ArcelorMittal South Africa : Summary AFS 2022

Summary annual financial

statements

2022

Report contents

Independent auditor's report on summary consolidated financial	1
statements
Summary consolidated statement of comprehensive income	2
Summary consolidated statement of financial position	3
Summary consolidated statement of cash flows	4
of changes in equity	5
financial statements	6
	25
	27

1ArcelorMittal South Africa | Summary consolidated financial statements 2022

Independent auditor's report on summary consolidated financial statements

To the Shareholders of ArcelorMittal South Africa Limited

Report on the Summary Consolidated Financial Statements

Opinion

The summary consolidated financial statements of ArcelorMittal South Africa Limited, which comprise the summary consolidated statement of financial position as at 31 December 2022, the summary consolidated statement of comprehensive income, the summary consolidated statement of changes in equity and summary consolidated statement of cash flows for the year then ended, and related notes, are derived from the complete audited consolidated financial statements of ArcelorMittal South Africa Limited for the year ended 31 December 2022.

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 Limited, 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.

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 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 30 March 2023. That audit report also includes:

• The communication of the key audit matters related to the valuation of property, plant and equipment and environmental rehabilitation and asset retirement obligations.

The audited consolidated financial statements and the summary consolidated financial statements do not reflect the effects of events that occurred subsequent to the date our report on the audited consolidated 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, 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 audited consolidated 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.

Other matter

The summary consolidated financial statements of ArcelorMittal South Africa Limited for the year ended 31 December 2021, were audited by another auditor who expressed an unmodified audit opinion on those summary consolidated financial statements on 12 April 2022.

Ernst & Young Inc.

Director - Michiel (Mike) Christoffel Herbst Registered Auditor

Chartered Accountant (SA)

19 April 2023

102 Rivonia Road, Sandton Johannesburg

South Africa 2146

2ArcelorMittal South Africa | Summary consolidated financial statements 2022

Summary consolidated statement of comprehensive income

for the year ended 31 December 2022

		2022	2021
	Notes	Rm	Rm
Revenue		40 771	39 708
Raw materials and consumables used		(22 054)	(19 634)
Employee costs		(3 828)	(3 786)
Energy		(4 536)	(4 476)
Movement in inventories of finished goods and
work-in-progress		(260)	2 955
Depreciation		(760)	(589)
Amortisation of intangible assets		(11)	(12)
Impairment reversal/(loss) of trade and other
receivables		6	(14)
Net impairment reversal on financial assets		-	3
Other operating expenses		(5 829)	(6 179)
Profit from operations	6	3 499	7 976
Finance and investment income	7	283	165
Finance costs	8	(1 235)	(1 328)
Income after tax from equity-accounted
investments		30	40
Fair value adjustment on investment properties	12	57	(228)
Profit before taxation		2 634	6 625
Income taxation expense	9	-	-
Profit for the year		2 634	6 625
Other comprehensive income/(loss)
Items that will not be reclassified to income or
loss (net of tax):
Fair value adjustment on equity instruments		17	(5)
Items that may be reclassified subsequently to
income or loss (net of tax):
Exchange differences on translation of foreign
operations		6	(1)
Share of other comprehensive (loss)/income of
equity-accounted investments		(2)	1
Total comprehensive income for the year		2 655	6 620
Profit attributable to:
Owners of the company		2 634	6 625
Total comprehensive income attributable to:
Owners of the company		2 655	6 620
Earnings per share (cents) attributable to owners
of the company:
- Basic	10	236	594
- Diluted	10	236	594

3ArcelorMittal South Africa | Summary consolidated financial statements 2022

Summary consolidated statement of financial position

as at 31 December 2022

		2022	2021
	Notes	Rm	Rm
ASSETS
Non-current assets
Property, plant and equipment		9 570	8 065
Investment properties	12	737	754
Intangible assets		71	67
Equity-accounted investments		251	227
Investments held by environmental trust		408	412
Other receivables		10	21
Other financial assets		23	6
Total non-current assets		11 070	9 552
Current assets
Inventories		11 973	12 175
Trade and other receivables		3 486	2 712
Other financial assets		-	2
Cash, bank balances and restricted cash	13	3 392	4 652
Total current assets		18 851	19 541
Asset held-for-sale	14	80	-
Total assets		30 001	29 093
EQUITY AND LIABILITIES
Equity
Stated capital		4 537	4 537
Reserves		(3 576)	(3 594)
Retained income		10 714	8 110
Total equity		11 675	9 053
Non-current liabilities
Borrowings	15	2 700	3 700
Lease obligations		176	60
Provisions		1 784	1 716
Trade and other payables		262	279
Other financial liabilities	16	625	-
Total non-current liabilities		5 547	5 755
Current liabilities
Borrowings	15	3 500	2 210
Lease obligations		26	29
Provisions		862	820
Trade and other payables		8 184	10 059
Other financial liabilities	16	95	1 055
Taxation		112	112
Total current liabilities		12 779	14 285
Total equity and liabilities		30 001	29 093