Exxaro's 2020 integrated report explains the year's progress in our journey to create and preserve value for our stakeholders. As our primary communication to our stakeholders, we strive to ensure that the content in this integrated report contains the most material information relating to our value creation journey and shares our story transparently and understandably.

SCOPE AND BOUNDARY

This report contains important information about our strategic decisions and operational performance for the period 1 January 2020 to 31 December 2020 (the 2020 financial year). Our 2020 integrated report covers the financial and non-financial information of the group's operations in South Africa, Europe, the USA and Australia. We include limited information of operations where we do not have management control but hold a significant equity interest, namely Sishen Iron Ore Company Proprietary Limited (SIOC), a subsidiary of Kumba Iron Ore Limited, or joint control, namely the Mafube mine and Moranbah project joint ventures. For more information, refer to our annual financial statements.

The 2020 integrated report also includes a summary of the most material information in our 2020 climate change response strategy report, environmental, social and governance report and Consolidated Mineral Resources and Mineral Reserves report, which can be accessed on our website under the investors tab.

Visit our website for historical information.

Reporting frameworks

The content of this report is guided by:

• Our materiality determination process Our material matters.
• Companies Act, 2008 (Act 71 of 2008), as amended (Companies Act)
• International Financial Reporting Standards (IFRS)
• JSE Listings Requirements
• Department of Trade, Industry and Competition (dtic) broad-based black economic empowerment (B-BBEE) codes of good practice
• Broad-based Socio-economic Empowerment Charter for the Mining and Minerals Industry 2018 (Mining Charter III)
• International Integrated Reporting Council's Integrated Reporting Framework ( Framework)
• United Nations Global Compact (UNGC)
• Global Reporting Initiative standards (elements of the ESG report are cross-referenced for a broader perspective)
• King IV Report on Corporate Governance for South Africa, 2016 (King IV^TM)*
• The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code), 2016 (SAMREC)

* Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.

Reporting suite

Exxaro is committed to transparent reporting, and as such, annually publishes a suite of reports (available on our website under the investors tab) that should be read in conjunction with this integrated report. These reports include:

Our sustainability framework: integrated thinking and the six capitals

Exxaro believes in sustainable value creation, enabled through carefully considering the relationship among the capitals we use and affect. We have integrated the six capitals into our business model and strategy, and continuously strive to positively contribute to and negate any adverse impacts on these capitals. We do this to ensure our sustained success and foster a more sustainable operating environment for Africa and beyond. We also aim to create and preserve value for our stakeholders and society at large, and prevent the erosion thereof. In this report, we share our progress in this regard and demonstrate our prospects. The six capitals we use and affect are:

Refer to Our material matters in action for more information on the linkage between the six capitals, matters of significance to the business, related risks, the United Nations (UN) Sustainable Development Goals (SDGs), our strategy and business model, and our engagement with stakeholders.

Board responsibility

Exxaro's board of directors acknowledges its responsibility for ensuring the integrity of Exxaro's reporting suite, including this integrated report. Our board believes this report addresses all Exxaro's material matters and presents a balanced view of the group's strategy and business model in relation to Exxaro's ability to create and preserve value over the short, medium and long term, as defined by the capitals. As such, the board believes that this integrated report was prepared in accordance with the International Framework. The integrated report, which remains the ultimate responsibility of the board, is prepared under the supervision of senior management, and subject to rigorous internal and external assurance reviews.