| Share prices |
Exxaro’s business strategy is guided by five areas where the group believes it must perform well to claim competitive advantage and provide an attractive investment case. We explain these focus areas below, together with our understanding of each.
| Strategic focus area | Implementation | Measure | ||
| Ensure Exxaro’s sustainability | Integrated approach to risk management | Risk management part of strategy, business planning and day-to-day operations | ||
| Access to good quality long-term resources | Life of mine | |||
| Responsible, safe operations | Environmental footprint, performance against safety and health objectives | |||
| Regulatory compliance Corporate citizenship | Responsible corporate citizenship footprint. Governance ratings (JSE) and Socially Responsible Investment Index (SRI) |
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| Healthy balance sheet and financial metrics | Financial performance | |||
| Protected intellectual property Appropriate new technology development |
Patent and trademark registrations and protection Technology pipeline aligned with strategy |
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| Protect and build Exxaro’s reputation | Positive stakeholder engagement | Publicity/media coverage. Feedback from stakeholder interaction initiatives |
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| Representation and fair workplace | Recognition as an employer of choice Legislative and regulatory compliance |
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| Transparent and compliant reporting | Integrated and transparent reporting of economic, social and environmental performance | |||
| Industry leader in transformation | Compliance with revised mining charter | |||
| Preferred local and export supplier | Feedback from customers | |||
| Living our values and brand | Internal and external surveys | |||
| Develop Exxaro’s leadership and people | Develop effective leaders | Leadership interventions, cross-discipline exposure, and management rotation | ||
| Ensure right talent for operational management and growth | ||||
| Reward and remunerate for innovation and productivity | Benchmarked remuneration Staff turnover rate Internal recognition awards | |||
| Recognise our people as our strength | ||||
| Improve Exxaro’s portfolio | Top-quartile performer in peer group Solid performance and growth throughout the commodity cycle |
JSE SRI Index rating Return on capital employed (ROCE) comparison to peer group Compound annual growth rate (CAGR) for revenue and net operating profit (EBIT) |
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| Innovation and technological development supporting Exxaro’s drive for continuous improvement and growth aspirations | Internal capacity and experience of technology resources Research and development (R&D) capacity and progress |
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| Well-articulated growth strategy with robust and balanced opportunity and project pipeline | Unambiguous growth strategy known to all stakeholders | |||
| Funding capacity to support strategy realisation | Healthy financial metrics External financial support Credit rating |
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| Achieve operational excellence | Consistently achieve annual stretched performance targets Rigorous performance reviews for operations and support services Effective project execution on time and within budget |
Physical production performance Market share and reliability of supply |
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| Low-cost producer | Position on cash cost curve |