EXXARO DELIVERS STRONG PERFORMANCE IN FY21

Exxaro continues to “Power Possibility”, having increased our Group Revenue by 13%, our EBITDA by 46% and our Headline Earnings by 56% in the FY21, thanks to our winning combination of strong leadership, a robust Sustainable Growth and Impact Strategy and the effective teamwork that runs right across the business. But probably the best result of all, is the fact that we achieved 5 years fatality free.

Our results in numbers…

Financial performance

  • Group revenue up 13% to R32.8 billion [FY20: 28.9 billion].
  • Core EBITDA up 46% to R10 671 million [FY20: R7 291 million].
  • Core HEPS up 58% at R46.83 [FY20: R29.73].
  • Net cash position of R764 million (excluding Cennergi’s net debt of R4 482 million) [FY20: net debt of R6 335 million (excluding Cennergi’s net debt of R4 632 million)].
  • Total cash dividend of 1 175 cps (FY20: 1 243 cps) [down 68 cents year-on-year].
  • Total ordinary dividend of 3 252 cps (FY20: 1 886 cps) up 72%.

Operational performance

Poor logistical performance resulted in a year-on-year decline of 37% in our export volumes:

  • Production declined by 10% to 42.2Mt due to the impact of logistical constraints.
  • Export sales volumes [7 632 Mt exported] was in line with our entitlement.
  • Coal revenue increased 13% [the average realised export price of US$96 per tonne was up 100% on FY20].

Energy – 2nd largest renewable energy producer in SA uniquely positioned for growth in SA’s energy liberalisation framework.

  • We are building a renewable energy business that will protect the value of the coal business through self-generation.
  • We are building a market position in emerging opportunities for distributed energy.

Safety Performance

Safety – Record performance and implication on company’s performance: 5-year fatality free as at 02 March 2022 and a LTIFR of 0.08, in line with target.
Zero Harm our driving force. ‘Khetha Ukuphepha’ the best choice.
Our response to the pandemic has prioritised avoiding, reducing, and managing COVID-19 infections.
As at 01 March 2022, the group had 7 246 confirmed cases and a recovery rate of 99%, with no loss of life during the recent fourth wave.
As at 02 March 2022, a total of 11 946 (81.45%) of employees and contractors have been vaccinated. 2 600 still to be vaccinated.

Social impact performance

We continue to build Socio-Economic resilience:

  • ESD funding to 15 entities to the value of R127.7 million.
  • A catalyst for economic growth and environmental stewardship.

Local procurement investment

  • Doubled our local procurement spend.
  • Spend on local black SMMEs is R1.05 billion (241 local black SMMEs).

Social & Labour plans

  • R64 million – spent on completion of schools, an ESD hub, water, and sanitation infrastructure projects. 205 jobs created.
  • 53 484 community members positively impacted, including 272 households, school children, women and youth entrepreneurs.

Governance performance

  • Maintained leading ESG ratings.
  • Continued to reiterate the solid leadership credentials and appropriate skills to achieve the company’s objectives.
  • Board approval of CEO succession – Doctor Nombasa Tsengwa to succeed Mxolisi Mgojo as CEO.
  • Robust risk management across the organisation.
  • The Board has approved the appointment of Dr Pumla Mnganga, Ms Karin Ireton, Mr Billy Mawasha and Mr Ben Magara to the Board as independent non-executive directors, with effect from 7 February 2022.

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