dividends which have prescribed are allocated to be utilised by the Exxaro Chairman’s Fund, while 25% of the unclaimed dividends are retained in the company to allow funding for any future dividend claims which the company might want to settle despite the prescription period having lapsed.

Exxaro did not issue any ordinary shares during 2018. Exxaro repurchased and issued ordinary shares during 2017, refer note 12.2.

Total dividends paid in 2017 amounted to R2 227 million, made up of a final dividend of R1 284 million which related to the year ended 31 December 2016, paid in April 2017, as well as an interim dividend of R943 million, paid in September 2017.

A special dividend of 1 255 cents per share (R3 149 million to external shareholders) was paid in March 2018, following the partial disposal of the shareholding in Tronox Limited. A final dividend relating to the 2017 financial year of 400 cents per share (R1 004 million to external shareholders) was paid in April 2018. An interim dividend of 530 cents per share (R1 330 million to external shareholders) was paid in September 2018.

A final cash dividend, number 32, for 2018 of 555 cents per share, was approved by the board of directors on 12 March 2019. The dividend is payable on 13 May 2019 to shareholders who will be on the register on 10 May 2019. This final dividend, amounting to approximately R1 393 million (to external shareholders), has not been recognised as a liability in 2018. It will be recognised in shareholders’ equity in the year ending 31 December 2019.

The final dividend declared will be subject to a dividend withholding tax of 20% for all shareholders who are not exempt from or do not qualify for a reduced rate of dividend withholding tax. The net local dividend payable to shareholders, subject to dividend withholding tax at a rate of 20% amounts to 444 cents per share. The number of ordinary shares in issue at the date of this declaration is 358 706 754. Exxaro company’s tax reference number is 9218/098/14/4.

THE SALIENT DATES RELATING TO THE PAYMENT OF THE DIVIDEND:

No share certificate may be dematerialised or re-materialised between Tuesday, 7 May 2019 and Friday, 10 May 2019, both days inclusive. Dividends for certificated shareholders will be transferred electronically to their bank accounts on payment date. Shareholders who hold dematerialised shares will have their accounts at their central securities depository participant or broker credited on Monday, 13 May 2019.

The group dividend paid is different from the company dividend paid due to the dividends on treasury shares, which are eliminated on consolidation.