Wrap Text
Unaudited group financial results for the quarter ended 30 September 2013
ArcelorMittal South Africa Limited
(ArcelorMittal South Africa, the company or the group)
Registration number: 1989/002164/06
Share code: ACL
ISIN: ZAE 000134961
Unaudited group financial results for the quarter ended 30 September 2013
- Rise in headline earnings to 50 cents a share
- Positive cash position
- Good safety performance
OVERVIEW
Trading conditions continued to be challenging for steel producers globally. Although there was no firm trend emerging
over the past quarter, there were hopeful signs of some stabilisation in Europe. China managed to achieve a soft
landing, which bodes well for the global economy. International steel prices improved somewhat, tracking the upward trend in
raw material prices.
South African economic growth is below expectations with the trade balance remaining unfavourable despite the weaker
rand. More pertinently for the steel sector, slow implementation of infrastructure development projects and the low level
of fixed investment in the mining sector continued to hamper growth. Apparent steel demand was further impacted by the
high level of steel inventories from imported goods due to the major disruption at our largest production unit in the
first half. On the positive side, the softening in the rand exchange rate provided a strong underpin to our export sales.
Production was stable in all plants with liquid steel production 41 000 tonnes higher than the corresponding period
last year. However, this level of output was 92 000 tonnes lower than the previous quarter following the closure of the
electric arc furnaces. Capacity utilisation increased from 81% in the preceding three months to 83%. Total steel sales
were 1.1 million tonnes, an increase of 3% compared to the prior years corresponding quarter and 9% on the preceding
quarter. Commercial coke sales rose 23% quarter-on-quarter and a more substantial 40% year-on-year as the ferrochrome
industry resumed operations at the end of the electricity buyback programme in June.
Safety performance was pleasing, ending the quarter at a lost time injury frequency rate of 0.58. This is
significantly better than the 0.95 reported in the previous quarter but slightly down on the frequency rate of 0.52 at the
same time last year. Most importantly, August marked two years without a fatality at our sites.
Third quarter headline profit of R199 million was a substantial improvement on the R168 million headline loss reported
a year earlier and 35% higher than the preceding three months. At R581 million, earnings before interest, tax,
depreciation and amortisation was R343 million higher than the corresponding period in 2012, but R266 million lower than the
previous quarter. Higher operating costs and an unfavourable regional sales mix contributed to this decline. The results
include the net positive impact from an insurance claim of R179 million for the fire earlier in the year.
Net cash dropped to R575 million from the R1 106 million achieved in the preceding quarter, along with the
normalisation of the working capital position after the fire.
KEY STATISTICS
Quarter ended Nine months Year
ended ended
30 September 30 June 30 September 30 September 31 December
2013 2013 2012 2013 2012
Unaudited Unaudited Unaudited Unaudited Audited
8 792 8 124 7 614 Revenue (R million) 24 682 32 291
581 808 238 EBITDA (R million) 1 557 1 121
512 778 217 EBITDA/tonne (R/t) 478 243
6.6 9.9 3.1 EBITDA margin (%) 6.3 3.5
201 441 (155) Profit/(loss) from operations (R million) 434 (477)
248 135 (148) Net profit/(loss) (R million) 109 (508)
199 147 (168) Headline earnings/(loss) (R million) 77 (518)
50 37 (42) Headline earnings/(loss) per share (cents) 19 (129)
575 1 106 51 Net cash 575 874
Unaudited information
1 361 1 453 1 320 Liquid steel production (000 tonnes) 3 842 5 090
1 134 1 038 1 097 Steel sales (000 tonnes) 3 257 4 622
777 834 802 - Local 2 483 3 336
357 204 295 - Export 774 1 286
154 125 110 Commercial coke sales (000 tonnes) 363 460
83 81 66 Capacity utilisation (%) 76 66
0.58 0.95 0.52 Lost time injury frequency rate 0.66 0.61
MARKET REVIEW
International
The global economy remained weak and not yet at levels of growth needed to support a strong recovery in steel demand.
There were tentative signs of improvement in the US economy recently, mainly reflected in economic growth figures as
well as the automotive and overall manufacturing sector performance. The residential construction market is showing signs
of a steady recovery as evidenced by activity in new construction and existing home sales. Nonetheless, below-par
industrial activity and declining household consumption expenditure patterns coupled with stubbornly high unemployment levels
in the eurozone continued to depress global steel demand. Currently, this sluggish global demand combined with excess
steelmaking capacity and ongoing volatility in raw materials prices are presenting a challenge for the sustainability of
high-cost producers. However, recent indication from China shows the economy expanded 7.8% year-on-year, thus improving
from the slowdown of 7.5% in the second quarter as key growth drivers lost momentum. This latest growth rate is its
fastest pace since fourth quarter of 2012. This pick up was mainly driven by rising investment. Investment in fixed assets
grew by 20% higher than that in the first half of the year. This is positive news for the steel industry.
The sub-Saharan African region remains a growing market for the steel industry, mainly driven by opportunities from
the widely published infrastructure related projects in countries such as Nigeria, Kenya, Tanzania and Zambia, as well as
mining related investments in Mozambique.
Domestic
The South African economy has come under severe stress due in part to the global economic slowdown. GDP is now
forecast to rise 2% this year compared to the initial 3% forecast at the beginning of the year. The widening trade deficit
mainly caused by weak demand for manufactured goods in Europe, and the declining levels of production and investment in the
mining sector remained a challenge for the steel industry.
Whilst there were activities in the building sector on a small scale, the absence of large infrastructure development
and slow pace of project implementation continued to hinder recovery in domestic steel demand. The overall industrial
production trend also remained relatively weak, despite the purchasing managers index averaging 52.6 in the third
quarter, primarily due to some improvement in demand conditions for machinery and other manufactured exports destined for the
African market.
FINANCIAL REVIEW
Quarter ended 30 September 2013 compared with quarter ended 30 September 2012 (unaudited)
Revenue increased by 15% to R8.8 billion as a result of an 11% rise in average steel prices. Domestic prices increased
by 12% while exports rose 13% although this affected flat and long steel prices differently, rising 12% and 9%
respectively. Total steel shipments were up 3% on the back of a 21% increase in export shipments while domestic shipments
dropped 3%. Flat and long steel shipments increased by 3% and 4% respectively. Revenue from the Coke and Chemicals business of
R542 million was 26% higher following a 40% increase in commercial coke sales from 110 000 tonnes to 154 000 tonnes. Net realised
prices dropped 14%. Tar volumes rose 28% while prices were up 37%.
Cash costs of hot rolled coil and billets increased by 8% and 2% respectively, largely driven by a rise in energy
costs and captive iron ore. Electricity and natural gas were up 6% and 12% respectively, with local coking coal rising 16%
whereas imported hard coking coal fell 17% on a rand basis.
Operating profit increased by R356 million to a profit of R201 million. Net financing cost of R12 million for the
third quarter is R92 million lower than a year earlier mainly due to a higher discount rate adjustment of R104 million on
non-current provisions, partially offset by lower net foreign exchange profits of R9 million.
Our share of the net profit after tax from equity accounted investments of R91 million compares with a profit of
R61 million in the prior year.
Quarter ended 30 September 2013 compared with quarter ended 30 June 2013 (unaudited)
The 8% quarter-on-quarter rise in revenue was attributable to a 9% increase in total shipments. Flat product shipments
were up 15% while long products remained flat. Compared to the previous quarter, a significantly higher share of
products went to export markets, with exports up 75% while domestic dispatches decreased by 7%, reflecting sustained demand
weakness in the domestic market. Average net realised prices dropped 1% resulting from a 4% rise in domestic prices offset
by a 9% decline in export prices. Prices for both flat and long steel declined 1%. Revenue from the Coke and
Chemicals business of R542 million was 21% higher following an increase in commercial coke sales by 32% from 125 000
tonnes to 154 000 tonnes. Net realised prices dropped 14%. Tar volumes increased 33% while prices were marginally higher.
Cash costs of hot rolled coil were 6% higher with billets increasing 2%. The prime contributing factor was the steep
rise in iron ore costs from our captive mine in Thabazimbi and the winter electricity tariffs which had a larger impact
on flat product plants. There was a 4% drop in imported hard coking coal costs and 14% rise in local coking coals.
Operating profit declined by R240 million to a profit of R201 million.
Net financing costs of R12 million for the quarter were R130 million lower due to a net foreign exchange gain of
R78 million and lower additions to non-current provisions of R59 million.
Our share of the net profit after tax from equity accounted investments of R91 million compares favourably with a loss
of R66 million in the previous quarter. This relates to better results from Coal of Africa, Polokwane Iron Company and
from Macsteel International Holdings BV.
ENVIRONMENT (unaudited)
Significant progress has been made with the Newcastle zero effluent discharge project, which entails the improvement
of effluent treatment and recovery. The project is on track for completion in April 2014 within its allocated budget of
R430 million.
The Carbon Tax Discussion Paper published on 2 May 2013 by the National Treasury remains a huge concern and formal
comments were submitted to facilitate further discussions. It is difficult to accurately assess the financial impact of the
proposed tax, but current estimations indicate that it could amount to more than R600 million per annum. Very limited
opportunities exist to reduce carbon emissions in the steel production process and no feasible low carbon alternatives exist
at this stage to produce steel from iron ore. Therefore, the intention of the carbon tax to change behaviour cannot be realised
within the iron and steel industry.
CONTINGENT LIABILITIES
The Competition Commission (the Commission) has thus far referred the following five cases against the company to
the Competition Tribunal (the Tribunal) for prosecution. The company rejects the allegations made in each of these cases
and is defending itself accordingly.
1st wire rod matter - alleged price discrimination conduct
In January 2007 the Commission referred a case against the company to the Tribunal for prosecution. In the referral
papers, the Commission alleges that the company engaged in price discrimination on wire rod, in contravention of section
9(1) of the Competition Act 89 of 1998 (the Competition Act).
Pleadings on the matter closed and now awaits a hearing date before the Tribunal.
2nd wire rod matter - alleged price discrimination conduct
In November 2012 the Commission referred another case relating to alleged price discrimination on wire rod to the
Tribunal for prosecution. This case is essentially the same as the case that was referred in January 2007. The parties and
the issues are identical save for the fact that the contravention alleged in this case, is alleged to have taken place
during a later period being 2004 - 2006.
Pleadings on this matter have also closed and it similarly awaits a date for the hearing before the Tribunal. The
Commission has in the meantime applied to the Tribunal to have this matter consolidated with the January 2007 matter for
purposes of the hearing. This application is yet to be heard by the Tribunal.
Long steel matter - alleged cartel conduct
In September 2009 the Commission referred a case against the company and other primary steel manufacturers in South
Africa to the Tribunal for prosecution. In the referral papers, the Commission alleges that the company and the other
respondents fixed prices and allocated markets in respect of certain long steel products in contravention of section 4(1) of
the Competition Act. The Commission requested the Tribunal to find the company guilty of the alleged contraventions and
to impose on it an administrative penalty of 10% of the 2008 turnover.
Soon after the referral, the company wrote to the Commission requesting copies of the documents that make up the
Commissions investigation record to enable it to draft and file its answering affidavit. This request was declined by the
Commission, prompting the company to file an application with the Tribunal in December 2009, for an order compelling the
Commission to provide these documents. In September 2010 the Tribunal handed down judgment refusing the company access to
a bulk of the requested documents for reasons of privilege and confidentiality. The company subsequently appealed this
judgment to the Competition Appeal Court (the CAC). In April 2012 the CAC ruled essentially that the matter be
referred back to the Tribunal for a hearing to properly determine the validity of the privilege and confidentiality claims.
The Commission appealed this ruling to the Supreme Court of Appeal (the SCA). On 31 May 2013 the SCA handed down judgment
effectively concurring with the CAC and further ordering the Commission to pay the companys legal costs in respect of
the appeal. On the basis of the SCA decision, the company has since written to the Commission once again requesting
these documents. The Commission is yet to revert on this request.
Flat steel matter - alleged conscious parallelism
On 30 March 2012 the Commission referred a case against the company and Evraz Highveld Steel and Vanadium Limited
(Highveld Steel) to the Tribunal for prosecution. In the referral papers, the Commission alleges that the company and
Highveld Steel fixed prices and other trading conditions in respect of certain flat steel products in contravention of
section 4(1) of the Competition Act. The form of price fixing alleged by the Commission in this instance is one based on the
conscious parallelism phenomenon. This mainly relates to Highveld Steel increasing its prices each time the company
increases its prices. The Commission requested the Tribunal to find the company guilty of the alleged contravention and to
impose on it an administrative penalty of 10% of the 2008 turnover.
The company requested further documents from the Commission to enable it to draft and file its answering affidavit. A
process to make some of these documents available to both the company and Highveld Steels legal representatives, as
initially suggested by the Commission, is currently the subject of an ongoing dispute between the Commission and Highveld
Steels legal representatives.
Scrap purchase - alleged cartel conduct
On 8 August 2013 the Commission referred a case against the company and other primary steel manufacturers in South
Africa to the Tribunal for prosecution. In the referral papers, the Commission alleges that the company and the other
respondents fixed the purchase price and other trading conditions relating to scrap metal, a secondary input product in steel
making, in contravention of section 4(1) of the Competition Act. The Commission requested the Tribunal to find the
company guilty of the alleged contravention and to impose on it an administrative penalty of 10% of the 2008 turnover. The
company will submit its answering affidavit in due course.
COMPETITION COMMISSION INVESTIGATIONS
The Commission is formally investigating one further complaint against the company. This relates to alleged excessive
pricing of tinplate and flat steel in general. Joined to this investigation is an investigation into alleged excessive
pricing arising from the iron ore surcharge introduced by the company for the period May 2010 to July 2010. The company
is cooperating fully with the Commission in this investigation and continues to deliver all information and documentation
as and when called upon to do so.
DISPUTE WITH SISHEN IRON ORE COMPANY PROPRIETARY LIMITED (SIOC)
On 28 March 2013 the Supreme Court of Appeal delivered judgment in terms of which the Court effectively agreed with
the trial court that SIOC was awarded 100% of the mining rights in the Sishen mine and therefore the award to Imperial
Crown Trading 289 Proprietary Limited (ICT) was invalid. The Department of Mineral Resources and ICT subsequently lodged
an application for leave to appeal this decision with the Constitutional Court. The matter was duly heard by the Court
on 3 September 2013. The arbitration remains deferred pending the outcome of this hearing.
Kumba Iron Ore and ArcelorMittal South Africa announced the conclusion of the Settlement and Supply Agreement between
Sishen Iron Ore Company and ArcelorMittal South Africa that terminates the 2001 Thabazimbi Iron Ore supply agreement and
the 2001 Sishen Supply Agreement. The salient terms of this agreement were disclosed through an announcement published
on the JSE news service on 5 November 2013. In signing this agreement, the company will cease its involvement in
management and operational decisions relating to the mining, production or processing of iron ore at the Thabazimbi mine. The
company will write off the captive mine assets which were previously recognised in the companys statement of financial
position. The expected value of the write-off is approximately R1.8 billion.
CORPORATE GOVERNANCE (unaudited)
The group complies with all material requirements of the Code on Corporate Practices and Conduct as contained in the
third King Report on Corporate Governance.
ACQUISITIONS (unaudited)
The Northern Cape Iron Ore Project plans to commence work on the feasibility studies during the first quarter of 2014.
It is our intention to apply for mining rights towards the end of 2014.
CHANGES TO THE BOARD OF DIRECTORS
During the period two appointments and one resignation occurred:
- Appointment of Nomavuso Patience Mnxasana and Jacob Modise as independent non-executive directors effective from
1 October 2013.
- Resignation of Thandi Orleyn as independent non-executive director effective from 1 October 2013.
OUTLOOK FOR QUARTER FOUR OF 2013 (unaudited)
Domestic sales are expected to be significantly lower due to the normal seasonal slowdown and general weakness in the
domestic market. Accordingly, earnings are expected to be lower than in the preceding quarter.
On behalf of the Board of directors
N Nyembezi-Heita MJ Wellhausen
Chief Executive Officer Chief Financial Officer
30 October 2013
FORWARD-LOOKING STATEMENTS
Statements in this release that are neither reported financial results nor other historical information, are
forward-looking statements, including but not limited to statements that are predictions of or indicate future earnings,
savings, synergies, events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by
their nature, they are subject to risks and uncertainties whose impact could cause actual results and companys plans and
objectives to differ materially from those expressed or implied in the forward-looking statements (or from past results).
Any reference to future financial performance included in this announcement, has not been reviewed or reported on by the
companys auditors.
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
Nine months
Quarter ended ended Year ended
30 September 30 June 30 September 30 September 31 December
2013 2013 2012 2013 2012
Unaudited Unaudited Unaudited In millions of rand Unaudited Audited
8 792 8 124 7 614 Revenue 24 682 32 291
Raw materials and consumables
(5 342) (5 183) (4 731) used (14 847) (18 760)
(872) (892) (820) Employee costs (2 566) (3 356)
(962) (931) (932) Energy (2 556) (3 156)
Movement in inventories of
finished goods and work
260 1 167 365 in progress 929 (467)
(376) (363) (389) Depreciation (1 111) (1 582)
(4) (4) (4) Amortisation of intangible assets (12) (16)
(1 295) (1 477) (1 258) Other operating expenses (4 085) (5 431)
201 441 (155) Profit/(loss) from operations 434 (477)
59 4 Finance and investment income 75 60
(71) (142) (108) Finance costs (294) (334)
Income(loss) from equity
accounted investments
91 (66) 61 (net of tax) (57) 59
280 233 (198) Profit/(loss) before tax 158 (692)
(32) (98) 50 Income tax (expense)/credit (49) 184
248 135 (148) Profit/(loss) for the period 109 (508)
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on
199 128 (16) translation of foreign operations 478 62
Gains/(losses) on available-for-
(13) 11 (9) sale investment taken to equity (8) (32)
Share of other comprehensive
income/(loss) of equity
(64) 25 (6) accounted investments (2) 34
Total comprehensive income/
370 299 (179) (loss) for the period 577 (444)
Profit/(loss) attributable to:
248 135 (148) Owners of the company 109 (508)
Total comprehensive income/
(loss) attributable to:
370 299 (179) Owners of the company 577 (444)
Attributable earnings/(loss)
per share (cents)
62 34 (37) - basic 27 (127)
ADDITIONAL INFORMATION
Nine months
Quarter ended ended Year ended
30 September 30 June 30 September 30 September 31 December
2013 2013 2012 2013 2012
Unaudited Unaudited Unaudited In millions of rand Unaudited Audited
Reconciliation of earnings
before interest, taxation,
depreciation and
amortisation (EBITDA)
201 441 (155) Profit/(loss) from operations 434 (477)
Adjusted for:
376 363 389 - Depreciation 1 111 1 582
- Amortisation of intangible
4 4 4 assets 12 16
581 808 238 EBITDA 1 557 1 121
Reconciliation of headline
(loss)/earnings
248 135 (148) Profit/(loss) for the period 109 (508)
Adjusted for:
- (Profit)/loss on disposal
(68) 17 (18) of assets (44) (4)
19 (5) (2) - Tax effect 12 (6)
199 147 (168) Headline earnings/(loss) 77 (518)
Headline earnings/(loss) per
share (cents)
50 37 (42) - basic 19 (129)
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
As at As at As at As at
30 September 30 June 30 September 31 December
2013 2013 2012 2012
In millions of rand Unaudited Reviewed Unaudited Audited
Assets
Non-current assets 19 832 19 765 19 323 19 419
Property, plant and equipment 16 021 16 177 16 017 16 068
Intangible assets 122 125 117 121
Equity accounted investments 3 665 3 432 3 165 3 204
Other financial assets 24 31 24 26
Current assets 13 524 14 898 12 629 11 479
Inventories 9 807 9 583 9 038 8 761
Trade and other receivables 3 026 3 311 3 282 1 669
Taxation 104 139 11 154
Other financial assets 12 14 11
Cash and cash equivalents 575 1 865 284 884
Total assets 33 356 34 663 31 952 30 898
Equity and Liabilities
Shareholders equity 22 833 22 458 22 605 22 242
Stated capital 37 37 37 37
Non-distributable reserves (1 752) (1 970) (2 137) (2 178)
Retained income 24 548 24 391 24 705 24 383
Non-current liabilities 4 056 4 037 4 450 4 091
Borrowings and other payables 274 255 259 270
Finance lease obligations 536 539 464 426
Deferred income tax liability 1 898 1 848 2 166 2 031
Provision for post-retirement medical costs 8 9 7 9
Non-current provisions 1 340 1 386 1 554 1 355
Current liabilities 6 467 8 168 4 897 4 565
Trade and other payables 5 800 6 710 4 186 3 922
Borrowings and other payables 155 899 155 157
Other financial liabilities 3
Finance lease obligations 83 90 53 77
Taxation 107 144 97
Current provisions 322 322 280 312
Bank Overdraft 223
Total equity and liabilities 33 356 34 663 31 952 30 898
CONDENSED GROUP STATEMENT OF cash flows
Nine months
Quarter ended ended Year ended
30 September 30 June 30 September 30 September 31 December
2013 2013 2012 2013 2012
Unaudited Unaudited Unaudited In millions of rand Unaudited Audited
Cash (outflows)/inflows
(310) 436 (146) from operating activities 718 1 776
(211) 690 (97) Cash generated from operations 1 074 2 022
1 2 3 Interest income 5 10
(50) (33) (36) Finance cost (113) (170)
26 (147) Income tax received/(paid) (122) (52)
Realised foreign exchange
(76) (76) (16) movement (126) (34)
Cash outflows from
(248) (366) (284) investing activities (885) (1 125)
Investment to maintain
(234) (353) (194) operations (808) (809)
(10) (10) (21) Investment to expand operations (38) (66)
Shares acquired in associate and
(6) (4) (71) equity accounted investment (44) (369)
Proceeds from disposal
1 of assets 1 29
2 1 1 Investment income - interest 4 3
Dividend from equity 87
accounted investments
Cash outflows/(inflows)
(748) 639 (77) from financing activities (212) (231)
(Increase)/repayment of
borrowings, finance lease
(748) 639 (77) obligations and other payables (212) (231)
(Decrease)/increase in cash
(1 306) 709 (507) and cash equivalents (379) 420
Effect of foreign exchange
16 42 18 rate changes 70 25
Cash and cash equivalents at
1 865 1 114 550 beginning of period 884 439
Cash and cash equivalents at
575 1 865 61 end of period 575 884
NOTE TO THE unaudited CONDENSED GROUP FINANCIAL INFORMATION
1. Basis of preparation
The unaudited consolidated condensed interim financial statements have been prepared in compliance with the Listings
Requirements of the JSE Limited, International Accounting Standard (IAS) 34, Interim Financial Reporting and the South
African Companies Act, No. 71 of 2008, as well as the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee. These statements were compiled under the supervision of Mr MJ Wellhausen, the Chief Financial
Officer.
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
Treasury Total
Stated share equity Other Retained shareholders
In millions of rand capital reserve reserves income equity
Quarter ended 30 September 2012
Balance at 30 June 2012 37 (3 918) 1 749 24 914 22 782
Total comprehensive income for the period
(net of income tax) (31) (148) (179)
Share-based payment expense 2 2
Transfer of equity accounted earnings 61 (61)
Balance at 30 September 2012 (Unaudited) 37 (3 918) 1 781 24 705 22 605
Quarter ended 30 June 2013
Balance at 30 March 2013 37 (3 918) 1 846 24 190 22 155
Total comprehensive income/(loss) for the 164 135 299
period (net of income tax)
Share-based payment expense 4 4
Transfer of equity accounted earnings (66) 66
Balance at 30 June 2013 (Unaudited) 37 (3 918) 1 948 24 391 22 458
Quarter ended 30 September 2013
Balance at 30 June 2013 37 (3 918) 1 948 24 391 22 458
Total comprehensive income for the period
(net of income tax) 122 248 370
Share-based payment expense 5 5
Transfer of equity accounted earnings 91 (91)
Balance at 30 September 2013 (Unaudited) 37 (3 918) 2 166 24 548 22 833
SEGMENT INFORMATION
Nine months
Quarter ended ended Year ended
30 September 30 June 30 September 30 September 31 December
2013 2013 2012 2013 2012
Unaudited Unaudited Unaudited In millions of rand Unaudited Audited
Flat Steel Products
5 617 5 115 4 996 Revenue (R million) 15 661 20 991
5 483 4 848 4 732 - External 15 066 20 192
134 267 264 - Internal 595 799
316 290 11 EBITDA (R million) 291 (266)
Depreciation and amortisation
(303) (292) (316) (R million) (901) (1 294)
Profit/(loss) from operations
13 (2) (305) (R million) (610) (1 560)
20 902 21 288 21 050 Assets (R million) 20 902 19 713
8 586 9 363 7 975 Liabilities (R million) 8 586 7 662
Unaudited information
Liquid steel production
879 970 958 (000 tonnes) 2 414 3 554
756 659 733 Steel sales (000 tonnes) 2 117 3 138
499 538 550 - Local 1 594 2 223
257 121 183 - Export 523 915
83 79 67 Capacity utilisation (%) 73 65
Long Steel Products
3 104 3 084 2 742 Revenue (R million) 9 073 11 474
2 781 2 838 2 459 - External 8 284 10 289
323 246 283 - Internal 789 1 185
311 379 54 EBITDA (R million) 1 005 770
Depreciation and amortisation
(75) (72) (75) (R million) (217) (299)
Profit/(loss) from operations
236 307 (21) (R million) 788 471
7 518 7 148 6 202 Assets (R million) 7 518 6 142
5 191 5 194 4 468 Liabilities (R million) 5 191 4 390
Unaudited information
Liquid steel production
482 483 362 (000 tonnes) 1 428 1 536
378 379 364 Steel sales (000 tonnes) 1 140 1 484
278 296 252 - Local 889 1 113
100 83 112 - Export 251 371
83 84 63 Capacity utilisation (%) 83 67
Coke and Chemicals
542 448 429 Revenue (R million) 1 370 1 856
528 438 423 - External 1 332 1 810
14 10 6 - Internal 38 46
115 120 110 EBITDA (R million) 382 503
Depreciation and amortisation
(9) (8) (9) (R million) (26) (32)
Profit from operations
106 112 101 (R million) 356 471
1 023 1 025 1 003 Assets (R million) 1 023 1 003
1 720 1 645 1 556 Liabilities (R million) 1 720 1 580
Unaudited information
Commercial coke produced
109 119 54 (000 tonnes) 319 446
Commercial coke sales
154 125 110 (000 tonnes) 363 460
32 24 25 Tar sales (000 tonnes) 84 109
Corporate and other
Operating profit/(loss) before
depreciation and amortisation
(161) 19 6 (R million) (121) 114
Depreciation and amortisation
7 5 7 credit (R million) 21 27
(Loss)/profit from operations
(154) 24 70 (R million) (100) 141
3 913 5 202 3 697 Assets (R million) 3 913 4 040
(4 974) (3 997) (4 652) Liabilties (R million) (4 974) (4 976)
Registered office: ArcelorMittal South Africa Limited, Room N3-5, Main Building Delfos Boulevard, Vanderbijlpark, 1911
Directors: Non-executive: PM Makwana* (Chairman), DK Chugh, FA du Plessis*, S Maheshwari, J Modise*, LP Mondi,
NP Mnxasana*, DCG Murray*, GI Urquijoº
Citizen of India ºCitizen of Spain *Independent non-executive
Executive: N Nyembezi-Heita (Chief Executive Officer), MJ Wellhausen (Chief Financial Officer)#
#Citizen of Germany
7 November 2013
Vanderbijlpark
Company Secretary: Premium Corporate Consulting Services Proprietary Limited
Sponsor: Deutsche Securities (SA) Proprietary Limited, 87 Maude Street, Sandton, 2146
Private Bag X9933, Sandton, 2146
Transfer Secretaries: Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
This report is available on ArcelorMittal South Africas website at: http://www.arcelormittal.com/southafrica/ Share
queries: Please call the ArcelorMittal South Africa share care toll free on 0800 006 960 or +27 11 370 7850
Date: 07/11/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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