ArcelorMittal South Africa : Summarised report of AFS 2021

Summarised consolidated financial statements 2021

Contents to the financial report

Contents

1	Independent auditor's report on summarised consolidated financial statements
2	Summarised consolidated financial statements
23	Analysis of ordinary shareholders
25	Corporate information
b	ArcelorMittal South Africa Summarised consolidated financial statements 2021

Independent auditor's report on summary consolidated financial statements

TO THE SHAREHOLDERS OF ARCELORMITTAL SOUTH AFRICA LTD

Opinion

The summary consolidated financial statements of ArcelorMittal South Africa Ltd, which comprise the summary consolidated statement of financial position as at 31 December 2021, the summary consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and related notes, are derived from the audited consolidated financial statements of ArcelorMittal South Africa Ltd for the year ended 31 December 2021.

In our opinion, the accompanying summary consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements of ArcelorMittal South Africa Ltd, in accordance with the requirements of the JSE Limited Listings Requirements for abridged reports, set out in note 2 to the summary consolidated financial statements, and the requirements of the Companies Act of South Africa as applicable to summary financial statements.

Other matter

We have not audited future financial performance and expectations by management included in the accompanying summary consolidated financial statements and accordingly do not express any opinion thereon.

Summary consolidated financial statements

The summary consolidated financial statements do not contain all the disclosures required by the International Financial Reporting Standards and the requirements of the Companies Act of South Africa as applicable to annual financial statements. Reading the summary consolidated financial statements and the auditor's report thereon, therefore, is not a substitute for reading the audited consolidated financial statements of ArcelorMittal

South Africa Ltd and the auditor's report thereon.

The audited consolidated financial statements and our report thereon

We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated 12 April 2022. That report also includes:

• • The communication of the key audit matter related to the valuation of property plant and equipment as reported in the auditor's report of the audited financial statements.

Directors' responsibility for the summary consolidated financial statements

The directors are responsible for the preparation of the summary consolidated financial statements in accordance with the requirements of the JSE Limited Listings Requirements for abridged reports, set out in note 2 to the summary consolidated financial statements, and the requirements of the Companies Act of South Africa as applicable to summary financial statements.

The Listings Requirements require abridged reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, and to also, as a minimum, contain the information required by IAS 34, Interim Financial Reporting.

Auditor's responsibility

Our responsibility is to express an opinion on whether the summary consolidated financial statements are consistent, in all material respects, with the consolidated audited financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), engagements to report on summary financial statements.

Deloitte & Touche

Registered auditors Per: PWM van Zijl Partner

12 April 2022

5 Magwa Crescent, Waterfall City, Gauteng, 2090

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Summarised consolidated statement of comprehensive income for the year ended 31 December 2021

2021	2020
Notes	Rm	Rm
Revenue	39 708	24 643
Raw materials and consumables used	(19 634)	(12 840)
Employee costs	(3 786)	(3 457)
Energy	(4 476)	(3 598)
Movement in inventories of finished goods and work-in-progress	2 955	(1 203)
Depreciation	(589)	(546)
Amortisation of intangible assets	(12)	(10)
Impairment of trade and other receivables	(14)	(4)
Other operating expenses	(6 179)	(3 909)
Net impairment reversal on financial assets	6	3	57
Net impairment loss on non-financial assets	7	-	(96)
Profit/(loss) from operations	8	7 976	(963)
Finance and investment income	9	165	112
Finance costs	10	(1 328)	(1 235)
Income after tax from equity-accounted investments	40	13
Fair value adjustment on investment properties	14	(228)	(118)
Reclassification of foreign currency differences on liquidation of
foreign investment	-	280
Profit/(loss) before taxation	6 625	(1 911)
Income taxation expense	11	-	(62)
Profit/(loss) for the year	6 625	(1 973)
Other comprehensive (loss)/income
Items that will not be reclassified to profit or loss:
Equity investments at FVOCI - net change in fair value (net of tax)	(5)	(29)
Revaluation of property, plant and equipment	-	30
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
(net of tax)	(1)	(36)
Share of other comprehensive income of equity-accounted
investments (net of tax)	1	3
Reclassification of foreign currency differences on liquidation of
foreign investment (net of tax)	-	(280)
Cash flow hedges - effective portion of changes in fair value
(net of tax)	-	(202)
Cash flow hedges - reclassified to profit or loss (net of tax)	-	66
Total comprehensive profit/(loss) for the year	6 620	(2 421)
Profit/(loss) attributable to:
Owners of the company	6 625	(1 973)
Total comprehensive profit/(loss) attributable to:
Owners of the company	6 620	(2 421)
- Basic	12	594	(180)
- Diluted	12	594	(180)

* Profit/(loss) from operations has been restated to include net impairment reversal/(impairment loss) as part of the JSE proactive monitoring of financial statements. Refer to note 3.1 for disclosure related to the restatement.

2

Summarised consolidated statement of financial position as at 31 December 2021

Group

2021	2020
Notes	Rm	Rm
Assets
Non-current assets
Property, plant and equipment	8 065	7 675
Investment properties	14	754	983
Intangible assets	67	72
Equity-accounted investments	227	205
Investments held by environmental trust	412	378
Non-current receivables	21	9
Other financial assets	6	11
Total non-current assets	9 552	9 333
Current assets
Inventories	12 175	7 348
Trade and other receivables	2 712	1 623
Asset held for sale	15	-	135
Other financial assets	2	30
Cash, bank balances and restricted cash	16	4 652	3 340
Total current assets	19 541	12 476
Total assets	29 093	21 809
Equity and liabilities
Equity
Stated capital	4 537	4 537
Reserves	(3 594)	(3 715)
Retained income	8 110	1 522
Total equity	9 053	2 344
Non-current liabilities
Borrowings	17	3 700	4 514
Lease obligations	60	44
Provisions	1 716	1 832
Trade and other payables	279	283
Total non-current liabilities	5 755	6 673
Current liabilities
Borrowings	17	2 210	2 450
Lease obligations	29	29
Provisions	820	770
Trade and other payables	10 059	8 420
Other financial liabilities	1 055	1 017
Taxation	112	106
Total current liabilities	14 285	12 792
Total equity and liabilities	29 093	21 809

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