Arcelormittal South Africa Limited · JSE:ACL
Arcelormittal South Africa — FY2024 Earnings Presentation
31 slides from Arcelormittal South Africa's earnings presentation, February 2025
Slide 1: Financial Results for the year ended 31 December 2024
FINANCIAL RESULTS for the year ended 31 December 2024
Slide 2: Forward-looking statements
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, withou
Slide 3: Contents
KEY MESSAGES AND SALIENT FEATURES 01 Kobus Verster SAFETY, ENVIRONMENT AND SOCIAL 02 Contents Tami Didiza OPERATIONS AND MARKET REVIEW 03 Kobus Verster FINANCIAL REVIEW AND CAPITAL ALLOCATION 04 Gavin Griffiths SUSTAINABILITY AND GROWTH 05 Kobus Verster CONCLUSION AND OUTLOOK 06 Kobus Verster
Slide 4: Key messages and salient features
01 Key messages and salient features Kobus Verster
Slide 5: Overview and Salient Features
KEY MESSAGES AND SALIENT FEATURES OVERVIEW AND SALIENT FEATURES • South African steel industry is facing its greatest challenge since the events of the financial crisis of 2008/09 EBITDA (Rm) FIXED COST (Rm) • International steel-to-raw material price spreads remain under pressure, and countries rus
Slide 6: Overview and Salient Features (cont.) - Longs business
KEY MESSAGES AND SALIENT FEATURES OVERVIEW AND SALIENT FEATURES (cont.) LONGS DOMESTIC MARKET AND UTILISATION LONGS BUSINESS Kt (South Africa - active capacity (2024) 4.4mt) % 3.000 2 777 90 • 6 January 2025 wind down announcement 2 622 2 749 2 521 2 473 80 SAFETY, ENVIRONMENT 2.500 2 425 2 372 2 36
Slide 7: Overview and Salient Features (cont.) - International environment
KEY MESSAGES AND SALIENT FEATURES OVERVIEW AND SALIENT FEATURES (cont.) INTERNATIONAL ENVIRONMENT INTERNATIONAL SPREAD • 2024 global growth stabilised at 2,7%1 inflation and interest rates declined gradually CHINA HRC (FOB) vs. INT. RMB ($/t) SAFETY, ENVIRONMENT • 2024 global steel production margin
Slide 8: Overview and Salient Features (cont.) - International prices
KEY MESSAGES AND SALIENT FEATURES OVERVIEW AND SALIENT FEATURES (cont.) INTERNATIONAL HRC1 AND REBAR2 ($/t) INTERNATIONAL IRON ORE ($/t) Average $723/t Average $636/t Average $115/t -8% 900 -12% 150 Average $106/t (2023) (2024) (2023) SAFETY, ENVIRONMENT (2024) Source: S&P Platts, Metal Bulletin 800
Slide 9: Safety, Environment and Social
02 Safety, Environment and Social Tami Didiza
Slide 10: Safety
KEY MESSAGES AND SALIENT FEATURES SAFETY • Safety is the Company’s highest priority as it remains committed to Zero Harm SAFETY, ENVIRONMENT, TOTAL INJURIES • It is with deep regret that we announce a fatality which occurred in the AND SOCIAL 2024: 195 second half of 2024. The Board and Management e
Slide 11: Socio Economic Footprint
KEY MESSAGES AND SALIENT FEATURES SOCIO ECONOMIC FOOTPRINT SAFETY, ENVIRONMENT, AND SOCIAL OPERATIONS AND Science centres provide educational support to less MARKET REVIEW Partnership with GetOn Foundation in the Vaal reached a year milestone in June and continues to fortunate schools in local commu
Slide 12: Operations and Market Review
02 Operations and Market Review Kobus Verster
Slide 13: Steel Environment - Global
KEY MESSAGES AND SALIENT FEATURES STEEL ENVIRONMENT - GLOBAL CRUDE STEEL PRODUCTION GLOBAL CRUDE STEEL PRODUCTION (million tonnes) • Global production down at 1 839 million tonnes1 (-0,9%) 984 SAFETY, ENVIRONMENT • China’s production down at 1 005 million tonnes, retaining a 55% 953 953 market share
Slide 14: Steel Environment – South Africa
KEY MESSAGES AND SALIENT FEATURES STEEL ENVIRONMENT – SOUTH AFRICA • South Africa’s 2024 GDP growth rate expected at 0,7%1 APPARENT STEEL CONSUMPTION (‘000 tonnes) • SADC and Sub-Saharan Africa: 3,8% SAFETY, ENVIRONMENT • Apparent Steel Consumption2 (ASC) marginally lower at 4,0 4 950 4 862 4 964 5,
Slide 15: Steel Environment – ArcelorMittal South Africa
KEY MESSAGES AND SALIENT FEATURES STEEL ENVIRONMENT – ARCELORMITTAL SOUTH AFRICA VOLUMES SALES AND PRODUCTION VOLUMES (‘000 tonnes) • 6% decrease in crude steel production to 2,6 million tonnes 1 500 • 6% decrease in sales volumes to 2,3 million tonnes 1 219 SAFETY, ENVIRONMENT 1 159 1 193 1 172 1 1
Slide 16: Operating Environment – ArcelorMittal South Africa
KEY MESSAGES AND SALIENT FEATURES OPERATING ENVIRONMENT – ARCELORMITTAL SOUTH AFRICA PLANT CAPACITY UTILISATION (%) • Capacity utilisation of 63%1 (2023: 67%) including Q2’s disruptive chilled hearth conditions at both of Flats’ blast furnaces 68% SAFETY, ENVIRONMENT 63% 66% 66% 60% AND SOCIAL FLATS
Slide 17: Financial Review and Capital Allocation
04 Financial Review and Capital Allocation Gavin Griffiths
Slide 18: Financial Results – Financial Performance
KEY MESSAGES AND SALIENT FEATURES FINANCIAL RESULTS – FINANCIAL PERFORMANCE EBITDA EVOLUTION (Rm) 368 SAFETY, ENVIRONMENT -1 872 AND SOCIAL 56 -511 1 514 -1 101 OPERATIONS AND MARKET REVIEW 156 -164 670 -252 -1 816 EBITDA Sales volume Sales price Variable cost Fixed cost Other EBITDA Blast Furnace S
Slide 19: Financial Results – Net Borrowings
KEY MESSAGES AND SALIENT FEATURES FINANCIAL RESULTS – NET BORROWINGS • Working capital lower by R3 002 million due to lower inventories of R2 094 million, lower receivables of R1 374 million and higher payables of R466 million • Free cash flow outflow of R559 million (2023: R431 million outflow) SAF
Slide 20: Capital Allocation
KEY MESSAGES AND SALIENT FEATURES CAPITAL ALLOCATION • Investment levels • Prioritised sustaining CAPEX given weak market conditions CAPITAL ALLOCATION (Rm) 2024 2023 SAFETY, ENVIRONMENT • Sustaining investments (incl. asset capacity improvements) Sustaining & Other 457 872 AND SOCIAL • Vanderbijlpa
Slide 21: Sustainability and Growth
05 Sustainability and Growth Kobus Verster
Slide 22: Strategic Initiative and Growth Opportunities
KEY MESSAGES AND SALIENT FEATURES STRATEGIC INITIATIVE AND GROWTH OPPORTUNITIES SAFETY Safety remains our number one priority and we will continue to focus on our journey to achieve zero harm We will be using the inputs from a Group wide audit to improve our focus on Potentially Serious Injuries or
Slide 23: Conclusion and Outlook
06 Conclusion and Outlook Kobus Verster
Slide 24: Outlook – H1 2025
KEY MESSAGES AND SALIENT FEATURES OUTLOOK – H1 2025 SAFETY KEY FOCUS AREAS FOR H1 2025 • Safety remains ArcelorMittal South Africa’s highest priority SAFETY, ENVIRONMENT • Advancing discussions with the South African Government AND SOCIAL • Focusing on implementing the recommendations of the Arcelor
Slide 25: Appendix
Appendix -_ ArcelorMittal
Slide 26: Headline Earnings (Rm)
HEADLINE EARNINGS (Rm) 2024 2023 Revenue per half year 2024 2023 Revenue 38 596 41 637 H1 20 506 21 045 EBITDA before impairment and exceptional items (1 816) 56 H2 18 090 20 592 Depreciation and amortisation (818) (878) Full Year 38 596 41 637 Impairment of PPE and intangible assets (682) (2 096) I
Slide 27: Statement of Financial Position (Rm)
STATEMENT OF FINANCIAL POSITION (Rm) 2024 2023 2024 2023 Non-current assets 8 862 9 459 Shareholders Equity 1 963 7 799 Property, plant and equipment 7 373 7 974 Stated capital 4 537 4 537 Investment properties 690 702 Non-distributable Reserves (3 448) (3 515) Intangible assets 58 62 Retained earni
Slide 28: Cash Flow (Rm)
CASH FLOW (Rm) 2024 2023 Movement in working capital * 2024 2023 Cash utilized in operations before movement in Inventories 2 094 (852) (1 973) (28) working capital Trade and other Receivables 1 374 (98) Movement in working capital * 3 002 1 709 Trade and other Payables (466) 2 659 Cash generated fr
Slide 29: Reconciliation of loss from operations to EBITDA
FINANCIAL RESULTS - Reconciliation of loss from operations to earnings before interest, tax, depreciation, amortization, impairment and exceptional items (Rm) 2024 2023 Loss from operations (4 447) (2 937) Adjusted for: Depreciation 807 861 Amortisation of intangible assets 11 17 Impairment of PPE a
Slide 30: Divisional EBITDA before impairment and exceptional items (Rm)
DIVISIONAL EBITDA before impairment and exceptional items (Rm) 2024 2023 Steel operations (Rm) (1 921) (373) EBITDA margin % (5,0) (0,9) Net realised price R/t 14 909 15 455 Non-steel operations 324 534 EBITDA margin % 0,8 1,3 Corporate (219) (105) Total EBITDA before impairment (1 816) 56 EBITDA ma
Slide 31: Our Value Creation Model
OUR VALUE CREATION MODEL Inputs Our working business model Outputs Natural capital Financial capital Raw materials consumed (kilotonne) 2024 2023 Shareholders, investors, employees 2024 2023 Iron ore 4 056 4 245 Revenue R38 596m R41 637m Coal 2 386 2 562 EBITDA (R1 816m) R56m Purchased scrap 122 91
ArcelorMittal South Africa — FY2024 Earnings Presentation on 6ix