Our key performance indicators (KPIs) are reflected in this strategic performance dashboard.

Exxaro’s board and executive committee monitors the dashboard quarterly to ensure we remain within our sustainability risk appetite and realise our strategic objectives.

Our approach ensures that strategy management is integrated with:

• A sustainability framework
• An integrated risk management framework including clearly defined material matters
• KPIs aligned with material matters, risks and our sustainability framework (each measured against our board-approved tolerance level)
• Connected combined assurance, risks, material matters and KPIs

The most critical information is available for the board and executive committee to measure and manage Exxaro’s strategy and performance. Our stakeholders also have a transparent and consolidated view of value creation and sustainability drivers.

The dashboard has built-in risk appetite thresholds to ensure appropriate strategic decisions.

HOW TO INTERPRET THE DASHBOARD

The dashboard links KPIs that are reported in terms of the six capitals and our material matters, reflecting our belief that sustainable value creation is enabled through carefully considering the relationship between the capitals we affect. Performance indicators (negative, positive, unchanged or new) show whether or not KPIs are within our risk appetite thresholds.

We aim to be on target. If we reach the “worst tolerable” threshold, we are not within our defined risk appetite. We must then implement controls or improve existing controls.

Example of KPI measure

One of our strategic objectives is to improve operational performance. A relevant KPI is core operating margin. If it is below best realistic, we have underperformed. When it is above target, we have wasted resources and may have overlooked opportunities.

KPI performance	Current performance	Indicator
Core operating margin	25%

 

KPI threshold	Out of appetite	Worst tolerable	Best realistic	Target	Possible waste or opportunity
Core operating margin	<15%	15%	Between 15% and 20%	20%	>20%
Indicator

 

HUMAN CAPITAL

		2020			2019		Trend based on actual data
KPI	Target	Actual	Indicator	Target	Actual	Indicator
Safety
Number of fatalities	0	0		0	0
Lost-time injury frequency rate (LTIFR)	0.11	0.05		0.11	0.12
Lost-time injuries (LTIs)	21	9		21	26
Health
Occupational health incident frequency rate (OHIFR) reported1	0.31	0.19		0.31	0.25
People who received HIV/Aids awareness training	Between 90% and 100%	84.1		Between 90% and 100%	130
Employees who received awareness training and voluntarily tested for HIV/Aids (%)	68% and above	47.6		68% and above	54
HIV/Aids prevalence rate compared to country prevalence rate (%)	0	8.8		0	10.70
Skills
Skills provision (% of internal appointments for critical skills)2	60	76.16		60	47.90
Retention of scarce skills (% turnover)	5	3.6		5	3.80
Security
Fraud and corruption/asset destruction (%)3	0	0		0	0
Successful civil and criminal liability claims against Exxaro or other non-compliance penalties (% of revenue)	Legal fines of R500 000 to R1m	0		Legal fines of R500 000 to R1m	0

1	Chronic obstructive airways disease (COAD), noise-induced hearing loss (NIHL), pneumoconiosis, silicosis and occupational tuberculosis (TB).
2	Please note that the definition for skills provision was updated in 2020 from that used in prior years.
3	PPE inventory, debtors and cash.

Trend
	Deteriorated
	Improved
	Unchanged
	New KPI this period

KPI threshold	Out of appetite	Worst tolerable	Best realistic	Target	Possible waste or opportunity
Core operating margin	<15%	15%	Between15% and 20%	20%	>20%
Indicator

 

NATURAL CAPITAL

		2020			2019		Trend based on actual data
KPI	Target	Actual	Indicator	Target	Actual	Indicator
Incidents
Reportable environmental incidents (level 2 and level 3)	6 level 2s 0 level 3s	0 level 2s 0 level 3s		6 level 2s 0 level 3s	0 level 2s 0 level 3s
Compliance
Stoppage directives (includes section 54 in terms of MHSA)1	0	3		0	7
Stoppage directives (includes directives in terms of NWA, +NEMA and MPRDA)2	0	0		0	0
Valid authorisations in place (EA, IWUL, WML, AEL, EIA ROD, Reporting)
Current operations (%)	100	100		100	100
Projects (%)	100	100		100	100
Compliance to valid licences/authorisations in place (EA, IWUL, WML, AEL, EIA ROD, Reporting)
Current operations (%)	100	96.47		100	97
Projects (%)	100	99.33		100	100
Environmental liability provisions in place4
Commercial operations (%)	Between 80 and 100	69		Between 80 and 100	68
Captive operations (%)	Between 60 and 100	116		Between 60 and 100	51
Environmental management
Carbon Intensity scope 1 emissions (ktCO2e)	Actual for previous year less 5%	1.82		Actual for previous year less 5%	7
Carbon Intensity scope 2 emissions (ktCO2e)	Actual for previous year less 5%	3.06		Actual for previous year less 5%	2
Water intensity (kilolitres/run of mine (RoM))	0.2kl/tonne	0.137		0.2kl/tonne	0.10

1	Including section 54 of the Mine Health and Safety Act, 1996 (Act 29 of 1996), section 93 of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002) (MRDPA) and directives in terms of the National Water Act, 1998 (Act 36 of 1998) and the National Environmental Management Act, 1998 (Act 107 of 1998) (NEMA).
2	Mine works plan and SLP.
3	Environmental authorisation, integrated water use licence (IWUL), atmospheric emissions licence, environmental impact assessment and record of decision.
4	Gap between immediate closure cost and rehabilitation funds available excluding guarantees.

Trend
	Deteriorated
	Improved
	Unchanged
	New KPI this period

KPI threshold	Out of appetite	Worst tolerable	Best realistic	Target	Possible waste or opportunity
Core operating margin	<15%	15%	Between15% and 20%	20%	>20%
Indicator

SOCIAL AND RELATIONSHIP CAPITAL

		2020			2019		Trend based on actual data
KPI	Target	Actual	Indicator	Target	Actual	Indicator
Employment equity
Black ownership at group level1 (%)	30.1	38.22		30	30
People living with disabilities1	1.5	1.44		1.5	1.34
Human resource development1 spend fordesignated group (as a percentage (%) of skills levy tax-based payroll excluding levies, including internaland external training) Mining Charter III	5	4.92		5	5.27
Employment equity in top management bands2 (%)	50	66.67		50	66.67
Employment equity in senior management bands2 (%)	60	57.95		60	45.83
Employment equity in middle management bands2 (%)	60	74.49		60	56
Employment equity in junior management bands2 (%)	70	78.15		70	68.44
Women in top management bands2 (%)	20	33.33		20	33.33
Women in senior management bands (%)	25	19.32		25	9.38
Women in middle management bands (%)	25	36.16		25	20.46
Women in junior management bands (%)	30	26.12		30	18.27
Business sustainability
B-BBEE	Level 1	Level 2		Level 1	Level 2
Enterprise development (% of NPAT)	1	0.45		1	0.80
Supplier development (% of NPAT)	2	0.86		2	1.03
Socio-economic development (% of NPAT)	1	1.354		1	1.23
Skills development expenditure on learning programmes specified in the learning programme matrix for black people with disabilities (as a percentage of leviable amount)	0.03	0.00484		0.03	3.92
SLPs
Project delivery measure - local economic development projects per SLP time variance from plan1 (%)	0	(11)		0	11
Cost variance from plan (%)	0	59		0	58

1	Mining Charter III.
2	Five-year plan (2022).
3	B-BBEE codes.
4	Unaudited figure.

MANUFACTURED AND INTELLECTUAL CAPITAL

		2020			2019		Trend based on actual data
KPI	Target	Actual	Indicator	Target	Actual	Indicator
Capital project delivery measure
Capital projects time overrun	0	11.1		0	5
Capital projects cost overrun	0	6.3		0	3.10
Operational performance
System availability (Core P1 and ERP Solutions)	97	98		97	99.75
Digitalisation programmes (cost overrun)	0	0		0	(6.00)
Digitalisation programmes (time overrun)	0	9		0	(6.00)

FINANCIAL CAPITAL

		2020			2019		Trend based on actual data
KPI	Target	Actual	Indicator	Target	Actual	Indicator
Core operating margin (%)	20	17		20	15.24
Core ROCE (%)	>20	27		20	27.51

Trend
	Deteriorated
	Improved
	Unchanged
	New KPI this period

KPI threshold	Out of appetite	Worst tolerable	Best realistic	Target	Possible waste or opportunity
Core operating margin	<15%	15%	Between15% and 20%	20%	>20%
Indicator