ArcelorMittal South Africa : Financial results for the year ended 31 December 2022

FINANCIAL RESULTS

for the year ended 31 December 2022

Disclaimer

Forward-looking statements

This presentation includes forward-looking information and statements about ArcelorMittal South Africa and its subsidiaries that express or imply expectations of future events or results. Forward-looking statements are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements may, without limitation, be identified by words such as 'believe', 'expect', 'anticipate', 'target', 'plan', and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors not within ArcelorMittal South Africa's control or knowledge. Although ArcelorMittal South Africa's management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ArcelorMittal South Africa's securities are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ArcelorMittal South Africa, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements contained in this presentation. The risks and uncertainties include those discussed or identified in the filings with the Johannesburg Stock Exchange (the "JSE") made, or to be made, by ArcelorMittal South Africa, including ArcelorMittal South Africa's Annual Report of the year ended 31 December 2022 to be finalised and issued. Factors that could cause or contribute to differences between the actual results, performance and achievements of ArcelorMittal South Africa include, but are not limited to, political, economic and business conditions, industry trends, competition, commodity prices, changes in regulation and currency fluctuations. Accordingly, investors should not place reliance on forward looking statements contained in this presentation. The forward-looking statements in this presentation reflect information available at the time of preparing this presentation and have not been reviewed and reported on by ArcelorMittal South Africa's auditors and apply only as of the date they are made. Subject to the requirements of the applicable law, ArcelorMittal South Africa shall have no obligation and makes no undertaking to publicly update any forward-looking statements in this presentation, whether as a result of new information, future events or otherwise or to publicly release the result of any revisions to any forward-looking statements in this presentation that may occur due to any change in ArcelorMittal South Africa's expectations or to reflect events or circumstances after the date of this presentation. No statements made in this presentation regarding expectations of future profits are profit forecasts or estimates.

Contents

KEY MESSAGES AND SALIENT

01 FEATURES

Kobus Verster

OPERATIONS AND MARKET

02 REVIEW

03

04

05

Kobus Verster

FINANCIAL REVIEW AND CAPITAL ALLOCATION

Suretha van Wyk

SUSTAINABILITY AND GROWTH

Kobus Verster

CONCLUSION AND OUTLOOK

Kobus Verster

Key messages and salient features

Kobus Verster

OVERVIEW AND SALIENT FEATURES

INTERNATIONAL

• International price corrections and soft local demand, as anticipated. Spreads under pressure with global steel prices declining at a faster rate than raw materials (especially in H2)
• Energy crunch: high increase in imported coal prices (+62% in dollar terms)
• International steel prices and spreads started to improve towards end-Q4

DOMESTIC

• External factors impacted domestic activity (i.e. floods, loadshedding, transport unreliability and labour disruptions)

ARCELORMITTAL SOUTH AFRICA

• Considerable resources invested to improve safety and environmental performance
• Response to weaker trading environment:
• • Company more resilient than during previous crisis or near-crisis environments
  • Value Plan delivered R1 561 million (2021: R2 085 million)
  • Fixed costs reduced by R784 million to R6 644 million
• EBITDA down 50% at R4 274 million (2021: R8 569 million)
• Headline earnings down 62% at R2 607 million (2021: R6 860 million)
• Net borrowings position of R2 808 million (2021: R1 258 million)
• • 122% higher capital expenditure outflows of R1 912 million
  • R3 086 million (2021: R6 005 million) increase in working capital
• 13% decrease in sales volumes and a 20% drop in crude steel production
• 6% increase in realised dollar steel prices
• Raw material basket (RMB) increased by 38% (rand terms) (international RMB up 14% in rand terms)
• Decarbonisation roadmap targets a 25% reduction in carbon emissions by 2030 and 86% by 2050

EBITDA (Rm)

2022 H2		683
2022 H1			3 591
2021 H2			5 351
2021 H1			3 218
CAPEX		WORKING CAPITAL
OUTFLOW (Rm)	MOVEMENT (Rm)
2022 H2		1 219		507
2022 H1		693		2 579
2021 H2		510		4 284
2021 H1		350		1 721

HEADLINE EARNINGS (Rm)

2022 H2	-418
2022 H1			3 025
2021 H2		4 378
2021 H1		2 482

NET BORROWINGS (Rm)

2022 H2	2 808
2022 H1	1 087
2021 H2	1 258
2021 H1	2 782