Strategic performance dashboard

The strategic performance dashboard measures our key performance indicators (KPIs) across the six capitals. The board and executive committee monitor the dashboard quarterly to ensure all sustainability-related risks and key metrics remain within our risk appetite (the level and type of risk we are prepared to take in order to meet our strategic objectives).

We have refined the way we conduct business in recent years to ensure that management of our strategy is integrated and holistic by:

• Establishing a sustainability framework
• Implementing an integrated risk management framework with clearly understandable material matters
• Identifying KPIs aligned with material matters, risks and our sustainability framework, and each measured against the tolerance level or appetite set by our board
• Linking the combined assurance plan with risks, material matters and KPIs.

The outcome of this process is an integrated strategic performance dashboard that provides the most critical information required by the board and executive committee to measure and manage Exxaro's strategy and performance. It also provides a transparent and consolidated view for stakeholders on our drivers for creating value and ensuring sustainability.

This dashboard has built-in risk appetite thresholds to ensure decisions in pursuing Exxaro's strategic objectives are in line with the risk threshold.

How to interpret the dashboard

The dashboard lists all KPIs linked to a strategic priority/capital and material matter. Current performance and the status of the indicator (colour-coded icon) reflect whether or not the KPI is within our risk appetite thresholds. We aim to be within the target threshold: outside of worst tolerable means that we are not within our defined risk appetite in pursuing our strategic objectives and this will require additional controls or improvements to existing controls.

Example of KPI measure

One of our strategic objectives is to improve the performance of our operations. A related KPI is the core operating margin. Anything outside of worst tolerable or target means that we underperformed or overperformed, and appropriate action will be taken.

KPI performance

KPI		Current performance	Legend (indicator)
Core operating margin		25%

KPI threshold

KPI		Out of appetite	Worst tolerable	Best realistic	Target	Possible waste/ opportunity
Core operating margin		Less than 15%	15%	Between 15% and 20%	20%	More than 20%
Legend

Human capital

	2019		2018
KPI	Actual	Indicator	Actual	Indicator		Trend
Safety
Number of fatalities	0		0
Lost-time injury frequency rate (LTIFR)	0.12		0.12
Lost-time injuries (LTIs)	26		23
Health
Occupational health incident frequency rate (OHIFR) reported1: Chronic obstructive airways disease (COAD) Noise-induced hearing loss (NIHL) Pneumoconiosis Silicosis Occupational TB	0.24		0.33
Occupational health1	15		12
Non-occupational diseases2	413 1 911		100 297
People who received HIV/Aids awareness training (% of group)	130		100
% of employees who received awareness training and voluntarily tested for HIV/Aids	54		77
HIV/Aids prevalence rate (%) compared to country prevalence rate	10.7		9
Skills
Skills provision (% of internal appointments for critical skills)	47.9		52.4
Retention of scarce skills (% turnover)	3.80		5.01
Security
Fraud and corruption/asset destruction (%)3	0		0
Successful civil and criminal liability claims against Exxaro or other non-compliance penalties (% of revenue)	0		0

1	Chronic obstructive airways disease (COAD), noise-induced hearing loss (NIHL), pneumoconiosis, silicosis and occupational tuberculosis (TB).
2	Chronic diseases such as diabetes and high blood pressure, among others.
3	Personal protective equipment (PPE), inventory, debtors and cash.

 

R4.4 billion Our employees enjoy the largest share of value created from earnings as well as investments in development

2 316 cps Shareholders receive a return on their investment through dividends and growth in the share price

Natural capital

	2019		2018
KPI	Actual	Indicator	Actual	Indicator		Trend
Incidents
Reportable environmental incidents (level 2 and level 3)	0		7
Compliance
Stoppage directives1	7		0
Valid mining rights (in place/not)2
Current operations (%)	100		100
Projects (%)	100		100
Valid authorisations3
Current operations	100		100
Projects	100		100
Compliance with valid licences/authorisations (%)
Current operations	97		96
Projects	100		99
Provisions
Environmental liability provisions in place4 (%)
Commercial operations	68		25
Captive operations	51		15
Emissions management
Carbon footprint (ktCO2e)
Scope 1	412		315.4
Scope 2	670		552
Carbon intensity (ktCO2e/TTM)	5.4		5.3
Water management
Water intensity (kL/ROM)	0.10		0.11

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) 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).
2	Mine works plan and social and labour plan.
3	Environmental authorisation, integrated water use licence, atmospheric emissions licence, environmental impact assessment and record of decision.
4	Gap between immediate closure cost and rehabilitation funds available excluding guarantees.

 

R15.6 billion Suppliers and contractors are supported by our procurement of consumables, services and capital goods

R1.7 billion Governments of countries in which we operate and invest receive taxes and royalty payments

Social capital

	2019		2018
KPI	Actual	Indicator	Actual	Indicator		Trend
Employment equity
Black ownership at group level1 (%)	30		30
People living with disabilities2	1.3		1.16
Human resource development1 (% payroll excluding levies, including internal and external training)	5.27		5.27
Employment equity (%) on top management bands3	66.67		66.67
Employment equity (%) on senior management bands3	50.00		46.74
Employment equity (%) on middle management bands3	68.77		65.43
Employment equity (%) on junior management bands3	75.02		73.64
Black women (%) on top management bands3	33.33		33.3
Black women (%) on senior management band3	9.38		7.6
Black women (%) on middle management band3	20.46		17.2
Black women (%) on junior management band3	18.27		17.4
Business sustainability
B-BBEE level	Level 2		Level 5
Enterprise development (% of NPAT)	0.80		0.97
Supplier development (% of NPAT)	1.03		1.47
Socio-economic development (% of NPAT)	1.23		0.90
Skills development: learning programmes for black people target as % of payroll excluding mandatory sectoral training4	3.92		3.4
Social and labour plans (SLPs)
Project delivery measure - local economic development projects per SLP (%) time variance from plan1	(11)		12
Cost variance from plan (%)	(58)		(8)

1	Mining Charter.
2	Mining Charter III.
3	Five-year plan (2022).
4	Broad-based black economic empowerment (B-BBEE) codes.

 

28% ROCE Providers of finance receive a return on their investment

R170.7 million A total of 30 enterprises were granted loans and grant funding

Manufactured and intellectual capital

	2019		2018
KPI	Actual	Indicator	Actual	Indicator		Trend
Capital project delivery measure
Time	5.0	Behind	0.1	Behind
Cost	3.1	Within budget	0	On target
Country risk as per assessment criteria (key drivers physical security and security of tenure)	0		0
Operational performance
Asset availability of enterprise resource planning systems	99.75		99.75
Digitalisation programmes (cost overrun)	(6)		(12)
Digitalisation programmes (time overrun)	(6)		8

 

R5.8 billion We reinvest in the growth of our coal business: R2.2 billion sustaining capital and R3.6 billion expansion capital

Financial capital

	2019		2018
KPI	Actual	Indicator	Actual	Indicator		Trend
Core operating margin (%)	15.24		22.36
Return on capital employed (ROCE) (%)	27.51		22.38
Return on equity based on core headline earnings (HEPS) (%)	19.32		17.49
Core HEPS (cps, short-term target)	2 354		2 159

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Positive

Unchanged

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New KPI this period