ECIC IR 2023

Integrated Report 2023

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Remuneration Report The Remuneration Report for the year ended 31 March 2023 is structured in accordance with the requirements of King IV and is divided into the following three sections: • Section 1 – A background statement regarding committee considerations and decisions for the financial year • Section 2 – An overview of the Corporation’s remuneration philosophy and policy applicable to the coming year. • Section 3 – The implementation report which deals with how we have implemented the remuneration policy during the past year. Part 1: Background Statement The global, regional and domestic environments remained very uncertain through the 2023 Financial Year. The financial year ending March 2023 continued to be a challenging year for the Corporation resulting in the Corporation not achieving some of its targets. The South African economy faced not only this difficult external environment, but also the weakening impact of heightened electricity loadshedding. These headwinds to economic growth complicated the Corporation’s efforts to facilitate and encourage the export of South African goods and services. In discharging its responsibilities set out in the Committee’s terms of reference, the following were key focus areas for the year under review: • Led the process for the appointment of the Chief Executive Officer. • Considered the Chief Executive and Divisional Executives performance contracts as a function of setting their remuneration. • Reviewed the Corporation’s human capital and remuneration policies and practices to ensure that they remain fit for purpose and are aligned with strategic objectives. The Committee concluded that the Performance Linked Short Term Incentive Policy is to be reviewed in the 2024 Financial Year.

• Considered and recommended adjusted salary increases for approval by the Board. • Considered the performance of the Corporation, recognised, and rewarded eligible employees with adjusted short-term incentives. • Reviewed and approved the Corporation’s Succession Planning. • Considered and recommended the Remuneration Report for approval by the Board. • Reviewed and approved the Corporation’s Balanced Scorecard for the 2024 Financial Year. • Considered progress made on the implementation of the Employment Equity Plan. The Corporation continued to operate in a volatile, uncertain and complex environment during the review period. This resulted in the Corporation not achieving all its targets. During the 2023 Financial Year, the Corporation had sixteen targets to be achieved in terms of the Corporate Scorecard. The Corporation achieved eleven of the sixteen targets resulting in a weighted corporate performance score of 3.27 out of 5.00 compared to a score of 3.37 over the period that ended 31 March 2022. The extent to which we achieve the set targets has a direct impact on the short-term incentives payable to employees. Remuneration Governance The Human Resources and Remuneration Committee assists the Board in ensuring that the Corporation remunerates fairly, responsibly, and transparently. Furthermore, it oversees the implementation of the remuneration policy and makes recommendations to the Board regarding the remuneration for Non-executive Directors for approval by shareholder. The Human Resources and Remuneration Committee is chaired by an Independent Non Executive Director and comprises of five Non Executive Directors. The CEO and other members of Exco attend meetings by invitation, but do not vote and are not present when their remuneration Business performance and the impact on remuneration

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