TRANSNET SOC LIMITED - TRANSNET RELEASES AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2026 WITH AN UNMODIFIED AUDIT OPINION

TRANSNET RELEASES AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2026 WITH AN UNMODIFIED AUDIT OPINION 

Transnet SOC Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1990/000900/30)
Issuer Bond Code: BITRA
(Transnet, the Company or the Issuer)

TRANSNET RELEASES AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE
FINANCIAL YEAR ENDED 31 MARCH 2026 WITH AN UNMODIFIED AUDIT OPINION

Noteholders are advised that the Company’s unmodified audited annual financial statements
for the year ended 31 March 2026 have been published and are available on Transnet’s
website: https://www.transnet.net/AnnualResults

The annual financial statements are available for inspection at the registered office of
Transnet, 96 Rissik Street, Braamfontein, Johannesburg from 09:00 to 16:00 on business
days.

Salient features of the financial performance compared to the prior financial year are as
follows:

   •   Revenue increased by 7,1% to R88,6 billion;

   •   EBITDA (Earnings before interest, taxation, depreciation and amortisation) increased
       by 0,7% to R30,9 billion;

   •   Profit for the year is R4,6 billion, which is >100% improvement from prior year.

   •   Cash generated from operations after working capital changes decreased by 12,4%
       to R25,06 billion;

   •   Capital investment decreased by 2,9% to R23,3 billion for the year;

   •   Rolling cash interest cover (including working capital changes) is 1,5 times and

   •   Gearing at 49,5%, is within debt covenant requirements of <50%.

Performance overview

The Company experienced significant improvement in operating environment, particularly in
the rail and pipeline Business owing to the implementation of the recovery plan.
Transnet’s revenue performance for the year ended 31 March 2026 improved by 7,1%
when compared to the prior year driven by weighted average tariff increases and volume
increases.

This was achieved despite various challenges that continue to impact the rail business which
include historic under-investment, theft and vandalism, declining reliability of legacy fleet
resulting in lower volumes railed.

The entity recorded an EBITDA of R30,9 billion for the year, which was 0,74% higher than
the prior year.

During the reporting period, as part of the implementation of Transnet’s private sector
participation strategy, Transnet established the DGT a 100% owned subsidiary of the
Group which resulted in Transnet Port Terminal’s DCT Pier 2 net assets (carrying value of R3,3
billion) transferring into DGT. Transnet then disposed of a 49,999% interest in DGT to
International Container Terminal Services Inc. (ICTSI) for R10,5 billion with an effective date
of disposal of 1 January 2026.

The profit on disposal of the interest in DGT (including the related fair value adjustment) of
R12,5 billion was recognised in the current reporting period. This disposal also resulted in
Transnet transferring management control of DGT to ICTSI and DGT therefore being
recognised as an associate of the Group with Transnet retaining a 50,001% shareholding in
DGT.

The Group did report a R4,6 billion net profit for the year. The improvement in the profit
position is mainly due to the sale of pier 2 terminal in the current year and improvement in
rail and pipeline volumes.

Audit opinion

The Auditor-General of South Africa, the Company’s independent statutory external auditor,
has expressed an unmodified audit opinion on the annual financial statements for the year
ended 31 March 2026.

Emphasis of matter

Material uncertainty related to going concern

Without modifying their opinion, external auditors have included an emphasis of matter
pertaining to a material uncertainty related to going concern, as detailed in the going concern
assessment on the 31 March 2026 Annual Financial Statements.

The Board strongly believes that the associated risks will be satisfactory addressed with the
mitigation strategies in place and continues to manage these strategies as a priority to ensure
that they materialise as envisaged.

The Board further concluded, after carefully considering the progress of the recovery plan and
the financial support from the Government through the provision of R196bn guarantee
support, that there is an expectation that the Group will continue to have access to adequate
resources and facilities to be able to continue its operations as well as fund the capital
investment programme for the foreseeable future, as a going concern.
Operational outlook

Transnet has fully transitioned into the execution of its Reinvent for Growth (R4G) Strategy.
While continuing to build on the progress achieved through the Tactical Recovery Plan, the
R4G Strategy is designed to transform and grow the business as Transnet repositions itself
for long-term sustainability in an increasingly competitive and evolving logistics market.
Central to this strategy is the commitment to delivering a more reliable, predictable and
customer-centric logistics network that supports South Africa's economic growth and
development objectives.

This strategic transition continues to gain momentum across our operations, delivering an
approximate 5% year-on-year increase in overall volumes. Key cargo segments recorded
double-digit growth, led by containers at approximately 10% and automotive volumes at
approximately 13%. These results reflect the continued dedication of our workforce and the
benefits of ongoing efforts to improve operational reliability, enhance service delivery,
strengthen customer confidence and embed a culture centred on performance, safety and
service excellence.

The 2025/26 financial year also marked a significant milestone in advancing Transnet's growth
and transformation objectives through the commencement of the Durban Gateway Terminal
(DGT) partnership with ITSCI. This transaction represents the first in a series of strategic
private sector participation (PSP) initiatives aimed at mobilising private capital, specialised
expertise and operational capabilities to support the expansion and modernisation of South
Africa's freight logistics network. PSPs remain a cornerstone of the Reinvent for Growth
Strategy and will play a critical role in enhancing operational performance, expanding network
capacity, improving competitiveness and supporting long-term financial sustainability.

As Transnet continues to execute its R4G Strategy, the focus remains on building a more
efficient, financially resilient and customer-focused organisation. Through ongoing operational
improvements, strategic partnerships and targeted investments, Transnet aims to strengthen
its value proposition, unlock economic growth, facilitate trade and contribute to South Africa's
long-term competitiveness and prosperity.

Regulatory reforms

Transnet will continue to navigate an ever-changing legislative landscape on its path of
recovery, including reforms that could result in the corporatisation of National Ports Authority.
Johannesburg


10 September 2026
JSE Debt Sponsor
Absa Corporate and Investment Bank (a division of Absa Bank Limited)
Date: 10/09/2026 11:23:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.