Performance and value creation

Strategic direction

King IV articulates the board's responsibility, which is to steer an organisation strategically in line with its core purpose and values by approving and monitoring informed short, medium and longterm strategies while considering sustainability-related impacts, risk and opportunities.

The board sets Exxaro's short, medium and long-term strategic direction through our Sustainable Growth and Impact strategy. This enables sustainable value creation through the approval of a capital allocation model and budget, as well as setting and monitoring performance and culture expectations and a group governance framework.

The board supports King IV strategy-setting principles through an iterative process. Before executive management presents the strategy to the board, iterative strategy workshops - which follow a bottom-up process - and board governance sessions ensure input is appropriately integrated into the group strategy.

During our annual strategy review process, management demonstrates how sustainability and ESG objectives are integrated into the Sustainable Growth and Impact strategy, including status and progress in our context.

Our integrated medium to long-term decarbonisation roadmap to achieve carbon neutrality by 2050 underwent an independent peer review to confirm its credibility and implementation readiness.

During the year, the board reviewed and was satisfied with the key macro-economic indicators and assumptions used to compile the 2026 budget.

Decarbonising our operations and responding to a changing climate

Performance monitoring

As part of integrated strategic performance monitoring, prioritised KPIs align with the Sustainable Growth and Impact strategy. This provides forward-looking insights and monitors the execution of our strategy for the board, board committees and group executive committee, in line with our tiered governance approach.

We use a strategic performance monitoring dashboard to report on the achievement of these KPIs, which are cascaded to the various board committees to ensure focused oversight and accountability. For more on our performance, see:

Performance against our strategy

How we measure our progress and impact (ESG report)

Performance targets to support our climate change response

To strengthen GHG mitigation and business resilience efforts, we included water and energy intensity targets in the group-wide group incentive scheme in 2022. Total carbon emissions and energy intensity are also included in Exxaro's strategic performance monitoring dashboard.

Reducing absolute emissions is central to our commitment to achieving carbon neutrality by 2050. We track scope 1 and 2 emissions to measure progress in minimising our carbon footprint, while lower energy intensity reflects improved operational efficiency, supporting our decarbonisation targets and reducing our environmental impact.

Decarbonising our operations and responding to a changing climate

Business continuity and crisis management

The RBR committee plays a key role in assessing and reviewing the group's business resilience programme and ensuring that appropriate measures are in place for business recovery. The committee is responsible for driving the company's resilience agenda, ensuring that our business continuity strategies align with best practice and regulatory requirements.

Exxaro is committed to building organisational resilience. By maintaining a strong business resilience programme aligned with our ERM programme, we protect stakeholder interests and ensure that we can continue to deliver on our commitments, regardless of challenges.

We continuously review and update our business resilience framework to ensure alignment with best practice and governance standards. The company regularly evaluates the effectiveness of the business resilience programme, making improvements when required.

In November 2025, the RBR committee recommended the crisis management policy to the board for approval.

Strategy-aligned internal reporting

Internal reporting requires management to detail the outcomes of proposed recommendations to the board.

Transparency

The board is committed to clear and comprehensive financial reporting and disclosure, as well as constructive shareholder engagement, including transparency of activities and performance. It ensures that reports issued by the company enable stakeholders to make informed assessments of the group's performance and our short, medium and long-term prospects.

Assurance

Refer to the assurance report (ESG report) for details on assurance of key sustainability information.

Refer to combined assurance for effective governance for details on our combined assurance approach.

Creating value for our stakeholders

For more on how Exxaro created value for our stakeholders, including government, employees, communities, investors and customers, refer to our stakeholders