Exxaro Resources Limited – Group and company annual financial statements 2021 | 4.1.3 Group financial statement of changes in equity

CHAPTERS 1 TO 3

CHAPTERS 1 TO 3

CHAPTER 1

The year in brief

CHAPTER 2

Responsibility statement on internal financial controls Certificate by the group company secretary Report of the directors Audit committee report Independent auditor's report

CHAPTER 3

Accounting policy relating to segmental reporting Significant judgements and assumptions made by management in applying the related accounting policy Reportable segments Geographic location of segment assets

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.
CHAPTERS 4 TO 5

CHAPTERS 4 TO 5

CHAPTER 4

Statement of comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Company statement of comprehensive income Company statement of financial position Company statement of changes in equity Company statement of cash flows

CHAPTER 5

Accounting policy relating to earnings Attributable earnings per share Reconciliation of headline earnings Headline earnings per share Dividend distributions Notes to the statements of cash flows relating to earnings

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.
CHAPTERS 6 TO 7

CHAPTERS 6 TO 7

CHAPTER 6

Operational performance Working capital Notes to the statements of cash flows relating to operational performance and working capital

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.

CHAPTER 7

Accounting policies relating to taxation Significant judgements and assumptions made by management in applying the related accounting policies Income tax (expense)/benefit Reconciliation of tax rates Deferred tax Notes to the statements of cash flows relating to taxation Tax effect of other comprehensive income
CHAPTERS 8 TO 9

CHAPTERS 8 TO 9

CHAPTER 8

Accounting policies relating to business environment and portfolio changes Significant judgements and assumptions made by management in applying the related accounting policies Divestment of non-core assets Impairment charges of non-current assets Non-current assets and liabilities held-for-sale

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

CHAPTER 9

Accounting policies relating to investments in associates and joint arrangements Significant judgements and assumptions made by management in applying the related accounting policies Income from investments in associates and joint ventures Investments in associates and joint arrangements Movement analysis of investments in associates and joint ventures Summarised financial information of associates and joint ventures Reconciliation of carrying amounts of investments in associates and joint ventures
CHAPTERS 10 TO 13

CHAPTERS 10 TO 13

CHAPTER 10

Property, plant and equipment Intangible assets Financial assets Other assets

CHAPTER 11

Accounting policies relating to leases Judgements and assumptions made by management in applying the related accounting policies Right-of-use assets Lease liabilities

CHAPTER 12

Debt Equity

CHAPTER 13

Accounting policies relating to provisions and contingencies Significant judgements and assumptions made by management in applying the related accounting policies Provisions Contingent liabilities and contingent assets
CHAPTERS 14 TO 16

CHAPTERS 14 TO 16

CHAPTER 14

Accounting policies relating to employee benefits Significant judgements and assumptions made by management in applying the related accounting policies Employee benefits Retirement employee obligations Directors' and prescribed officers' remuneration

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.

CHAPTER 15

Related-party transactions

CHAPTER 16

Accounting policies relating to financial instruments Judgements and assumptions made by management in applying the related accounting policies Financial instruments
CHAPTERS 16 TO 17

CHAPTERS 16 TO 17

CHAPTER 16

Accounting policies relating to financial instruments Judgements and assumptions made by management in applying the related accounting policies Financial instruments

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.

CHAPTER 17

Accounting policies relating to subsidiaries Significant judgements and assumptions made by management in applying the related accounting policies Transactions with subsidiaries Summary of investments in subsidiaries Summary of indebtedness by/(to) subsidiaries Detailed analysis of investments in subsidiaries and indebtedness by/(to) subsidiaries Non-controlling interests
CHAPTERS 18 TO 20

CHAPTERS 18 TO 20

CHAPTER 18

Basis of preparation Adoption of new, amended and revised standards and interpretations Events after the reporting period

CHAPTER 19

Re-presentation of group comparative information Restatement of company comparative information

CHAPTER 20

Annexure 1: Shareholder analysis Annexure 2: Definitions Annexure 3: Administration Annexure 4: Shareholders' diary

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.
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CHAPTER 4:
Financial statements

4.1GROUP FINANCIAL STATEMENTS

4.1.3Statement of changes in equity

					Other components of equity
		Note	Share capital Rm	Foreign currency translation Rm	Financial instruments revaluation Rm	Equity-settled Rm	Retirement employee obligations Rm	Financial asset FVOCI revaluation Rm	Other Rm	Retained earnings Rm
At 31 December 2019			1 021	1 906	(35)	883	(39)	4	4	31 032
Total comprehensive (loss)/income				(37)	(220)	68	18	(9)		7 283
– Profit for the year										7 283
– Other comprehensive (loss)/income for the year		7.7		(37)	(220)	68	18	(9)
Transactions with owners						(48)				(3 050)
Contributions and distributions						10				(3 034)
– Dividends paid		5.6								(3 034)
– Distributions to NCI share option holders
– Share-based payments movement						10
Changes in ownership interest						(58)				(16)
– Deemed disposal of JV¹						(58)				58
– Acquisition of subsidiaries²
– Recognition of NCI³		17.7								(74)


At 31 December 2020			1 021	1 869	(255)	903	(21)	(5)	4	35 265
Total comprehensive (loss)/income				(882)	138		1	30		12 667
– Profit for the year										12 667
– Other comprehensive (loss)/income for the year		7.7		(882)	138		1	30
Transactions with owners			(38)			(307)	55	30		(10 925)
Contributions and distributions			(38)			(122)		20		(11 045)
– Dividends paid		5.6								(9 557)
– Distributions to NCI share option holders
– Share-based payments movement						(122)
– Shares repurchased and cancelled⁴			(38)							(1 462)
– Share repurchase expenses										(6)
– Transfer of fair value adjustments on disposal of equity								20		(20)
	investment at FVOCI to retained earnings							20		(20)
Changes in ownership interest						(185)	55	10		120
– Disposal of associates⁵						(185)	55			130
– Disposal of subsidiaries⁶		8.3						10		(10)


At 31 December 2021			983	987	(117)	596	35	55	4	37 007

	Note	Attributable to owners of the parent Rm	Non- controlling interests Rm	Total equity Rm
At 31 December 2019		34 776	8 111	42 887
Total comprehensive (loss)/income		7 103	1 872	8 975
– Profit for the year		7 283	1 943	9 226
– Other comprehensive (loss)/income for the year	7.7	(180)	(71)	(251)
Transactions with owners		(3 098)	(643)	(3 741)
Contributions and distributions		(3 024)	(979)	(4 003)
– Dividends paid	5.6	(3 034)	(978)	(4 012)
– Distributions to NCI share option holders			(1)	(1)
– Share-based payments movement		10		10
Changes in ownership interest		(74)	336	262
– Deemed disposal of JV¹
– Acquisition of subsidiaries²			147	147
– Recognition of NCI³	17.7	(74)	189	115


At 31 December 2020		38 781	9 340	48 121
Total comprehensive (loss)/income		11 954	3 506	15 460
– Profit for the year		12 667	3 706	16 373
– Other comprehensive (loss)/income for the year	7.7	(713)	(200)	(913)
Transactions with owners		(11 185)	(2 298)	(13 483)
Contributions and distributions		(11 185)	(3 131)	(14 316)
– Dividends paid	5.6	(9 557)	(3 124)	(12 681)
– Distributions to NCI share option holders			(7)	(7)
– Share-based payments movement		(122)		(122)
– Shares repurchased and cancelled⁴		(1 500)		(1 500)
– Share repurchase expenses		(6)		(6)
– Transfer of fair value adjustments on disposal of equity investment at FVOCI to retained earnings
Changes in ownership interest			833	833
– Disposal of associates⁵
– Disposal of subsidiaries⁶	8.3		833	833


At 31 December 2021		39 550	10 548	50 098

¹	2020: Relates to a reclassification within equity arising from the Cennergi business combination which required the pre-existing interest in the equity-accounted investment to be derecognised as a deemed disposal.
²	2020: Relates to the recognition of the NCI share option holders within the Cennergi group arising from the Cennergi business combination at acquisition.
³	2020: Relates to the recognition of the NCI's share of Tsitsikamma SPV's net asset value, amounting to R189 million, upon the exercise of its in-substance share option, amounting to R115 million (cash received).
⁴	2021: Relates to the repurchase and cancellation of 9 401 662 ordinary shares to the value of R1.5 billion in terms of the share repurchase programme announced and implemented during the year.
⁵	2021: Relates to the net reclassifications within equity from the retirement employee obligations reserve and equity-settled reserve to retained earnings upon the divestment from Tronox SA and Tronox Holdings plc.
⁶	2021: Relates to the net reclassifications within equity from the financial asset FVOCI revaluation reserve to retained earnings as well as the derecognition of the NCI previously recognised for Dorstfontein upon the disposal of the ECC operation.

Foreign currency translation

Arises from the translation of financial statements of foreign operations within the group.

Financial instruments revaluation

Comprises the share of equity-accounted investments' hedging reserves and the group's cash flow hedge reserve.

Equity-settled

Represents the fair value, net of tax, of services received from employees and settled by equity instruments granted.

Retirement employee obligations

Comprises remeasurements, net of tax, on the retirement employee obligations.

Financial asset FVOCI revaluation

Comprises the fair value adjustments, net of tax, on the financial assets classified at FVOCI.

CHAPTER 4: Financial statements