UNDERSTANDING OUR BUSINESS | Our investment proposition | Next: Governance for sustainable value creation

Understanding our business
Our investment proposition

Based on disciplined governance and capital allocation, quality resources, access to funds and competitive returns, Exxaro is a unique listed investment opportunity for shareholders.

WE DIFFERENTIATE OURSELVES IN THE MARKET THROUGH:

OUR UNIQUE COMPETITIVE ADVANTAGES

Our continued focus on operational excellence is designed to set our offering apart.

  • Large multi-product and long-life coal reserve base, with a quality coal reserve
  • Defensive and established domestic (short and long-term contracts) and international customer base
  • Adequate port and rail allocation to support export growth
  • Resilient and debt-free 30% black ownership structure
  • Ongoing cost-efficiency programmes
  • Focused approach to carbon reduction and management throughout our value chain
  • Portfolio optimisation for carbon and cost efficiency of our portfolio

 

OUR FINANCIAL STRENGTH

Our focus on preserving and building our financial resilience has stood us in good stead.

  • Strong balance sheet — 28% net debt:equity
  • Earnings and cash-generative operations
  • Returning cash to shareholders: dividend policy of 2.5 to 3.5 times adjusted group earnings, pass-through of SIOC dividend received and special dividends from surplus cash — competitive dividend yield

 

OUR GROWTH PROSPECTS

We continue looking beyond today, to ensure we are able to deliver value into the future.

  • Long-term strategic plan in place to support the just transition to a low-carbon economy in a commercially appropriate manner
  • Organic coal production growth to supply domestic markets, Eskom and export markets
  • Domestic and offshore coal revenue growth, completing the R17 billion capex programme
  • Stable revenue model from renewable energy investment

 

OUR UNERRING COMMITMENT TO SAFETY

Our commitment to health and safety: zero harm remains Exxaro’s key safety objective.

  • Recorded a record-low lost-time injury frequency rate (LTIFR) of 0.05 as at 31 December 2020 (55% better than the set target of 0.11)
  • Achieved a record four fatality-free years on 2 March 2021

 

OUR WORLD-CLASS LEADERSHIP AND GOVERNANCE

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.

  • Experienced, growth-oriented leadership team
  • Established governance structures — proven and leading ESG performance
  • Ethical leadership
  • Stakeholder-oriented approach
  • Leadership is proactive in the just transition and response to climate change

 

STAKEHOLDER perspective and RETURNS

  • Compliance and governance that ensures a sustainable organisation
  • Return on invested capital that is above our cost of capital
  • Catalyst for economic development which creates opportunities for job creation and ESD
  • Responding to the systemic challenge of climate change providing an opportunity for employees and communities to transition to a new world