| Tue 8 Feb 2011, 8:00 | | ACL - ArcelorMittal South Africa Limited - Reviewed group financial results |
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ACL
ACL
ACL - ArcelorMittal South Africa Limited - Reviewed group financial results
for the year ended 31 December 2010
ArcelorMittal South Africa Limited
Registration number: 1989/002164/06
Share code: ACL
ISIN: ZAE000134961
("ArcelorMittal South Africa", "the company" or "the group")
Reviewed group financial results for the year ended 31 December 2010
- No fatalities and LTIFR at record low levels
- Steel sales volume increased by 13%
- Headline earnings of R1 377 million up from loss of R440 million
Financial review
Attributable earnings for the year were R1 345 million, a significant
improvement from the comparable loss of R478 million in 2009. Headline
earnings per share increased from a loss of 104 cents per share reported in
2009 to a profit of 343 cents per share in 2010.
An operating profit of R2 151 million was recorded compared to R229 million in
the previous year. The sharp increase was driven by 13% higher sales volumes
to 5 million tonnes and an improved contribution from the company`s Coke and
Chemicals business. Average net realised prices in Rand terms increased by 3%
compared to the previous year. On average, the Rand strengthened 13% against
the US Dollar (R7.34 in 2010 compared to R8.44 in 2009) negatively impacting
revenue and the revaluation of the company`s Dollar-based cash and
receivables.
The cash cost of steel sales on a Rand-per-tonne basis decreased by 2.5% over
2009. Imported coking coal prices decreased year on year as a result of the
late completion of contractual off-take volumes at pre-crisis pricing levels
during 2009. The impact of the stronger Rand on imported material and the
increase in production volumes of equivalent hot rolled coil of 13% further
contributed to the lower cost per tonne. However, this was partly offset by a
significant increase in the price of iron ore, imported iron ore pellets, non-
coking coals, zinc, tin and ferro-alloys. Sishen iron ore prices were 119%
higher compared to 2009 largely because of the contractual dispute with Kumba
Iron Ore Limited ("Kumba") over the supply of iron ore and the subsequent
conclusion of an interim agreement at a higher price than "cost plus 3%".
Following the headline loss of R427 million for the six-month period July to
December 2010, no final dividend for the year has been declared. An interim
dividend of 150 cents per share was paid in September 2010.
Quarterly headline earnings/(loss) (unaudited)
Quarter to Rm US$m Exchange
rate
March 2009 (237) (24) 9.96
June 2009 (607) (72) 8.48
Average (422) (48) 9.22
September 2009 (65) (8) 7.81
December 2009 469 63 7.49
Average 202 28 7.65
March 2010 748 99 7.52
June 2010 1 056 140 7.55
Average 902 120 7.54
September 2010 68 9 7.33
December 2010 (495) (71) 6.96
Average (214) (31) 7.15
The headline loss of R495 million for the fourth quarter 2010 is well below
the quarterly headline earnings of R68 million for the third quarter 2010 and
significantly lower than the headline earnings of R469 million achieved in the
corresponding period the previous year.
Domestic sales volumes for the quarter decreased by 22% compared to the
previous quarter and by 21% compared to the corresponding quarter in 2009. The
significant decrease can be attributed to softer market demand due to a delay
in the roll-out of infrastructural development projects and the strong Rand
impeding the competitiveness of the manufacturing segment. An additional
factor was the surge in steel imports during quarter three following
uncertainty caused by the dispute with Kumba.
Average net realised prices achieved in the fourth quarter 2010 were 11% lower
than the previous quarter and 2% lower than the corresponding quarter in 2009.
Market review
International market
Real demand for flat products in the US remained lacklustre during 2010, but a
short-term surge was evident due to restocking. Many European Union economies
are in serious difficulties and consumption is unlikely to rise to any great
extent. European demand for long products has been poor in 2010 as the
construction industry continues to languish.
Prices for most products in China have also remained stable after rising
earlier due to production constraints imposed by the Chinese government in
order to conserve energy. Chinese domestic demand has remained firm since
quarter three 2010, and seasonal effects maintained a steady demand for the
rest of quarter four 2010. Demand in the rest of the Asian region has been
steady.
Demand for both flat and long steel products in Africa remained steady
throughout quarter four 2010. Demand for flat products dropped somewhat in the
Indian Ocean islands, while trading conditions in the long products market
remained normal.
Domestic market
The latest GDP figures show that notwithstanding the slow-down in overall
economic growth in quarter three 2010 to 2.6% from 2.8% in quarter two, the
momentum of consumer spending picked up, presumably because of the effect of
lower interest rates. However investment spending slowed, especially in the
public sector. The further strengthening of the Rand against the US Dollar in
recent months has exacerbated the lack of competitiveness of South Africa`s
export industries and the ability of domestic industry to compete with
imports. As interest rates are expected to remain at current low levels, the
South African economy is forecast to grow by at least 3% in 2011, up slightly
from last year`s anticipated 2.9%.
Operational review
Flat Carbon Steel Products
Operating profit of R347 million was 157% higher than the previous year,
mainly due to a 17% increase in total sales volumes from 2.9 million tonnes in
2009 to 3.3 million tonnes in 2010. Export sales volumes increased by 30%
while domestic sales volumes were up 12% over 2009. Sales prices were on
average 1% higher in Rand terms than the prices achieved in 2009. Liquid steel
production of 3.8 million tonnes increased by 11% over the previous year. The
production cash cost of hot rolled coil increased by 4% compared to 2009.
During November 2010 the company temporarily shut down Blast Furnace C at
Vanderbijlpark Works due to weak demand. Unfortunately, Blast Furnace D at
Vanderbijlpark Works experienced cold conditions during December 2010 and as a
result, Blast Furnace C was restarted earlier than planned. Production on the
electric arc furnaces was also increased. Through these actions and the
management of inventory on hand, sales were not affected. Blast Furnace D was
operating normally by the end of December and all furnaces at Vanderbijlpark
Works are now fully operational. Capacity utilisation increased to 67% from
61% at the end of 2009.
Long Carbon Steel Products
Operating profit increased by 162% to R826 million compared to the previous
year. This was due to a 6% increase in average sales prices in Rand terms
compared to 2009. Total sales volumes increased by 5% over the previous year
to 1.7 million tonnes, with an 8% increase in domestic sales volumes and a 1%
decrease in export sales volumes. Liquid steel production decreased by 1% to
1.9 million tonnes compared to 2009. The production cash cost of billets
increased by 5% compared to 2009.
After a planned stop in December 2010, Blast Furnace N5 at Newcastle Works
experienced unstable conditions, delaying the start-up by five weeks. During
the second half of January 2011, production normalised and the furnace is now
stable. Several actions were taken to minimise the impact on customers,
including stock reduction, transferring steel from Vanderbijlpark Works to
Newcastle Works and increasing production at Vereeniging Works. Capacity
utilisation decreased to 81% from 82% at the end of 2009.
Coke and Chemicals
Operating profit of R985 million increased by 119% from R449 million in 2009.
This is mainly due to a 45% increase in sales volumes of market coke from 433
000 tonnes in 2009 to 630 000 tonnes in 2010. Sales prices for market coke
increased by 7% compared to 2009.
Safety
2010 has been a watershed year for ArcelorMittal South Africa. The group`s
stated vision is to eliminate all fatalities and injuries across its
operations. In 2010, for the first time in its history, ArcelorMittal South
Africa achieved the goal of zero work related fatalities. Moreover,
ArcelorMittal South Africa`s lost time injury frequency rate (LTIFR) of 1.6 is
a record and it is the first time that this indicator was below 2. The LTIFR
was 2.6 for 2009.
Environment
The company has spent R1 070 million over the past five years in its aim to
reach compliance with environmental laws.
The most significant project for the year was the completion of the new waste
disposal site at Vanderbijlpark Works in December 2010. All waste will now be
disposed of on this site, which complies with all legal requirements.
The most important projects the company is pursuing at the moment are:
-?Installation of a new emission abatement system for the Sinter Plant at
Vanderbijlpark Works is scheduled for completion in the current quarter.
Particulate emissions from the plant will be reduced by more than 70%.
-?Installation of a new desulphurisation plant at Newcastle Works is due for
completion during 2011. This project will assist in alleviating visible roof
emissions from the Basic Oxygen Furnace Melt Shop.
- The project work on the zero effluent discharge plant at Newcastle Works is
ongoing and implementation is due in 2013.
Significant investment will be required at the company`s coke production
facilities to ensure compliance with the new Air Quality Act promulgated on 31
March 2010. Work has started and various alternatives are being investigated
to integrate compliance requirement with long term scope and energy needs. The
Carbon Tax Discussion Paper that was published on 13 December 2010 could have
a significant impact on the company`s performance. The company is engaged with
other groups in the industry and will submit its comments on this paper to
government.
Capital projects
During 2010 significant capital investments were made in environmental,
information management systems and process optimisation projects.
Environmental compliance will remain a focus area while maintenance, energy
generation and other projects in support of the organisation`s strategy will
consume significant capital funds in 2011. The current business improvement
programme will continue and capital funds will also be allocated towards this
initiative.
Contingent liabilities
The case brought before the Competition Tribunal ("the Tribunal") by Barnes
Fencing Industries Limited relating to alleged price and exclusionary conduct
on the sale of low-carbon wire-rod products is continuing in accordance with
the Tribunal procedures. A date for the hearing has not been set.
The Competition Commission ("the Commission") has referred the company and
three other primary steel producers in South Africa to the Tribunal for
alleged price fixing and market division in respect of certain long steel
products. The Commission has recommended the imposition of a financial penalty
of 10% of the company`s 2008 annual turnover. On 3 September 2010, the
Tribunal refused access to the bulk of documentation requested by
ArcelorMittal South Africa. The company then filed a notice of appeal and an
application to review the Tribunal`s decision with the Competition Appeal
Court. The company also filed an application to suspend the Tribunal`s order
that the company should file its answering affidavit, pending the outcome of
the appeal.
Competition Commission investigations
The Commission is formally investigating a further four cases against
ArcelorMittal South Africa. The first involves alleged price fixing in the
flat steel market and the second alleged prohibited pricing behaviour in the
tinplate market. The third investigation involves alleged prohibited vertical
practices in respect of purchases of scrap steel. The fourth investigation
appears to involve an extension of the Barnes Fencing Industries Limited case
described above, into a later period. The company is co-operating fully with
the Commission in these investigations and delivered all the requested
documentation to the Commission. None of these have been referred by the
Commission to the Tribunal.
Dispute with Sishen Iron Ore Company (Proprietary) Limited ("SIOC")
The preparation for the arbitration proceedings is in progress and no date for
a hearing has been set.
Broad-based black economic empowerment transaction
The cautionary relating to the B-BBEE transaction was renewed in an
announcement issued on SENS on 19 January 2011. The satisfaction of conditions
precedent remains outstanding. A further announcement will be made in due
course.
AcquisitionThe satisfaction of the conditions precedent to the acquisition of
the shares of Imperial Crown Trading 289 (Pty) Ltd ("ICT") as announced on
SENS on, is outstanding. The due diligence process is currently in progress.
Changes to the board of directors
The following appointments and resignations occurred during the financial
year:
- Mr. MJN Njeke was appointed as permanent Chairman of the Board with effect
from 4 February 2010. He was acting Chairman of the Board since 4 December
2009;
- Mr M Macdonald was appointed as an Independent Non-executive Director on 4
February 2010 and as Chairman of the Audit and Risk Committee on 9 July 2010;
- Mr EK Diack resigned as Independent Non-executive Director and Chairman of
the Audit and Risk Committee on 9 July 2010;
- Mr HJ Verster resigned as Chief Financial Officer ("CFO") and Executive
Director on 23 August 2010;
- Mr RH Torlage was appointed as Acting Interim CFO on 23 August 2010 and
appointed as CFO and Executive Director on 3 September 2010; and
- Ms ND Orleyn was appointed as Acting Member of the Audit and Risk Committee
on 9 September 2010.
Outlook for quarter one 2011
With the expected increase in demand for steel and higher international steel
prices, a significant turnaround in earnings is anticipated for the first
quarter 2011 compared to the loss for the last quarter of 2010. This will be
partially offset by an increase in some raw material prices, mainly scrap.
Changes in the Rand/US Dollar exchange rate will have an important impact on
earnings.
On behalf of the board
N Nyembezi-Heita (Chief Executive Officer)
RH Torlage (Chief Financial Officer)
3 February 2011
Condensed group statement of comprehensive income
Year ended 31 December
2010 2009
Reviewed Audited
Rm Rm
Revenue 30 224 25 598
Raw materials and consumables used (17 027) (14 003)
Employee costs (2 951) (2 640)
Energy (2 419) (2 062)
Movement in inventories of finished goods 744 (1 296)
and work in progress
Impairment charge (Note 2) (26)
Depreciation (1 360) (1 279)
Amortisation of intangible assets (11) (13)
Other operating expenses (5 049) (4 050)
Profit from operations 2 151 229
Finance and investment income 71 202
Finance costs (Note 3) (507) (1 089)
Impairment reversal (Note 4) 9
Income after tax from equity accounted 122 206
investments
Profit/(loss) before tax (Note 5) 1 837 (443)
Income tax expense (Note 6) (492) (35)
Profit/(loss) for the year 1 345 (478)
Other comprehensive income
Exchange differences on translation of foreign (200) (380)
operations
Gains on available-for-sale investments 29 37
taken to equity
Movement in gains deferred from equity on cash 8 158
flow hedges
Share of other comprehensive income of equity 75 135
accounted investments
Tax effect on amounts taken directly to equity (2) (40)
Total comprehensive income/(loss) for the year 1 255 (568)
Profit/(loss) attributable to:
Owners of the company 1 345 (478)
Total comprehensive income/(loss) attributable
to:
Owners of the company 1 255 (568)
Attributable earnings/(loss) per share (cents)
-?basic 335 (113)
-?diluted 335 (113)
Condensed group statement of financial position
As at 31 December
2010 2009
Reviewed Audited
Rm Rm
Assets
Non-current assets 19 110 18 490
Property, plant and equipment 16 432 15 862
Intangible assets 84 72
Equity accounted investments (Note 7) 2 386 2 369
Other financial assets 208 187
Current assets 12 608 12 294
Inventories 7 156 5 767
Trade and other receivables 1 816 2 096
Taxation 18
Other financial assets 112 83
Cash and cash equivalents 3 506 4 348
Total assets 31 718 30 784
Equity and liabilities
Shareholders` equity 22 556 21 925
Stated capital 37 37
Reserves (2 475) (2 344)
Retained income 24 994 24 232
Non-current liabilities 4 592 4 632
Borrowings and other payables (Note 8) 224 220
Finance lease obligations 515 557
Deferred income tax liability 2 354 2 435
Provision for post-retirement medical costs 8 8
Non-current provisions 1 491 1 412
Current liabilities 4 570 4 227
Trade and other payables 4 020 3 496
Borrowings and other payables (Note 8) 88 153
Finance lease obligations 59 57
Taxation 8
Other financial liabilities 3
Current provisions 403 510
Total equity and liabilities 31 718 30 784
Condensed group statement of cash flows
Year ended 31 December
2010 2009
Reviewed Audited
Rm Rm
Cash inflow from operating activities 1 462 1 693
Cash generated from operations 2 791 4 706
Finance income 69 199
Finance costs (85) (122)
Dividend paid (602) (1 627)
Income tax paid (653) (934)
Realised foreign exchange movement (58) (529)
Cash outflow from investing activities (1 706) (1 347)
Investment to maintain operations (1 259) (784)
Investment to expand operations (455) (130)
Investment in equity accounted investments (120) (524)
Investment income - interest 2 3
Dividend from equity accounted investments 126 88
Cash outflow from financing activities (499) (4 075)
Repurchase of shares (3 918)
Repayment of borrowings, other payables and (499) (157)
finance lease obligations
Decrease in cash and cash equivalents (743) (3 729)
Effect of foreign exchange rate changes (99) (352)
Cash and cash equivalents at beginning of year 4 348 8 429
Cash and cash equivalents at end of year 3 506 4 348
Condensed group statement of changes in equity
Reserves
Stated Treasury Manage- Share- Attribu-
capital share ment based table
Rm equity share payment reserves
reserve trust reserve of
Rm Rm Rm equity
accounted
invest-
ments
Rm
Balance at 1 January 2009 37 (207) 95 1 137
(audited)
Total comprehensive loss for
the year (net of income tax)
Management share trust: net (12)
treasury share purchases
Share-based payment expense 55
Repurchase of shares (3 918)
Dividend
Transfer of equity accounted 118
earnings
Balance at 31 December 2009 37 (3 918) (219) 150 1 255
(audited)
Total comprehensive income
for the year (net of income
tax)
Management share trust: net (54)
treasury share purchases
Share-based payment expense 32
Dividend
Transfer of equity accounted (19)
earnings
Balance at 31 December 2010 37 (3 918) (273) 182 1 236
(reviewed)
* R135 million relates to equity accounted investments
** R75 million relates to equity accounted investments
Condensed group statement of changes in equity (continued)
Reserves
Other Cash Retained Total
reserves flow income Share-
Rm hedge Rm holders`
account- equity
ing Rm
Rm
Balance at 1 January 2009 (audited) 598 (120) 26 455 27 995
Total comprehensive loss for the year *(204) 114 (478) (568)
(net of income tax)
Management share trust: net treasury (12)
share purchases
Share-based payment expense 55
Repurchase of shares (3 918)
Dividend (1 627) (1 627)
Transfer of equity accounted earnings (118)
Balance at 31 December 2009 (audited) 394 (6) 24 232 21 925
Total comprehensive income for the **(96) 6 1 345 1 255
year (net of income tax)
Management share trust: net treasury (54)
share purchases
Share-based payment expense 32
Dividend (602) (602)
Transfer of equity accounted earnings 19
Balance at 31 December 2010 298 24 994 22 556
(reviewed)
* R135 million relates to equity accounted investments
** R75 million relates to equity accounted investments
Segment information
Segment revenue
Year ended 31 December
2010 2009
Reviewed Audited
Rm Rm
Flat Carbon Steel Products
-?external sales 18 848 15 889
-?inter-segment sales 586 403
Long Carbon Steel Products
-?external sales 8 976 8 112
-?inter-segment sales 793 419
Coke and Chemicals
-?external sales 2 400 1 597
-?inter-segment sales 49 56
Adjustments and eliminations (1 428) (878)
Total revenue 30 224 25 598
Distributed as:
-?Local 23 185 20 344
-?Export
?Africa 4 439 3 508
?Europe 68 108
?Asia 2 080 1 554
?Other 452 84
All of the segment revenue reported above
is from external customers.
Segment profit from operations
Year ended 31 December
2010 2009
Reviewed Audited
Rm Rm
Operating profit/(loss) before depreciation,
amortisation and impairment
- Flat Carbon Steel Products 1 442 381
- Long Carbon Steel Products 1 090 591
- Coke and Chemicals 1 029 556
- Corporate and Other (39) 19
Depreciation and amortisation
- Flat Carbon Steel Products (1 095) (995)
- Long Carbon Steel Products (264) (250)
- Coke and Chemicals (44) (107)
- Corporate and Other 32 60
Impairment charge
- Long Carbon Steel Products (26)
Profit/(loss) from operations
- Flat Carbon Steel Products 347 (614)
- Long Carbon Steel Products 826 315
- Coke and Chemicals 985 449
- Corporate and Other (7) 79
Profit from operations 2 151 229
Segment assets
Year ended 31 December
2010 2009
Reviewed Audited
Rm Rm
Flat Carbon Steel Products 19 177 18 430
Long Carbon Steel Products 5 277 4 530
Coke and Chemicals 1 079 887
Corporate and Other 6 185 6 937
Total assets 31 718 30 784
Salient features
Year ended 31 December
2010 2009
Reviewed Audited
Rm Rm
Reconciliation of earnings before interest,
taxation, depreciation and amortisation (EBITDA)
Profit from operations 2 151 229
Adjusted for:
-?impairment charge 26
-?depreciation 1 360 1 279
-?amortisation of intangible assets 11 13
EBITDA 3 522 1 547
Reconciliation of headline earnings/(loss)
Profit/(loss)for the year
Adjusted for: 1 345 (478)
-?loss on disposal or scrapping of assets 44 29
-?impairment charge 26
-?impairment reversal (9)
-?tax effect (12) (8)
Headline earnings/(loss) 1 377 (440)
Headline earnings/(loss) per share (cents)
-?basic 343 (104)
-?diluted 343 (104)
Selected ratios (%)
EBITDA margin 11.7 6.0
Return on ordinary shareholders` equity per annum
-?attributable earnings 6.0 (1.9)
-?headline earnings 6.2 (1.8)
Net cash to equity 14.2 18.1
Share statistics
Ordinary shares (thousands)
-?in issue 401 202 401 202
-?weighted average number of shares 401 202 423 050
-?diluted weighted average number of shares 401 532 423 684
Share price (closing) (Rand) 79.22 103.00
Market capitalisation (Rand million) 31 783 41 324
Net asset value per share (Rand) 56.22 54.65
Dividend per share (cents)
-?interim 150
Unaudited supplementary physical information (`000 tonnes)
Year ended 31 December
2010 2009
Flat Carbon Steel Products
Liquid steel production 3 814 3 428
Sales 3 348 2 858
Long Carbon Steel Products
Liquid steel production 1 860 1 879
Sales 1 693 1 615
Total
Liquid steel production 5 674 5 307
Sales 5 041 4 473
-?local 3 414 3 072
-?export 1 627 1 401
Local sales as percentage of total sales 68 69
Notes to the reviewed financial statements
1. Basis of preparation
The condensed reviewed consolidated financial statements have been
prepared in compliance with the Listings Requirements of the JSE
Limited and the recognition and measurement criteria of
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board ("IASB"), the AC500
Standard as issued by the Accounting Practices Board and Schedule 4
of the South African Companies Act, 1973, as amended.
These condensed reviewed group financial results for the year ended
31 December 2010 have been prepared on the historical cost basis,
except for the revaluation of financial instruments.
The group has adopted all of the new and revised standards and
interpretations issued by the IASB and the International Financial
Reporting Interpretations Committee ("IFRIC") of the IASB that are
relevant to its operations and effective for accounting periods
beginning on 1 January 2010.
The accounting policies and methods of computation applied in the
presentation of the financial results of the group are consistent
with those applied for the year ended 31 December 2009, except for
the adoption of the following amendments and interpretations in
advance of their effective date with no impact on the group`s
financial results or disclosures:
-?IFRS7 (Amendment), Financial Instruments: Disclosures - Enhanced
Derecognition Disclosure Requirements (effective for annual periods
beginning on or after 1 July 2011);
-?IFRIC14 (Amendment), IAS 19 - The Limit on a Defined Benefit
Asset, Minimum Funding Requirement and their Interactions -
Prepayments of a Minimum Funding Requirement (effective for annual
period beginning on or after 1 January 2011).
Year ended 31 December
2010 2009
Reviewed Audited
Rm Rm
2. Impairment charge
An impairment charge has been recognised 26
against the carrying amount of the
Maputo Works following the closure of the
plant
3. Finance costs 507 1 089
Interest expense on bank overdrafts and 8 43
loans
Interest expense on finance lease 77 79
obligations
Discounting rate adjustment of the non- 100 (49)
current provisions
Net foreign exchange losses on financing 150 813
activities
Unwinding of the discounting effect in the 172 203
present valued carrying amount of the non-
current provisions
4. Impairment reversal
An impairment against the investment in 9
jointly controlled entity, Pietersburg Iron
?
Company (Proprietary) Limited, has been
reversed, based on mining feasibility
studies being conducted within that company
5. Profit/(loss) before taxation is arrived at
after
Directors` remuneration
-?executive 7 18
-?non-executive 3 2
Auditors` remuneration
-?audit fees 10 9
-?other services and expenses 1 2
6. Income tax expense 492 35
Current normal and deferred tax expense 476 (131)
Normal and deferred tax expense recognised (44) 8
in relation to tax of prior years
Secondary tax on companies 60 158
7. Equity accounted investments
Directors` valuation of equity accounted 2 711 2 783
investments
8. Borrowings and other payables
Cash-settled share-based payment 32
Leave pay 282 300
Loan 30 41
Total 312 373
Disclosed as:
-?non-current 224 220
-?current 88 153
9. Capital expenditure
Incurred 1 714 914
Contracted 641 560
Authorised but not contracted 1 045 972
10. Contingent liabilities
Guarantees 1 4
11. Operating lease commitments 313 51
Less than one year 148 35
More than one year and less than five years 161 16
More than five years 4
12. Related party transactions
The group is controlled by ArcelorMittal Holdings AG which
effectively owns 52.02% of the company`s shares. During the year
the company and its subsidiaries, in the ordinary course of
business, entered into various sale and purchase transactions with
associates and joint ventures. These transactions occurred under
terms that are no less favourable than those arranged with third
parties.
13. Directors` share option benefits
Rights to options and shares held by Executive Directors in terms
of the Management Share Scheme totalled 317 397 at 31 December 2010
(December 2009: 400 791), representing 0.1% (December 2009: 0,1%)
of the issued shares.
14. Corporate governance
The group subscribes to the Code of Corporate Practices and Conduct
as contained in the second King Report on corporate governance and
are taking the necessary steps to implement the principles as
outlined in the third King Report.
15. Review by external auditors
The group financial results have been reviewed by Deloitte & Touche
whose unmodified review opinion is available for inspection at the
company`s registered office.
Forward-looking statements
Certain 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 known and unknown risks and uncertainties and can be
affected by other factors, that could cause actual results and company plans
and objectives to differ materially from those expressed or implied in the
forward-looking statements (or from past results).
Registered ArcelorMittal South Africa Limited, Room N3-5,
Office: Main Building, Delfos Boulevard, Vanderbijlpark, 1911
Directors: Non-executive: MJN Njeke* (Chairman), DK Chugh,
CPD Cornier#, M Macdonald*, S Maheshwari, LP Mondi,
DCG Murray*, ND Orleyn*, AMHO Poupart-Lafarge#
Executive: N Nyembezi-Heita (Chief Executive Officer),
RH Torlage (Chief Financial Officer)
Citizen of India?#Citizen of France?
*Independent non-executive
Company Premium Corporate Consulting Services (Proprietary) Limited
Secretary:
Sponsor: Deutsche Securities (SA) (Proprietary) Limited,
87 Maude Street, Sandton, 2146
Private Bag X9933, Sandton, 2146
Transfer Computershare Investor Services (Proprietary) Limited,
Secretaries: 70 Marshall Street, Johannesburg, 2001 PO Box 61051,
Marshalltown, Johannesburg, 2107
This report is available on ArcelorMittal South Africa`s Web site 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
Vanderbijlpark
8 February 2011
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 08/02/2011 08:00:03 Produced by the JSE SENS Department.
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