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Strategic focus areas


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) 
    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  
Protect and build Exxaro’s reputation     Positive stakeholder engagement     Publicity/media coverage.

Feedback from stakeholder interaction initiatives  
    Representation and fair workplace     Recognition as an employer of choice

Legislative and regulatory compliance  
    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) 
    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  
    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  
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  
  Low-cost producer     Position on cash cost curve  

 

 

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