Material theme	Matters	Strategies to achieve our objectives		Related strategic objectives		Our broader impact
Driving business resilience	Strong financial performance and capital excellence Logistical impediments Supply chain management Innovation and digitalisation Cybersecurity	Ensuring efficient capital allocation and capital excellence Enhancing operational efficiency enabled by the iNNOVAXXION strategy
Executing our strategy	Diversify responsibly into energy transition metals while optimising our coal portfolio Build a leading energy solutions business

Performance snapshot

Exxaro’s business resilience encompasses capital allocation, energy investments, innovation, information management and reputational resilience (our stakeholders).

Capital allocation and energy investments		Maintained business resilience through prudent, strategic capital allocation aligned to long-term value creation. Advanced renewable energy with the LSP producing green electrons, Karreebosch windfarm under construction and progress towards 1 600MW net installed capacity, further supporting value creation
Cybersecurity and operational resilience		We further enhanced backup and recovery strategies to improve incident response, and implemented proactive measures to address cybersecurity-related risks. We also advanced cybersecurity awareness and data governance to protect our operations and reinforce stakeholder trust
Technology and innovation		We introduced a reliability engineering tool that automates critical processes, including real-time data capture, analysis and visualisation. The tool detects early warning signals, standardises reliability assessments across our operations and provides data-driven insights that improve decision making, reduce downtime and enhance asset performance.

Our performance

Capital allocation

Project	Classification (growth/sustaining)	Product	Focus and performance	Capital expenditure
Location: Mpumalanga
The Matla Mine 1 relocation overland conveyor was successfully commissioned in the second half of 2025, as part of the approved infrastructure projects at Matla. The reaming ventilation shaft was completed in November 2025. The plant and the Matla LoM programme are expected to be completed during the first half of 2026.
Matla LoM programme	Sustaining	10.066Mtpa of thermal coal	Developing infrastructure to support LoM production	R5.24 billion

Coal portfolio

We are advancing capital excellence to ensure a resilient, high-performing coal portfolio that consistently generates strong cash flows. Our approach involves evaluating and optimising our portfolio, prioritising value-accretive assets, divesting non-core operations where appropriate and reinvesting in strategic growth and efficiency initiatives in our coal business. To support this, we maintain an average annual capital allocation of R2.5 billion and R3 billion in real terms, ensuring the long-term sustainability and competitiveness of our coal business.

Capex in our coal business increased by 9% compared to 2024, reflecting our commitment to sustain our operational performance. This remains within our guidance provided for 2025.

The increase in sustaining capital is mainly due to our capital equipment replacement strategy at Grootegeluk. On average, we remain within the guidance provided.

Responding to supply chain and logistics challenges

Despite continued rail disruptions and ongoing logistics challenges, Exxaro’s export evacuation via rail increased. However, our evacuation to alternative ports reduced due to coal prices and evacuation costs. We remain focused on harnessing our intellectual capital to develop innovative logistics solutions and corridors to fulfil market demand and optimise our value chain.

Operating context

Energy investments

We are prudently scaling our energy solutions business to achieve 1 600MW (net) capacity by 2030. Using high-level assumptions, this could deliver an estimated EBITDA of approximately R6.4 billion by 2030.

Our ongoing energy investments include:

• The LSP, which will add 68MW to Cennergi’s generation capacity. The plant was commissioned in December 2025. The revised estimated project total investment cost is R1.7 billion
• The Karreebosch windfarm project, which will add a further 140MW gross capacity and is expected to be operational in 2027
• Our acquisition of majority stakes in the 138MW Gouda windfarm in the Western Cape and the 75MW Sishen solar facility in the Northern Cape. The transaction is set to conclude in the first half of 2026. Lastly, financial close of the 240MW Corona solar project is expected by the end of 2026

Technology and innovation

Technology and innovation are strategic enablers that are critical to operational effectiveness and achieving our carbon neutral goal. We leverage technology to ensure our operations go beyond compliance and conventional mining practices, measuring and enhancing our social and environmental impact. This includes implementing innovative mining and processing technologies, which ensures that investing in energy transition metals remains financially viable and that new operations keep us positioned on the lowest cost curve.

Fostering an innovation culture

We empower our people to create impact by fostering an innovation culture and embedding this in how we conduct business. This extends to creating a positive socio-economic impact in the communities where we operate, by integrating social innovation into our approach to addressing community challenges.

Cybersecurity

Data is a critical business asset, requiring strong governance and protection. We recognise that digitisation and interconnectivity across our operations elevates our vulnerability to cyberattacks. In addition, the adoption of generative AI introduces new risks, including AI-driven threats and increased data security concerns.

Our cybersecurity programme mitigates these risks and continues to evolve, underpinned by comprehensive prevention, detection, response and recovery strategies. We are also compiling a data governance framework which we expect to finalise in 2026. We remain committed to strengthening our cyber resilience while pursuing digitisation and innovation.