Jeffrey van Rooyen
I begin my 2020 integrated report statement with a commitment to sharpen our strategic resolve in the middle of uncertainty presented by the COVID-19 pandemic. While 2020 presented us with numerous challenges, I am pleased to report that we made significant progress in refining our strategy. Exxaro was founded with a singular purpose – to power better lives in Africa and beyond. Our strategy is designed to deliver on that promise now and into the future.
Chief executive officer
While the first three months of 2020 passed smoothly with strong operational results, the emergence of COVID-19 disrupted life as we knew it. As a team, we quickly reset our compass and shifted our engagement platforms for positive outcomes.
While Exxaro’s operations were declared an essential service during the lockdown period, and able to operate, the environment remained challenging. However, our managed operations were able to show strength and resilience resulting in a 25% increase in core EBITDA* to R7.3 billion.
We concluded the decade to 2020 with a new strategy and started the next decade with a firm foundation for our journey towards a just transition. 2020 marked a milestone in the (near) conclusion and achievement of our prior strategic objectives, namely portfolio optimisation, ensuring a sustainable business, delivering operational excellence and product capital optimisation. We describe our performance against these objectives in the next section in the context of the following five material themes:
Based on disciplined governance and capital allocation, quality resources, access to funds and competitive returns, Exxaro is a unique listed investment opportunity for shareholders.
Our continued focus on operational excellence is designed to set our offering apart.
Our focus on preserving and building our financial resilience has stood us in good stead.
We continue looking beyond today, to ensure we are able to deliver value into the future.
Our commitment to health and safety: zero harm remains Exxaro’s key safety objective.
We recognise that creating value for our stakeholders depends on effective and efficient governance processes and practices informed by the pillars of good corporate citizenship, that is, transparency, accountability and integrity.
Our risk scores are derived from the product of the likelihood and the impact of the unwanted event. We rank our risks according to residual risk score from highest to lowest.
Risk = f
of risk occuring
of the risk
% of risks linked to sustainability capitals
% risks from internal versus external sources