Statement from the finance director

Exxaro's tax contribution of more than R7 billion to government and society, and our transparent reporting thereof, contributes to value creation and preservation and the prevention of value erosion. This contribution is manifold, and we believe:

• Our taxes are central to macro-economic stability in the jurisdictions in which we operate (including investment in public infrastructure and services)
• Our contribution to socio-economic development within local communities and society at large through our tax contribution supports the United Nations Sustainable Development Goals

Transparent and comprehensive tax reporting reinforces our purpose and vision to achieve direct and positive impact on society and the environment. To this end, we are guided by GRI 207, which enables Exxaro to appropriately communicate relevant information to all our stakeholders.

Our tax compliance also encourages our peers to do the same, and thereby reduces the costs associated with tax regulation and enforcement. In addition, public reporting on tax not only upholds our reputation, and that of the tax regime, but also informs debate and supports stakeholder-inclusive tax policy development.

As reiterated by a panel of tax experts at the Investing in African Mining Indaba 2023, taxes are among the most significant expenses of a mining company, and the mining sector is often the largest contributor to fiscal revenue (corporate income tax, royalties and dividends as well as indirect, employee and supplier taxes) in many developing countries, including South Africa (where we operate).

Understanding that our tax contributions impact investment decisions and the sustainability of our business in a country competing for investors, we remain committed to the highest ethical standards in our reporting.

 Please read this report in conjunction with the other reports in our 2022 suite for a holistic perspective on our commitment to responsible tax reporting and other business practices.

Riaan Koppeschaar

Finance director
14 April 2023